Mr. Morrell to Mr. Seward
Sir: I have the honor to acknowledge receipt of circular of September 5th, together with proclamation of the President, dated September 3d, which have received my careful attention.
I have also the honor to enclose herewith a decree of the Executive of this republic, dated 20th September, ultimo, together with a translation of the same, which recognizes the commencement of the work on the Costa Rica railroad, and declares the port of Limon open to commerce.
As far as can be judged from appearances, the important undertaking alluded to seems likely to be accomplished. The work at the Atlantic terminus is being energetically carried forward. Although doubts exist in the minds of many as to the prosecution of the enterprise beyond the point requisite for certain specu lative [Page 281] purposes, the government seems to have full faith in the right intentions of the company, and shows a praiseworthy disposition to render the latter every facility possible for carrying on the work. It is, indeed, to be hoped that an American enterprise, so vast in itself and in its probable effects on this country, will be speedily accomplished.
This government has already made proposals to the Royal Mail Steam Packet Company, with a view to the touching at Limon of the monthly steamer which runs between Aspinwall and Greytown, which will be an important addition to the foreign postal facilities now existing.
The new national bank, with a paid-up capital of about $250,000, has been in operation some two months. Of the above-named capital, $100,000 was advanced by an English mercantile firm doing business in Valparaiso; the remainder by this government. The nominal capital is to be $500,000, which may be increased to $1,000,000. The government will increase its investment, and private parties are expected to subscribe for such an amount of stock as will bring up the capital to the sum required, and to some extent they are doing so. But it is to be observed that nearly every one who takes stock to the amount of $500 is probably a borrower to the amount of $5,000, or in that proportion.
Thus far the bank’s operations have been quite favorable for the mercantile class and the coffee planters. It is to be feared, however, that, from the total want of a practical knowledge of banking business on the part of those having the direction of its affairs, it will sooner or later find itself embarrassed to such a degree as to cause it to wind up, which, according to the contract between the government and the English house before mentioned, must take place whenever it shall have lost 10 per cent. of its capital. But it is to be hoped that such will not be its fate, as it is really of great benefit to the business men of the country, and, properly managed, might sustain itself creditably, and perhaps profitably.
I have the honor to be, sir, very respectfully, your obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D. C.