Mr. Taylor to Mr. Olney.


Summoned to-day by minister of state, who told me confidentially that after the council of to-morrow he would be able to answer officially my note of June 18, demanding payment of Mora indemnity, that the council yesterday resolved to offer to satisfy said demand by payment of the principal in three installments at the times indicated in your conversation with Dupuy of the 21st June. While clearly expressing his expectation to pay principal only, he declined to intimate whether he proposed to tender gold or depreciated Spanish currency. What shall I say on that point?