Mr. Plumb to Mr. Seward.

No. 110.]

Sir: On the 21st of last month a conducta, carrying about two millions of dollars, left this city for Yera Cruz.

By an order, issued on the 17th of the month, by the minister of treasury, it was required that federal circulation and export duties should be paid upon the whole sum, in this capital, before leaving, with exception of seven per cent. of the total amount sent, upon which the federal and circulation duties alone would be charged.

The existing export duty is five per cent., circulation duty two per cent., and the federal duty one and three-quarters per cent. As all import duties are now required to be paid in coin, or its equivalent, at the ports, the requirement of the payment of export duties upon coin sent from here to Vera Cruz, whether the same was designed to be exported or not, with the exception of the small amount of seven per cent. of the sums forwarded, occasioned a great deal of unfavorable remark, but was submitted to by the merchants because there was no remedy available.

Coin cannot be sent from here to Vera Cruz by the merchants, except by a government conducta, and in any case federal and circulation duties have to be paid.

On the arrival of the conducta at Puebla, the merchants of that place and correspondents of houses here placed in it further sums of money for remission to Vera Cruz.

On the 21st of March, before the arrival of the conducta at Puebla, the governor of that State telegraphed to the minister of treasury for instructions as to what duties he should collect upon sums placed in the conducta at that city, with the specification of what would belong to the general government, and what to the State.

The minister replied the following day, the 22d, in these words: “All the duties of conductas belong to the general government, and are to be paid at the ports, in conformity with the law.—Romero.”

It will be noted that on the 17th, only five days before, an order had [Page 448] been issued requiring the duties on the funds leaving here to be paid in this capital.

On the same date, the 22d, the minister of treasury instructed the collector of customs at Vera Cruz to collect full duties on funds placed in the conducta at Puebla.

The governor of Puebla, it appears, did not obey the order of the minister of treasury, but required the merchants placing funds in the conducta at that place to pay there the federal and circulation duties, amounting to three and three-quarters per cent.

On the arrival of the conducta at Vera Cruz, the merchants, to whom these orders were unknown, were astonished to find the funds placed in the conducta at Puebla a large portion of which was in small coin and not suitable for export, charged not only again with federal and circulation duties, but also with export duty.

After remonstrances made by the merchants at Vera Cruz, and at this place, the government finally relinquished the charge of export duty upon the small coin and sums not designed for export, of the funds that had come from Puebla, but insisted that, as the governor had been instructed not to collect the circulation and federal duties at Puebla, the merchants must pay those duties over again at Vera Cruz, and collect them back from the governor at Puebla, who would be instructed to return them; thus making the merchants, who had no discretion in the premises, responsible, and the sufferers for the failure of the government to exact obedience from its own officer.

And in this manner the matter has rested.

As this affair very clearly illustrates the utter uncertainty and the embarrassment under which commerce labors in this country, and as the injustice manifested in this and other similar acts is alienating from the government its best friends among the merchants, I have thought it desirable to make this reference to the transaction, and to transmit to the department herewith translations of the orders referred to.

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

E. L. PLUMB.

Hon. William H. Seward, Secretary of State, Washington, D. C.

Order for payment of duties by conducta.

Department of Treasury and Public Credit.

The citizen President has thought proper to order that the treasure to leave on the 20th instant by conducta, for the port of Vera Cruz, shall pay in this capital the respective duties of exportation, circulation, and federal contribution, with exception of seven per cent, of the total amount that may be sent, upon which shall be exacted solely the circulation and federal duty, to the end that the commerce may dispose of that amount in said port as may be most convenient.

Independence and liberty! Mexico, March 17, 1868.

ROMERO.

To the Auditor charged with the administration of the revenue of the district.

By telegraph the governor of the State of Puebla states to this department, under date of the 21st of March, 1868, the following:

Citizen Minister: I beg you will have the goodness to state to me what duties are to be collected upon the treasurer that may be placed by the merchants of this place in the conducta, which is shortly to pass by this city, specifying what belong to the general government and what to the State.

R. J. GARCIA.

[Page 449]

By telegraph it is stated to the governor of the State of Puebla as follows:

All the duties of conductas belong to the general government, and are to be paid at the ports, in conformity with the law.

ROMERO.

March 22, 1868.

[Telegram.]

To the Collector of the Maritime Custom-house of Vera Cruz:

You will collect upon the treasure placed in the conducta at Puebla full duties, and retain the same at the disposition of this department, giving advice of the amount.

ROMERO.

March 22, 1868.

The collector of the maritime custom-house of Vera Cruz states to this department, under date of the 24th of March, 1868, as follows:

Citizen Minister: I do not know what are the duties you place upon the treasurer from Puebla, under your telegram of Yesterday.

I therefore ask that you will advise me in due time, so that I may be able to comply with your order.

J. A. GAMBOA.

To the collector of the maritime custom-house of Vera Cruz it is stated as follows:

Mexico, March 24, 1868.

Upon the treasure leaving Puebla, and that collected by the conducta at other points in its transit from here to your port, you will collect eight and three-quarters per cent. being the duties of five per cent. of exportation, two per cent. of circulation, and one and three-quarters per cent. of federal contribution.

ROMERO.

In a telegraphic dispatch to this department the collector of the maritime customhouse of Vera Cruz, under date of the 25th of March, states as follows:

I will comply with your telegraphic order to collect all of the duties upon the treasure placed in the conducta in its transit from Puebla, which collection, I understand, is to take place, although the permits may show that it has been paid at the point of departure, at least unless you direct otherwise.

