NOT A COMMERCIAL COUNTRY. 105 industrious mankind is ever marching. Nor can we doubt that unless Mexico learns wisdom from the past, and, abandoning the paltry political strife which has hitherto crushed her industrial energy, follows in the footsteps of modern civilization, her fate will be sure and speedy. The attention of the world is now riveted upon this region as the natural mistress of the Atlantic and Pacific. If Mexico covers the eastern and western slopes of her Cordillera with an intelligent, progressive and peaceful population, invited from abroad to amalgamate with her own races under the operation of permanent laws and wholesome government, the change may be slow and her power may be preserved. But if she will persist in the mad career of folly which has characterized her since her independence, she will not be able to resist the gradual and inevitable encroachments from the north, from Europe, and from the new establishments which are rapidly growing up on the Isthmus of Panama. These new foundations, based on the incalculable wealth of California will be fostered by means hitherto undreamed of in the wildest commerce of the world, and unless Mexico shall avail herself of their salutary monitions they will finally absorb both her people and her nationality. RAILWAY FROM VERA CRUZ TO THE CITY OF MEXICO. NOTE. In relation to the various modes of transit across the Isthmus of Panama or Tehuantepec, we do not deem it advisable to offer any speculations, at present, (April, 1850.) When reconnoissances of both routes have been completed and published, under the sanction of able and disinterested engineers, the world, which is so largely concerned in this subject, will be better able to decide as to their relative advantages. Both routes may ultimately be required, when the augmented commerce of the west coast of North and South America and the East Indies demands a speedy access to those regions. In the meantime, however, I subjoin the following extract from a report made by an officer of our army, during the war with Mexico, whilst our forces were still occupying the capital, in March, 1848. It apparently demonstrates at least the practicability of a railway from Vera Cruz to the valley: "Of the different routes proposed, the one following the ridge which separates the towns or the two rivers of Tomepa and Obatejua, passing near or through the towns or villages of Acanisica, St. Bartolomé, St. Martin, Nopalpica, and Tlascala, is not only the shortest and most level, but offers the fewest difficulties to overcome. This route does not offer the slightest obstruction, with the exception of crossing the river San Juan, till you reach the Boca del Monte, seventeen leagues from Vera Cruz; thence pursuing its course along the sides of the same almost continuous ridge, with an ascent of not more than one upon fifty, till you reach the deep Barranca of Chichiquila, twenty-three leagues from Vera Cruz; the road is thence across the Barranca, on embankments and stone walls, the materials for this purpose being plentiful and on the ground; the ten leagues from the Barranca of Chichiquila to the highest point of elevation, form the most difficult and costly section of the road. It must, however, be here taken into consideration, that at this very point of the road there are found in the immediate vicinity twelve Indian villages, capable of furnishing a large number of efficient workmen, who would be N 106 RAILWAY FROM VERA CRUZ TO THE CITY OF MEXICO. willing and even anxious to labor at the very low price of 37 cents per day, in the most healthy climate of the country. "From this point of highest elevation, the route followed, reduces the distance to the city of Mexico to 37 leagues-making the whole distance from Vera Cruz to the capital not more than 73 leagues. "It must be borne in mind, that in making the following estimate, we have taken into consideration the extreme low rate of wages in the country, as compared with the wages of the journeymen laborers in the United States; and this alone must make an immense difference in cost of works of the kind executed in Mexico, whenever we base our estimates upon the costs of similar works in England or in our own country. ESTIMATE OF COST. Dollars. 125,000 Grading from Vera Cruz to the foot of the small ridge of 95,000 450,000 275,000 2,500,000 245,000 Six and a half leagues across the Barranca of Chichiquila. 1,300,000 Four leagues from San Cristoval to the city of Mexico, CHAPTER VIII. MEXICAN FINANCES. DISORDER OF MEXICAN FINANCES ENORMOUS USURY. CHAREXPENSES OF ADMINIS ACTER OF FINANCIAL OPERATIONS. OF THE distracted political condition of Mexico since 1809, has contributed largely to the proverbial impoverishment and financial discredit of a country, which, nevertheless, has during the whole intervening period, been engaged in furnishing an important share of the world's circulating medium. The revolutionary and factious state of parties; the unrestrained ambition of leaders; the violence with which they displaced rivals; their short tenure of office when they attained power and the consequent impossibility of maturing any permanent scheme of finance; the ordinary reliance of statesmen upon a large army, and the immense cost of its support; the continual and habitual recourse to loans at ruinous rates of usury; the comparative ignorance of domestic resources and their failure. of development in consequence either of intestine broils or the ignorance and slothfulness of the population, together with the plunder of the treasury by unprincipled demagogues and despots, may all be regarded as the basis of Mexican misrule and pecuniary misfortune. For nearly forty years every minister of