No. 812.
Mr. Bragg to Mr. Bayard.

No. 144.]

Sir: I have the honor to transmit herewith copies in English and Spanish of the President’s message delivered to Congress on the night of the 16th instant.

I am, etc.,

Edward S. Bragg.
[Inclosure in No. 144.—Extract from Diario Oficial of September 18, 1888.—Translation.]

Address delivered by the President of the Republic upon the opening of the first period of sessions of the Fourteenth Congress of the Union, September 16, 1888.

[Extract.]

Messrs. Deputies, Messrs. Senators:

I feel high satisfaction upon meeting here the representatives of the people, now that the period of four years, for which the public sense, expressed in the elections, placed me in charge of the executive, is about to terminate.

Happily, throughout all the Mexican territory, tranquillity and good order reign, nor have they once been interrupted during the past four years; and in consequence of the confidence which the situation inspires, all elements of prosperity at the command of the Republic are being developed.

Our foreign relations still sustain the characteristics of friendship and harmony which have marked them during recent times.

In view of the complications arising from the passage over the boundary line of cattle seeking pasture on either side, instructions were furnished to our minister at Washington to negotiate a treaty convention which should obviate the troubles incident to the stock-raisers. The said convention was signed on July 11 last, and will now be submitted to the Senate for approval.

The officers who crossed over into American territory for the purpose of arresting a deserter, after due trial by the military court at Piedras Negras, have been sentenced to a requisite penalty.

The Congress of the United States has again taken up for consideration the matter of the fraudulent claims of Weil and La Abra. As the United States Senate, some time since, rejected the treaty concluded for the revision of those like claims, it is to be hoped that the houses of the American Congress will devise some means for preventing the final triumph of the fraud committed by the claimants.

During the close of last July the same Congress approved a bill authorizing the expenditure of $100,000 by an American Commission which, in connection with ours, should relocate the boundary line and replace the injured boundary monuments; but, considering the said sum insufficient, the Chief Executive of that nation has requested authorization for the expenditure of $200,000 which as yet is not known to be conceded.

[Page 1230]

The death sentence pronounced against Arvizú and Gutierrez, the promoters of the Nogales disorders, was commuted to twenty years’ confinement. It was in their behalf that the President of the United States interposed his good offices, soliciting amelioration of their penalty.

Some Indians having escaped from the San Carlos Reservation, it is feared that they will commit depredations in our frontier States of Chihuahua and Sonora, and adequate measures are to be taken for the protection of those said States.

The governor of Arizona (in the United States) having had occasion to deliver over two American criminals, by way of extradition, to the governor of Sonora, the latter, in turn, delivered two Mexican criminals over to the former. The possible increase of leading crimes which have sprung up along the frontier, at points where the two countries are in close contact, and where by a few steps a criminal may cross over into his own territory and thus perhaps save himself, and also occurrences like the one I have mentioned, constrain me to recommend anew to the Senate the suggestion made in my message of September, 1887, that it revise the extradition treaty with the United States, in accord with amendments approved long since by the American Senate, empowering in a special manner, and in extraordinary cases, the Presidents of each Republic to effect the extradition of their own co-citizens.

The Senate gave its approval to the treaty-convention made with a special envoy from Guatemala for the adjustment, on an impartial basis, of the mutual claims of both countries, but it is now ascertained that the legislative assembly of said nation, upon revising the terms of the convention, has introduced substantial modifications, which it would be impossible to accept; especially if the prominent antecedents of that convention are taken into consideration, as well as the other international matters with which it stands related.

A treaty of commercial reciprocity with that country had also been framed, and had been submitted to the Senate; but, upon the request of the Guatemala Government, it was agreed to waive for the present its ratification, in order to agree upon some method for making the treaty satisfactory to both nations.

Difficulties have arisen between the boundary commissions of Guatemala in the survey of the boundary line and Department of Petén. These gave occasion to a note from the minister of foreign affairs of that Republic to our legation, protesting against the operations of the Mexican engineers. Our department of foreign affairs is engaged in the study of the report thereon furnished by the department of public works, with the attention due thereto, in order to dictate whatever measures may be adjudged needful and just.

