in charge of United States Legation to F. W. Seward, Assistant, April 30, 1867

Mr. Otterbourg to Mr. F. W. Seward

Sir: The army of General Porfirio Diaz, now for 12 days in undisputed possession of the environs and outlets of this capital, has during the last week with slow but steady progress been closing in about the city itself.

Already do the effects of a vigorous siege begin, to be suffered by the masses of the population, with whom the struggle to procure means of subsistence from day to day must too soon become, at the exorbitant prices attained for articles of first necessity, more than difficult, if not altogether impossible.

Contributions to the amount of $14,000 a day are levied in proportion to an arbitrary assessment of each individual’s pecuniary resources but as few are able promptly to meet such requisitions, the authorities fail not to wrench money from delinquents by processes which it would be vain to attempt to describe.

The current expenses, the pay and provisioning of troops are only partially covered, and the treasury continues to be empty; of one million of dollars produced, according to the report of persons with the best opportunities for information, by forced loans and contributions extraordinary and ordinary, no more than $300,000 has been able to be accounted for by those charged with the collection and distribution of the funds.

Commerce is suspended, business establishments, wholesale and retail, generally closed, and all social intercourse is at an end. Yet, notwithstanding the privations and sufferings hourly accumulating upon 230,000 inhabitants, shut up in this capital, so little unity of purpose or spirit of community moves the masses, that the longest experience in Mexican life could not set a period to a situation which days ago would have driven another population into tumult.

On the reiterated inquiries of American citizens into some mode of relief from the daily exactions of money, I at length resolved to call on General Vidaurri, named by Prince Maximilian at Queretaro his minister of finance and president of the ministry, with the intention to insist on an exception in favor of citizens of the United States from the terms of circular, enclosure No. 1. An abstract of what was said at this interview will furnish perhaps the clearest report of the course I have had to pursue in this delicate juncture of affairs.

I inquired of General Vidaurri whether he would hear my objection to the circular. Invited by his reply to continue, I frankly told him that the motive of my permanence in Mexico was to protect, in accordance with instructions from the government of the United States, the interests of their citizens within this consular district; I could not, therefore, while remaining here allow it by my silence to be supposed that the existing authorities had a right to exact from American citizens a contribution towards the support of the war now waged in Mexico; the payment of money for such an object would constitute them belligerents, in violation of the neutrality which, as was understood, is the condition of Americans residents here, and the negative advantage of which I could not consent they should forfeit against their wishes as expressed to me; if the minister of finance persisted in carrying into effect the dictates of his circular and my protest proves unavailing, I would leave the city rather than appear by my presence to submit to any measure that could interfere with the letter or spirit of instructions in regard to the protection of citizens of the United States. The chief of bureau here interposed with the remark to General Vidaurri, that if Americans were exempted, the subjects of other foreign nations would advance the same right to exemption. I answered, it was not my mission to discuss that point or to say how far other foreigners might be entitled to exemption; were they neutrals and not represented by an official in relation with the authorities, they ought, it appeared to me, certainly to be excepted; but that sacrifices, where required of foreigners, should be made by subjects of those governments which had acknowledged the power at this city and had, through representatives, manifested an interest in their maintenance; most assuredly such sacrifices ought not to be looked for from Americans, who were the only neutrals in Mexico. Admitting to General Vidaurri, however, that I had no authority to interfere where any American citizens voluntarily offered the quotas, in which they were assessed, I must, as long as the consulate was crowded by parties crying out against enormous exactions daily repeated, protest, as I do protest in the most solemn manner.

General Vidaurri here engaged to communicate in writing his reply to my observations, and, within a few hours, the original of enclosure No. 2 was received at the consulate.

On the 27th instant, not being disposed to incur the odium of farther exactions, enforced by the authorities to uphold a cause he considers hopeless, General Vidaurri declined to lend any longer his services in official positions where, as rumor declares, he has gathered large provision for himself against future vicissitudes.

Following the interview above reported, which soon became public through the anxiety of numbers interested in the result, the European representatives made it known, that if the circular was not withdrawn, they would demand their passports.

Enclosures Nos. 3 and 4 give the note upon this announcement and the reply thereto, in consequence of which relations are at this moment suspended between foreign powers and the authorities in the palace of the government, of which I was officially notified by the senior members of the diplomatic corps.

The action of these representatives plainly indicates a design to draw a distinction between European policy in Mexico and that of the United Statse, with a settled effort to cast upon our government the moral responsibility of the actual situation, and thus to force upon it a direct intervention in the affairs of this country.

