Edward L. Plumb to William H. Seward, April 16, 1868

Mr. Plumb to Mr. Seward.

Sir: On the 21st of last month a conducta, carrying about two millions of dollars, left this city for Yera Cruz.

By an order, issued on the 17th of the month, by the minister of treasury, it was required that federal circulation and export duties should be paid upon the whole sum, in this capital, before leaving, with exception of seven per cent. of the total amount sent, upon which the federal and circulation duties alone would be charged.

The existing export duty is five per cent., circulation duty two per cent., and the federal duty one and three-quarters per cent. As all import duties are now required to be paid in coin, or its equivalent, at the ports, the requirement of the payment of export duties upon coin sent from here to Vera Cruz, whether the same was designed to be exported or not, with the exception of the small amount of seven per cent. of the sums forwarded, occasioned a great deal of unfavorable remark, but was submitted to by the merchants because there was no remedy available.

Coin cannot be sent from here to Vera Cruz by the merchants, except by a government conducta, and in any case federal and circulation duties have to be paid.

On the arrival of the conducta at Puebla, the merchants of that place and correspondents of houses here placed in it further sums of money for remission to Vera Cruz.

On the 21st of March, before the arrival of the conducta at Puebla, the governor of that State telegraphed to the minister of treasury for instructions as to what duties he should collect upon sums placed in the conducta at that city, with the specification of what would belong to the general government, and what to the State.

The minister replied the following day, the 22d, in these words: “All the duties of conductas belong to the general government, and are to be paid at the ports, in conformity with the law.—Romero.”

It will be noted that on the 17th, only five days before, an order had been issued requiring the duties on the funds leaving here to be paid in this capital.

On the same date, the 22d, the minister of treasury instructed the collector of customs at Vera Cruz to collect full duties on funds placed in the conducta at Puebla.

The governor of Puebla, it appears, did not obey the order of the minister of treasury, but required the merchants placing funds in the conducta at that place to pay there the federal and circulation duties, amounting to three and three-quarters per cent.

On the arrival of the conducta at Vera Cruz, the merchants, to whom these orders were unknown, were astonished to find the funds placed in the conducta at Puebla a large portion of which was in small coin and not suitable for export, charged not only again with federal and circulation duties, but also with export duty.

After remonstrances made by the merchants at Vera Cruz, and at this place, the government finally relinquished the charge of export duty upon the small coin and sums not designed for export, of the funds that had come from Puebla, but insisted that, as the governor had been instructed not to collect the circulation and federal duties at Puebla, the merchants must pay those duties over again at Vera Cruz, and collect them back from the governor at Puebla, who would be instructed to return them; thus making the merchants, who had no discretion in the premises, responsible, and the sufferers for the failure of the government to exact obedience from its own officer.

And in this manner the matter has rested.

As this affair very clearly illustrates the utter uncertainty and the embarrassment under which commerce labors in this country, and as the injustice manifested in this and other similar acts is alienating from the government its best friends among the merchants, I have thought it desirable to make this reference to the transaction, and to transmit to the department herewith translations of the orders referred to.

I have the honor to be, very respectfully, your obedient servant,