Mr. Riotte to Mr. Seward.
Sir: The apparently successful result of Mr. F. Kurtze’s mission to the United States, to which, as I have reported in despatch No. 150, of June 10th, last, the great plans mentioned therein were subordinate, seems a proper epoch for giving you the further information upon the result of those plans which you desired in despatch No. 119.
As you will recollect, the first object in the programme of the combined influences of the English bank here and the Montealegres was to obtain a full control of the finances of the country by the means then explained. This proved a failure. The Puntarenas custom-house was neither turned over to the bank, nor did it give a loan to the government; but government and bank agreed mutually to accept each other’s notes in payment like their own. Two of the brothers Montealegre have been made members of the section of the council of state on finances, to which every month the balance-sheet of the state accounts is to be submitted. This I consider a first-rate arrangement, inasmuch as it works as a control upon the government by the best business men of the country and large property-holders most interested in an honest and economical administration of public affairs.
Every hope of obtaining in the English market a loan of whatever amount, or of their forming a company for the construction of a railroad across this republic, was effectually crushed by the great disaster that since has befallen the British money market; and the well calculated and shrewdly worded explanation of the British government, though officially communicated to this government, and by it published in the official gazette, had not the effect of restoring confidence, particularly as subsequent events did not bear out the anticipations [Page 446] of the British government. Thus, then, Mr. A. Wallis did not leave on his mission to Great Britain.
These events, however, had the beneficial effect of forcing this government to minutely considering and closely husbanding its own comparatively very large resources, and President Castro has indeed the merit of having commenced uprooting some of the most glaring and most expensive abuses. Whether, in the face of the inveterate nature of these abuses, and of the fact that every little reform creates one or more enemies, he will be disposed and able to continue in this path, the future alone can teach; but I must confess to small faith. So far, at least, he has not dared to lay his hand upon the most shameful abuse, i. e., the large sums squandered to no purpose at all upon the military force of the republic, wherein, e. g., every twenty-five men have a general, and every two captains one private.
I have the honor of being, sir, your obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D. C.