No. 51.
Mr. Williamson to Mr. Evarts.
Legation of
the United States in Central America,
Guatemala, June 1, 1877.
(Received June 25.)
No. 635.]
Sir: I have the honor to inclose you printed copies
and translations of two decrees of the Government of Guatemala lately
issued. One of them, you will notice, increases the tax upon lands
cultivated in sugarcane 50 per cent., and also increases the existing duties
25 per cent. The other decree imposes a forced loan of $500,000.
It is to be regretted * * * that at a time of profound peace the President of
Guatemala has deemed it expedient to issue such decrees. The import duties
were already so high that they were almost prohibitory—so high were they, in
fact, that I have been repeatedly informed by intelligent merchants of this
city that the prime cost of most articles is more than doubled before they
are able to get their importations out of the custom-house; and that upon
some articles the duties are more than 200 per cent. The excessively high
tariff of Central America is a serious obstacle to the formation of closer
commercial relations between it and the United States. * * *
I am assured that the forced loan imposed by the decree alluded to is not
intended to affect foreigners directly or indirectly. Its indirect effect
upon those of them engaged in commerce will be sufficiently serious. I shall
be agreeably surprised if there is not an attempt made by the government to
enforce the decree as to the foreign as well as native residents of the
country.
Awaiting your instructions, I have, &c.,
[Inclosure 1 in No.
635.—Translation.]
Decree 181.
J. Rufino Barrios, General of Division and President of the Republic of
Guatemala, considering that the public income ought to increase in
proportion to the necessities of the country, and that it is fitting to
the national credit to appoint new funds for the extinction of the bonds
of the converted debt, thereby favoring the holders of those bonds, in
use of the faculties with which I am invested, I decree:
- Article 1. From the 1st of July next
the administrations of taxes will collect 50 per cent, more than
is paid at present on every marizana of sugar-cane.
- Article 2. The duties which are
collected at present in the custom-houses, both maritime and on
the frontier, are raised 25 per cent, on foreign
merchandise.
- Article 3. The payment of the
augmentation of 25 per cent, hereby established shall be made in
the following manner: Counting ten days from this date for the
introduction of goods proceeding from any part of Central
America; thirty days for importations from California, Mexico,
and South America; two months for goods proceeding from New York
and the Antilles; four months for the importations from Europe,
if made by steamer, and six months for the same if made by
sailing-ship.
- Article 4. On paying this tax, 10
per cent, will be paid in bonds of the converted debt and 15 per
cent, in cash.
Given in the government palace, May 24,
1877.
J. RUFINO BARRIOS.
The Minister of Exchequer and Public Credit,
And by order of the President published and printed.
[Inclosure 2 in No.
635.—Translation.]
Decree No. 182.
J. Rufino Barrios, General of Division and President of the Republic of
Guatemala, decrees:
- Article 1. A loan of $500,000 shall
be raised on the largest capitals of the republic, payable in
monthly payments of $100,000 each, half in silver and half in
notes at par; the first payment to be made on the 15th of June
next, and the others on the same day of the following
months.
- Article 2. The government will give
a bonus of 10 per cent, on all the payments made in coin, and it
will also give it on those made in paper when this is at par in
the market; it will also pay 1 per cent, interest a month on the
whole amount subscribed.
- Article 3. Fifty thousand dollars in
paper will be extinguished monthly, twenty-five thousand of this
amount being of the present loan and the other twenty-five
thousand the amount of paper destroyed monthly in the
administrative offices of the republic in conformity with a
former decree.
- Article 4. For the refunding of the
capital and interests of the loan the income from spirits
(native) is set apart, of which $75,000 shall be paid every
three months, the first payment being made on June 30,
1878.
- Article 5. For the amounts lent, and
their corresponding bonuses, bonds of the converted debt will be
given. These bonds will be stamped with a special seal bearing
the words, “Loan of 1877.” After the payment of the interests,
these bonds shall be drawn by lot until they reach the rest of
the amount destined to be refunded.
- Article 6. The distribution of the
loan will be made by the governors (jefes políticos) in the
fairest manner, according to the calculations they are able to
make of the capitals of the contributors.
- Article 7. The payments shall be
made in this capital in the office of the central commission of
consolidation, and in the departments in the office of the
governor.
- Article 8. The persons that resist
the punctual payment of their respective amounts will thereby
render themselves liable to the payment of double the amount
which shall be levied on their property; in such cases the
authorities must proceed in such a manner as to enforce the
payment three days after the reqnisition.
- Article 9. The minister of the
exchequer is charged with the execution of this decree.
Given in the government palace, May 26,
1877.
J. RUFINO BARRIOS.
The Minister of Exchequer and Public Credit,
And by order of the President printed and published.
