The Sun.
London, England, 1848-09-07 00:00:00

SIT N 7 SEPTEMBER 7, 1848.

hope for a very different result. Upon the receipt of
M. Mora's communication, they wrote to Lord Palmers
ton; and he (the Chairman) was proud of the opportu-
nit3. of stating that his Lordship had upon all occasions
evinced the most anxious desire to afford his assistance,
and had given en assurance that he would call the atten-
tion of Mr. Doyle, the British Minister in Mexico, to the
subject. With the intention of placing the claims of
the bondholders upon all revenues in a clearer light, the
committee had submitted a case to the Queen's Advo-
cate and Dr. Phillimore, which, as it was of much im-
portance, he would read to the meeting:—
CASE.

" Herewith is sent a Mexican bond (in blank) of the
Mexican foreign debt of 10,241,6501., issued in June,
1846, to bear interest from the Ist July, 1846 (see No. 1
of documents left herewith).
" No payment of interest has taken place on this debt
in consequence of the war between Mexico and the
United States of America.

" A treaty of peace has been concluded between these
two nations, by which Mexico cedes to the United States
a certain portion of her territory, receiving in compen-
sation for the same 15,000,000 dollars, payable in five
equal annual instalments, the first of which has been
paid.
"On the 7th August there appeared in the Times
newspaper a communication from M. Mora, the Mexican
Minister at this Court, of which a copy is herewith (see
Document N 0.2).
" The committee of Spanish American bondholders
addressed a letter to M. Mora, in reply to this publica-
tion, of which a copy is herewith (see Document No 3),
and M. Mora replied thereunto, of which a copy is here-
with (see Document No. 4).
"Your opinion is requested—
" Whether M. Mora is justified in contending on the
grounds assumed by him, that the indemnity money in
question is not responsible towards the foreign debts of
the Republic?
" Whether, on the contrary, it be not the case that
every source ofrevenue,however derived by the Mexican
Government, is responsible for the debt?
" And whether, independently of tha altola oasaid.o-,
rations, the fund in question is not specially applicable to
the foreign debt, on the ground that as the whole of the
Republic contracted that debt, the Government has no
right to dispose of a portion of the Republic without
diminishing a portion of the debt?"
0 PINION.

" We think it necessary to state with precision the
facts which appear to be admitted by the Mexican Go-
vernment, in the case upon which our opinion is re-
quested.
" First. In the printed form of the bond on the Mexi-
can consolidated debt (marked No. 1, of the papers sub-
mitted to us), we find the Mexican State expressing

itself as follows:
'' And whereas his Excellency the President ad in-
terim of the said Republic, in pursuance of the above-
mentioned decree, did, under the date of the sth of
March last, direct the creation of a new Consolidated
National Debt, and did hypothecate to the payment of
the interest thereof, and the redemption of the capital,
the entire revenues of the Republic, and in a special and
distinct manner that of tobacco;' and in another psrt of
the same instrument, Now, know ye, that I, the said
Thomas Murphy, Envoy Extraordinary and Minister
Plenipotentiary as aforesaid, acting herein in the name
and on behalf of the said Government of Mexico, and
in virtue of the powers and instructions received by me
from the said Government, do hereby solemnly promise
and engage that all and each of the conditions con-
tained in the said proposal shall be duly and faithfully
observed and kept by the Government of the Republic
of Mexico, and that there shall be reserved and set apart
the revenues therein specially hypothecated to the pay-
ment of the interest and redemption of the principal of
this new consolidated debt, and that the same shall not
on any pretence, in peace or in war, " be alienated there-
from;" so that the half-yearly dividend on the said new
consolidated debt shall be faithfully and punctually
discharged, and the redemption fund be duly applied.'
" In another part of the same instrument, which bears
the impress of the authority of the Mexican State, we
find the proposal,' thus solemnly ratified, speaking the
following language. In the fifth article, 'as guarantees
for thel payment of interest, as well as for the re-
demption of the said new consolidated debt, the Mexican
Republic hypothecates its entire revenues in general,
and in an especial and distinct manner that of tobacco.'
" In the sixth article, among other provisions, we
find, ' and in the event of the said tobacco revenue
being found insufficient for that purpose, such defi-
ciency shall be made good from some of the other
branches of the revenue of the said Republic; so that the
provision for the payment of the said half-yearly divi-
dend and redemption fund shall be punctually and faith-
fully made.
" Secondly. It is an admitted fact, that for two years
neither interest nor capital have been paid to the bond-
holders.

