STRICTLY CONFIDENTIAL.

THE

TEXCOCO-HUEHUETOCA CANAL

PROPOSED AS A BASIS ON WHICH TO

ISSUE TREASURY MONEY.

AND TO

1

_ A NATIONAL SYSTEM,

TO

jto Diversify Home Industries,

PHILADELPHIA.
HENRY CAREY BAIRD & CO.,
INDUSTRIAL PUBLISHERS, BOOKSELLERS AND IMPORTERS,
810 WALNUT STREET.

i__o.

k/

At a meeting held at the office of the " Mexican Drainage Com
mission," 205 Walnut Place, Phila., on the 20th day of January,
1880, E. M. Davis moved that A. K. Owen, Civil Engineer, and
Wm. C. Crooks, be authorized and directed to prepare the manu-
script presented, and accompanying the report of the Civil Engi-^
neer — together with said report — for publication, and have the
same printed at the earliest day possible.
Adopted.

OFFICERS

205 Walnut Place, Philadelphia, Pa.

President.  E. M. Davis, Philadelphia, Pa.
Secretaries  Carlos de Olaguibel y Arista, Mexico City
Dr. W. C. Crooks.
Counsellors  Hon. Francis W. Hughes, Pottsville, Pa.
Miguel Hidalgo y Teran, Mexico City.
Treasurer  Dr. W. C. Crooks, Philadelphia, Pa.
Engineer  A. K. Owen, Chester, Pa.

Senor Don Carlos de Olaguibel y Arista and Sefior Don Miguel
Hidalgo y Teran, our colleagues in Mexico, approve of our plans,
not only in regard to the open canal, but agree that the ways and
means of payment suggested will become popular with the Mexi
can people, and that the whole forms the only mode which can be
made available under existing circumstances. From first to last,
your Engineer received from these gentlemen earnest co-operation,
and they expressed themselves as more than satisfied with the pro
gress made, with the radical change of thought effected in their
capital, and with the earnestness of the steps taken by the adminis
tration to put our plans into practice.
On the arrival of your engineer at the Mexican capital, Congress
had been in session over a month (from September 1 5th), politics
were running high, owing to the antagonism between factions
agitating presidential candidates, and numerous persons were
crowding the corridors in the palace and taking up the time ofthe
President and his Cabinet in argument of pending legislation; and,
in consequence, it was not till Oct. 2§.h that your Engineer and
Mexican Secretary succeeded in obtaining an interview with Pres
ident Diaz. We then presented translations of letters addressed
to him — one from our Commission, one from our President, one
from H. C. Baird, esq., one from Hon. William D. Kelley, one from
our Mexican Secretary, and one from your Engineer ; and subse
quently, we presented one from our American Secretary, and one
from our Treasurer. On this first- interview we had a talk last
ing an hour or more, looked over the profile and explained es
timates, but mainly dwelt upon the ways and means of payment,
and upon their great importance and upon their present and pros
pective uses to the Mexican people. Your Engineer need only add
that President Diaz thanked him for organizing our Commission,
assured him of his earnest desire to see the work inaugurated
while he was the Executive of Mexico, told him that he had given
additional study to the uses of Treasury money, said that he was
convinced that it could be issued and carried to success with his
people, and that he would submit the subject, as our Commission
had proposed it, to his Cabinet, and, with their approval, to Con
gress. In conformity with these assurances, President Diaz referred
the said papers to Sehot Fernandez, the acting Secretary of

Public Works, for his examination and opinion — it properly going
first under that department.
With Sefior Fernandez, whom your Engineer had known
socially and officially since March, we had frequent and long con
ferences, mainly in explanation of the ways and means of pay
ment. Seiior Fernandez's time, however, was so much taken up,
owing to the fact that Congress was sitting, that it was three weeks
before he reported the subject (favorably) to the Cabinet. It was
our misfortune that Senor Fernandez was not a Cabinet member,
and could not argue the subject before that body. He could but
report and leave the papers for their examination. The said papers
were then referred to Senor Garcia, the Secretary of the Treasury.
Your Engineer and Mexican Secretary had been explaining the
purport of our mission to Senor Garcia and to the other members
of the Cabinet, and had come to understand that all would sup
port the propositions except Sefior Tagle, the Secretary of Public
Instruction and Justice, who avoided seeing us, and which fact we
considered as showing opposition to our plans. However, about
November 15th, Gen. Gonzales, Secretary of War, and Mr. Tagle,
retired from the Cabinet, and Gov. Pacheco, and eventually Senor
Mariscal, took their places. Gen. Gonzales was one of our most
' earnest friends, and his retirement for a time greatly interfered with
our arrangements ; but as Gov. Pacheco was a personal friend of
Sefior Teran, we easily made his acquaintance and he became most
active in our support; and Sefior Mariscal, formerly Mexican
Minister at Washington and a friend of several years' standing of
your Engineer, and who was already familiar with the subject,
became a firm friend to our plans immediately upon entering the
Cabinet. Sefior Pankhurst, Secretary of the Interior, and Sefior
Garcia, Secretary of the Treasury, co-operated in extending cour
tesies to your Engineer, were always " at home " to him, both at
the palace and at their residences, and made special order that the
manuscripts which your Engineer and Mexican Secretary sub
mitted to the President and members of his Cabinet, be printed at
the expense of the Government, which, it may be stated, is an un
precedented compliment. Your Engineer herewith presents a
pamphlet (43 pages) written by Our Mexican Secretary, and pub
lished by the Treasury Department, in explanation of our ways and

means of payment, and which|has already been distributed to Mem
bers of Congress, and the heads of Departments ; and, also, the first
pages (24) of a pamphlet now being published by the Department of
the Interior, together with the original manuscripts of the same. It
was estimated that said pamphlet would fill eighty pages octavo,
and that it would be completed by the middle of January, 1880.
Our Mexican Secretary almost daily published articles in the local
papers in argument of our ways and means of payment, and it had
been arranged before your Engineer left, that he should publish
a weekly paper in Mexico city, exclusively devoted to Treasury
money and internal improvements. It was proposed to issue the
first number on January 10th, 1880. For the information of the
Commission, it may be stated that the said periodical was sug
gested by certain members of the Cabinet, and will mainly be sup
ported by official patronage until it is able to walk alone. Your
Engineer, also, took advantage of the public columns to advance
substantial arguments leading to the diversification of home indus
tries. Sefior Ruelas, Secretary of State, was a great sufferer, conse
quent upon a shattered constitution, during your Engineer's sojourn
in Mexico, but before leaving for his winter tour in the mild
climate of the Mexican gulf coast, he instructed his secretary to
say to your Engineer, that he had been greatly interested in our
plans as explained in Cabinet sittings, that he endorsed them in
full, and that'it was his earnest hope to see them carried out by his
people. This concludes the statement of the position held by Presi
dent Diaz and his advisers; and nothing is more assured than their
full and earnest support of the plans presented by our Commission.
It may here, also, be stated that certain influences are at work to
the end that a strong, active man be put at the head of the Depart
ment of Public Works — a man who will have this one purpose in
mind, to carry to completion the drainage of the Valley of Mexico
-as proposed by our Commission.
Herewith is submitted the bill presented by President Diaz to
Congress, asking for authority to issue $20,000,000 of Treasury
money. In lieu of a translation of this bill, it is onlv necessary fo say
that this Treasury money is to be issued for public services, and
to be a leg*d tender for all public dues (it is not constitutional to

9
make Treasury money legal tender for private debts), and in
amounts of $4,000,000. It is, also, expressly stated that before each
issue of $4,000,000, tljere shall be deposited by the President in the
Monte Piedad, the sum of $800,000 in Mexican coin as a means of
redemption. This bill was presented about ten days before Con
gress adjourned (Dec. 15th, 1879), ar*d would have passed had the
President insisted upon immediate action ; but owing to the new
ness of the subject and to the excitement it created, the President
consented to permit it to remain in committee until the reassem
bling of Congress, April ist, 1880. To show the confidence of
the administration in the passage of the bill, it is but necessary to
state that the government is now anticipating its provisions, and
has given orders that monthly deposits of coin be made to the
Monte Piedad, so that in April there will be the required $800,000
for the issue of the first $4000,000 of Treasury money.
From conversations with the Secretary of the Treasury and
other members of the Cabinet, your Engineer can assure the Com
mission that these gentlemen very well understand the principles.
of money ; that while they admit our philosophy and wish to
reach the simplicity of our proposed Treasury money, they have-
considered that it would be policy, at first, to conform a little to
popular prejudice, and seemingly to have a coin base to their paper
money ; but as early as possible they hope that their people will
see the uses of Treasury money loaned upon public works of na
tional necessity and redeemed with public services.
In Mexico legislative bills are not -filled with details and expla
nations, as is the custom with us, nor are different heads of depart
ment directed by Congress to do so and so ; but all bills direct the
President to carry into execution such general laws as may be
thought necessary, allowing him the largest liberty as to details.
Therefore it matters not that our plans of drainage are not men
tioned in the said bill, nor that our propositions relating to
Treasury money are not literally followed. It is sufficient for th'e
Commission to know that it was to carry into execution our sug
gestions that that bill was prepared and presented, and that when
it becomes a law, it is but necessary for the Secretary of Public
Works to enter into a contract with our Commission and for us to^
fulfil our part of that agreement.

10
On December 27th, from 5 to 6 p. m.Just before taking the cars
for Vera Cruz and for home, your Engineer had a special interview
with President Diaz. The conversation was entirely upon Treasury
money. He said that he had been waited upon by committees and
individuals, representing the commercial houses of Mexico, con
stantly since the said bill had come before Congress ; that the for
eigners were generally opposed to the issue of Treasury money,
but that he had fully calculated upon their opposition before intro
ducing the measure; that he had settled upon the merit of our sug
gestions and come what might, he intended to see that the credit of
Mexico was made useful to his people before he retired from the
executive chair ; that his Cabinet agreed with him as to the import
ance and necessity of such a step, and that he expected within a few
months to take your Engineer by the hand, and, in thanking our
Commission, to congratulate him upon the successful inauguration
of the drainage of the valley of Mexico and the issue of Mexican
Treasury money.
To further show the courtesy extended to your Engineer, it may
be added that a free passage was given him from Mexico city to
New York by the Secretary of War, and herewith is submitted a
late letter from Minister Zamacona in confirmation ofthe same.
The manuscripts herewith presented will go fully into the sub
ject, .being the same as have been printed by the Mexican govern
ment. Your Engineer owes much of his success in the Mexican capi
tal to the friendship and earnest assistance of Sefior Matias
Romero, former Mexican Minister at Washington, and twice Secre
tary ofthe Treasury of Mexico. Sefior Romero can be depended
upon as an adviser and friend of our Commission. Your Engineer,
also, takes this occasion to mention the valuable services, as trans
lator and Secretary, of Edward Herrera, former private Secretary
to Maj.'-Gen. Rosecrans.
•Your Engineer had not time to go outside of the capital during
his first two months there. After that he made a hurried excursion
across Lake Texcoco, along its eastern and southern shores ; to
Tlalpam to see the water power there going to waste ; to Chalco and
Amecameca, all of which he will be pleased to speak of in detail,
with maps, etc., when required. The cars are now running to

II
Huehuetoca and to Amecameca, giving additional advantages to
our Commission for the successful prosecution of their proposed
work. Herewith are submitted the itemized expenditures of your En
gineer for three and one-half months.
Your Engineer proposes to return to Mexico early in March, so
as to be there before Congress reassembles, and to remain there
until the bill now before them is passed, and the contract, as
agreed, is signed, sealed, and delivered to our Commission. This
may take five months (from Jan 15th, 1880). It is proposed to pub
lish the manuscripts in English which are now being published in
Spanish ; including a description of the Valley of Mexico, the
same addressed by your Engineer to F. P. Dewees, esq., in May
last, and which was partly published in the October number of
" El Comercio del Valle" of St. Louis. This will be a book of ref
erence for the members of the Commission, and will enable those
who wish to sell a part of their stock, to do so to advantage. It
will, also, give those persons from whom your Engineer desires let
ters, such persons as Wendell Phillips, Peter Cooper, Benj. F.
Butler, etc., a means of understanding the subject to which they
are asked to give their recommendation, etc.
Your Engineer asks that the Commission allow him — . — , per
month to meet his necessary expenses for publication, traveling,
etc., and that  be paid him now, and that  be paid him on
the ist of -March, 1880. Respectfully,
A. K. Owen.

Office ofthe Mexican Drainage Commission,
Philadelphia, September 25th, 1879.
To his Excellency, General Porfirio Diaz,
President of the United States of Mexieo.
I
Mr. President :
The undersigned officers of the Mexican Drainage Commission
have been authorized and directed by such commission to present
to President Diaz and his Cabinet, through Mr. A. K. Owen, the

12
Engineer of the Association, the accompanying bills for the drain
age of the Valley of Mexico, and to inaugurate, in conjunction
therewith, ways and means through the Secretary of the Treasury.
Our Engineer, Mr. Owen, is fully empowered to explain the views
of this Association.
We are further authorized and directed to say that in case the
said bills meet with the approval of President Diaz and the Gov
ernment of the United States of Mexico, this Association will
pledge themselves to prosecute the work with promptness and
vigor. We have the honor to be, with the highest sentiments of
respect, Your obedient servants, Charles M. DuPuy,
President.
F. P. Dewees,
Carlos de Olaguibel y Arista.
Secretaries.

West Philadelphia, October 3d, 1879.
Gen. Porfirio Diaz,
President United States of Mexico.
Mr. President:
Mr. A. K. Owen, who goes to your capitol to propose a national
work in conjunction with the issue of Treasury money, having. the
characteristics of what is popularly known as the American Green
back, is an intelligent disciple of what is rapidly becoming known
throughout the world as " The Pennsylvania School of Protection
and Finance.''
He is well known to Henry C. Carey, Henry Carey Baird and
myself, as a correct thinker and an earnest advocate of principles,
the prevalence of which we regard as essential to the building up
of States, by securing to their people well remunerated employ
ment. In 1 874 I found pleasure in submitting to Congress a plan pro
posed by Mr. Owen, for an Interoceanic Railroad across part of
this country and Mexico, and believe that in doing so, I planted a

13
germ which sooner or later will be of great and enduring benefit
to the people of both Republics. Though the work proposed
was different from that to which Mr. Owen now devotes himself,
the plan of payment was identical with that to be submitted to
your Government.
The American gentlemen associated with Mr. Owen are known
to me, and enjoy my confidence as men of capacity and integrity.
Commending Mr. Owen to your confidence, and his plans to
your favorable consideration, I remain Yours very truly,
Wm. D. Kelley.

Philadelphia, October zd, 1879.
Gen. Porfirio Diaz,
President of the United States of Mexico.
Mr. President :
Permit me to express to your Excellency, the high opinion I
entertain of the importance of the present mission of Mr. A. K.
Owen to your Capital. He goes not only with a view to urge
upon your consideration the undertaking of a great work of pub
lic improvement; but to endeavor to inaugurate an experiment in
a monetary system which has been tried with wonderful effect in
these United States, in France, Italy, and more recently in Russia.
The United States would have been quite unable to put down
the gigantic rebellion which threatened its existence, but for its
paper money ; France would never have risen from its ashes, as it
were, after its conquest by Germany ; Italy would not to-day be
a great and united nation; Russia would have been unable to
have carried on her late great war with the ease she did, but for
the issue of paper money.
The reason of the success of all these nations under this sys
tem is not far to seek. The first and greatest, the paramount need
of man, is association with his fellow-men — the exchange of ser
vices, commodities and ideas — and from this come all wealth and

all power. Man's exchanges are so complex that the intervention
of money — happily called the instrument of association — is imper
atively necessary. In the absence of a sufficient volume of this
instrument in any country, more labor power is wasted in a single
decade, than would be necessary to build up a system of internal
improvements surpassing that existing in these United States of
America, or Great Britain — square mile for square mile, and per
capita of population. I hazard nothing in saying that under a
properly regulated system of paper money, you can in the United
States of Mexico carry out a scheme of internal improvements
which will not cost your whole people a single dollar, because
it will be merely a saving fund for a great mass of labor power
which without it would be utterly and completely wasted. Few
statesmen have understood or appreciated the economic wasteful
ness of the enforced idleness of their people. If all nations did,
this world would soon become a human bee-hive, and happiness
instead of misery would be the rule — true civilization and its
accompaniments becoming almost universal.
The character of Mr. Charles M. DuPuy, who is at the head of
the Commission, and of Mr. Owen, the Engineer — both civil en
gineers of experience — is a sufficient guarantee that what they
undertake will be well and faithfully done.
I have the honor to be your Excellency's most obedient Ser
vant, Henry Carey Baird.

THE
DRAINAGE OF THE VALLEY OF MEXICO
AND THE
WAYS AND MEANS OF PAYMENT FOR THE SAME.

Gen. Porfirio Diaz,
President of the United States of Mexico.
Mr. President :
My associates and myself have studied the maps and data relat
ing to the valley of Mexico, and have determined upon a plan to
drain its waters, and to secure the capital of Mexico from the in
juries consequent to the want of a proper outlet for its sewerage.
The lowest part of the valley of Mexico, next to that of the
basin of Texcoco, is the site ofthe national capital, and it is neces
sary, under the circumstances, to drain the greater part of the
waters of the said basin* to meet the requirements of the case un
der consideration ; that accomplished, the fresh water reservoired
in the higher basins — in lakes Chalco, Xochimilco, San Cristoval,
Xaltocan and Zumpango — maybe controlled and guide'd to useful
purposes ; and the menace of destruction which they hold over the
properties of the Federal District can be permanently removed.
The drainage of the valley of Mexico is, perhaps, the oldest and
most important hydraulic work in the New World, and it has
been constantly studied, variously planned, and many times com
menced — in fact, the governments, priests, merchants, lawyers and'
engineers of five nations — the Aztecs, Spaniards, Mexicans,
United States-Americans and Franco-Belgo-Austrians — extending
*It is our design to leave a basin of thirty miles, or about one-third of the
present area, for the purpose of manufacturing salt and soda.
(is)

i6
through a period of, perchance, five centuries, and at a cost of
many million dollars* have figured and worked upon this project;
and, owing to the large amount of material necessary to be re
moved, to the time, to the expense, and to other causes, the drain
age, to all practical purposes, remains a dead letter ; and per conse
quence, the most valued estates in the valley of Mexico, are at
the mercy of overflowing waters, and the Federal Capital itself is
submerged in the pest of its own refuse.
It is not necessary, nor is it our intention, to go into elaborate
details with President Diaz on this subject. It is the best
known public utility in Mexico. We have studied the " dique"
and " tunnel" plans of the past and present. Each system
has been tried, and, in the hour of necessity, has not been
equal to its appointed duties; and for these and for more impor
tant considerations, not to be detailed here, we have put both
aside as not meeting the requirements of the case. To pump the
water out of the valley by any known method, is not practicable,
owing to the circumstances which surround the locality ; and the
plans made to intercept the water courses which flow into Lake
Texcoco by means of a canal, at a level sufficiently high to convey
their waters into the Zumpango basin and thence through Hue-
huetoca cut, in our opinion, would not prove satisfactory to the
people ofthe valley of Mexico:
Our plan is to cut an open canal, from the cross near the centre
of lake Texcoco, and on or about the line proposed by Enrico
Martinez, to a point near Boveda Real in the Huehuetoca cut.
The work, though large, is plain in detail, is simply a big ditch ;
and is difficult only in the proper management of the necessary
economic forces, and in the ways and means of payment.
We have noted the possibilities of the snows on Popocatapetl,
melting in a single night, .and of a water-spout bursting in the
south of the Valley of Mexico, as dwelt upon by Baron Humboldt;
but it is not our province to deal with such possible phenomena,
— we but treat the case as it presents itself in an average year, dur
ing three centuries of authentic records.
* From 1657 to the beginning of the present century, the cost amounted to $6,247,-
670. — H. B. Ward. The estimate of the whole cost of this gigantic enterprise, and
its necessary repairs, until the year 1830, is $8,000,000. — Brantz Mayer.

17
Assuming that there are 66% thousand million standard gal
lons* of water in Texcoco (there must, in fact, be much less),
which is equal to the quantity estimated by Baron Humboldt, in
1803, and taking the amount evaporated per day, as officially re
ported by the Engineers of the "Desague," to be 208 million
standard gallons per day ; then, in 320 days, lake Texcoco would
become a valley of mud, were it not fed by streams, springs, and
other foreign waters.f The question thus resolves itself into one
which will provide for the carrying off of a quantity of water equal
in amount to that which empties into' lake Texcoco; and when
a permanent outlet is opened sufficiently large, and at such an
inclination as will, without seriously impeding navigation, convey
twice as much water as in an average day collects during the rainy
season, we feel assured that the practical requirements of the case
will be met. The said quantity of water is officially reported as
equal to 256 million standard gallons. A canal 30 feet wide at
bottom, with slopes at sides of ^ to 1, or at an angle of 530 with
the base, with an inclination of 6 inches in 5280 feet, will be suffi
cient to meet the exigencies required. This will give a depth ot
over six feet of water during the average rainy season, and a cur
rent of about a mile and a quarter per hour — which is sufficient to.
remove the deposit of sediment and the growth of plants, and at
the same time will not seriously retard navigation against stream.
During the very dry season, if found necessary, a gate or weir may
be formed at the Huehuetoca end, so that six feet of water may be
retained in the upper section of the canal. The water from the
basin of Texcoco will flow out at a depth of about ten feet, with
a current of about a mile and a half per hour, and should empty
itself within six months. £
The material to be removed may, perhaps, amount to ten million
*Juan N. Adorno, C. E., in 1871, calculated the contents of Texcoco to be 52,800,-
000,000 standard gallons.
fThe evaporation in the Valley of Mexico, is estimated by Mr. Hay to be 57
centimetres a year. In 1859 and 1863, the water in lake Texcoco evaporated, leaving
a sea of mud, and but a small pool of water, near the cross in its centre.
tFour'months in the dry season, will be amply sufficient if necessary, for Texcoco is
salt water, which is heavier than fresh, and the air being less dense here than on the
sea level, the flow -will be faster than in ordinary cases.
2

cubic yards.* Estimating that every person employed will re
move two cubic yards per working day, then in 313 days, or one
working year (365 — 52 = 313), 16,000 persons, or their equivalent, \
7 would finish the main ditch. If each laborer were paid 50 cents per
day, then the cost would be '$8,000 per day, or, $2,504,000 for 313
days, required to open said ditch, which added to the 20 per cent.
($500,800) for the management of the same, equals $3,004,800. To
this must be added the cost of tools, etc. The cost and time for
the necessary appurtenances mentioned in the two bills herewith
presented, will depend entirely upon the character of the work
ordered by the Secretary of Public Works.
We do not propose to have the sewerage of Mexico city turned
into the said canal. Such would be against the intelligence ofthe
age. The sewerage ofthe city is valuable ; particularly will it be
useful to manure the bad lands in and adjacent to the Texcoco
basin, after the tesquesquite has been secured. The sewerage
may be made a source of permanent revenue to the Government,
as that of Paris is to France. Large vats should be excavated in
the basin of Texcoco, sufficiently removed from the capital, and
into these should flow all refuse matter of the vicinage ; and from
them the fluid may be pumped, or otherwise forced into acequias,
and conveyed where needed, while the settlings may be removed
in carts to the horticultural districts.
To take the water from the Texcoco basin, we admit, would
make a change for the worse in the moisture of the atmos
phere, were there not by a system of small canals, fresh water
brought to all sections of the valley, and in this way encourage
ment given to scientific agriculture, facilities given to communica
tion, to [the growing of trees, shrubs, and flowers, which would
more than re-instate the present moisture — would beautify and
purify every part of this, one of the grandest of the world's
valleys. We need not comment further, at this writing, upon the "De-
*If this should prove to be hard tepetate, lime, or basalt to any considerable extent,
then it may be sold by the Government for building purposes.
f A wire tramway, such as we have in the United States, will remove in this canal
60 cubic yards per hour. About forty such machines, working ten hours a day, and
aided by about 8,000 men, would do the work in a year.

19
sague " proper. It is to the ways and means of payment to which
we particularly wish to invite the attention of President Diaz.
Mountains and rivers no longer form insurmountable barriers to
the engineer. In Peru the locomotive engine carries its train of
freights and passengers to a height of 15,568 feet, which is only
4 feet less than the uppermost crag on Mount Blanc; tunnels
pierce the Alps ; cables cross the oceans ; galleries pass under the
Thames and Detroit rivers; and the Zuyder Zee, an area of 500,000
acres of ocean, is to be diked and pumped out at the rate of 1,716,-
000,000 gallons per day, and yet even at this rate it is a work of
16 years. There are, however, $67,000,000* for the payments of
the labor required, and the engineer, with the eyes of the scientific
world upon him, advances as calmly to carry out his estimate, as
he would to the drainage of a mill pond, so great are his resources
from machine combinations united with manual labor and experi
enced brain force. So long as the ways and means of payment are
secure and ready, the engineer is confident of effecting the required
results, be they what they may.
The ways and means of payment for national works of public ne
cessity, then, are the greatest and most essential question of our age
and race. Your commissioners have studied and solved the prob
lem, as surely as Edison has that of the electric light, and we
herewith present a bill, complete in details, which will furnish
ready, secure and cash payments to finish the all-important and
much-required drainage of the valley of Mexico, without really
taxing the people of Mexico one cent ; and the friends of human
liberty throughout the world have earnest hopes to see this correct
principle inaugurated by the Mexican Government, for and in the
interest of the Mexican people.
Baron Humboldt says : " The plan of the Engineer Martinezf
was rejected in 1607, purely because it was suppos'ed that a cur
rent ought to have a fall of half a metre in a hundred. Alonso
de Arias then proved on the authority of Vitruvius that to convey
the water of the lake of Texcoco into the Rio de Tula a prodigious
* This money will be returned to the government from the sales of the land thus
given to agriculture.
\ This engineer had proposed an- open cut from Texcoco Lake to Boveda Real, giv.
ing a fall of 2 in 1,000.

20
depth would be requisite tor the new canal, and that even at the
foot of the cascade, near the Hacienda del Salto, the level of its
water would be 200 metres below the river. Martinez could not
stand against the power of prejudices and the authority of
the ancients!" Had the people in Mexico been awake to
progress and to public interest, and not have wrapped themselves
in old fogyism and looked to the ancients for their engineer
ing, that truly great engineer, Enrico MaVtinez, nearly three cen
turies ago, would have completely solved the question of the "De-
sague," and have saved millions of money, and hundreds of thou
sands of lives, to the Mexican nation ; for time and progress have
long since proved that Martinez was right, and that his judges and
the ancients were wrong; and it is sincerely hoped that this
lesson may not go unlearned, and that those of our day will put
aside their prejudices against innovations — will be mindful of the
confusion, irresolution, expense^ and non-success which have at
tended this project thus far, and not quote the " Scriptures " and
the " authorities " to confound themselves, and to prevent the true
Mexican Republicans from carrying this much-needed work to
completion, without further delay and expense.
The purpose ofthe gentlemen of your Commission in coming to
Mexico is their earnest wish to put into practice a ways and means
of payment, in accordance with progress and science — a system,
the details of which they have matured only after years of patient
and disinterested study and discussion. They claim for their plan
of payments equity, simple and plain. Nature's laws are simple
and plain — equity is their one characteristic ; under like conditions,
without a saving clause, nature's laws treat the rich and the poor,
the giant and the dwarf, the official and the citizen, uncompromis
ingly the same; and man's statutes approach justice as they come
near to nature's rules.
It is claimed first that the proposed -Treasury money is engraved,
stamped and issued by the Government, and thereby that the most
imperative prerogative belonging to National power — .that that
power which stamps, issues and declares what shall be money — is ex
ercised and preserved in the true interest of each and every citizen.
Second, that said Treasury money is based upon services received
by the people. Without labor there can be no wealth, and, there-

21
fore, this Treasury money rests upon the source of all capital. Third,
that the work executed is national in importance, and when com
pleted its uses are so essential to the every day necessities of the
people that it redeems, by its services, the Treasury money which
has been paid for its completion ; and, after it has thus fully
cancelled all the said Treasury money and bonds (service for ser
vice) it will become a permanent source of revenue to the govern
ment, and a positive means of lessening direct taxation, local and
national. Such a Treasury money will be supported by all true Republi
cans and well-disposed studious people ; and it will be opposed by
all monarchically-inclined persons, by privileged classes, by smug
glers, by bank-credit mongers, and by those who uphold England's
tyrannical system of " gold-basis" despotism — that metallic-coin or
" pot-metal" system, which has come down to us from the " Dark
Ages," and by which so many generations have perished, misera
bly crushed, victimized, robbed and murdered.
The special manufacture of the paper, the careful engraving,
the systematized rules for checking and counter-checking, the offi
cial stamping and counter-stamping, the guarding and counter-
guarding in issuing, and the certain death which awaits every
one who attempts to counterfeit the said Treasury money, pro
tects it with such safeguards as no other money, paper or metal,
ever had.
The said Treasury money is issued in denominations according
with the money of account used in the daily retail exchanges ofthe
Mexican people ; for it is the smaller pieces of money which serve
business men best. The bonds are issued in denominations as
low as five dollars, for the purpose, of encouraging the Mexican
laborers to lay away their net earnings — as France, by means of
five-franc "rentes? educates her peasants to become capitalists.
The said bonds are equal in amount to the said Treasury money, so
as to accommodate persons who will have to pay assessments,
tolls, and other taxes which will grow out of the privileges given by
the said canal. These persons will strive to obtain the said Treasury
money that they may invest in and lay aside the said bonds, that
they may cancel said payments when they fall due ; for said
bonds not only draw an interest of five per centum while held,

22 ,
but in the said payments they are received at a premium of
five per centum over all coin. The said bonds will become a
favorite investment in many ways for the^Mexican people, for they
are current payments for all public dues, and are convertible, with
accrued interest, semi-annually in said Treasury money, and, there
fore, can never be a loss or an inconvenience to the holder. They
will be useful to the government by absorbing any excess of
said Treasury money, which, owing to the greatness of the work
and the limited ,time given to complete it, might otherwise dis
turb the prices in the valley. With said bonds, however, rapid and
temporary funding is encouraged, and the system will be found in
practice to be without a defect. The capitalist will, by means of
said current, interconvertible bonds, be able to put his money " on
call" at five per centum; the guardian of the widow and minor
heir, and the trustees of public, private, and corporate funds, will
be glad to have an untaxed, interest-bearing government security
to invest in. Five per centum is a large interest for a government
interconvertible security, we admit ; but the equity of the system
is seen, however, upon examination ; for the laborer on the said
canal is the one who first holds the said Treasury money, as it can
not possibly be issued but to him or in exchange for said bonds ;
and the said bonds can only be issued in exchange for said Treas
ury money, or in payment for labor on said canal ; therefore, the
said laborer has the first choice with the said bonds, and five per
centum per annum pays him one real for the use of five dollars of
the said Treasury money every six months. Again, the said bonds,
if any should be outstanding after five years, are at the call of the
government, and they must be paid off and cancelled by the gov
ernment before ten years — the coins received for government lands
in the valley of Mexico, and for other services rendered by said canal
and ils appurtenences, being by law set aside for such purpose.
When the said Treasury money comes back to the government for
dues in ways other than through their base of issue, i. e., through
other services than those rendered by the said canal and its appur
tenances, it will be paid out again in cancellation of the current
expenses of the government, just the same as with other moneys.
But the said Treasury money and bonds will be rapidly cancelled
in payment of services rendered by the said canal and its appurte-

23
nances, for it is in these payments* that said Treasury money and
bonds are worth a premium of five per centum over either gold or
silver coins. Money always goes and remains where it has the
most uses, as water runs down hill. The value given to the pub
lic lands now overflowed with water, the sale of soda, salt, etc.,
which will . be collected by the government from the Texcoco
basin, the assessments on private properties improved, the taxes
for sewer privileges on every residence in Mexico city, the tolls
and other payments levied for advantages and improvements grow
ing out of the uses of the said canal and its appurtenances, are
estimated by those who have reported on the subject to amount to
three or more million dollars, even one year after the said canal is
made.f It is thought that in at least five years after the comple
tion of the said canal and its appurtenances, every dollar paid
out for the construction of the same will be cancelled by its direct
services to the Mexican people.
We need not dwell here upon its indirect benefits to those living
in the Valley of Mexico — it is impossible to set a dollar and cent
valuation upon the increased health,! and upon the industrial,
moral and intellectual advancement which would be given- to the
people, and upon the added attractions which would characterize
the valley of Mexico.
The loss consequent to current money — loss' by fire, by accident,
by carelessness, etc. — will amount to eight or ten per cent, of the
amount issued ; and this loss, though it is to be regretted, is so
* The employment of bank deposits or credits is confined chiefly to the narrow cir
cle of bank depositors and dealers in securities ; but bank notes take a wide range of
circulation in various subdivided amounts. Their proper tendency is always to ihe bank
which issues them; its notes and deposits are the proper fund to pay debts to a bank, and
are of course eagerly sought for by all its debtors"
y The enhanced value of the lands, etc., of the valley of Mexico after the ' Desague'
is completed, is estimated at $30,000,000."
% The increasing mortality in the city of Mexico is becoming alarming, and nearly
every disease turns into a fever.
The mortality in Mexico is over 3^ per cent, which is greater than that of London,
Paris, Stockholm, Copenhagen, Munich, Lisbon, etc., although ils population is but
260,000, and it occupies one of the most healthy plateaux in the world. As fevers
originate for want of proper drainage, an eminent English engineer says that for
every person who dies of typhoid fever some one should be hanged.

