No. 90.
Mr. Hurlbut to Mr. Fish.
Bogota, November 10, 1871. (Received December 15.)
Sir: The condition of this country appears to me to require a detailed statement from me.
During the economic year just concluded, (October 1, 1871,) the expenses have exceeded the income, not less than $1,800,000, which will-be increased by the 1st February, 1872, when Congress meets, to not less than $2,500,000.
I am informed to-day that in addition to this deficit, not less than $500,000 cash will be required to be paid on or before that day, (1st February, 1872,) for borrowed money, traveling expenses of members, and other sums indispensable to be paid in cash, as, for example, $170,000 borrowed from the Bank of Bogota at 10 per cent, interest, on short time. My informant also stated to me that he was wholly unable to say where such a sum of money or any part of it could be obtained, and could see no recourse for the government but to admit its insolvency. The consequences of such a state of things are very serious, and will almost certainly lead to revolution.
I can imagine no remedy for it, except by an act of bad faith on the part of Colombia, in repudiating their contract with the English bondholders.
Eighty-five per cent, of the customs revenue is pledged to English creditors, and unless relief is obtained by disregarding this pledge and seizing the revenue for general purposes, I do not believe that a revolution can be prevented.
You are undoubtedly aware that, by the constitution, any five States can nullify any act of Congress.
At the last session an act was passed for the promotion of internal improvements, giving among other things a guarantee of 7 per cent, interest on capital invested in certain railroads and other improvements. The States of Antioquia and Cauca have already declared this law unconstitutional and void. Antioquia at least is prepared to support her opinion by arms, having in her possession an arsenal of some 20,000 improved arms. The same States have declared the law establishing common schools unconstitutional and void.
The liberal party, now in power, and which has just elected Dr. Murrillo President for the next term, supports both these laws. The question is still further complicated by the undisguised agitation set on foot by the clerical party, whose stronghold is in Antioquia and Tolima, against the further continuance in power of the liberal leaders; and all forms of fanatical exhortations are addressed by the organs of the clergy to the ignorant masses of the people, especially on the question of education, and the seizure of the conventual property.
Mosquera, now governor of Cauca, although a liberal, is largely overned by his hostilities, and has an avowed hatred to Dr. Murillo.
[Page 142]Under all these circumstances the public order and expected progress of this country hang upon a very uncertain thread.
So thoroughly convinced of this is President Sal gar, that notwithstanding the wretched state of the public finances, he borrowed from the Bank of Bogota $100,000, (part of the $170,000 above stated,) and with that amount has purchased in the United States arms and ammunition for the possible struggle.
Any trifling event may precipitate matters; a general failure to make customary payments to Congress, to the public officers, or to the array, would undoubtedly overthrow the government. The condition is deplorable, and the Murillo administration will inherit all these difficulties.
This wretched financial position of course bears upon the just claims due as well to the United States as to private citizens who have been wronged.* *
I am, &c.,