Papers Relating to the Foreign Relations of the United States, Transmitted to Congress, With the Annual Message of the President, December 4, 1883

No. 390.
Mr. Morgan to Mr. Frelinghuysen.

Legation of the United States,
Mexico, April 4, 1883. (Received April 16.)

No. 597.]

Sir: I transmit herewith the message of the President of Mexico to Congress, which opened on the 1st instant. I also send a translation thereof.

The important features of the message, as it strikes me, are the statements concerning the public improvements which are being carried on throughout the country in the form of railroads and telegraph lines, and the finances of the country.

In respect to the first of these, everything appears to be progressing.

In respect to the latter the same cannot be said. The receipts for the first half of the present fiscal year are stated to be $14,406,102, against $13,733,949 for the corresponding period of last year, a difference in favor of the present year of $672,153.

But the President states that the receipts have been falling off, and that the revenues for the second six months of the year will not probably equal those of-the first half of the year. In the meanwhile, however, it would appear from the message, as it is currently reported on the streets, that the Government has not been able of late days to pay its current expenses. The President hopes that this is a mere temporary embarrassment. But when the extent of the revenue is considered in connection with what has to be subtracted therefrom in payment of subsidies to railroads, the vast amount which the contracts for immigration which have been entered into within the last two years, the maintenance of an army of some 25,000 men, and the natural expenses of the national Government, and when it is considered that the arrears of the Government amount at present, as I am assured from the best authority they do, to upwards of $3,000,000, the outlook is not, to me at least, a very cheerful one.

I am, &c.,

P. H. MORGAN.

[Inclosure in No. 597.—Translation.]

Extract from the Diario Oficial, Mexico, April 2, 1883.

message of the president of mexico.

Gentlemen Deputies, Gentlemen Senators: I fulfill with pleasure the duty conferred upon me by the constitution to present to Congress the condition of affairs in the republic.

The difficulties which existed in our foreign relations, arising out of the long standing question of boundary with Guatamala, having entirely disappeared, I can state that the friendly relations which exist between the Government of Mexico and other nations are to-day stronger than they were in September last. Our differences with the above-referred to republic not only placed us, as is well known, in a grave position towards her, but provoked on the continent, and especially in Central America, unfounded suspicions with respect to the policy and plans of Mexico which produced, if not hostilities, at least distrust. But the true and sole purpose of Mexico having been set forth by our diplomatic representative to the several Central American States, and to the frank and honorable conduct of our Government, there is reason to believe that all suspicion of our ambitious projects have been allayed.

The boundary treaty with Guatemala, signed at this capital on the 27th September last and approved by the Senate on the 17th of the following October, was also approved by that republic on the 21st December, and having thus been approved by both Governments, ratifications will, as the secretary for foreign relations has been assured, soon be exchanged. It seems to me needless to enlarge upon the importance of these acts, which put an end to a long-pending question, and one of painful importance, the results of which cannot but be beneficial as well to Mexico as to Guatemala.

On the 3d of the past month, ratifications of a convention were exchanged at Washington, entered into by both Governments, for the replacing of the monuments which, in conformity with existing treaties, should mark the dividing line between our republic and the United States of America. The other convention to which I called your attention in my former message, entered into with a view of the re-examination of the “Weil” and “La Abra” claims, is still pending in the United States Senate.

On the 20th January of the present year, commissioners duly appointed by both Governments, signed in that country a commercial treaty, the principal stipulations of which authorize the importation, free of duty, of a certain number of the productions of the one country into the territory of the other during six years. Reserving for a proper opportunity the presenting of this international document which is considered of advantage to both parties, for the sanction of the Senate, I limit myself to informing you that it has been submitted for the approbation of the American Senate.

The German Government, not having ratified the treaty of friendship, commerce, and navigation agreed to with that power on the 5th December, 1882, and approved by the Senate on the 15th of the same month, it has been agreed to prorogue the one of the 28th August, 1869, to the 30th June next. Also, by common accord, the treaty of commerce and navigation entered into with Italy on the 14th December, 1870, has been prorogued to the same date.

