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to such pretensions. Even the parents of Francis Joseph and Maximilian intervened in the dispute, with the object of obtaining a satisfactory settlement, but their efforts were in vain, and they left Vienna after a conference in which nothing was agreed upon.

Things reached a point at which it was already considered as certain that the notables would be left without their monarch, when Napoleon, knowing that this difference would overthrow his projects, sent General Frossard with letters to both disputants, the one addressed to his protégé being urgent and severe, with the peremptory notification that if he did not settle the pending difficulty another prince would occupy the throne of Mexico. In such a grave conflict Maximilian was compelled to accept the proposition which was most favorable to him, with the object, no doubt, of not seeing realized in his own person the fable of the dog and the two loaves.

In view of his decision, they proceeded to its official acceptance, the ceremonies being performed at 10 o'clock a. m. on the 10th of April. The deputation of the notables, composed of Gutierrez Estrada, Velazquez de Leon, Aguilar, Woll, Escandon, and Landa, and accompanied by Arrangoiz, Murphy, Facio, and a few other traitors, were conducted to the palace of Miramar in four coaches of the archduke and introduced into the great saloon of reception.

Gutierrez Estrada pronounced a discourse, in which he repeated the notorious lie that the vote of the notables was ratified by an immense majority of the people of Mexico. Maximilian answered in Spanish-a language in which he must have already made some progress-that the confirmation referred to by Gutierrez Estrada appeared from the record of proceedings presented to him.

We do not know whether the Austrian has any idea of the manner in which those fallacious manifestations of the national will were fabricated, or whether he has been grossly deceived, as in all probability he has, in reference to the importance of such documents, in which case chagrin and deception will award him a sad fate.

The archduke referring immediately after to what he called the establishment upon a firm basis of the independence and welfare of the country, declared this secured, thanks to the French Emperor. From these unintelligible words we cannot ascertain if an allusion was made to any guarantee in relation to Napoleon's assurance not to interfere with the acts of the Mexican emperor. If so, the convention to which we shall soon allude is a flagrant contradiction of such a promise. When the archduke stated that the august chief of his family had also consented to his taking possession of the throne offered him, he avoided to mention the difficulties which became necessary to be removed in order to secure that result, and the condition upon which it had been obtained.

In the discourse we are now analyzing there is a paragraph which calls our serious attention to the terms in which it is announced: "I accept the constitutional power which the nation, whose organ you are, confers upon me, and, at all events, I shall only use it to create permanent order and to establish wise and liberal institutions in Mexico." These words can be interpreted in different ways, but the most natural, in our opinion, is that the new emperor is to issue by himself a constitution which will be octroyée, as famous as that issued by Louis XVIII of France, without the vote of the nation having any voice in the formation of the institutions which their presumed author, with remarkable modesty, calls wise and liberal. To this consideration is to be added that the monarchy is not to remain under the protection of the constitutional laws until the country is completely pacified. If until then the generous Maximilian preserves for us the productions of his wisdom, he will have time enough to study carefully all the constitutions in the world—that is, if he is willing to lose time in a study which will do him no good, since the dictatorship is to be his system of government during the ephemeral existence of his kingdom.

The Austrian did not forget to announce his intention of visiting Rome to

receive from the hands of the holy father the blessings which are so precious to all the sovereigns. We suppose that the blessed monarch will at the same time endeavor to establish the basis of a concordat to settle the ecclesiastical questions in Mexico, although we do not doubt that the state will be subject to the church in an empire which has all the appearance of being theocratic.

The advent of Maximilian to the throne of Mexico being announced with the salvos of artillery, hurrahs, and acclamations, Gutierrez Estrada pronounced another discourse teeming with flattery, and adding that the Mexicans who were present had to perform the last duty of placing their love, their gratitude, and the homage of their fidelity at the feet of their emperor.

