Correspondence is so impeded in the disorganized state of this country, that I am without news from Tampico since the departure thence of Mr. Glennie. At that moment the British claimants had protested against the action and award of the judge, as also against the payments for legal expenses, and for duties to the Governor, and had refused the amounts tendered them.

It became, therefore, necessary in my reclamations to the Constitutional Government, to ask the entire sum, or such part thereof as may still be due.

With regard to the interest, at the rate of 12 per cent. per annum, I must first observe, that it has become almost a system during this civil war, to seize money in the interior to be repaid in Mexico or in Vera Cruz, by which an enormous rate of exchange is saved. It must also be remembered that the British sufferers will be exposed to a heavier loss than 12 per cent. by the failure of their remittances in England, and that there is but little prospect (I fear possibility) of their immediate repayment.

I think that you will concur with me under these circumstances, in deeming my demand requisite and just.

I am fully conscious of the difficulties under which the Constitutional Government labour, and I give them due credit for having, until these recent acts, abstained from the exactions so constantly perpetrated on foreigners by the Miramon Government.

But if poverty is accepted as an excuse for reparation, it becomes an incentive to outrage.

I draw, too, a broad distinction between the inability of a Government to continue its stipulated payments for the liquidation of its debts, and the alleged impossibility to refund money forcibly seized and plundered.

In such a case, Her Majesty's Government cannot, I apprehend, take into consideration the necessity of maintaining a large army in the field, which Señor Ocampo puts forward.

Indeed, such an excuse only furnishes additional evidence that both parties are intent upon carrying on their civil war with money plundered or exacted from foreigners and from foreign

commerce.

The Constitutional Government is in entire possession of the country, with the exception of the capital and Puebla, and has within their power the property of those who are in arms for and upholding their opponents, but they prefer to avail themselves, however unjustifiably, of the resources of foreigners.

Nor can I put out of sight the certainty that other nations will enforce their reclamations, and make sure of the prominent resources if our previous and stronger claims are not provided for.

In this disagreeable and difficult position I see no alternative

but in the forcible occupation of the Custom-Houses of Vera Cruz and Tampico (and, if necessary, of these places), should our just demands be rejected.

I do not perceive any ground for the apprehension that this course would be in any way injurious to British interests or commerce, or to British residents.

In this view, I took the liberty of suggesting to you, before the last packet, the question of applying for additional force to the Admiral on the station.

But at the same time, if thus clearly prepared for the disagreeable necessity of coercion, I entertain a firm conviction that the Constitutional Government will yield our demands, when they perceive that force will otherwise be used.

The offers made by Señor Ocampo prove (if they are honestly founded) that the Vera Cruz Government look to other large sources of revenue besides the import duties, and I am thus strengthened in my opinion that the circumstances of the case and the position of the country render necessary and justify my demand for the assignment of the part of the import duties at Vera Cruz and Tampico, free or hereafter free, from any Convention with foreign Powers, to Commissioners, who, after paying the legal expenses of collection, shall defray the admitted claims of Her Majesty's Government. Captain Aldham, R.N.

GEORGE B. MATHEW.

No. 13.-Mr. Mathew to Lord J. Russell.—(Rec. Feb. 1, 1861.) MY LORD, Jalapa, December 30, 1860.

I HAVE received yesterday, and this day, from Her Majesty's Consul in Mexico, accounts of important occurrences which greatly change the aspect of affairs in this Republic, and offer some hope of its better future condition.

On the 22nd instant, General Miramon, who had marched out with about 8,000 men, to meet the Constitutional forces under Gonzalez, Ortega and Zaragossa, in their advance upon the capital, suffered a complete defeat, and re-entered Mexico accompanied only by Generals Marquez and Cobos, and three or four officers.

At his request, the Spanish and French Ministers had an interview with General Ortega on the following day, in the view, I am informed of obtaining certain terms for his chief leaders and himself, but they failed in their object, and General Miramon and the most obnoxious men of his party fled, or concealed themselves during the night.

On the 25th, General Ortega occupied the city amidst general rejoicings, and Mr. Consul Glennie informs me that the most perfect order prevailed.

The laws of church reform, liberty of the press, and trial by jury, were proclaimed in force and President Juarez and his Government were daily expected.

I am induced to believe that the deplorable civil war waged by the clergy and their portion of the army against the principles of civil and religious liberty for the last 3 years is thus terminated; for although General Miramon, Marquez, and one or two others-still, unfortunately for the interests of humanity, at liberty-may carry on for a time a guerilla warfare, their atrocities have armed all men against them, and the want of resources from the church must preclude their gaining any ground.

But though I, therefore, conceive the main points on which alone the nationality of Mexico can be maintained are for the present secured, I am far from indulging in the belief of any certainty for the future, and cannot but entertain, indeed, great doubt as to the possibility of forming, without at least the weight of moral support from some foreign nation, any stable Government in Mexico.

Under the decree of Señor Juarez, given at Vera Cruz on the 6th of November last, calling a Congress under the Electoral Law of 1857, the members will be elected throughout the country, and a President of the Republic be named in the month of January, and Congress will assemble in the capital on the 19th of February.

