The southern press. [volume] (Washington [D.C.]) 1850-1852, 1850-09-25
REMARKS OF
Hon. T. H. BAYLY, of Virginia,
In The House Of Representatives, Thursday,
September 10, 1850.

In the House Of Representatives., Thursday
September 10, 1850.
THE MEXICAN INDEMNITY. f
The House resolved itself into Committee
Of the Whole on the state Of the Union, (Mr
McLANE, Of Maryland, in the chair)
Mr.. BAYL.Y said he had heard the reports tc
which the gentleman from Ohio had referred
They had been communicated to him, and he
presumed to many other gentlemen. He hac
felt it to be his duty to inform himself fully on
this subject. He would now state the facts to
the House, in order that they might vote under.
standingly. twas true, as the gentleman from
Ohio Mr. DISNEY had stated, that the Govern
ment had made an arrangement with the houses
of Barings Of London, Rowland g. AspinwaIl OF
New York, and Corcoran & Riggs of Wash
ington, to pay this instalment of the indemnity
The gentleman from Ohio seemed to think that
in making this contract in advance of an appro-
pri .tion, the Administration had been guilty of
improperly. Now the contract was altogether
conditional one, obligatory only in the event
of the passage of bill making an appropriation
for the purpose, and of its passage ut this ses-
son He would briefly explain the necessity
there was for making an appropriation for the
purpose so long before the instalment falls due.
The only way in which the bankers who had
undertaken to make this payment can afford to
give the premium, is that they shall be allowed
time to place the n oney in Mexico gradually
and so as not to disturb the exchange Time
in transactions Of this character is of the greatest
Importance. In the proposition which was made
by Messrs Rothschild, they had limited the
period for the acceptance of their offer to the
goth of May Subsequently they extended the
period to the lst of July. AS the proposition
was not accepted by that time it was with
drawn After that the Administration made
the contract with the present parties at three
and half per cent There were several other
propositions made to the Secretary of State,
which he did not feel himself authorized to en-
terrain, as they are such as no prudent man
would have accepted.
Mr. CARTIER asked what were those pro-
positions?
Mr. BAYLY replied, the premium offered was
four per cent, or one half better than the offer
made by the present contractors. The adn-
nistration was Of opinion, however, that the ar
rapgement which had been made was the best
which could have been made, It was better than
than the Rothschilds' proposition. The propo-
siton of the Rothschilds was, that our minis
ter in Mexico should draw bills from time to
time, us they We're wanted. This would have
involved the Government in vast amount of
bills of exchange, which, as every one knew,
would have been source of great inconvenience
But in the arrangement which has been made,
the Government has nothing whatever to do
with the drawing for the money. All will fall
on the contracting parties. They win use their
own agencies aud their own credit 1t is there
fore better arrangement for the Government
All this, however, is of little moment, as the
proposition of the Rotfschilds has been with
drawn
Mr.. McCIERNAND was understood to put
n question as to tho authority by which this ar
rangement was made
Mr.. BAYLY (resuming) said, it was a condi-
tional compact, binding nobody unless an appro-
priation was made, and at this session; and the
reason for the passage of the bill at this time is
because a higher premium can be obtained the
longer the period which is allowed for the oper-
alton He could not see that there had been
any violation of law when the express condition
on which the arrangement WAS made was that
it should not be binding unless an appropriation
for the object was made, and made at the pres
ent session. There were two available offers
one was that of the Rothschids.
and the other was that by the Barings, How
land e. Aspinwall, and Corcoran a. Rigps.-
The first was supposed to be beyond The time
limited for its acceptance, and was withdrawn.
and then the contract was handed over to the
present parties.
1t has been said to me above hundred times,
that the Secretary of State has rejected the offers
of American houses, and accepted an English
house. 1t so happens that the fact is Just the
reverse Of this The offer which was withdrawn,