Papers Relating to Foreign Affairs, Accompanying the Annual Message of the President to the Second Session of the Fortieth Congress

Mr. Otterbourg to Mr. Seward

No. 21.]

Consulate of the United States, Mexico, April 7, 1867.

Sir: Lieutenant General Marquez, exercising full powers with which he had been invested by Maximilian, proceeded on the 28th ultimo in the discharge of a mission intrusted to him at Queretaro, by ordering a forced loan of $850,000 forthwith to be levied upon the city of Mexico. This, assessed immediately on heavier capitalists, makes its effects felt generally by commerce already exhausted from repeated taxation, and has morally weakened the cause it was levied to support. The newly appointed minister of finance, General Vidaurie, who accompanied Lieutenant General Marquez on his return from Queretaro, likewise issued a decree, enclosure No. 1, which appropriates to the state the amount of one entire month’s rent to be received by the owners of tenements, besides an additional charge of the half of one month’s rent to be collected from the tenant. An attempt to justify measures so severe and more than onerous to a community impoverished by war and relentless taxation, would appear in a letter from Prince Maximilian 1o the Minister Aguirre, enclosure No. 2, from which the inference is open that Maximilian is forced to act under the necessity of an exceptional situation imposed upon him by President Juarez’s rejection of every offer of conciliation. In consequence of these rigorous courses, General Marquez was enabled to set out on the 30th of March, as was at that time supposed, for the relief of Queretaro, with full 4,000 men, and a convoy of $270,000.

Whether such was indeed his object, or a preliminary attack upon General Diaz, then besieging Puebla, his combinations have been frustrated.

The unexpected fall of Puebla on the 3d instant, enclosure No 3, left General Diaz free to move against Marquez, whose retreat upon Mexico has been intercepted by the opening of the dikes of the lake San Cristobal, and the accumulation of scattered forces of the constitutional party in his rear. A large detachment of troops, disengaged by the arrival of re-enforcements from the frontier, has been hurried off from the lines before Queretaro, to co-operate for the destruction of Lieutenant General Marquez, now tacitly accepted as the only man who can for any time sustain the contest on the side of the conservative party.

Enclosure No. 4 is a plan of Queretaro, upon which are traced the positions of the besiegers, whose operations, stimulated by the capture of Puebla and their possession of the entire southern border of the city, promise an early and successful period to the siege.

The European representatives held a meeting to deliberate as to their course of action in regard to the violent forced loans levied, chiefly on foreigners, and the latest contribution upon rental proceeds. Though there was, as I have been informed, a strong expression of indignation, and threats even were remotely indulged in, no step was taken nor protest made to counteract the execution of a loan and decree, for the discussion of which the diplomatic corps had been called together. In explanation of so singular an exception to the recognized and customary usage on like occasions in Mexico, it has been intimated to me that a collective note upon Mexican affairs, to be remitted to their respective governments, is meditated by the foreign representatives. The remark struck me so forcibly, that I have deemed it not unnecessary to communicate to the department an indication of a design, which, carried into effect, may result in new complications, to be followed by the most important consequences.

I have to make it a subject of regret that the lax practice heretofore pursued in Mexico exposes me to the displeasure of foreigners, whom, in obedience to the Constitution and instructions from the department, I decline to recognize as citizens of the United States on the mere evidence of papers of intention declared years ago, by parties who have never thought it of sufficient interest to reside in the United States during the term required by law for the perfection of their rights.

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.]

On hearing our ministry of hacienda, we decree:

Article 1. All owners of city property in the empire shall contribute once for all, with the character of an additional impost towards the wants of the treasury, the amount of one month’s rent as paid by their tenants, without exception of those who shall have received in advance the rent of one or more months.

Art. 2. Rural estates in the empire shall likewise contribute once for all, and with the same character, an amount equal in value to one-third of the contribution of 6 per cent. decreed December 3, 1866.

Art. 3. Tenants of all urban property throughout the empire shall likewise contribute, in the same manner as proprietors, one-half of a month’s rent. In this article are comprised those who from any cause whatsoever occupy dwellings free of rent, and those who by virtue of offices live in national edifices.

Art. 4. Proprietors occupying their own houses, either entirely or in part, shall pay a contribution of one and a half month’s rent, according as they may have been or shall be assessed for the payment of the 6 per cent, contribution decreed in December, 1866, for the portion they inhabit.

Art. 5. Proprietors who owe amounts on their properties shall deduct from the payment to the holders of their obligations one month’s interest thereon without prejudice to the special contract between the parties.

Art. 6. Contributors shall pay their quotas at the offices of direct contributions of their respective precincts in four instalments, to be reckoned from the 1st to the 15th of April next; from the 15th to the 30th of April; from the 1st to the 15th of May, and from this last date to the 30th of the same month, in the capital of the empire; and in the other towns and villages, each term shall consist of fifteen days, reckoning from that following the date of the publication of this decree, so that the entire collection shall be completed in the term of 60 days.

Art. 7. Should these terms have expired before the contributors shall have paid in the full amount of their several quotas, they shall incur the penalty of a double impost, and the collectors shall remit without delay to the prefects and sub-prefects a list of the debtors in order that these effect payment upon their responsibility within the precise term of three days, or the collectors issue writs of execution with the costs annexed.

Art. 8. A discount of 25 per cent. on the quota of their contributions shall be made in favor of those who complete within the first term the payment of their four instalments corresponding to the entire term.

