Mr. Pruyn to Mr.
Seward.
No. 19.]
Legation of the United States,
Caracas,
August 6, 1868.
Sir: I herewith forward to you inclosure No. 1,
a translation of a communication from the government of Venezuela.
Inclosure No. 2 contains a paper accompanying the said communication,
and a translation of the same may be found in inclosure No. 3. I have no
particular comment to offer on the above communications. I believe that
the ten per cent, offered is considered very little indeed by the
foreign representatives and foreign merchants generally. As a President
and a new congress are about to be elected, I venture to suggest to the
department the propriety of instructing this legation to try to have
some measures taken by them (the President and congress) to expedite the
payment of foreign liquidation claims, particularly those of citizens of
the United States. The minister of foreign affairs has desired me to
request my government to accept the ten per cent. arrangement, stating
that, as soon as congress meets, the present government will request
that body to take measures calculated to facilitate the payment of
foreign claims. The minister of foreign affairs has also requested me to
ask of my government that they should instruct the representative of the
United States at Paris to induce (conjointly with the representative of
England, Denmark, the Netherlands, Italy, and Spain, if possible) the
government of France to accept the ten per cent. arrangement above
mentioned. All of which is respectfully submitted.
I am, sir, very respectfully, your obedient servant,
Hon. William H. Seward,
Secretary of State, Washington, D. C.
[Translation.]
Señor Villegas to Mr. Pruyn.
UNITED STATES OF VENEZUELA, DEPARTMENT
OF FOREIGN AFFAIRS, CENTRAL BUREAU—No. 139.
Caracas, 4
th August, 1868, 5th and
10th.
The republic enters upon a new era. The nation, tired of seeing the
most pressing necessities of all governments neglected, even those
of its own existence and honor, showed itself discontented and
distressed, clamored for the remedy, and her complaints not
sufficing to obtain it, at last she rose up in arms and overthrew
the rulers who had placed their will instead of the law. The reform
of the public treasury is one of the principal objects of the
triumphant revolution. It would not fulfill this part of its
programme, it would not resuscitate credit without restoring its
value to official speech, without paying the most profound respect
to what is called public faith, without doing
justice to all rights. Here is what the men charged provisionally
with the general administration intend. As they proceed with perfect
good faith, not pretending to undo to-morrow the work of to-day,
they have devoted themselves to the study of the fiscal situation,
and, after frequent and mutual consultation, have decided upon the
plan contained in the basis annexed. It is what they are able to
offer as the result of their investigations, and of their desire to
discharge satisfactorily the duties that they have contracted.
Scanty have been the receipts of the custom-houses, which constitute
the only revenue of the union, and scanty will they continue to be;
but such as they are, the executive will divide them integrally
among those who may have a title to partake of them, in proportion
to what corresponds to each one. If it were possible to satisfy them
at once, nothing would afford greater pleasure. And to-day
circumstances inevitably prescribe another course. The government
delivers to its creditors what it has in order that they may go on
paying themselves in a slow but sure way,
[Page 960]
without the fear of sudden and unexpected
suspensions. The delay in the payments will become sufficiently
compensated with the solution of the corresponding interest, as even
great and opulent nations practice it, that,
so long as they insure the interest on the capital loaned, do not
think it important to provide for its redemption. It thinks that the
principles of the strictest honesty prescribe such conduct as well
to nations as to individuals; and that the creditors, in their
equity, cannot but assent to the inclosed proposition. The
government does not find itself in full and peaceable possession of
the custom-houses, nor has the resistance terminated of the
partisans of the fallen power. The expenses of the war are equally
considerable and urgent. Nevertheless, even in the midst of their
difficulties, the administration of the national interests turn
their sight towards the conventions infringed, the foreign affairs
neglected, bankruptcy, and want of confidence looked upon with
indifference, and as if it were to form a permanent state; and as a
consequence of all, the glorious name of Venezuela divested of the
considerations which were once extended to it. To raise it up from
this prostration, redeem its fame, insure the benevolence of
friendly nations, this is the object aimed at. For so rational as
just a purpose the co-operation and countenance of the contracting
governments must be relied upon and they are relied upon, the which
will not forget the crowd of old and new obligations that continue
overwhelming the treasury, and winch, if they remained buried and
completely forgotten, would justify him who
should bring against the revolution the charge of its not having
realized the principles that it inscribed upon its banner, which
inflamed patriotism, and led it on to victory.
On the other part it is evident that the effects of moral sentiments,
of upright intention, of probity and a sense of honor, are always
deserving of support.
We cannot refrain from doing that which, causing us no detriment,
redounds to the benefit of others. What shall be our duty when we
are asked for a thing that, if it benefits another, consults equally
our own interests?
Such is the plan proposed, the adoption of which will effect, to the
end of redeeming the liabilities of the republic, what is impossible
to reach by any other means.
It will be put into execution when the embarrassments referred to
terminate. Witness of the events of the republic, and endowed with
the knowledge and impartiality necessary to judge of them correctly,
it is to be hoped that the incumbent of the legation of the United
States will present to the view of his government a faithful picture
of the situation, which must, doubtless, have much influence in the
manner of entertaining the annexed basis.
The undersigned, minister of foreign affairs of the United States of
Venezuela, avails himself of this opportunity to renew to Mr. Pruyn
the assurance of his distinguished consideration.
Union and liberty.
Mr. Erastus C. Pruyn,
Incumbent of the Legation of the United
States.
[Translation.]
Bases which are proposed:
First. The government of the republic, inspired with the desire of
cultivating the most honorable and cordial relations with foreign
governments, and the necessity of attending to international
reclamations, already adjusted, or in the way of being so, that
ascend to several millions of pesos, and after having taken into
account that the ordinary revenues of the republic from imports
cannot be calculated now for more than $4,000,000 per annum, and
that the general arrangement of the treasury demands the equitable
distribution of the national income, so that all the liabilities
that weigh upon the treasury may be attended to as far as possible,
at same time as the indispensable administrative service; believes
it can only apply ten per cent. of said income for the reduction of
international claims.
This assignment will produce at present about half a million of pesos
per annum, but the preservation of peace would very shortly augment
the figures. For the most urgent expenses of the public service
sixty per cent. is required, with the remaining forty the different
branches of the public debt are to be attended to.
As this can be graduated to $75,000,000, without including that
arising from diplomatic conventions, and this latter will reach to
$5,000,000, it is easy to comprehend the advantage that is conceded
to it with respect to the other. It is proper, moreover, to bear in
mind that in the thirty unities appropriated to the public debt of
another character, foreigners will also have benefits, because some
kinds of it belong to them entirely, and in the other they are
interested for a large part.
Second. This basis being accepted by the foreign creditors, the
government will proceed to settle and liquidate at once all
reclamations pending, to the end that the
[Page 961]
mentioned fund of ten per cent. of the
ordinary income from importations be applied, in the first place, to
the payment of the interest of the whole debt, and in the second
place, to its redemption, rated at so much per pound, until it
becomes definitively paid off.
Third. For said appropriation of ten per cent. the government draws
its orders for all the custom-houses to deliver it to the
commissioners whom the creditors may designate, authorizing them to
discount the notes at the current rate in each market.
Fourth. For the greater convenience of the creditors, and with the
object that they may be able to put into circulation their
respective titles, the government will ask the national congress for
its authorization to issue titles of international public debt to
the amount of claims; the interest and redemption of which should be
paid in accordance with the preceding bases.
