Torrea to Mes, December 21, 1867

No. 3.

Department of Treasury and Public Credit.–Section 2.

The citizen President has well-founded motives for considering insubsistent the treaties which united Mexico with the powers who disowned the republican government of this country, and recognized the so-called imperial government which the French intervention pretended to establish, it being those powers who by such conduct broke said treaties.

As among those treaties figures the Spanish convention, it is in the same case as any of the others, and must, in consequence, be considered as insubsistent. The government, however, does not for this deny the obligation of the national treasury to pay the legitimate and recognized titles of this extinguished convention. All that it denies is that such obligation retains an international character, and that the terms of payment stipulated in a no longer existing arrangement should subsist.

In virtue of the liberty which it now has to fix these terms as may appear best, it has considered it convenient to determine that the redemption of the titles of the extinguished Spanish convention be proceeded with by public auctions. The first of these auctions will be held with the fund of $34,184 86, which is in the possession of yourselves or of Mr. Buch, being the balance of the sums received from the eight per cent, of the products of the maritime custom-houses, and which you will deliver immediately into the general treasury.

The subsequent auctions will be held with the funds which will be opportunely designated, there being only and exclusively admissible for this redemption the titles of the extinguished Spanish convention recognized as legitimate by the republican government, which protested against the Mon-Almonte treaty, and preferring for the redemption of those titles which are tendered by the most favorable bidder, i. e., those that are offered at the lowest price.

As in the, communication which, on the 29th of October last, you addressed to this department, and to which the present serves as reply, you stated that in the archives which are under your charge there exist paid coupons to the value of more than a million of dollars, you will be pleased to deliver the same into the general treasury, together with the respective accounts of the principal and interest of the extinguished Spanish convention.

By direction of the President I communicate the same to you for your intelligence and the consequent ends.