Mr. Otterbourg to Mr, Seward

No. 9.]

Sir: I have to announce the evacuation of this capital on the 5th instant by the French forces under command of Marshal Bazaine in person, which I communicated on the same day by telegraph to our consul at Vera Cruz, authorizing him to report the fact officially to the department. This event was precipitated by an entire rupture of all relations some five days previous between Prince Maximilian and his excellency. The day preceding his departure the marshal published a farewell address, enclosure No. 1, to the inhabitants of Mexico, which may be regarded both as an apology for what had been done as well as for what should have been done under more propitious circumstances.

With a design of observing events, and of being in a position to act as the condition of affairs might require, the French forces encamped at but a short distance from the capital on the day of the evacuation. Had the imperialists employed, as it was reported to be their intention, unnecessarily severe measures to suppress a movement rumored to be initiated by the liberals in the city, the marshal would have interposed his forces; while if the liberals succeeded in mastering the capital, his excellency would be near by, and prepared to enter into negotiations with the successful party.

General Marquez, the chief of the second military division, took immediate command of the city, of which in an address and proclamation, enclosures Nos. 2 and 3, he advised the population on the morning of the 6th. Inasmuch as by this proclamation General Marquez places the capital under martial law, and assumes irresponsible powers of judgment and exercise of will, I determined to address him a note, of which enclosure No. 4 is a copy. His reply, enclosure No. 5, refers my communication to the minister of foreign affairs for a decision of the points involved in the inquiries directed to the commander-in-chief. The proclamation has awakened much excitement and disquietude among the representatives of the nations who have recognized the empire, and induced a meeting of the diplomatic corps for a discussion of the measures proper to be taken in order to meet the dangers threatened by a state of affairs so suddenly brought into existence. Acting with entire independence of all other foreign agents, from the relative position of the United States and the authorities here, I have found it necessary to recur to different measures which might secure the interests of American citizens, and the honor of the flag that covers them.

The finance minister, from the unsatisfactory results of the forced loan imposed upon capitalists, as communicated to the department in a former despatch, has appealed to a general contribution of one per cent, upon property and values of every kind, enclosure No. 6. The decree authorizing this contribution, though unquestionably designed to obtain resources for the maintenance of civil war, gives but little room for direct protest against its provisions. I have, while awaiting the result of the protest from the foreign ministers against the exaction of this new forced loan, made by a skilful mode of imposition, applicable alike to foreigners and natives, desired citizens of the United States, who have [Page 357] sought advice upon the subject at this office, to return on the 11th instant, the day named for the collection of the first instalment, when I could probably give a decisive opinion as to the most effective course to be adopted. Contrary to all expectations Maximilian still remains in the palace, and there exists the same uncertainty as to his continuance or departure as prevailed previous to the retirement of the French army from the capital. Our reports announce the French to have reached San Martin, 20 leagues from Mexico, on the high road to Puebla, in prosecution of their march towards the port of Vera Cruz.

Official information was last night received of the rumors of Miramon’s complete rout at San Jacinto, a point between Zacatecas and Aguas Calientes, with the loss of his entire army, artillery and military chest. He himself escaped to Queretaro, accompanied by several officers, and was joined at the same city by General Severo Castillo, now in command of Mejia’s division, who had fallen back with his forces from Leon on learning the defeat of his chief.

President Juarez is believed to be at San Luis Potosi with the officers of his government.

The imperial General Tabera has suffered a severe disaster while returning from Toluca, whither he had gone with a column of 1,000 men to cover the withdrawal of the garrison into Mexico. The blow was inflicted by General Velez, an officer who a short time ago pronounced in favor of Ortega against Juarez and the empire.

The most accurate information gives the number of foreign soldiers at present in the service of the empire at 1,500 men of all arms. These men, rejecting the offer of a return to Europe extended by the French government through Marshal Bazaine, have remained at their own risk and peril in this country.

Business enterprise and commercial activity, which for months past have been declining, are now completely paralyzed in consequence of the condition of the political situation and the heavy contribution.

I have the honor to be, very respectfully, your obedient servant,

MARCUS OTTERBOURG, U. S. Consul in charge of United States Legation.