On the 10th of last July our minister at Washington signed with the representative of Ecuador, recently elected as President of that sister Republic, a treaty of friendship, commerce, and navigation. The treaty I refer to will soon be submitted to the Senate for its approval.

Our consul-general at Paris, the engineer Don Francisco Diaz Covarrubias, is to be present as Mexican delegate at the International Geodetic Assembly to meet soon at Salzburg, and to which our Government was officially invited.

The executive has approved of the project of agreement and rules signed by our representative at the International Conference in Brussels, which, as I have already informed Congress, was convened for the purpose of translating and publishing all I customs, codes, and tariffs extant.

The Mexican Government has been invited, in expressive terms, by the Government of Spain to take immediate participation in the preparations commenced in that Kingdom for the celebration, in 1892, of the fourth centennial of the discovery of America. The friendly invitation having been accepted, our minister residing in Madrid has been appointed special representative on that occasion.

A treaty for the exchange of mail packages reciprocally, similar to the one recently negotiated and now in force with the United States, is about to be concluded with the minister of Her Britannic Majesty by the commissioner of the department of foreign affairs.

* * * * * * *

The elections to fill the Federal appointments were conducted in the shadow of peace and quiet throuhgout the country. No question of politics nor of local character has, during the recess of the Chambers, disturbed public order and the harmony which subsists between the Government of the Federation and of the States. This favorable condition of affairs has enabled all to devote attention to public improvements, to administrative matters, to the progress of education, and to impart to public safety that increasing stability which should and does so strongly co-operate in the elevation of the reputation of the Mexican nation. This important end is aided by the constant vigilance of the police of the several States, assisted by the rural guards, whose detachments, distributed in the Federal district and the territories as well as throughout the States of Mexico, Hidalgo, Puebla, Tlaxcala, and Guerrero, also in Oaxaca, Guanajuato, Michoacán, and Querétaro, constantly pass over the highways and are stationed at convenient points; all of which tends to the prevention of crime, [Page 1231] and inspires confidence among the various companies and laboring classes. The organization of the rural corps and the rules set by some of their fixed garrisons are being bettered each day, and new improvements are now under consideration, due notice whereof will be given to Congress.

The condition of the district mounted guards has also been improved, their personnel has been increased, and also the amounts designed to the payment of the same under the budget of expenditures. The nature of the service rendered by the mounted guards who are obliged, even though living within the limits of the Federal district, to change their residence constantly, made it very difficult for them to attend to the education of their children. This difficulty has been set aside by the recent opening of a special school in which the children of those guards receive not only instruction, but clothing and food as well.

The inhabitants of the country are as much interested in the sanitary condition thereof as in its security. In this line the efforts of the local authorities are seconded by the Federal Executive, in the bettering of the sanitary conditions of all the territory of the Union, to obviate thus an attack by epidemics. Fortunately, the diminishing of Asiatic cholera, alike in Italy and in Chili, during the past year, presage its disappearance soon from Europe and America. Fortunately, also, a long time has elapsed since any alarming epidemic has appeared in the Republic.

In the Federal district, where matters of public sanitation are more directly at the charge of the executive of the union, improvement is being constantly made on the prosecution of the drainage works, so important, and the prompt dispatch of which will be secured through a contract just made for the speedy termination of part of the labors. To these labors are added other partial works undertaken by the board of health and the city councils under the auspices and inspection of the political authorities and of the department therewith encharged.

* * * * * * *

The postal service is improving as much as possible. Nothing can give a better idea of its progress than the following data touching its operations: The proceeds of the service during the fiscal year closing June 30 last, were in excess of the previous year $53,756, and the pleasing result was obtained, viz, that the income during that period, as was hoped, not only equalled that of 1883, the last year when the high postal tariff was in force, but even exceeded by $36,414 the net income of that year.

Naturally the cause for the increase hi the proceeds was found in the increase of postal matter handled; while 24,000,000 pieces were handled in the fiscal year 1886–’87, the movement during the year closing in June last exceeded 29,000,000 pieces.