What occurred up to this point in the ceremonies is provocative more of ridicule than of anger, but the following act was so indignant and humiliating that, instead of exciting our laughter, it calls for our contempt. The president of the deputation of notables bent his knee and kissed the hand of the new sovereign, as a sign of homage, which example was followed by all the Mexicans present. Such baseness, we consider, tarnishes the dignity of freemen, and is totally repulsive to our habits, our education, and our principles To-day, more than ever, we are proud of being republicans, because republicans only bend their knees before God.

On the same day, April 10, were appointed Velazquez de Leon minister of state and Woll chief of the military house of the emperor. That evening there was a great banquet, at which Maximilian appeared with the insignias of the orders of the Virgin of Guadalupe and the national of Mexico. We do not know what the last order is; it is created, perhaps, for the new Emperor.

On the 12th other appointments were made to reward the traitors who had labored most for the monarchy and Maximilian. Velazquez de Leon remained as minister of the royal house; Woll, elevated to a count, was appointed chief aid and private secretary of the emperor, and Arrongois, Aguilar, and Hidalgo ambassadors to Brussels, Rome, and France.

To establish relations for the present between France and Mexico a convention was on that memorable day (10th) signed between the two imperial governments, Mr. Charles Herbert and Don Joaquin Velazquez de Leon acting as ministers plenipotentiaries. The treaty contains such niceties as suffice to give an idea of the disgraceful and dishonorable terms on which the new kingdom is established. In spite of the repeated song that they counted an immense majority of the Mexican people in favor of the monarchy and monarch elect, it was stipulated, as a point absolutely necessary to preserve the interests that led to intervention, that the provisional number of the French troops in Mexico should be reduced, as soon as possible, to a force of 20,000 men, including the foreign legion.

As soon as the national forces are organized the foreign troops are to be withdrawn, although the legion of this name, composed of 8,000 soldiers, is to remain here six years after the withdrawal of the French. If the above-mentioned stipulations are consummated, it will show that for the time being there will be in Mexico 40,000 soldiers, in which number is at present included the expeditionary army, exclusive of the men employed in the navy.

The reduction to 20,000 men is to take place immediately, and the withdrawal of the remainder of the French army will not be attended with much delay, leaving only the foreign legion, which will be disbanded at the end of six years. All these are but mere "castles in the air," built upon the pacification of the country, and, besides being contradictory, because they take for granted that pacification, and afterwards admit that it cannot be but slow and gradual, and are really false in either case, because peace in Mexico cannot be consummated but with the triumph of independence and republican institutions.

The so-called Mexican emperor has suffered the humiliation of consenting that in all places not garrisoned exclusively by Mexican troops the military

power shall devolve upon the French commander. This rule will also obtain in combined expeditions of French troops and Mexican traitors. It was not even agreed in these stipulations that preference should be given to officers of the same rank, but the fullest and most general terms were used. The sad spectacle which we have already witnessed, that the Mexican generals, notwithstanding their rank, are subordinate to French officers of inferior rank, will be repeated at every step. The smallest officer of Napoleon III will command the presumed marshals of Maximilian. Such a condition is not strange when the emperor of Mexico has agreed to hold himself subject to the orders of the commander-in-chief of the French troops, with whom he is "to have an understanding" as to the designation of the places to be occupied by the foreign troops, as well as the military expeditions to be undertaken. The words "to. have an understanding" have been used simply to save appearances, it being very clear that in reality it is the French general who is to govern everything, without any other law than that of his omnipotent master. It is also provided in the TREATY that the naval stations kept by France at the Antilles and on the Pacific ocean will frequently send ships-of-war to the ports of Mexico to show. the French flag. If we start from the false principle that Mexico is already pacified, we do not know to what that useless ostentation would lead; if, on the contrary, it is borne in mind that the struggle for national independence is to be prosecuted, then the periodical apparition of the French flag in the Mexican ports will be ridiculous and impotent, since it is not tantamount to the blockade which at present exists.

