in a note of the 15th instant. (Inclosure 1.) On the 17th instant, Mr. Lafragua took occasion to express to me, in a personal interview, the high gratification with which President Lerdo had received your congratulations upon this event, so important in the history of Mexico, and in a note of the same date he acknowledged the receipt of my note of the 15th instant, in which he conveyed to me the sincere thanks of the President for the cordial congratulations which you had thought proper to address to him, and for the friendly sentiments which animate the people and Government of the United States with regard to the people and government of Mexico, a translation of which note I inclose, (2.) This correspondence was yesterday read in the National Congress by the minister of foreign affairs, by direction of the President of the republic, and after its reading, the president of Congress, in the name of that body, expressed the gratification with which the assembly had received the intelligence, and by a vote of Congress the correspondence was entered upon its journal. The minister of foreign affairs has also caused its publication in the official newspaper, and it has appeared in all the periodicals of this capital. I am, &c., [Inclosure 1 in No. 70.] JOHN W. FOSTER. Mr. Foster to Mr. Lafragua. LEGATION OF THE UNITED STATES, SIR: On the 30th of September last I had the pleasure of forwarding to my Government a copy of the amendments to the constitution of the United Mexican States, by which the laws of reform were incorporated into that instrument. In making this transmission I took occasion to characterize the event as the crowning act of triumph of the liberal government in its long contest with the conservative party. We I am gratified to inform your excellency that the Secretary of State, in acknowledging the receipt of my dispatch, states that "the Mexican government deserves congratulation upon the adoption of these amendments to its constitution, and that they may be regarded as a great step in advance, especially for a republic in name. have had ample experience of the advantage of similar measures, an experience, too, which has fully shown that while they have materially contributed to enlarge and secure freedom and prosperity, they have by no means tended to weaken the just interests of religion or the due influence of clergymen in the body politic." It is especially pleasing to me to thus convey to your excellency the congratulations of my Government on the great triumph of the Mexican people under the administration of President Lerdo, and to assure you of the deep interest and sympathy of the people and Government of the United States in all the efforts of Mexico to establish and perpetuate its republican institutions upon the basis of enlightened progress, and that they earnestly desire its peace, prosperity, and material development. I avail, &c., JOHN W. FOSTER. [Inclosure 2 in No. 70.-Translation.] MINISTRY OF FOREIGN RELATIONS, SIR: I have had the honor to receive your excellency's communication, dated the 15th instant, in which your excellency is pleased to state to me the following: that having forwarded to your government the decree which declares constitutional the laws of reform, giving to this act the character of a triumph of the liberal govern ment in its long struggle with the conservative party, it is gratifying to you to inform me that the Secretary of State of the American Government congratulates the government of Mexico on the adoption of those laws as constitutional amendments, which may be considered as a grand step taken in the path of progress, and that, though they will contribute to increase and strengthen liberty and prosperity, they do not tend to prejudice the just interests of religion. Your excellency adds that it is especially gratifying to you to transmit the congratulations of the Government of the United States on this great triumph of the Mexican people under the administration of President Lerdo, and to assure ine of the deep interest and sympathy of the people and Government of the United States in all the efforts Mexico makes in order to establish and perpetuate republican institutions. The President of the republic has received with special gratification the expression of the kind sentiments which animate the people and Government of the United States respecting the people and government of Mexico, which sentiments could not have been interpreted by a more estimable person than your excellency. The President is sincerely thankful, as well for the cordial congratulation which his excellency the Secretary of State has had the kindness to address to you on account of the proclamation of the amendments to the federal constitution, as for the ardent wishes which your excellency manifests for the consolidation of the republican institutions and of peace, and for the prosperity and material development of the United Mexican States. Long and terrible, it is true, has been the struggle between the society of the past, which had its being from the remnants of the colonial system, and modern society, which desires to live practicing democratic principles; for it was not easy to alter, in a short time, certain deeply rooted customs, nor destroy, without overcoming an obstinate resistance, the interests and properties profusely disseminated, and which