24
much" gained to the government; i. .., there will be that amount
less to be redeemed by the services of the canal and its appurte
nances — which will more than amount to the necessary appropria
tion to engrave, print, stamp, and issue said Treasury money and
bonds. In regard to the 20 per centum on the gross cost of the canal
and its appurtenances, which the Commissioners receive for their
plans, superintendence, etc., we wish to say, that it is a custom in
Europe to pay the engineer* 5 per centum on the gross cost ofthe
work he plans, besides his salary, etc. ; and in the United States a
contractor allows himself 25 per cent, profit on the gross cost of
the work he undertakes. Your Commissioners are nine in number,
and they not only act as engineers and contractors, but furnish all
tools and machinery required from foreign States, at their own
risk, taking in payment the said Treasury money or bonds, at par,
on the delivery of the same in the harbor of Vera Cruz. They
are gentlemen of middle age, of business and social standing, have
national reputations as leaders in financial and industrial reforms
in the United States, and three of their members from the United
States are capitalists ; but they do not intend to bring one dollar into
Mexico to use directly in the accomplishment of the proposed work ;
. in this respect they differ diametrically from all who have preceded
them, and we trust that their usefulness to the Mexican people
will, also, differ diametrically from that of those who have uni
formly come " with millions to spend for the good of Mexico." Your
Commissioners propose simply to assist the Mexican government
to put into practical service the credit of Mexico, and by its uses^ to
make it essectial at home and respected abroad. If these gentlemen
of the United States have sufficient confidence in the government
of Mexico to come over 2,500 miles from their homes and from
their established businesses, and to give their time and services to
Mexico, and to take in payment the Treasury money of Mexico, at
par, where is the boasted patriotism of the Mexican Republicans, if

* In the Merchant Marine the owners always allow the captain a certain per centum
upon the gross amount of business done.
'f We do not intend to make said Treasury money a legal tender for private debts. It
is not to be forced in any way upon any one. It is a money at peace, not of war. It
is a money based upon construction, not upon destruction.

25
they refuse to earnestly co-operate with such personages and
friends? The interests of your Commissioners and of the Mexican
people are so interwoven — are so mutually bound together in the
completion of the said canal by the means suggested, that there
can be no intelligent doubt of the earnestness of the former ; for
if they do not complete the work they undertake, it is very evident
that the Treasury money they accept in payment, will be useless ;
for money to have a value must have its uses, and if the said canal is
not completed so as to carry out its appointed purposes, the said
Treasury money will not have its greatest uses nor its only true
source of redemption ; and, per consequence, must become of no
value; and the business- standing, the time and preliminary ex
penses of your Commissioners, will be lost. But by giving
your Commissioners 20 per centum interest in the completion of
the " Desague," they will use their every effort to make the same
useful to the Mexican people, and thereby to keep the said Treasury
money at par with metallic coins.
In the United States" there is a political organization known as
" The National Greenback and Labor Party," which now polls over
two million votes. Its platform is based on Treasury money, its source
and basis of issue. Among the gentlemen who organized that Party
in 1873, are several members of your Commission. The Chairman
of the Executive Committee of the National Greenback and Labor
party, Mr. Dewees, is one of the Secretaries of the Commission.
Mr. Buchanan, one of the attorneys of your Commission, headed
the first organization in Indiana, and called the First National Con
vention of the said party, at Cleveland, Ohio ; and Mr. Baird (who
writes President Diaz a letter), Mr. DuPuy, Mr. Davis, Dr. Crooks*
and myself, formed and led the movement in Pennsylvania. The
moral, and, if neccessary, the physical support of this great and
progressive ' phalanx of thoughtful, determined men, will sustain
Mexico if she but inaugurates a practical test of the principles
which are the basis of their organization, of their lives, and of
their hopes. In every district in the United States, there will be
meetings called and resolutions passed to sustain Mexico in her
effort to inaugurate a perfect money based upon labor received, and
redeemed with public services returned by the Government.f
* Who has recently become a member of your Commission.
+ The reason governments are always in difficulties, is the fact that they are always

26
Never before had a government the opportunity which Mexico
has to-day, to become self-dependent and entirely free from other
nations — industrially, commercially and financially. Never before
had the leaders of a nation so favorable an opportunity as the pres
ent, to take an essential step in behalf of the true interest of their
suffering people, as have President Diaz and his Cabinet.
Put the people to remunerative and useful employments, be the
cost what it may, is the fundamental principle of statesmanship.
Labor is the source of all wealth ; the people are the only strength
of governments. To better the condition ofthe masses, therefore.
should be the one and determined purpose of Republican power.
Laws in all times past, both in monarchies and in so-called repub
lics, have looked out but for the rich and privileged classes, and
have encouraged the saving of money; and the husbanding of in- •
significant pieces of silver and gold has been the sole care of states
and the only study of rulers — while labor, the true source of
wealth and strength in all governments, has been despised, ostra
cised, plundered, ruined, and driven to premature graves. The con
sequence is that past and present states had and have their founda
tions built upon sand, and have been and can be but ephemeral. The
Treasury money advocates of the world demand a halt in the affairs
of man. They have heard the cries of distress and anguish which
have come up from the hard-working and honest men, women and
children through sixty centuries of cruelties and wrongs, and they
demand equity, simple and plain, to the producing classes of the
earth. It is a noble mission now offered to' Mexico to become the
standard bearer of equity in payments, and to advance in the interest
of her wretchedly conditioned people, and to utilize and direct their
labor to individual prosperity, and to national aggrandizement. The
unjust. They always demand the services of the people, and yet are never will
ing to give in return equal services. When a person renders a service to his govern
ment and receives Treasury money in cancelment of the same, why, IN THE NAME
OF JUSTICE, cannot the government receive that Treasury money in return for dues
which it exacts from the persons who hold it? And if the government receives the
said Treasury money at par, why should not those in the employ of the government, its
clerks, its heads of departments, its officers and its soldiers, receive it in full cancelment
of their dues ; for how do their services need to be distinguished from the services
of the laborer on the public works, from the services of your Commissioners and from
the services of the manufacturers who send their machines from the United States. " The
justice of exchange is maintained when equivalents are rendered.

27
Texcoco-Huehuetoca canal will, in fact, be a saving fund for Mex
ican labor, which otherwise would be wasted for want of proper
direction; and as this is a practical step, just the opposite of giving
the first care to creating funds for the saving of money, which has
been so long and so uniformly associated with antagonism, confu
sion, bloodshed and ruin, may it not be reasonable to calculate that
just an opposite result — that harmony, order, peace, and prosperity
— may be realized ? The said canal may be made the basis for a
perfect financial system, which will do more to rectify the present
ills of society and crimes of government, than any work ever be
fore suggested to a Republic. The practical working of this little
principle — equity in payments — once established, will shake every
throne in Europe and Asia to its fall ; and the earth's children will
hail Mexico as their deliverer, and science and truth will walk forth
from their chains of metallic coin or " pot metal," by which they
have been so long and so mercilessly fettered, to bless and make
happy the human race.
France, to-day, for several reasons, but particularly for her ap
proach to equity in payments, and to a national system of protection
to home industries, is the most advanced government on the earth's
surface. England and Germany are so far behind in true states
manship that they deserve only to be mentioned with disgust upon
the same page. The "nobility," or privileged classes of France
have been attacked by three men — Louis the Eleventh, Richelieu
and Robespierre. Louis the Eleventh overthrew the great vassals ;
Richelieu decimated the "great lords," and Robespierre annihilated
the aristocracy. The first prepared the way for sole monarchy, the
second for absolute monarchy, the third for constitutional monarchy ;
but President Thiers by judiciously paying off the indemnity, imposed
by ignorant and selfish Germany, the conqueror, with French arti
cles of manufacture, in lieu of bullion, and by issuing paper money to
start up home industries, ameliorated the condition of her peasants,
thus stimulated and diversified their employments, and pushed
France from the lowest stage of ruin and insolvency to the highest pin
nacle of prosperity aud happiness ever attained by a people — and all
this was was done in less than five years.
Mexico owes her present favorable position for advancement to the
determined and uncompromising lead taken by three men — Revilla

28
Gigedo, Hidalgo, and Juarez. The first broke the power of the
Spanish Inquisition, advanced internal improvements, encouraged
home industries, and discouraged foreign importations ; the second
led the attack which finally threw off the political yoke of Spain ;
the third consummated the overthrow ofthe clergy, and separated
the State from the Church ; and distant may the day be when
Mexicans forget the services of each ! A prouder opportunity is
now presented to President Diaz than ever awaited either of these
plain, earnest men ; it is the practical inauguration of ways and
means of equitable payment, which will free the Mexican
people forever from England's bank-credit piracy and " gold
basis" despotism — which will lay a permanent foundation for the
diversification of home industries, and thus free Mexico from
home diasters and from foreign influences — industrial, commercial,
and financial. Respectfully,
A. K. Owen.
Iturbide Hotel,
Mexico City, Mexico,
Thursday, Oct. 23d, 187.9.

A BILL
To authorize and direct the Secretary of Public Works, for the United
States of Mexico, to make a contract with Albert K. Owen, C. E.,
representing " The Mexican Drainage Commission," to complete, for,
by and in the interest of the Mexican people, the Texcoco-Huehuetoca
Canal and its necessary appurtenances.
Be it enacted by the Senate and Chamber of Deputies ofthe United
States of Mexico in Congress assembled.
That the Secretary of Public Works, for the United States of
Mexico, is authorized and directed to make a contract with Albert
K. Owen, C. E., for himself and his associates, which association
shall consist of Charles M. DuPuy, Gen. J. B. Price, Miguel
Hidalgo y Teran, Edward M. Davis, Francis W. Hughes, James
Buchanan, Francis P. Dewees, Carlos de Olaguibel y Arista, and

29
Albert K. Owen, or assigns, and which association shall be known
as "The Mexican Drainage Commission" to plan and complete, for,
by and in the interest of the Mexican people, the Texcoco-Hue-
huetoca Canal and its necessary appurtenances.
That the Secretary of Public Works shall make .a perpetual
reservation of land or right of way, for the United States of Mex
ico, at a width to be agreed upon between said Secretary and said
Commission, and to run from a point two hundred (206) feet
southward of the cross, which stands near the centre of Lake Tex
coco, to a point at or beyond the Presade Salto. N
That the Texcoco-Huehuetoca Canal shall begin at said cross
and shall follow, generally, the proposed line of canal suggested
by Enrico Martinez, --to a point near Boveda Real in the Tajo
Huehuetoca ; it shall be excavated, at the foot of said cross, to a
depth of at least ten (10) feet below the mean water surface of
Lake Texcoco, and shall descend at a regular inclination of not
less than six (6) inches in five thousand two hundred and eighty
(5280) feet, until it strikes the bottom of the present channel in the
Tajo Huehuetoca ; and shall have a width, at bottom, not less than
thirty (30) feet, and shall have side slopes not less than ]/2 to I,
or 63^°.
That said canal shall be constructed to give water-way facilities,
and shall drain the basin of Texcoco, or so much thereof as may
be deemed necessary, within six (6) months after said canal is
completed. '
That with the material excavated, said Commission shall make
a regular and continuous roadway, parallel with and on the west
bank of said canal, and which shall extend from said cross to the
beginning of the Tajo Huehuetoca ; they shall complete proper
basins, quays and wharves at the termini, and at other commercial
depots on said canal ; they shall erect suitable bridges across said
canal, where the same are needed for highway purposes; and they
shall build necessary inlets for existing streams which drain into
said canal.
That said Commission shall employ Mexican labor, use Mexican
material and Mexican articles of manufacture which are available,
to complete said canal and its said appurtenances ; they shall give
checks or certified receipts on the Secretary of the Treasury, in pay-

30
ment for all labor employed and for all material used on said canal
and its said appurtenances ; they shall purchase foreign tools, ma
chinery, etc., necessary to complete said canal and its said appur
tenances, and shall deliver the same at the anchorage in the harbor
of Vera Cruz, at their own risk, and the Secretary of the Treasury
shall immediately cash said Commission's check or certified receipt
on the delivery as aforesaid of the same.
That said Commission shall have absolute direction and control
of said canal and its said appurtenances until the same are com
pleted ; they shall engage and discharge all employees, and shall
make all contracts and buy all materials necessary, in their judg
ment, to complete said canal and its said appurtenances.
That said canal and its said appurtenances when completed shall
belong to the United States of Mexico, and shall ever remain an
open public waterway and roadway for the Mexican people, and a
source of permanent revenue to the United States of Mexico ; that
so soon as completed, said Commission shall turn over said canal
and its said appurtenances to the Secretary of Public Worfts ; and
that from that date a uniform toll shall be fixed and charged
for all boats without exception, which use said canal, for all vehi
cles, without exception, which use said roadway, and a drainage
tax shall be assessed and collected from all lands without excep
tion, which have been directly improved by the opening of said
canal ; and the Secretary of Public Works shall receive tlie pay
ments for said tolls, taxes, and the payments for all other benefits
which may grow out of the uses of said canal and its said appurte
nances, when paid with Treasury money or bonds with accrued inter
est, which have been issued to complete said canal and its said appur
tenances, at a discount of five (5) per centum from said payments ;
and said money and bonds, together with coins and other legal
mediums of payment received for said tolls, taxes, assessments, etc.,
shall be turned over, by - the Secretary of Public Works, to the
Secretary of the Treasury, who shall deposit said money and bonds
to the " Texcoco-Huehuetoca Canal Sinking Fund," and shall use
said coin and other legal mediums of payment to cancel outstand
ing bonds, in accordance with provisions made in bill No. — ; and
after seventy-five (75) per centum of the total amount of said money
and bonds have been deposited to said Sinking Fund, the fact shall

3i
be reported by the Secretary of the Treasury to Congress, and it
shall then be decided whether said money and bonds shall be
destroyed or again sent forth in payment for necessary and approved
public construction.
That said Commission for their plans and superintendence to
complete said canal and its said appurtenances, and for their original
and practical details for systematizing ways and means of payment,
in accordance with science and progress, shall be paid, by the Sec
retary of the Treasury, each and every Saturday, in said money or
bonds, a sum equal to twenty (20) per centum upon the gross
amount contained in the checks, or certified receipts, which have
been cashed during the week in cancelment for labor and material
used to complete the Texcoco-Huehuetoca canal and its said ap
purtenances.

A BILL
To authorize and direct the Secretary of the Treasury to engrave, print
and stamp Treasury money and bonds, and to issue the same in pay
ment for services and materials used to complete the Texcoco-Huehue
toca canal and its necessary appurtenances.
Be it enacted by the Senate and Chamber of Deputies of the
United States of Mexico in Congress assembled :
That the Secretary of the Treasury is authorized and directed
to appropriately engrave, carefully print, and officially stamp
Treasury money and bonds for the United States of Mexico ; and
to guardedly issue the same in payment for services and materials
used to complete the Texcoco-Huehuetoca canal and its necessary
appurtenances. *
That said money shall be executed in denominations of one and
two dollars, and in fractions of one dollar, to consist of four reals,
two reals, arid one real ; and that said bonds shall be executed in
denominations of five, ten, twenty, and one hundred dollars.
That said money shall bear upon its back the following words :
"This (One Dollar) is issued by the United States of Mexico in pay
ment for services and materials used to complete the Texcoco-Hue-

32
huetoca canal and its necessary appurtenances ; is a legal-tender for
all public dues; and is interconvertible at par with Treasury bonds
to bear an interest of five (5) per centum per annnm!'
That said bonds shall bear upon their back the following words :
" This (Five Dollar) bond, issued by the United States of Mexico,
is a current legal-tender for all public dues ; is, at the option of the
holder, interconvertible at par, with accrued interest semi-annually,
with Treasury money issued in payment for services and materials
used to complete the Texcoco-Huehuetoca canal and its necessary ap
purtenances ; shall be untaxed ; shall bear an interest at the rate of
five (5) per centum per annum ; and shall be called in and canceled;
by the Secretary of the Treasury, after five (5) years and before ten
(16) years from this the (first day of January, A. D. 1880)."
That the paper for said money and bonds shall be manufactured
in Mexico, of the hest quality, and shall have upon it such water
marks and devices as shall best secure it from imitation ; it shall
be manufactured in sheets of such size as shall contain a fixed
multiple of said money and bonds without waste ; and the number
ofthe same shall be checked and otherwise supervised by one or
more agents of the Department of Public Works and one or more
agents of the Mexican Drainage Commission, who shall act in
harmony with the Treasury Department in all measures which
shall add to the security of the same ; and this special water
marked paper shall be patented, by the Secretary of the Treasury,
for the United States of Mexico, for the exclusive use of said
money and bonds.
That to imitate said paper, or to counterfeit said money or bonds,
shall be a high crime against the Mexican people, and shall be
punished with death.
That the maximum amount of said money shall not exceed
four million dollars ($4,000,000); and the maximum amount of
said bonds shall not exceed four million dollars ($4,000,000).
That the Secretary of the Treasury shall issue said money or
bonds upon the presentation of and in cancelment of checks or certi
fied receipts of said Commission ; that so many days' or part of a
day's work, at so much per day agreed, have or has been per
formed by the bearer or endorser, upon the Texcoco-Huehuetoca
canal and its necessary appurtenances ; or, that so much .material,

33
at the price agreed, has been furnished, by the bearer or endorser, to
the Texcoco-Huehuetoca canal and its necessary appurtenances ;
that said checks or certified receipts shall be cashed by all agents of
the Treasury Department ; that two or more special agents shall
follow the line of construction to facilitate said payments ; and that
before said money or bonds are paid out as aforesaid they shall
bear tbe respective official stamps of the Secretary of the Treasury
and of th'e Secretary of Public Works, and shall be countermarked
by the Treasurer of said Commission.
That to further strengthen said money and bonds, and to make
them a preferred medium of exchange among the people, all pay
ments made for tolls and for assessments on other benefits which
may grow out of said canal and its necessary appurtenances, when
paid with said money, or with said bonds and accrued interest, shall
be discounted at the rate of five (5) per centum on said payments.
That excepting gold, silver and copper, no other money or
bonds shall be issued by the United States of Mexico, until the
Texcoco-Huehuetoca canal is completed, without the consent of
said Commission.
That to execute the purposes set forth in this bill, there is hereby
appropriated the sum of one hundred thousand dollars ($100,000),,
or so much thereof as may be found necessary.

No. 4102 Spruce St., Philadelphia, Sept. 12, 1879.
General Porfirio Diaz,
President of the United States of Mexico.
Mr. President :
In considering the propriety of issuing Treasury money in order
to promote the industries of Mexico, I beg to call your attention to
one or two important points.
Treasury money will only prove valuable as it is sacredly and
jealously guarded by the " Slate." If issued only for full value, it
will strengthen the government; whereas if issued with little regard
to the value returned to the nation, it cannot fail to be followed
by disastrous consequences.
3

34
Before the issue of this money, I would suggest that an appeal
be made to the patriotism of the leading influential Mexican
citizens. Foreign bankers and foreign residents of Mexico, whose
interest it is to reflect the old money system of Europe, will no
doubt aim to discredit this money, and to draw a broad line of disr
crimination between it and coin; while those patriotic native Mexi
can bankers, merchants, and all those native born who raise, manu
facture, deal in, and interchange the products of Mexico, will find
his money equal to coin for all domestic exchanges providing
[hey meet you fairly and frankly in seconding your noble efforts to
develop the native industries of Mexico.
To secure such concerted and harmonious action between the
Leading influential citizens and the government, I would respect-
ully recommend a private meeting with those whose position
would go far to control and popularize this money. After confi
dentially outlining and defining to them your proposed course in
this matter, I would frankly ask for their cordial support. This
distinguished body of gentlemen, composed of ranch owners,
merchants, and bankers, should be asked to pay and accept this
money for provisions and supplies as a matter of patriotism. Once
assured that a large portion of the influential citizens freely receive
and pay out this money alike with gold and silver, and that it is
readily exchangeable for articles of necessity and consumption, it
will naturally become popularized among all the working people,
and soon be found of great practical advantage in developing the
resources of Mexico, independent of foreign loans or assistance
from other nations. It will build up Mexico, making it self-reliant
and independent, preparing the way for a vast system of railroad
and other internal improvement based wholly on the credit of the
nation. (
In the early history of the colonies now forming these United
States, it was found of inestimable value in the development of inter
nal resources, and had it not been for an edict of the British Par
liament prohibitingthe circulation of Treasury_money, which was
then fast superseding the necessity for coin money, it would have
continued to betHe- circulating medium. Treasury"money is the
peopits money, the money of freedom, while silver and gold money
is the money of the dependent. This last enslaves and ties down

35
the masses to the banks and bullionists of the world. This power
of coin money, which can set up and pull down monarchs at
pleasure, was not content to witness the prosperity of the people,
independent of its power, so through Parliament and government
it ceased not until it had caused a prohibition of the Treasury
money of the Colonies.
^V The Colony of Massachusetts issued Treasury money at various
periods in its early history, between 1690 and 1720. In that
period little coin found its way to the American Colonies ; and yet
upon the breaking out of the American Revolution in 1765,
Massachusetts had prospered under Treasury money, was out of
\debt, and was able to render powerful aid in throwing off the Eng
lish yoke.
Rhode Island, Connecticut, New York, Pennsylvania, Maryland, '
Delaware and South Carolina, all issued Treasury money before
the Revolution of Independence, making it legal tender ; and it is
worthy of careful attention that those colonies which issued the ,
most had become the most prosperous.
~Tneed not call your attention to the great benefit realized by
this country from Treasury money in its struggles for supremacy
in the late Rebellion. All this is a matter of history, and has been
abundantly set forth in documents which will be brought to your
consideration. After the return of peace and our intestine difficulties had ceased;
the full value of this money b£gan to be appreciated, but in an un
guarded moment a large portion of it was unfortunately called in and
destroyed. It was then that prices fell, industries languished, and
labor became paralyzed. It was then that the people arose in all
•sections of the country to create a great party to defend and main
tain the integrity of Treasury money. This party has grown, in
less than four years, from a handful of men to more than a million
of voters ; and notwithstanding the patronage of government and
all the powerful influence of the two old and well organized parties
which have always been arrayed against this Treasury money
party, it" has continued to assert itself in all parts of the Union)
with the strongest possibility of being able to hold the balance of
of power in the next Congress.
Had not these United States been governed unfortunately by

36
banks, bankers, bondholders, stock and gold gamblers, at the ter
mination of the late War, we should have been realizing the full
benefit of a legal tender Treasury money, and so avoided the par
alysis to industries which has so long prevailed throughout this
country. I need not point alone to this country as having realized the
benefits of Treasury money. You have only to cast your eyes to
wards Brazil to find the successful results of its issue in that great
Empire. In time of war, Brazil realized the supremacy that this
money had given her, and on the termination of war,. continued to
use it. It has become the permanent money of that nation, being
a full legal tender, and the basis of the money of account. The
notes of the Bank__pf_Brazil are not based upon and payable in
coin, but are redeemat_k_ilL. Treasury money. This Treasury
money is not redeemable in money of any other kind, but in debts
due the Government, and into interest bearing obligations of the
nation, the same as gold and silver coin are redeemable. Gold
and silver coin not being the basis of the money of account, are
purchased and sold as bullion, and its price is governed by supply
and demand.
I beg you will pardon me, if I refer to the unexampled prosperity
of Venice in the nth and 12th centuries, when the credit of her
national bank was at 20 to 30 per cent, premium over the coin of the
country. I might also point you to the banks of Barcelona and
Genoa in the 15th century, and to the banks of Amsterdam and
Hamburgh in the 17th century.
The general principle of these national banks was, that money
deposited was not to be paid out, but the credit of the bank was to
be used in payment of debts, instead of money. This arrangement
saved the loss of coin by " friction," by " clipping," by " sweating,"
by "boring," and furnished an invariable representation of value.
Debts were paid by crediting the party to whom the debt was paid,
and debiting him who owed it, These credits were made a legal
tender, and we're at a premium over coin, because all debts due the
Government and the people, by law, being paid in them, coin was
not needed. Then banks could not fail, because business men did
not require coin, as law sanctioned, and made the credits a legal
tender. I might refer, if time permitted, to the notes ofthe Royal

37
Bank of France in 1 820, which were at a premium of 50 per cent.
over coin, because about that time the coin was alloyed with base
metal. This premium continued until the bank was ordered by
legal enactment to receive this alloyed coin at par in exchange for
its notes.
Silver having been demonetized inEngland, Germany, Denmark
Sweden, Norway, and the United States, while United States
Treasury money was by law received by the Government for all
debts due it, except duties on imports, and was a full legal tender
for all private debts, these notes were then from five to ten per cent. ,
premium over full weight silver coin, not only in the United States,
but in other commercial centres, not excepting Mexico.
Again, during verjTmuch of the peTiol from 179 1 "to 181 1, and
from 1 8 16 to 1836, in these United States, the notes of the two
banks, bearing the name of the United States, and being sustained
by its credit, and made receivable by law for debts due the nation,
were preferred to coin throughout the world, passing freely in China.
In like manner, notes of the bank of France, of England, and of
Germany, are preferred abroad to the coin of those countries, be
cause, although they are not really the obligations of those nations,
they have the credit of those nations, and because they are receiv
able at home for all debts and dues to the nation, and are more
portable and convenient than the coins of those nations.
^ Can it be supposed that these notes would be less valuable, if
they were issued directly as Treasury money by the Government
Treasury, and receivable directly into, the Treasury in payment for
debt, without passing through intermediate banks ? The banks,
after all, derive their credit, safety and strength, from the protec
tion and faith of the Government which has legalized them, and
not from the fallacious idea that coin, which always forms so small
a proportion of the capital of banks, is the true basis of their credit.
These facts and statements are presented to impress you, sir,
with the true value of national credit, when judiciously and prop
erly directed under law by a wise government. All money and
bonds being really based upon tha_.B£QP__£-___oL the people, and on
(hejiojior and faith of "States," and not upon coin, it folfows,"that
with confidence once established among the Mexican people, the
Treasury money and bonds that may be created by the government

38
for a circulating medium, may be made to promote the industries
of the Mexican people, far more successfully and economically
than can be accomplished under the most fortunate circumstances
by marketing its securities among foreign nations.
By establishing a confidence that Treasury money and small
bonds are a safe security based on the vast resources of the coun
try, the people of Mexico will not only be able to drain the Valley
of Mexico, but ultimately through the same means to build a vast
net-work of railroads and other public improvements throughout
the country. They will thus prove to the old monarchical money
system of Europe, that a nation may be self dependent and self-
sustaining without being borrowers of other nations, and at the
same time promote an unexampled prosperity, under a wise and
prudent issue of Treasury money.
Should this Treasury money be well founded under your Presi
dency, it will redound to your lasting honor and glory. In future
times your countrymen will enroll your name on its brightest pages
of history, for having broken the shackles with 'which coin money
has so long enslaved the labor, the industry, and the general pros
perity of Mexico. This, sir, will be a prouder monument than
has ever marked the scarred hero of any battle-field.
With sentiments of highest respect,
I am very truly yours,
Charles M. DuPuy.

