The southern press. [volume] (Washington [D.C.]) 1850-1852, 1850-09-25

/ becauss the government had not accepted it,
was from an exclusively Eureaean house. which
had no associstes here The house of the Bar
ings is one Of great credit. They are the BAN
kers OF our Government in London for the pay
ment Of our ministers abroad and other foreign
expenditures. The firm of Rowland Il Aspin-
wall, in New York, is we'll known MS standing
high. The house of Corcoran a. Riggs IS also
known to be strong house, and highly honor
able in its transactions. The Secretary OF State,
then, has made contract with those three hot
SEES, with an entire confidence that the payments
we are bound by treaty to make to the Mexican
Government will be made on the day designated
by the treaty, and that the honor and credit OF
our Government will be sustained.
Mr.. CARTIER was understood to ask at
what time it WAS proposed to pay this instalment
into the hands Of the contractors
| Mr. BAYLY. II would be paid. il this bill
had PASSED, from time to time as the contrac-
tors may desire.
Mr.. CARTIER was understood to ask if
the Mexican Government had not requested that
this instalment should BE- paid N some particu-
lar way!
Mr.. BAYLY said ss1Are that any
such request had been W. Heed, he was
sure that none such had de The only
two offers coming from parties with whom Mr..
Webster considered it prudent to contract, as he
had before slated, We're these Of the Rothschds,
and of Barings, Rowland g. Aspinwall, and Cor
coran a. Riggs the first had been withdrawn,
the other was accepted. In reference to this
matter he had had very frank conversation
with the Administration. If there had been
given to our Government on intimation that if
the payment of the next instament could be
anticipated, and paid before the time when it
falls due, the Mexican Government would SUBJ
NIT to a discount, it would have been hardly
prudent to have acted in accordance with it. He
did not think that it would be a safe operation
TO pay the money to Mexico in advance In the
present unsettled state Of Mexico, it was by no
means improbable that by sudden revolution
| the present Government might be overthrown
before the day when this instalment will falidue,
and if it had been paid previously, our Govern
mcnt might be subjected to the danger Of being
called on to pay it over again; or at any rate
of having some difficulty with that Republic
about it,
Mr. VINTON stated, that by the contract the
contractors would pay interest upon the advances
in addition to the premium.
Mr. CARTIER also put question, which
was not heard, relative, perhaps, to the obligation
on the part of the Government to accept the
best.offer.
Mr. BAYLY resumed, saying, in reply to what
had fallen from Mr.. CARTTER, that he did not
know that there was But If so, he thought the
Government ought not to have accepted the pro-
positions, whatever the terms were, or however
advantageous they may have seemed for the Gov
eminent. 1t would have been very discreditable
in us to shave our own paper. II would have
been discreditable to have gone into an opera
| ton of this kind with sister Government 1t
would not only have been discreditablc but ul-
safe. From what we all know from experience
of the character Of the Mexican Government, if
Il revolution We're to take place before the year
| 1851, there is very little reason to doubt that
| they would have been ready enough to take adj
vantage Of it, and would have come upon us to
demand the payment Of this instalment over
again. With such Government to deal with,
it was especially proper that our Government
! should have no transaction which would involve
any risk.
| There was another mode of making this pay
ment, which had been frequently suggested, viz
through our minister in Mexico. Mr.. Letcher
negotiated in Mexico for the payment Of the last
instalment. He had to encounter combination
of the Mexican bankers who would not give him
more than one per cent. Ii he had undertaken
TO open a brokers' shop and sold bills Of ex-
change, he would have found himself entangled
in transactions with all the bankers of London
and Mexico, which would have been productive
Of great Inconvenience and risk.
! 1t was represented at that tine, MS now, that
in the hands of the American minister, very
advantageous and profitable arrangement could
be made. Mr.. Lecher gives different account
of it in his letter to MIR. Clayton, of the 18th
July last; in that letter he says, that from the
| first moment of his arrival he devoted himself
anxiousy and constantly to arrange for the pay
ment Of the indemnity For some time the cir
cumstances were discouraging; obstacles of their
own accord spring up; other obstacles arose
from the combinations Of the bankers against him.
Their scheme was to compel him to accept of
one per cent. premium, or else the United States
would have to transport the specie from the
United States to the city of Mexico. That for
some time the associated capitalists believed
fully they had the game in their own hands and
could control him but he succeeded in arrang-
ing for part of the last instalment, at three and
half per cent, with Mr. Davidson; and of this
he says
"When the fact is taken into consideration
that the export duty on specie last year was ten
per cent, and now is only four and half, it APP
pears to me that the arrangement made Cat three
and half) is far more favorable than could
have been anticipated"
He had called on the Administration to know
at what premiums the other nstalments of this
indemnity had been negotiated 1t would be
recolected that the indemnity stipulated to be
paid to Mexico was to be made in five payments
The first in hand, and the others in annual in
stalments. The first was made by an arrange
mcnt with the house Of Earrings, by Mr. Secre-
tary Walker when our Government stipulated
to pay them the amount at Washington in
Treasury notes, Treasury notes at par. AT that
time Treasury notes were above par, so that our
Government by that arrangement got no pre-
MUM, but virtually paid one. Mr.. Walker,
however, was not blamed for this He could
do no better. The payment had to be made Mt
once; and for the reasons I have already given,
no premium was obtained 3t
The first instalment was due and paid during
Mr.. Folks administration. Barring, Brothers q
Co, were the parties employed by Mr.. Walker.
They paid the Government four and half per
cent.
The second instalment was divided How
land g. Aspinwall were the contractors for one
million and n half The United States received