were the most efficacious elements that could be offered against the establishment of any reform and of the consolidation of the principles which it has proclaimed. But reform triumphed, and its principles, clothed with the sacred constitutional character, form now an integral part of our political institutions. Rightfully, therefore, your excellency has called a great triumph that which the Mexican people have this time achieved. The people who, at the cost of so many sacrifices, have known how to conquer and defend their independence and liberty, have succeeded in establishing reform, and will no doubt know how to defend it, making all the sacrifices that may be necessary in order to preserve those inestimable blessings. I avail, &c., J. M. LAFRAGUA. No. 74.] No. 455. Mr. Foster to Mr. Fish. LEGATION OF THE UNITED STATES, Mexico, November 22, 1873. (Received December 12.) SIR: In my dispatch No. 6 I advised you of the ratification of a coutract by the Mexican minister of public works, with Mr. Edward Lee Plumb, as the representative of the International Railroad Company of Texas, for the construction of an extensive system of railroad-lines in Mexico. This contract was sent to Congress at the opening of the present session. Two other and similar propositions were submitted to Congress, one by the Mine Contract Company, of Pennsylvania, and the other by an organization entitled "the Mexican Railroad Company, Limited." The three propositions were recently referred to the President, with instructions to make a new contract with one of these companies, or with a combination of them. On the 21st instant the President decided the matter in favor of the Mexican company, thus rejecting the propositions of both of the American companies. Congress has decided upon a constitutional amendment, creating a senate or upper branch of the national legislature; and it is now engaged in discussing its powers and duties. The amendment will probably be submitted to the States before the adjournment. The authority of the federal government continues to be recognized throughout the republic. But an insurrection against the State government has been in progress in Sonora, which it is claimed is nearly suppressed. Similar armed opposition to the State governments exists in Coahuila and Yucatan. Since my last dispatch in reference to current events, the line of telegraph has been completed to the port of Acapulco, on the Pacific coast. The municipal exposition of this city, which had much the character of a national exhibition of manufactures and arts, has just terminated, and was attended with notable success as the first effort of that kind. I am, &c., JOHN W. FOSTER. No. 79.] No. 456. Mr. Foster to Mr. Fish. LEGATION OF THE UNITED STATES, Mexico, December 6, 1873. (Received December 29.) SIR: The consul at Tampico, under date of October 28, transmitted to me a communication from Mr. Edward Owen, consular agent at Tuxpan, stating that the jefe politico at Tuxpan had forbidden him, by authority of the Mexican consular law of November 26, 1859, the privilege of raising the American flag on national and feast days, but had stated to him that the President of the republic would, without doubt, grant the permission. Mr. Owen thereupon solicited me to make application for such permission. In a call which I made upon the minister of foreign affairs on the 26th ultimo I informally mentioned to him the above-stated facts, and requested, after he had conferred with the President, to be informed of the practice in this particular, and whether the Mexican government would expect a strict compliance with the law on the part of American consuls. On the 5th instant Mr. Arias, chief clerk of the foreign office, in the absence of Mr. Lafragua, stated that the President did not consider that he had the power to grant an express permission in violation of the law, and that he could not therefore comply with the request of Mr. Owen; but that the government never had enforced the observance of the law on this point, and that in this city and elsewhere throughout the republic it had allowed not only recognized consular officers, but even agents of governments with which Mexico had no diplomatic relations, to display their respective flags on national and other public days. The 30th article of the Mexican consular law of November 26, 1859, to which reference is made, states that "commercial (consular) agents can only raise the flag of their country when the place in which they reside shall be besieged, or when a mutiny or sedition shall have broken out in its midst." A copy and translation of this law, complete, was transmitted to the Department of State by Julius A. Skilton, esq., consulgeneral in this city, as an inclosure to his dispatch No. 52, August 15th last, to which the attention of the Department of State is respectfully directed. I am, &c., JOHN W. FOSTER. No. 87.] No. 457. Mr. Foster to Mr. Fish. LEGATION OF THE UNITED STATES, Mexico, December 31, 1873. (Received January 14, 1874.) SIR: The troubles in the State of Coahuila, between the governor and the legislature, continue, there having occurred during the past month further conflicts between the armed forces of the opposing fac tions, resulting in the defeat of the governor, who has sought the protection of the federal troops in occupation of Saltillo, the capital. The