Mr. Plumb to Mr.
Seward.
No. 65.]
Legation of the United States,
City of Mexico,
January 13, 1868.
Sir: As a matter of information, I transmit to
the department herewith a copy and translation of a recent
correspondence that has taken place between this government and the
agent here of the bondholders, under what has been known as the English
convention debt.
It will be observed that two positions are taken by the Mexican
government in this correspondence. First, that the convention regarding
this debt, being at an end, under the general principle that all
treaties with the powers who have recognized the so-called government of
Maximilian are terminated, the Mexican government is free to make new
arrangements regarding the manner of liquidating the debt and paying the
interest thereon, which new arrangements it prescribes; and secondly,
such new arrangements being prescribed, the payment back into the
national treasury of a sum now lying in the bondholders’ agent’s hands
on account of dividends, is required, in order that the same may be
applied by the Mexican government under such new arrangement.
I have the honor to be, very respectfully, your obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D. C.
[Translation.]
Department of Treasury and Public Credit.–Section 2.
The citizen President has well-founded motives for considering
insubsistent the treaties which united Mexico with the powers who
disowned the republican government of this country and recognized
the so-called imperial government which the French intervention
pretended to establish, it being those powers who by such conduct
broke said treaties.
[Page 400]
As among those treaties figures the English convention, it is in the
same case as any of the others, and must in consequence be
considered as insubsistent.
The government, however, does not for this deny the obligation of the
national treasury to pay the legitimate, and recognize titles of
this extinguished convention. All that it denies is that such
obligation retains an international character, and that the terms of
payment stipulated in a no longer existing arrangement should
subsist.
In virtue of the liberty which it now has to fix these terms as may
appear best, it has considered it convenient to determine that the
redemption of the titles of the extinguished English convention be
proceeded with by public auctions. The first of these auctions will
be held with the fund of $29,649 08, which existed in the hands of
Mr. Glennie, as communicated to this ministry by his note of the 7th
of November last, and which is now deposited with you, as Mr.
Glennie has further communicated in his note of the 19th instant.
That amount you will therefore deliver immediately into the general
treasury.
The subsequent public auctions will be held with the funds which will
be opportunely designated, there being only and exclusively
admissible for the redemption the titles of the extinguished English
convention which are recognized as legitimate by the republican
government, and those titles are to be preferred for the redemption
which are tendered by the most favorable bidder, i. e., those that are offered at the lowest price,
As in the archives which are in your charge, there should exist the
coupons which have been paid, you will be pleased to deliver them at
the general treasury, together with the corresponding account of
what has been redeemed up to this date of the capital and interest
of the extinguished English convention.
By direction of the citizen President I communicate this to you for
your intelligence and the consequent ends.
Independence, liberty, and reform!
Mexico, December 21, 1867.
J. TORREA.
Messrs. Barron, Forbes & Co., &c., &c., &c.
[Translation.]
Mexico,
December 24, 1867.
Sir: Your official communication of the
21st instant has been delivered to us to-day. In it you have been
pleased to inform us of the disposition of the supreme government
with regard to the English convention, and we are directed to
immediately deliver into the general treasury of the nation the
funds which Mr. Glennie deposited in our house, appointing us at the
same time agents ad interim of the said
convention.
We do not doubt that the supreme government, comprehending the
embarrassing position in which we have been placed by the
dispositions of the citizen President, will not take it amiss if,
before complying with the order that has been addressed to us, we
take the opportunity to call a meeting of all the creditors, in
order that they may be informed of the terms of the said supreme
order which has now been communicated to us.
We shall do this with all the haste which the urgency of the case
requires, and in the mean time, protesting our respect and
consideration.
We are, &c.,
p. p. BARRON, FORBES, & CO. JACOBO
LONERGAN.
Citizen Minister of Treasury, &c., &c., &c.
[Translation.]
Mexico,
December 27, 1867.
Sir: In compliance with what we had the
honor to submit to you in our communication of the 24th instant, a
meeting of the creditors of the English convention has been held
to-day and the official note of your department of the 21st instant
has been read.
Informed of the contents of it, the gentlemen who attended, and who
jointly represent the majority of the credits, agreed unanimously to
the following resolution, viz:
“The meeting does not consider itself authorized to take into
consideration the points treated of in the note of the supreme
government of the 21st instant, and in consequence limits to request
the government, through Messrs. Barron, Forbes & Co., to be
pleased not to proceed with the proposed public auction, leaving the
funds remaining in the deposit where they now are.”
[Page 401]
On soliciting you to communicate this resolution to the citizen
President, hoping that he will be pleased to accede to the wishes of
the meeting, on our part we have to add that we shall occupy
ourselves in forming as quickly as possible the account of capital
and interest redeemed to date, and at the same time we will deliver
into the general treasury the coupons which, have been paid in
accordance with the disposition in the note of the 21st instant
above mentioned.
In the mean time be pleased to accept the assurances of our respect
and consideration.
Citizen Minister of Treasury, &c., &c., &c.
[Translation.]
Department of Treasury and Public Credit.–Section 2.
Notwithstanding what you state in your note of the 27th instant, with
reference to the petition which the meeting of creditors resolved to
make, that the funds which you received from Mr. F. Glennie as
belonging to the English convention might remain in the same
deposit, the citizen President has directed that it be said to you
in reply, that for the reasons expressed in the note addressed to
you by the supreme government on the 21st instant, through this
department, the determination with regard to the delivery of the
funds which you have to make into the general treasury of the nation
be carried into effect.
I communicate the same to you for
the corresponding ends. Independence, liberty, and reform!
Mexico, December 28, 1887.
J. A. GARMENDIA.
Messrs. Barron, Forbes & Co., &c., &c., &c.
[Translation.]
Sir: Our desire to act in accord with the
parties interested in the English convention has led us to delay our
reply to the communication which you were pleased to address to us
under date of the 28th ultimo, informing us that the citizen
President has not thought it convenient to accede to the desires of
the meeting, but has directed that the determination with regard to
the delivery into the general treasury of the nation of the funds
belonging to the said convention shall be carried into effect.
In view of this reiterated disposition, and the desires of the
majority of the parties; interested in the convention being already
known, it is our duty to proceed at once to the delivery referred
to; but before effecting it we beg you to be pleased to inform us,
if in giving us the corresponding receipt for our security we can
count upon its being expressed in it, that we make the delivery
under Compulsion of the supreme government, and protesting in the
name of the parties interested in said convention against an act
which they regard as prejudicial to their rights.
We do not doubt that the citizen President, comprehending the object
we have in asking this explanation, will exonerate us from any
intention of raising embarrassment, or of passing the limits of a
just defense.
We do ourselves the honor of reiterating to you the assurance of our
respect and consideration.
Citizen Minister of Treasury,
&c., &c., &c.