Art. 9. The same data and bases shall be adopted for the exaction of the present imposts as are employed for the collection of the contribution of 6 per cent. upon the products of tenements, &c.

Art. 10. There are excepted from the payment of this contribution: First, tenants who pay a rent of less than ten dollars per month. Second, capital upon which the nation holds a mortgage. Third, capital destined for the dowries of nuns. Fourth, capital, the interest of which is paid on account of institutions of beneficence or of public instruction, whenever the last are sustained at the expense of the public funds; consequently, the collectors, on proof in accordance with pre-existing laws, shall discount to the owners of the tenements one month’s interest upon such capital, but exact the contribution on the remainder of the products of the property.

Art. 11. The depositary or the recipient of the rents, be he who he may, must, without a judicial order, pay the quota upon tenements that are in litigation or embargoes: in their defect the tenant or the person in possession with any title whatsoever to the property, without prejudice to his right of action against the party who may appear to be the owner or lawful proprietor.

Art. 12. The general direction of rents shall establish regulations for the collection of this contribution and pay the expenses of the same.

Art. 13. Our minister of hacienda is charged with the execution of this decree.

Given in Mexico, March 30, 1867.

By the emperor, and in absence of the lieutenant general of the empire.

SANTIAGO VIDAURRI, Minister of Hacienda and President of the Ministry

[Translation.]

Queretaro, March 2, 1867.

My Dear Minister Aguirre: As my departure for Queretaro when I put myself at the head of the newly formed army might be falsely interpreted as well in the country by malevolent persons as abroad, through ignorance due to the many calumnies which our enemies disseminate with activity respecting the conduct of our government, I believe it necessary to make a few observations which might serve as explanation and guide in the present difficult moments.

The programme traced by me in Orizava after having heard the frank and loyal expressions of the councils of state, has not changed in the slightest degree. The idea of a national congress ever dominates with me as the sole and only solution which can form a durable future and a basis to bring together the parties that cause the misfortune of our unfortunate country.

I emitted the idea of the congress, which already on my arrival in the country I entertained, so soon as I bad the assurance that the repiesentatives of the nation could meet free from foreign influences.

While the French dominated the heart of the country there was no possibility of thinking on a congress with freedom of deliberation. My visit to Orizava quickened the march of the troops of the intervention, and so arrived the day when a constituent congress could be openly talked of. That it was not possible before to take such a step was demonstrated in the strong opposition which the departing French authorities made to the idea emitted.

The congress elected by the nation, a true expression of the majority, and with the accumulated sum of power and liberty is the only remedy capable of concluding the civil war and of staunching the sad flow of blood. I, sovereign and chief, called by the nation, submitted again with pleasure to the expressions of its will, governed by the most ardent desire of thus concluding promptly the desolating contest. I did more; I addressed myself personally or through trusty and loyal agents to the several chiefs, who say they fight in the name of liberty and of the principles of progress in order that they should submit, as I, to the legitimate vote of the national majority. What was the result of these negotiations? That men who invoke progress did not wish or could not subject themselves to such a trial, and replied by the shooting of loyal and distinguished citizens. Rejecting the fraternal hand which sought peace among brothers, or rather blind partisans, they wished to dominate exclusively with the sword in hand.

Where, then, is the national will? On which part is there the desire of true liberty? The sole apology for them is their own proper blindness, so the sad events which under such a banner are enacted and cry aloud to heaven, manifest it. On them, then, we cannot reckon, and we have no other duty than to act with every energy to restore liberty as quickly as possible to the people, that they may be able to express freely and frankly their will.

This is the reason why I myself marched to this city in all haste, seeking by all possible means to restore to our unhappy territory peace and order and to save, a second time, the country from noxious foreign influences. In the east the bayonets of intervention already appear. It is then necessary to arrive at the desired moment, that other armed influences, direct or indirect, may not attempt our independence and the integrity of our native land. We are at the supreme hour on witnessing that a trade is driven with our soil. It is for that very reason necessary to seek, by every remedy, a period to this critical situation, and to free Mexico from every oppression, come it from what quarter it may. Lastly, a national congress will determine upon the destinies of Mexico, as far as her institutions and her form of government, and if this reunion should not take place because we who strive for it succumb the contest, the judgment of the country would always concede us the right; for it would say that we have been the real defenders of her liberty; that we never sold the territory of the nation; that we strove to save her from the double oppression of an intervention, and that in good faith we offered the means of making the national will triumph.

Receive the assurance of my benevolence, with which I am your most affectionate,

MAXIMILIAN.

[Extract.]

Mr. Jacot to Mr. Otterbourg

Consular Agency of the United States of America, Puebla, April 5, 1867.

Sir: The siege is happily over. The defenders of the city did their best and really fought well, but their moral courage being lost they were overpowered by the numbers.

The liberal army has behaved admirably. They attacked the city at fourteen different points and took them all, and yesterday the forts were given up.

With a few exceptions, unavoidable in such cases, everything went well. The greatest order prevails now in the city. Rafael Garcia is governor of the state, and all the old clerks are under his orders. I mean all the clerks that served the liberal government when the French came in the city.

Very respectfully, sir, your most obedient servant,

A. JACOT, Consular Agent of the United States of America.

M. Otterbourg, Esq., United States Consul, Mexico.