We have repeatedly wished to retire, but no one has been found to take our places in whom the British public and bondholders have confidence, and they have from time to time begged us to remain, which we have done, from an unwillingness to abandon our post during times of difficulty, when and where such large British interests are at stake; the more so as we know them to be a most respectable body, many of them whose fathers, husbands, and brothers embarked their all in these funds in 1825 to aid the Mexican Government and people to achieve their independence, to which the British Government of that day lent their open countenance and avowed support. Your Lordship and your Lordship's predecessors well know the difficulties with which the creditors of the South American States have to contend. But it is very gratifying to consider that Chile, Peru, and Buenos Ayres have acknowledged their national debts, and have resumed and now continue to pay their dividends as regularly and faithfully as any of the great States of Europe. This has been mainly accomplished through the good offices of your Lordship's predecessors at the Foreign Office of England, and her representatives abroad under its direction. Mexico, though the wealthiest of the great States of South America, has been the last to meet her public engagements, though in order to enable her more readily to do so her English bondholders had the generosity to consent to take 3 per cent. instead of 5 per cent. interest, but under a solemn promise that the reduced dividend should be regularly paid. I need not remind your Lordship of their faithless conduct for some years past, and of the ill-usage experienced by British subjects in this matter as well as in many others. But it remained for the present Government of Mexico to perpetrate the most unheard-of outrage that, perhaps, ever has been commited in open day upon the property of British subjects, and in the presence of the British Consul, and, regardless of locks and seals by which it was secured and stamped by our English Minister at his residence in Mexico, and handed over on his temporary retirement from it to the protection of our British Consul, whose power was set at naught and protest unheeded and held as worthless. It is not for me to presume to say what course your Lordship may in your wisdom think proper to take to recover this property, but as a body of ill-used Englishmen we feel confident that we shall not seek in vain at your Lordship's hands for immediate redress, through Her Majesty's Government, from the Government of Mexico, and instant restitution of that of which we have been so scandalously robbed. Our Vice-Chairman, Mr. McGarel, will also have the honour of addressing your Lordship with a fuller statement than I have the means at hand of now making. I have, &c. Sir, Inclosure 6 in No. 10. Mr. Hammond to Mr. Robertson. Foreign Office, December 21, 1860. I AM directed by Lord J. Russell to acknowledge the receipt of your letter of the 15th instant respecting the recent robbery by the Mexican authorities of the funds belonging to the bondholders which were deposited in the city of Mexico, and I am to state to you in reply that Her Majesty's Government will take such measures as shall appear to them best calculated to obtain redress. No. 11. Mr. Mathew to Lord J. Russell.-(Received February 1, 1861.) (Extract.) Jalapa, December 25, 1860. I HAVE the honour to acknowledge your Lordship's despatch of the 11th of October, with respect to the suspension of payments of interest to the holders of the Convention and Mexican Loan Bonds. I have the honour to inclose a copy and translation of the terms agreed upon by Captain Aldham, by which payments are proposed to be resumed on the 1st January, with 10 per cent. extra from the 1st February to meet the arrears accruing from this suspension. No. 12. My Lord, Mr. Mathew to Lord J. Russell.-(Received February 1, 1861.) Jalapa, December 25, 1860. I REGRET extremely to have to state, with reference to your Lordship's despatch of the 31st October, that the well-meant act of General Degollado, in restoring to Mr. Consul Glennie the sum of 400,000 dollars (the supposed amount of British property in the conducta which that hitherto respectable officer had, with deplorable weakness, been led, by those around him, to seize), has been rendered of null effect by a series of circumstances of the most disagreeable nature. I had the honour of transmitting to your Lordship General Degollado's letter, placing that amount at my disposal, and I beg now to transmit a copy of my reply, as well as of the instructions I forwarded at the same time to Mr. Consul Glennie. In consequence of the permission thus sent him, Mr. Glennie conveyed the money in safety, after a most arduous and dangerous journey, to Tampico, having, for greater security, changed it from the sacks in which it had been handed over, by the officers appointed by General Degollado, into new ones, marked "Legacion de Su Majestad Británica;" the old sacks having been, as I am since informed, preserved, with the marks untouched, at Her Majesty's Consulate at San Luis Potosi. Meanwhile, reclamations had been addressed to me, by Señor Pacheco, Her Catholic Majesty's Ambassador, and by the other Ministers, on the ground that among the sacks so restored were said to be some bearing the marks of Spanish, and other foreigners, and which should, therefore, it was alleged, be still deemed their property. The money, however, had long passed from their hands by the act of the Representative of a Government who avowed their responsibility: so far from being the losers by the restoration to British subjects of their amount of loss, other foreigners were the gainers in the diminution in the sum to be claimed from the Constitutional Government, and it is notorious that, in all "conductas" from the