A more immediate consequence of the verbal protest made to General Vidaurri was a communication, No. 5, from citizens of the Hanseatic League, resident in Mexico, which, together with my response No. 6, supplies the department with the necessary information upon this subject in view of what has been previously transmitted in despatch No. 25, of April 17th ultimo. Again urged by prominent liberals and others to negotiate with General Porfirio Diaz the departure of families from the besieged city, I have as constantly given the answer, that whenever the corporation, as legal guardian of the capital, should invoke an interference, my good offices would be employed in behalf of its helpless inhabitants.

My reply to the French minister, who called at this consulate to express his anxiety on account of Prince Maximilian’s personal safety, and in ignorance, as he said, of my instructions, desired an opinion of what might be done to preserve his life, was also to the effect that my services could always be exerted on the side of moderation and humanity.

Baron Magnus, minister of Prussia, is credited with exerting every effort to retain Prince Maximilian on the throne of Mexico, not from a regard to his interests, but rather to secure for Prussia the sympathies of Austria against France. The same minister has been encouraging negotiations with General Diaz, directed to secure guarantees for the remainder of the Austrian Legion in the service of Maximilian. To these overtures General Diaz has replied without variation, that if the Austrians disbanded and engaged no longer to serve as soldiers in Mexico, he would pay their expenses and look to their safe embarcation for Europe; otherwise, he would shoot them whenever they were caught in arms against the government of his country.

Impressed with the injustice of leaving American citizens to bear losses suffered by embargoes, and the arbitrary acts, civil and military, of the so-called imperial authorities, for which there is not even a remote prospect that the constitutional government will entertain any reclamation, I have endeavored, unofficially, to obtain from the treasury some indemnity for a class of wrongs which merit attention the more as the aggrieved parties were in the pursuit of pacific and ordinary occupations; and while encouraged in such unofficial exertions in favor of citizens of the United States by the tenor of despatch of January 12th, 1867, from the department to this consulate, in reference to the case of Mr. Charles Moorhead, I have been careful ever to avoid “any acknowledgment by implication of legal authority on the part of the empire of the French or the Prince Maximilian in Mexico.”

Regardless of the suspicion in which all foreigners are held, and the precaution taken by this consulate to anticipate any excuse on the side of the authorities to molest our citizens, two Americans have been arrested and are now imprisoned; the one, Mr. Pedro Daicour, director of a college, for many years a resident of Mexico, is accused of complicity in a conspiracy to seduce and deliver over to the besiegers one of the fortified gates of the capital; the other, M. B. C. Barksdale, editor and proprietor of the Mexican Times, a paper salaried by the ministry, of which the evidence exists in this consulate, is charged with the publication of seditious and subversive articles. My intervention in these cases has been, in the actual state of irritation against foreigners, restricted to insisting with the prosecuting attorney on the right of the accused to an early examination, and to be held to answer on bail, provided the evidence against them permitted, until a final trial of their cause could be had.

Two other Americans are reported to have left the city in the character of spies into the liberal camp, where they have been apprehended and are detained as prisoners.

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

[Translation.]

Ministry of Treasury: If the imperious law of necessity straitens the government to impose loans upon private individuals in order to provide itself some funds with which to cover the pay of the troops and to meet other expenses of war, which circumstances demand, it has been proposed at the same time that these sacrifices should not fall solely on a determinate number of persons, but on all who have any possibility of making them, according to their abilities, so that in this manner such sacrifices may be less burdensome to individuals, and that the entire amount which must be delivered may be paid in instalments, for the greater convenience of contributors.

To this end the government has provided that an assessment be made amongst all persons in this capital who have means sufficient to pay the amounts assigned them, which apportionment shall be equivalent in amount to the daily estimates for the troops, and some part of the most indispensable extraordinary expenses, the individuals assessed completing the said amount by the trivial advance which is absolutely necessary.

In virtue thereof and after having heard the views of various persons who merit the confidence of the government for their probity and their reputation they enjoy in public, I have assigned to you the amount of two hundred dollars ($200) daily, which you will place in the treasury without awaiting a call upon you for it, with immediate payment of the amount corresponding to four days, reckoning from to-day and successively every three days in advance.

This loan shall continue during the time strictly necessary, for as soon as the new contributions decreed commence to produce what is expected or other resources are provided, it shall cease altogether or in greater part; but, as exemptions or deductions cannot be granted, for they would lessen the amount reckoned upon each day, you must abandon every petition or representation directed to this end, because with pain I find myself prevented from giving them any attention, and I shall be obliged to communicate the facts to the most excellent lieutenant general of the empire, in order that he may dictate thereon the measures he shall think proper.

I desire sincerely that such an event should not take place, and that lenders avoid the vexatious proceedings and disgusts which measures of pressure employed by the military authorities generally produce.

I have repeatedly manifested the same to all who have attended at this ministry to discuss the subject, and on them it depends whether my purpose be attained or they suffer the consequences of a denial to perform the service which the situation demands.