American Civil War

Another significant event that contributed to the economic development of Monterrey was the American Civil War. During this conflict, the ports in the United States were blockaded, which led to an increased use of the northern Mexican ports for the distribution of cotton to Europe. Monterrey's customs authorities had control over these ports, resulting in a substantial influx of capital into the city. While this had positive implications for Monterrey's economy, the situation changed after the conclusion of the American Civil War, when trade with the United States resumed, impacting the city's commerce.^[2]

Falling of the commerce

The early development of the city economy was caused by several abnormal events. For example, constant revolutions in the country, establishment of the free zone in the neighbor state Tamaulipas, and the American Civil War. These abnormal events created a constant development on Monterrey's economy. After these events stopped, an inevitable decrease in the city's economy started. Some researches stated that the city could not get again in the same position that was during the city economy development, because it was caused by the abnormal events mentioned before. Despite this, there are other two main reasons why the commerce in Monterrey started to decrease: the creation of the “Constraresguardos” and the development of railways in the country.^[3]

One of the reasons was the creation of the mobile force “Contraresguardo”. This was a mobile force that was in charge of traveling along far paths and roads to stop clandestine imports. Smuggling was an important economic activity in many towns of Monterrey bringing capital flow into commerce. The creation of this anti-smuggling force caused the decrease of the activity, affecting the economy of many families and commerce in Monterrey. The anti-smuggling forces raised important amounts of money from the smugglings that were stopped: during the years 1869–1870 several contrabands were stopped with a value of $213,415 pesos, in the next year this value increased by $844,542, and during the years 1874–75 a total of 148 contraband were stopped by these forces.^[3]

Another important factor for the decrease in commerce in Monterrey was the development of railways in the country. Before this development, Monterrey served as a distribution center for the north states of the country, thanks to its geographical position. The development of railways allowed the north states of the country to get products from other routes, without the intervention of Monterrey. Also, the railways created contrabands in small scale, as people were allowed to go to the frontier easily and in a cheap way, smuggling products. The small-scale contraband affected all kind of commerce in Monterrey, didn't letting them develop.

Communications development

An important factor in Monterrey's industrialization was the development of communications throughout the state. The development of railways, telegraphs, telephones and trams started a new chapter in Monterrey's transportation and communication era, leaving behind the mule drivers, drivers, and diligence drivers.^[4]

Before this new era, the opening of routes was an important topic for the government. Monterrey had several routes that connected it with other neighbor states like Matamoros, Laredo, Tampico, Piedras Negras, Saltillo, etc. These routes where controlled and managed by the municipalities, who didn't take care of them, leaving them in bad shape. Even though, the traffic between this dirt routes were high. The most common mean of transport to transport products, before the development of railways, was by convoys: groups of wagons pulled by mules. Also, the most common way of transporting people between states before the railway, was by the use of errands.

Agriculture

Before the industrialization of Monterrey, agriculture and cattle raising were the most important economic activities of the city. Monterrey was an exporting city, exporting to the rest of the country corn and sugar cane. Even though corn was the most agricultural product produced in the city, sugar can was the most profitable. Piloncillo was a very profitable product and it was extracted from the sugar cane. Monterrey was one of the most important cities that exported this product to the country. Also, cattle raising was an important activity for the city, but throughout the years, it was being substituted by the agriculture. This decrease in cattle production was also caused by other factor besides the growing agricultural activity in the city. It was caused also by the cattle theft, attacks of barbarian Indians to the farms, revolutions through the state and droughts. In the year of 1890, the rural activities of the city were in development, having an increase in agricultural and cattle raising production.^[5]

Development of new industries in Monterrey

Before the fall of commerce in Monterrey, huge amount of capital flowed into the city. This gave a lot of economic resources to families and businessmen of the region. After the fall of commerce in the city, this families and businessmen started to look for new industries in which they could invest their resources. The industries that were developed by these investments were in the areas of mining, railways and customs, textiles, and livestock companies. After these investments, the industrialization of Monterrey was initiated.

The textile industry was one of the first industries developed in Monterrey. The first textile companies were called “La Fama”, which was founded in 1854 by an investment group, and “El Porvenir”, founded in 1871. After this two companies were founded, more little textile industries were created in the region, causing that the textile industry was an important activity for the city of Monterrey after several years.

Other new industries that were founded in Monterrey during the same period were little workshops and handcrafts. The main objective of the workshops was to create tools for agricultural purposes, creating wheat mills, floats, and other agricultural tools. Other new industries developed were hat, ice, floats, and cars, sugar and mezcal, beer, pasta, starch, candles production. These small industries became the beginning of the industrialization of Monterrey.

All these new industries that were developed started to change the way of thinking of the government, businesses and people in Monterrey. The idea that the industrialization of the city was the solution for the future of the state was starting to appear. The government and business started to foment the industrialization in all the aspects of the economy. An important tool to expand this idea through the state and to present Monterrey's product to the country and internationally was by the use of expositions. In these expositions, products were presented in four different categories: industry, labor, mechanical arts and arts. All these expositions helped the community to get to know all the products that were produced in Monterrey and the innovations on them. The products of Monterrey reached exposition in the United States like the exposition of New Orleans in 1885, Paris in 1889, and San Antonio in 1889. These expositions were an important platform for the world to get to know Monterrey as an industrial center.

Causes of industrialization

The industrial boom in Monterrey was driven by a combination of internal and external factors. Internal factors were those that directly related to the city's residents and businesses, while external factors encompassed influences originating outside of Monterrey's borders. Both sets of factors played significant roles in the development of the city's industrial sector.^[6]