The item of foreign correspondence alone has assumed such increased proportions that it has become necessary to open new departments in order to re-enforce the number of employés in various exchange offices in the Federal district as well as on the northern frontier. Evidently the great reduction of time in communication with the United States and Europe which is to be soon furnished us by the National Railroad, will make this progress even more palpable.

Throughout the whole country greater activity is observable in matters of communication. Places that were scarcely known by name, to-day enjoy mail facilities which place them in possession of culture by means of the transmission of books and papers, co-operating, as they do, likewise to the development of social intercourse and to the interchange of business transactions. To obtain this result it was necessary to open new offices, which included thirty local post-offices and fifty-eight agencies. To utilize the same new postal routes had to be opened up and the number of weekly trips increased.

The late treaty made with the United States for the exchange of parcels through the mails took effect on the 1st of August last. Notwithstanding the short time that this important service has been in operation the number of parcels exchanged has been very large, and it is to be hoped that the packages sent from Mexico will steadily increase in number as our few national industries and our many natural products become better known abroad.

For the continuation of the service carried on between San Francisco, California, and some Pacific ports of Mexico by the steamer Newbern, and in order to connect the said service with that rendered by the steamer Alexander, a contract has been entered into with the concessionaire of this latter line for the establishment of a steamer service, which, under the Mexican flag, shall ply between the principal ports of the two lines mentioned.

* * * * * * *

The National Monte de Piedad (pawn office) has struggled with the difficulties consequent upon the crisis through which it passed four years since, and now can, due to the efforts made in its behalf, continue its operations and strengthen its credit. The Executive insists upon the new combinations suggested in his preceding message and hopes to see the same soon realized, certain that they will greatly aid in the usefulness of the establishment.

[Page 1232]

In accordance with the authorization given by Congress for the total or partial modification of the code of commerce, the Executive hastened to issue the law on anonymous firms for the purpose of thus fomenting the creation of like institutions which have such decided influence upon the development of the industrial and mercantile interests of the country. The commission appointed to study the general plan of amendments to the said code is concluding its interesting labors, and will soon issue the new code of commerce.

* * * * * * *

No effort has been spared tending to foster and propagate public education as the most efficient method of assuring in future the practice of democratic institutions and peace and prosperity throughout the Republic. In this connection various measures have been inaugurated by the department (of justice and public instruction) for the opening of primary schools in the northern district of Lower California, which, because of its geographical position and on account of its natural elements, claims the especial attention of the Government. Some notable improvements have been introduced in the normal school of teachers, suggested by the late trip made to the United States by the director. The demands of modern scholarship have been gradually met in the other national schools, and in order to stimulate private enterprise in the interests of education, due assistance has been tendered to a night school for working girls.

* * * * * * *

The progress made in the principal departments dependent upon the department of public works since my last message has been indeed noteworthy. With regard to railroads, despite the fact that rains have been copious in the greater part of the country, it can be stated that works of survey and construction have been begun on some lines, while on others such work has continued with little or no interruption.

On the 21st of last May the Central Railroad Company opened up to traffic the important line from Irapuato to Guadalajara, 259 kilometers in length. On the Tampico-San Luis branch the iron has reached kilometer No. 188, on the bank of the Gallinas River, over which it is proposed to throw a bridge for the tracks. The road-bed of the same has been prepared as far as 232 kilometer. On the line from Aguas Calientes to San Luis Potosi, the locomotive on the 9th instant arrived at Salinas del Peñon, some 110 kilometers from Aguas Calientes and about half the distance from San Luis Potosi.

The Mexican National Company has worked with great activity to complete the branch from Saltillo to San Miguel de Allende, in length 565 kilometers. At the close of this month the Northern line reached the city of San Luis, while the road is to be connected soon at the Boquillas viaduct, for it is to be opened for traffic in November. The conclusion of this great line, which is to unite cities of importance, will give a third road of steel to link the City of Mexico to the frontier of the United States.

