The Mexican loan., April 14, 1865
The Mexican loan.
The undersigned, José Hidalgo, envoy extraordinary and minister plenipotentiary of his majesty the emperor of Mexico, and Count Carlos de Germiny, senator, appointed by his majesty the emperor Maximilian president of the treasury commission of Mexico in Paris, by a decree of the 10th of April, 1864—
Having examined the powers conferred the 26th November, 1864, by his majesty the emperor Maximilian, to Messrs. Corta, deputy in the Corps Legislatif; Barron, proprietor in Mexico; Bourdillon, a lawyer residing in Mexico; de Germiny, a senator, to contract a loan in Europe, their powers being countersigned by Don Joaquin Velazquez de Leon, his majesty’s minister of state—
We have decided and do decide as follows:
Article 1. There shall be inscribed in the great book of the foreign debt of Mexico a first series of 500,000 obligations, of 500 francs each, yielding an annual interest of 30 francs, payable on the 1st of April and 1st of October of each year, making a nominal capital of 250 millions of francs. The emission of these titles shall be at the price of 340 francs for the first interest coupon which falls due the 1st of October, 1865.
The rest shall be issued as follows:
| Francs. | |
| On subscribing 60 francs per obligation | 60 |
| From the 5th to the 15th June, 1865 | 80 |
| From the 5th to the 15th August, 1865 | 50 |
| From the 5th to the 15th October, 1865 | 50 |
| From the 5th to the 15th December, 1865 | 50 |
| From the 5th to the 15th February, 1866 | 50 |
| Total | 340 |
The coupon of 15 francs which falls due on the 1st of October shall be received in deduction from the entire fourth.
The holders shall have the privilege of discounting all the terms not due, at the rate of six per cent. profit per annum.
Subscribers not paying their instalments when due shall be charged an interest of ten per cent, per annum for delay.
Art. 2. The liquidation shall be effected every six months by lot The drawing shall be made by the treasury commission of Mexico in Paris, on the 2d of January and 2d of July of each year, so that the reimbursements may be made, within three months at most, to those having a right to them.
The first drawing shall take place on the 2d of July, 1865. In each half-yearly drawing every obligation drawn shall be paid in the sum of 500,000 francs; every two obligations, 100,000 francs; every four obligations, 50,000 francs: every sixty obligations, 10,000 francs; a certain number, the sum of which shall be determined in the annexed table, 500 francs. In this manner the loan will be paid in fifty years.
Art. 3. The Mexican government shall appropriate fifty annuities of the value of 18,756,340, to pay the interest on this debt and to extinguish it.
Art. 4. There shall also be granted to subscribers to the loan a premium for the repayment of the capital first paid up, to be paid in fifty years.
For this purpose the Mexican government binds itself immediately to set aside a sum of seventeen millions of francs in the French three per cents.
These funds shall be deposited in the French bank of deposits and consignments, and the interest shall be added every three months, as a duty of the establishment.
In case these funds at the end of fifty years do not represent a sum sufficient to pay the premium of 340 francs to whom it is due, owing to the fall of French rentes, the Mexican government binds itself to make up the difference; and if there is an excess it shall belong to the Mexican government.
Art. 5. The present decision is made in duplicate, one to be deposited in the archives of the treasury commission of Mexico in Paris, the other to be sent to his majesty the emperor Maximilian.