Daily American telegraph. [volume] (Washington [D.C.]) 1851-1852, 1852-01-12
AMERICAN TELEGRAPH.

AMERICAN TELEGRAPH.
Memorial OF Duff Green and BENJAMIN
E. Green to his ExcelIency the Presi-
dent or the United states OF America,
In relation to the Mexican Indemnity.
WASHINGTON, November, %, 1851.
TO the Hon. lhuaryi Fylzmore,
President Of the United States:
SIR: It is our purpose to petition Congress
to adopt 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 I'd paragraph of the 18th article Of the
treaty Of Guadalupe Hidalgo, it was provided
that H4
Immediately after this treaty shall have
been duly ratified by the government of the
Mexican republic, the sum of $4,000, 900
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 ST., 900, 900 shall be paid at the same
place, and in the same coin, in annual install
mens 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 $50 100000 from the day of the
ratification Of the present treaty by the Mexican
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, as it falls due, the whole interest accruing
on such instalment from the beginning shall also
be paid"
Thus, on the aOth of May, 1861, the United
States were to pay to the Mexican government
$3,54O,OOO, and on the 3Oth of May, 1852, $3,-
100000, making in the aggregate S., 100000.
The premium of exchange on New York in the
city of Mexico is from 10 to Is per centum that
u.s. drafts on New York for the amount Of the
third and fourth instalments and interest thereon
(viz: 81, ,260 ,000) would be worth in the city of
Mexico from 81, $50, 900 to So, $4,000.
Thus the bankers who, for 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 $475, 300 to $83s, 300, that being the diff,
ference between the premium of 81 per cent on
81, 900 (viz: $25o,ooO) paid to the United
States, and the premium of exchange made by such
bankers, which, at 10 per cent on 81, ,260, ,000 is
1926, 900, and at 15 per cent is 81, ,OS9,00O
twas stated on the floor of Congress, by the
chairman of the Committee of Ways and Means,
(see " Congressional Globe" lst session, 8ls'
Congress, page 1852 That the (foreign) bankers
in Mexico formed combinations to compel thu
American Minister to give them the contract t
make the payment at one per cent. premium only
or otherwise to prevent his getting any none.
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 o
four per centum. The effect Of these /" com6ina
tions' of the bankers was, that Mr.. Letcher coulo
with great difficulty get as much as 81 per centuu
for his drafts, which were worth from 10 to 1t
per centum.
Such being the combinations and operations OF
the bankers so far rs 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 stpulations foi
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 18 to "a per cent. pei
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. Supposing 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 6 per cent. interest per annum,
but would also get the benefit Of the premium of