The Hidalgo Railroad Company has finished 5 kilometers on the line from Tepa to Tulancingo, as well as 39 to unite San Agustin and Teoloyucan, thus making another line to connect Paehuca with this capital, as well as with the Central and National Railroads.

Regarding the Interoceanic Railroad Company, formed by the fusion of various companies, it can be said that 20 kilometers have been terminated on the road from Yantepee to Amacusac and 30 more on the section between Mazapa and San Martin Texmelucan. It is to be presumed that by the aid of the financial combinations recently effected in London this railroad will give great impulse to their labors.

The companies in Yucatan are likewise engaged in construction. The Mérida-Calkini branch has delivered 6 kilometers, and the Mérida Valladolid, 7.

The total extent of railroads in the Republic reaches now 7,500 kilometers.

The telegraph system has been gradually enlarged with the construction of new lines, which have connected important towns of various States and various frontier points, while the system of general ways of communication has always been followed. Without stopping to particularize the details of progress as obtaining along those lines and many of which details have been perfected, it is sufficient to state that the total extent of wires strung since last April up to date reaches 950 kilometers. Aside from construction work on the aforesaid lines, repairs and improvements have been made on the 18,000 kilometers which comprise the Federal telegraph system. The good condition of the system is well known for communication by wire has been constantly maintained in the country despite the accidents caused by the abundant rains of last June, during which time and even while the most severe damages befel the Bajío district, the Federal telegraph system alone remained unhurt, and rendered during those times of calamity marked services to the authorities and to the public.

Work on the Vera Cruz Harbor has kept up incessantly. The Construction Company having received the blocks of Chalán-porta has sunk a great number of them along the entire length of the northeast breakwater. It is to be believed that by the activity displayed in the work, and the experience therein attained, that each day [Page 1233] better results will be obtained in the work and more progress made, so that very shortly, and within the contract term, the work will be concluded.

The towns of Matamoros and Paso del Norte were seriously threatened by the waters of the Rio Bravo, which, year by year, destroyed the banks on which they are located. In order to remedy the evil the Government undertook, in their immediate vicinity, some works of defense. While the works are not concluded they are beginning to give the best of results. At Matamoros five wing-dams of a total length of 646 meters have been constructed. These works defend the northeastern part of the city, as well as some 800 meters of the river bank, a portion of land which lay within the threatened tract, being almost below the level of the high water. Four wing-dams have been finished at Paso del Norte, and the fifth is well under way.

Mining matters are being fully developed. While from April to date there have been only 425 denouncements of mines and 8 denouncements of reduction works, a lower record than hitherto, it should be noted that during the same period 682 mines and 33 reduction works have been brought into operation. On the other hand, the good effects which the law of June 6 last are producing may have operated to diminish the denouncement of mines, while they increased the number of contracts made with the Executive for the development of the mineral zones in accordance with the law cited; during this time fifty-seven contracts were made and others are pending. Including the contracts already concluded, since the promulgation of the said law, it is assured that capital, at least to the extent of $30,000,000 has been invested in mining industries.

The recent development of that industry has resulted in the creation of new mining deputations. Seven such deputations have been established lately at points where the necessity for same is plainly evident.

* * * * * * *

The general bureau of statistics, formed under the law of May 26, 1882, has collected up to date some important data to compile the respective charts which are now being included among the publications of the department. Prominent among these statistics are those on the criminal classes, embracing a period from 1871 to 1885, which gives satisfactory indications of the decrease, noteworthy and gradual, of crime in this our country.

The work of reorganization in the public treasury is continued; but, like every administrative reform of importance, it requires the lapse of time to reach a satisfactory conclusion. Yet it can be said that, while the financial situation is not altogether prosperous, there are good grounds for belief that it will improve, for now the Republic shows in extraordinary degree a development of the elements of public wealth.

Owing to the increase in national revenue, the treasury has been enabled to comply easily with the obligations provided for in the estimates of expenditures. Due is this to increase in value of property, to the development of commerce, and to the increased exportation of Mexican products, as well as to the favorable condition of our credit, which was never quoted higher than at the present time.