In reference to the indemnities of French subjects for damages suffered without just cause, which have been the original pretext for the expedition, it has been agreed to establish in Mexico a mixed commission, composed of three Frenchmen and three Mexicans, appointed by their respective governments, to examine and settle these claims, and another revising commission, composed of two French men and two Mexicans, appointed in the same manner, to reside in Paris, which shall proceed to a final liquidation of the claims approved by the first commission, and shall decide upon those submitted to their judgment. As it is already seen, the commission to reside in Paris is in reality to do everything under the immediate and irresistible influence of the Emperor of the French, thus consti tuted the sole arbiter of the claims of subjects against the poor Mexican nation. The other stipulations of the agreement at Miramar are in relation to pecuniary affairs. Here, consequently, the terrible question of numbers presents itself, in which it is easy to show how enormous on one side are the damages inflicted on Mexico, and on the other the absurdity of combinations the realization of which is impossible. The first expense imposed on Mexico is 400,000 francs for every round trip of transports plying semi-monthly between France and Vera Cruz as long as the exigencies of the French army shall require it. The fact that the service of the transports is semi-monthly indicates that the expense is doubled every month-that is to say, 800,000 francs; but as this pomt is not sufficiently clear, we shall take for our basis of calculation the smaller sum.

The expenses of the French expedition payable by the imperial government of Mexico are estimated at 270,000,000 francs up to the 1st of July of the present year. This sum will draw an interest of three per cent. per annum.

From the same date Mexico shall pay all the expenses of the army of traitors, and for every French soldier the sum of 1,000 francs annually as indemnity for the salary and subsistence of the expeditionary corps. Should the loan be. ̈ obtained, 66,000,000 francs are to be paid to the French government, and 54,000,000 francs to be applied to the account of 270,000,000 above mentioned, and 12,000,000 for payment of indemnities to French subjects for the damages that may be awarded them. The treasury of the Mexican empire shall annually pay France the sum of 25,000,000 francs in specie, which sum shall be applied

to expenses of transportation and salary of the expeditionary corps, to the payment of interest and the funding of the debt of 270,000,000, and to the abovementioned indemnities of French subjects.

These preliminaries being laid down, let us examine the conclusions to which they lead.

The iniquitous French intervention brings to Mexico out of the incalculable damages occasioned by the war the following burdens: that of a new debt of 270,000,000 francs, with three per cent. interest; that of an unnecessary monthly expense of 400,000 francs, or perhaps double that amount, for the service of transports; the expense from the 1st of July next of 1,000 francs annually for every French soldier-a disbursement the amount of which cannot now be estimated, the basis of calculation being uncertain, but which will undoubtedly amount to an exorbitant sum; and that of the payment of the capital and interest for indemnities which evidently have been put down at very exaggerated figures, because they are to be determined by interested parties. The total of all these items will make an amount which will suffice by itself to prove the expedition most detestable and onerous.

In case the loan is made the damage will be great, and without profit to anybody. Supposing that the loan shall amount to the 200,000,000 francs estimated as necessary, they will be immediately reduced to 126,000,000 in specie, on the basis of the 63 per cent. payment. From the 126,000,000 are to be deducted 54,000,000 to be applied to the debt of 270,000,000, and the 12,000,000 for indemnity to French subjects, which will leave a balance only of 60,000,000. Taking from this the 8,000,000 with which Maximilian is to pay his debts, there will be left 52,000,000 francs, or what is the same, $10,400,000. Such an insignificant sum will be spent in a short time, and Mexico will have a new and insupportable burden of $40,000,000, with an interest of six per cent. per annum. We do not know how the 25,000,000 francs in specie which are to be paid annually will suffice for all the applications that will be made upon them. In the event that the expeditionary corps shall not be less than 40,000 men, the present number, it would exhaust 40,000,000 francs at the rate of 1,000 francs per soldier. Thus it will be seen that 25,000,000 francs would not cover even the first appropriation. Taking for granted that the expeditionary corps will be reduced to 20,000 men as soon as possible, that expense would then be 20,000,000 francs, to which adding 4,800,000 francs for transports, would only leave a balance of 200,000 francs for the payment of interest and funding of the capital of the 270,000,000 francs, or, rather, the 216,000,000 francs to which it would be reduced, after paying 54,000,000 francs of the new loan, and for the payment also of the indemnities to French subjects. The only way to apply anything additional to these last items, even on a small scale, would be the complete withdrawal of the expeditionary forces; but if such an event facilitates the payment on the one hand, it renders on the other the collection of the resources very difficult.

