Mr. Corwin to Mr.
Seward.
No. 20.]
Legation of the United States of
America,
Mexico,
March 28, 1862.
Sir: The monthly British courier offers a safe
conveyance to Vera Cruz, of which I avail myself to advise the
department of passing events here.
Since my last despatch a dispute has arisen between the allies and
Mexico, concerning the possession of the custom-house at Vera Cruz, and
the disposition of the revenue accruing there. Unfortunately, nothing
was said or agreed on touching this point in the preliminary treaty, a
copy of which I sent some time since to the department. Two
commissioners on the part of Mexico, a week ago, went to Orizaba, to
meet Sir 0. Wycke and General Prim, to endeavor to arrange this matter.
I have this moment learned by telegraph from Puebla that the
commissioners are on their return to Mexico, having arranged this
question to the entire satisfaction of all parties.
Another matter threatening disturbance of friendly feeling is a tax of
two per cent, on all capital, including foreigners, recently levied. All
foreigners here seem to think that property owned by them is to pay no
taxes, especially if they can make out plausibly that such tax is, in
their own favorite phrase, an “extraordinary [Page 734] tax.” The British, Prussian, and French ministers,
object to this tax, and write angrily and vehemently to their fellow
subjects here, as well as to the government, against it. I have thought
it my duty to hold a different opinion on the subject, and wrote to the
American consul at Acapulco (at his request) an opinion, giving also to
American citizens here the same opinion. I send herewith copies of my
correspondence with the consul at Acapulco. As the arguments of the
other foreign ministers on this subject had been published by
themselves, at the earnest request of the minister of foreign affairs, I
allowed the government to publish my opinion given to American citizens
resident here.
I hope the course I have judged it proper to take in this business may
meet the approval of your department. It has brought upon me the
universal censure of all foreign residents here, including our own
Americans, who, with few exceptions, look upon Mexico as a place wherein
to make their fortunes as rapidly as possible, and carry them to some
other country as soon as possible.
The minister of foreign affairs here expressed much regret that my
instructions in your despatch No. 37 were so stringent in regard to the
terms on which a loan could be had from the United States. This
government wants money now more than it probably will a year or two
hence. Its great effort now is to show the allies that they are able to
crush out the remnant of the reactionary bands that still roam over the
country, dashing into the more fruitful and well cultivated portions of
it unexpectedly, robbing and assassinating wherever they go, for a brief
time, and then suddenly retreating to some of the inaccessible mountain
holds which abound in this country. The reactionary chiefs yet
remaining, aware of this necessity of the government, recently united
all their forces, numbering about three thousand. An expedition was set
on foot by the government designed to surround and capture or kill this
entire force. Five thousand men were assembled for this purpose, and I
know they were detained here for a whole week, for want of funds to feed
them on their march. The requisite amount was only obtained five days
since, by a forced loan. During this time the minister of foreign
relations frequently assured me he could raise this money from
capitalists here readily, if he could assure them that a loan of a few
millions was to be expected from the United States. It is quite
impossible for any one, not having the knowledge which I have acquired
by one year’s close observation, to estimate the depth to which the
exhausted resources of this country has fallen by forty years of civil
war, and our own invasion and conquests in 1847 and 1848. Now when three
powerful nations are here, threatening to precipitate half of Europe
upon them unless they treat on terms such as they dictate, Mexico, with
all her faults and follies, is an object of sympathy to all who regret
to see weakness trampled in the dust by strength. I do not believe that
some of the allies intend to deal harshly with Mexico, but I am not
satisfied that this is either the feeling or intention of one at least
of the three powers. More light will be thrown upon the point by the
events of the next month.
I have the honor to be your obedient servant,
Hon. Wm. H. Seward, Secretary of State of the United States, Washington, D.
C.
C 1, with No. 20.]
Mr. Van Brunt to Mr. Corwin.
Consulate of the United States
of America,
Acapulco,
February 26, 1862.
Sir: There has been published at this port
a decree of the general government of Mexico, authorizing a tax of
two per cent, on all property, whether native or foreign.
[Page 735]
I send an especial courier to know your opinion on the same for my
guidance, as I shall be called upon by citizens of the United States
for protection in case the tax be enforced, which has not been at
the present writing, but I have authority to state will be, and
believe is only deferred by the presence of a United States
vessel-of-war in port, whose protection I shall seek in case the
necessity arrives to stay proceedings until I have your reply.
I would state the Pacific Mail Steamship Company have a large amount
of valuable property here, and this tax would fall heavily and
injuriously on them, this being merely their depot, granted to them
by the general government as such.
By the wording of the decree, it would fall upon them equally with
others.
Begging a speedy reply, I have the honor to be, very
respectfully,
D. B. VAN BRUNT, United States
Consul.
Hon. Thos. Corwin,
United States Minister, Mexico.
C 2, with No. 20.]
Mr. Corwin to Mr. Van Brunt.
Legation of the United States of
America,
Mexico,
March 6, 1862.
Sir: I have just received your letter of
the 26th of February, asking my opinion as to the legality of the
tax of two per cent, on all capital owned by citizens or foreigners
in Mexico.