Construction on the new custom-house at Santiago Tlaltelolco being terminated, the dispatching of freight coming to this capital on the railroads has been concentrated there, to the benefit of commerce and of the fiscal interests, and it became necessary to re-organize the service of the custom-house in order to meet the new exigencies thereof.

The stamp revenue had been hitherto collected through the payment of commission of so much per cent. on the amounts collected. But as the executive was desirous of introducing greater economy in the collection, he decreed a new tariff of rates of commission, which has taken effect in this present fiscal year. Experience will demonstrate whether the commissions allotted are fair recompense for the labors and responsibilities of the functionaries of this service and adequate to the public service.

Business circles and the poorer classes alike met with serious difficulties in the simultaneous circulation of coins of the decimal and the old systems. The Government could not remain indifferent to these evils, and it therefore made a contract with the Mexican National Bank for the redemption of the old coinage, to be all called in, in order that the coinage current should be issued according to the decimal system, and that within the term fixed by Congress in its law of June 4 last the legal circulation of money of the old coin should cease. This contract is being complied with throughout all the Republic.

In Virtue of the law of the 30th of last June two of the banks provided for by legislation in Chihuahua were established, a contract to that effect having been made with the respective companies. The arrangement made limited the issue and circulation of bank-notes, while the interests of the public are guarantied by the opening of a reserve fund and by the appointment of a functionary who, in the name of the Government, may inspect the operations of those banks. Thus they were brought into subjection to our banking laws.

The Department has made a contract whereby the Mortgage Bank will widen the [Page 1234] sphere of its action, increasing its capital stock in order to devote itself to new operations designed to develop wealth. Institutions of credit being one of the most efficient methods of attaining such favorable results, the Government will engage to aid this movement, provided there is no conflict with the laws or with arrangements effected with other companies.

The operations of the liquidation and conversion of the interior debt continue to develop regularly. With reference to the foreign debt, the Government is complying with the contract of the loan made in Berlin on March 24 last, whereby the old London debt is being converted at 40 per cent. into the new consolidated 6 per cents. The loaning firm has taken advantage of the right of option which it had reserved for £2,100,000. This sum, added to the cash payment made, shows that the loan is realized in almost two-thirds of its value. There are good grounds for believing that very shortly the contract will be wholly complied with, as decreed by Congress on May 29 of the current year.

During the last fiscal year the exportation of national products reached the sum of $48,745,560. A comparison thereof with the exports of the preceding year shows that while there was a decrease in the exportation of coin and precious metals amounting to $2,260,512, there was an approximate increase in other articles; all of which, taking into account the depreciation of silver, is advantageous to the country, which has paid with merchandise a greater proportion of its imports than during the preceding year.

The revenue is increasing. During the last fiscal year closing June 30 the cash collections aggregated $32,508,564. It has been practicable, therefore, to meet punctually the several branches of public service, as well as to pay off the cost of public improvements and other pecuniary obligations resting upon the Treasury.

The floating debt, with interest, has been redeemed, the treasury liquidating and settling the respective accounts. Also the pending accounts with the national bank have been settled up to June 30 last, while a new contract for the account current to be opened in conformity with the charter franchise has been made with the said institution.

* * * * * * *

The status of the public consolidated debt up to June 30 was as follows:

Bonds issued of the interior debt $16,052,000
Bonds issued of the foreign debt 22,252,250

In virtue of the loan of the bonds of the issues of 1851 and 1886, £4,462,500 have been converted at 40 per cent. When realized the foreign debt will drop to the figure in gold of $52,500,000.

Meanwhile payment is being strictly made of the interest alike on the bonds of the interior debt and the foreign debt, as well as upon the loan bonds. The amount to meet the coupons on the latter falling due in October is already placed in London, through the national bank.

The bonds of the interior debt are quoted in Mexico at 33 per cent., and certificates (held by employés for arrearages of salary), without interest, at 35 per cent.

The old bonds of 1851, which have not as yet been converted, are quoted in London at 38 per cent., while those of the new loan, negotiated at Berlin, are at 92½ per cent., thus evidencing that our credit has reached a point never touched since the days of independence.

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