It is important to state here, however briefly, the enormous sum that will be required for the expenses of the Mexican empire. For this estimate it will be necessary to divide the expenses into two parts, the one definite and the other uncertain and contingent.

The interest at 3 per cent. on 270,000,000 francs, or $54,000,000.. $1,620, 000 The expense of transports.

The interest on the debt contracted in London, to which is added

the unpaid interest....

The interest on the English convention..

The interest on the Spanish convention.

Total....

960,000

2, 020, 165

125, 250 126, 164

4,851, 579

Supposing, now, that the new loan is obtained, and that it produces 200,000,000 francs, or $40,000,000, then the account will stand thus:

Interest on 216,000,000 francs, to which sum the 270,000,000
francs will be reduced, after paying 54,000,000 at the rate of 3
per cent...

Interest at 6 per cent. on 40,000,000 francs of the new loan...
Expense of transports..

Interest on the debt contracted in London, to which is added the
unpaid interest ..

Interest of the English convention

Interest of the Spanish convention.

Total...

$1,296, 000

2, 400, 000 960, 000

2,020, 165

125, 250

126, 164

6, 927, 579

The foregoing calculations refer only to debts already liquidated. Those to be liquidated offer the following calculation:

The expenses incurred by the expeditionary troops will amount to some millions, more or less, according to their number, at from 40,000,000 francs (if the presumed present force of 40,000 men is not reduced) to 8,000,000 francs if the foreign legion alone remains. These being disbanded, the strong and extraordinary exhibition we have made will disappear; but it is to us evidently impos sible that such a case may arise, there being no doubt that the empire of Maximilian will fall as soon as the foreign support is withdrawn. It is therefore natural to cajole Spain, and to follow a policy diametrically opposed to that of the liberal government respecting the mon-Almonte treaty. The immediate consequence of this conclusion will be the recognition of the Spanish convention, rejected as fraudulent, thus increasing the foreign debt with the capital they represent, and with the interest already due and maturing.

Inasmuch as the loan will bear an interest of six per cent. per annum, it follows conclusively that the same rate of interest will have to be paid on the Mexican debt due the subjects of other powers. In all the international treaties made by Mexico the other party to the treaty has in every clause obtained favorable advantages over this nation. From yielding this principle emanates the necessity of the obligation under which we make concessions to every country with which we have treated, and a favor granted to one is claimed by all. The interest on the new loan being established at six per cent., an equal amount will be required for the 216,000,000 francs of the government of Napoleon; for the debt contracted in London; for the English and Spanish conventions, and for the indemnities of French subjects. The sum total of this will reach an exorbitant amount.

The home debt of Mexico is at present divided into two classes: the consolidated debt is composed of claims approved by the convention decreed by the law of November 30, 1850; the floating debt comprises the claims after that date. The consolidated debt has an interest of three per cent. per annum, in which there would not be any alteration, because Mexicans are the least favored in Mexico; but the government which has declared its intention to establish order and secure personal rights should at least pay the interest stipulated. There is no reason that the floating debt should not draw interest by virtue of a new consolidation, and at all events the value of both debts will be one of the national burdens.

The simple consideration of the figures, the annual expenses of the order of things to be established, will astonish the financiers of the Mexican empire. The first items have already been mentioned, to wit: the payment of the enormous interest of the debt without any subsequent deduction, the funding of the capital being impossible; the payment of the expenses of the transports as

H. Ex. Doc. 73-1

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