finance has been taxed to discover means for daily support. Let us illustrate the system commonly pursued. On the 20th of September, fifteen days before the treaty of Estansuela, the administration of president Bustamante offered the following terms for a loan of $1,200,000. It proposed to receive the sum of $200,000 in cash, and $1,000,000 represented in the paper or credits of the government. These credits or paper were worth, in the market, nine per cent. About one-half of the loan was taken, and the parties obtained orders on the several maritime custom houses, receivable in payment of duties. The revenues of the custom house of Matamoros, had been always appropriated to pay the army on the northern frontier of the republic, but during the administration of General Bustamante, the commandant of Matamoros issued bonds or drafts against that cus 108 CHARACTER OF FINANCIAL OPERATIONS. tom house for $150,000, receivable for all kinds of duties as cash. He disposed of these bonds to the merchants of that port for $100,000 — and, in addition to the bonus of $50,000, allowed them interest on the $100,000, at the rate of three per cent. per month, until they had duties to pay which they could extinguish by the drafts. Another transaction, of a singular nature, developes the character of the government's negotiations, and can only be accounted for by the receipt of some advantages which the act itself does not disclose to the public. The mint at Guanajuato, or the right to coin at that place, was contracted for, in 1842, by a most respectable foreign house in Mexico, for $71,000 cash, for the term of fourteen years, at the same time that another offer was before the government, stipulating for the payment of $400,000 for the same period, payable in annual instalments of $25,000 each. The $71,000 in hand, were, however, deemed of more value than the prospective four hundred thousand. This mint yielded a net annual income of $60,000. These are a few examples presented in illustration of the spendthrift abandonment of the real resources of the country; and the character of the transactions at once discloses the true origin and continuance of national discredit. The demand of the hour was irresistible, and if the minister or the president was unable to comply with it, his political fate was sealed, perhaps forever. The isolated good or evil measures adopted by financiers, have only tended to augment the confusion. Each government, of the thirty or more which have swayed Mexico since her independence, has been forced to contend not only with its own errors but with those of its predecessors; and hence the public has naturally lost faith and hope in politicians as soon as they assumed the helm of state. No matter what the personal character, or what the financial talents of ministers might be, the people believed them to be immediately compromised or paralized by circumstances and political necessity. We will present the reader a view of Mexican national expenses, according to ministerial estimates during a series of years between the establishment of the federal constitution in 1824 and the war with the United States. This statement, in regard to a country which has been stationary in population and industry, with an augmenting outlay of money, is somewhat remarkable: 1825 the national expenses were $17,100,000 . 21,254,134 25,222,304 According to report of commissioners to Cham ber of Deputies in 1846, Period of Santa Anna's administration, These dates, it will be observed comprehend epochs in which the country has been governed by the federal system as well as those in which extraordinary powers were conferred on national magistrates. In the preceding yearly amounts, it should be recollected, that a few of them comprise occasional sums paid on account of the foreign and domestic debt; but, on an average, thirteen millions of dollars may be considered as the annual outlay. In consequence of this costly government of so small a nation, a large foreign and domestic debt has been created, in addition to the liabilities of New Spain prior to independence, which are calculated at nearly forty-two millions. In considering this interesting subject we have taken pains to obtain the best authorities from Mexico, and, from the reports of the ministers of finance, we reach the following results in regard to that republic's financial condition in the year 1850. Her foreign debt amounts to $58,889,487; her home-debt to $48,934,610; and her debt, prior to independence, to $41,983,096, making a total of pecuniary liabilities, with interest, to the 1st of July, 1849, of one hundred and forty-nine millions, eight hundred and seven thousand, one hundred and ninety-three dollars; the annual interest on which, alone, amounts to nearly nine millions of dollars. Inasmuch as the clear income of Mexico in 1849, was not calculated at more than five millions five hundred and forty thousand one hundred and twelve dollars, while the expenses were rated at thirteen millions seven hundred and sixty-five thousand four hundred and thirty-five dollars, there would necessarily be an annual deficit, in the mere current finances, of eight millions two hundred and twenty-five thousand three hundred and twenty-three dollars. This sum, added to the actual interest on the national debt, shows the total yearly deficit in Mexico, of seventeen millions two hundred and thirteen thousand seven hundred and fifty-four dollars; a sum larger than the present yield of all the mints in the republic. This frightful picture of national finances is now absorbing the attention of the Mexican people and congress; and it is to be hoped. that some wise plan may be devised to extricate the nation from |