Hon. William H. Seward, Secretary of State, Washington, D. C.

[Translation.]

Expeditionary Corps of Mexico.

Mexicans: Within a few days the French troops will leave Mexico.

During the four years that they have resided in your beautiful capital, they have had none but motives to congratulate themselves upon the sympathetic intercourse which has been established between them and its inhabitants.

It is, therefore, in the name of the French army under his command, as also from the impression of personal sentiments, that the marshal of France, commander-in-chief, takes leave of you.

I address you, therefore, our desires in common for the felicity of the generous Mexican nation.

All our efforts have aspired to establish internal peace. Be assured, and I declare it at the moment of leaving you, that our mission has never had other object, and that it has never entered within the intention of France to impose upon you any form whatever of government contrary to your sentiments.

MARSHAL BAZAINE.

[Translation.]

The General-in-Chief of the 2d army corps to the inhabitants of this capital:

Compatriots: I have just taken charge of this beautiful city, and as you know me, I believe it to be unnecessary to say anything. You have proof that I know how to sacrifice myself for what is confided to me, and I will perish sooner than permit the slightest disorder. [Page 358] Consequently, I have taken all my precautions for your security. I have the armed force necessary, and you for yourselves are about to see in what manner this plaza is garrisoned. I hope there may be no restless character who shall entertain the mad pretence of disturbing the peace, that I may not find myself under the sad necessity of applying the law, to which I am firmly resolved.

LEONARDO MARQUEZ.

[Translation.]

Leonardo Marquez, General of Division and Chief of the Second Army Corps.

Be it known, although there is no motive actually for alarm in the capital, these headquarters having the obligation to foresee every eventuality, however remote, in the use of the faculties which the ordinance concedes, has thought proper to decree:

Article 1. The great bell of the cathedral, which shall be sounded for the space of ten minutes, will give the signal of alarm for the city.

Article 2. On the sounding of said alarm all inhabitants of the city will retire to their dwellings and remain therein, with closed doors, and not go out again, or appear at the balconies, windows, or upon the azoteas (flat roofs) until the alarm shall cease, which will be announced by the ringing, for an equal length of time, of the large bell of the cathedral.

Article 3. Every individual, be his rank what it may, who, in any manner, shall infringe the foregoing article, will be punished by the government directly, according to the circumstances of his fault.

Article 4. Consequently, the armed force, which shall be conveniently posted for the security of the population, will receive orders to imprison the culpable, and to employ force should it be necessary.

Article 5. Equally, those shall be punished or consigned to the tribunal to which it corresponds, who arm themselves without the knowledge of these headquarters; who discharge or fire arms, or cause alarm by means of any detonation; who make any demonstration of hostility; who use subversive expressions; who utter aloud alarming or seditious cries, or who, in any manner, excite the slightest disorder.

Article 6. Immediately as any fire-arm is discharged, or any detonation heard, the armed force will present itself at the house where the shot may have proceeded, or the detonation been produced; the door will be opened in the ordinary way, or by force; the culpable party will be apprehended, and if he be not found all the inmates of the dwelling will be punished in conformity with article 3 of this edict.

Article 7. From the moment that it is annouuced to the city that the alarm has ceased, all the inhabitants are at liberty to open their doors, go out into the streets, and engage in their occupations, with the single circumstance of not committing any disturbance, because, in case of so doing, it will be repressed as herein provided.


The General-in-chief, L. MARQUEZ.

Mr. Otterbourg to General Marquez

The consul of the United States of America finds himself, in consequence of the proclamation of his excellency General Leonardo Marquez, dated yesterday, 5th instant, under the obligation imposed by his position as guardian of the American flag and the interests which it represents under the guarantees of treaties, to make respectfully the following inquiries of the general-in-chief in command of this capital:

Whether the third article of his excellency’s proclamation includes legations, consulates, and other foreign agents; whether the person in charge of the United States legation and archives should be expected to open the doors of the house where that property is kept to any party, armed or unarmed, who might demand admittance thereto; and whether, in view of the second article of the proclamation already quoted, American citizens, without any interference in the political questions of Mexico, occupied solely with their daily pursuits, shall have free access to the consulate of the United States.