Washington, D. C, October 2d, 1879.
General Porfirio Diaz,
Piesident of the United States of Mexico.
Mr. President:
Should the draft of Bills presented by Mr. A. K. Owen, in be
half of the Mexican Drainage Commission, meet with the approval
of your Excellency, and be enacted by the Government of Mexico,
it would, I respectfully submit, result not only in the accomplish
ment of a great national work and the reclamation of many square

39
miles of land, rendering valuable what is now worthless, without
any increase of the burthen of taxation upon the people ; but it
would also inaugurate a financial system that would elevate Mex
ico in the scale of nations to a point commensurate with its vast
territory, magnificent climate and boundless resources. The sys
tem would inaugurate an era of prosperity within that great land,
which, established under your administration, would render your
name — already honored throughout the civilized world — immortal.
I submit to your Excellency that wherever legal tender paper
money has received a fair trial, the result has been beneficent
This has been markedly so on this continent. In the history of
the original colonies of the United States of America, the experi
ment was, in a number of instances, made with wonderful success
— a success so marked as to receive a check from the jealousy*of
the parent government of England, which understood that the
control of their own money by the colonies would not only in
crease their prosperity, but render them practically independent
It is hardly necessary to refer to the money of the ancient Mexi
cans, small pieces of tin and cacao seed. It is true that gold dust
in quills was also used as money, but it was in reference to the
cacao seed especially that the old Spanish chronicler remarked that
it was the best money the world had ever seen. In referring to
the old world, it is suggested that the greatness of the Roman Re
public was achieved under a money system .of brass and bronze ;
and that the downfall of the Roman Empire commenced with the
full use of gold and silver coin, and the drain of these precious
metals into Asia. I would also call to the attention of your Excel
lency, the fact that modern civilization commenced with the estab
lishment of the Bank of Venice, and kindred banks in Europe,
and that modern periodic commercial convulsions were incident
to the gold basis system of the Bank of England. The modern
examples, often quoted against the system, of the Continental
money of the United States, and the French assignat, have no rel
evancy. The first was issued without proper governmental author
ity, and the last upon the security of confiscated church property
in a time of internal revolution and foreign wars. It was estab
lished on an insecure basis by a tottering government, and was
subject to skilled counterfeiting, done with the approval of foreign

4o
powers. Your Excellency will remember that the paper money of
the United States, issued during the rebellion, not only carried it
through a civil war unexampled in magnitude, but inaugurated a
period of unrivaled prosperity, that was only stayed by unwise
legislation' adverse to the system. You will also remember that
Germany, flushed with her victories over France, and elated by the
large indemnity to be paid, contracted her currency by the demon
etization of silver, and the result has been the impoverishment of
her people; and that France, beaten and largely in debt, by judi
cious issue of paper money not only rapidly increased in wealth,
but thereby also was enabled to retain and obtain for her coffers a
large amount of the gold of the world. I would respectfully urge
upon your Excellency your approval ofthe Bills presented to you
bjf Mr. Owen. The result would be most beneficent to Mexico.
Not only would a great public work be thereby accomplished, but
with an increase of money would come new uses for it — trade
would be stimulated, invention quickened, and private and public*!
enterprises developed. The United States of America, notwith
standing abundant crops, great resources, and an enterprising,
energetic people, is in the power of the money kings of the world,
who control and check its progress and guide its politics, in their
own interest, by means of the present nefarious national banking
system. Mexico has in its power, by the adoption of the system
embodied in the Bills presented by Mr. Owen, to draw upon the
resources of the world, and render them tributary to its greatness
and its power. Its gold and silver mines would then be more val
uable than now; because they would then add to Mexican wealth
and enterprise. From them Mexico would then receive the benefit
— not foreign nations, as at present. The system proposed has the
approval of a large majority of the people of the United States of
America. The real will ofthe people does not find official expres
sion, because the leaders and councils of old political parties are
controlled and manipulated by the money kings of the old, as well
as of the new world. A new political party has sprung into exis
tence, numbering but a few thousand in 1876, but two or more
millions at this time. In that party I hold a national position. Per
mit me to assure your Excellency that should the Bills referred
to become laws in Mexico, the result will be watched with interest

4i
by the people of the whole of this country, and sympathized in by
a large majority.
I have the honor to be, with sentiments of profound respect,
Your obedient servant,
F. P. Dewees.

Office of the Mexican Drainage Commission, 205 Walnut Place,
Philadelphia, November 18, 1879.
Gen. Porfirio Diaz,
President of the United States of Mexico.
Mr. President:
If the benefits which governments can derive by using their own
credit and making that credit a legal tender, were not so great, I
think it would be easier for those who control governments to ap
preciate them. They cannot believe that such great and good
results can come from so simple a process.
Bonds, long to run, bearing interest, and in large denomina
tions, are the usual forms forced upon governments by those who
loan money. This is the form of the obligation that money lend
ers require governments to adopt. If the bonds or obligations
were in small sums, bearing no interest, and but a short time to
run, it would be only the form that was changed'. Add to such- an
obligation, the power of legal tender, and the user of it will over
look the omission of its drawing interest, in the fact that it fur
nishes him with currency — that it is currency .. .. money. That
is the economical way in which a government can use its own
credit, and at the same time help every one to a medium by
which his productions and services can be exchanged.
When the Southern States, in their effort to break up the Union,
drove the country into war, the government was forced to create a
legal tender, and those first issued, because they were a full legal
tender, were always at par with gold coin. Had Secretary Chase
acted then with the consciousness that the government was
stronger than the " Banks," we should never have fallen into the
hands of the money power, and to-day would not owe an obliga
tion drawing interest, and should have saved more than we now
owe. We have some 350 millions of paper money still afloat, and

42
although it is but a. partial legal tender, the people at large prefer
it to gold or silver coin. No party is strong enough openly to at
tempt to withdraw it, even if it could substitute gold or silver coin.
This sum is a permanent loan to the government without interest.
It might readily be doubled, and the saving doubled, if the
National Bank notes could be got out ofthe w-iv, as iln-y certainly
will be, because their issue is based on class legislation, which is
odious to our people.
If the city of Mexico, the canal, the roads each side, can afford
to pay a rent equal to say $500,000 a year for ten years, then by
using the credit of the government, by the issue of small obliga
tions, " legal tender," the work can be done, and in ten years the
rent can cease. The government co-operates in the military sys
tem; why not apply this civilizing principle to finance. And it
must not be forgotten that these small obligations, in daily use,
passing from hand to hand, will be . power that wil: conent gov
ernment and people ; for no one having in his os session any one!
of these obligations, would find it t. his ml. rest to overturh thev
government that created it. As beneficial as the drainage will be,
it is only secondary to the good that will follow, and the inde
pendence that will grow, from this apparently insignificant process
of using your own credit in a way t'> create a currency for the
people. Respectfully and earnestly,
E. M. Davis.

Iturbide -Hotel, Mexico City, Mexico,
Wednesday, IJov. 26lh, 1879.
Hon. Edward Pankhurst,
Secretary of the In; _rior.
Mr. Secretary :
Republican Governments have not so far rendered that peace,
security, and prosperity to their inhabi; ants, which were sincerely
expected by their founders. The reason is simple — -justice has
never been rendered to the pecple. Governmen! 5, whether absolute
or constitutional, have only existed for the vile, selfish purposes of
privileged and incorporated classes ; and political wire-pulling, and
court-intrigue, have incessantly occupied the minds and the time

43
of kings and presidents to the exclusion of utilities of public
necessity, and of protection to the honest, toiling, and law-abiding
producers. France is the one conspicuous government of the world, which
has any claim to intelligent respect. From the time of Turgot to
the present, with a few exceptions, France has consistently pro
tected her industries ; and, from the time Napoleon Bonaparte took
Venice, and studied the principles of the bank founded there in
1 171, France has had the best system of payments yet adopted by
a modern nation. And again, if there is one characteristic which
has become associated with French government, it is that her
rulers have studiously put the people to work, have torn down
the half of Paris, and rebuilt it, in order to keep the people remun
eratively employed. A cry for bread in France has become the
death knell to those in power, and a petition for work is not only
given attention, but is immediately complied with.
The wealth of France, to-day, is not greater than that of any
other country, but it is in France that we see wealth more distri
buted.* The argument is not that taxes, per capita, are less in
France than elsewhere ; but, that the ability in France to pay taxes
is greater. Mexico has adopted the French system of measures and weights;
has even dressed her soldiers in the red and blue of France, and
marshaled her battalions with Napoleon's tactics. Had Mexico,
at the same time, studied the industrial and financial develop
ment of France, and improved upon, and put them into practice,
* The national debts of France and England are not now far apart in amount, that
of France being a little the larger. The French debt is held by 4,380,900 persons,
being an average of about $855 to each holder. England's debt, on the other hand,
by the latest returns, is held by 300,000 persons, being an average of about j! 12,600
to each holder. In France, the masses of the people are bondholders; in Eng
land, the capitalists instead. In France there are about 7,500,000 land owners, of
whom some 5,000,000 have little plots of about six acres on an average. In England
the number of land owners is put down at 1,173.000. In France one person in five is
a land owner; in England, one in thirty. In England, however, 850,000 of these
owners have in the aggregate but 188,000 acres, being an average of a trifle more than
one-fifth of an acre each. John Bright, in aspeech in 1878, said that " one-third of the
land in the United Kingdom is owned by 935 men, being no less than 23,000,000
acres." The Marquis of Bute owns one-half of Scotland, and 24 families own one-half
of England.

44
for and in the interest of her people, Mexico would have done an
act commendable and statesmanlike ; and to-day, the land of Hi
dalgo would not be threatened with civil anarchy within its own
States, nor would have fear of United States annexation on the
one side, and England's declaration that she will occupy Yucatan
on the other ; while the ships of half a dozen countries, in defiance
of Mexico's laws, and in robbery of her revenues, smuggle along
her Atlantic and Pacific coasts.
Mr. Secretary, France is not only industrially and financially
advancing toward a true Government, but France, as a Govern
ment, is eminently paternal, i. e., her rulers inquire into and care
for the interests of her whole people. They not only see that
works of public convenience are completed, but they are ever
watchful that every person is employed. France has a Paper
money circulation of $450,000,000. She issues five franc (one
dollar) "rentes" so that her peasants can put their savings at
interest in Government securities. She collects private bills, and
transmits money through her post-offices ; and she never gives a
perpetual charter under any circumstances, and not even a limited
one until she has made strict conditions in the interest of her non-
incorporated people, for their comfort, convenience, and security.
France annually consumes 24,000,000 pounds of tobacco.* All
this tobacco is bought by the Government from the growers, man
ufactured and sold in the Government interest, for the tobacco
* We are aware that the Viceroys of Mexico monopolized the sale of tobacco, and
that, in 1803, this revenue amounted to $4,500,000. Also, that the Republic derived
an income from the same source up to about 1856. We are mindful, too, that in pro
hibiting the growing of tobacco save in the districts of Jalapa, Orizava and Cordova,
great injustice was done, as well as in every other act associated with this monopoly.
// is not suggested that Government should monopolize trades or interfere in the least
wilh private enterprise. What is proposed by the Treasury money and Labor party of
the United States, is that any system, natural or artificial, in which the people have a,
common and an essential interest, and physically , commercially, socially and intellectu
ally depend upon, shall not be given to, or be allowed to be monopolized by, individuals
or corporations. We recognize the atmosphere, the ocean, the rivers, the public do
main, and our highways of earth, stone, iron, water, electricity, and our ways and
means of payment, together with our post and express, and our water, gas, sewerage
and passenger railways, to be the more important of these.
Railroad, canal, river, telegraph, post and express systems, which have an inter-
State, and, consequently, a national importance, should be constructed and regulated
by co-ordinate bureaus elected by the people, so as to give increased facilities, at less

45
traffic is in France as much a Government concern as the post-
office is in Mexico. In 1874 the gross receipts from sales were
287,000,000 francs, or $57,400,000. In 18 15 they were only
$5,000,000. Gas is sold to consumers in Paris for $2.50 per thousand cubic
feet, but the city pays only half that, in consideration of the mo
nopoly. After the gas company pays ten percent, of its original
capital, half of all the earnings in excess of ten per cent, is paid
over to the city, which derives from this source an annual revenue
of $1,700,000.
By means ofthe "Credit Foncier," Paris builds houses, at the re
quest, after the design and on the place selected by the citizen, and
receives instalments or rents in payment. The rate of interest
added to the actual cost is not over 2 per cent. Paris, also
receives $20,000 a year for the rent of flower stalls; and her sewer
age yields $300,000 a year to the municipal treasury.
Herewith (marked Appendix No. 2) is inclosed " The Evolution
of the True Government," by Henry Carey Baird, Esq., which
goes to illustrate the tendency of enlightened and true government
in our day.
How does England raise her revenue? A glance at the official
report for 1878 will suffice. From : —
Customs  ^£i 9,969,000
Excise.  :  27,464,000
Stamns   10,956,000
Land Tax, etc.,   2,670,000
Income Tax  5,820,000
cost, to the people, and, in the end-, to lessen direct taxation, and eventually to pay off
the nation's debt in every form.
Gas, water, sewerage and passenger railway systems, should be constructed and reg
ulated by the cities through which they run ; and thus not only give the citizens addi
tional convenience at less expense, but actually lessen, and finally abolish, city taxa
tion. The permanency of Republican -institutions is dependent upon the education of the
masses ; therefore, libraries should be made general and public, and be kept in pala
tial style by the local public trusts or bureaus. It was Edward Everett who said :
" Education is a belter safeguard -of liberty than a standing army. If we retrench 'the
wages of the schoolmaster, we 'must raise those of the recruiting sergeant."
The post-office and telegraph yield revenues to all governments which construct
and control them, except to Mexico. Examination will show that they are not man
aged in the interest of the whole people in the latter case.

46
Post-Office  ^6,150,000
Telegraphs  1,310,000
Crown Lands  410,000
Interest on advances and on the purchase money of Suez
Canal shares  949>^84
Miscellaneous  4>°64>4I5
Grand Total  ;£/9>763>299
" The New York World" in September last, interviewed Mr.
Jay Gould, of New York, on the telegraph system of England, to
which he had just given his personal inspection. The following is
a paragraph from the same :
"What do you think of the telegraphic system abroad?"
"It is very fine — far ahead of anything we have here. It is rapid and
cheap, and very generally used because of that. We are very poorly pro
vided in comparison."
"What do you think of the Government management of the lines?"
" It is excellent, and just what we should have here. The telegraph is
entirely a part of the duty of the government, just as much as the post-
office is. If it is proper for the Government to run one, it is proper for
it to run the other. We ought to have a uniform charge of 25 cents for
messages to any part of the United States. The work could be done by
the Government even cheaper, I think, but to allow it a small profit would
be only proper. You see we have the post offices now in operation, and
it would be the simplest thing in the world to put the wires to each of
them and the instruments in. There would be but little additional clerk
hire, and an immense advantage would accrue to the people. I think it
ought to be done."
" In the face of the fact that you are building another line?"
"Yes; private interest would readily give way before the demands of
the Government. " '
In connection with the fact that the Post-office Department has
gone more and more deeply into the express business by the fix
ing of small rates of postage for third-class matter, by liberality in
construing the articles capable of admission to the mails under this
head, and by providing for the registration of such matter, the
proposed experiment of the railways of England, Scotland, and
Wales, is of interest as suggesting the possibility of a further
decrease of cost and increase of convenience in the means provided
for the sending of packages. On the first of January, 1880, the
twenty-five railroads of Great Britain will begin to issue four and
eight penny stamps, which will carry parcels under two and four
pounds, respectively, to any point within the railway system, and
insure the packages to the value of five dollars each. The recog-

47
nition of a limited liability for the loss of parcels, the absence of
regulations as to the character of matter sent and as to the way
in which packages are to be put up, combined with the cheap
ness of the rates, constitute the distinctive features of the new
system. In India, England monopolizes the salt manufacture, and with
China' the opium trade ; and millions are added to her revenues
thereby. London is supplied with water by eight incorporated companies,
but the supply is bad and dear, and the municipality is about to
take entire possession ofthe monopoly, paying therefor $100,000,-
000.* The corporation of Belfast, Ireland, is erecting market-
houses out ofthe profits it receives from its gas works..
In the United States the great public utilities are in the hands of
privileged classes ; and per consequence, the people have the
largest tax, per capita, to pay of any nation in the world. A
tax of but $1.50 per capita destroyed Ireland as a nation; but the
United States bears up under a Federal tax of nearly $6 per man,
woman and child; and, if we add State, municipal, county and cor
poration tax, it will be seen that the people, in 'fact, have to pay
* " London's Water Supply is a subject that is occasioning no little uneasiness in
the metropolis. Charges fully substantiated have been brought against the present
system, that the quality ofthe water supplied is generally bad, that the mode of supply
is defective, and that the prices charged by the companies are excessive. It seems
probable, indeed, that it may be found impracticable to improve the quality and mode
of the supply and to reduce the charges by the establishment of any Government con
trol over the water companies, and that the interests of the tax-payers will be best
served by calling upon the water companies to surrender their powers. Mr. Cross,
the Home Secretary, says lhat the Government will not recognize any prospective or
speculative claims against the public. When the question of buying up the water com
panies was first brought forward in 185 1, the purchase money was estimated at about
#30,000,000. About fourteen years ago it was reckoned at #6o,ooo?ooo; while now
some authorities on the subject put the price as high as #125,000,000. From the last
published accounts — namely, those for the year 1877-78 — it appears that the author
ized share and stock capital of the eight companies amounted in the aggregate to
#67,116,270, of which $60,171,270 had been paid up. Altogether, the water compa
nies' accounts indicate that no material improvement in the quality of the water sup
plied, accompanied by a reduction in the charges, is likely to be effected as long as
the supply is entrusted to eight separate authorities. As the Government have deter
mined to admit no speculative claims, should it be deemed necessary to purchase the
interests ofthe companies, the purchase money is not likely to exceed #100,000,000."

'/7

48
over $25 per capita :* and yet there are some persons who imag
ine that the United States is a Republic, f and is intelligently gov
erned. The State of IllinoisJ is the only State which has paid its war
tax, and it was paid by the 7 per cent, revenue derived from the
net earnings ofthe Illinois Central Railroad, which was originally
a state enterprise. Boston, Massachusetts, runs ferry boats, col
lects fares, and thereby augments the city income. Newcastle,
Delaware, owns several thousand acres, which, under its charter,
can never be sold. On this land rents are paid semi-annually, and
deposited for municipal improvements ; and the citizens are by
this means relieved from direct taxation to that amount.
Belgium constructed and operates one-third of its railroads ; and
there the traveler finds the nearest regular and secure railroad
management, and the cheapest ; and the State receives an ever-
increasing revenue therefrom. The corporations owning railroads
are forced to compete with the government lines, hence there is
no such thing as combination against the people in the interest of
" watered stock."
Switzerland has the lowest tax, per capita, of any nation, it being
but $1.80. Situated as it is in the midst of empires, and hemmed
in on every side by large standing armies ready to crush it when
an opportunity presents itself, and, in consequence, compelled to
keep a large armed force; yet the burdens of Government are
light, and even these are put upon those who can best afford to
pay them. In Switzerland the people of property sustain the Gov
ernment. The tax is based upon a sliding scale on income. For
instance, persons whose annual incomes are less than 1000 francs
($200) are not taxed; those whose incomes vary from i,coo to
* The United States ordinary expenditures for 1879 were #266,947,884. The in
debtedness, National, State, county, municipal and corporate, $19,000,000,000. This
bears a rate of interest, at least, of 6 per cent, which equals $1,140,000,000, which
divided by the population, 45,000,000, equals $25.
j- The United States is a government ofthe incorporated, by the incorporated, and
for the incorporated . The national banks and the railroad companies are each as
powerful as the Federal Government, and continually, openly and defiantly breal. the
Constitution and the laws of Congress and legislatures.
Jin Mexico the States of Jalisco and Zacatacas are constructing and operating tele
graph lines. Several have undertaken railroad construction directly or indirectly.

49
2,000 francs pay 5 per cent.; from 2,000 to 3,000, 10 per cent ;
from 3,000 to 4,000, 15 per cent.; 5,000, 20 per cent.; 10,000, 25
per cent, or one-quarter of the entire income. All must pay,
beginning with the President.
But the Swiss Republic owns and operates its telegraph lines
and express business, and thereby receives a large income. Here
is a letter written by a traveler upon the subject :
1 ' We had a chance to test the cheapness and excellence of the govern
ment telegraph system of Switzerland. The cost of the telegram was 80
centimes, or 16 cents of our money; and for this sura a despatch of
twenty words can be sent to any part of Switzerland. There is a general
tax of 30 centimes (or 6 cents) for a telegram, and after that a charge of
of 2~% centimes a word, so that a telegram of 6 words can be sent any
where in Switzerland for 45 centimes, or 9 cents. The government pos
tal express service of Switzerland is, also, a cheap, safe, and expeditious.
public convenience. This postal express takes the place of our private-
express companies to a great extent ; while the telegraphic system of"
Switzerland is altogether a government affair. At our hotel in Zurich »
Bernese guest received by postal express from Berne, a stove-pipe hat
he had sent to that city to be pressed. The cost of conveying the hat
and box from Berne to Zurich, including delivery at the hotel, was 70 cen
times, or 14 cents of our money. It is a common thing in Switzerland' to
send boots, hats, clothing, parts of watches, etc., by postal express, the
cost being so trifling."
The Italian government issues Treasury money for current ex
penses, and promises to take hold of the transportation question,
and to institute a railway system suited to the requirements of
the age. The plans so far adopted involve the construction of
about twenty-five hundred miles of railroads, mostly in northern
Italy. The capital for these undertakings is to be furnished by a
pledge of public credit to the extent of $130,000,000 for construc
tion, and $10,000,000 to $20,000,000, as may be found necessary,
for equipment. The project seems to be well considered, the
leading idea being to establish main arteries of communication by
consolidating and perfecting the lines now extending east and west
from Trieste to Mont Cenis, and also the lines extending from
northwest to southeast down the peninsula. From these great
trunks, branches are to be run out in both directions, reaching to
the more important towns and into the districts where communi
cation is most immediately necessary. The management is said
to be so far in the hands of competent engineers and railroad men,.
' 4

5o
and the Italian government is determined to secure the best prac
ticable results with the least outlay.*
The little independency of Andorre, in the Pyrenees, which
contains an area of but ninety-one square miles, and a population
of but 8,000, receives its public revenue from the iron mines owned
by the State.
In the Argentine Republic there are 1,440 miles of railroad, 500
miles of which are owned and operated by the nation.
Brazil, also, issues Treasury money, audit is the basis of the money
of account of the Empire. Her subsidies given to railroad companies
are paid, we understand, with Treasury money;
Peru receives its greatest revenue from the sale of guano (1876,
$9,800,000) and cubic nitre, the latter bringing in (1876), it is said,
about $8,800,000.
The Japanese Government issues Treasury money, and owns and
receives a royalty from its coal fields. At $1 per ton, it is esti
mated this source of revenue will will make a total of $400,000,000.
Besides this, the Public Works Department receives daily remit
tances from the government railroads and telegraphs. The silver
mine of Shisbin produces about 5250,000 per year to the govern
ment, and there are three or more other silver mines, belonging
to the nation, which bring in even a larger revenue, etc., etc.
But it is not necessary to quote further to show the true friends
of Mexico, that it would be a step in the way of progress and of
enlightened government for Mexico to complete the Texcoco-Hue
huetoca canal, the sewerage of the Federal district, and to manu
facture salt and sodaf from the waters of Texcoco, for and in
behalf of her people.
Any effort which will intelligently employ the Mexican people,
and lighten their direct taxes, must be hailed with enthusiasm by
all liberty-loving persons.
*The Italian Chamber of Deputies has (Jan. 8th, 1880,) passed a. resolution to
begin a national system of internal improvements for the purpose of giving employ
ment to all who wish work.
| This salt and soda manufacture is not strictly a utility of public necessity; but,
under the existing circumstances, it is urged that the government secure this monopoly
as a ways and means to assist to redeem quickly the Treasury money issued to com
plete the Texcoco-Huehuetoca canal.

5i
For the purpose of maintaining a permanent manufacture of
common soda, calcined soda, crystallized soda, and salt, your Com
mission purpose to leave an area of 30 square miles, or about one-
third of the present area of Lake Texcoco. From this basin, all
streams will be cut .off except those which come over "tezontle"
beds, which it is said furnished the solutions with which the waters
of Texcoco are enriched. The evaporation of still water* in the
valley of Mexico is reported to be equal to 57 centimetres a year ;
hence, if waters to that depth are allowed to enter said basin each
year, it is supposed that the deposits will meet the demands of
Central Mexico, and, if wished, those of foreign parts, for these
articles, which are largely used in the daily requirements of manu
facturing, mining and house-keeping. Herewith is presented
(marked Appendix 3) a letter addressed to the undersigned by Mr.
William Hay, a Mexican citizen, who is engaged, at Guadalupe, in
the manufacture of four articles of commerce from the waters and
earth of the Texcoco basin ; and it is suggested that the Minister
of Public Works be directed to purchase the said manufacture for
and in the interest of the Mexican people ; that the present pro
prietor be commissioned to enlarge the industry so as to meet the
demands of the valley of Mexico and its vicinage and foreign coun
tries, and that he receive a royalty, per ton, for all he manufactures
and sells : the net receipts to be used as an additional means to
redeem the Treasury money issued to complete the Texcoco-Hue
huetoca canal ; and after the said Treasury money has been can
celed, the said net receipts to be paid into the Nation's Treasury,
and thereby to lessen the direct taxation of the Mexican people.
The attention of Secretary Pankhurst is also called to the pub
lished report of Sefior Don Juan N. Adorno upon the commercial
value of the waters of Texcoco — also, to the estimates of Mr.
Seager ; and to the analysis, by Mr. Berthier, on page 146, " El
Memoria para la carta Hidrografica del valle de Mexico," pub
lished in 1864.
El Monte de Piedad is the most successful public institution in
Mexico, and is so because it comes the nearest to dealing justly with
* Mr. William Hay states that in his shallow ditches, where the water is exposed to
the sun and is kept moving, the evaporation equals 6 millimetres per day during the
dry season.

52
the Mexican People ; for it not only accommodates those persons
who hold articles of value, pressed for money, but it returns a
handsome revenue to its management. The principle is that any
one having a finished article may deposit it with this institution for
six months, and have the use of 40 per cent, of its valuation in
money. By the payment of 1 per cent, per month upon the
money loaned, the depositor receives back his deposit ; or, if the
tfme has expired, and the article has been sold, if it brings more
than the institution loaned and the rate of interest charged, the
remainder is handed to the depositor. The founder, Conde de
Regla (1775), is remembered gratefully by the people of the
Valley of Mexico, as Vasco de Quiroga is still mourned by the
Indians of Pascuaro.*
Mr. Secretary : El Monte Pio has proved a great accommoda
tion to one class of your people, and of world-renowned credit to
its management. But, Mr. Secretary, the greater part of your
natives have not the skill to manufacture or to fashion finished
articles', such as would be received by the directors of El Monte
Pio — the greater number of the " Guadalupes," of the hard-work-
ing, honest, faithful producers of Mexico, have but their labor, in
its crude _form, to offer for sale, and when it is not accepted and
utilized, it is lost forever; and, per consequence, the laborers
themselves are not only kept at starvation's door, but society is
demoralized, and the government is shaken with civil strife, and
threatened with anarchy. There can be no security for life or
property — there can never be a peaceful government — where such
monstrous wrong is persisted in. The administration, of which
Secretary Pankhurst is an honorable member, is therefore ap
pealed to in behalf of the long-suffering and patriotic Mexican
natives, to establish an extension to the Monte Pio, by completing,
*Humboldt says : " Pascuaro contains the ashes of a very remarkable man, whose
memory, after a lapse of two centuries and a half, is still venerated by the' Indians, the
famous Vasco de Quiroga, first bishop of Mechoacan, who died in 1556, at the
village of Uruapa. This zealous prelate, whom the indigenous still call their father
(Tata don Vasco), was more successful in his endeavors to protect the unfortunate
inhabitants of Mexico than the virtuous bishop of Chiapa, Bartholome de las Casas.
Quiroga became in an especial manner the benefactor of the Tarasc Indians, whose
industry he encouraged. He prescribed one particular branch of commerce to each
Indian village. These useful institutions are, in a great measure, preserved to this
day."

53
in fact its complement, the Texcoco-Huehuetoca canal — wherein
any person in Mexico who has a day's work to deposit in behalf of
the Government, may put it in security in the said work of public
necessity, and receive Treasury money in payment, or rather in acknowl
edgment therefor. Wherein or in what manner could any one be
injured by such a step ? Are the honest, toiling million's, who do
not have a gold ring, a silver chain, or a pair of pants, to deposit,
but who do have labor in its crude form to lay away, to go forever
unrecognized and uncared for by those clothed with leadership ?
Since labor is the basis of all capital, the only souree of all neces
sities, comforts, and luxuries, is it not also the only true basis for
the money of a free people ? The Treasury money paid for labor
received upon a work of public necessity has a perfect basis, and is
redeemed every time it pays a tax, or is exchanged for an article
or a service at par. To say that such a money would fall below
par is to be ignorant of history — there is no instance where the
Treasury money of a revenue-sustained government, based upon
labor and received for all public dues, ever depreciated. When the
Government pays out Treasury money for services on a work of
public necessity, and receives that Treasury money at par for
public dues, service for service has been exchanged, equivalents
have been rendered, justice has been maintained, and a perfect
money has been created. The merchant or farmer who would
refuse to receive such money at par for his commodities, would be
wofully a stranger to fair dealing— would be a traitor to republican
institutions, and could only persist in such refusal to his own
pecuniary loss, to his own self-degradation.
It is said, that to incorporate Treasury money in Mexico, is a\
difficult operation. Let such be admitted — every step in the in-
terest of truth and science has been inaugurated *with difficulties.
Statesmen will simply inquire if the proposed step be right. That to
issup Treasury money based upon labor is right, there can be no
doubt, for it is just the opposite of that " pot-metal " system of pay
ments, which has been based upon dead wealth, and which has
universally been associated with every degradation of mankind
and weakness of Government. To" assist Mexico to inaugurate
said payments, your commissioners have associated themselves,
and they are backed by the moral influence of two million of lib-

54
erty-determined men in the United States. May it not be policy
on the part of Mexico to cultivate the friendship of a political party
of progress and of so great a future(?
It is only a question of a year or two, at most, when not only
American republics, but European monarchies, will, from the force
of circutnstances, be compelled to throw off their old " pot-metal"
system of payments, and to adopt the Treasury money system,
based upon labor employed in public construction ; and it is hoped
that Mexico may take the lead, and not the rear. .
Victor Hugo says :
"Sometimes those who are most deceived are those who ought to be
least. Forty five years ago, in the tribune of the Chamber of Deputies,
a distinguished man, M. Thiers, declared that the railroad would be a
plaything for Paris and St. Germain. Another distinguished man, an
authority in science, Mr. Pouillet, declared that the electric telegraph
would be an amusing addition to cabinets of curiosities. These play
things have changed the world."
Treasury money based upon labor employed on works of public
necessity is going, to change the world more and better than the rail
road and telegraph combined. Treasury money is the promised
"Messiah " — its coming will be the harbinger of glad tidings to
mankind — its successful inauguration will herald " peace on earth,
and good will to men."
Let it here, also, be stated, that there is no instance in history
where those in authority ever advanced determinedly in the interest
of their whole people, but that the best citizens gathered to their
support, and but that generations remembered them with gratitude.
Herewith is appended (marked Appendix No. 4) a letter pre
dicting the anarchy which must certainly come to a people who
permit corporations to control public utilities.
Respectfully,
A. K. Owen.

APPENDIX NO. 1.

