MEXICO. 



535 



Relations with the United States. The President 

 of the United States, in his annual message to 

 Congress of Dec. 4, 1883, expressed himself 

 about our relations with Mexico to the follow- 

 ing effect : 



At no time in our national history has there been 

 more manifest need of close and lasting relations with 

 a neighboring state than now exists with respect to 

 Mexico. The rapid influx of our capital and enter- 

 prise into that country shows, by what has already 

 been accomplished, the vast reciprocal advantages 

 which must attend the progress of its internal devel- 

 opment. The treaty of commerce and navigation of 

 1848 has been terminated by the Mexican Govern- 

 ment, and, in the absence of conventional engage- 

 ments, the rights of our citizens in Mexico now de- 

 pend upon the domestic statutes of that republic. 



There have been instances of harsh enforcement of 

 the laws against our vessels and citizens in Mexico, 

 \ of denial of the diplomatic resort for their pro- 

 ion. The initial step toward a better understand- 

 has been taken in the negotiation by the commis- 



n authorized by Congress of a treaty which is still 



_ :>re the Senate awaiting its approval. 



The provisions for the reciprocal crossing of the 

 itier by the troops in pursuit of hostile Indians 



ive been prolonged for another year. The opera- 



ras of the forces^of both Governments against these 



iva^es have been successful, and several of their 

 tured or dispersed 



by the skill and valor of the United States and Mexi- 

 in soldiers lighting in a common cause. 

 The convention for the resurvey of the boundary 

 )in the Eio Grande to the Paciiic having been rati- 

 d and exchanged, the preliminary reconnaissance 

 3rein stipulated has been effected. 

 Our geographical proximity to Central America and 

 r political and commercial relations with the states 

 that country justify, in my judgment, such a ma- 

 ial increase of our consular corps as will place at 

 3h capital a consul-general. 



Rejection of the Reciprocity Treaty. The Mexi- 

 m treaty was rejected by the United States 

 mate on January. 18th, the vote showing that 

 the majority in its favor lacked one vote of 

 le two thirds required for ratification. The 

 igar and tobacco interests are arrayed solidly 

 linst it, and it was also opposed by some 

 mators on the ground that reciprocity trea- 

 ties are of doubtful constitutionality, inasmuch 

 they tend to interfere with the free exercise 

 )y the House of its right to initiate bills rais- 

 ig the revenue ; but the period allowed for 

 its ratification has been extended by the Presi- 

 dent, the Secretary of State, and the Mexican 

 minister to May 20, 1884, and thus there is still 

 a chance for its adoption. 

 Finances. The national and State finances, 

 i shown by the budget estimates for the 

 current fiscal year, exhibit the following de- 

 tails : 



REVENUE. Budget of 1883-'84. 



Custom-House $19,000,000 



Custom-House at Mexico and town dues 2,000,000 



Stamp dues 4,500,000 



Direct taxes 900,000 



Mint .' 700,000 



Instruction fund 60,000 



Post Office and telegraphs 700.000 



Lottery... 800,000 



New tobacco and stamp taxes 2.000,000 



Sundry incomes 1,200,000 



Income of individual States 7,500,000 



Grand total . 



EXPENDITURE. 



The Legislature $1,015,682 



Tne Executive 48882 



Supreme Court 406,652 



Foreign affairs 867,580 



Interior.... 8,285,578 



Justice and Public Instruction 1,248.510 



Public Works 11,127,600 



Finance 4,9(56,262 



Army and Navy.... 8,252,852 



Expenditure in the different States 7,uOO,006 



Grand total $88,218,998 



National Indebtedness. The foreign debt era- 

 braces the following items: English loan of 

 Oct. 14, 1850, $89,252,360; agreement of in- 

 debtedness to English bondholders of Dec. 

 4, 1851, $5,900,025 ; ditto to Spanish, of Dec. 

 6, 1853, $1,231,775 ; ditto, ditto, of Nov. 12, 

 1853, $5,553,287; debt to the United States of 

 July 4, 1868, $2,475,123 ; together, $104,412,- 

 570; internal debt, $40,241,215; grand total, 

 $144,653,785. 



The outcome of the recent negotiations be- 

 tween the representative of the Mexican Gov- 

 ernment and the committee of the council for 

 foreign bondholders has not, it appears, been 

 such as to improve Mexico's standing in the 

 British market. The refusal of the Mexican 

 Government to comply with the demands of the 

 English bondholders for an issue of 20,000,- 

 000 of 3 per cent, bonds in addition to the debt 

 of $80,000,000, was made public through a ca- 

 ble dispatch. 



In May, 1883, a congressional committee re- 

 ported a bill authorizing the Executive to liqui- 

 date the national debt, excepting only the debts 

 of the empire, those of the Miramon and Zulua- 

 ga Governments, and claims already rejected. 

 Claims admitted by the Mexican and American 

 commission and those for railroad subsidies are 

 not affected by the proposed settlement. The 

 Executive was authorized to issue bonds bearing 

 3 per cent, interest, to be receivable for Gov- 

 ernment lauds, adjudicated property, and let- 

 ters patent, the debt to remain national. The 

 details of the settlement, involving the amount 

 recognized, were left entirely to the Executive. 

 Mexico acknowledges an indebtedness, prin- 

 cipal and interest, of 16,000,000. A month 

 previous to the introduction of the bill referred 

 to above, a private agent of Mexico, without 

 full authority, had made a preliminary agree- 

 ment with the bondholders, by which Mexico 

 was to replace the outstanding bonds with a 

 new issue for 20,000,000 at 3 per cent, inter- 

 est. The additional 4,000.000 were for the 

 purpose of paying the first year's interest and 

 reimbursing the expenses of the bondholders' 

 committee. Subsequently Congress, by passing 

 the bill above alluded to, authorized the Presi- 

 dent to settle the debt on the given basis, and 

 the agreement was signed in London on May 

 12th. When the text of the agreement arrived 

 from London, the President refused to approve 

 the additional 4,000,000. Negotiations for a 

 new agreement were then begun, but failed. 

 Toward the end of October the President in- 

 structed Carlos Rivas, the Mexican agent in 



