File No. 812.00/14761.

Consul Bevan to the Secretary of State.

[Extract.]
No. 1398.]

Sir: I have the honor to advise the Department that * * * without the slightest warning the local chief of arms, General Francisco [Page 1038] Gonzalez, ordered all the dry goods merchants to appear before him and fined them each 1,000 pesos for selling goods at high prices. A number of Spaniards paid the fine under protest and closed their places of business immediately; and a few continued to do business, decreasing their prices. The only American among them was the manager of the Regal Shoe Store, who refused to pay the fine. He placed the whole matter in my hands, after having closed his place of business. The matter was referred by this office to the General, who has not yet answered my communication.

A delegation of Spanish merchants called on this office to know if the seal of said office could be placed on their doors in case of an attempt on the part of the commissary department of the Mexican army to commandeer their supplies without payment. I advised them I could not give them any positive answer, but would have to refer the case to my Government for instructions in case of such an event. The military authorities recently purchased a large bill of goods amounting to several thousand pesos from one of the Spanish firms, and gave the firm in payment an order on the military treasurer, which could not be cashed. It is for this reason that the Spaniards are unwilling to sell goods under those conditions, as they have little chance of even getting their money for them. * * *

I have [etc.]

Thomas H. Bevan.