Mr. Prevost to Mr. Seward.
Sir: On the 27th of June last I received a note from Mr. Bustamente, the minister of foreign relations, informing me that the treasurer of the government in this place had been instructed to make the proper arrangements to pay over to me the ten thousand dollars of the first instalment of the debt due under the convention of November 26th, 1862.
But owing to the sickness of the president of the bank, the treasurer here was unable at that time to make the necessary arrangement. On the 7th of the [Page 474] present month, however, he placed in my bauds a note or due bill of the bank of Guayaquil, payable on the 22d instant, for the sum of ten thousand one hundred and eighty dollars, which was the amount he was instructed to arrange for, which I accepted on behalf of the government as part payment of the first instalment.
This payment will be found short $353 26, probably through the stupidity of some of the clerks in the department of Quito. I have written to Mr. Busta-mente to correct the error, and have requested him to instruct the treasurer by return mail to pay over to me, not only the last-mentioned sum, but the interest upon $10,533 26 from the 17th of February last to the 7th of July instant.
The note of the bank was drawn with interest, at the rate of ¾ per cent. per month, amounting to $38 17, which I have placed to the credit of the United States government, in the enclosed account, marked No. 1 A. The house of M. A. de Luzarraga, the millionaire banking-house, now conducted by Mr. M. P. Game, a citizen of the United States, was willing to take the due bill of the bank as cash, and even allow the unearned interest, and sell me exchange on London at the present rate, 35 per cent, premium, valuing the pound sterling at $5, as is the usage here, or 675 cents of this currency to the English pound, this being the present rate of first class bills, per enclosed certificate, marked B No. 2.
I therefore send to your excellency first of exchange drawn by the aforesaid house at 90 days, dated 11th July, for one thousand five hundred and thirteen pounds sixteen shillings one penny, say £1,513 16s. 1d., drawn on Messrs. C. de Murieta & Co., of London, payable to my order, and by me indorsed over to the Department of State. Your excellency will notice that the present rate of exchange is only 35 per cent., whereas in February last, at the time the instalment was due, exchange was commanding 54 per cent., or 770 cents to the pound sterling.
In Mr. Bustamente’s last despatch he says: “It is with no little degree of satisfaction that I manifest to you that if my government has not satisfied the payment of the instalment at the time it fell due, it was owing to the forced circumstances, of which you cannot be ignorant, that outside of the heavy expenses caused by the war with Spain, the winter season has considerably diminished the funds in the public treasury, in consequence of no foreign vessels having entered the port of Guayaquil.”
Hoping that the course I have pursued in the premises will be satisfactory to your excellency, I remain, with sentiments of respect and esteem, your most obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D. C.