interior, the marks on the sacks (generally, indeed, effaced by the journey on mules) are never attended to, but, as each sack holds the same amount (2,500 dollars), the number of sacks to which each person is entitled are handed at the port of embarkation to him. I could not, therefore, concur in the legal right of others; but fully entering into the peculiar features of the case, and thinking it of primary importance that a good feeling should exist among all foreigners in their commercial undertakings in the present state of Mexico, I took upon myself to agree with Señor Pacheco on the restitution to all foreigners of any sacks proved to have contained moneys bond fide their property; and he dispatched the Acting Spanish Consul-General to Tampico to carry our arrangement into effect. I received, however, the unexpected intelligence that the money had *See "Agreements entered into with the Constitutional Authorities at Vera Cruz, by Captain Dunlop, R.N., and Captain Aldham, R.N." (presented to Parliament with this Correspondence), No. 6. been seized by Governor Garza, at the entrance of Tampico, on the 2nd of November, and had been forcibly deposited in the Mexican Custom-house, on the requisition, avowedly, of M. de St. Charles, in his capacity as Acting Consul of France. This person appears to have grounded the demand which led Governor Garza to the commission of this outrage on orders issued by the Constitutional Government, and communicated to the Consul of France at Vera Cruz (in a correspondence of which I beg to inclose the published copies), instructing General Degollado to restore the money of the conducta, or, if that were impossible, to return what might remain in equal ratio to the sufferers. These orders, however, did not reach General Degollado until after a division of the spoils, and after the restitution to Mr. Glennie; and as soon as the Vera Cruz Government became aware of the fact, they communicated to Governor Garza, by the despatch of which I inclose a copy, the withdrawal of their previous order of distribution. General Garza, therefore, intimated, on the 5th of November, to Mr. Consul Glennie his willingness to restore to his charge the money he had seized on the 2nd; but upon Mr. Glennie's demanding it at the Custom-house, he was informed it was retained by an order just received from the Federal Judge of the district, at the suit of the Acting Consul of France and on the 13th instant, under a decree of this Judge, of which a copy and translation are annexed, the money was handed over to three merchants of Tampico for distribution among all parties interested in the original conducta, less, I am informed, by a considerable sum paid as "duties" to Governor Garza and for the legal costs. I beg leave to call your Lordship's attention to the inclosed copy of a letter I addressed on the subject to the Comte de la Londe, before I was aware of this last act, to which, owing probably to the arrival of M. de Saligny, as well as to the difficulty of communication, I have as yet received no answer. There can be no question of the impropriety of the conduct of Governor Garza in taking possession of money marked as belonging to Her Majesty's Legation, and under the care of Her Majesty's Consul; nor can I admit the jurisdiction of a Federal Judge in a case where the Federal Government, had withdrawn its commands from want of jurisdiction. I must equally object to his sentence, which he mainly rests upon the incorrect statement. that the original marks had been effaced by Mr. Consul Glennie. It seemed, however, on consideration, that we had nothing to do with these legal proceedings, consequent upon the seizure of the money by Governor Garza, and that the proper course was to demand redress and repayment from the Constitutional Government at Vera Cruz for the original act of General Degollado, and for this subsequent seizure, which places British claimants in a stronger position than the sufferers by the first of these acts solely. I have, therefore, entered at some length into correspondence with Captain Aldham, and have urged upon him the necessity of taking the strongest steps, if necessary, to obtain redress and the security of early repayment. I have felt it right to reject proposals of repayment evidently dependent on the success of the Constitutional party for realisation, and I regret that as yet I am unable to report to your Lordship any final result. I have the honour to inclose copies of the last communications between Captain Aldham and myself. Your Lordship will perceive that, in addition to the reprehension of Governor Garza, if he acted on his own authority, I have demanded an assignment of the duties at Vera Cruz and Tampico that may yet be free, for the payment of the sum due, together with interest at the rate of 12 per cent. per annum. I have, &c. Sir, Inclosure 1 in No. 12. Mr. Mathew to Señor Degollado. Mexico, October 3, 1860. I HAVE been favoured with your Excellency's communication of the 23rd ultimo. While I am very sensible of the feeling (so flattering to me) which has induced you to place at my disposal the sum of 400,000 dollars, forming apparently the bulk of the British property in the conducta, I beg you will permit me to urge again and most earnestly upon your consideration the justice and policy of extending to all, as far as may still be possible, this restitution. Such an act cannot but tend to the advantage of your party and to your Excellency's honour. I must, at the same time, set myself right with your Excellency with respect to my political course. I have no hesitation in avowing my hearty concurrence in the principles of religious toleration and civil liberty proclaimed by your Excellency; but, beyond this, my duty prescribes to me a strict neutrality of action between the contending parties in this Republic; and my steps have, therefore, been