Papers Relating to the Foreign Relations of the United States, Transmitted to Congress, With the Annual Message of the President, December 3, 1877

No. 291.
Mr. Cushing to Mr. Evarts.

Legation of the United States,
Madrid, March 30, 1877. (Received April 16.)

Sir: My telegram of the 28th instant will have advised you of the payment to me by the Spanish Government of the one-half of the amount awards thus far made by the claims commission constituted by invention of February 12, 1871, between the United States and Spain.

I now proceed to communicate to you a succinct account of this negotiation.

Mr. Fish’s instructions to present the awards for payment, dated December 12, 1876, reached me on the 27th of that month. But telegraphic and other instructions had peremptorily presented to me the duty of £ up and disposing of the question of criminal procedure in Cuba immediately after the conclusion of the negotiation for a treaty of extradition, which, of course, was done to the exclusion of any other matter of is controversy.

The treaty of extradition was signed and sent off on the 5th of January. On the next day the consideration of the criminal-procedure question was taken up by the then minister of state (Mr. Calderon y Collantes) and myself, and we arrived at a substantial conclusion on the but the precise form of redaction proposed remained to be considered by the State Department, and the interchange of telegrams on this point between the Department and the legation protracted the negotiation until the 4th of February, when the protocol disposing of the subject was at length concluded, as the Department was advised by my No. 1161 of February 4, 1877.

Thereupon I took up the subject of the awards, and addressed to the minister of state (Mr. Silvela, who had meanwhile taken the place of Mr. Calderon y Collantes) my note of the 6th of February, 1877, transmitted to the Department with my No. 1170 of February 9. I delivered that note in person to Mr. Silvela, and urged him, with pertinent reasons, to give to it early attention.

But meanwhile the preparations for the King’s voyage of inspection of the ports of the Mediterranean were going on, and at last he departed from Madrid, with arrangement that one after another of the ministers should accompany and follow him; and, on its being announced that the minister of state was to leave Madrid, I became uneasy, and made such representations to him on the subject that, admitting unreservedly the obligation of Spain in the premises, he referred me to the minister of ultramar as having received authority to act in the premises in his behalf. This was on the 24th of February.

I immediately sought and obtained an interview with the minister of ultramar, Mr. Martin de Herrera, who also informed me that the Spanish Government fully admitted the obligation, but desired indulgence as to the time of payment, proposing to give to the United States transferable international engagements, payable in a series of years. I received this proposition, of course, only ad referendum, without affording any encouragement that it would be acceptable.

We had now arrived at the 1st of March. On that day I communicated the proposition of Mr. Martin de Herrera to the Department by telegram. Well aware, however, that it could not be accepted by the Department, as it was not, I concluded, in the absence of the minister of state, to confer on the subject with the president of the council, Mr. Cánovas del Castillo, who corresponds in function to the prime minister of Great Britain.

The result of this interview was telegraphed to Secretary Fish on the 2d, and was responded to by him on the 3d, to the conclusion that half of the amount of the awards should be paid in cash and half months.

I communicated this conclusion orally to Mr. Cánovas del Castillo with suggestion that it would be creditable to the Spanish Government that it should make the proposition, rather than to have the arrangement seem to be imposed on that government.

In consequence, a note was addressed by me to Mr. Cánovas del Castillo on the evening of the 3d of March, to which he replied on the 5th receiving my response on the 6th, the three notes together constituting a confidential agreement, in accordance with the terms prescribed Secretary Fish. Translation of each of these notes is-affixed.

Some delay in the official consummation of this agreement was produced by the perpetual va et-vient of the ministers between Madrid the several sea-ports at which the King successively touched, and especially the absence of the minister of state, and the necessity of an official note from him in response to mine of February 26, to constitute formal authentication of the provisional agreement made between Mr. Cánovas del Castillo and myself. Copy and translation of that note, which came to me on the 10th of March, are annexed.

Meanwhile the minister of ultramar, to whom the task of raising the money had been committed, was busy in that matter and in verifying the calculation of the sum die, which had been made in the legation and delivered to him as the basis of payment. At length, on the 27th, Mr. Martin de Herrera notified me that on the next day he would-be ready to make payment, as he in fact did, on the 28th. The payment consisted, as my telegram has informed you, in a sterling bill on the London Banking Association, limited, at fifteen days’ sight, drawn by the Bank of Castile.

Translation of the estado or statement on which payment was made, copy and translation of the bill and its indorsement, and copy and translation of the receipt given by me, are annexed on all which the following explanatory observations are submitted:

(a) The figures of the estado are an exact copy of those of the statement prepared in the legation.

(b) It represents the one-half of the capital of the awards, with the interest on that half, leaving the payment of the other half, with its interest, for September.

(c) I assumed that the awards are made payable in the gold coin of the United States carried out in sterling pounds at our standard rate of $4.86.65 per pound, in conformity with the latest instructions of the Department in that respect.

(d) Interest is only calculated where it is designated in the awards.

(e) In two cases, Nos. 66 and 108, interest is awarded, but the rate is not mentioned. In these, cases 6 per cent, is assumed, with right of correction, if necessary, reserved in my receipt.

