Daily American telegraph. [volume] (Washington [D.C.]) 1851-1852, 1852-01-13
AMERICAN TELEGRAPH.
Memorial OF DUR Green and Benjamin
10. Green to his ExcelIency the Presi-
dent or the United states OF America,
In relation to the Mexican Indemnity.

dent or the United states of America,
In relation to the Mexican Indemnity.
5 WASHINGTON, November, %, 1851.
To the Hon. Millard Fillmore,
President Of the United States:
SIR: 1t is our purpose to petition Congress
to adopt a joint resolution authorizing and di-
recting the acceptance of the drafts forwarded
by the Mexican government under the contract
made with Mr.. Marks; and it becomes necessary
for us again to address you on the subject Of the
Mexican indemnity. For the better understand
ing of the case, we submit the following state
ment
BY the Cd paragraph of the 18th article of the
treaty of Guadalupe Hidalgo, it was provided
that
Immediately after this treaty shall have
been duly ratified by the government Of the
Mexican republic, the sum of $3OOO,O 600
shall be paid to the said government by that
of the United States, at the city Of Mexico,
in the gold or silver coin Of Mexico. The
remaining $l2 200, 900 shall be paid at the same
place. and in the same coin, in annual install
ments of $3 900, 900 each together with interest
on the same at the rate Of six per cent per an
mum. This interest shall begin to run upon the
whole sum of 10000, 900 from the day of the
TdtlHCauOn OI UHe present treaty ny IHc lhcAlCoH
government, and the first of the instalments
shall be paid at the expiration of one year from
the same day. Together with each annual install
ment, MS it falls due, the whole interest accruing
on such instalment from the beginning shall also
be paid"
Thus, on the Both of May, 1851, the United
States were to pay to the Mexican government
So, $40, 900, and on the 30th of May, 1852, 49,
10000, making in the aggregate S7,260,O0O.
The premium of exchange on New York in the
city of Mexico is from 10 to Is per centum; that
is, drafts on New York for the amount of the
third and fourth instalments and interest thereon
wiz: So, ,260,0 ,000) would be worth in the city of
Mexico from 81, 1886, 900 to $S,349,OO0.
Thus the bankers who, for a premium of 81 per
cent, obtained from the United States the con-
tract to pay the money in Mexico, make out of
the United States by the premium of exchange
from S415 300 to $838, 300, that being the diff
ference between the premium of 32 per cent. on
81 900 (viz: $25o,0OO) paid to the United
States and the premium of exchange made by such
bankers, which, at 10 per cent ST ,2GO, 600, is
1926, 000 and at Is per cent. is $l,099,00o
1t was stated on the floor of Congress, by the
chairman of the Committee of Ways and Means,
(see +" Congressional Globe" lst session, 3lst
Congress. page 1882 that the (foreign) bankers
in Mexico formed combinations to compel the
American Minister to give them the contract to
make the payment at one per cent. premium only,
or otherwise to prevent his getting any money
there to make the payments; so that the United
States would have to transport the specie from
the United States to Mexico, at an expense of
four per centum. The effect of these " com6ina-
tons" of the bankers was, that Mr.. Letcher could
with great difficulty get as much as 81 per centum
for his drafts, which were worth from 10 to Is
per centum
Such being the combinations and operations of
the bankers so far as the United States were
concerned, the condition of Mexico was still
worse. Her treasury was exhausted, and her ne
cessities greatly increased by the failure of the
United States to fulfil their treaty stipuatons for
the suppression of Indian depredations. To
protect the people of her northern frontier
from robbery, captivity, and the nameless
horrors of Indian warfare to which this failure of
the United States left them exposed, her govern
ment was compelled to borrow at ruinous rates
of interest. She had no other fund.- on the credit
of which she could borrow, save this indemnity;
and no one would lend on the credit of that fund,
save the bankers employed by the United States
to pay it, and who, having the money placed in
their own hands by the United States govern
ment, could pay themselves both principal and
usurious interest. As they combined against the
American Minister to prevent him from selling
his drafts for fair premium so, by combining
against the credit of the Mexican government,
they forced it to borrow from them at the exor-
bitant interest of from lS to "a per cent. per
annum.
In the spring of 1850, Mr.. l. D. Marks, of Lou
isiana returned from Mexico, and informed US of
the state of things as above set forth and ex-
planned We consulted together, and at once
saw that, by very simple and perfectly safe
financial arrangement, the bankers and their
combinations could be set at defiance, and large
sums saved to both governments This was sim
ply that the United States government should
accept the drafts Of the Mexican government for
the amount of the Sd and 4th instalments On
those drafts, thus accepted the Mexican govern
ment could readily get the money at six per cent,
instead of having to pay twenty-four per cent
per annum. Supposng the drafts to be accepted,
payable at the treasury of the United States, in
stead of in Mexico. the Mexican government
would not only get the money for them in the
city of Mexico at Gper cent. interest per annum,
but would also get the benefit of the premium Of
exchange, viz: from 10 to Is per cent, amount
ing to from $726, 900 to 81, ,0S9,000. As an in
ducement for the United States government
to consent to this mode Of payment, and there