" Thirdly. It is,an admitted fact that a portion of the
territory of the Mexican State has been sold to the Go.
vernmeut of the United States, fir which 15,000,000
dolts. are to be paid.
" Now, to apply to these premises the legal and equit-
able conclusions of national justice;
" In the first place, we think it clear, looking both to
the contrabentium voluntas' and the ipsissima verbs of
the agreement, that the ' entire revenues' of the country
were hypothecated as a collateral security to the specific
sources more immediately and distinctly set apart for
that object.
" That the contract of the bondholders was made with
the Mexican Republic in its entire condition as the ulti-
mate guarantee, and that whatever act, therefore, of the
Mexican State diminished the extent of that territory,
pro tanto, weakened the security upon the faith of which
the loan was contracted.
" In the second place, it appears to us clear that the
principal and immediate sources of revenue hypothecated
for the payment of the bondholders have failed, and, from
the statement of the Plenipotentiary in this kingdom, are
likely still to fail, to discharge the burden cast upon
them. The cases,' therefore, for which the collateral
guarantee was given appears to us to have arisen.
" In the third place, the war in which the Mexican
Republic has been involved may have been, as sug•
gested by the Mexican Plenipotentiary, the reason
(though, perhaps, not a strictly valid plea) why she
has been unable to discharge her obligations to the
public creditor; and the sale of a portion of her terri-
tory may have been necessary for the preservation of
the whole.

" There appears to us, however, nothing in these ad-
missions to exempt the money so received from the lia-
bility which attaches to the general revenue of the Re-
public, from whatever source derived.
" The constant practice of civilized nations and the
highest authority of writers upon international juris-
prudence warrant us in referring to the written reasons
and equity of the Roman law, as supporting most fully
the view which we have taken. It is, moreover, an
authority to which the Mexican Republic cannot object,
as forming the basis of its own municipal jurisprudence.
" Lastly, we are acquainted with no principle of inter-
national law which would justify the Mexican state in
distributing the whole of the sum, the price of a portion
of hypothecated territory, upon the native, to the ex-
clusion of the foreign creditor. Justice, the reason of
the thing, and all writers of authority, lay down a dif-
ferent doctrine.

" We cannot, therefore, doubt that the Mexican Re-
public will, as the letter and spirit of her engagement
appear to us to require, allot an equitable portion of the
sum received for the hypothecated territory, as a partial
liquidation of the
the foreign creditor.
principal and interest of her debt to
" J. DOBSON,
" R. PHILLIMORE."

The opinion, it would be seen, was in favour of the bond-
holders, upon the whole revenues of the Republic. He
(the Chairman) was willing to make all reasonable al-
lowances for the difficulties of Mexico even before the
war, but had always urged the Government of that
country not to content itself with mere assertions of na-
tional faith and honour, without making any decided
effort to maintain them. The bondholders had made
immense sacrifices upon the first c, nversion, in the hope
of securing the future payment of the dividends, and
upon a subsequent occasion to relieve the Government,
had agreed to a further compromise upon the deferred
bonds. Two years had elapsed and they had never re-
ceived a shilling. There were 106,0001. in the hands of
the London agents of the Mexican Government, and the
committee, on the suggestions contained in private letters
and in the newspapers, had asked Messrs. Schneider to
pay a fraction of the dividends. They were then asked
to pay the money into the Bank of England in their own
name and that of the committee, and this request was
made without the slightest idea of mistrust in regard to
the respectability of the firm. The application, however,
was not complied with, and the ground assigned was that
Messrs. Schneider received the money as the agents of the
Mexican Government, to which they were bound to allow
4 per cent. interest, although, when they had sufficient
funds in hand, they would pay the dividend. He (tbe
Chairman) entirely differed with Messrs. Schneider ;
they were equally the agents of the bondholders.—
(Hear, hear.) The money was set apart in Mexico for
a special purpose.—(Hear.) Of what value was it to
the bondholders, however, if, when it caine to hand, it
was kept back Y—(Great applause.) No gentleman
could be aware of the many communications the com-
mittee received upon this and other subjects, and to all
(not sent anonymously) due attention would be paid.—
(Hear, hear.) While stating this, he must express his
opinion how much the bondholders were indebted to
their indefatigable secretary, who had strong claims upon
them, but as the committee did not receive anything
even towards the necessary expense of advertising. &c..
they had no means of remunerating the secretary for his
services, except by the contributions of the bondholders,
who, he hoped, would come forward for this and the
other purposes already stated to the meeting. If the
bondholders neglected to exert themselves now, and al-
lowed the funds available to go into the hands of the
Mexican Government, he was afraid the hopes of di
a -
vidend would be very far distant ; but if they supported
the committee in protesting against the manner in which
'their claims had been treated, he was was of opinion
they might soon obtain a settlement.—(Hear, hear.
In
conclusion he would move tbe following resolutions :
" That this meeting, referring to the correspondence
which has recently taken place between the Mexican
Minister at this Court, and the Committee of Spanish
American Bondholders, desire to express its entire con-

currence in the protest made by the committee against
the tenor of the Mexican Minister's communication of the
29th July.