Ratifications of the convention with Spain, entered into on the 17th November, 1881, for the extradition of criminals, were exchanged in this city on the 3d March last, and were promulgated a few days later. This fact will put an end to the frequent difficulties which the want thereof gave rise to, owing to the proximity of Cuba to our coast.

With regard to our internal affairs, the elections held to fill vacancies in the supreme court of justice have been regularly held throughout the country, and at about the same period municipal elections were held in the federal district and in the territory of Lower California.

The public peace has been preserved without any notable disturbances thereof throughout the country, to which the rural police have efficiently contributed. This institution, in view of its great utility, has received the careful consideration of the Executive.

In several of the Spates, as Oaxaca, Chiapas, Chihuahua, Nueva Leon, Michoacan, and Tabasco trifling disorders have occurred, but only with reference to their interior affairs; fortunately, however, they were all of an inconsiderable character, and order was restored without serious effort.

The Executive has preserved the best harmony in its relations to the States, and has not had to lament any conflict to trouble them or render their maintenance difficult.

In this connection it is gratifying to me to be able to announce that the State of Jalisco has resumed its constitutional relations, and the newly elected officers thereof are discharging their duties.

The postal code will soon go into operation, and will introduce reforms of the greatest importance urgently demanded by the exigencies of the mail service. The careful study which the importance of the subject submitted to the commissioners demanded has retarded the introduction of the advantages which, without doubt, commerce and the public generally will derive from the postal reforms which have been determined upon.

In the States of Chiapos, Tabasco, and Oaxaca, a disease having made its appearance which from its character and ravages caused alarm, energetic measures were successfully taken by the Government as well to prevent its propagation as to relieve parties who had been attacked. Happily the epidemic has almost entirely disappeared.

Works of public beneficence are of the greatest interest to the Executive, and although it has not been possible, for various causes, to erect the buildings to be dedicated to these purposes, and for which appropriations have been made in the budget, considerable sums have been expended in the preservation and improvement of those now in existence.

In the department of justice it is pleasant for me to be able to state that the law passed by Congress which provides that the federal district judges shall be elected by the popular vote, in conformity with section 6 of article 72 of the constitution, has been strictly executed, and that, the election having taken place in due season, the results thereof, after verification, were published, and all the functionaries elected thereunder entered upon the discharge of the duties of their office on the 1st of January of the present year.

In view of the increase of the population and commercial movement in the frontier States of Chihuahua, Coahnila, and Nueva Leon, the Executive considers it indispensable that district courts should be established at one or two more points on the northern frontier, and to this end it will submit to Congress the necessary project of a law.

In my message of September last I recommended to Congress the prompt passage of the laws which were submitted to it with reference to the adoption of a commercial code, a mining law, and the enforcement of article 96 of the constitution. I renew the recommendation.

As regards the department of public instruction, the Executive having been authorized to take the steps necessary for the reorganization of the national conservatory of music, has been able to place that institution upon a basis of great utility, at the same time that it has placed its expenses within a prudent and economical limit.

With the view to perfect a uniform system in primary instruction and, at the same time, to give to it its largest development, the secretary of that department is preparing a project for a normal school, which will, no doubt, be productive of the best results.

In the primary schools for boys and girls, which belong to the department of justice, 3,487 scholars have been registered during the past year; a very large number, when it is considered that there are only ten of these schools. In the establishment of secondary and professional instruction 3,795 students have been enrolled.

Passing to the department of fomento, I am pleased to be able to state that the progress made in that branch of the Government is of great importance, and authorizes the opinion that it will powerfully contribute to the preservation of peace, as it develops day by day riches and the national prosperity.

On the line from Mexico to El Paso del Norte, the work on the Central Railroad has reached near the city of Aguas Calientes, and from El Paso south to Santa Rosalia, south of Chihuahua.

