Weekly national intelligencer., 1848-02-05
i4,44l,693

The expenses at that period were something over
six millions, leaving about eight millions applicable
to the Spanish treasury.
Now, if you run your eye over these items, YOU
will how many enlightened Government
would strike out II is true the custom duties were
much increased after the revolution of 1924 but
the revenues sufiiced to defray the expenses
of the Federal Government After the overthrow of
ITURBIDE the directors of that revolution were in
great distress for want of funds The treasury was
exhausted I; the troops had been subssted for five
months by forced loans, levied on the provinces by
their COMMANDERS state of things which could
not exist much longer without exciting general dis
content. They formed the project of loan of
eight millions. But to effect this would require six
or eight months and in the mean time they anti
cipated the proceeds Of the tobacco rent to the
amount of a million of dollars, at discount Of
twenty per cent, and negotiated with the English
house of Staples d. Co. million on account Of
the eight million loan at seventy for the hundred,
and at an interest of six per cent.
Loans continued to be made after the establish
ment Of the Federal Government 10 the amount of
thiry-two millions, for which the Government recev-
ed altogether twenty-five millions eight hundred and
sixty thousand. The whole Of this sum was ex-
pended in two or three years, and Mexico ceased to
pay the dividends in 1927, and ever since that pc
rod the debt has been increased by the runous ex-
pedent of funding the interest for the benefit of the
stockholders.
1t is right to state here that the bankruptcy of the
Mexican Government was preceded by that Of both
the houses in London which had taken the loans.
Messrs. Barclay, Herring, Richardson & Co. and
Messrs. Goldsmith a. Co. both protested the drafts
Of Secretary Esteva, although the former acknow-
ledged having in their hands g446O00 sterling be-
longing to the republic, and the latter 450O, O,00O
This happened in 1927, and in that year the divi-
dends were not paid. Al this PERIOD too, the re-
ceipts Of the customs were sensiby diminished and
the distress Of the Government became very great
Esteva retired from the Treasury; but his success
sors in Office were incapable of restoring the credit
OF the nation or Of supplying the daily wants OF the
treasury; and he was recalled by Victoria 10 con-
nue the same extravagant career, and resort to the
same expedents as before. | will give one example
OF the most usual mode of raising money resorted
TO by Eseva and his successors TO the present day.
The Government had on its installation acknow-
ledged the debts incurred by the former Viceroys and
certain other claims against Mexico TO large
amount; but, as no measures had been taken to
liquidate them, these credits were floating in the
Mexican market at price varying from five to e.
tee, teen and twenty per cent. A large sum was due
likewise by the Government to the tobacco-planters
which formed another credit worth about fifty per
cent.
The contract alluded 10 above was as follows
$3.50 249 rails first credits 10 he received by Government
at 80 per cent ...................Sl Sl99, $50 all
oDacco credits at par ............ 125yO02 |. IL
'''''.''''.......... 75,O42 4.2
s400, ,005 90
This transaction was for an advance of eight
months, and the whole amount charged upon The
custom-houses of Vera Cruz and the commissariats
of Durango and Zacatecas. The contractor really
advanced only Sl49,206; for il was ascertained
that ne paid five per cent only for the credits and
fifty for the tobacco bonds. lie realized the
$4VO,OO0 at the end of six months. @
From that time this has been the principal ~
source OF the Treasury. The risk increased with
the difficulties Of the Treasury, but the temptation
was SO great that all the moneyed men in the coun-
try, Mexcsns and foreigners, supplied from time to
time the wants OF The Government on these terms.
AT times the orders the custom-houses were sus
pended altogether; at others they were received in
part payment ofgdsties but they always bore a
high price in the fiopey market, and such contracts
were invariably profitable to the individuals and
r,;yo,.s A, the Treasury