No. 249.
Mr. Adee
to Mr. Fish.
Madrid, October 1, 1876. (Received October 17.)
Sir: * * * The Cuban loan was awarded yesterday, with much solemnity, to Messrs. Lopez, Calvo, Vinent, and Cabezas, the signers of the previously-reported provisional contract of August 5. Some two hundred persons witnessed the proceedings.
Only two bids were put in, viz, that above mentioned and that of the Marques de Campo.
Mr. Llaseras, by letter from Paris, withdraw his bid, by reason of inability to make the required deposit of three-quarters of a million of dollars.
The scheme of the Marques de Campo offered $15,000,000 for ten years at 10 per cent., to be advanced to the government in four installments at intervals of two months each, on the guarantee of the Cuban customs: one million to be advanced forthwith on account and credit opened for another million if needed; the loan to be repaid within ten years by [Page 461] retaining from the customs receipts a sum sufficient to pay principal and interest due in monthly parts; guarantee of the Cortes required before December 31, or else the contract to be rescinded with indemnification.
The Bank of Havana put in a protest against any pledge of the customs of Cuba in prejudice of its own claims secured by the same guarantee. This protest was not admitted.
After public discussion of the plans presented, Mr. Calvo raised his offer for an immediate advance, without interest, to $1,500,000, half to be paid in Havana.
The ministers were then left alone to deliberate, which they did till 8 o’clock, when public announcement was made that they had unanimously decided in favor of Mr. Calvo’s offer, which was accordingly formally accepted.
I have, &c.,