On the line from Tampico to San Luis, starting from the point first named, about one hundred kilometers have been constructed. The grading of the road to the summit of the table-land is sufficiently advanced.

On the Pacific line work has been commenced at the port of San Blas.

The National Construction Company has completed its line from this city to Acambaro and within a short time will have extended it to Movalia. Towards the north the line is completed between Nueva Laredo and Monterey, and the work is being pushed in the direction of Saltillo. A new impulse has been given to the line of the same company between Matamoras and Monterey.

The road from Guaymas to Los Nogales, 501 kilometers in length, running through the State of Sonora, has been completed, and has been operated since the month of October last. Connecting as it does with lines in the United States, it affords a transcontinental communication.

The International Construction Company has commenced work at Piedras Negras, and is proceeding rapidly with the construction of the permanent bridge across the Bravo, in substitution of the temporary one which it had already built.

The old Morelos Railroad Company, which has been merged with other concessions into one company with the view of establishing an interoceanic line between Vera Cruz and Acapulco, has lines completed from this capital to Ivolo and Calpulalpam; and from Cuantla Morelos to Yantepee. These lines are three hundred kilometers in length.

On the 21st of last month the Puebla, San Juan and San Marcos Company completed its line of 91 kilometers, thus anticipating the time fixed by their contract.

The Hidalgo Company completed in the month of December its road from Ivolo to Pachuca, and is now at work on the line from San Augustine to Teoloyuacan.

A road is completed between Altata aud Culiacan.

The concessions granted in the States of Yucatan and Campeachy are being prosecuted.

The same is to be said of the lines from Alvarado to Vera Cruz, from Puebla to Izucar de Matamoros; from San Marcos to Nautla, and from Chalco to Tlalmanalco.

Work on the National Railroad on the Isthmus of Tehuantepec is being actively prosecuted and extended. The construction thereof has proceeded satisfactorily, as, notwithstanding the epidemic which prevailed in the southern portion of the isthmus, fifteen kilometers in that region and ten in the north have been completed. These, added to those which had already been built by the former company, give a result of sixty kilometers.

The survey of the line for the transportation of ships across the isthmus, for which a concession was granted to Mr. James B. Eads, has commenced.

The federal telegraph lines have been considerably increased, and many of these have been completed. More than 2,000 kilometers have been established since my last message, which, added to those already in existence, form a total of upwards of 18,000 kilometers of telegraph lines the property of the republic.

The important industry of mining has also had my earnest consideration. Besides the reports which have been gathered upon the actual condition of that industry, the department of fomento has sent out a number of engineers, who are at the present moment exploring the mineral regions of the country. Under the auspices of the same department, a Mexican society of mines has been formed, and held its first meeting on the 5th of February last. The Government hopes that the greatest advantage will result from this institution, which has, ramifications throughout the country.

In conclusion, in respect to the department of fomento, I permit myself to recommend to you the passage of the laws submitted to you by that department upon the subject of colonization, of navigable streams, of lakes and the sea coast, of patents of invention, of mountains. The necessity of a modern and wise legislation upon these subjects cannot be denied.

Coming now to the actual condition of the public treasury, 1 have the honor to inform you that receipts of revenue for the past six months of the present fiscal year were greater than that of the corresponding period of the last fiscal year, the sum received being $14,406,102, against $13,733,949 for the year 1881–1882. Perhaps a like increase will not be experienced in the last half of the year. A certain falling off of the receipts has been observed, due to circumstances which I shall now proceed briefly to bring to the notice of Congress.

When the construction of railroads on a large scale commenced in the Republic, the two great companies, the “Central” and the “National Construction Company,” were obliged to procure from abroad considerable sums of money; the result was that Mexican merchants were not forced to export silver, as they could procure in this market bills with which to pay for the purchases which they made abroad. Transactions became easier, and as the consumption increased their orders became more important, in consequence of which importations increased. Coincident with this condition of things was the establishing of several institutions of credit, which in inaugurating their operations diminished the rate of interest below the point which the condition of the money market probably warranted, thus powerfully stimulating commercial activity.

