The Express.
London, England, 1864-04-12 00:00:00

MEXICAN BONDS.

A meeting of the holders of Mexican Bonds,
originally called far Wednesday week last, but postponed
on account of the difficulties which arose in the acceptance
of Um imperial mown by the Archduke Maximilian, was
held yesterday at the London Tavern, to consider the UMW
to be insisted upon by the creditors under the old debt is
the issuing of the proposed cow lass—Mr. .1 AXIS CAPIL
in the chair.

The room in which the meeting was held was crowded to
exeses, and it was soon found seoeseary to adjourn to the
large banquet-hall upstairs, which was no more than suffi-
cient to accommodate the number of bondholders present.
The Ceernuag eked to be excused for calling the meet-
ing, not being himself a bolder of Mexican Bonds, but ex-
plained that be had done so at the request of Mows. Glyn,
Mill, jand Ca .who were his bankers. He had a communication
to read, which Masers. Baring the agents for the bond-
holders, had thought it right, acting in that capacity to
address to Earl Rumen, with the view of obtaining justice for
those whom they represented. At their request be would
read the letter which they forwarded to his lordship. It
was es follows :

" London. 12th March, 1864. —My lord,—We are swan
that it would be premature to salt any interference on the
part of your lordship with a government not yet eta.
blished or recognised in Mexico, and we should Dot be
guilty of the impel-themes of asking the expression of any
opinion on the subject from her Msjesty's government, but
the notoriety of the fact that financial operations are now
in contemplation and in process of negotiation for Mexico,
by which the interest of the British bondholders, of whom
we are the representatives, might be affected, induce' us as
shortly as possible to recapitulate these claims. The
amount of Mexican Three per Gent. Bond. in cireul►tion is
10,241,6501, Oa these bonds there were ten years' din-
deals in arrest on the let January last, 3,072,4951. Against
these arrears some small sums have been remitted from the
custom-house of Vera LYnx since the oceupatioo of that port
io December, 1861, and your lordship will remember that
a sum of seo,ooo dole, or about 140,2501., which would
have gone in diminution of the amount, was forcibly taken
from the British Legation in November, 1860. The bond-
holders have other claims against the Mexican government,
with the particulars of which we do not now trouble your
lordship. The English debt, as your lordship is aware, is
secured by specific assignments on the Mexican custom-
house., as follows :-25 per cent of import duties io all
maritime and frontier custom-houses ; 5 percent of export
duties in ports of the Gulf ; 75 per coot of export duties in
porta of the Pecific ; sod there is an additional assignment
is its favour under the Aldham Convention of 5 per cent.
of import duties in the ports of Vera Crux
and Tampico. The English Diplomatic Convention Debt,
amounting, with arrears of interest, to about 900,0001., is
also secured by assignment. of 16 per cent. of import duties
in the maritime custom-house. Eight per mint of the
some duties additional under the Dunlop ocioventioo, except
those earned by French vessels (to be iocreased to I() per
cent. of import duties by all vessels as soon as the French
Convention Debt is paid off), and five per cent ad-
ditional of import duties in the custom-house of
Vera Cruz and Tampico under the Aidham Cooventioe.
The validity of these assignments has been very nearly and
forcibly stated in the following passage of your lordship's
instructions to Sir Charles Wyke, dated 30th March, 1861 :
, Your earliest attention, after your arrival in Mexico,
must be given to the question of British claims. You are
aware that it has not been the custom of her Majesty's go-
vernment although they have always held themselves free
to do no, to interfere authoritatively on behalf of those who
have chosen to lend their money to foreign governments,
and the Mexican bondholders have sot bear au exception to
this rale. The constitutional government, however,
while established at Vera Crux under the presi-
dency of Senor Juarez, coocluded with Captain Dunlop,
two years ago, an arrangement by which it was
stipulated that 25 per cent of the customs receipts at Vera
Crux and Tampico should be assigned to the British hoed-
holders, and 16 per cent to the holders of Convention
Bonds. That convention was coofirmed and exteuded by
the arrangement lately made by Captain Aldhain. The
claims of the bondholders, therefore, to the extent provided
for in those armagements, have acquired the character of
an international obligation, and you should accordingly
insist upon the punctual fulfilment of the obliga-
tions thus contracted.' We are aware that the par-
ticulars of these claims has been frequently
brou.ght ceder the notice of your lordship. and that
its your custody international claims are quite secure, but
it is possible that the advisers of his Imperial Highness the
Archduke Maximilian, and even the government of the
Emperor of the French, with whine sanction it is under-
stood that he will proceed to Mexico, may not be fully
aware of the real position of the rights of the bondholders,
and this information afforded to them io a friendly spirit
may avert any attempt at an injustice, the reparation of
which might hereafter require more urgent reclamation.
We venture to hope that your lordship will pardon the
liberty which we take is submitting to your consideration a
steteMerat made in the interes► of British bondholders, who
recognise in your lordship's acts the desire to protect them
as far as possible from further lejury.—We havetbe honour
to be. my lord, your lordship's most obedient humble
servants, (Signed) " Beacro BROTHIRS, AliD CO.