(f) As the statement was drawn up on the 16th and payment was made by a bill of the 27th, the accrued interest is to be reckoned in the final payment.

On receiving payment, I sent to the minister of state a reply to his note of the 8th, copy of which is annexed.

You will observe in his note reference to unadjusted claims of Spanish subjects against the United States on account of incidents occurring during the war of secession, as to which, knowing nothing myself and having no instructions, it was impossible for me to go further in reply than to assume that, when duly presented, the subject would have consideration on the part of our government.

The bill of exchange will be dispatched to London immediately by express messenger, indorsed to Messrs Morton, Rose & Co., as instructed by your telegram of the 29th.

I felt much apprehension, on first calling the attention of the Spanish Government to the subject, lest it should be objected that the awards me of them payable until the final winding up of the commission, especially as in some cases a year, and in others even two years, had elapsed since the awards were made without payment having been demanded, which might have seemed to imply that the United States did not consider it rightful to make such demand. To be sure, I was prepared to argue this point, but the argument, with response and counter response, might have occupied considerable time and involved delay at of uncertain duration. However, neither the minister of state nor the minister of ultramar, nor the president of the council has raised this or any other technical question during the whole course of the negotiation, which seems to me to deserve to be taken into account cumulative evidence of the honorable spirit and conduct of the Spanish Government in the premises.

Nothing further now seems to me as needful to be added by way of explanation of this negotiation; and it only remains for me to say that it has been concluded with promptness even beyond my expectations; and its results will, it is hoped, commend themselves to the approbation of the President.

I have, &c.,

C. CUSHING.

[Inclosure A in No. 1211.—Translation.]

Mr. Cushing to Mr. Cánovas del Castillo.

His Excellency the President of the Council of Ministers:

Dear Sir and of my highest consideration: I beg you to permit me to remind you that my note addressed to the minister of state, on the 6th of February last, respecting the awards of the commission established by the convention of the 12th of February, 1871, still remains unanswered, by reason, doubtless, of the absence of Mr. Silvela from Madrid; and I venture to express the hope that, in view of the urgent circumstances whereof you are aware, it may be convenient for you to communicate to me the resolution of the question taken by the Government of His Majesty.

I remain, &c.,

C. CUSHING.

Madrid, March 3, 1877.

[Inclosure B in No. 1211.—Translation.]

Mr. Cánovas del Castillo to Mr. Cushing.

Madrid, March 5, 1877.

His Excellency Mr. Caleb Cushing:

Dear Sir: I have just received the letter which you have had the goodness to write to me to-day, wherein you remind me of a note which you were pleased to address to the minister of state under date of the 6th of last month, relative to the payment, on the part of the Spanish Government, of the reclamations, which, among various others, of citizens of the Union, have been declared competent and accepted by the mixed commission established by the convention of the 12th of February, 1871.

Notwithstanding that the minister of state is at present absent, I have occupied myself, and the Government of His Majesty has preferentially occupied itself, with so important a matter, and I am enabled to say to you in anticipation, without prejudice to the communication to be made to you by the minister of state on his return in the ordinary form, that the Spanish Government, recognizing the justice of the reclamation which you refer, would desire, nevertheless, if that of the United States find no inconvenience therein, to satisfy its import in the terms and forms following:

1st. Paying forthwith one-half of the total amount of the reclamations in question and which have been recognized.

2d. Paying the other half in six months from the time of effecting the first payment.

It would give great pleasure to the Government of the King were that which you so worthily represent to accept forthwith this proposition, which, in the name of the Government of Spain, I have the honor to present to you.

And with this motive I repeat myself your most attentive friend and obedient servant,

• Q. B. S. M.
• A. CÃNOVAS DEL CASTILLO.

[Inclosure C in No. 1211.—Translation.]

Mr. Cushing to Mr. Cánovas del Castillo.

His Excellency the President of the Council of Ministers:

Dear Sir and of my entire consideration: I have just received with pleasure your note dated yesterday. The proposition of payment—one-half at once and the other half in six months—comes within the conditions fixed in the last telegrams from my government. I therefore have authority to accept it, and I do so, in the name of the United States, as final settlement of the pending question.

Permit me to add, for my part, that nothing could occur which would so serve to elevate the prestige of Spain and of the government of His Majesty in the United States and throughout America as this incident does. It is of more value than a battle in the field, inasmuch as it is the evident and incontestable proof that, in the midst of many difficulties, Spain resolutely desires and well knows how to guard intact hen traditional good faith, and to fulfill, without hesitating, her obligations toward other i governments.

I remain your obedient, faithful servant, and sincere friend,

• Q. B. S. M.
• C. CUSHING.

Madrid, March 6, 1877.

[Inclosure E in No. 1211.—Translation.]

Mr. Manuel Silvela to Mr. Cushiny.

Ministry of State,
The Palace, March 8, 1877. (Received March 10—3.30 p.m.)

Excellency:

Sir: In due time I received your excellency’s note of the 6th of February last past, in reference to the payment, on the part of Spain, of the awards made in favor of citizens of the United States by the mixed commission established in consequence of the convention settled between Spain and the Union on the 12th of February, 1871.