The Texcoco-Huehuetoca canal or ditch may be opened so as to drain
the valley of Mexico, and to protect the Federal District permanently
from inundations, at a cost of about $4,000,000 in Treasury money.
The cost of its appurtenances will depend entirely upon the class and ex
tent of the labors ordered by the Secretary of Public Works. The direct
benefits to the Mexican Government, by the opening of said canal, will
be the recovery of about 57,600 acres of land now covered with water.
These lands will be taken from the lake basins in about the following
proportions : Sq. Miles. Sq. Miles. Sq. Miles. Acres. Acres,
Texcoco  78.00 — 30.00=48. x 640=30,720
Cristobal. . . . :  4-38— 2.38= 2. x 640= 1,280
Xaltocan  21.40 — 0.00= 21.40 x 640=13,440
Zumpango  6.81 — 381= 3.00 x 640= 1,920
Xochimilco  18.72 — 12.72= 6.00x640= 3,840
Chalco  41.66 — 3 1. 66 = 10. 00 x 640= 6 400
The United States sells its public lands, even in the far West, for $2.50
per acre. These lands under the new order of affairs, in the vicinage of
the Federal capital, and in the midst of a population of 800,000, should
bring, at ready sales, on an average of $5 per acre.
Acres.
57,600x^5=  $288", OOO
There will be about 200 square miles of land belonging to private
owners secured from periodical overflow, and given to agriculture and
pasturage. This, at least, should be worth many dollars more per acre
than now, and, per consequence, the Government should assess all such,
at least at $2 per acre.
Miles. Acres. Acres.
200 X 640=128, ooox #2=  $256,000
The soda and salt manufacture, after paying 10 per cent, royalty ta
the manufacturer, may be made to pay a revenue to the Government, in
six years, over and above its cost and working expenses, of about
$1,500,000. The value of the properties in the Federal District is about $52,000,-
000. If we estimate the city properties to be worth about two-thirds ¦ of
this, or say about $34,666,000, and assess it 5 per cent., it would bring
(55)

56
$i,733>300- This could be paid in six instalments, one every year.
This would be a means of making every one take the said Treasury money,
as with it could be paid said assessments at an advantage of five per
cent, over gold or silver coin, and thereby would the citizens in the
valley become educated to its uses and conveniences.
Col. Evans, in his book on Mexico, says that some days the Govern
ment collects $1,200 on the Viga canal (12 miles long.) The tolls on
the Texcoco-Huehuetoca canal and road may be estimated at $500 per
day for the first six years following its completion.
$500x365x6=  $1,095,000
The above calculations will be remarked for their modesty, but even
these small amounts foot up a total of $4,872,300, which it is believed
may, under the most unfavorable of circumstances, be relied upon by the
Government as the revenue during the six years following the completion
of the Texcoco-Huehuetoca canal.
It must be borne in mind that this added tax upon the people in the
valley of Mexico will not be felt, because the money put in circulation
will make all classes of business so active that merchants, tradesmen,
market-women, and property owners, will have a hundred dollars to pass
through their hands under- the new order of affairs where they have but
one dollar now. All classes of real estate will advance in demand,
hence in price, with the increased price given to labor.
It must, also, be kept in mind that the main ditch or outlet for the
waters in the valley is the most expensive and the most difficult of the
necessary improvements in the valley, and is, in fact, but the basis for
those directly beneficial works which will follow at small additional
outlay;- and yet add great additional re.venue to the Government. The
more important of these are the sewerage of Mexico city ; the bringing,
by means of pipes, spring water to all parts of the Federal capital, and to
other populations in the valley ; the furnishing of water power to all
classes of manufacturers; the system of acequias for conveying fresh and
fertilizing waters to all sections of the agricultural and pastoral districts ;
the system of canals and railroads for commercial facilities to all parts of
the valley and its vicinage ; the laying out, or the extension, of the city
of Mexico from its present suburbs on the east to the western border of
the Texcoco-Huehuetoca canal, etc., etc., will bring many millions of
dollars of revenue to the Mexican government, with an outlay in Treasury
money of but a few millions, and that, too, within the next six years fol
lowing the cutting ofthe said canal or outlet. It is to those works, for
which the Texcoco-Huehuetoca canal is but the necessary basis, that

57
Mexico must look for the greatest returns, directly and indirectly. The
benefits which they would directly and at once give to the valley of Mex
ico have been estimated by those who have given years of ¦ study to the
subject, at $30,000,000.
Your Commissioners have not included them in their plans and esti
mates, simply because their mission is to make the great canal, and to
assist the Treasury Department to inaugurate a system of Treasury money
which, if once practically introduced, will make all necessary public im
provements easy of execution. Again, it is not the purpose of your Com
mission to monopolize all the work of public utility in the valley of Mex
ico ; their pleasure will be to encourage the Mexican engineers to push
the above works to completion. The homes and business of the members
of your Commission are many hundreds of miles away from your beauti
ful valley, among another people ; and they come to Mexico, as is again
stated with emphasis, to assist in inaugurating a scientific and true system
of payments, and with no intention to interfere permanently in the
affairs of the people of Mexico.

APPENDIX NO. 2.

THE EVOLUTION OF THE TRUE GOVERNMENT.

• AN ILLUSTRATION FROM THE FRENCH PpST OFFICE.
To the Editor of the Inquirer :
In March last the French Chamber of Deputies passed a bill authoriz
ing the post office to collect bills, accounts, drafts, etc., which the well
informed and careful Paris correspondent of the London Economist
describes as follows. He says :
"The system has long been applied in Belgium, Switzerland, and
Germany, and the Minister of Posts and Telegraphs stated,, in the course
ofthe session, that in Germany, in 1876, 2,275,000 accounts, amounting
to 325 million of francs, were collected. The manner in which the
business will be transacted in France is this : The tradesman or other
person who has an account to collect, first purchases a special envelope,
on which instructions are printed, for which 25 centimes will be charged.
He encloses in it the account to be collected, and forwards it to the

58
postmaster of the district in which the debtor resides. The account is
given to the postman to collect on his rounds, and if the money is paid,
the postmaster deducts, if the sum is ioof. or above (the maximum
allowed is 5oof), 25 centimes for himself, 25 centimes for the posiman,
and then sends the balance on to the creditor by a post office order,
charging, of course, the cost of the order, which is one per cent, of the
amount. If the sum collected is less than ioof., the fee for the post
master and letter carrier is fixed at 5 centimes per 2of. each ; in no case
can they receive more than 25 centimes each. The charge for the
envelope is invariable at 25 centimes. To take two examples: For a
sum of 6of. collected, the charges would be, envelope, 25c; postmaster
and postman each, 15c.; money order, 60c; total, if. 15c, for a sum
of soof., envelope, 25c; the two fees of 25c. each; money order at 1
per cent., 5f. ; total, 5f. 75c. If the account is not paid on presentation
the postmaster will return it by post without charge. The post office
will not undertake to make protest in case of non-payment, although this
appears to be done in Belgium ; nor will it accept part payments on
account. The system will be first applied only to the chief towns of
departments, but will be gradually extended to all the localities having a
postmaster. An article of the bill also authorizes the post offices to
receive subscriptions to newspapers, charging three per cent, for the
service.'' Not only is this in itself a most important step, but it presents ad
ditional evidence that as systems of civilization advance to higher planes
the functions of government become greater and more varied, the State
of necessity taking cognizance of affairs which it had previously regarded
as not within its province.
In Great Britain the reigning school of doctrinaires has, within the past
half century, preached the dogma of laissez faire with such success that
the State, while interfering in the domestic trade and intercourse of the
people to so great an extent that it has recently been decided that a
country clergyman could not daily sell a small quantity of milk to one of
his neighbors without taking out a license as a dealer, has almost entirely
abdicated all right to interfere with the trade between foreigners and its
own sorely-taxed subjects. While this dogma, the economic soundness
of which has been put forward with much confidence, has reigned supreme
over foreign trade, Great Britain has, nevertheless, in common with other
Powers, moved forward to the performance of new and higher functions
demanded by an advancing civilization— such as the institution of the
postal-money-order system, the postal saving banks, the absorption of the
telegraphs, the interference in sanitary affairs, the prevention of the
importation of diseased cattle, the destruction, at the public expense, of
domestic ones which are diseased, or which are of diseased herds, and,
finally, the recent erection of Epping Forest into an immense public

59
park. The absorption of the railroads by the State has also been
advocated with much ability, and will, doubtless, in time be consum
mated. Unless, too, her agricultural system, and with it her landed aristocracy,
is to be overthrown, she must interfere to protect her agriculture against
the effects of the stupidity and the wickedness of our rulers, who, while
subordinating our societary life to an arbitrarily fixed and wholly inade
quate volume of money, even then persistently and barbarously keep
nearly one-third of that money uselessly locked up in the Treasury of the
United States, where they now have $261,716,000. The magnitude of
these figures will be appreciated when it is understood that the whole na
tional banking system of the land, with its loans of $811,000,000 and
deposits of $904,975,000, now rests on but $162,000,000 of gold, silver
and paper money. Thus do these rulers break up the organization of
society, destroy the once happy balance of our industries, and drive mil
lions of impoverished people to the West,* to make new farms and raise
cheap produce with which' to overwhelm the farmers of the Eastern
States, f and of those countries of Europe which have been idiotic enough
to leave their farming interest unprotected and open to every foreign in
fluence, be it bad or good. Free foreign tradein food in Great Britain,
which has resulted in seeing wheat lower in London in 1878 than in any
year since 1780, has simply discouraged the domestic production of the
cereals, and made the nation more and more dependent upon foreign' sup
plies. J The importation of large quantities of American meat, which is
now threatened, will drive the British farmer out of the last ditch wherein
he has taken refuge, and where capitulation is merely a matter of time
and of circumstances over which he has no control.
Professor Adolph Wagner, the eminent German political economist,
has, in an essay, recently pointed out that the social economy of Ger
many is continually taking upon itself a more and more communistic
* Secretary Sherman, in his speech of this afternoon, actually treats this movement
as a beneficent one, which " finally equalized the demand and supply of labor."
f Now, I will tell honorable gentlemen opposite, and it will not add to their com
fort, that the growth in the Western States is such that land in the Eastern States is
decreasing in value. * * * * If these Western States have had so much
effect on land near them, what will be the effect on land in this country ?• — Speech of
John Bright, House of Commons, July, 1879.
% The wheat acreage in Great Britain is reported to be 500,000 lass this year than
last. A large part of the reduction, both there and in France, is attributed to the com
petition of American wheat, which is so low as to take away all profit from the culti
vation ill either country. — N. Y. Mercantile Journal, July 26, 1879.

6o
. character, and that this is to be explained by the high development of
civilization, and is also in the just and natural order of things. He in
stances the State institutions for intercourse — the post, the telegraph, the
railways and the highways — and the municipal institutions for health,
cleanliness, light, etc. The State too is gradually extending its owner
ship over the forests — a step the importance of which, in saving the coun
try from floods and drouths, and the soil on the mountains and hills from
destruction, as in Italy, Spain, and the East, cannot well be overestimated.
It is further proposed that it should absorb the business of insurance, and
now, too, under the lead of Prince Bismarck, Germany once more assumes
the high duty of protecting against .foreign competition her producers,
upon whose broad shoulders alone the State is and must be carried, and
upon whom all internal taxation finally falls.
The phenomena indicated by Professor Wagner, and illustrated by the
new French postal law, have their root and origin in the one grea| con
trolling principle of man's nature — the necessity under which he always
stands for association with his fellow men. It is this necessity which has,
more than any other fact, fixed the fate and controlled the destiny of the
human race. This it is which makes one set of men rich and another set
poor — individual wealth consisting merely in the possession of the power
to command the services of a large body of men, while on the other hand
the sufferings of poverty come from the necessity for a dependence upon
other men's services, without the power to command them. In a word,
in this world no man is sufficient unto himself.
As civilization consists in the high development of the power of
association, material and intellectual, and through this of great command
over the gratuitous services of nature, so, too, ever restless and never
satisfied, it demands the still further growth of this power, and in these
new fields the interposition of the government — the associated force of
the whole people, the great co-ordinator of their actions — becomes more
and more necessary, because of the inadequate means of all other bodies.
Day by day and step by step we unconsciously give in our adhesion to
these new manifestations of governmental control ; and, in time, from the
postal money order, coast survey, lighthouse system, improvement of rivers
and harbors, and national board of health, we shall emerge into a national
government system of telegraphs, savings banks, fire, marine, and life
insurance, and thence to a money issued solely by the government for its
own benefit and loaned to the people, as in old colonial times in Pennsyl
vania, and as to-day with the county school funds in the State of New
York, until finally that government wholly ceases to pay interest, but col
lects it on loans, instead of collecting taxes. Then will the whole body of

6r
the people become ,the lenders of money, and the few the payers of inter
est, instead, as it is now, where the whole are the payers of interest and
the few its recipients. That this will be the ultimate solution of what is
called the money question in this, as well as in all enlightened countries,
there can be no doubt, inasmuch as it is not only "in the just, but the
natural order of things." Then, and then only, will the power of associ
ation among men no longer be subordinated to the instrument of that
association — money — but the instrument, at all times and in all places,
be kept subordinate to man, and to this, the paramount necessity of his
being. If these views seem visionary, it may only be necessary to look back
upon the history of our post-office — a department of the government, by
means of which our people associate among themselves, from Maine to
Texas, from Oregon to Florida — and see what progress it has made within
the thirty-two years since it first adopted postage stamps, and when it
would neither permit a boun,d book nor a parcel of merchandise to pass
without paying letter postage, and when it knew nothing about the
registration of mail matter, the issue of money orders, postal cards, cheap
ocean postage, or the delivery of letters, papers, etc., by carriers.
The true government which is to be evolved out of the civilization of
this age is one which will be of the people, by the people and for the
people ; and in order that it may be such, it must in every manner and
way respond to and harmonize with man's demand for association with
his fellow-men. It must no longer be, like our present government, one
which feels that it has nothing to do but to take care of itself — to collect
taxes and distribute the results thereof among its partisans, and pile up
useless hoards of money in the Treasury, and give the people as nearly
nothing as possible in return for the enormous annual cost at which they
keep it up. It must be, in fact and in truth, thier government, and its
life must be one of entire subordination to their prosperity, happiness,
and civilization. Henry Ca%ey Baird.
Philadelphia, fuly 28, 1879.

APPENDIX NO. 3

LETTER ON THE EXPLOITATIONS OF THE
SALTS CONTAINED IN THE LAKE OF TEXCOCO.
ADDRESSED TO A. K. OWEN, C. E, ESQ, BY WILLIAM HAY.

Mexico, 5th December, 1879.
A. K. Owen, C. E., Esq.,
Dear Sir :
According to the conversation we had the day before yesterday, I have
the honor to propose to you the project of exploitation di the soda salts of
the lake of Texcoco, pointing out the results of the observations which I
have been able to make during the long period of twenty-six years, in
which I have applied myself to this business.
I have not to detain your attention in making a description of the five "
lakes which exist in our valley, as you know them perfectly well— and
you are neither ignorant of the circumstance that the lakes .of Zumpango,
Xaltocan, San Cristobal and Texcoco contain more or less soda and com
mon salt, and that those of Chalco and Xochimilco contain sweet water.
It has always been believed that the lakes, and most particularly the
Texcoco one, contain, in their bottom springs, of salt water ; but this is
not the fact. I have explored this lake in all directions, and at the time
when it had dried completely. I have been able to convince myself that
there exist no springs of salt water. The salts have another origin in my »
opinion. The greatest part of the mountains which surround the valley
are composed of volcanic rocks. These, by the influence of the sun-rays,
during the dry seasons, produce on their surface salt and soda, which are
(62)

63
component parts of these rocks ; and in the beginning of the rainy sea
son, the first showers wash away the salts formed and carry them to the
lake. This can easily be proved, because in the beginning of the rainy
season all the rivers, at least those on the~east of the lake, contain more or
less salt and soda, and after a month the salts in the river water have not
ably diminished. Considering now, that however small these quantities of
salt may be, they have been carried down into the valley for a long
succession of centuries, it is easy to find in the sum of these quantities the
origin of the salts contained in the lakes.
Only the lake of Texcoco offers in the exploitation of its salts a lucra
tive business, as its water contains an average of i to ij. per cent, in
weight of salts. Sometimes, and immediately after the rainy season, it
contains only one per cent., but the evaporation concentrates the water
very soon, and about a month or a fortnight before the rainy season, its
richness rises to 8 or io per cent., and even more. The following is an
analysis of the water from the Lake of Texcoco, which I made in the be
ginning of the dry season :
WATER FROM THE TEXCOCO LAKE, MARKING I ° B.
, Density of the water equals i .0069.
Water  98.890
Chloride of sodium  o. 5 70
Carbonate of soda  0-485
Sulphate of soda  0.051
Animal, albuminous and gelatinous matters  0.001
100.
The quantities of chloride of sodium and carbonate of soda are variable
ip their proportions : sometimes the water contains more soda and some
times more common salt. This depends upon the place from where the
sample has been taken ; but it may be accepted as a good average that
the water contains as much soda as salt.
The surface of the Texcoco lake is, according to the latest data (chart
of Messrs. Velazquez and Aldasoro, members of the drainage commis
sion, 1878) of 272,170,803 square metres (about 105 square miles). At
the time when this chart was made, the lake was neither very high nor
very low; this surface may be taken as an average, and its depth of
0.60 m. its volume will thus be 163,302,481 cubic metres.
This same water, having been reduced by evaporation in the dry season
to the third of its volume, or let us say 55 millions of cubic metres, will
contain from 4 to 5 per cent, in weight of salts ; and supposing only 4

64
per cent, will represent a weight of 2,200,000 tons, and giving to each
ton an average value of $50, its total value will be no millions of dol
lars  without valuing the salts contained in the mud of the lake, and
which down to 15 metres contains generally from 1 %, to 2 per cent and
up to 8 per cent of salts. The value of the salts contained in the lake of
Texcoco may be ascertained to be at least from two to three thousand
millions of dollars.
Let us even suppose that the draining works being finished, it should.
enter into the view of the drainage company to leave only the third of the
actual surface of the lake, this computation would still be exact ; because,
if when the water is reduced to the third part of its volume by evapor
ation, the surrounding dikes are established, all the salts contained in the
water will be contained in this smaller bulk, and represent evidently the
same value.
It is thus patent that the lake of Texcoco offers a richness which can
scarcely be found in any mine, and with the advantage, that it is a source
lying in the sight of every one, of an easy and secure utilization, because
the only difficulty, consists to know how to separate the different salts.
The proceedings employed in the production of the salts, have been
simplified by me to such a point, that it is now a very simple exploitation,
and capable to be extended to such a scale as it may be wanted, and
producing in consequence enormous quantities of salt and soda.
This business has not been driven on a large scale for want of cap
ital, and it admits no mediocrity. Its products have always been of a
superior purity, which is proved not only by the public opinion, but also
by the several prize-medals which have been awarded to me by the
Judges of several Exhibitions in Mexico, and of the International of
Philadelphia, in 1876.
These salts have been analyzed in London and Paris, and I will only
mention the analysis made in the Laboratoire de Chimie generale du
Conservatoire des Arts et Metiers, of Paris.
CALCINED SODA.
Carbonate of Soda  96.01
Sulphate of Soda  0.43
Chloride of Soda  2.50
Insoluble matters in water  1.06

Alkalimetric degree=88°8.
The prospect of a salt-work here is the exportation of the soda, because

65
the industry of this country is not yet sufficiently developed to con
sume great quantities of soda ; and the best market for the sale of these
products is New York, where the calcined soda brings i,% cents gold
per pound. I have received an order for two hundred tons per month
from a respectable firm in New York, as I can prove by the letters
which I possess (Appendix No. i), and it will be very easy to find the
sale of two or three times this quantity. At the rate of 4^ cents, the
price of a ton of calcined soda would be $100.80. The chloride of
sodium or common salt may be sold in Mexico, in the mining districts of
Pachuca, and even down to Puebla, and its consumption may arise to at
least 500,000 ar.* yearly. Half of this quantity, more or less, ought to
be purified and recrystallized, so as to make it fit for culinary use.
The crystallized soda may be sold in Mexico at the lowest price of
$1.50 the carga (it is worth to-day from $3 to $4). At this price there
will be a- sale of at least forty thousand cargas every year, because the
soap-makers woul.d not continue using the " tequesquite" instead of soda.
The expenses for the exportation of calcined soda are the following :
Packing in the saltworks of Guadalupe, in barrels containing
12 arroba each, at $1 per barrel, and 7 barrels per ton... $7 00
Conveyance by railroad to Vera Cruz, per ton  10 00
Conduction from the railway station of Vera Cruz on board
the ship, per ton  4 00
Freight by sail ship per ton  ,  5 00
Additional duty, 5 percent  25
Insurance, 1% per cent  -.  1 20
Duties for importation into United States on $80 at 20 per ct. 16 00
Commissions in Vera Cruz, brokerage, com, in N. Y., etc.. 5 00
$48 45
Value of a ton in New York  100 80
Difference of the price in New York  $52 35
This difference represents in consequence the value of the calcined'
soda in the saltworks of Guadalupe.
In order to form an idea of what sum would be ne*cessary for the
establishment of a manufactory large enough to produce :
1. 45,000 tons calcined soda.
2. 40,000 cargas crystallized soda.
3. 500,000 cargas yelldw and white common salt.
I suppose that three years would be wanted for the construction of
such a manufactory, and the following would be its presumed cost :
* Ar. means "arroba''=25 Mexican _b._=25_b — 5^ oz. English.
1 carga=i2 ar.__1304.13R) Eng=2.7i5 cwt.=2 cwt. 8o_h 2 oz. Eng. (Avoirdupois).
5

66
Purchase of the now existing saltworks of Guadalupe, with its
56.3253 hectares (13 cjf acres) ground  $25,000
Purchase of other necessary grounds  10,000
taking of the earth tanks for the evaporation of the water of
Mohe lake  *   6,000
Concentration tanks  10,000
30,000 sq. metres of stone tanks for yellowsalt at$i sq. metre.... 30,000
1,000 sq. metres of stone tanks covered with roofs for the crys
tallization of the soda, at $4 the sq. metre. ..^  40,000
10,000 cubic metres of stone work for tanks of preparation and
depository of concentrated waters, at $5 per cubic metre  50,000
Apparatus for the recrystallization of the common salt...  20,000
2 steam engines of 25 horse power each  16,000
1 locomotive engine  .....f  4,000
Furnaces and apparatus for the calcination of soda  8,000
Houses for workmen, employees, storehouse, etc  to, 000
« Wagons, mules, etc  10,000
Pumps and other engines....  10,000
Leaden chambers for the production of sulphuric acid, and ap
paratus for muriatic acid  5,000
Tramway in the interior of the manufactory  10,000
i Unforeseen expenses and rolling capital  86,000

Total sum of the necessary capital  $350,000
Notwithstanding that three years are required for the complete termi
nation of the constructions, the salt works will not remain without giving
products from the first year, and the following estimate may be made :
During the first year, viz.: from the ist of November till the same date
of the following year, it will be possible to produce :
1. 50,000 ar. yellow and white common sait.
2. 400 tons calcined soda.
3. 4,000 arrobas crystallized soda; and which results may be summed
up as follows : FIRST YEAR. — PRODUCTS.
50,000 ar. (11,315 cwt.) at $0.50 an ar  $25,000
400 tons calcined soda, and- only at $95 a ton in New York  38,000
4,000 cargas (10,840 cwt.) crystallized soda at 2 per carga  10,000

Total amount of the products  $73,

EXPENSES.

The cost of manufacture of these quantities will be about  $30,000
Expenses for the exportation of 400 tons calcined soda at $50
per ton  20,000

Total amount of the expenses  $50,

000

6-7

BALANCE.

Total amount of the products  $73,000
Total amount of the expenses  50,000

Profits in the first year  $23,000
SECOND YEAR.
During this year the constructions of the manufactory will have in
creased considerably, and the production may be estimated as follows :
PRODUCTS.
1,500 tons calcined soda, at $95 a ton in New York  $142,500
20,000 cargas (54,200 cwt.) crystallized soda at $1.50 a carga 30,000
200,000 ar. (45,260 cwt.) common salt, at $0.50 per ar  100,000

Total amount of the products  $272,500

EXPENSES.

The cost of manufacture ofthe above quantities will amount to $110,000
Expenses for the exportation of 1,500 tons calcined soda at $50
a ton  75iOoo

Total amount of the expenses  $185,000

BALANCE.

Total amount of the products  $272,500
Total amount of the expenses  ' 185,000

Profits at the end of the second year  $87,500

THIRD YEAR. — PRODUCTS.

4,000 tons calcined soda at $95 per ton in New York."  $380,000
40,000 cargas (108,400 cwt.) crystallized soda at $1.50 a carga. 60,000
2,000 cargas (5,420 cwt.) calcined soda for the glass works, at
$10 a carga  i  20,000
500,000 ar. (113,147 cwt.) common salt at $0.50 perar.... 250,000

Total amount of the product,  $710,000

EXPENSES.

The cost of manufacture of these quantities can be estimated at. $200,000
Expenses for the exportation of 4,000 tons calcined soda at $50
per ton  200,000

Total amount of the expenses  $400,000

68
BALANCE.
Total amount of the products  $710,000
Total amount of the expenses  400,000
Profits at the end ofthe third year  $310,000
You will see that in these computations I have considerably diminished
the prices of the soda, in proportion of its production. The crystallized
soda is worth to-day $4 per carga, the calcined soda for the glass works
$15 per carga, and the salt varies between $0.70 and $0.88 an ar  If
the yellow salt for the mines is sold at $0.45 per ar., and the white salt
at $0.55, any competition from the salt of San Luis and Vera Cruz will
be made impossible.
It is really painful to see that the government, which has such enormous
riches at the gates of Mexico, remains tributary for these products to the
other States of the Republic, and pays no attention to such a plenti
ful income that a manufactory, established on this scale, would give.
The facility for the production, the abundance of the prime materials,
and an qasy and assured sale of the products, are advantages offered to
capital which will hot be found in any other industry. There is another
consideration which must be noticed: our country is unfortunately
troubled very often by revolutions, and then the merchandise of the
other industries are exposed to be embargoed or carried away by the
v % " pronunciados ;" but as the products of this manufactory have a small
value in relation with their bulk, it is rather difficult to transport them,
and they do not tempt those who want speedily and easily large quanti
ties of money.
The large fortunes which have been made in a few years by the owners
of the "Salinas del Peonn," in San Luis, can be a proof of what I ad
vance. The enorrtious profits left by those Salinas, prove evidently and
without contest the excellency of these undertakings. If the government
would apply to this business a capital of $350,000 or $400,000, in a short
time a rent of at least $400,000 to $500,000 would be its reward • be
cause it is extraordinary how in this concern, the products may be dupli
cated with nearly the same expenses ; and I hesitate not to affirm this
fact, as my long practice in this business has proved it to me sufficiently.
I remain, dear sir, yours very truly,
William Hay,
Professor of Analytical Chemistry at the School of Mines and Engineers, Mexico.

APPENDIX NO. 3.

Office of Wing & Evans, 92 William street,
New York, 4 November, 1875.
Agents for the New Castle Chemical Works Co., limited. (Late C. Allhusen &•
Sons, New Castle on Tyne. -•
Wm. Hay, Esq., Mexico.
Dear Sir :
We have this day seen some samples of your products.
The crystals of soda look well, and if packed in good style will bring
i}i cents per pound in gold in ship. Buyer to pay custom duty.
The calcined soda is not clean. It requires, to be white and ground.
If you send in this way, it could bring 2^3 cents per pound if testing 57
per cent of alkali. Buyer paying duty. We could use 100 tons per
month of each, if quality and style of packing is good.
Yours, Wing ¦ 6r Evans.

Mexico, 18th December, 1875.
Messrs. Wing & Evans, New York.
Dear Sirs :
Your kind note of 4th November reached me. The price of the crys
tals of soda does not suit for exportation.
Your observation about the calcined soda is right, but it is not for
want of cleanness, but only because the calcination has not been driven
far enough so as to destroy completely the last particles of charcoal pro
ceeding from the vegetable and animal matters contained in the water of
the lake, from which the soda is extracted.
You tell me that this soda is worth zyi cents per pound if testing 57
per cent, of alkali; but as it contains 88 to 90 per eer cent., I suppose
that its value may rise to at least 3^ cents per pound in ship; buyer
paying duty.
I am not able now to take engagements for any quantity of calcined
soda, because my salt works have not yet been established on a scale fit
for working for exportation ; but I hope that a favorable change may put
me in position to offer you soon my calcined soda in the condition you
want it for sale. I am, dear sirs, Yours very truly,
Wm. Hay.
(69)

APPENDIX NO. 4.

Hon. George P. Marsh, who for many years has been United States
Minister to Italy, in his Man and Nature, or Physical Geography as
Moulded by Human Action, published in 1864, makes the following
remarks :
' ' I shall harm no honest man by endeavoring, as I have often done
elsewhere, to excite the attention of thinking and conscientious men to
the dangers which threaten the great moral and even political interests of
Christendom, from the unscrupulousness of the private associations that
now control the monetary affairs, and regulate the transit of persons
and property, in almost every civilized country. More than one Ameri
can State is literally governed by unprincipled corporations, which not
only defy the legislative power, but have, too often, corrupted even the
administration of justice. Similar evils have become almost equally rife
in England, and on the Continent ; and I believe the decay of com
mercial morality, and I fear of the sense of all higher obligations than
those of a pecuniary nature, on both sides of the Atlantic, is to be
ascribed more to the influence of joint-stock banks and manufacturing
and railway companies, to the workings, in short, of what is called the
principle of 'associated action,' than to any other one cause of demorali
zation. "The apophthegm, 'the world is governed too much,' though unhap
pily too truly spoken of many countries — and perhaps, in some aspects,
true of all — has done much mischief where it has been too unconditionally
accepted as a political axiom. The popular apprehension of being over-
governed, and, I am afraid, more emphatically the fear of being over
taxed, has had much to do with the general abandonment of certain
governmental duties by the ruling powers of most modern states. It is
theoretically the duty of government to provide all those public facilities
of intercommunication and commerce, which are essential to the pros
perity of civilized commonwealths, but which individual means are
inadequate to furnish, and for the due administration of which individual
guarantees are insufficient. Hence public roads, canals, railroads, postal
communications, the circulating medium of exchange, whether metallic or
representative, armies, navies, being all matters in which the nation at
large has a vastly deeper interest than any private association can have,
ought legitimately to be constructed and provided only by that which is
the visible personification and embodiment of the nation, namely, its legis
lative head. No doubt the organization and management of these insti
tutions by government are liable, as are all things human, to great
(70)

7i
abuses. The multiplication of public place-holders,* which they imply,
is a serious evil. But the corruption thus engendered, foul as it is, does
not strike so deep as the rottenness of private corporations ; and official
rank, position, and duty have, in practice, proved better securities for
fidelity and pecuniary integrity in the conduct of the interests in question,
than the suretyships of private corporate agents, whose bondsmen so often
fail or abscond before their principal is detected.
" Many theoretical statesmen have thought that voluntary associations
for strictly pecuniary and industrial purposes, and for the construction and
control of public works, might furnish, in democratic countries, a com
pensation for the small and doubtful advantages, and at the same time
secure an exemption from the great and certain evils, of aristocratic
institutions. The example of the American States shows that private cor
porations, whose rule of action is the interest of the association, not the
conscience of the individual — though composed of ultra democraict
elements, may become most dangerous enemies to rational liberty, to the
moral interests of the commonwealth, to the purity of legislation and of
judicial action, and to the sacredness of private rights."

