No. 63.
Mr. Hall to Mr. Bayard.

No. 582.]

Sir: Your instruction No. 379 of the 12th of August, inclosing a copy of an interest-bearing bond purporting to have been issued by Nicaragua in 1856, was received at the legation during my absence in Honduras. Upon my return, in September, I addressed a note to the minister for foreign affairs of Nicaragua, requesting such information as he might be able to give as to the genuineness of the bond in question. I now inclose a copy and translation of his reply, in which is transcribed a communication upon the subject from the minister of the treasury.

It is alleged that no record exists of the decree of the 28th August, 1856, under which the supposed bond is said to have been issued, nor any of the bond itself. The minister infers from the dates mentioned that it is the work of the so-called Walker Government, whose acts have never been recognized by any Government of Nicaragua since that time.

I have, etc.,

Henry C. Hall.
[Inclosure 1 in No. 582.]

Mr. Hall to Señor Castellon.

Mr. Minister: I beg leave to annex hereto a copy of an interest-bearing bond, No. 69, for $200, purporting to have been issued in virtue of a decree of the Government of Nicaragua of the 28th August, 1856; it bears date of November 1, 1856, and is made payable at the Bank of Louisiana at New Orleans in gold or silver coin or the equivalent.

Inquiry having been made at the Department of State in regard to this bond, the matter has been referred to me for such information as I may possess or may be able to obtain in regard to its genuineness or validity. If your excellency will kindly furnish me with any information on the subject to enable me to answer the inquiry of the Department, I shall be very greatly obliged.

Renewing, etc.,

Henry C. Hall.
[Inclosure 2 in No. 582.]

Republic of Nicaragua.

$200.]

[$200.

No. (69). Know all men by these presents that the Republic of Nicaragua is indebted to the bearer hereof in the sum of $200, for value received, which the said Republic promises to pay at the Bank of Louisiana, in the city of New Orleans, in gold or silver coin, or their equivalent in other currencies, in twenty years from the date hereof; and also to pay an interest thereon at the rate of 6 percent, per annum, payable at the bank aforesaid, at the end of each and every year upon the delivery of the warrants in the margin hereof.

This bond is transferable by delivery, and the holder shall have the right to give it in payment at par for one-half of the amount he may owe the Government for any customs, dues, taxes, or local contributions which may be laid or levied by the Republic of Nicaragua.

[Page 76]

In witness whereof, the agents (commissariat) of the said Republic of Nicaragua sign these presents with their secretary, who countersigns the same and affixes hereto the seal of the said republic, in pursuance of a decree of said republic, dated on the 28th day of August, A. D. 1756, duly deposited and recorded in the office of William Christy, notary public, in the city of New Orleans, the 28th day of October, 1856.


Mason Pilcher
,
S. F. Slatter,
Agents
.
[seal.]
C. W. Muncaster,
Secretary.

[Coupon.]

$12. Republic of Nicaragua, $12. Government bond No. 69 for $200 interest warrant for $12, payable at the Bank of Louisiana, New Orleans, on the 1st day of November, 1808, fixed.

C. W. M., Secretary.

Coupons from 1857 to 1876, inclusive. The 1857 is cut off.

[Inclosure 3 in No. 582.—Translation.]

Señor Castellon to Mr. Hall.

Sir: I have the honor to inform you that having transcribed to the minister of the treasury your esteemed note of the 22d September, together with a copy of the bond accompanying it, I have received the reply, of which the following is a copy:

“I have had the honor to receive the communication that you were pleased to address me on the 8th inst., in which is transmitted the note of the minister of the United States, dated the 22d of September, inquiring as to the authenticity and validity of the supposed bond of this Republic issued, as it is pretended, in conformity with a decree of the Government of Nicaragua of the 28th of August, 1856. A textual copy of the bond accompanies the above-mentioned note.

“The mentioned decree is not known to the Government, nor does it exist on the records of our loans, nor is the obligation to which it refers a legitimate debt of the Republic. By the dates that are cited I perceive that it must be the work of the filibusters of Walker, who were here about that time, and whose history of depredation and rapine is well known. Of course the foreign usurpers never had any right to compromise the credit of this Republic.”

In transcribing to you the foregoing note of the minister of the treasury I have the honor to renew, etc.,

F. Castellon.