My absence from this court, by reason of having had to accompany His Majesty during a part of his voyage, has been the principal cause of my not having sooner answered your excellency’s aforesaid note; but I now hasten to do so, ratifying to you officially that which has already, in a confidential manner, been manifested to you by the president of the council of ministers, in accord with your excellency, that the Government of His Majesty, recognizing the justice of the reclamation presented by your excellency, is ready to satisfy, in two installments, the sum total of the reclamations examined and allowed up to the present time by the mixed commission, paying forthwith the one-half of their import and the other half in six months after having effected the first payment.

This proposition being accepted by the Government of the Union, which has seen, doubtless, that that of His Majesty has done all which lay within its grasp under the present circumstances for the speedy and final settlement of the reclamations of American subjects, and this matter satisfactorily terminated, it only remains to me to call your attention to those of the Spanish subjects who suffered prejudices in the United States during the war of secession—reclamations which were certainly not rejected by the government of Washington, but their settlement merely deferred until the termination of the war. This has fortunately come to pass; and to-day they could be submitted to the mixed commission established in virtue of the convention of 1871, or to another analogous one created for the purpose, as I have had the honor to suggest to your excellency orally before now.

But upon this matter I reserve to myself the addressing to your excellency of a separate note, or communicating instructions to the minister of Spain in Washington, in the assurance that those reclamations will be heeded in justice by the Government of the Union in like manner as those of the Americans have been heeded by Spain.

I take this opportunity of reiterating to your excellency the assurances of my most distinguished consideration.

MANUEL SILVELA.

The Minister Plenipotentiary of the United States.

[Inclosure F in No. 1211.—Translation.]

Calculated table of capitals and interests awarded as indemnification to North American citizens by the commission of arbitrators in Washington, showing, up to the sixteenth day of March, 1877, the one-half payable in cash in conformity with the resolution of the ministers, of the 6th, and in fulfillment of the accord of the 22nd of the same month.

Number of claim.	Name of claimant.	Date of award.	Terms of interest.	Time of interest.			Amount awarded.	Half of the amount awarded.	Interest on half of the award.	Total of one-half of award with the interests.	Equivalent in storing at $4.86.65
				Years.	Months.	Days.					£.	s.	d.
1	Henry Story	Jan. 4, 1874	None				$1.200 00	$600 00		$600 00	123	5	10
4	Peter Moliere	Nov. 2, 1875	Six per cent., September 1, 1870, to payment.	6	6	15	3,000 00	1,500 00	$588 70	2,088 70	429	4
5	James M. Edwards	Dec. 20, 1875	None				5,000 00	2,500 00		2,500 00	513	14	4
13	Joaquin G. de Angarica	Nov. 2, 1875	Six per cent., November 1, 1875, to payment.	1	4	15	748,180 00	374,090 00	30,849 62	404,939 62	83,209	12	5
14	Gideon Lowe & Co	Dec. 12, 1874	Six per cent., January 10, 1869, to December 12, 1874	5	11	2	175 00	87 50	31 10	118 60	24	7	5
23	José Vicente Brito	Nov. 14, 1874	Six per cent., February 12, 1869, to November 14, 1874.	5	9	2	600 00	300 00	103 60	403 60	82	18	8
31	Joaquin M. Delgado	Feb. 27, 1875	Eight per cent., May 5, 1869, to February 24, 1875.	5	9	19	113,360 00	56,680 00	26,308 84	82,988 84	17,053	1	8
41	José de Jesus H. y Macias	June 26, 1875	None				3,000 00	1,500 00		1,500 00	308	4	7
66	Gonzalo Poey	Apr. 8, 1876	Six per cent. October 16, 1872, to payment.	4	5		313 75	156 87½	41 57	198 44½	40	15	7
87	Joseph Griffen	Apr. 10, 1875	None				500 00	250 00		250 00	51	7	5
108	Charles Jemot	Apr. 8, 1876	Six per cent., December 4, 1869. to payment.	7	3	11	5,000 00	2,500 00	1,092 02	3,592 02	738	2	3
	Total						880,328 75	440,164 37½	59,015 45	499,179 82½	102,574,	14	2

As representative of the United States of North America, accredited near the Government of his Catholic Majesty, I declare that I have this day received the sum of one hundred and two thousand five hundred and seventy-four pounds sterling fourteen shillings and two pence in a bill upon London, at fifteen days’ sight, to the charge of the London Banking Association, of date 27th instant, acknowledging myself satisfied in the name of the government of my nation by the first installment of the indemnification declared up to the present time by the arbitrators, without prejudice to making the correction, on effecting the payment of the second installment, if the interests set down in the foregoing calculation to the credit of Gonzalo Poey, designated by the number 66, and of Charles Jemot, No. 108, be greater or less than the six per cent, calculated therein, as likewise to the inclusion in the payment of the second installment, the interest accrued from the 16th of the current month, referred to in this calculation, made up to the present time.

Madrid, March 28, 1877.

CALEB CUSHING,
Minister of the United States.