Upon the reply to these inquiries, which only as a duty the undersigned addresses to his excellency the general-in-chief, depends the answer to the many peaceful citizens of the United States, who, under the existing circumstances, have applied at this consulate, soliciting guidance for conduct in which may be involved their dearest interests.

The undersigned has the honor to assure his excellency the general-in-chief of his distinguished consideration.

MARCUS OTTERBOURG, U. S. Consul in charge of United States Legation.

His Excellency General Leonardo Marquez, Commanding Second Corps.

[Page 359]
[Translation.]

General Marquez to Mr. Otterbourg

SECOND ARMY CORPS—GENERAL-IN-CHIEF—No. 1074.

The general-in-chief of the second army corps has the honor to acknowledge to the consul in charge of the legation of the United States the receipt of his note of this date, and to state that as it contains matters to be decided by the minister of foreign affairs, the original has already been referred to that department.

I avail myself of this opportunity to present to the consul in charge of the legation of the United States the assurance of my high consideration.

L. MARQUEZ, General-in-Chief of the Second Corps of the Army.

Mr. Marcus Otterbourg, Consul in charge of the Legation of the United States of America.

[From the Diario del Imperio, February 4, 1867.—Translation.]

Sire: In the report which I had the honor to present to your majesty upon the resources on which you can rely to cover the public expenses, I made known the necessity of an extraordinary expedient for the formation of a fund wherewith to equalize, as far as practicable, the income and disbursements, while the laws for contributions are in progress of execution, and produce the result which I expect from them; since, for the moment, the want is seriously felt of the products of the maritime custom-house of Vera Cruz, which to-day cannot be disposed of. I indicate to your majesty the extraordinary recourse of a forced loan, not because this odious means of providing resources forms a part of my system, but because, after having endeavored to contract a small voluntary loan, to be promptly returned under sufficient guarantee, it was brought to my notice, in the name of several proprietors, that the exaction of a loan, with the character of a forced loan, would be well received, and would be collected without contradiction. Under this impression I adopted the means, although with repugnance, consigning at once the products of a branch of the treasury to the reimbursement of the contractors of the loan. But if, in fact, some few of the persons assessed have commenced to pay up the amounts assigned them, the generality resist and compel the government to adopt coercive means in order that its provisions may not prove illusory.

With the energy which the want of resources requires, the exaction of the loan will be able to be carried into effect, and the ministry in my charge would thus notify the executors of the measure, were there not another way of obtaining the end proposed with more certainty, greater generality in the imposition, and the absence of even the slightest motive of any well-founded ground of complaint. Inasmuch as the loan cannot be extended to a great number of persons, nor be partitioned in strict proportion, from the want of exact data, the end proposed can be obtained without their inconvenience by the products of an extraordinary contribution, which, falling upon the mass of contributors, will lessen the weight of the exaction, and its quotas be graduated from precise data already existing.

Frequently in Mexico recourse has been had to the imposition of a contribution equivalent to one fixed upon capital invested in real estate or in business; tax-payers were already habituated to it, and have always received it with less repugnance than, the loans; and although the basis is not in conformity with any rentistic system, and never would be, on account of the repetition of the impost, as has been done in former years, at present, when the ordinary contributions have diminished considerably, when they were at the highest rate, I resolve to propose to your majesty to decree its imposition, for this sole occasion, in preference to the loan, and calculating that even with its imposition the tax-payers will pay on real property less than in the past year.

As to those who pay upon industrial and mercantile establishments, they will be taxed more than the preceding year, because the license duty was extremely low; yet they will contribute extraordinarily less than the proprietors of real estate, in proportion to their respective capitals, in view of the fact that capital employed in mercantile pursuits incurs the risk of being lost or diminished, while that invested in real estate can only be temporarily unproductive, without diminution; and in respect to industrial establishments, they will pay less than the mercantile branches, because, besides the previous considerations, their profits proceed more from industry of man than from the amount of capital invested.