The prominent candidates for the Presidency are Messrs. Lerdo, Ortega, Degollado, and Comonfort.

Upon the action of this Congress, and upon their mode of reforming the Constitution of 1857, the future of Mexico depends; but the difficulties in the way of any permanent peace are evidently great.

The number of restless spirits the civil war has called forth, the general disorganization and demoralization consequent on its atrocious character and on its duration, and the deplorable financial position of an exhausted nation, embarrassed further, as it will be, by immense foreign reclamations, the greater portion of which have arisen (and probably with design as a source of future trouble) from the acts of the church party, will place the new Government in circumstances of great difficulty and peril.

Lord J. Russell.

I have, &c.

GEORGE B. MATHEW.

SIR,

No. 14.-Lord J. Russell to Mr. Mathew.

Foreign Office, February 1, 1861.

I HAVE received your despatch of the 30th of December, reporting that the Liberal leaders, after completely routing General Miramon, had established themselves in the capital.

I had already informed you, in my despatch of the 12th ultimo, of the conditions upon which Her Majesty's Government, while still in ignorance of the result of the campaign, were prepared to acknowledge the Government of which Señor Juarez is the head. That Government would seem, by force of arms, to have made good its title to be recognized as the legitimate Government of the Republic; and Her Majesty's Government are disposed, subject to the acquiescence of that Government in the conditions specified in my above-mentioned despatch, to give to it the moral support of Great Britain but British subjects have sustained grievous wrongs at the hands of Mexico; and however friendly may be the disposition of the British Government towards that Republic, they cannot forego the many just claims of British subjects to redress for those wrongs.

G. B. Mathew, Esq.

SIR,

No. 15.-Lord J. Russell to Mr. Mathew.

Foreign Office, February 5, 1861. HER Majesty's Government approve the terms, as reported in your despatch of the 25th of December last, upon which Captain Aldham has arranged with the authorities at Vera Cruz that the latter shall resume payment of the assignments on account of the bondholders and the British Convention. G. B. Mathew, Esq.

SIR,

I am, &c.

J. RUSSELL.

No. 16.-Lord J. Russell to Mr. Mathew.

Foreign Office, February 7, 1861. I HAVE received your despatch of the 25th of December last, respecting the fate of the 400,000 dollars made over to Mr. Consul Glennie by General Degollado, as representing the amount of British property involved in the seizure by that General of a conducta of specie on its way to the coast.

The circumstances of the case appear to be that, on hearing of the seizure of the conducta, you despatched Consul Glennie to General Degollado with instructions to endeavour to effect the release of the whole of the money of which it was composed, and in which the merchants of other countries as well as of England had an interest; that Consul Glennie having failed in inducing General Degollado to abandon the whole of his booty, succeeded, nevertheless, in obtaining from him the estimated amount of the British interests, namely, 400,000 dollars, with which Mr. Glennie proceeded in safety to Tampico. On its arrival at that place, however, the money was attached by order of the Constitutional authorities on the ground that other foreigners had an interest therein; and when this attachment was removed a judicial sentence was

obtained at the instigation of a foreign Consular officer, in virtue of which the money was made over to a Committee of merchants for ratable distribution among the foreigners generally who had suffered by the pillage of the conducta.

Her Majesty's Government had been prepared to contend that under the circumstances which attended the cession of the 400,000 dollars to Consul Glennie, the exclusive appropriation of that sum for the satisfaction of British losses was a matter of unquestionable right. But as the case now stands any discussion on that point would he unavailing; and Her Majesty's Government must fall back on their original right to obtain full satisfaction from the authorities by whom General Degollado was employed, for a grievous robbery committed by that General on British property. Her Majesty's Government leave to other Powers to obtain payment as they may deem fit: but Her Majesty's Government will enforce from the Government of Señor Juarez, as they are fully entitled to do, complete compensation for British losses on this occasion, which seem to amount to somewhat more than 400,000 dollars.

Against the sum to be now claimed on British account there must, of course, be set so much as was appropriated to British subjects out of the 400,000 dollars; but you will at once apply to the Government of General Juarez to make an early settlement in regard to the balance due to British subjects; and you may say that, however reluctant we may be to press the new Government of Mexico, at the moment of its installation, for an immediate settlement of all outstanding British claims, the present claim is one for which the Government of Mexico, for the time being, is so clearly and directly answerable that Her Majesty's Government must insist on its being provided for without delay. G. B. Mathew, Esq.

(Extract.)

I am, &c.

J. RUSSELL.

No. 17.-Lord J. Russell to Mr. Mathew.

Foreign Office, February 7, 1861. As regards the plunder of 660,000 dollars of British property, deposited for safe-keeping in the house which you occupied up to the time of your departure from Mexico, I have to refer you to my despatch of the 12th of January, and to instruct you to make it clear to whatever Government may hold authority in Mexico when this despatch reaches you, that Her Majesty's Government will require from the Republic of Mexico, whoever may be its rulers, full and early repayment of the money so violently seized by the constitutional authorities in the capital at the time of seizure. G. B. Mathew, Esq.

J. RUSSELL.