The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-02-15

" YORK, TUESDAY MO
given as he might incline. As the creditor in
all cases was anxious for his money, influence
was brought to bear upon the minister, and this
DESTROYS of having his debt liquidated would
offer sum as a bride, and the minister would
accept $1,000 tor himself, in consideration of his
agreeing to pay out $4,000 to an honest claim
ant. II there was no cash on hand, a draft
would be given on custom house, on the tobac-
co company, or on some other source of reve-
nue.. These drafts were subject to further dis
count from brokers, before the cash could be re-
alsed; ana thus the honest man, trusting to pub
lie faith, was cheated sometimes out of half the
amount of his claim. The effect was, that all
contractors with government had to calculate
the risk OF protracted payment or deprecated
funds, and raise accordingly in their demands -
Hence the government was never supplied at the
current rates In the market, but at double prices.
The recipients of executive favor were never
few In number, nor limited in their wishes. To
them contracts and Jobs were given at sums SO
enormous as to astOnlsh US, if not starte our be-
lief. The contract tor building the mole at Vera
have been constructed at profit of million and
a half of dollars. The tobacco monopoly was
an other rich reward given to company Offriends,
by whom much larger sum was annually real
lsed Smaller favors of the same kind were
thankfully received as opportunities were daily
presented.
The number of employees (clerks) IN the custom
houses, was much greater than the public service
required, but the executive had to retain the
force In these establishments at fifth of the
amount collected. In the custom house Of Mexi-
co there were $50 employees in Pueba so, and in
Vera Cruz 100. General Scott has very wisely
closed the two former; and in the latter, four
clerks are now found sufficient, with the colec-
tor
Another piece of favoritism, and of injury to
the public, was exhibited in the terms on which
loans were negotiated with those whom they
wished to crafty. Don Lorenzo Zavala, in his
work on the revolutions of Mexico, gives the
following examples OF loans negotiated, and
with whom, VIII
Loan of s4Oo 0o5, Of the 18th ofJuns, 1928.
Doip. rs. srs. Dolls rs srs.
its, at So per cent. ...... ..l99, $50 IL
la5 ooa II do. tobacco credits, at par. .l2sooa ii
'sO42 co. casn. ........ 75Oa2
4s5,2s2 400 COS 0 0
The first item of $235247 3rs. ssrs, being
in old credits before tho Independence,
sort ofcontinental money could be bought
at per cent, and would cost the CON.
The tobacco credit: were worth about 50 '0O
per cent in the market, and would COST. 81 SOL 27
To which being added the cash. 1904
Makes an expenditure to the contractor of
only. ...:....: .lio,aoe o 0
cash $4sO,OO5.
Another loan was contracted ON July IS, 1928
1906 9paid in old credits at 80 per cent 8OO77
s0,0l4 II do tobacco credit at par. s00l4 II
$4,000 do. cash. ............... 5000
sl4O,llla sla6,ooa 8
The old credits were worth per cent,
The tobacco credits at 50 cent: would cost.
And tho cash paid was. ............ $4,000
1t cost the contractor only the sum Of. s537ll
For which he was to receive $l25 O92 0rs. 6grs
In the Memoria Of Finance for 1884, Is described the
msnt in tho asosl year ending in 1854. The loan was
as follews:-
Cash received. ~, 1863 ,356
In privileged paper, viz: bills of COM
missaries, military divisions. protested
drafts on tho custom houses, salaries
of members Of Congress, SC, current
on old credits, before the Independence a4ssSSs
ss,64e,o7S IA
The government received the premium exchange,
which amounted to sses27 reals grains making in
bills upon Il. martins custom houses: the mint and
the custom house Of Mexico. The government had to
$685., 1850 6, RECEIVED in cash. amounting to about
two per cent the whole nominal loaned As 60
SIS Of such paper and credits was purohssabe in
the market for $500 900"
There another loan of two millions Of dollars made
ls4O in the the Enslish house Of Montgome-
ry, Nicoll Co, as follows =
Cash.. ............ $4,000
In government paper. ............ l,060,000
100000
This paper cost the lenders about Is cent and a
ter selling out to Mexican capitalists they realised for
themselves the neat little sum of 100000.
The ruinous rates at which temporary loans have
ment regulating the interest, would render any
country insolvent they did not indicate of themselves
lie credit Previous to 1882 loans were contracted BY
paying monthly premium for money Of 8, and per
cent and With great difficulty procured at .hss. prices
matter Of boast that he could procure money at az
per cent, and even per c. mt per month"
Inc contraband trade also Is another evil which ma
terisy affects the financial prosperity. This violation
ofthe revenue laws respecting the importation of foreign
goods has been the subject Of constant animadverson
on the part of the government for than twenty
years Every annual memo,ia (treasury reporD has
commerce and to the and pointed out the
best modes for Its suppression but 1t is completely
interviewer with the manners and customs of the peo
pe as to be carried systematically any other
business however legitimate.
In reading these memories one will be astcnshed at
the wisdom and knowledge Of the science Of political
economy displayed by statesmen laws while
at home were yet only beginning to understand the
be more astonished at the stupidity Congress uni
ormy negectng to adopt any Of the views and sugges
lions, proposed and enforced With so much ability.
The tariff system Of Mexico has never been establish
ed on the principles by which 1t would be producv, Of
the most revenue to the government Az first 1t was
about 10 per cent on foreign goods which wa. siter
wards changed into prohbitory in its character
the avowed principle of encouraging domestic
features, with duties ranging fsom $50 to 200 per
cent on the prices and these on articles most
generally In common use II tho contraband trade
therefore, could sustain itself protectivs
ties Of 40 per cent surely could flourish vigor
ousy under the prohibitory of 200 The result was
might have been expected the revenues diminished
while the imports Increased the goods smuggled
equal In value to those entered in the house.
and consequently not one half Of the legal dues was
collected.
These facts, with the consequences, were constantly
sdverted to in official reports without effect and the
contraband trade continued to the great detrent OF
legitimate commerce. The people encouraged snug