. _ .
"To the Right Hon. Earl Russell. KG., her Majesty's
Principal Secretary of State for Foreign Affairs, de."
He would now read the reply : " Foreign-offloe,
March 18, 1864.—Gentlemen,-1 am directed by Earl
Russell to acknowledge the receipt of tour
letter of the 12th instant regarding the claims of British
bondholders in Mexico, and I am to state to you, is reply,
that until the Archduke Maximilian is formally acknow-
ledged se sovereign of Mexico, no official representation can
be made to him on the part of her Majesty's goverommit.
Steps will, however, be taken to bring the matter to the
knowledge of his imperial highness.—l am, gentlemen, your
most obedient humble servant (signed) A. H. LAYARD.—
limn. Baring." He would next reed a letter
from Messrs. Baring Brothers to himself : " Lon-
don, March 28.—Ss: As agents for the Mexicaa
bondholders, we wish to bring before you some mat-
ters which seem to us to require the consideration
of yourself, and of those who will take pad is the
proceedings of the meeting of bondholders which
you have summoned for the 30th instant. Not
having been selected either by the newly constituted govern-
ment of Mexico or by the contractors of the
loan proposed for that country as the medium of com-
munication with the bondholders, we are relieved from the
responsibility of taking part ourselves in the deliberations of
your meeting, or of giving any opinion as to the expediency
of adopting or refusing the propoeids which may then be
' offered ; but there are questions of so great interest to
bold fide bondholders of long standing, and of such ins
portauce to the honour and future credit of Mexico, that
it is our duty to perm them on the immediate consideration
of yourself, and of all who are concerned in the financial
operations of that country. The claims to which we refer
are se follows:—In the conversion of the Mexican debt in
183'1, the Mexican government issued for circulation deferred
bonds to the extent of 784.3:41.—bey00d the amount re-
quired to meet the outstanding debt. In the subsequent
conversion of 1846, no provision was made to meet this addi-
tional issue, sod the consequence has berm that • considerable
amount of the bootie irregularly issued was converted, whilst
• corresponding amount of loads the property of hoot fide
holders, and issued for legitimate purposes, was shut out
from the cooversion. Of these deferred beads we are in-
formed that a sum of 350,000/. baa been delivered by
Messrs. Liter& to Colonel Facio, on account of the Mexican
government, and cancelled. leaving still in circulation un-
converted hoods amounting to 434,3501., the holders of
which have been deprived of all dividends paid
to the other bondholders since 1846 whilst these
bonds have been unsaleable unless at an onerous sacrifice.
These 434,3504 deferred hoods represent, at 60 per cent.,
the rate of conversion in 1846, 260,610(. in Mexican 3 per
cent. bonds. To place these hoods on a par with the others
would require a payment is oath of the amount of the divi-
dends which have been paid on the converted bonds,
181. 18e. per cent, 49,25.1. ss. 9d. ; and, u a complete mea-
sure of justice, interest should be added at 5 per cent
per annum, say 26,8791. 19e. fkl., together 76.1331. se. sd.
This payment made, the bonds would carry the lame
amount of arrears as the current 3 per cent. hoods, viz.,
ten years' dividend from Jan. 1, 1854, to Jan. 1, 1864,
78,183/. The bondholder' have elm • claim for 900,000
dole. (or about 180,000/.), amountnollected by the Mexican
government on account of the bondholders prior to their
acceptance of the conversion under decree of the 14th Octo-
ber, 1830, and never paid over to them. The foregoing
claims are evidently just, and call for immediate and
urgent attention. The bondholders are also in strict justice
entitled to interest on the arrears of dividends from the dates
when they respectively became due; and the claim has
been regularly preferred in the reports of the committee of
Mix can bondholden. There are still in existence some of
the original Mexican bonds and coupons which the holders
have not been able to convert, the conversions having been
suspended for several years by the Mexican government.
The remanets do not constitute • separate claim, being in-
cluded in the debt of 10,241,6501., and it is presumed
that the agents through whom the several conversions were
effected have the requisite bonds and certificate" in their pos-
session, ea also the funds required to pay any dividends
which may have been paid to the other bondholders. It is
very desirable to call is all the outatandiog hoods and cou-
pons, and bring the conversion' to a close. From the
friendly communication we have had with yon on the sub-
ject, and the uniform courtesy you have always shown in
your intercourse with is, we feel assured that you will give
the matter your attentive 000sideratioo, sad we are truly,
lid
sir, your most Obedient elleTente (signed BAILING Blortietto
sod Co.—James Capel, Esq., 5, moctonntreet."
The oast communication he bad to lay ore them was
from Messrs. Glyn to the International end Financial
Society, as follows :
" London. April 11, 1864.—J. Capel, Esq.—Dear Sir,—
Referring to our verbal communications, we have now
offleiall)to submit for the consideration of the Mexican
bondbaiders over whom meeting you are about to preside,
the terms proposed to them in connexion with the new loan,
the negotiation of which on commission his Majesty the
Emperor Maximilian has entrusted to us. If these terms
be emoted, the loon will be negotiated on the London ss
well as on the Paris market. By the original convention
the terms proposed are the payment in cash of the coupon
of U. 10a due Ist January, 1864, and the capitalisatioo of
the remaining coupons in Three per Cent. Beads at par.
Is coomquerms, however, of the representations to the
claims of the bondholders which we have thought it our
duty to submit to the Emperor Maaimilieu, his
Majesty coosenti to the conversion of the 281. 10s.
coupons in arrear into a Three per Cent. Bond, at the sate
of 601. per cent in hand the conversion at par, so that the