The annexed project of a decree, which I have the honor to submit to the enlightened examination and sovereign approbation of your majesty, unites brevity in the proceedings, which the circumstances demand, with the greatest possible equality in the apportionment, [Page 360] as flowing from the same bases which are actually serving for the collection of the ordinary contributions, and, as is just, contains the provision that the amount paid to date on account of the loan, by the persons among whom it was disbursed, will be credited to the one per cent. extraordinary.

Should the project meet the high approbation of your majesty, you will deign to sign the decree, or determine what may be your sovereign pleasure.

Sire, the under secretary of the treasury, charged with the ministry,

JOSÉ MARIA CAMPAS.

The Emperor.

Maximillian, Emperor of Mexico.

In virtue of what our under secretary of the treasury in charge of the despatch has manifested, and after hearing our council of ministers, we decree:

Article 1. To meet the estimates of the public administration during the present year, every capital of one thousand dollars and upwards, whether employed or to be employed in any branch of industry, shall pay a contribution of one per cent.

Art. 2. This contribution shall be paid in two equal instalments—the first within the first six days, exclusive of feast days, reaching from the day following the publication of this law at any place, and the second fifteen days after the completion of the first-named term, within the six following days.

Art. 3. This contribution is due upon and is to be collected where the property is situated; but in the capital of Mexico and points of the valley it shall be collected from the tax-payers who reside therein, although they may hold their property in other departments; and the obligation which this loan imposes upon the owners of capital shall, in their cases, be discharged by their managers, whether under the name of administrators or on account of infirmity, absence, minority, legal interdiction, sequestration, partnership, or usufruct of the owner.

Art. 4. This contribution, which is imposed once for all, shall be exacted in the following manner: That assessed upon rural and urban property shall be collected upon the value at which these have been appraised to the end of December of the last year, just passed, for the payment of the contribution on real estate in the last four months ending with the said December. For capital employed in mercantile pursuits the collection shall be made by triplicating the quota which every person ought to have paid in one year for a simple contribution, and not double, according to the last qualifications under which the payments of the last four months of the year 1866 were made. The branches of business opened the present year will be assessed by analogy with others of equal kind, should they not be already classified. An amount equal to one year’s payment, according to the existing assessment, shall be collected upon industrial establishments. For mining concerns and others difficult to be classified, the collection shall be made upon the manifestation which the owners or their representatives shall have given in writing within the term fixed in article two, in the intelligence that if, after payment, it shall result that the truth has been concealed in the manifestation, either by diminishing the amount of capital or making it appear less by any other method, the facts shall be exposed at the collectors’ offices, and double the amount, or two per cent., shall be charged to those who have presented false manifestations.

Art. 5. There are no exceptions to the payment of this contribution, not even in favor of those mercantile or industrial companies which by any right whatever may have been excepted in former cases.

Art. 6. Proprietors of rural or urban estates upon which mortgages exist are allowed to deduct from the amount one per cent, of the amount of the total value of his payments without injury to the especial contracts which they may have entered into.

Art. 7. In this capital the payment of the contribution to which the present law refers shall be made in the general direction of rents, to which effect an especial section is established, charged exclusively with the collection and delivery of the products into the general treasury.

Art. 8. In towns and places beyond the capital the collection of this impost will be taken in the offices of direct contributions.

Art. 9. The collectors of this contribution and their agents will employ the economico-coactive authority to make effective the collection within the term indicated, and will be assisted by the public authorities in all cases where force is required.

Art. 10. Those who shall have paid any sums of money under the last forced loan imposed by the government, with guarantee of a branch of the public treasury for its return, shall be paid from the funds of the present contribution, crediting them in the amount they have paid or returning them what may appear to their credit, according to what corresponds to each individual.

Art. 11. All those who, from any motive soever, shall delay or neglect to present their returns during the days named as the first term, shall suffer the penalty of paying double the [Page 361] amount of this impost on the qualification which the respective officers shall make, and without a right to future reclamation.

Art. 12. Our ministry of the treasury is charged with the execution of this decree.

MAXIMILIAN.


By the emperor:
JOSÉ MARIANO CAMPOS, Under Secretary of the Treasury in charge of the Despatch.