" That it appears to this meeting that the views put
forth by his Excellency Senor Mora in the said commu-
nication are at variance with the first principles of law
and justice.
" That the Mexican Government being now in receipt
of a large sum of money from the Government of the
United States is bound, by every obli.zation of national
honour and nod faith, to provide for the immediate
liquidation of the arrears of dividends due to the bond-
holders, and for the punctual payment of the same in
future.

" That it is expedient to dispatch a special commis-
sion to Mexico, for the purpose of enforcing, in conjunc..
lion with Messrs. Manning and Mackintosh, the agents
of the bondholders, the claims of the bondholders on the
attention of the Government of Mexico, in order to a
speedy adjustment thereof.
" That the committee cf Spanish American bond-
holders be authorised to make arrangements for the pur-
pose, the expense attending the same to be provided for
out of the first dividend to be paid to the bondholders.
" That the Hight llon. Viscount Palmerstmi, her Majes-
ty's Secretary of State for Foreign Affairs, be respect-
fully requested to instruct her Majesty's Minister in
Mexico to suprort the representations of the bondholders
to the Mexican Government."
Mr. GARDE moved an amendment to the 4th resolu-
tion ; the substance of which amendment was, that the
bondholders petition Lord Palmerston for a direct inter-
ference in this matter, through our Ambassador at
Mexico ; and that, if they were unsuccessful in that,
to petition the Queen and Parliament to redress their
grievances. He considered that any deputation to
Mexico would be useless, and stated that such represen-
tatives had failed in other instances to which ho could
allude.
The amendment was not seconded.

Mr. LOUDEN asked by what right Messrs. Schneider
and Co. held the money of the bondholders ?
Mr. POWLES said there was an agreement existing bP-

„Wan them and the
_Mexican Government, to whom
they allowed four per cent. for the money till it came to
be sufficient to pay a half-yearly dividend. The same
arrangement was made between Messrs. Barings and
the Chilian Government. He knew of no fractional
dividend being paid, without a large compromise.—(Dis-
sension.)
Sir R. CAMPBELL questioned the utility of sending out
Mr. Robertson.
Mr. CAPEL thought the plan of sending out Mr. Pa-
rish Robertson, to urge on the Government the claims
of the bondholders, . likely to be most beneficial, as
Messrs. Manning and Macintosh were great merchants,
and, from their dealings with the Government, would
very likely have a delicacy in pressing their claims in
the way it could be done by an independent person like
Mr. Robertson. He thought it would be judicious to
get him to use his influence, at the same time to induce
the Mexican Government to place the instalments they
send over in future under the control of three separate
firms, as was done with the Brazilian money, which was
confided to Mr. Alderman Thompson, Sir Isaac Gold-
smid, and Mr. King, thus hindering the money from
getting mixed up in private engagements.—(Hear.)
The CHAIRMAN, after again reading the resolutions
seriatim, stated that he quite agreed in the opinion of
the several speakers, that the money in the hands of
Messrs. Schneider and Co. was virtually the money of
the bondholders, and ought to be paid to them, even
though it be only a fraction of their dividend.—(Ap-
plause.) lie was sorry the efforts of the committee to
get the amount in the hands of that firm placed in the
Bank of England to the account of the bondholders,
had been unsuccessful, as they considered themselves
the agents of the Mexican Government.
The various resolutions having been duly seconded,
were passed almost unanimously, there being only five
dissentients out of a large meeting.
A BONDHOLDER asked what was the amount of the
converted stock ? _

The CHAIRMAN stated that it was 10,247,650 dollars;
this was the amount now at stake.—(Hear.)
A BONDHOLDER inquired if the cotton licenses had
been productive?
Mr. POWLES said they would be, no doubt, as soon as
trade revived.

Mr. D. MOCATTA. having regretted seeing the least
opposition in a case in which they were all so much in-
terested, proposed a vote of thanks to their excellent
Chairman, on which he expected no difference of opinion,
which was seconded and passed by acclamation.
The meeting then adjourned.