I have carefully considered the subject some time since, and have
come to the conclusion that American citizens are obliged to pay
this tax. Congress, at its last session, by a decree of that body,
conferred upon the cabinet all the powers of government, legislative
and executive. I have entertained serious doubts whether, under the
constitution, this act was valid; but on full consideration, I am
satisfied that is a question for the supreme judicial authority; and
as the present government is accepted as the
only legitimate one, and been so recognized by all foreign powers
represented here, its acts must be regarded as legal, and binding
upon the citizens of all nations resident in or claiming property
within the territory of Mexico.
The taxing power is one belonging to all organized governments,
without which it is obvious no political organization could exist.
The limits of this power over foreigners are fixed either by the law
of nations or by treaty.
National law on this point is positive and universally recognized by
all modern writers.
One of the most accurate and learned treaties in modern times on
national law has thus defined this power: “Every independent state
is entitled to the exclusive power of legislation in respect to the
personal rights and civil state and condition of its citizens, and in respect to all real and personal property
situated within its territory, whether belonging to citizens or
aliens”— (See Wheaton’s International Law, page 112, part
II, chapter II, section 1.)
The legislative power here given over the property of foreigners has
always been considered as including the power to tax the property of
foreigners. It has been the constant practice of the United States
government, as well as the governments of the separate States, to
tax the property of foreigners just as they tax the property of
citizens. This power may, however, be limited by treaty. The only
treaty stipulation on this subject between the United States and
Mexico is to be found in the ninth article of the treaty of 1831,
which is now in full force, that treaty having been revived by the
treaty of 1848. That [Page 736]
article reads as follows: “The citizens of both countries,
respectively, shall be exempt from compulsory service in the army or
navy; nor shall they be subjected to any other
charges or contributions or taxes than such as are paid by the
citizens of the States in which they reside.”
This treaty, in my judgment, obliges citizens of Mexico resident in
the United States to pay in the United States all “charges or contributions, or taxes” which are paid there by the citizens
of the United States, and as clearly binds all citizens of the
United States resident in Mexico to pay all “charges or contributions, or taxes” which are paid here by the citizens of
Mexico. If, therefore, a Mexican citizen is bound by law to pay this
tax, then, by the treaty of 1831, the American citizen resident here
is bound to pay it also. The treaty makes no distinction between ordinary and extraordinary taxes, between local
or general taxes. I have no doubt that at
this moment taxes that may well be termed “extraordinary” are
levied, both by the federal and State goverments, in the United
States, which operate alike upon the property of the citizens of the
United States and Mexicans resident there.
With these views, I cannot consent to any
forcible opposition to the payment of this tax on the part
of American citizens. The citizens of other governments will
regulate their conduct by the opinions of their own diplomatic
representatives. The tax may be too high, or it may be in other
respects impolitic; but these are questions to be determined by the
power having the right to tax. So long as American citizens are
taxed in the same way as Mexican citizens, I am satisfied that,
under our treaty with Mexico, to which I have already referred, the
government of the United States cannot interfere to shield American
citizens from the payment of such tax. If other nations have
treaties forbidding such taxation on their citizens here, of which I
am not aware, all that can be said is that they are more fortunate
than the United States in this respect. Our citizens, in common with
citizens of Mexico, may remonstrate in respectful terms against this
tax as being onerous or impolitic, but they can claim no exemption
from its payment which a Mexican citizen might not claim with equal
propriety.
As to the steamship company’s property, no part of it afloat is
subject to taxation. Only land, houses, or other property located on
Mexican soil within the territorial limits of the Mexican republic,
can be subject to this or any other tax levied by the Mexican
government, whether state or national.
If, however, any American citizen shall believe that he is not bound
to pay this tax, he can pay it under protest and make it the subject
of reclamation if he chooses, but in my judgment such payment would
form no just ground of claim on the Mexican government.
D. B. Van Brunt, Esq., United States Consul, Acapulco.
Mr. Corwin to Senor Doblado.
C 3, with No. 20.]
Legation of the United States of
America,
Mexico,
March 10, 1862.
Sir: The undersigned has the honor to
enclose herewith a copy of a letter from the United States consul at
Acapulco, with reference to the tax of two per cent, lately levied
by the Mexican government. The undersigned also encloses his reply
to this letter, in order that your excellency may know the advice
which he has given to the Americans residing in this republic.
Similar letters have been sent by the undersigned to other American
consuls in different parts of Mexico. But as Sir Charles Wycke, her
Britannic Majesty’s representative in Mexico, has addressed to the
undersigned a private letter from Vera Cruz, requesting [Page 737] him to remonstrate against
the collection of this tax from foreigners, he would be glad if your
excellency would inform him what course the Mexican government
proposes to pursue in reference to this matter; whether or not it
proposes to collect this tax from foreigners and Mexicans
indiscriminately.
The undersigned renews to your excellency the assurances of his high
consideration.
His Excellency El Sn. Don Manuel
Doblado,
Minister of Foreign Relations,
Mexico.
[Translation]
Mr. Doblado to Mr. Corwin.
C 4—Despatch No. 20.]