As soon, however, as the railroads commenced to reap the results of the operating of their lines, without taking into consideration the subventions which they received in virtue of their concessions, and when the banks, in regulating their operations, increased the rate of interest, the situation was seriously modified and in a sense less favorable to importations.

However, until within the last few days the expenses of the public service have been paid regularly; and if the financial danger and difficulties have not been entirely dissipated, the Executive hopes that any embarrassments which may arise will only be transitory. In any case, constant development of the country offers assured elements for the prompt re-establishment of the regular payments of the obligations carried on the budget.

Here it appears to me opportune to inform Congress that the amounts which were due to the railroads at the end of the last year have been paid, with the exception of those due to the Central and the Sonora roads. The sums due to the first of these are paid by the retention of 6 per cent. upon the customs receipts, which is paid with the greatest exactitude; as to the second, the amount remaining due is being paid in installments which have been agreed upon between the Executive and the company.

Plans for the reform in the customs tariff are being studied, and, although the question is a perplexing one and full of difficulties, the Executive does not doubt that it will be satisfactorily settled, to accomplish which, however, it may become necessary for him to ask for an extension of the time fixed therefor by Congress.

The board of administration of the Hypothecary Bank of Mexico has notified the Government that the 40,000 shares thereof were subscribed for on the 17th March last. On the 22d of that month a general assembly of the stockholders was held, and the company declared to be regularly organized, with a capital of $4,000,000, as provided for by the contract of concession. It commenced operations on the same day, which operations, it is to be hoped, will result generally to the benefit of agriculturists throughout the land, who will find in this bank and in the low cost of transportation which the railroads will furnish to them the opportunity of increasing the exportation of the products of the country.

During the present session Congress will be called upon to discuss the revenues and expenditures for the coming fiscal year. The Executive confidently rests upon the patriotism of the houses, the hope that their legislation upon this subject will permit the country to establish a perfect equilibrium in the federal budget, and he will be ready to energetically second your efforts, and to dissipate as much as possible the difficulties of the situation through the means of a prudent economy.

As relates to the department of war and marine, it would take too much time to relate here the movements of all troops in the several States of the Republic, and to notice the services which they have rendered; besides, military affairs will form the subject of a special message, and I shall therefore content myself now with noticing a few details relating thereto.

The work undertaken at Chapultepec for the installation of the military school, as well as the school of practice, is being actively prosecuted. The plan for a reform in the rules of the military school has been completed.

The Government has purchased for the use of the custom-houses on the Gulf the steamers Brazil and Pennsylvania, which will soon be ready for service. Crews composed of intelligent and educated officers and seamen are now being provided for them.

The work of establishing schools at Lima and Acupulco is being rapidly pushed forward, and it is to be hoped that the one at Lima will be opened by the end of the present month.

A commission has been appointed to study the torpedo system of Europe and the United States, a system which is now considered as the best and least expensive one for coast defense.

The code of army regulations has been printed and is now in force.

Gentlemen Deputies, Gentlemen Senators: The succinct account which I have thus given you establishes the fact that the condition of the Republic is, in the main, satisfactory. But, far from attempting by vain efforts to conceal from you the single weak points in our administrative workings, which might give rise to any apprehensions, I have frankly called your attention to them.

This loyal confession accords not only with the sincerity and honesty which should characterize all information which the Government furnishes to Congress, and through it to the Republic; it was not only necessary on my part, for frankness has been the base of my preceding messages, but that it may serve as a guide to all public functionaries, to the end that each of them, in the sphere of his duty, shall, with the greatest zeal, collect the duties, at the same time that order and the strictest economy should be exercised in the administration of the resources of the nation.