Fostee to To the First Citizen District Judge of this Capital , present, December 30, 1876

No. 215. Mr. Foster to Mr. Fish.

Sir: At the date of my last dispatch on current events, the army of General Diaz was marching against the Iglesias forces in the direction of Querétaro. The campaign thus far has been a continued and uniform success for General Diaz. The first success was the defection of the advance guard of the Iglesias forces, which, upon the approach of Diaz’s army, passed over in a body to it without firing a shot. This was followed by the evacuation of Querétaro and its occupation by Diaz. About the same time General García de la Cadena, a revolutionary chief, who had control of the State of Zacatecas, and had a short time previously recognized Mr. Iglesias as provisional President, again “pronounced” in favor of Diaz, and transferred that State to his support. This was soon after followed by the revolt of the garrison of San Luis Potosi, which had also recognized Mr. Iglesias after the fall of Mr. Lerdo, and the States of Nuevo, Leon, Coahuila, and Tamaulipas are reported to have followed the example of the adjoining States. General Diaz is advancing from Querétaro, having occupied Celaya, and is now said to be in the vicinity of Guanajuato. En route he has reported the accession to his army of a number of detachments of the Iglesias troops; so that by all these accessions he has been very much strengthened, and Iglesias weakened.

Rumors have been in daily circulation of an adjustment between the two rival claimants of the presidency. It appears that a conference was held between Diaz and Iglesias ten days ago, but without any success. It is stated that Mr. Iglesias offered to make certain concessions as to the election of new federal powers, but General Diaz insisted upon the complete acceptance of the plan of Tuxtepec, which Mr. Iglesias declined to do, as he was unwilling to recognize in so unreserved a manner the revolutionary principle and practice.

The Diaz party now claim that peace will soon be restored, and that, too, without any bloodshed, as the popular sentiment is so plainly in their favor, and as the Iglesias army is so greatly reduced as to make resistance useless.

I have already referred to the fact that when General Diaz left this city to take command in person of the army he transferred the exercise of the executive power to his military second in command, Geueral Juan N. Mendez, who has remained in this capital discharging the functions of provisional president. He belongs to the Indian race, is a plain “haciendado” (farmer), without much experience in public affairs, but a person highly respected by and of great influence among the Indians of the Puebla Mountains, where the revolution had early and strong support. During his brief administration a number of important orders and decrees have been issued. In my No. 472, of the 8th instant, I transmitted a decree of General Diaz nullifying certain classes of contracts made by the Lerdo government. This decree has been made to extend to the acts of the Iglesias government also, as will be seen by the circular, of which I inclose a translation herewith.

General Mendez has issued a decree declaring closed to foreign commerce all the ports of the republic whose authorities have not recognized the government of General Diaz, and declaring that all persons making payments (custom duties) to such authorities will be subject to a second payment. I transmit a translation of said decree.

I also inclose a decree by which the judicial acts and decisions of the authorities of the Lerdo government are declared valid, but with numerous exceptions.

But the most important decree issued by General Mendez, as provisional president, is the one convoking elections, which embrace the three federal powers of the republic and of the States. This decree contains some notable provisions. It excludes from all candidature all persons who in civil or military grades have done anything to recognize the reelection of Mr. Lerdo, who have participated in what are termed the electoral frauds, or have voted in favor of the “extraordinary faculties.” These prohibitions will exclude from office more than three-fourths of the members of the last two congresses and of the supreme court, and a vast number of civil and military officials in all parts of the republic, among the most experienced and able of its public men. The persons elected are required to take an oath to support the constitution and the plan of Tuxtepec, by which latter provision all successful candidates must recognize the principle and practice of revolution as established by General Diaz. These provisions are very severely criticised by the opposition press, which claims that the odious electoral system of the Lerdo government, which the Diaz revolution was inaugurated to destroy, was much less illiberal and exclusive than the electoral decree just issued.

I inclose copies and translations of the decree and the manifesto by which it was accompanied.

In my dispatch No. 473 I referred to the partial failure of the revolutionary loan asked for by the Diaz government. It has abstained from any irregular exactions or forced loans, as has too often been the case with revolutionary leaders; but it has levied a general and uniform tax upon all classes of property of from 6 to 10 per cent, upon profits, which is estimated to be equivalent to about one-half of 1 per cent, on the value of property. It is expressly stated in the decree that from the proceeds of this tax will be reserved the sum required to pay the January installment of the mixed claims commission. The tax is general in its application to the entire republic, and is the third extraordinary tax levied during the past twelve months, two levies of 1 per cent, each having been made by the government of Mr. Lerdo.

I am, &c.,