Iturbide Hotel, Mexico City, Mexico,
Saturday, Nov. 29, 1879.
Hon. Trinidad Garcia,
Secretary of the Treasury of the United States of-Mexico.
Mr. Secretary :
Governments never make reforms until they are forced to do so. Hap
pily for civilization, Mexico is bankrupt at home and has no credit abroad ;
hence, Mexico, from force of circumstances, is compelled to look to her
own people and to her own resources for present life and for future pro
gress. Let it be repeated and emphasized, that this is most fortunate
for Mexico; for there is no country in the world which has more natural
resources or a better class of willing laborers to rely upon ; and if those
who stand at the helm of State to-day, but put it hard " at port" and
steer away from all outside influences, entangling alliances, bank syndi
cates, trade reciprocities, concessions to incorporated classes, and whirl-
* The remedy is plain. Every office-holder in the government, from the President
down to the person who washes out the spittoons in the departments, should immedi
ately upon accepting office, become strictly a public servant, should, not be allowed to
practice private business, and should be disfranchised during term of office — the direct
or indirect participation in elections, national, state, or local, other than to publicly ex
press opinion on questions of the day, should condemn any public servant to the peni
tentiary. There can be no security for public interests so long as office-holders are
permitted to make a business out of politics. A. K. Owen.

72
pools of politics, for a year, the Mexican craft may be brought into calm
waters and be hailed as the first to make the passage.
The first step toward national independence in Mexico was the over
throw of the Spanish Inquisition ; then followed the political separation
from Spain ; after this came the overthrow of the church abuses. The
force of circumstances compelled each of these advances upon the native
Mexicans ; and when they massed to take it, they were met with strongly
entrenched and venerated power, divine rights, and hereditary privileges.
All the "respectability," all the moneyed classes, all the cockneys who
figured on the stage of fashion and leisure, were opposed ; these classes,
as classes, are always found opposing equality before the law, and the ap
plication of scientific discoveries God Almighty, the "guadalupes" and
circumstances were nnited, however, and one by one the strongholds of
the "conservatives"* were carried. Each step gained made the next
easier to take.
Mexico is again forced to rise and to advance to a new position, or
else be obliterated from nationalities. God has written this law : " Who
soever, whatsoever doth not grow is dead already'' The next step is to
give Mexico an industrial life, and this can only be done by freeing Mex
ico from the monetary system of England and the United States. Mexico
may never hope to live as a nation in competition with Europ'e and the
United States, so long as her industries are confined to mining and agri
culture ; and the diversification of home industries can never be accom
plished by Mexico, so long as her money is based entirely upon the will
of the twelve directors who control the bank of England. Has not two
centuries of one system of finance convinced Mexico as to its merits or
defects? If not, how many more long years of suffering, revolutions and
degradations is it necessary for the "guadalupes" to pass through before
their leaders can determine a path out of the present wilderness ? Must
Mexico still longer follow the dictations of the Shylocks in Threadneedle
and Wall streets, tremble at the discounts of silver made by the "cannibals
of Change alley" and after coining the heaviest and best silver money in
the world, patiently sit and see it suffer a discount of 19 to 25 per cent.
United States and English exchanges? And yet withal, the money and
exchange brokers in your midst, at the command of the Jews of Europe,
have the impudence to tell you, in face of these everyday facts, that

* Jt may here be well to state, and all history is referred to, that those who preach
" conservatism" are always the law breakers, and that the "radicals," " barn burners "
"communists," " abolitionists," never are. The people are never the revolutionary
party. The government always is. Revolt never occurs until after a partially suc
cessful attempt has been made to usurp the rights of the masses.

73
intrinsic value is the only value that money can have. For shame ! ! %hat
Mexico should hold a " full hand," and that her people and natural re
sources should be sacrificed to a clique of foreign scoundrels, who do not
even hold "a pair," but calmly play at " bluff " who actually look Mexico
in the eye, across the world's table, hazard everything upon impu
dence, and thus frighten Mexico to base her monetary affairs upon the
Bank of England ; and, per consequence, in accordance with the tricks
of exchange, etc., restrict Mexico's industries to their rudest or prjmary
stages, and force the " guadalupes" into a dependency, into a state of
poverty and distress, even worse than they would be in chattel slavery.
Is there one reason why Mexico should not be as independent of the
monetary systems of Europe as she assumes to be free from their political
organization ? But the fact is that Mexico's political separation is a farce,
so long as her money is based as Europe or the United States dictates.
England bankrupts her own business people every ten years, to the end
that some twenty-four titled families may foreclose mortgages and gather
in all that has accumulated to the producers. The United States, Eng
land's worthy disciple, much oftener passes through the terrible evils
of monetary famine;* but France has not thrown her people into a
financial crisis for fifty years. England and the United States are upon
the same road to rapid centralization — the former by means of primo
geniture and tricks in finance, the latter through corporations and laws,
shrewdly called "acts to strengthen the public credit," " trade recipro
city," etc. France is not only politically but financially and com
mercially separate and apart from both, and therein lies the secret of her
wonderful vitality and progress. After France was annihilated by Ger
many in 1872 she had no credit abroad, and was thought to be so low in
the scale of nations that she could not, at least for a generation, be of
any consideration in the councils of Europe. Statesmen, however, were
at her head. They turned their attention exclusively and studiously to
Frenchmen and to France. They began, at once, to issue full legal-
*. "A great deal has been said about the stability of the Bank of England and its
specie basis, yet it has failed to redeem its promises about every seven years from its
creation until 1797, when it again suspended specie payment. It resumed in 1825,,
failed again in '27, '37, '47, '57, and '66, every time transferring to the few rich the
created wealth of the toilers, through the hands of the sheriff. The banks of the
United Suies failed on a specie ba-.is in 1809, '14, '19, '25, '34, '37, '39, '41, '57, >6i,
and in 1873 on a currency basis. (It must be distinctly recollected that the ' Green
back' was not money, because it was not received for public dues). Now we are
again on a so-called gold basis. When will the next smash come to set the sheriff at
work here ?" JS. M. Davis.

/

74

tender Treasury money and to loan it to manufacturers at low interests,
and with the finished products which the French government received for
the principal loaned, she paid off the Germany indemnity ; and we see
for the first time in history a people actually getting richer the more debt
they had to pay .- in fact, so true was this, that had Germany imposed
twice the tribute on France as she did, ere France had paid it she would
\ \ have been so rich, and Germany so pauperized, by the destruction of her
industries, that she would have been wiped out of the councils of Europe
without the firing of a gun or the marshaling of a column. This is the
! I greatest lesson in finance that history records, and is worthy of the close
: attention of Secretary Garcia.
But, Mr. Secretary, France did not stop here. Having adopted a na
tional system of Treasury money payments for her own people, which
• ,- money was intrinsically of no value, and consequently non-exportable and
1 ' uninfluenced by any monetary panics or crises of other nations, France
formed with Spain, Belgium, Switzerland and Italy, the "Latin Union"
in which it was agreed that they should have one system of international
' ' coins, at a silver standard, and that these coins should be legal-tender in
each and every nation of the said Union. And the progress which has re
sulted to France, in consequence, has nowhere an example in history.
England, Germany, and the United States, dictated to by the Jews of
Europe, secretly united to break France's system of Treasury money pay
ments and the "Latin Union" silver standard ; and they forthwith de
monetized silver, and made a crusade against Treasury bills of every
description save interest bearing gold bonds. And behold the result ! !
"Whom the gods wish to destroy they first make mad" — England, Ger
many, and the United States were shaken almost to. their overthrow, and
are yet — broken banks, closed shops, idle workmen, prostituted women,
starving children, murder, suicide, robberies, demoralization, social deca
dence, criminals in popular favor, frauds in high office, mongrels sitting
upon the supreme benches, ruin never before seen, as a result of so short
a time, were, and still are, the pictures presented in each and every sec
tion of these so-called civilized governments. And France, amidst ah
those combinations and business prostrations, has kept steadily and uncon
cernedly pushing forward, growing greater each day, while those scoun
drelly villainous governments, which vilely united to stop her progress
toward scientific payments, have each been growing weaker ; and, behold,
England, Germany, and the United States have been, from force of cir
cumstances, compelled, one by one, and under the most cowardly and
dastardly of excuses, to remonetize silver ; and they will either have to
adopt Treasury money for home payments, or be left out of the race of

75

\ \

nations by France, Italy and Japan, which are each fast adopting Treas
ury money payments for home industries, and a bullion standard for for
eign exchange.
That popular German, Count Von Bismarck, is not worthy of the
confidence given him by Germany ; but he now thinks he sees a thing or
two in statecraft, and has within the present month proposed to take
France into the " Zoll-Verein," which, at present, includes, to a certain ex
tent, Austria ; the object of which is to oppose the commercial advances
of England and the United States in Europe. Should such a compact
take place, Count Von Bismarck will awaken some cloudy morning, in
the early future, to find that France's finished articles of manufacture
have utterly wiped out of existence Kaiser William and his empire, Von
Moltke and his army ; and that Germany and Austria are no longer na
tions : for France's system of diversified industries are so superior to
those of either Germany or Austria, and her system of Treasury money
for home payments are so enlightened and scientific, while the metallic or
"¦pot-metal" coinage of Germany and Austria are so barbarous, that were
the barriers of the present "Customs Union" lifted, France's conquest
would be simply a question of half a dozen years. • For be it known that
commercial invasions axidfinancial tricks conquer nations, and more thor
oughly than is possible for armed invasion to do.
But more, at this time, would be taxing too much the patience of
Secretary Garcia. Let it here be impressed upon Mexican statesmen,
however, that Plato, in his Republic, recommended a national money
which had not a market value, and an international bullion standard
which had a market or " intrinsic" value. And a late member of the
Canadian government, the Hon. Isaac Buchanan, says :
An Exportable Commodity is not Fitted to be Money. —
" Money should be a thing. of, or beloriging to, a country, not of or
belonging to the world. An exportable commodity is not fitted to be
money, and nothing could be more monstrous than England's principle
— followed by the United States up to the war — her legislation forcing
her people to be buyers of gold, and making their possession of gold —
one of the scarcest articles in the world — the condition of their being
able to furnish themselves with food and clothing."
Fichte, Germany's great philosopher, finds the wealth of the nation
in the equilibrium of the three great industries, and regards it as the func
tion of the government to produce and perpetuate it by sufficient legisla
tion. Regarding the interchange of national productions, save of those
that cannot be produced in all latitudes, as a remnant of the barbarism
and free trade that reigned in Europe before the existing nations had
taken shape, he would at once put a stop to it by substituting paper money,
current only within national bounds, for gold and silver that pass current

76
between the nations. As to cosmopolitanism and the possibility of a
world-state, it will be time enough to talk of that when we have really be
come nations and peoples; in striving to be everything and at home
everywhere, we become nothing and are at home nowhere."
THE FATHERS OF THE UNITED STATES SUPPORT TREASURY MONEY, AND
SPEAK AGAINST BANK NOTES.
Henry Clay  National Banks are Dangerons to the Republic. —
"I conceive the establishment of this bank (National Bank) as dangerous
to the safety and welfare of this Republic."
Albert Gallatin  Banks have no Right to Issue their Notes. —
" The right of issuing paper money as currency, like that of gold and
silver coin, belongs exclusively to the nation." — Secretary of the Treas
ury, 1801-13.
John Adams. — British Interests Control the Banks. — " Banks, and
other vile freaks, have thrown the majority into the hands of those who
were shapen in Toryism, and in British idolatry did their mothers con
ceive them,"
John Randolph. — Charter a Bank, and you Create an Autocracy 
" Charter a bank with thirty-five millions of capital ; let it establish
and learn its power; and then find, if you can, means to ' bell the cat.'
It will be beyond your power ; it will overawe your Congress, and laugh
at your laws."
James Madison. — A National Bank would Control the Mercantile
Interests of the Country  " I can never give my sanction to an institution
which is capable, in any emergency, of controlling the mercantile in
terests of our country. I cannot recognize the authority of Congress to
charter a bank."
Peter B. Porter (181 i). — A Deadly Viper in the Bosom of the Con
stitution — " Let the principle of constructive or implied powers be once
established to the extent to which it must be carried in order to pass this
bill (the National Bank), and you will have planted in the bosom of the
Constitution a viper which, one day or other, will sting the liberties of
this country to the heart."
Thomas Jefferson. — Bank Paper must be Suppressed and the Circula
tion Restored to the Nation. — Thomas Jefferson, in his letters to Mr.
Eppis, volume 6 of his works, says : " Treasury bills, bottomed on taxes,
bearing or not bearing interest, as may be found necessary, thrown into
circulation, will take the place of so much gold and silver. Bank paper
must be suppressed, and the circulation restored to the nation to whom it
belongs." Henry Clay, describing the country in 181 6, in a speech " on the
bank question," said, "he beheld dispersed over the immense domain of
the United States about three hundred banking institutions. These in
stitutions were emitting the actual currency of the United States  a cur-

77
rency consisting of paper — on which they neither paid interest nor prin
cipal, while it was exchanged for paper of the community on which both
were paid. He saw these institutions in fact exercising what had been
considered at all times and in all countries one of the highest attributes
of sovereignty, the regulation of the current medium of the country."
Richard Rush (1834). — Heart and hand I am for the destruction of
the National Banks. — " What am I to think of a moneyed corpora
tion wielding funds larger than. the revenue of this nation, that tells the
nation to its face that it will spend as it pleases on the press, and deal
with Presidents as it would deal with felons ? I have barely time to say,
go on with your patriotic work of extirpating such a corporation ( the
National Bank). In such a warfare with it, I am with you, heart and
hand." Lafayette. — I Saw, With Pain, the Rise of an Aristocratic Moneyed
Institution Which Threatened the Freedom of the People. — " For a long
time I saw, with pain, the advances of an aristocratic moneyed insti
tution, which threatened to cast a poisonous mildew over our precious
liberties. They would have rendered our fair country a passive instru
ment in their hands, in which case freedom would have vanished from
among us."
" Niles' Register" (1819). — The People Granted a Bank Charter,
and Found it a Cudgel Turned Against Them. — "As soon as the bank
charter was obtained, its friends began to build up princely fortunes for
themselves, at the cost of the widow and orphan, and all honest persons
who had subscribed for stock. The people have furnished thirteen per
sons (a majority of the directors) with a cudgel to break their own heads,
for they can fix the value of every acre of land from Florida to the Lake
of the Woods."
Benjamin Franklin. — Paper Money is Superior to Gold and Silver. —
Benjamin Franklin, in vol. 4, page 82, of his works, says: "Gold and
silver are not intrinsically of equal value with iron. Their value rests
chiefly on the estimation they happen to be in among the generality of
nations. Any other well-founded credit is as much an equivalent as gold
and silver. Paper money, well founded, has great advantages over gold
and silver ; being light and convenient for handling large sums ; and
not likely to have its volume reduced by demands for exportation. On
the whole, no method has hitherto been formed to establish a medium of
trade equal in all its advantages to bills of credit made ageneral legal
tender." President Harrison. — If Anything may Destroy this Republic, it is
an Exclusive Metallic Currency. — "If any single scheme (referring in
1840 to General Jackson's Metallic Currency bill) could produce the effect
of arresting at once that mutation of condition by which thousands of our
fellow-creatures, by their industry and enterprise, are raised to the posi
tion of wealth, that is one. If there be one measure better calculated
than another to produce that state of things so much deprecated by all
true Republicans, by which the rich are daily adding to their hoards and

the poor sinking into penury, it is an exclusive metallic currency. Or
if there is a process by which the character of the country for generosity
and nobleness of feeling may be destroyed by the great increase and
necessary toleration of usury, it is an exclusive metallic currency."
President Jackson.— It Will Not be Easy to Keep in Check the
Abuses Supported by the Banking System. — President Jackson, in his fare
well address, said: * * "The corporations which create the paper
money, cannot be relied upon to keep the circulating medium uniform in
amount. The paper money system [of banks of issu.], and its natural
associates, monopoly and exclusive privileges, have already struck their
roots deep in the soil ; and it will require all your efforts to check its
further growth and to eradicate the evil. And while the people remain,
as I trust they ever will, uncorrupted and incorruptible, and jealous of
their rights, the government is safe, and the cause of freedom will con
tinue to triumph over all its enemies.
"But it will require steady and persevering exertions on your part to
rid yourselves of the iniquities and mischiefs of the Bank paper system,
and to check the spirit of monopoly and other abuses which have sprung
with it, and of which it is the main support. So many interests are united
to resist all reform on the subject, that you must not hope the conflict will
be a short one, nor success easy."
Daniel Webster. — Congress has Power to Make Anything a Legal Ten
der. — Mr. Webster said : '• Among the objects sought to be secured by the
Constitution were commerce, credit, and mutual confidence in matters of
property; and these required, among other things, a uniform standard of
values, or mediums of payment. One of the first powers given to Con
gress, therefore, is that of coining money and fixing the value of foreign
coins ; and one of the first restraints imposed on the States is the total
prohibition to coin money. These two provisions are industriously fol
lowed and completed, by denying to the States all powers of emitting
bills of credit, or making anything but gold or silver a tender in payment
of debts. The whole control, therefore, over the standard of value and
medium of payments is vested in the general government. And again,
collating the grant to Congress, and the prohibition on the States, a just
reading of the provision is this : Congress shall have the power to coin
money, regulate the value thereof and of foreign coin, emit bills of credit,
or make anything besides gold or silver coin a legal tender in payment of
debts." .
John C. Calhoun  Government Paper Made a Full Legal Tender is
the most Perfect Form of Money. — John C. Calhoun, in the Senate of the
United States, on the currency issue, said : " It appears to me, after be-
stowi'ng the best reflection I can give the subject, that no convertible
paper, that is, no paper, whose credit rests on the promise to pay, is suit
able for currency. It is the form of credit proper in private transactions,
between man and man, but not for a standard of value, to perform ex
changes generally, which constitute the approximate function of money,
or currency. No one can doubt but that the Government credit is better
than that 01 any bank — more stable and more safe. Bank paper is cheap

79
to those who make it, but dear, very dear, to those who use it. On the
other hand, the credit of the Government, while it would greatly facili
tate its financial operations, would cost nothing, or next to nothing, both
to it and the people, and would, of course, add nothing to the cost of
production, which would give every branch of our industries, agriculture,
commerce, and manufactures, as far as its circulation might extend, great
advantages, both at home and abroad ; and I now undertake to affirm,
and without the least fear that I can be answered, that a paper issued by
Government, with the simple promise to receive it for all its dues, would,
to the extent it would circulate, form a perfect paper circulation, which
could not be abused by the Government ; that it would be as uniform in
value as the metals themselves ; and I shall be able to prove that it is
within the Constitution and powers of Congress to use such a paper in
the management of its finances, according to the most rigid rule of con
struing the Constitution."
The National Platform of the Democratic Party in 1840 and
1856, said:
7. That Congress has no power to charter a national bank ; that we
believe such an institution one of deadly hostility to the best interests of
the country, dangerous to our Republican institutions and the liberties of
the people, -and calculated to place the business of the country within the
control of a concentrated money power, and above the laws and the will
of the people. ******
¦8. That the separation of the government from banking institutions is
indispensable for the safety of the funds of the government and the rights
of the people.
James Madison. — Speaking of the political influence of banks, in a
letter to Thomas Jefferson, April 23, 1796, wrote:
' ' The banks have been powerfully felt in the progress of the petitions
in the cities for the treaty. Scarce a merchant or a trader but who
depends on discounts, and at this moment there is a general pinch for
money. Under such circumstances, a bank director soliciting subscrip
tions is like a highwayman with a pistol demanding the purse."
Thomas Jefferson, in a letter to John W. Epps, June 24, 1813, says:
" And so the nation may continue to issue its bills as far as its wants
require. ******* jjU|.
this, the only resource which the government could command with
certainty, the States have unfortunately fooled away, nay, corruptly
alienated to swindlers and shavers under the color of private banks. Say,
too, as an additional evil, that the disposal funds of individuals, to this
great amount, have thus been drawn from improvement anft useful enter
prise, and employed in the useless, usurious and demoralizing practices
of bank directors and their accomplices."
" In the war of 1755, our State (Virginia! availed itself of this fund by
issuing a paper money bottomed on a specific tax for its redemption, and,
to insure its credit, bearing an interest of five per cent. Within a very
short time, not a bill of this emission was to be found in circulation. It

8o
was locked up in the chests of executors, guardians, widows, farmers, etc.
We then issued bills (greenbacks) bottomed on a redeeming tax, but bear
ing no interest. These were readily received, and never depreciated a
single farthing. * * * If treasury bills are emitted on a tax ap
propriated for their redemption in fifteen years, and (to insure preference
in the first moments of competition) bearing an interest of six per cent.,
there is no one who' would not take them in preference to bank paper
now afloat, on a principle of patriotism as well as interest, and they would
be withdrawn from circulation into private hands to a considerable
amount. Their credit once established, others might be emitted bottomed
also on a tax, but not bearing interest ; and, if ever this credit faltered,
open public loans, on which alone these bills should be received as specie.
* * _ * It is not very easy to estimate the obstacles which in the
beginning we should encounter in ousting the banks from their possession
of the circulation; but a steady and judicious alternation of emissions
and loans would reduce them in time. * .* * But it will be
asked, are we to have no banks ? Are merchants and others to be de
prived of the resource of short accommodations, funds so convenient? I
answer, let us have banks. * * * There is not a bank of dis
count on the continent of Europe (or at least there was not one while I
was there) which offers anything but cash in exchange for discounted bills.
No one has a natural right to the trade of a money lender but he who has
money to lend. Let those, then, among us, who have a moneyed capital,
and who prefer employing it in loans rather than otherwise, set up a-
bank, and give cash or treasury bills for the notes they discount."
John C. Calhoun, in his great speech of 1 837, upon treasury notes, said:
" But whatever maybe the amount that can be circulated, I hold it
clear that, to that amount, it would be as stable in value as gold and sil
ver itself, provided the government be bound to receive it exclusively with
those metals in all its dues, and that it be left perfectly optional with those
who have claims on the government to receive it or not."
On September 19, 1837, Calhoun said :
" No one can doubt that the government's credit is better than that of
any bank, more reliable, more safe. * * * Believing that there
might be a sound and safe paper currency founded on the credit of the
government, exclusively, I was desirous that those who are responsible
and have power, should have availed themselves of the opportunity."
October 3, 1837, Calhoun said :
"We are told that there is no instance of a government paper that did
not depreciate. In reply, I affirm that there is none, assuming the form
that I propose, that ever did depreciate. Whenever a paper receivable in
dues of government, had anything like a fair trial, it has succeeded. *
* * Bank paper is cheap, very cheap, to those who make it; but dear,
very dear, to those who use it, fully as much so as gold and silver."
March 23, 1838, Calhoun said :
"I now undertake to affirm, positively, * * that a paper issued by
government, with the simple promise to receive it in all dues, would * *
form a perfect paper circulation ; * * that it would be as steady and
uniform in value as the metals themselves."

Thomas H. Benton (see 30 Years' Review, vol. 1, page 450) speak
ing of the right to issue notes, said :
"The government ought not to delegate this power if it could. It
was too great a power to be trusted to any banking company whatever, or
to any authority but the highest and most responsible which was known
to our form of government.
"The government itself ceases to be independent, it ceases to be safe,
when the national currency is at tj_e will of a company. The government
can undertake no great enterprise, neither of peace ytor war, without the
consent and co operation of that company ; it cannot count its revenues
for six months ahead without referring to the action of that company, its
friendship or its enmity, its concurrence or opposition, to see how far it
will permit money to be scarce or to be plenty, how far it will let the
money system go on regularly or throw it into disorder ; how far it will
suit the interests or policy of that company to create a tempest or suffer
a calm in the moneyed ocean. The people are not safe wheri such a
company has such a power. The temptation is too great, the opportu
nity too easy, to put up and put down prices ; to make and break for
tunes ; to bring the whole community upon its knees 'to the Neptunes who
preside over the flux and reflux of paper. All property is at their mercy.
The price of real estate, of every growing crop, of every staple article in
the market, is at their command. Stocks are their plaything — their
gambling theatre on which they gamble daily with as little secrecy and
as little morality, and far more mischief to fortunes, than common gam
blers carry on in their opertions."
Abraham Lincoln, in his message, December 3d, 1861, said : " Labor
is superior to capital and deserves much the higher consideration."
General Jackson considered the U. S. Bank "destructive to the
morals of the people, the freedom .of the press, and the purity of the elec
tive franchise." THE SUGGESTIONS OF MORE RECENT THINKERS.
A. K. Owen. — Legal-tender United States Treasury notes, not redeem
able in any other circulating medium, but convertible into bonds (govern
ment securities), were first issued in 181 2, to carry on the war of that
date, by the advice of Jefferson ; and at the May term of the U. S. Su
preme Court, in 1819, tbgy were decided to be constitutional money, in
peace or war. Judge Story delivered the opinion of the Court. From
that time till March, 1863, from Madison to Lincoln, both in Democratic
and Republican administrations, the government constantly exercised its
power and issued Treasury notes. The act of Congress of 18 14 author
ized their issue-, and it was approved by Madison. The act of Oct. 12,.
1837, authorized the issue of ten millions, making them receivable in pay
ment of all duties, taxes, debts, due to the United States. May 21, 1838,
made them re-issuable. March 12, 1839, authorized the issue of the re
mainder of the notes which had not been issued. March 31, 1850, ex
tended the time of issue twelve months, and made them re-issuable. Feb- .
ruary 15, 1841, authorized the issue of five millions, additional. January
31, 1842, authorized the issue of five millions, to be issued in place of
6

82
others which had been redeemed by taxes, etc. April 15, 1842, author
ized the re-issue of any that had been taken up. July 22, 1846, author
ized the issue of ten millions additional. These latter are the note^ which
carried our armies and navies to Mexico and back. The act of August '6,
1846, provides, "that on. the first day. of January, 1847, and thereafter,
all duties, taxes, sales of public lands, debts and sums of money, accruing
or becoming due to the United States, and also all sums for postage or
otherwise, to the geapral Post-Office Department, shall be paid in gold or
silver, or in Treasury notes, issued under the authority of the United
States." (9 U. S. Statutes at Large, page 64.) These notes were held so
high for their utilities that they freely circulated in Mexico, and were
worth seven and ten cents premium over both the gold and silver coined
dollar." Hon. Reverdy Johnson. — " The question of the currency is now the
most important one before the country. It, in fact, absorbs public atten-
tention. It rises, or should rise, far above mere party contests. These,
from their nature, are for the most part ephemeral, and die with the
occasions which give rise to them. But the subject of the currency is of
permanent interest. It affects the pecuniary welfare of every citizen, the
general prosperity of the country, and the reputation of the Govern
ment." Hon. John M. Bright, M. (_., of Tennessee, said: "I would injure
, none, but have all our sections march abreast in the race of improvement.
| But I do protest against the consolidation of a great money powerin this
country, which, unchecked, sooner or later, Will subjugate the country
and the people."
Horace Greeley. — "Let Congress make our greenbacks fundable at
the pleasure of the holder, in bonds of-$ioo, $1000, and $10,000, draw
ing interest at the rate of one cent a day on each $100, (or $3.65 per
annum), and exchangeable into greenbacks at the pleasure of the holder.
Now authorize the Treasury to purchase and extinguish our outstanding
bonds, so fast as it is supplied with the means of so doing by receipts for
customs or otherwise, and to issue new greenbacks whenever larger
amounts shall be required, every one being fundable in sums of $ioo,
$1000, or 10,000, as aforesaid, at the pleasure of the holder, in bonds
drawing an annual interest of #3.65 in coin, per annum, and these bonds
exchangeable into greenbacks whenever a holder shall desire it.
"Our greenbacks, which are now virtual falsehoods, would be truths.
The Government would pay them on demand in bonds as aforesaid, which
is in substantial accordance with the plan on which the greenbacks were
- first authorized. ' '
Peter Cooper. — " No vested rights can stand in the face of the public
welfare ; common and statute law recognizes this principle. Hence all
vested rights can be repealed by the law-making power that conferred
them. Under this principle, private property can be taken for public
use, and all corporate rights can be abolished that stand in the way of
the public welfare."

