A special council was created to manage the consolidation and direct the custom-houses, appointing also agents therein, at expense of creditors, to watch the collection of duty on their behalf.[1] The issue of bonds for the new fund was fixed at forty million pesos, leaving an extorted gain for the treasury of nearly thirty millions.[2] But several circumstances combined to interfere with the plan which aimed foremost at restoring the national credit, while relieving a burdened treasury. There was not a sufficient surplus from the indemnity to meet the demands assigned upon it by the funding law,[3] and the prospect of guarantee for paying even the reduced interest appeared so slim that it assisted materially in raising a wide outcry against this partial repudiation of the debt. The proper step should have been to plan the reorganization of the finance department, notably by economic curtailments and establishing the necessary taxes for responding to the new funding law. Instead of this, a leap was made in the dark, with the result of exposing most glaringly the insolvent condition of the
- ↑ The council was to consist of six members and a president, holding office for six years, with a salary of $4,000 and $6,000 respectively. They had also to take steps against contraband. Regulations for this body were issued on Dec. 9th. For committee reports, preliminary to the new fund law, see Méx., Dictámen Comis. Crédito Púb. en que se propone proyecto, 1849, 1-18; Id., Arreglo de Deuda, 74 and lxvii. pp; Id., Dictámen de la Mayoria, 1-41; Pap. Var., clxxxi. pt 4, ccvi., pts 1-3.
- ↑ According to the account of the exuberant Payno already referred to.
- ↑ This required $5,995,000, besides more than $400,000 a year, while the surplus from the U. S. indemnity amounted to little over $4,0Õ0,000, Esteva's Espos. of March 28, 1851, on which, for that matter, new assignments were being made. The amount of the debt has been underestimated through lack of proper data.
created during the forced occupation of the United States war, 40 per cent would be paid from the indemnity and 60 in new bonds; of the floating loans with obligations, 35 per cent would be settled with the indemnity, and the remainder entered into the new fund at par, the accrued interest was cancelled, the convention of two and one per cent would be liquidated by paying half of its interest with the indemnity of 1851 and 1852; of the convention of five per cent 40 per cent would be settled with indemnity money, and 60 with new bonds; the debt owing to wounded soldiers and benevolent institutions would enter at par into the new fund. Méx., Legisl. Mej., 1850, 233-60, with forms for new bonds, special instructions, etc. Another law of March 4, 1850, had classified the debts to be included in the funds under 17 headings. See Id., 47-8.