limited to taking every opportunity of advancing and furthering the restoration of peace. I have, &c. I BEG to acknowledge the receipt of your communiction of the 23rd of September. It is with unfeigned regret that I find your representations failed to induce General Degollado to restore to all parties the money seized in the conducta; and I have felt it my duty to urge again upon his Excellency, in the accompanying letter, that act of justice. At the same time an official demand, whether on your part or mine, could only be pressed with regard to the property of Her Majesty's subjects; and, however unpleasant and invidious the position forced upon me, I am bound to accept and to acknowledge warmly General Degollado's conduct in yielding to that demand. I have, therefore, only to request that you will require ample proofs in the distribution of the sum you have named (400,000 dollars) that the claims advanced are bona fide British property; all speculations or purchases of money by English subjects, after it was placed in the conducta, being held as secondary claims. In the event of the 400,000 dollars being insufficient to cover the first claims an equal loss or per-centage must be incurred by the holders, and the balances due will be demanded at Vera Cruz. If, however, there is an excess over the unquestionable English claims, primary and secondary, the amount must be returned to General Degollado; all extra expenses or losses incurred by the seizure being deducted. I can only instruct you to take the best possible steps for the security of the money, whether by its temporary retention at the Consulate at San Luis, or by its progress towards a port of embarkation, as may suit the wishes of the owners; but you have my full sanction, should you desire it, to accompany the conducta yourself to the port, returning here immediately afterwards. I have, &c. (Signed) GEORGE B. MATHEW. Inclosure 3 in No. 12. Correspondence between the French Consul at Tampico and the Governor of M. le Gouverneur, Tamaulipas, &c. Consulat de France à Tampico, le 30 Octobre, 1860. J'AI l'honneur de remettre à votre Excellence, en la suppliant de me les retourner aussitôt qu'elle en aura pris connaissance, les copies de la réponse faite à M. Doazan, Consul de France à Vera Cruz, par son Excellence M. le Ministre des Relations D. Melchor Ocampo, et de celle qu'a faite M. Glennie à M. E. Dauban, Vice-Consul de France à San Luis. L'ordre précis du Gouvernement résidant à Vera Cruz est que les 400,000 dollars soient réparties au prorata. M. Glennie attend des instructions de la Légation Britannique à Mexico pour la destination définitive de ces fonds. Je respecte, comme je le dois, l'ordre du Gouvernement Constitutionnel, et j'en demande l'accomplissement. Je n'ai rien à voir dans la mission de M. Glennie. Au nom de la justice, au nom des nombreux intérêts que je représente, je demande que ces fonds, venant sous la protection des autorités Constitutionnelles, soient déposés, aussitôt leur arrivée en cette ville, dans la maison d'un négociant de la confiance de votre Excellence, et qu'une Commission composée de négociants Français. Espagnols, Allemands, et Anglais, nommée par votre Excellence, fasse immédiatement la répartition ordonnée par le Gouvernement dont dépend votre Excellence. Tout délai, M. le Gouverneur, est une perte qu'il faut ajouter à toutes celles qu'a souffertes le commerce qui demande protection par mon intermédiaire.~ Je suis convaincu qu'on la lui accordera. Recevez, &c. Le Consul de France, d'Espagne, de Belgique, chargé des CH. DE SAINT CHARLES. A M. le Gouverneur de l'Etat de Tamaulipas. Palais National, Vera Cruz, le 25 Octobre, 1860. Le Soussigné, Ministre des Relations du Gouvernement Constitutionnel du Mexique, a l'honneur de répondre à la note que M. le Consul de France, Jules Doazan, a bien voulu lui remettre en mains propres, hier au milieu du jour, note qui porte la date du même jour, et qui se réfère à la conduite d'espèces saisie par M. Degollado, en Septembre dernier, et à la suspension des Conventions Françaises. Par décision de son Excellence M. le Président, auquel il a rendu compte de la dite note, le Soussigné doit dire à M. le Consul: Que le Gouvernement Constitutionnel a décidé la restitution des fonds de la conduite prise par M. Degollado; qu'il a donné ses ordres aussitôt que ce fait est venu à sa connaissance, pour qu'on restituât immédiatement tous ces fonds; qu'ensuite, il a renouvelé ses ordres pour que, s'il n'était plus possible de restituer le tout, la partie qui en resterait encore fût répartie, au prorata, entre tous les propriétaires de ces fonds, et qu'il a des contrats pendants et des ordres dictés pour créer des ressources suffisantes pour que la conduite soit efficacement et promptement remboursée; qu'il considère comme une de ses premières et plus urgentes mesures le paiement de cette dette, et l'indemnité, pour les intéressés, des dommages et préjudices que leur a causés cette occupation; et qu'en attendant qu'il se procure d'autres ressources, il a employé déjà le moyen qui se trouvait le plus praticable pour lui, en assignant le produit de la vente des monastères pour réaliser, dès maintenant, cet objet important. Le Soussigné ne veut pas terminer la présente sans profiter de l'occasion pour porter à la connaissance de M. le Consul qu'aussitôt que M. le Président sût que la conduite d'espèces avait été écartée de sa route, il ordonna à M. Degollado de l'y faire rentrer et de faire le procès au coupable; qu'aussitôt qu'il sût ensuite, par la réponse de M. Degollado, que ce dernier était le coupable, il lui donna l'ordre de comparaître devant le Gouvernement pour s'y soumettre à un jugement; que lorsque, plus tard, il connut la rumeur d'après laquelle on avait remis ou on allait remettre une partie des fonds aux sujets Anglais, il donna l'ordre que ce |