83
Hon. Moses W. Field  "The credit of the nation possesses intrinsic
value as well as any metal, and it represents labor as well as gold, because
it .is issued in exchange for labor. Something must be employed for a
circulating medium, and why not use the national credit for the purpose?
Gold is out of the question, for we have not got it. Greenbacks have
worked well, (as long as we had a good supply), and they are exceed
ingly popular. I prefer these Government bills to bank bills ; public to
private credit."
" When corrupt legislation ruins trade and commerce, political dema
gogues cry out "Reform," and advise the people to practice economy;
but, how are the people to economize that have neither money nor em
ployment? If the wealthy economize, the poor must starve !"
O. F. Burton, author of " The Curse of Gold and the Philosophy of
Currency." — "While labor can, and does, produce all the necessaries
and luxuries of life in abundance, those who labor should never want.
Nations which produce and consume the most per capita rank the highest
in civilization. Barbarians, who are non-producers, and who subsist
solely upon what nature provides, should rank the highest as "political
economists.',' More than three thousand million dollars were expended
in freeing black labor from bondage Four million ballots are enough to
free the products of white and black labor from a bondage which is,
becoming more oppressive than involuntary servitude."
Hon. George P. Marsh, United States Minister to Rome. — "The ex
ample of the Ameriean States shows that private corporations, whose rule
of action is the interest of the association — not the conscience of the indi
vidual — though composed of ultra democratic elements, may become
most dangerous enemies to national liberty, to the moral interests of the
commonwealth, to the purity of legislation and judicial action, and to the
sacredness of private rights.''
A. K. Owen. — " Current-legal-tender Treasury money, of one dollar,
and decimals and multiples of one dollar, should be issued in pay
ment for labor employed and for material used in the construction and
equipment of National Utilities. Said Treasury money should be inter
convertible with Treasury Bonds bearing an annual interest not to exceed
3.65 per cent. This would give our people a comprehensive and equit-
' able current money of the realm, issued in harmony with a National sys
tem of public requirements."
The Dollar of the People. — The call for the New York State
Workingmen's Convention incorporates the following in the declaration
of principles : " The dollar of the people must be the dollar of the bond
holder. The circulating medium which bears no interest is the medium
of exchange desired in the place of National Bank Notes."
Robert G. Ingersoll. — "The National Banking System is a system
so utterly villainous and oppressive that a full and faithful statement as to
it would not be credited by the people, no matter by how respectable
authority the statement should be made."
A. K. Owen. — " The purposes and uses in life of the money lender and

84
the man ofthe roulette table, are one and the same. The game is cer
tain, and the percentage taken at each exchange will drain the money
held by their respective communities, if the play is but permitted to con
tinue." Secretary Sherman — From the present position of Secretary Sherman
no one would suppose that he ever favored the "interchangeable bond."
It would be interesting to learn by what arguments he was induced to
change his opinions, but he is on record as advocating both the justice and
the policy of issuing such a bond, which would advance the prosperity
of the country as much as the present line of policy is certain to' retard
it. On the 27th of February, 1868, Mr. Sherman said, in the Senate of
the United States :
" In 1863 we were compelled * * to take away the right of the
holder of the greenback to fund it. * * We ought promptly to
restore this right to allow the note (greenback) to be converted at any
time into some kind of bond to be converted into notes (greenbacks.)
Then there is no discrimination. * * The note-holder may go to the Treas
ury and demand his bond, and the bondholder may go also and demand
his notes. * * The process of funding these notes— they pouring into the
Treasury — will furnish ample means to redeem all the outstanding bonds
and securities as they become redeemable. * * This privilege will give
flexibility and movement to the currency of the country. * * If the
money market becomes stringent, if currency becomes scarce, the holder
may be willing to surrender his bond in order to get currency ; arid why
not give him that privilege ? This is indispensably necessary to guard
against sudden contraction and panic."
Peter Cooper. — -'The question ofthe currency is of boundless impor
tance to the American people. The stability of our Government wil.
depend on a wise settlement of this momentous interest."
Edward Kellogg. — "The most important fundamental law in any-
nation is that which institutes money; for money governs the distribution of
property, and thus affects in a thousand ways the relation of man to man.
" Look at this locomotive, inspect that steamship, examine the works
of this watch. Did the moneyed man make them ? ' No ; ' it is
answered ; ' but he caused them to be made. He found the means.
His money was the creative power.' Be it so. Then labor will make its -
own money and the capitalist will no longer be needed."
Charles M. DuPuy. — "The money of a nation is its blood. It should
flow evenly and regularly from the National Treasury, which is the heart,
through all the channels of trade, which are the veins and arteries, to the
pockets of the day laborer, which are the capilliaries and extremities, and
back to the treasury and out again. So on forever, never ceasing in its
movement ; always nourishing, invigorating and building up the entire
body politic."
Greenback Banner. — "The capital stock of all the national banks is
national bonds. Yes. These bonds are deposited with the Treasurer of
the United States, who issues national bank notes to the amount of ninety

85
per cent, of the value of the bonds. Yes. Well we propose to call in that
ninety per cent, of national bank notes, and issue in their place ninety
per cent., plus ten per cent., equal to the full face value of the bonds,
of legal tender greenbacks, competent to pay all debts, including duties
on imports and interest. We would then have just ten per cent, added
to the volume of the currency as it now stands. Wouldn't that be a
frightful inflation ? And we would establish a uniform rate of interest,
and make the taking of usury a high crime and misdemeanor. Green
back inflationists are not such fearful monstrosities after all, are they?"
Samuel Calvin. — " The whole theory of specie basis is a fraud, and
has entailed upon the people of Great Britain and the United States an
amount of want, and wretchedness, and misery, no pen can describe, no
figures estimate "
Thaddeus Stevens. — The Five Twenty Bonds — " When the bill was
on its final passage, the question was expressly asked of the chairman of
/the Committee of Ways and Means, and as expressly answered by him,
that only the interest was payable in coin."
John Sherman. — " If the bondholder refuses to take the same kind of
money with which he bought the bonds, he is an extortioner and a repu-
diator." Oliver P. Morton. — "We should do foul injustice to the Government
and to the people of the United States, after we have sold these bonds on
an average for not more than sixty cents on the dollar, now to propose to
make a new contract for the benefit of the holders."
E. M Davis — "I have also stated that the banks make annually many
millions of dollars — nearly twenty — out of the facilities that the Govern
ment furnishes them gratuitously, and I have said and still contend, that
the Government can save just about as much as the banks make out of
this gratuity. That this should be saved, no intelligent friend of just and
equal laws will deny. It is palpably unjust that forty millions of people
should pay additional taxes so that less than two hundred and ten thou
sand may pocket them. This is class legislation of the worst kind. It is
legalized theft."
Alex. Campbell. — " Chattel slavery has been abolished, but the rights
and relations of labor stand just where they did before the emancipation,
in respect to the division of the products. The difference lies in the
method of abstracting the results, and concentrating them in the hands of
a few capitalists."
Londonderry Sentinel, Ireland. — The greenbacks that were issued
by the Government during the war were given to pay the soldier, the farm
er, the mechanic, and those who aided the Government in carrying on the
war. Every dollar then issued was to pay for labor actually performed,
and therefore the greenback had a more substantial basis than that of gold
and silver, which represented only the labor of digging those metals out
of the mines. It is thus seen that the greenback had as substantial a
basis as gold and silver for money, but there comes in the fraud that has
been practiced on the people. The Government, after paying that which

86
represented labor actually performed, turns round, and, in the interest
of bankers, takes this money away from the people and converts it into
bonds, making the people pay a heavy interest ; thus changing what was
a public benefit into what is a public burthen. This is done entirely in
the interest of bankers."
The Independent, Williamsport, Pa  " Usury has been the cause of
damning more souls than all other causes combined since Adam saw the
light of day in the Garden of Eden.
" John Sherman's specie resumption has murdered more innocent
children than all the barbarian Turks for eight centuries.
" The virus of usury is more deadly to the body of industry than the
venom of the copperhead fo the physical system of man."
John A. Thompson. — "Money is the creation of government; mer
chandise, of individual industry."
Walter S. Waldie. — " Changing an inconvenient form of public debt
to a convenient one, does not increase the amount."
J. C. Briggs — " Political Economy primarily treats of but two things,
viz : Labor (or the production of wealth) and its distribution. »
'.' Money is a legal equivalent to facilitate exchanges, and to pay debts
within the jurisdiction of the Government that emits it.
"It is the prerogative of sovereignty to emit money, for as Aristotle
truly says, ' Money is not a production of nature, but a creation of law.'
" In deciding of what a nation will make its money, only two things
are to be considered, viz : Ability to furnish it in sufficient volume, and
its utility when furnished.
" And as paper money by its utility is demonstrated to be indispens
able to the business of this age and nation, it is clear that we must have
paper money.
"It is evident that the power to emit money is too sacred to be dele
gated to corporations.
" Money should be put in circulation by the Government in payment of
supplies furnished or of services rendered or of debts incurred by the
government ; for it is an axiom that money of whatever kind is evidence
that the holder has either directly or indirectly rendered an equivalent to
the government whose stamp it bears, either in supplies furnished or
services rendered.
"The above is a very brief synopsis of a Monetary System whose
adoption will be the dawn of brighter days, but the postponement or
rejection of which imperils alike our social well-being and our national
existence." Peter Cooper. — " Let us adopt a permanent policy of public finance
that shall hereafter control both the volume and the value of the national
currency in the interest of the whole people, and not of a class. Let us
have a national currency fully honored by the government, and not as
now, partially demonetized — the sole currency and legal tender of the
country, taken for all duties and taxes, and interconvertible with the bonds,
at a low but equitable rate of interest. This will forever take the creation

87 *
of currency and its extinction out of the hands of banks and those inter
ested in making it scarce and high, and put it completely under the con
trol of law and the interests of the people.
" Let us promote and instruct industry all over the land by founding,
under national, State, and municipal encouragement, industrial schools of
every kind that can advance skill in labor. The rich need the literary
and professional schools and colleges, and they should' have them ; but
the poor need the industrial school of art and science, and it should be
made the duty of the local governments to provide a practical education
for the mass of the people as the best method of ' guaranteeing to every
State a republican form of government.'
" The government can do much toward promoting the industry of this
people and encouraging capital to enter upon* works of manufacture by a
judicious tariff upon all importations of which we have the raw material
in abundance and the labor ready to be employed in the production. It
is.no answer to this to say, 'Buy where you can cheapest.' I have said
before, ' We cannot, as a nation, buy anything cheap that leaves our own
good raw materials unused, and our own labor unemployed.'
" Let us' have a civil service as well organized and specific as the mili
tary or naval service. Let us take the civil service out of mere political
partisanship, and put such appointments upon the ground of honesty,
capacity, and educational fitness, so that no man can hold hi^ office and
receive its emoluments without a faithful discharge of the duties prescribed
by the law."
A. K Owen. — In March, 1876, A. K. Owen was one of a committee
for Pennsylvania to explain the evils which would result if $500,000,-
000 of the 6 20 bonds were refunded as then proposed. The following
are his closing remarks :
" Let Congress, therefore, form a Bureau of National Internal
Public Improvements. Let this Bureau muster constructive (not de
structive) armies for the completion of these public works, and, through
the Treasury Department, let, there be issued Treasury money of
one dollar and fractions and multiples thereof, made interconvertible
with an interest bearing bond not to exceed 3.65 per cent, per annum, in
payment for labor rendered and for material used. This is a ways and
means to complete at once these important public works by the people's
labor, with the people's money, and for the people's uses. Then would
the wheels of industry be started ; then would the whistle upon the loco-
. motive, factory and steamboat be heard in every district of our interior ;
then would industry be rewarded, and poverty, bankruptcy, crime and
suicide end ; then, and then only, would the debts of the nation be paid
in full, and in gold or its equivalent. Mnnev_ but marks the price, labor
pays it.
"If it is wrong for the government to construct and control its high
ways in the interest of the whole people, it is criminal for the government
to build and control its post-offices, its army and its navy, Are gentlemen
of the Constitutional school ready to hand over the people's post-offices,
their army and their navy, to special-legislation autocrats? Are. the pro-

88
ducers to continue to be wage slaves by the Constitution, or by the
special explanation of other technicalities?
"In concluding, permit me to submit the following queries, made by
the justly celebrated Bishop Berkeley, in his "Querist," written in 1770,
at Cloyne, Ireland, to your careful consideration."
" 134 is the celebrated query : Whether if there was a wall of brass a
thousand cubits high, our natives might not, nevertheless, live cleanly and
comfortably, till the land, and reap the fruits thereof?
"114. Whether a nation might not have, within itself, real wealth suffi
cient to give its inhabitants power and distinction, without the help of gold
or silver ?
" 35. Whether power to command the industries of others is not real
wealth ? And whether money be not in truth tickets or tokens for record
ing and conveying such power, and whether it be of consequence what
material the tickets are made of?
"531. Whether our prejudices about gold and silver are not very apt to
infect or misguide our judgments and reasonings about the public weal ?
" 557- Whether it would not be a monstrous folly to import nothing but
gold and silver, supposing we might do it from every foreign port to
which we trade ? And yet, whether some may not think the foolish cir
cumstance a very happy one ?
"560. Whether the immediate mover, the blood and spirits, be not
money — paper or metal— and whether the soul and will of the community,
which is the primer mover that governs and directs the whole, is not the
Legislature ?
" 1. "Whether the four elements and man's labor therein be not the
true source of wealth ?
" 8. Whether the public aim of every well governed State be not that
each member, according to his just pretensions and industry, should have
power? "35. Whether power to command the irtdustryfof others be not real
wealth ? „And whether money be notinVutlriicketsW tokens for record
ing and conveying such power, and whether it be of consequence what
material the tickets are made of !
"41. Whether a single hint be sufficient to overcome a prejudice ? And
whether obvious truths will not sometimes bear repeating?
" 43. Whether gold and silver, if they should lessen the industry ofthe
inhabitants, would not be ruinous to a country? And whether Spain be
not an instance of this?
- "217. Whether the real foundation of wealth must not be laid in the
numbers, the frugality, and the industry of the people ? And whether all
attempts to enrich a' nation by any other means, as raising the coin, stock
jobbing and such arts, be not vain?
"240 Whether in New England all trades and business are not as much
at a stand upon a scarcity of paper money, as with us from a scarcity of
specie ?
"251. Whether there are not to be seen in America fair towns, wherein
the people are well lodged, fed and clothed, without a beggar in their
streets, although there be not one grain of gold or silver among them ?

89
( "252. Whether these people do not exercise all trades, build ships, and
1 navigate them to all parts of the world ; purchase lands, till and reap the
| fruits of them ; buy and sell ; educate and provide for their children ?
| Whether they do not ever indulge themselves in foreign vanities ?
I "253. Whether, whatever inconveniences these people may have in-
curred from not observing either rules or bounds in their paper money,
j be it yet not certain that they are in a more flourishing condition, have
larger and better built towns, more plenty, more industry, more arts and
1 civility, and a more extended commerce, than when they had gold and
silver current among them ? And as to the inconveniences, might not a
^ little sense and honesty easily prevent them ?
"431. Whether the united stock of a nation be not the best security?
1 And whether anything but the ruin of the State can produce a national
bankruptcy ?
" 439. Whether the prejudices about gold and silver are not strong,
but whether they are not still prejudices? "
f Charles \Moran says : " The question to be met and settled now is,
/ Shall money continue to rule and curse mankind, or shall it be made to
I serve and bless ?"
Thomas J.-Durant. — " The instrument of exchange now in existence,
metallic or paper, convertible or legal tender, does not possess qualities
adapted to the purposes of justice. A dollar represents various amounts .
of labor and time in various departments of serviceable exertion, so that
commodities are sold and services remunerated at the most dispropor
tionate rates, and therefore most unjustly."
A. K. Owen, in an interview, November 25 th, published in La Rcvista
Mexicana, said : "Mexico will never be otherwise than poor and depend
ent so long as her mines attract her people from useful and diversified in
dustries. Mexico has produced two-thirds of all the silver and gold used
in the world's exchanges, and yet to day Mexico is one of the poorest
and most dependent nations on the earth, while France, Belgium, Ger
many and England, which do not produce either gold or silver, have all the
gold and silver, commercially .speaking, just because they utilized their
labor, which is the only true wealth of any country, and diversified their
industries, and thus in proportion as they became self-dependent they be
came independent of others. Mexicans should recollect that they neither
eat, wear, sleep upon, ride on, nor shelter themselves, with silver or gold ;
hence gold and silver can not possibly become essential or important to
the comfort or prosperity of a people. But no persons can possibly be
come civilized without proper food, dress, beds, facilities of intercourse,
and Jiouses. Therefore, those persons, states and nations which employ
their time in digging the first, to the neglect of growing and manufactur
ing the latter, must and forever will remain the slaves of others, or else
must get out of the world's tracks, and hide in the primitive dress and
resources of Adam and Eve.
" California (this State has made noteworthy progress of late years
just in proportion as her mines have been abandoned and her people
have gone injo diversified employments), Nevada and Colorado are the

9o
poorest, meanest and most dependent states in the Union, excepting the
agricultural South ; while the Eastern and Middle States, where the asso
ciation of man with his fellow-man has been encouraged, and where
silver or gold are not found, is where all the conveniences, comforts, lux
uries, and high moral and intellectual development exist. Why, then,
will not Mexican statesmen look to Mexico's real source of individual
and national wealth — to Mexico's home labor — and employ it to diversify
the nation's industries, so that there will be employment for every class
of mankind and for every grade of talent, and which will make Mexico
independent of the workshops other than her own? Why is it that
after three hundred years of wonderfully successful silver and gold dig
ging and poor agriculture — associated as they have been in all these long
dreary seasons with poverty, misery, disease and crime — is not the word
given to the Mexican people ' to right about face' and to join in those
efforts which study and practice have so forcibly and unmistakably illus
trated in all districts, among every people, and in every age and clime
where peace and security, health and prosperity, have reigned?"
Stephen Colwell, author of " The Ways and Means of Payment,"
i860, says: "___ the trade of a country, foreign or domestic, is not dependent
upon the precious metals, so neither are the payments. It is obvious to all
who know anything of the movements of trade, or the processes of pay
ment in the large way, that neither the one nor the other are carried on
by means of gold or silver. Prices are all expressed in money of account.
The sums named in bills of exchange, promissory notes, bank-notes and
books of account, are all expressed in money of account ; finally, all debts
and credits are so expressed. What is required, in the processes or ma
chinery of payment, is, that they should be commensurate in power with the
work to be done. As so few payments (in progressive countries) are actu
ally made in gold or silver, it is evident that they are not regarded as ade
quate to the task to be accomplished. Their agency is now restricted to
the retail trade, and to the payment of balances in the foreign and domes
tic trade. ****** Tfie great payments of trade are not
effected, directly or indirectly, by means of the precious metals. Out
of the retail trade they are mere commodities, the supply and use of
which is regulated by the demand for them, and the means of purchasing
them. The machinery and processes of payment have very little neces
sary or actual connection with the precious metals, whether in the shape
of coins or bullion.
" The great point aimed at, in regard to payment of this paper (Treasury
money) was not to procure money to pay it, but to pay it without respect
to gold or silver. The business was not to be regulated by gold and sil
ver, but by the industry and energies of the people, and their facilities
for transportation and consumption.
" It is the real basis of commodities in trade, arid movements in indus
try, which sustains the cash credits in their benefits both to the banks and
their customers — which redeems the notes of the one, and pays the debts
of the others.
" No creditor can ask any more effective payment to himself than that
which enables him to pay his own debts. The chief facility by which

9i
this payment is accomplished arises from the fact that the debt is mutual.
In every million, about nine hundred thousand is strictly mutual, and is
susceptible, therefore, of ultimate payment by being balanced (by means
of Treasury money or simply by means of a book of debt and credit).
"The great law of (foreign) trade upon which exchange is based, is an
equivalent exchange of commodities ; where this fails, exchange ceases.
Where the debts are equal, the operations of exchange will balance them ;
where the equality ceases, exchange stops, except so far as it may be pro
longed upon the credit of those who deal in it, and a further transfer of
commodities must take place,
" Foreign Exchange is simply the adjustment, by bills of exchange, of
the payments arising out of the foreign trade, which in many countries
does not reach one per cent, of the home trade, and in none does it reach
more than io to 12 per cent.
" Foreign Exchange was much better understood centuries past than it
is now, that by such means (offsetting commodities with commodities,
services with services), payments to a vast amount could be effected. ' '
Money of Account. -^In many countries the money of account and
coins do not correspond. It is so in China, Mexico, Gibraltar, and for-.
merly in Venice, etc., etc. The money of account is the most important
money in the- world. With a fixed understanding of it comes a true
knowledge of finance. Let us see what Stephen Colwell says on the sub
ject. "In the United States [185.6-9], gold and silver are the only legal
tender in payment of debts, and yet not one thousand dollars of debt in a
thousand millions is paid in those metals. Men must, therefore, be much
more familiar with prices, and with money of account, than they are with
the precious metals.
" When a price is fixed in the ordinary course of dealing, the naming
such a price is not the same thing as holding up to the party to whom it
is named a quantity of gold and silver of equivalent value. When a bar
rel of flour is said to be worth five dollars, the party fixing that price does
not mean the quantity of gold in a ' half eagle,' or of silver in five dol
lars, for that quantity he does not know. He uses the same expression he
would use if he were asked the value of the half eagle, ' five dollars.' So
if, in England, an article is said to be worth fifty-five, shillings, neither
party forms any idea of the quantity of gold equivalent to that amount,
although payment cannot be made in silver beyond fifty shillings. So, dur
ing our Revolutionary war, when for many years there was only a paper
circulation, prices were expressed in the various currencies of *he differ
ent colonies, and very few indeed could have been guided by the quan
tity of gold or silver equivalent to any price expressed in their pounds,
shillings and pence.
" It is evident, therefore, that money of account is the medium in which
prices are quoted and expressed in all countries. It is capable of measur
ing, comparing and stating values to the utmost extent of the requirements
of trade. Much confusion of ideas has arisen from blending the functions
of coin with those of money of account, in legislation, in works on the

92
subject of money, and in conversation. It is unfortunate for clear views
on this subject, that the money of account has not, in all countries, as in
China, been kept wholly distinct from the coins."
A. K. Owen says: "The dealers in exchange may be said to be book
keepers of the foreign trade, who charge the goods exported, and credit
those imported, and who see that the balance is settled with the some one
or more commodities previously agreed upon, by the parties themselves
or by their respective governments. Silver, gold, tea, coffee, cotton,
logwood and India rubber, are the commodities mostly used to adjust
international balances. There is no such thing as money used in foreign
trade. If coins are employed to settle balances, they are used as com
modities,* go simply as bullion, not as money; for how can one nation's
money be money outside of its own boundaries, except by special treaty,
as, for instance, in the "Latin Union." Let it here be emphasized that
money, metal or paper, never pays a debt of any kind. Money
simply credits a person for a service rendered, and gives him a lien
or a first mortgage, to its par value, upon the services or commodities of
all other citizens and upon his government. In the Venitian government
the money was not transferred from person to person as now, but the
debits and credits were transferred upon the books of the Bank of Venice
by clerks, and the system had many excellent merits. "Money,"
Lacretius says, " is given in fee simple to none, in use to all." Therefore,
it is an imperative duty of the Government to supply a secure and sub
stantial money to its people, that they may exchange their services with
equity. Money is no use until it is exchanged for a service or a com
modity. It is, therefore, only valuable when it can be exchanged for
services or commodities, and the greater the diversification of employ
ments the greater value has money. Money has nothing within itself of
any value — in fact, a money which is made of a marketable commodity
can not possibly be but a barbarous and imperfect money. Money is, in
fact, intrinsically the most worthless thing in society, as the yard- stick is
in the store, as the pound-weight and bushel measure are in the market
place." Henry Carey Baird says: "No country which has existed has ever
developed a tithe of the power which its people and its resources have
been capable of, because all governments are now and ever have been
run by and for the few to the exclusion of the many ; whereas, it is these
latter who really constitute the State and possess the ability to make it
rich and powerful. Stein, the famous Prime Minister of Prussia, had a real
appreciation of this great truth, when, after the battle of Jena, his coun
try was crushed beneath the iron heel of Napoleon, and it became neces
sary to have a real State resting upon the broad shoulders of the people,
' to compensate the kingdom's loss in extensive greatness by intensive
strength.' He abolished feudalism and its accompanying slavery, and
called into being a large body of peasant proprietors, among whom the
*An ounce of gold bullion in London is worth one shilling and sixpence more than
the same weight of the same metal when coined in other countries than Great
Britain.

f
land was divided, and who thus were made to feel that they had a country
worth defending.
"Associatioh with his fellow-men — the ability to exchange services,
commodities and ideas— is the first and the great and paramount need of
man ; and that State will be greatest, freest, most stable, roost enduring,
and most powerful in which this force is most fully developed among the
whole body of the people ; and of whose power to labor the least possible
quantity is lost, and the greatest utilized. The conditions essentjal to
this are :
i. Land within the reach of the people as proprietors, which places
them in the position, while feeding themselves, of readily utilizing the
remainder of their labor, by storing it up and finally disposing of it in the
form of agricultural products.
2 Diversified industries, which by the differences in commodities, arid
services, as well as in wants, render exchanges easy and rapid.
3. And finally, a full volume of money, happily termed the instrument
of association, which can alone make possible an instantaneous exchange
of services, commodities and ideas, by admitting of their ceaseless compo
sition, decomposition and recomposition, and enabling those who need
them to command them*, thus utilizing the countless billions of billions
of minutes of which the lives of a people are constituted.
"It is the absence of one or all of these conditions which has hitherto
caused nine-tenths or more of the power of every State to be wasted
beyond recovery ; thus producing individual want, misery, and crime,
and national weakness and instability, where individual plenty, happiness,
and virtue, and national power and stability, should have been permanent
and ever-widening and intensifying.''
Adam Smith. — " Labor is the ultimate price paid for everything.
Labor, therefore, is the real measure of exchangeable value of all com
modities." Thomas Carlyle recently described or suggested the very state of
things of which we have caught so weird and startling a glimpse in the
United States. He said : "Wait a little, till the entire nation is in an
electric state ; till your vital electricity, no longer healthfully neutral, is
rut in two isolated portions of positive and negative (of money arid of
hunger), and stands there bottled up in two world-batteries. The stirring
of a child's finger brings the two together, and then — What then?"
' David Hume. — " In our Colony of Pennsylvania, the land itself, which)
is the chief commodity, is coined and passed into circulation. A planter
immediately after he purchases any land can go to a public office and
receive notes to the amount of half the value of his land, which notes he ,
employs in all payments, and they circulate through our colony by con- 1
vention. To prevent the public from being overwhelmed by this repre
sentative money, there are two means employed : first, the notes issued
to any one planter must not exceed a certain sum, whatever may be the
value ofthe land; secondly, every planter is obliged to pay back into the
public office every year one-tenth of his notes. The whole is of course
annihilated in ten years, after which it is again allowed him to take out
new notes to half the value of his land." /

94
Edmund Burke. — " This was the monetary system under which the
American Cblonists prospered to such an extent that Burke said of them,
'Nothing in the history of the world is like their progress.' It was a
wise and beneficial system, and its effects were most conducive to the
happiness of the people."
John Twells. — " In an evil hour, the British Government took away
from America its representative money : commanded that no more paper
' bills of credit should be issued, that they should cease to be a legal
tender,' and collected the taxes in hard silver. This was in 1773. Now
mark the consequences. The contraction of the circulating medium par
alyzed .all the industrial energies of the people. Ruin seized upon these
once flourishing Colonies, the most severe distress was brought home to
every interest and every family ; discontent was urged on lo desperation;
till at last 'human nature,' as Dr. Johnson phrases it, 'arose and
asserted its rights.' In 1775, the American Congress first met in Phila
delphia. In 1776, America became an Independent State." J
John Ruskin. — "Whereas it has been known and declared that the
poor have no right to the property of the rich, I wish it also to be known
that the rich have no right to the property of the poor."
Sir John Sinclair. — "It was a great discovery when a metallic me
dium was substituted for barter ; it was also a great discovery when paper
was made convertible into gold and silver ; but a third discovery was
reserved for our own times, viz. : that with an inconvertible paper cur
rency agriculture, commerce, and manufactures might advance in a
career of unexampled prosperity."
Adam Smith. — " Some of the best English writers upon commerce
set-out with observing that the wealth of a country consists, not in its
gold and silver only, but in its lands, houses and consumable goods
of all different kinds. In the course of their reasonings , however, the
lands, houses, and consumable goods seem to slip out of their memory,
and the strain of their argument frequently supposes that all wealth con
sists in gold and silver, and that lo multiply those metals is the great object
of national industry and commerce."
Thomas Carlyle. — "You are doing no good there (California);
you are harming the world. Cover over your mines, leave your gold in
the earth, and go to planting potatoes. Every man who gives a potato to
the world is the benefactor of his race ; but you with your gold are over
turning society, making the ignoble prominent, increasing everywhere
the expense of living, and confusing all things."
John Ruskin. — • ' The intricacy of the question has been much increased
by the hitherto necessary use of marketable commodities, such as gold,
silver, salt, shells, etc, to give intrinsic value and security to currency ;
but the final and best definition of money is a documentary promise, rati
fied and guaranteed by the nation, to give or find a certain quantity of
labor or the results of labor."
John Locke  "If one-third of the money were locked up (or exported,

95
as we see in these days), the people, not perceiving money to be gone,
would be jealous one of another, and each would employ his skill and
power the best he could to retrieve it again, and bring it back into his
pocket in the same plenty as before. But this is but scrambling among
ourselves, and helps no more against our wants than the pulling of a sheet
coverlet will, among children that lie together, preserve them all from
the cold. Some will starve, unlesss the father (the government) provide
better, and enlarge the scanty covering (provide more money)." ¦
David Hume. — " In every country into which money begins to flow in
greater abundance than formerly, everything takes a new face': labor and
industry gain life ; the merchant becomes more enterprising ; the manu
facturer more diligent and skillful ; and the farmer follows the plough with
more alacrity and attention." ^
Richard Ricardo— "A regulated paper currency is so great an im
provement in commerce that I should greatly regret if prejudice should
induce us to return to a system of less utility. The introduction of the
precious metals for the purposes of money, may with truth be considered
as one of the most important steps toward the improvement of commerce
and the arts of civilized life. But it is no less true that, with the ad
vancement of knowledge and science, we discover that it would be an
other improvement to banish them from the employment to which, dur
ing the less enlightened period, they had been so advantageously applied."
Herbert Spencer. — "Manifestly, therefore, during any intermediate
state, in which men are neither altogether dishonest nor altogether honest,
a lfKxed currency will exist ; and the ratio of paper to coin will vary with
the degree of trust individuals place in each other."
Wm. Pitt, in 1791, when Hamilton introduced to the public his fund
ing and banking scheme, said : " Lei the Americans adopt their funding
system, and go into their banking institutions , and their boasted independence
will be a mere phantom."
Jonathan Duncan, B. A., in a book entitled " The Bank Charter
Act," asks : " Ought the Bank of England, or the people of England, to
receive the profit of the national circulation ?
" Paper money," he says, "no doubt had its abuses, but so had the
steam engine before the safety valve was invented ; and it will be attempted
to be shown that the invention of a paper money was as vast a step as
from spoken to written language, from manuscript to print. O
* " It is plain that those who pay the dividends of a*national debt are
( the bondsmen of those who receive them ; if the debt did not exist, the
/power of production would not be the less, but the produce would re-
' main in the pockets of the producers.
^- "The Romans issued a tribute money among the Britons in the pur- 1
chase of servicesand commodities, and simply received the money in for
tributes or taxes which they imposed. u
"The coins of the British Prince Cunoboline were not only stamped
with the figures of animals, but with the word "Tasios," which signifies
tasks tax, or tribute. The payment of them into the exchequer acquitted

96
the payer of duties on merchandise, and was a commutation for personal
services." Sir Thomas More  " I see a conspiracy of rich men who never think
they have robbed enough. So help me God, I can perceive nothing but a
certain conspiracy of ridh men, procuring their own commodities under
the title of commonwealth. They invent and devise all means and craft,
first how to keep safely, without fear of losing, what they have unjustly
gathered together ; and next how to hire and choose the work and labor
for as little money as may be."
Marquis de Mirabeau. — " The two greatest inventions of the human
mind are writing and money — the common language of intelligence and
the common language of self interest." '
After reading the above opinions of persons who have figured in the
world's history, Secretary Garcia may, with reason, ask why then, if so
conclusive be the evidence in favor of Treasury money versus bank credits
and metallic coins, why is it that the people in the United States permit
such a system of false payments to exist ? The answer is plain. The
greater number and best persons in the so-called " Republic of the United
States" have gone apparently to sleep, thinking that God Almighty would
have a care over their Constitution and laws ; and villains have got pos
session of their legislatures, of their congresses, of their courts, and of
their administrations ; have given away to each other every possible and
conceivable privilege; and, it is only since 1873 that the non-incorpor
ated masses have been getting awake to the enormous legislative evils
within their midst. The Treasury Money and Anti-corporation Party,
in the United States, now poll over two million votes. This represents
ten million bf determined and liberty loving persons, or a population
equal to that of Mexico. In another year or so they will hold the reins
of power,/*?/- the force of circumstances is with them, and they will then
undo that which the lawyers and politicians have been secretly consummat
ing for the past fifty years. But the position of this party of progress in
the United States, perhaps, may best be understood by quoting a para
graph by Carlos Butterfield, and published about 1859, in support of
Benito Juarez and his brave patriots. If Secretary Garcia will substitute
" United States" for "Mexico," and " National Banks" for "The
Clergy," he will have the present state of the case in the United States.
" Why has not the majority of the nation prevailed against the minority?
The answer is : The clergy are richer than the nation. While the people
cannot borrow at all, the clergy can borrow on their paper at the rate of
ninety to ninety-five per cent. The clergy are, therefore, more powerful
than the people, and they have made use of their moneyed power to bribe
the army (the courts and legislatures) of the country. With this a<hd a

97
liberal use of money in other quarters, they have been able to hold their
own in a few of the central walled cities, and by means of shrewd secret
agents in foreign countries, have managed to blind the eyes of those gov
ernments holding relations with Mexico. They have been materially
aided in this last work by the criminal stupidity- or knavery of resident
foreign ministers in Mexico, who have allowed themselves to be made
their ready tools. It was, perhaps, all for the best that the clergy should
have had power sufficient to defeat the popular will and plunge the coun
try into anarchy — that" foreign ministers should have taken notice of
knaves or fools — in fact, that all possible calamities should have been
heaped upon the country at once. The circumstance has brought Mexico
into a crisis from which she can hardly escape without leveling the evils
of the abuses of the clergy, which have obtained such mammoth growth
in this rich and most beautiful portion of America."
Secretary Garcia holds the destinies of Mexico in his power. The
completing of the Texcoco-Huehuetoca canal, as has been suggested in
communications to President Diaz and Secretary Pankhurst, by the un
dersigned, will give a safe, positive, speedy and permanent basis to inau
gurate the required reform.
If the Mexican people are explained to and called upon to stand by
their government while the necessary step is taken, there can be no
docrbt but that the " guadalupes" will respond with their accustomed
(patriotism, and that the much-required measures can be started without
any disturbance to existing business, without risk or the loss of one cent
to the revenues of the government. '
Can there be a doubt as to the gratitude that the " guadalupes" will
entertain for the administration which delivers them from the tyrannies
of England's system of gold-basis despotism and bank-credit piracy ?
Is Secretary Garcia equal to the occasion? Will he make a resolute
effort in behalf of the prostrated industries and the suffering people of
Mexico? .Respectfully, A. K. Owen.
. • .Our present prosperity cannot be permanent, because it is based on the same false
money system that has resulted disastrously every five or ten years since we became
a nation ; and that system is the issuing of paper money with a promise to redeem it
in coin.
Coin, being an exportable article, renders us liable to every commercial fluctuation
in Europe, without regard to whether we are doing a prudent business or not, and it
is certain to be exported as soon as the balance of trade is against us. Thus the for
eign trader who does only five per cent, as against ninety-five per cent, of home trade,
by his recklessness, because of our false system, can plunge the whole country into
commercial distress. E. M. D.
March 20, 1880.

