Mr. Warren to Mr. Seward
Sir: My last was No. 10, under date of February 1st. Since that a fact of some significance has transpired. General Cruz, an officer of some merit, not now on the active list, has pronounced against the government, and is now in armed resistance, with a force variously stated to be from 100 to 500 men. He is in position near the gorges of the mountains, about 15 leagues (45 miles) from the city.
The government has published a proclamation of outlawry against him, and have despatched General Solares with a force of 500 men to put him down. His (Cruz’s) purpose, as avowed, is not to overthrow the government, but to effect a change in the ministry, with the abolishment of the monopoly in aguardiente, (Anglicé whiskey,) which is oppressive both on the consumer and the producer. The heaviest item of revenue is from this source. A company pay to the government $350,000 per year and have the exclusive right to manufacture and sell all of the aguardiente within the limits of the republic. The retail prices of a miserable drink of raw alcohol and water is 5 and 6 reals (62½ cents) per bottle, (six to the gallon.) The first cost is probably 16 cents per gallon. The burden is heavy on the consumer, but the most odious feature is, that they will not pay a remunerative price for the panela, a coarse brown sugar, from which it is made. It will not bear exportation and cannot be distilled unless by these men, and they consequently fix their own price, which is below the cost of growth and manufacture.
After proclaiming Cruz an outlaw, the ministry sent a private overture to him, which he refused. Such is the present state of affairs. All is panic and doubt. Trade is suspended and confidence gone.
I have not, in this condition of things, pressed upon the government the claim of Lilly.
Waiting for happier auspices,
I have the honor to be, very respectfully, your obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D. C.