The Lancaster gazette. (Lancaster, Ohio) 1846-1852, 1848-02-18

charged upon the custom. houses OfVe-
ra Cruz and the cOmmissariats Of Duran
go and Zacatecas. The contractor real.
ly advanced only S149 ,2O6; for it was as
certaned that he paid FIVE per cent only
for the credits and fifty for the tobacco
bonds. He realized the S400, 900 at the
end of six months.
From that time this has been the prn-
cipal resource ofthe Treasury. The risk
Increased with the difficulties of the
Treasury, but the temptation was So great
that all the moneyed men in the country.
Mexicans and foreigners. Supplied from
lime to time the wants oftbe Government
on these terms. At times the orders on
the custom houses were suspended alto
gether; at others they were received in
part payment Of duties; but they always
bore high price in the money market,
and such contracts were invariably prof
table to the individuals and ruinOus to the
Treasury.
When Zavala entered into the office
he made frank exposition to the Cham.
Der of Deputies of the utter destitution
ofthe Treasury. He said that the gov
ernment had broken its most solemn en-.
gagements with its creditors at home and
abroad, and those who held Mexican
bonds had no. o.prOspect Of payment. (By
the way | was deceived the other day, the
Mexican bonds are quoted at II to 175
per cent?
Zavala assured the Chamber that the
eipts for the last nine months had not
exceeded S7O00O0-a firm equivalent
only to seventh part Of the ex penses of
the Federal GOvernme Mt; SO that the Sc.
cretary Of the Treasury had been com.
PEELED to have recourse to the disgraceful
and ruinous anticipations of duties prac-
liced by his predecessors in Office. To
this measure he traced all the disorders
and distress of Government; the pros
rralion of credit, the inextricable confu-
sion ofdebts, loans, unpaid salaries, &c
He concluded by saying that S31s,645
were due to the troops; ST., ,S44 to the civ
il list; and this sum Of 1896, 1873 was aug
menting daily, without any means of pay.
ment
This state of things conlinued;.fnr we
find Margine who was Secretary of the
Treasury in 1890 stating nearly the same
difficulties and deficiencies. He saysthe
ordinary receipts of the Treasury
never sufficed to pay the appropria.
tions: so that, from the formation of the
Government, ii became necessary to re-
sort to loans. When the proceeds of
these were exhausted, national loans,
with the admission of credits, were resor-
ted to until the receipts of the custom du-
ties were swallowed up. They had a.
mounted to S500,000 month. The Gov
ernment could barely count upon $780,
900. The tobacco rent was mortgaged,
and could yield only $4,000 month.
The internal duties, contiEgents of
States, Territories, &c, could not furnish
more than 100000 monthly; so that the
treasury was reduced to $500, ,000-not
more than sufficient to pay the troops
then assembled in the federal district.
The States failed to pay their contin-
gents; indeed never paid their debts to
the Federal Government, which supplied
them with tobacco at a given rate. The
only remedy that suggested itself was
the fomation of a central Government,
which was effected by the monarchical
party, the hierarchy, and the army. They
availed themselves of the general discon-
tent to take this important step towards
the throne they Ionged to establish, and
succeeded through the instrumentality of
Gen. Santa Anna. But the finances re-
mained in the same condition, and the
identical expedients of raising money by
anticipating the income here resorted to
and what with these transactions and the
funding and reflnding the interest of the
foreign loans, the debt Of Mexico is in
creased to a frightful amount-an amount
which we shall be called upon sooner or
later to pay, if we continue to occupy the
country.
My object has been to show that Mex
leo canuot be made TO defray the expen-
ses of our troops by any system of finance
we can devise, or any military exactions
we can levy. We must pay, moreover,
for the provisions our army will consume
double the price of the rations at home
or that army will starve. Is it not to be
feared that the products of agriculture
never above S30,O00.O00 will decline un
der the pressure of this invasion. with SO
many men in arms, plundering and living
upon the poor farmers of the countryl-
Is there no cause to apprehend pesti-
lence as well as faminel Mexico has
not unfrequentiy been visited by both.
firmly believe that if the U. State:
would act with justice towards her weak
er sister republic peace might be made
upon advantageous terms. But if the
war is to be continued and prosecuted
with vigor, ten thousand additional troops
will not be enough; especially if our ar
mics are to spread themselves over the
country, occupy all the chief cities, and
levy military contributions in all the
States, as we'll as receive all tho reven
ues arising from their internal and exter
nal duties. think no QUE well acquain
ted with the country would sanction susl
measures with so small force of fift,
thousand men. II was not my intention
however, to give unasked advice bu
merely to convey the information that ap
peared wanting in relation to the 6nan
ces of Mexico.