VALLEY OF MEXICO.

Iturbide Hotel, City of Mexico, May 31, 1879.
Francis P. Dewees, Esq.
Dear Sir :
On a line drawn from Vera Cruz to Manzanillo, on the 19th parallel of
north latitude, midway across the continent, somewhat nearer the Atlan
tic than the Pacific ocean, " at an elevation," Prescott says, " of nearly
seven thousand five hundred feet, is the celebrated valley of Mexico. It
is of an oval- form, about sixty-five leagues in circumference, and is en
compassed by a towering ^rampart of porphyritic rock, which nature
seemes to have provided, though ineffectually, to protect it from inva
sion. The soil, once carpeted with a beautiful verdure, and thickly
sprinkled with stately trees, is often bare, and in many places white
with the incrustation of salt caused by the draining of the waters. Five
[six] lakes are spread over the valley, occupying one-tenth of its surface.
On the opposite borders of the largest of these basins, much shrunk in
their dimensions since the days of the Aztecs, stood the cities of Mexico
and Tezcuco (Texcoco), the capitals of the two most potent and flour
ishing states of Anahuac, whose history, with that of the mysterious races
that preceded them in the country, exhibits some of the nearest ap
proaches to civilization to be met with anciently on the North American
continent." "The valley of Mexico, or Tenochtitlan, of which I publish a very
minute map," says Humboldt, "is situated in the centre of the Cordil
leras of Anahuac, on the ridge of the porphyritical and basaltic amygda
loid mountains, which run from the S. S. E. to the N. N. W. This val
ley is of an oval form. According to my observations, and those of a
distinguished mineralogist, M. Don Luis Martin, it contains, from the
entry of the Rio Tenango into the lake of Chalco to the foot of the Cerro
de Sincoque, near the Desague Real of Huehuetoca, eighteen and one-
third leagues in length, and from S. Gabriel, near the small town of
Tezcuco, to the sources of the Rio de Escapusalco, near Guisquiluca,
. • .There have been no volumes published on the Valley of Mexico equally interest
ing and reliable with " The Political Essay on the Kingdom of New Spain," by Baron
Von Humboldt. No one can fully understand this subject without reading Vol. II.
(98)

99
twelve and one-half leagues in breadth. The territorial extent of the
valley is two hundred and forty-four and one-half square leagues, of
which only twenty-two square leagues are occupied by the lakes, which
is less than a tenth of the whole surface.
" The circumference of the valley, reckoning from the crest of the
mountains which surround it like a circular wall, is sixty-seven leagues.
This crest is most elevated on the south, particularly on the south-east,
where the great volcanos of La Puebla, the Popocatepeitl and Iztaccihuatl
bound the valley. One of the roads which lead . from the valley of Te
nochtitlan to that of Cholula and La Puebla passes even between the two
volcanos, by Tlamanalco, Ameca, La Cumbre, and La Cruz del Coreo.
The small army of Cortez passed by this road on his first invasion. * * *
" From being long accustomed to hear the capital of Mexico spoken of
as a city built in the midst of a lake, and connected with the continent
merely by dikes, those who look at my map will be no doubt astonished
on seeing that the centre of the present city is 4,500 metres distant from
the lake of Texcuco, and more than 9000 from the lake of Chalco. They
will be inclined, therefore, either to doubt the accuracy of the de
scriptions in the history of the discoveries of the New World, or they will
believe that the capital of Mexico does not stand on the same ground
with the old residence of Montezuma ; but the city has certainly not
changed its place, for the cathedral of Mexico occupies exactly the
ground where the temple, of Huitzilopochtli stood, and the present street
of Tacuba is the old street of Tlacopan, through which Cortez made his
famous retreat in the melancholy night of the ist of July, 1520, which
goes by the name of Noche triste. The difference of situation between
the old maps and those published by me arises solely from the diminution
of the water of the lake of Tezcuco. * * * * *
" But the circumstance which has contributed the most to the diminu
tion of the lake of Tezcuco is the famous open drain, known by the
name of the Desague real de Huehuetoca* which we shall afterwards dis
cuss. This cut in the mountain, first begun in 1607, in the form of a sub
terranean tunnel, has not only reduced within very narrow limits the two
lakes in the northern part of the valley, /. e., the lakes of Zumpango and
San Christobal ; but has also prevented their waters, in the rainy sea
son, from flowing into the basin of the lake of Tezcuco. These waters
formerly inundated the plains and purified a soil strongly covered with
carbonate and muriate of soda. At present, without settling into pools,
and thereby increasing, the humidity of the Mexican atmdSphere, they are
drawn off by an artificial canal into the river of Panuco, which flows into
the Atlantic ocean.
*" Duringits (the City of Mexico's) occupation by the Spaniards, from 1521 to 1821
the most remarkable events in the local history of Mexico were five great inundations,
in 1553, 1580, 1604, 1607, and 1629, caused by the overflowing of .the neighboring
lakes. To prevent the recurrence of these inundations, a great drain was dug through
the hill of Nochistongo, by which the waters of the river Quautitlan were led out of
valley, instead of falling into the lake of Tezcuco. This work, which was upward of
100 years in process of construction, is about 12 miles long, from^ioo to 130 feet deep,
and between 200 and 300 feet wide^ It was completed in 1789." — New American
Cyclopaedia. 1

IOO
" This state of things has been brought about from the desire of con
verting the ancient city of Mexico into a capital better adapted for car
riages, and less exposed to the danger of inundation
' ' The water and vegetation have in fact diminished with the same rapid
ity with which the tequesquite (or carbonate of soda) has increased. In
the time of Montezuma, and long afterwards, the suburb of Tlatelolco,
the barios of San Sebastian, San Juan, and Santa Cruz, were celebrated
for the beautiful verdure of their gardens : but these places now, and
espec ally the plains of San Lazaro, exhibit nothing but a crust of efflor
escent salts. The fertility of the plain, though vyet considerable in the
southern part, is by no means what it was when the city was surrounded
by the lake. A wise distribution of water, particularly by means of
small canals of irrigation, might restore the ancient fertility of the soil,
and re-enrich a valley which nature appears to have d«stined for the cap
ital of a great empire.
" The actual bounds of the lake of Tezcuco are not very well deter
mined, the soil being so argillaceous and smooth that the difference of
level for a mile is not more than two decimetres. When the east winds
blow with any violence, the water withdraws towards the western bank of
the lake, and sometimes leaves an extent of more than 600 metres dry.
Perhaps the periodical operation of these winds suggested to Cortez the
idea of regular tides, of which the existence has not been confirmed by
late observations. * * * The commerce of the inhabitants of the
small town of Tezcuco suffers much in the very dry months of January
and February ; for the want of waer prevents them from going in canoes
to the capital. The lake of Xochimilco is free from this inconvenience ;
for from Chalco, Mesquic, and Tlahuac, the navigation is never once
interrupted, and Mexico receives daily, by the canal of Iztapalapan, rOots,
fruits and flowers in abundance.
"Of the five lakes of the valley of Mexico, the lake of Tezcuco is
most impregnated with muriate and carbonate of soda. The nitrate of
barytes proves that this water contains no sulphate in dissolution. The
most pure and limpid water is that of the lake Xochimilco, the specific
weight of which I found to be 1.0009, when that of water distilled at the
temperature of 180 centigrade was 1 000, and when water from the lake
of Tezcuco was 1.0215. The water of this last lake is consequently
heavier than that of the Baltic sea, and not so heavy as that of the ocean,
which, under different latitudes, has been found between 1.0269 and
1 0285. The quantity of sulphuretted hydrogen which is detached from
the surface of all the Mexican lakes, and which the acetate of lead indi
cates in great abundance iii the lakes of Tezcuco and Chalco, undoubtedly
contributes in certain seasons to the unhealthiness of the air of the valley.
However, and the fact is curious, intermittent fevers are very rare on the
banks of these very lakes, of which the surface is partly concealed by the
rushes and aquatic herbs.
"Adorned with numerous teocallis, like so many Mahomedan steeples,
surrounded with water and dikes, founded on islands covered with ver
dure, and receiving hourly in its streets thousands of boats which vivified
the lake, the ancient Tenochtitlan, according to the accounts of the first

IOI
conquerors, must have resembled some of the cities of Holland, China,
or the Delta of Lower Egypt. The capital, reconstructed by the Span
iards, exhibits, perhaps, a less vivid, though a more august and majestic
appearance. Mexico is undoubtedly one of the finest cities ever built by
Europeans in either hemisphere. With the exception of Petersburg, Ber
lin, Philadelphia, and some quarters of Westminster, there does not exist
a city of the same extent which can be compared to the capital of New
Spain, for the uniform level of the ground on which it stands, for the
regularity and breadth of the streets, and the extent of the public places.
The architecture is generally of a very pure style, and there are even edi
fices of very beautiful structure. The exterior of the houses is not loaded
with ornaments. Two sorts of hewn stone, and the porous amygdaloid
called tezontli, and especially a porphyry of vitreous feld-spath without
any quartz, give to the Mexican buildings an air of solidity, and some
times even magnificence. There are none of those wooden balconies and
galleries to be seen which disfigure so much all the European cities in
both the Indies. The balustrades and gates are all of Biscay iron, omai
mented with bronze, and the houses, instead of roofs, have terraces like
those in Italy and other southern countries.
*r *!¦ *P *t» *|E ^K -|C
" However, it must be agreed, that notwithstanding the progress of the
arts within these last thirty years, it is much less from the grandeur and
beauty ofthe monuments, than from the breadth and straightness of the
streets, and much less from its edifices than from its uniform regularity,
is extent and position, that the capital of New Spain attracts the admira-
ion of Europeans. From a singular concurrence of circumstances, I
have seen successively, within a very short space of time, Lima, Mexico,
Philadelphia, Washington, Paris, Rome, Naples, and the largest cities of
Germany. By comparing together impressions which follow in rapid suc
cession, we are enabled to rectify any opinion which we may have too
easily adopted. Notwithstanding such unavoidable comparisons, of which
several, one would think, must have proved disadvantageous for the capi
tal of Mexico, it has left in me a recollection of grandeur, which I princi
pally attribute to the majestic character of its situation and the surround
ing scenery.
" In fact, nothing can present a more rich and varied appearance than
the valley, when, in a fine summer morning, the sky without a cloud, and
that deep azure which is peculiar to the dry and rarefied air of high moun
tains, we transport ourselves to the top of one of the towers of the cathedral
of Mexico, or ascend the hill of Chapoltepec. A beautiful vegetation sur
rounds this hill. Old cypress trunks (los ahuahuetes) of more than 15
and 16 metres in circumference, raise their naked heads above those of
the schinus, which resemble in their appearance the weeping willows of
the east. From the centre of this solitude, the summit of the porphy-
ritical rock of Chapoltepec, the eye sweeps over a vast plain of carefully
cultivated fields, which extend to the very feet of the colossal mountains
covered with perpetual snow. The city appears as if washed by the
waters of the lake Tezcuco, whose basin, surrounded by villages and ham
lets, brings to mind the most beautiful lakes of the mountains of Switzer-

102
land. Large avenues of elms and poplars lead in every direction to the
capital ; and two aqueducts, constructed over arches of very great eleva
tion, cross the plain, and exhibit an appearance equally agreeable and
interesting. The magnificent convent of Nuestra Senora de Guadalupe
appears joined to the mountains of Tepeyacac, among ravines, which
shelter a few date and young yucca trees. Towards the south, the whole
tract between San Angel, Tacabaya, and San Augustin de las Cuevas,
appears an immense garden of orange, peach, apple, cherry, and other
European fruit trees. This beautiful cultivation forms a singular contrast
with the wild appearance of the naked mountains which inclose the val
ley, among which the famous volcano of La Puebla, Popocatepetl, and
Iztaccihautl are the most distinguished. The first of these forms an
enormous cone, of which the crater, continually inflamed and throwing
up smoke and ashes, opens in the midst of eternal snows."
H. C. Ward, England's Minister to Mexico during 1825-27, in his
Mexico, vol. II., page 39, writes :
"The second day made converts of us all; in the course of it we had
occasion to visit most of the central parts of the town, and, after seeing
the great plaza, the cathedral, the palace, and the noble streets com
municating with them, we were forced to confess not only that Hum
boldt's praises did not exceed the truth, but that amongst the various
capitals of Europe there were few that could support with any advantage
a comparison with Mexico.
" Every one who has resided in a southern climate, knows how much
the purity of the atmosphere tends to diminish distances ; but even at
Madrid, where the summer sky is beautifully clear, I never saw it produce
this effect in so extraordinary a degree as at Mexico. The valley is sur
rounded with mountains, most of which are, at least, fifteen miles from
the capital, yet on looking down any of the principal streets (particularly
in the direction of San Angel or San Agustin), it appears to be termin
ated by a mass of rocks, which are seen so distinctly, that on a fine day,
one can trace all the undulations of the surface, and almost count the .
trees and little patches of vegetation which are scattered over it.
" Nature, on the other hand, as if to compensate the want of the luxu
ries of the Old World, seemed to have been most magnificent in her gifts.
For many days after my arrival, I could never pass a common fruit-stall
without stopping to admire the variety of fruits and flowers with which it
was adorned, * * * It must always be borne in mind that
Mexico, from the peculiarity of its geological structure, and the manner
in which heat is modified by height in every part of its territory, com
bines, sometimes, within a very few leagues, the greatest possible variety
of climates. On the road to Acapulco, for instance, a descent, as rapid
as that from Las Vigas to Jalapa, commences within a few miles of the
capital, so that on reaching the plains -of Cuernavaca, (forty miles from
Mexico city) you find a Tierra Caliente, with all its various productions,
from which Mexico derives a constant and most abundant supply. On

103
the table-land, flowers are to be found at all seasons, but particularly from
March to June, when roses spring up in such profusion that, on the dias
de fiesta, hundreds of men and women, of the very lowest classes, are
seen returning, covered with garlands, from the ' Chinampas' (floating
islands). The trees, too, preserve their foliage during ten months of the
year. . " With such advantages as these, the valley about the capital might
be made a paradise."
Page 84. " The valley of Tenochtitlan, or Mexico, forms a vast basin
which, although it is situated at an elevation of 7,000 feet above the level
of the sea, serves as a receptacle for the humidity which filters from every
part of the lofty ridge of porphyritic mountains by which it is surrounded.
Not a single stream issues from the valley, with the exception of the Ar
royo of Tequisquic, but it receives the waters of the rivers Papalotla,
Texcoco, Teotihuacan, Guadalupe, Pachuca, and Guautitlan, by the ac
commodation of which the four great lakes of Chalco (and Xochimilco),
Texcoco, San Cristobal, and Zumpango, are formed. These lakes rise by
stages as they approach the northern extremity of the valley. * * The
lake of Zumpango receives the tributary streams of the river of Guautit
lan the volume of which is more considerable than that of all the other
rivers, which enter the valley, combined."
Page 76. — " Nothing can be finer than the first view of the valley of
Mexico, as it bursts upon you from a point a little above the Venta de
Cordova, with its lakes, rocks, villages and haciendas, scattered around
the capital in one vast basin. It is impossible not to be struck with so
magnificent a scene."
Carlos Butterfield, writing in 1859, makes the following statements :
' ' The valley of Mexico is surrounded by mountains, in which abound
the tezontle, porhyry, basalt, obsidian, and various species of lava. It is
generally believed that the entire valley of Mexico is one enormous crater
of an ancient volcano, covered over by a crust of earth of recent form
ation. "The highest of these mountain, are called Talapon and Afusco.
Nothing of the metallic or granitic order is found in this district. Vege
tation is vigorous and varied, and the mountains present phenomena
truly extraordinary.
" The surrounding mountains yield an abundance of timber, .especially
pine, and various woods for building and manufacturing purposes. The
valley is exceedingly fertile, producing corn, wheat, barley, frijoles, etc.;
fine fruits, pears, perones, apples, peaches, figs, nuts, mulberries, cherries,
chestnuts, zapotes, aguacates, and some of the tropical fruits, such as
oranges, lemons, and chirimoyas. Vegetables flourish all the year.
"The larger portion of the inhabitants, except those of the city of
Mexico, are engaged in agriculture. Many are employed in the manu
facture of crockery-ware, silk, woolen and cotton goods, paper, beer,
soap, liquors, oil, iron, etc. There are two establishments for the manu
facture of fine crockery-ware, one at Tacubaya and one. in the city of

104
Mexico. There are four manufactories of paper located a short distance
from the city. Considerable attention is given to the raising of horses,
mules, cattle, and domestic fowls.
"The city of Mexico, capital of the republic, is situated in the centre
of the remarkable and beautiful valley which has just been described. It
is in latitude 190 25' 45" N. and longitude 1030 45' 53" W. from
Greenwich, but its elevation above the sea of 7,500 feet, secures to this
region an even, salubrious, and delightful climate. The mean tem
perature of the city is 170 (R.), 210 (Cent.) The barometer varies
between 23 and 23.2 English inches. The magnetic needle declines
go -0/ 12// 10 tj^e East The prevailing winds are North-east and North.
"The city is on a perfect level, but its plan is somewhat irregular.
Length from north to south 4,018 yards; breadth from east to west
3,276. There are 252 squares or blocks of buildings, 316 streets, 140
small, irregular streets, 12 bridges, and 90 plazas great and small. The
population is estimated at 200,000.
"For a century (following 1542), the city continued to increase (from
30,000) in numbers, wealth and power, so that when Captain John
Smith and his followers were looking for gold mines in Virginia, and.the
Pilgrims were planting corn in Massachusetts, an empire had been
founded and built up on the same Continent by Spaniards, and the most
stupendous system of plunder the world ever saw was then and there in
vigorous operation.
"The capital of the republic has made but little progress since it
became independent of Spain. In general terms, it may be said that the
inauguration of the Republic brought no peace or prosperity to the
country, or matetially advanced the interests of the city of Mexico.
"A glance at the map will, convince any one that the geographical
position of the city of Mexico is highly important and advantageous. It
is in the centre of a country of surpassing richness and beauty. But the
history of this capital, from the day of its foundation by the Aztecs, pre
cisely seven centuries ago, is one of constant revolution and warfare No
earthly record worthy of credence excels it. From first to last it has
been the stronghold of political dissension and bloodshed. * * *
But it is to be hoped the dark night that has hung over this beautiful city
and country so long is nearly over, and that in our day the light of wis
dom, truth, and virtue will dawn upon the race so abused and despised by
all the world.
" The city of Mexico, with its surrounding district, is destined to pos
sess a dense population and all the elements of power, by which it will
figure largely in the world's history, and this at no very remote day."
In a publication, " The Meteorology of Mexico," made by the Mexican
Society of Geography and Statistics, in 1876, are found the following :
" Mexico, the capital ofthe Mexican Republic, is a city situated in the
north-eastern part of an elliptical valley, which has its greater axis from
north to south, and its lesser from east to west. The valley, which is sit
uated between the principal and highest elevations of the mountains of
the Cordilleras which surround it, is placed at an elevation of 2,276

105
metres above the level of the sea, on the high table lands of Anahuac.
This valley is open, extensive, level, with its bed formed of loose earths,
detached from the surrounding Cordilleras by running streams.
" The capital, situated as has been said before, is located lat. 190 26'
12" N., and at long. o. This city, built in the highest part of so vast a
bowl, which at another time was an extensive laguna, remains, to-day, at
a little distance from the lakes which surround it to the N. E., E., S. E.,
and N.
" By being, to-day, a city constructed on an ancient lake, actually
filled up. it should be classified among the marsh cities. It is, also, a city
on the higher table lands of Anahuac, classified for -its hygiene among
those populations of more than 2,000 metres above the level of the sea."
M. J. J. Ampere, a French traveler, says : " Mexico is a grand city;
in the Spanish style, with an air more inspiring, more majestic, more
metropolitan, than any city of Spain, except Madrid. Crowned by
numerous towers and steeples, and surrounded by a vast plain bounded
by mountains, Mexico reminds one somewhat of Rome. Its long streets,
broad, straight and regular, give it an appearance like Berlin. It has,
also, some resemblance to Naples and Turin, yet with a character of its
own. It makes one think of various cities of Europe, while it differs from
each of them It recalls all and repeats none."
M. Michf.l Chevalier, in his volumes of 1864, says :
" I shall not dwell in detail on the march from Cholotan to' Tenoch
titlan, though it will be at the sacrifice of a description of populous and
well-built cities, of gardens more sumptuous than those of the haughty
Semiramis, and of mountains whose defiles recall the enchanted countries
of the romances of chivalry. Let us enter the capital with Cortez."
Soon after the arrival of Cortez in Mexico, Brantz Mayer says, he ex
pressed to the Emperor a- desire to see this city ; and, with all becoming
pomp and ceremony, he took his future conqueror to the top of the
temple, whence he beheld the splendor of the Indian capital :
" Streets, canals, shrines; large and beautiful houses, amid groves and
gardens ; markets, where every luxury of fruit and vegetable was to be
found; aqueducts, which brought sweet water from the hills; streets
filled with artists who wove the most beautifully pictured garments from
plumes of birds, or fashioned tlie precious metals into gorgeous orna
ments ; palaces, where the nobles dwelt in all the magnificence of bar
baric wealth — all these lay in splendor beneath him, while the land and
water swarmed with an active but superstitious multitude, and the lake
beyo d bore them across its silvery surface, dotted with floating gardens,
to the foot of the mountains where the sunshine forever warmed the fruits
and flowers into vigorous life.
" Such was the city of Mexico, and the style of the Emperor ; but it
was not alone in externals that the nation was great and powerful. It
was regulated by good laws, well and speedily administer] ; the relations
of life were recognized and guarded ; it fostered a good system of edu
cation ; the arts were cultivated and encouraged; architecture had ad
vanced to a high degree of excellence ; the knowledge of astronomy, and

io6
of the calculation of time, was exact and scientific; they were powerful
in war ; they had built a vast empire ; springing from a sparse tribe which
found its first home among the reeds and marshes of the lake where they
ha*d hidden for safety from their foes ; and, although their religious rites
were brutal and bloody, they still had some glimmering ideas of an invisi
ble and omnipotent God."
In speaking of the astonishment and entertainment which Cortez and
his troops experienced when they for the first time beheld the scene which
surrounds the home of Montezuma, Prescott makes the following record :
"It was that of the valley of Mexico, or Tenochtitlan, as more com
monly called by the natives, which, with its picturesque assemblage of
water, woodland, and cultivated plains, its shining cities and shadowy
hills, was spread out like some gay and gorgeous panorama before them.
* * * * Stretching far away at their feet, were seen noble
forests of oak, sycamore, and cedar, and beyond, yellow fields of maize
and the towering maguey, intermingled with orchards and blooming
gardens ; for flowers, in such demand for thair religious festivals, were
even more abundant in this populous valley than in other parts of Ana
huac." It was to the Spainards "the promised land"— it was "the Ven
ice of the. Aztecs" — it was Anahuac, which, literally translated, means
"the land on the water-side ,-" or, as Garcia Cubas, Mexico's present his
torian, says, "the land between the waters," which being first applied to
the valley of Mexico, situated as it was for the most part between the
lakes, eventually took a broader range and described Mexico entire, as it
rested between the Atlantic and Pacific Oceans. .
Prescott never followed Cortez from or into this valley, but that he
paused upon its edge — but that he halted the column upon its heights, but
that he called attention to and again turned with admiration and elo
quence to that picture — to the valley of Mexico, upon which he loved so
well to dwell. In every instance he speaks of the forests, which then
covered the valley — of its fertility and of its flowers. Why should »not
these oak, cedar, and sycamore trees again shade this land?
We are told that Cortez, during his first sojourn in Mexico City, built
two vessels to transport his troops on Lake Texcoco, and that he got the
timber for such purpose from the royal forests ; that after the vessels
were launched, Cortez, Montezuma, and their staffs, went abroad and
crossed the lake " to the large forests, on the opposite shore, reserved for
hunting," and there enjoyed the chase; and, en route to Cuernavaca,
that " Cortez encamped in a mulberry grove."
Cortez built his second fleet of thirteen vessels at Tlascala, twenty
leagues to the eastward, and transported them in pieces to Texcoco.