Congress of the Union has authorized the President to appoint a person, subject to its confirmation, to be intrusted with the administration of affairs in the State, and who will be supported by the federal army until elections have been held for members of the State legislature in the districts where vacancies exist, and until a full legislature may be assembled and settle the existing political disorders. The armed conflict in the State government of Yucatan also still continues, and federal troops have been sent to that State to restore peace. The most exciting topic which has occupied the attention of Congress during the present session has been the contract which the government entered into with the Mexican Railroad Company, operating the road from this city to Vera Cruz. The submission of this contract by the President to Congress for its approval elicited a strong opposition both to the terms of that instrument and to the present administration. After a bitter and protracted debate the contract was approved by a majority of five votes. It provides for a change in the tariff of freights, the extension of the Jalapa branch, appropriates $560,000 annually for twenty years from the receipts of custom-houses, to be paid the company, and other important modifications of existing legislation relating to that railroad. Hon. Leon Guzman, attorney-general of the republic, has tendered his resignation to Congress, on account of his opposition to the present attitude of the administration. The official journal of the government has announced that the Mexican minister at Washington has been instructed to make complaint to the Government of the United States in regard to the incursions into the State of Sonora, Mexico, of Indians from Arizona Territory. Señor Granados, chargé d'affaires of Guatemala, in this capital, has resigned his position, under instructions from his government; and he informs me that there is no probability that the vacancy will be filled until Mexico shall send a diplomatic representative to Guatemala. There are now in this capital permanent representatives of the Ger man Empire, Spain, and Italy, without the corresponding representatives from Mexico in those countries. I am, &c., JOHN W. FOSTER. No. 91.] No. 458. Mr. Foster to Mr. Fish. LEGATION OF THE UNITED STATES, Mexico, January 7, 1874. (Received January 28.) SIR: I transmit herewith a copy of the annual report of the Mexican minister of finance, (Hacienda y crédito público,) Hon. Francisco Mejia, or the fiscal year ending June 30, 1873, which is very comprehensive, and presents a valuable compilation of statistical information. The total receipts of the national treasury for the year aggregate $20,271,460, of which the two principal items are, from import-customs, $9,265,700 and from stamps $2,217,274. The total expenditures are $20,689,345. The public internal debt is stated at $11,464,273. The foreign debt is recog nized in the report as follows: English, $63,498,130; convention, $4,351,348; Spanish, $7,400,000; Padre Moran, $800,000; American claims adjudged by the mixed commission, $401,685.19; making a total of $76,452,163.19, which the minister estimates as $8.48 per capita of the inhabitants of the republic. I have found no classification or specific mention of the bonds issued by the republican government during the war of intervention, and now held by citizens of the United States. The coinage of the republic for the year ending June 30, 1872, was $19,891,928, of which amount $18,864,936 was of silver. I am, &c., No. 459. JOHN W. FOSTER. No. 93.] Mr. Foster to Mr. Fish. LEGATION OF THE UNITED STATES, Mexico, January 14, 1874. (Received January 28.) SIR Referring to my dispatch No. 91, January 7, transmitting a copy of the report of the Mexican minister of finance, I desire to direct your attention to the fact that although the report purports to set forth both the foreign and internal debt of the republic, there is no classification or mention of the bonds issued by the republican government during the war of intervention and sold in the United States, and which I am informed are mainly, if not entirely, held by citizens of the United States. Deeming the omission an important one, on the 27th day of December last I personally and informally inquired of Mr. Mejia, minister of finance, as to its cause; whereupon the minister informed me that a portion of these bonds were included in the statement of the public internal debt, though not specifically mentioned, and that the others were not included, for the reason that they had not yet been classified. He promised, however, to have prepared immediately a statement of all the outstanding bonds of the character referred to, which he would send to me by the 29th ultimo, but up to the date of closing this dispatch such statement has not been received by me. Inquiries have been made of me by citizens of the United States holding some of these bouds, but, in the absence of any instructions from your Department, I have not felt authorized to address the Mexican government upon the subject. No interest has been paid upon the bouds for a number of years. I am, &c., JOHN W. FOSTER. No. 97.] No. 460. Mr. Foster to Mr. Fish. LEGATION OF THE UNITED STATES, Mexico, January 23, 1874. (Received February 13.) SIR: The seventh Congress of the Union terminated its first session |