CAPE OF -GOOD HOPE.
(From the South African)
CAPE TOWN, JUNE 12
The last Gazette contains the several drafts of or-
dinance which will come under consideration at the
ensuing session of the Legislative Council, and
among them is that for continuing the powers of the
central and divisional boards to levy further rates for
ta [Jet 1.711111C11
roads.
We had certainly hoped to see some kind of sym-
pathy or compassion shown to the unfortunate no-
minal landholders, on whom the whole burden of the
tax had been thrown; we had hoped that our rulers
would have become convinced of the injustice and
inequality of taxing a particular class for the benefit
of the whole community ; we had hoped that the pro-
ceedings of the late meeting of the landholders in the
Town-hall would have satisfied the Government that
the law was unjustly oppressive, and required modifi-
cation ; but vain were our hopes. Except an addi •
tion, with regard to the appointment of divisional
boards for the newly-created divisions, the ordinance
is literally the same as the former one, and empowers
the boards to levy the rates from the same parties as
heretofore.
Whether the draft will undergo any alteration after
the petition of the landholders of this city shall have
been presented to the Council, we cannot say, but it
would seem that there is no intention on the part of
the Executive to pay any attention to their remon-
strance ; for had there been any such intention the
draft would not have been presented in its present
shape, particularly after Government had been made
acquainted with the sentiments of the late meeting of
landholders through the medium of the press.
Why such obstinacy ? Why not enter into the
views of the people, who desire that every person shall
contribute his just proportion ? Is it because the
"convenience" of the Government forbids it to be
just? Surely this cannot be, inasmuch as it would
be in direct opposition to the liberal spirit inculcated
by the parent state. Nor can we believe that his Ex-
cellency the Governor really meant to continue the un-
equal burden on the landholders exclusively when he
said that he would ask for a continuation of the rate in
his " own way ;" if so, we have at least the satisfac-
tion to know that the gift of prophecy is conferred
even in the present day, and that our definition of the
above somewhat ambiguous expression on the Bth of
May last, proves too correct, and that " my own way,"
in plain English, means nothing more or less than—
" the Central Board requires the rates, and have them
they must"—but—from the landholders exclusively!
But, will the landholders patiently endure such
flagrant injustice ? Will they allow themselves to
be crushed by the will of a Council in which they
have no voice ? If they do they will deserve their
fate. But we expect the contrary; for we are satit-
fled that- if justice be denied them here they will
adopt every constitutional means to obtain it else-
where, and we can assure them that a petition to the
Home Government will not be fruitless, particularly
after the lately expressed opinion of Lord John Rus-
sell on the subject of taxation generally.
From accounts received in town it appears that Mr.
Biddulph had reached Winburg, and Mr. O'Reilly
the Caledon River, both of whom were well received,
the people expressing great joy at their arrival. It is
also stated that Jan Kok, one of the emigrant leaders,
and his people, had denounced Pretorius, and declared
themselves in favour of the Government.
Ludwigsburg Garden, together with the stock of
select plants, lately sold for account of the estate of
the late Baron von Ludwig, realised upwards of
3,000/. This, we are given to understand, is about
one-third of the amount originally expended on the
property.

NORTH-EAST COUNTRY.-THE EMIGRANT

BOERS.
The following important communication from this
quarter has come to hand. We give it in the words
of our correspondents :

"Cradock, May 27.
" On Wednesday evening last Mr. Thomas Dry, for-
merly of Somerset, arrived in Cradock, stating that be
had just left his farm beyond the Orange River; that. the.
whole of that part of the country was in cotinotton. in
consequenceoarswn theseiebnodardtwseaio,
ilfinaewsdttethhractre until joined by the farmers near the Ciao.lesdeolina.:
plarget ofro
a kh theeanvsebodyte ibneo er
Mountains,
n notoriousz
aoot i Aai
.s i det
mro eb ieo 0
rni
gPn
the Pretorius
him, ni
ler
syi ls a
on
having
added
ti‘dv,rtt
ihi
dhnahaei
wasygstd
past. That he and his people were to
Orange Rivers, that a farmer, one Louw Pretorius,
appointed Field Commandant, and that
nytybhirsinimgv,iia:B:s
was going round to persons residing near that part, and
commanding them to contribute arms, powder, and lead,
going
1 1;01
holder,icn,g,
ntsto be horses
qbseeunedan.
on:ndwee
h,omotf
he
twenhyai
sstwooaewnl
rlae
trhthdoi
essl thedlwi(
)t.,
ya heyel
tnfomat erturhmspeter iregssooe
l.wtoone
this
i el
leaving
e .1
naz_t
helical.: if
Vley,any
and person
consult requiredw ith
A informationnd ries
Pretorius.
r eats°
rtiounws . ho
oaooenrfid,
swounfotaotltoll
h,innihsgaatsaibtdhaerecekttohuerri
returned
ordgaenht
ilgolieemi
vceeor l,too o n his
River—that
w ah
ye
tf:vhahoaamedgiNirgsi yaeoftenaaailnimoMdas‘clati who said he was determined
isl to proceed and
e e t George
o n a NdVchoint e-
ilasstowt
jauystthngrreorurnhedallfrdoimfficruhletiseas.me
direction
he above is an exaggeration of facts it may
his
shathe report of Mr. Dry."
That cutts