J. A. GAMBOA.

By telegraph to this department the collector of the maritime custom-house of Vera Cruz, under date of the 5th of April, 1868, states as follows:

Citizen Minister: The conducta has arrived, and this custom-house will dispatch it to-morrow. According to the order of the department of the 24th of March, fall duties are to be collected here upon the treasure received in the transit of the conducta from the capital to this port; but as in the permits it is stated that the two per cent, of circulation and the federal contribution is already paid, the collection having been made by the officers dispatching the same, acting perhaps under the provisions of the regulations for conductas, I beg that you will be pleased to state to me if, notwithstanding this, I am to exact again the two per cent. and the federal contribution.

J. A. GAMBOA.

To the collector of the custom-house of Vera Curz it is stated by telegraph as follows:

Mexico, April 6, 1868.

As was opportunely stated to you, you are to collect all the duties upon the treasure placed in the conducta on its transit from here to your port, even though the permits state that the duty of circulation, which ought not to be collected at these points, has been paid.

The proper orders have been given that what has been so collected shall be returned.

ROMERO.

By telegraph it is stated to the governor of Puebla as follows:

It has reached the knowledge of this department that in that State there has been collected upon the treasure which left by the last conducta for Vera Cruz the duty of circulation and the federal contribution; and as these revenues belong to the general government, in conformity with the law of classification of revenues now in force, in virtue of which I timely directed that these duties should be collected in the ports, [Page 450] the citizen President directs me to state to you that you will be pleased to order the respective officers to return what they have collected under the two per cent, of circulation, and the federal contribution, as it has been determined that the said treasure shall pay all of the duties Vera Cruz.

Independence and liberty! Mexico, April 6, 1868.

ROMERO.

The governor of the State of Puebla, under date of the 6th of April, states to this department as follows:

The duties of circulation and the federal contribution collected upon the treasure which left here in the conducta have been collected, as has been the case with all the preceding, for the federal treasury, as I have taken special care that nothing that belongs to it shall enter the State chest.

The federal contribution just caused will go into the office of stamped paper, and the duty of circulation is in vigorous deposit at the disposition of treasury bureau, to which notice has been given.

The collection was made in punctual compliance with the decrees of the 23d of May, 1853, 11th of July of the same year, articles 12, 13, and 15 of the 12th of September, 1857, and the circular of the 4th of December last, without the employés of the State having used a single cent of the same, nor done more than observe the said supreme dispositions. If, notwithstanding this, and the provisions contained in article 15 of the said decree of the 11th of July, 1853, the citizen President insists that the return of the duties shall be made, I beg that you will be pleased to so state to me.

R. J. GARCIA.

In a telegraphic dispatch to the governor of Puebla it is stated as follows:

Mexico, April 6, 1868.

From the 15th of October, last year, it was ordered that all the duties of conductas should be paid at the ports, and it has so been taking place; finally, on the 22d of last month, I stated to you by telegraph that the duties of the last conducta which left this city were to be paid entirely at Vera Cruz.

For these reasons, and as the order of October annulled any anterior disposition, it is necessary that you should direct that the duties spoken of in your telegram of to-day shall be returned.

ROMERO.

The governor of Puebla, in a telegram dated the 7th of April, states as follows:

I have no knowledge, nor do I believe that in this government there has been, of the order of the 14th of October, to which your telegram refers. I have, notwithstanding, at once given orders to the administrador of the revenues to make the return of duties that you order, and I will advise you when that operation is concluded.

R. J. GARCIA.

In answer to your telegram relating thereto, dated to-day, and by direction of the President, I remit to you copy of the order of the 14th of October of last year, by which it is provided that all duties caused by the treasure taken by conductas to the ports shall be paid at the ports.

ROMERO.

Independence and liberty! Mexico, April 7, 1868.

The Governor of the State of Puebla.

The collector of the custom-house at Vera Cruz, in a telegram dated the 7th of April, 1868, states to this department as follows:

Citizen Minister: The order of the department of yesterday, that I have received to-day, relating to the collection of the entire duties upon the last conducta, will be duly complied with.

My inquiry of the 5th was occasioned by the resistance made by the parties interested to the double payment of duties, that is so far as relates to those of circulation and the federal contribution, which have been paid in the places of the transit where the treasure was entered, it being urged that, having already paid those duties, they could not be comprehended in the previous disposition of your department.

To-day, with the resolution which you have answered, I will oblige them to pay, as there can be no doubt they should, under the understanding that, if they refuse, I will order the treasure upon which the duties are exacted to be deposited in the customhouse, and will not permit its extraction until the duties are satisfied.

The parties interested pretend that there should be extended to them the same grace that was obtained from the government by the commerce of the capital, of the deduction of seven per cent. from the sum which each one receives, and that there shall not [Page 451] be collected upon this the export duty; and they also solicit that this duty shall not he charged upon small coin which cannot be exported.

As this is not within my faculties to decide, I submit it to the decision of the department, stating at the same time that in some of the permits issued from the capital which contained small coin, it appears that the export was collected.

J. A. GAMBOA.

By telegraph it is stated to the collector of the custom-house of Vera Cruz as follows:

Mexico, April 7, 1868.

Several merchants of your port have represented to this department that a great part of the sums taken by the conducta, in its transit from Puebla to Vera Cruz, consists in small coin that cannot be exported, and the rest is destined to remain in that port for the payment there of duties caused at the custom-house.

In virtue of this the citizen President directs that you do not collect export duties upon the small coin, nor upon the funds which in the permits are stated to be destined only for that port and not for exportation.

The duties of circulation and the federal contribution collected in Puebla have been ordered to be returned, and the governor of the State advises that he has ordered the same to be returned to the parties interested.

ROMERO.

Mexico, April 14, 1868.

True copies:

J. M. GARMENDIA, Chief Clerk.