Stephen A. Hurlbut to Hamilton Fish, July 3, 1871

Mr. Hurlbut to Mr. Fish

Sir: I have just received a communication from Señor Zapata, in which he informs me that he has made application through the Colombian minister in Washington for an extension of time on the balance of the Panama claim. His proposal is to pay in equal annual installments, to be complete in four years. This government is at present bankrupt. Their whole available revenue is about $800,000; of this they have lost $250,000 by the failure of the Panama Railroad. They have been compelled to suspend all works of internal improvement; they have cut the army down to 1,000 men; have reduced all salaries 10 per cent. and it is simply impossible for them to pay as things now are.

The extension sought will be gratefully received, and is, I think, as safe an arrangement as can be made.

I am, &c.,