The daily union. [volume] (Washington [D.C.]) 1845-1857, 1856-02-16
From the New York Journal u Commerce
THE MEXICAN INDEMNITY.

AS there has been SO much said in regard to the drafts
government for the last portion of the indemnity
promised Mexico under the treaty which ceded the
hesla valley, and many of the stories in circulation
have been absurd and contradictory have supposed
that plain statement Of the facts In the might be Of
interest to readers. The sum TO be paid to Mexico
fixed by the terms of the treaty $40 00oo oo Of
which S300o000 to be reserved by government
collateral security for the speedy completion Of salts
factory boundaryline between the two countries Mexico
needy and applied TO those capitalists who
eustomed to loan their funds for uses anti
cpaton Of tie receipts into the treasury for an
on this S300Oo0o remaining in the hands Of the United
States Such advance was obtained and the Mexican
government gave in exchange certain drafts on the treas
ury Of the United States spulang their that they
were TO be paid when the balance OF the fund payable
to Mexico. At the time these drafts were ssued an Official
notice Of their tenor given through
the Mexican minister resident at Washington, which
formal notice then understood 10 be valid gn-
ment Of much Of the fund The first loan thus obtained
for 100000 the money being advanced by the agent
Of MessrS Rowland Aspinwall This transaction took
place in December 1854 and the details made public
in the regular Official report Of the Secretary OF the NeI
can Treasury in January 1885, This followed by two
other similar loans for $4,000 10 Messr Hargous
Co. and the other Of $s5oOoO the parties who nego
ated the frat above noticed.
Had no change taken place 10 the government OF Mer.
fund when the same was payable to Mexico and nothing
further been said aboutt But in August 1885, the sd
minstraton OF Santa Anna suddenly terminated and the
new rulers found themselves with an exhausted treasury
and their income also partially hypothetical decree
was immediately passed ordering that all contracts not
fully completed should be suspended until they could be
properly investigated As the boundary Of the Msss
valley was not then formally completed and Of course the
fund hypothecaed for the payment OF the drafts above
noted was not yet payable Communication was address
ed to our government notifying Il Of the decree Of susp,n
son and asking that the payment Of the drafts should BE-
deferred in common with other outstanding elaine
Thus the matter stood until the money really became
payable by the terms Of the treaty Our government
anxious TO show proper courtesy to Mexico In the matter
especially as the drafts held by citizens Of the United
States allowed some time 20 elspse before payment and
THIS has given rise to variety Of ingenious theories 10
gard to The obligations Of the parties interested That the
Mexican did obtain The loan upon the pledge
Of hyPothecaton Of this s3oo0ooo there Is now no qae
lion, as all the papers officially signed and sealed
ME in the State Department and there Is abundant proof
that the money actually paid in silver dollars into the
Mexican treasury The only question was as to the right
OF the authorities TO make such hypothecston Just
enough doubt hung this make the hangerson and
spongers At Washington those outside harpies who watch
all who approach the treasury and make them pay tribute
IL possble greedy in their demands for black mail 10
"put The thing through whilst some Of the officials who
compose the Mexican government demanded new loan,
or some further accommodation the price Of their 6ds
ity to the engagements OF their suthor
ties Their objections have been 20 far overcome that the
two amounts last mentioned making s4oooOO have been
released and paid The validity Of the loan first made
amounting TO S5ooOOO is tbus virtually conceded and
viii probably be settled soon either BY the entire abandon
ment Of all opposition on the part Of Mexico or BY the pay
ment BY our government in accordance with the assign
ment