Mr. Baker to Mr. Gresham.

No. 39.]

Sir: In response to the Department’s dispatch No. 15, just now at hand, I have the honor to report that among the first things which claimed my attention after my arrival in this country were questions growing out of the Government’s attempt to collect “a forced tax of $600,000 for war purposes.”

In a few instances, American citizens (by adoption) had suddenly blossomed out as capitalists and as proprietors of valuable properties which, until that time, had been the acknowledged properties of citizens believed to be in sympathy with the revolution.

In these cases the American flag had, without authority, been run up over the property and the payment of the tax wax resisted.

In each case I addressed a courteous note to the minister of foreign affairs of this Government, politely requesting that suspension of efforts to forcibly collect the tax be suspended until the real ownership could be legally established. In every instance the Government acted with all due consideration and without haste; and in the end I believe substantial justice was done and satisfaction given to all concerned.

I am, etc.,

Lewis Baker.