National Palace,
Mexico,
March 12, 1862.
The undersigned, minister of foreign relations, has had the honor to
receive the note of his excellency Mr. Thomas Corwin, envoy
extraordinary and minister plenipotentiary of the United States of
America, dated on the 1.0th instant, and the copies which he
encloses of a communication from the consul for Acapulco, in
relation to the law which imposed a tax of two per cent, upon
capitals, and of the reply which his excellency was pleased to make
to him.
The undersigned has not failed to perceive but with the most positive
satisfaction the prudence, learning, and probity of his excellency
Mr. Corwin, in the matter under consideration, and for which he
returns to him his most sincere thanks. And in reference to the
suggestion of his excellency Mr. Wycke, which has also been
particularly addressed to the undersigned, there has been addressed
to him in reply that which was given by this department to his
excellency Mr. Wagner, under date of the 12th of January last
past.
In replying with this statement to the aforementioned note of his
excellency Mr. Corwin, it is gratifying to the undersigned to renew
to him the assurances of his very distinguished consideration.
His Excellency Thomas Corwin,
Envoy Extraordinary and Minister
Plenipotentiary of the United States of America.
D 1, with No. 20.]
Mr. Corwin to Senor Doblado.
Legation of the United States of
America,
Mexico,
March 13, 1862.
Sir: In the negotiations now pending
between the governments of the United States and Mexico, it becomes
necessary that the government of the United States should be
satisfied on the following points:
First. Can the United States make a loan to Mexico, in the present
state of the relations between Mexico and the allied powers, without
departing from the duties of a neutral, which is the relation my
government now sustains towards the three powers and Mexico in the
conflict now existing between the two latter.
To resolve this proposition it is necessary to ascertain whether the
present relations of Mexico with the three powers is one of war or
peace. If the former, then a loan of money by a neutral nation to
one of the belligerents, to be used in carrying on a war against the
other, would be considered a violation of neutral obligations.
[Page 738]
If, however, the present relations of Mexico with England, France and
Spain are not of a warlike character according to international law,
then the United States government would he perfectly justified in
making the loan proposed, and the undersigned is authorized to
assure the government of Mexico that it would give to the government
of the United States great satisfaction to do so. The government of
the United States, as is well known, has been and is anxious to do
everything in its power to aid Mexico in extricating herself from
the difficulties which have brought her into her present unhappy
relations with the allied powers. But she is bound by obligations
which she cannot disregard to maintain peaceful relations with those
powers. For these reasons I have to ask your excellency to state in
what light the Mexican government regards her present relations with
the allied powers, whether they are that of peace or war, or whether
the present state of things is merely a temporary armistice, which,
should the proposed negotiation terminate unfavorably, would result
in the resumption of warlike operations by both parties.
Should your excellency be able to satisfy the undersigned on these
points, then it is indispensable that the value and amount of the
lands and property proposed to be hypothecated by Mexico to secure
the payment to the United States of the loan proposed should be
authoritatively made known, in a form as authentic and satisfactory
as possible.
Your excellency cannot fail to perceive and estimate truly the
importance of the information most respectfully asked in this note,
in facilitating the negotiation to which it refers, and which the
undersigned is most anxious to bring to a speedy and favorable
conclusion.
The undersigned takes great pleasure in renewing to your excellency
the assurance of my distinguished consideration.
His Excellency El Sn. Don Manuel
Doblado,
Minister of Foreign Relations.
[Translation.]
D 2—Despatch No. 20.]
National Palace,
Mexico,
March 11, 1862.
The undersigned, minister of foreign relations, has received the note
which his excellency Mr. Corwin, envoy extraordinary and minister
plenipotentiary of the United States of America, has been pleased to
address to him on the 13th instant, for the purpose of explaining
certain points relating to the pending negotiations between the
government of the United States and Mexico, and in reply he has the
honor to inform his excellency that the Mexican government has made
no declaration of war against the allied powers, and that after the
preliminaries signed at La Soledad, on the 19th day of the past
month, the probabilities of a peaceful solution of the pending
questions have so increased as to become a fact.
Thus, therefore, the citizen president thinks that the United States
do not fail in the obligations of a neutral nation by making a loan
to Mexico, the more so since its employment can never be shown to be
for the purposes of war, and on the contrary, this aid helps the
government of the republic to comply with its engagements, and,
consequently, to fulfil one of the conditions to obtain a firm and
lasting peace.
With respect to the second point referred to in the note now being
replied to, the undersigned cannot transmit, for reasons well known
to the minister, an arithmetical statement of the value of the lands
and property of the Mexican government, but he does positively
state, under the faith of an official communication, that those
values exceed by far that of the loan which is being negotiated, and
[Page 739] that they fully
guarantee the same. But if the case should arise that any sum should
be wanting the Mexican government would promptly pay it, insuring
the same now to the satisfaction of the United States.
The undersigned avails himself of this opportunity to reiterate to
his excellency Mr. Thomas Corwin the assurances of his very
distinguished consideration.
His Excellency Thomas Corwin,
Envoy Extraordinary and Minister
Plenipotentiary of the United States of America,