107
Here he put them together, and dug a canal one and a half mile long
by twelve feet wide and twelve feet deep, by which means he launched
them in the Lake of Texcoco. This canal was partly cut through hapd
rock, and was partly a surface canal, with sides of solid masonry and pal
isades of wood ; and was the work of eight thousand men for two
months. Brantz Mayer, attache to the United States Legation to Mexico, in
1 841-3, in his volume, " Mexico as It Was and as It Is," makes the fol
lowing notes :
" Mexico, lying in the lap of a valley, with mountains around it con
tinually pouring their streams into the sanddy soil, has been frequently in
danger of returning to the ' slime from whence she rose.' Since the trees
have been cut from the plains, and the surface exposed to the direct ac
tion of the sun, the valley has become drier, and the lake has shrunk,*
but Mexico has, nevertheless, been several times threatened with inun
dations. "In estimating the dangerous situation of the metropolis, it is neces-
• sary for you to recollect the positions and levels of the adjacent lakes.
Southeastwardly is the lake of Chalco ; northwestwardly the lake of Tex
coco; and north of that again, in a continuous chain, are the lakes of
San Cristoval and Zumpango. The latter sheet of water is about eighteen
feet higher than San Cristoval. San Cristoval is twelve feet higher than
Texcoco, and the level of the great square of Mexico is not more than
three feet above that of Texcoco. Thus, the head of water which could
be easily poured over the capital is immense, especially as the river Cuau-
titlan pours an additional stream constantly into the northern link of the
chain at Zumpangs. In 1629, the whole city of Mexico, with the excep
tion of the Plaza, was laid waste by inundation. In most of the streets
the water continued for upwards of three years, and, until 1634, portions
of the town were still traversed hy canoes.
' ' So great was the misery and want caused by this misfortune, that the
Court of Spain had issued orders to abandon the capital and build a new
one, between Tacuba and Tacubaya, on upland levels that had never
been reached by the lakes before the conquest. An earthquake, however,
rent the earth and freed the city of the accumulated waters ; and the
result of this warning was the completion of an immense 'Desague,' or
sewer, which thoroughly empties the ordinary contents of the valley.
But, urgent as was the necessity for this work, it was procrastinated by
the dilatoriness of Mexican laborers, until the year 1789. The whole
length of the cut is said by Mr. Ward to be, from the sluice called Verti-
deros to the salto of the river Tula, 7,537 feet, where the waters are dis
charged at a spot about 300 feet beneath the level of the lake Zumpango.
* In the 17th century, Enrico Martinez found the level of Texcoco to be 1.10 metres
below the Grand Plaza of Mexico City; in the 18th century Senores Velasquez and
Castera gave the relative height as 1.24 metre, and in our day it is given as 1.907
metre.

io8
The estimate of the whole cost of this gigantic enterprise, and its neces
sary repairs until the year 1830, is $8, 000, 000 ; yet, with all the expendi
ture and vast labor, it may still prove, in certain cases, only efficacious
aglinst a portion of the waters that are collected in the valley. South of
the capitol are the lakes of Chalco and Xochimilco, and their level is more
than a yard higher than that of the great square of Mexico.
" This Desague, and the noble aqueducts by which the city i6 supplied
are the only very great enterprises of this character in this country."
The above statements made by Mr. Mayer must be taken with great
caution, for they are not carefully written, as may be seen ; but as they
bear upon the subject in question, and belong to "standard literature," I
quote them in full.
When Mr. Mayer first viewed the valley, he expressed himself in the
following language :
"The edge of the mountain was soon turned, and as the coach
dipped forward on the descent of the western slope, a sudden clear
ing in the forest disclosed the magnificent valley of Mexico. *
* * I am really afraid to describe this valley to y.u, as I dislike to deal
in hyperboles. I have seen the Simplon, the Splugen, the view from
Rhigi, the wide and winding Rhine, and the prospect from Vesuvius over
the lovely bay of Naples, its indolent waves sleeping in the warm sun
shine on their purple bed ; but none of these scenes compare with the
valley of Mexico. They want some one of the elements of grandeur,
all of which are gathered here. Although the highest triumphs of human
genius and art may disappoint you, nature never does. The conceptions
of Him who laid the foundations of the mountains and poured the waters
of sens from His open plam can never be reached by the fancies of men ;
and if, after all the exaggerated descriptions of St. Peter's and the Pyra
mids, we feel sick with disappointment when we st ind before them, it is
never so with the sublime creations of the Almighty.
" You would, therefore, no doubt, most readily spare my attempting to
give by the pen, a description of what even the more graphic pencil has
ever failed faithfully to convey. But I feel in some measure bound to
make for you a catalogue of this valley's features, though I am confident
I must fail to describe or paint them.*
"It is laced with large bodies of water, looking more like seas than
lakes; it is dotted with innumerable villages, and estates, and plantations;
eminences rise from //which, elsewhere, would be called mountains, yet
there, at your feet, they seem but ant-hills on the plain ; and now, letting
your eye follow the rise of the mountains of the west 1 near fifty miles
distant1, you look over the immediate summits that wall the valley, to
another and more distant range — and to range beyond range, with valleys
*The finest paintings of the Valley of Mexico are by the great artist Jose M. Ve
lasco, a native of Mexico. His largest picture took the first premium at our Centen
nial, '76, and is now in the possession of the Mexican Government.

i <_9
between each, until the whole melts into a vapory distance, blue as the
cloudless sky above you.
"I could have gazed for hours at this little world, while the sun and
passing vapor chequered the fields, and sailing off again, left the whtole
one bright mass of verdure and water, bringing out clearly the domes of
the village churches, studding the plain or leaning against the first slopes
of the mountains, with the huge lakes looming larger in the rarefied
atmosphere. Yet one thing was wanting. Over the immense expanse
there seemed scarce an evidence of life. There were no figures
in the picture. It lay torpid in the sunlight, like some deserted region
where nature was again beginning to assert her empire — vast, solitary,
and melancholy. There were no sails, no steamers on the lakes, no
smoke over the villages, no people at labor in the fields, no horsemen, no
coaches or travelers but ourselves. The silence was almost supernal ural ; ¦
one expects to hear the echo of the national strife, that filled these plains
with discord, yet lingering among the hills. It was a picture of Still life,
inanimate in every feature, save where, on the distant mountain sides, the
fire of some poor coal-burner mingled its blue wreath with the blue sky,
or the tinkle of the bell of a solitary muleteer was heard among the dark
and solemn pines.
" What a theatre for the great drama that has been performed within
the limits of this valley ! When Cortez first stood upon these mountains
and looked down on the lovely scene, peaceful then and rich under the
cultivation of its Indian children ; the hills and plains covered with forests,
and much of what is now dry land, hidden by the extensive lake, in the
midst of which rose the proud city ofthe Aztec kings, filled with palaces
and temples, in site another Venice on its inland sea ; in art, the Indian
Attica ; — when he» beheld, I say this tranquil scene at his feet, what must
have been the avarice and the relentlessness of an unknightly heart, that
urged him onward to the destruction and enslavement of a civilized and
unoffending people, whose only crime was, the possession of a country
rich enough to be plundered to minister to the luxury of a bigoted race
beyond the sea. * * * * At length, as we gained the top of a little
eminence, our driver pointed out the city of Mexico, a long line of turrets
and domes and spires buried in the lap pf beautiful meadows, and screened
partially by intervening trees planted along the numerous avenues leading
to the capital. About two leagues from the city we came to the ancient
border of the lake of Tezcoco, now a marshy flat, from which the waters
have receded. Here we mounted the Calzada, or causeway, raised about
six feet above the surrounding waters."
Later, Mr. Mayer writes of a drive he takes upon the principal curso,
and as the custom is the same now as it was then, as the same sights, in
cidents and experiences are met with to-day, I am glad to have him tell
you about it in his own language.
" For an hour or more in the afternoon, it is the custom to pass up and
down the sides of the paseo, nodding and smiling at the cavaliers who
show off their horsemanship along the centre of the road. Here the
utmost luxury and style are exhibited in the equipment of carriage and

no
animal. Gold embroidery, silver plating,, and every ornament that can
add splendor to harness and livery, are brought forth. * * * * On
approaching this charming drive, the whole plain of the valley of Mexico
is at once revealed to you, without passing a dirty suburb. On your
right is the cypress-covered and castle-crowned hill of Chapoltepec,
formerly the site, it is alleged, of one of Montezuma's palaces ; before
you and behind you stretch two immense aqueducts, the one coming
from the hills, the other from a greater distance, near Tacubaya, and
screening that village as it leans against the first slopes of the western
mountains. On your left tower the volcanos, on whose summits the
last rosy rays of sunset are resting.
" The gay throng disperses as the moon rises above the mountains,
pouring a flood of clear light, bright as the day in other lands, over the
tranquil landscape.
" Conceive yourself placed on a mountain nearly two thousand feet
above the valley, and nine thousand above the level of the sea — a sky
above you of the most perfect azure, without a cloud, and an atmosphere
so transparently pure that the remotest objects at the distance of many
leagues are as distinctly visible as if at hand. The gigantic scale of
everything first strikes you — you seem to be looking down upon a world.
No other mountain and valley view has such an assemblage of features,
because nowhere else are the mountains at the same time so high, the
valley so wide, or filled with such variety of land and water. The plain
beneath is exceedingly level, and for two hundred miles around it ex
tends a barrier of stupendous mountains, most of which have been active
volcanos, and are now covered, some with snow and some with forest.
"The moonlight of Mexico is marvelously beautiful. That city, you
remember, is 7,500 feet above the level of the sea, and.nearly that number
of feet closer to the stars than we are (writing from Baltimore) ; the
atmosphere, consequently, is more rarefied, and the light comes, as it were,
pure and placid from heaven — you seem able to touch the stars, so bril
liantly near do they stand out relieved against the background of an
intensely blue sky. Strolling on such nights in Mexico, when I saw the
sharp lines of tower and temple come boldly out with shape, and even
color, almost as bright, -yet softer than at noonday, I have often been
tempted to say that the moonlight you get at home (much as it is the
theme of poets and lovers), is but second-hand stuff, compared with that
of Mexico. And so with the climates. Between the seashore at Vera
Cruz and the volcanoes whose eternal snows hang over Mexico, you have
every climate of the world. In the valley there is a perpetual spring.
For six months in the year rain never falls; during the other six
months, showers occur almost daily. It is never hot, never very cool,
and you may wear your cloak or your summer dress the whole year, ac
cording to the temper of your nervous system. One side of the street is
always too warm at noon. Cold and sleeting as it is here in January, the
roses are already blooming freshly in the gardens of Mexico. Nor is there
preceptible change of foliage on the forest trees ; the new leaves push off
the old ones with a gentle force, and the regeneration of the seasons is
effected without the process of fading, wilting,' withering and dying, which

Ill
makes with us the melancholy days of autumn the saddest of the year.
To look at the external world, you would say there was no such thing as
death in Mexico. The rose and the leaf you admire to-day, are replaced
to-morrow by fresh buds and renewed verdure."
Col. Albert S. Evans, who accompanied Secretary Seward on his tour
through Mexico, in 1869-70, and embodied his notes in a volume en
titled, "Our Sister Republic," makes the following remarks on the subject
we are now considering :
" I cannot imagine a place which has more of interest to the traveler
than the city of Mexico, both within its walls and in its immediate sur
roundings. Paintings and statuary, fine old buildings, beautiful flowers,
objects and points of historic interest, and women whose loveliness is pro
verbial, attract the attention ofthe traveler, go where he may. * * * *
We drove first to the grand canal, which connects Lakes Chalco and Tex
coco, by way Of which a large part of the fruit, vegetables and other
provisions enter Mexico. This canal has a rapid current towards trie city,
and is navigated by almost innumerable boats, of small size, propelled
by poles in men's hands after the old Mississippi 'broadhorn' style. Every
thing entering the city must pay a duty, as in Paris, and there is an arched
gateway at one point thrown across the canal, where the custom collec
tors and their deputies are 011 duty night and day. The assistants have
long spears with which they probe' and run throngh a cargo in a few min
utes, or seconds, and it is seldom that any contraband article escapes
their vigilance. This station is called 'La Garita de la Viga.' It is
said that the customs collected from the boats loaded only with farm pro
duce, at this garita, average twelve hundred, dollars per day. *****
The famous floating gardens of Mexico lie along the shore of this Lake
Xochimilco for miles, and on both sides of the grand canal. They were
all sections of a great float or ' raft' composed of the roots and stalks of
water plants originally, and thickened into a thin sheet of rich soil, in
time, by alluvial deposits, such as may be seen in various parts of
the western states, and along the borders of the sluggish rivers of the far,
southwest. * * * Between each is a narrow strip of open water or
canal, and most of them are highly cultivated and covered with garden
vegetables. The flat bottomed boats, with awnings to keep off the sun,
looking not unlike the Chinese 'Sampans,' run down the canal through
these gardens, a long distance, and you can hire one to carry you
twelve miles and back for less than a dollar ; human muscle is cheaper
here than steam. * * * * We went up on the roof (Castle of Cha-
pultepec) and looked down on the fair valley of Mexico — the fairest, it
seemed to us, on which our eyes had ever gazed. The grand old forest,
with its huge trees* covered with long, gray moss, hanging down like a
funeral pall, and the winding road leading up to the castle, were at our
*The largest of the Ahuehuetes or cypress trees of Chapultepec measures 165 feet
high and 46 feet in circumference. The cypress, known as the noche triste, histori
cally associated with Cortez, is 60 feet in circumference, and is estimated to be as old
as 4,000 years. These trees are peculiar in being -natural artesian wells, for their roots
go down until they find running water, and the water comes through the centre of the
roots', and at times is seen to flow out at the topmost limb.

112
feet. * * * The valley of Mexico, with its surrounding mountains,
forms a perfect amphitheatre, of which Chapultepec is the 'dress circle.'
Popocatapetl, the white-headed old monarch of all the mountains of
North America, towers in everlasting grandeur high into the blue heavens,
in the southwest, and ' the woman in white' [Iztaccihuatl] — his glorious
spouse — stands beside him like a royal bride at the altar. Every part
of the ground within the limit of our vision is historic, and around it
clings nearly the entire romance of the New World.
"Inexpressibly lovely is the prospect from the verandahs of Chapulte
pec, turn which way you will, and I do not wonder that Maximilian
lavished such sums upon' the spot which he fondly anticipated was to be
the home of himself and his descendants, and the seat of power of a
mighty empire, which he*imagined he had founded on the ruins of liberty
in America. The last official document signed by this infatuated dreamer
was an order for the importation of two thousand German nightingales
with which to stock the groves of Chapultepec."
Let us now stand on the roof of the church of the " Prof esa," a central
position in Mexico city, and with Gilbert Haven, bishop, and author of
" Our Next door Neighbor," look on the capital at our feet :
" This is a royal place to see this royal city. Never had a town such
grand environment. Athens has mountains and sea, but scanty plains.
Rome, plains, but no water, and low-browed hills. Jerusalem, mountains,
but no plains nor sea. Modern cities are without the least trace of scenic
loveliness. London, Paris, New York, Philadelphia, Chicago, New Or
leans, and Berlin, how cheap their panorama ! It is a map and not a pic
ture that one draws when he paints these capitals. Boston and Baltimore
make a slight approach to hill effects, but only a hundred feet high are
their mountains, and no plains to set off even these.
" Look here ; turn your eye and take in this scene. Everywhere a
green valley, everywhere dahlia hills— the true dahlia — that deep purple
sliding into black, and yet never losing its royal bloom, the finest color
of all for the garments of men and women, as well as for Greek and
Aztec mountains.
" I am looking southward ; so may you. The city lies all about us, its
limits being equidistant in all directions. Its flat roofs extend for a mile,
domed twice or thrice with spacious churches. Then comes a flat gray
field for several miles — it is probably more than ten miles. It is sprinkled
with trees, especially to the west, and at its farther termination. To its
right, or westward, the trees grow denser, and evidently line thorough
fares and fill gardens. A village glistens under the hill in which it is
ending Then comes a mass of dark and rugged peaks, soft in their rug-
gedness, and light in their darkness, the fields creeping well up their
sides, and sometimes, but rarely, climbing on and over their heads.
" This southern route was the one chosen by Cortez and Scott for en
tering the town. Between the two snow volcanoes they came over a lofty
pass, around the western edge of that broad, flashing lake, by the side of
the canal that you see stretching out,, lined with trees and floating gardens.
* * * * Keep your eye and head moving westward, and you see the

"3
same city landscape beyond, and tall hills in the rear. Almost due west
lies Chapultepec, the favorite haunt of the rulers of this people from
Montezuma to Juarez, a superb park, palace and picture. It is a fortress
and a garden, a sort of a Windsor Castle, set down with its hilltop, forests,
and views, three miles from London town. * * * On getting round
toward the north, the girdle of nearer hills dips down, giving glimpses of
mountains beyond. The level lands stretch out farther, fifteen and twenty
miles before the passes are touched. The country is full of trees, which
are all full of greenness— church towers peer above their tops, and white
and dark specks appear among the interstices, the proofs that this wide
area has villages amidst its. verdure.
"To the right still, the landscape narrows to its closest limits, and the
sierra of Guadalupe comes within three or four jmiles of the town. It is
a range fifteen or twenty miles long, that casts its nearest and highest bat
tlements over against the city. It is woodless, bright, of purple brown,
without a shady retreat, save such as recesses may give."
Now we will descend to the sidewalks below, and with Bishop Haven,
glance at Mexico City — from a street point of view.
" It is a paradise of climates. The air is just right every day. A light
cape is all you want across your shoulders, and that is to be worn in the
house rather than out of doors, for the houses are cooler than the streets.
Flowers and fruits are everywhere, and very excellent in taste and looks
Great bouquets of violets and other delights, packed in the mechanical
French fashion, learned, it is said, from the French, and improved on by
the Aztec, are offered you for a York shilling and upward. The flower
girls stand or Sit at the corner of the streets — sometimes old men and
women — with their big and little bouquets on, the sidewalk about them.
Strawberries, blackberries, and green peas are cheap and good, black
berries fifteen c. nts a quart, and others in proportion, while bananas and
oranges, and the fruits less familiar to us, are piled up on the table and '
forced upon a gorged appetite. * * * * The first peculiarity you will ob
serve is the romantic outlook almost every street corner affords. You look
straight through the city, and bound your vision by the purple mountains,
whichever direction you gaze. Take any corner where the streets pass clear
through the town, you see, north, south, east and west, or as-near that as
the lines run, the all-embracing mountains. They are from three to thirty
miles distant — some even sixty miles— and yet they look as if only just
down to the further end of this telescopic tube of a street. They rise from
two to ten thousand feet, and so are never diminutive, often very magnificent.
" No city I have ever seen has any equal cincture — Athens approaches
it. Her chief streets look out on Pentilicus and Hymethis ; but she is
not level herself, and so can not get up these vistas; nor is she large,
and does not, therefore, match her mountains. They overpower her —
not she them. Mexico is equal to her grander mountains. Popocate
petl is not ashamed to call her sister, nor is she unworthy of such a com-
pani'onship. Athens historically overtops all its peaks. Mexico in its
present proportions well fits her magnificent frame. One never tires of
this resting place for the eye. It is so exquisite in calm and color, that
it seems as if made/ on purpose for exhibition and exhilaration."
8

U4
For a farewell look at the Valley of Mexico we go to Guadalupe and
ascend with Bishop Haven to the heights of Tepeyac, and with our faces
turned eastwardly read his description :
" Here lies the vision that charmed the Toltec twelve centuries ago, the
Aztec eight centuries ago, the Spaniard three centuries ago, and ^the
French, Austrian and American conquerors of our own day. From my
post it spreads out into a plain that loses itself in a sun mist forty miles
away. Across the plain threads of water stretch themselves, sometimes
spreading into bayous or lakes. The lake and level end in a ridge that
rises from the surface as modest as the tiniest slope, but grows and grows,
not fast, but steadily, like a true fame, into a sharp, brown edge, well
lighted up, slides down a little on its continual ridge, and then rises
again, still not sharp nor sudden, nor seemingly very high, but into a
ragged rim covered with snow. You are surprised to find so low a hori
zon covered with perpetual ice. Yet there it lies, not so low after all. It
is ten thousand feet above this seat, and nearly eighteen thousand above
the gulf, that reclining lady of the skies, who rejoices in the unpronounce
able name of Iztaccihuatl. I have heard all sorts of people seek to speak
this word, and never heard two agree. So call it as it looks, or call it
Big I, which it undoubtedly is. You see her head, neck, chest, robes and
feet, white slippered, with the toes turned up at the daisies of the stars,
with a long trail sweeping beyond, as becomes this white woman, which
that hard name means. The southern side of this snow range drops off
to a sharp and snowless ridge, where the pass lies over which Scott and
Cortez marched. Narrow as it looks, it is probably several miles before
that valley is crossed, and the magnificent domed peak of Popocatepetl
rounds itself up into a superb cone of lustrous ice. Down it glides on the
farther side into those brown rims on which we first gazed, and thus sails
around the circle of this view. These snow peaks are thus a not extrava
gant part of the landscape. They do not stretch suddenly and extraordi
narily above their fellows. They are primi inter pares. A fall of rain
here at this season will make all this high ridge snow. It was so last
week, but the snow was gone ere noon, except from the two head centres.
The king and queen reign perpetually."
The Valley of Mexico to-day presents to us six lakes — Texcoco , Chalco,
San Christobal, Xaltocan, Zumpango and Xochimilco, " the field of
flowers." The depths and areas of these will be found on the maps and
in the pamphlets I forward you by this mail. Taking Texcoco at an alti
tude represented by X, then we have the following elevations : Mexico
city, i. .., the Grand Plaza, = X -f 6.35 ft. ; Xochimilco = X + 10.20
ft.; Chalco = X + 10.20 ft.; San Christobal = X -f 11.80 ft.; and Zum
pango = X + 19.80 ft. The lake Xaltocan only exists during the wet
months. It is a plain at other times. On the southern lakes you will see
that " floating gardens" exist over large areas. The superficial extent of
Texcoco is about fourteen square leagues , that of Chalco and Xochimilco
is ten square leagues ; than of San Christobal and Xaltocan is seven square

"5
leagues ; and that of Zumpango is two square leagues, making a total of
thirty-three square leagues.
In speaking of Zumpango, Gilbert Haven says :
" This place lies at the head of the lake system which imperils Mexico.
Three lakes flow down upon that capital. The remotest one is that of
Zumpango. It lies at the base of a range of mountains, and stretches
along the rear of the town for several miles. Its hillsides, opposite the
town, look as if it would be a delightful winter resort for Northern peo
ple. It is over twenty feet higher than Mexico, and about thirty miles
distant. To preserve it from inundating the city, a huge dyke or wall,
ten feet high, is built along its southern side. This dyke is repeated more
elaborately at the next lake, San Christoval ; and so the last lake, on
whose edge the city sits, rarely rises above its proper level. Millions of
dollars have been expended on these works, and they are yet unfinished.
They need a drainage from the lowest lake into some river flowing down
to the gulf. This is projected and will be accomplished, ' manana.' "
Mr. Ferguson (see Ferguson's Anecdotical Guide to Mexico, printed by
Claxton, Remson & Haffelfinger, 624 Market street, Philadelphia), says :
/'Mexico has' been covered with water seven times — 1446, 1553,
1580, 1604, 1607, 1617, 1620; and five times partly covered — 1629,
1630, 1748, 1819, 1865. The Spaniards began the drainage December
28th, 1607, by making a tunnel. This caved in during 1620, and the
water covered Mexico city seven feet deep."
Mr. Ferguson gives two or more pages on the drainage questions (see
page 38 of his book), and other data of interest, particularly the details
relating to the national debt of Mexico. So far as I can learn, the cities
of Mexico have no debts, and the city of Mexico has upwards of one hun
dred thousand dollars in her treasury. Mr. Ferguson says that the
Huehuetoca cut is 7,399 ft. above the sea, while Lake Texcoco is 7,340
ft. If this is true it is very important for us. He also states that the
Valley of Mexico is 45x31 miles, and contains 700,000 inhabitants. That
the Federal District contains 315,996 inhabitants, and contains property
valued at #51,650,474. That Mexico city contains 180,000 inhabitants
(Garcia Cubas says 260,000), and has a revenue of #860,000, and an
annual expense of #854,000. The temperature in the capital, at noon,
ranges from 700 to 500 Fahrenheit. The barometer stands at 22 inches,
and water boils at 190°. The length of time between sunrise and sunset
ranges from 13 hours and 10 minutes to 10 hours and 50 minutes.
The above selected quotations and statements will give you a glance at
Mexico, at its valleys, its lakes, and its mountains, as seen by others, and
which generally accofd with my own observations. Future experience
and study may make it necessary to correct some particulars.
Respectfully, A. K. Owen, C. E.

n6
The following letters contain the information that induced me to take
an interest in this enterprise. There are one hundred interests. They
are owned by the above-named officers. If we can get the contract
" our fortune is made;" if we do not, our money is lost. Each inter
est costs between I am willing to sell three of mine at
#300 each. In case any more money is needed, as there can be no as
sessments, there must be voluntary payments, so much each share, or the
stock must be increased from one hundred to one hundred and ten, or
more shares and the excess above one hundred sold. Of course the pref
erence is given to the holders of the one hundred interests now existing.
October 22, 1879. E. M. Davis.
These papers are not for circulation among any but owners. They
may be loaned cautiously to those who think of becoming interested.
1 E. M. D.

No. 4102 Spruce street, Philadelphia,
October 17th, 1879.
Edward M. Davis, Esq.,
Dear Sir :
In July last, Mr. A. K. Owen submitted to me various maps, plans and
statements, which he had brought with him from Mexico, for the drainage
of the valley of Mexico.
I devoted much time to determine the practicability of this enterprise,
noting very carefully in connection the detailed and accurate information
published by Baron Humboldt in his history of " New Spain."
From the earliest history of Mexico, extensive dykes were built to pre
serve the city from inundation, which, after the Spanish Conquest, were
still continued at large expense.
Very comprehensive, plans for thorough drainage were commenced in
1607. In eleven months fifteen thousand Indians built a tunnel about
fourteen feet wide, twelve feet high, and more than four miles in length,
beside an open cut one hundred and fifty feet deep, and over six miles
long. This gallery proved an insufficient water way, for from 1629 to
1634, the streets of Mexico, like Venice, were navigated by boats.
Warned by repeated overflows, costly efforts were spasmodically made
during the next one hundred and fifty years to secure the safety of the
city. Had any one of these plans been persistently jpushed with energy,
the work would have been successfully accomplished ; but vacillation and
a policy of temporary expediency always prevailed.
Suffice that up to 1767, a cut of three hundred feet across at the top

ii7
width, averaging one hundred and fifty feet deep for many miles, had
been so far completed, as to carry off a stream of water ten or eleven feet
wide. Since then, although large expenditures at times have been fruit
lessly made, little has been accomplished to improve this, outlet, which
substantially remains as it was left a hundred years ago.
To widen and deepen this cut so as to make a thorough drainage of the
valley, is perfectly simple and practical. It is only a question of cost, and
that not large considering its importance to the safety of the City, involv
ing the removal of some ten or more millions of cubic yards of excava
tion. With a large surplus of cheap labor, and with modern devices of
machinery for doing such work which did not exist in the past century.
there are no serious obstacles which may not be readily overcome.
The completion of this work will add largely to the wealth, by the re
covery of a vast body of rich overflowed lands now surrounding the City
in all directions.
The canal, twenty-nine miles long, to vent this water, will afford cheap
transportation for the trade of the Northern Provinces, now conveyed from
Huehuetoca by pack mules, over roads which are almost impassable for a
large part of the year. Sixty thousand of these animals were stated by Hum
boldt to be employed in this trade when he was there early in this century.
Besides this, good drainage becomes more and more imperative with
the growth of this beautiful and substantially built Capital of the Repub
lic, which has a climate distinguished for its evenness and salubrity.
The construction of this work is mainly dependent upon the ways of
payment, and to that end the expediency of issuing full legal tender Treas
ury Money and small bonds in payment for labor and material, wisely
guarding, restricting and limiting its issue to the economical cost of the
work, has been submitted by Mr. Owen to President Diaz. The President;
after carefully considering this subject, has given assurances that he will
support a bill properly prepared for this purpose, which it is expected will
pass Congress at the present session, and become a law.
The gentlemen who have constituted themseves a " Commission" have
sent Mr. Owen on the 4th inst. back to Mexico, with a bill prepared to
meet the wishes of President Diaz, under whose favorable auspices they
expect to be legally authorized to conduct the work. As a consideration
for suggesting and systematizing the ways of payment and supervising the
construction of the work, the Commission expect to secure a liberal per
centage on its cost.
Should the work not be secured, the loss will be the expenditure in
curred in sending the engineer to Mexico several times, and outlay con
nected therewith, which has been provided. Mr. Owen, confident of being

u8
able to accomplish the object from assurances of the President, volun
teered to go, receiving nothing for his service, but simply necessary
expenses, and stock in the Association. The profits on the contract, if
secured, will be large ; if not, the money will be lost. In view of this
risk, I have subscribed to the undertaking.
Very truly yours, . Charles M. DuPuy.

Steamer " City of Alexandria," off Cuba.
9:30 A. M., Thursday, Oct. 9th, 1879.
My Dear Mr. Davis,
I have written you an outline, short, to the point, and I hope it may
answer the purpose. If you will send to 624 Market Street, and get
"Furgeson's Anecdotical Guide to Mexico" you will find such statements
there made upon the "Desague" and upon the population and financial
condition of the Valley of Mexico, as may greatly aid you in coming to
a correct conclusion. The income of the City averages about #860,000
per annum, and the expenses about #854,000. I believe it is the only
metropolis in America which is out of debt ; and when I was there last,
there were #75,000 in cash in the treasury of the City. The Federal
District is taxed #600,000 annually for the purposes bf the " Desague."
If you wish to see Mexico and the importance of "Desague " in detail,
see Humboldt's "Essay on the Kingdom of New Spain." Vol. II.
Valley of Mexico, see pages 5 to 11, and 22 to 33. "Desague," see pages
80 to 138. '  A. K. Owen.
Steamer *' City of Alexandria."
Monday, October bfh, 1879.
Edward M. Davis, Esq.,
Dear Sir :
In April last, while in Mexico City, on business connected with the
Topolobampo Pacific Railroad, I was sent for by Miguel Hidalgo y Teran,
one of the leading lawyers and capitalists of that Capital; and who is
also a member of the Chamber of Deputies, and was private secretary to
Maximilian, and asked to give my attention to the "Desague," or the
drainage of the Valley of Mexico. It was out of my direct line of busi
ness, and as I already had an important project on hand, I declined ;
but being further pressed, I made a visit to Lake Zumpango, examined
the tunnel of Acatlan, as left by Maximilian, and after reaching the
United States, wrote a letter to Mr. Teran upon the subject, and in doing
so became interested in it ; so much so, that upon the advice of Minister
Zamacona, now in Washington as Minister for Mexico, I returned to
Mexico to give special attention to the f^cts in the case.

n9
The letter I had written to Mr. Teran was translated by Minister Zam-
acona and sent to President Diaz. I arrived again in that capital on the
night of .May 30th, and was received by President Diaz at 4 P. M., next
day, and sat with him in conversation for an hour and a half. I need
only say here, that toward the close of the interview the President asked
me to give my entire attention to the drainage of the Valley of Mexico.
He tsaid it was the most popular public work to be done in his country,
because for the want of it, the entire properties in the capital and valley,
were subject to overflows and to destruction— that he approved of my
ways and means of payment, which I had suggested for railroad construc
tion, and if I and my friends would become contractors for the Govern
ment, and would make detailed plans for a permanent source of drainage,
he would lay the same before his Cabinet, and after they and we agreed
he would send the same to Congress with a special message urging that it
be adopted. To show the President's earnest wish to facilitate me, on
this occasion, to examine the subject, it is only necessary for me to add
that he gave orders for an escort and engineers to accompany me to all
sections of the valley, and for all plans and data in the Department to be
subject to my examination.
On this visit I remained seventeen days in the valley, visited the lakes,
dikes, canals and the great cut of Huehuetoca, examined maps, reports, etc.
and regained Chester, Pa., on the last day of June, bringing maps, reports,
specimens of material to be removed, and notes taken upon the ground.
July, August and September, the last two months assisted by Charles
M. DuPuy, I worked to perfect plans, bills, and an organization, and
sailed October 4th, for Vera Cruz, feeling satisfied that all that was asked
of me by Mr. Teran and the President had been fulfilled.
As you know, I spent this evening a week ago with Minister Zama-
cona, at Orange, New Jersey, and made him acquainled with bills, plans,
and organizations. That he approved of the same is to'be seen in the
fact that he wrote to Messrs. Alexandre & Sons to give me the privilege
of a Mexican envoy, and that himself and son came to the steamer on
Saturday to wish me a God speed and success with his people*
The Valley of Mexico is from seven thousand five hundred to eight
thousand feet above the sea, and is about forty-eight by thirty- three miles
in area. The lakes are six in number, and cover about one-tenth of
its area. Lake Texcoco covers about ninety-nine square miles, is the
lowest basin,'and, having no outlet, is salt. Lakes Chalco and Xochi
milco to the southwest are spring lakes, ten feet higher than Texcoco,
and drain into it through the Viga Canal. San Cristobal and Xaltocan
are 11.8 feet above Texcoco, and Zampango is 19.8 feet. These lakes are

3900208576 W«__
to the northeast, ani their waters are brackish, owing to the fact that they
are kept from flowing into Texcoco by artificial dikes, mile by the Span
iards. The Grant Piaza is the highest ground in Mexico City, and is
but 6.35 feet above Lake Texcoco. The sewers, which at best are but
two by two feet, and directly under' the street flagging, have a nominal
outlet into a canal, which, at a distance of two and a half miles, finds its
way into Texcoco. Practically there is no drainage in Mexico City, and
during the rainy season (June, July and August) the water remains in the
streets until it is soaked up by evaporation ani filtration. These circum
stances make it imperative either to effect a. permanent drainage of Lake
Texcoco or to vacate the city.
Our plan is simply to cut a'canal from the centre of Lake Texcoco
until we strike grate in the great cut of Huehuetoca, and in this way to
give the said waters a permanent outlet into the Tula River and Gulf of
Mexico. The length of the canal will be twenty-nine miles. It will
begin ten feet below the water surface of Texcoco, have a width at bot
tom of thirty feet, a fall of six inches per mile, and slopes at sides of not
less than one-half to one, or sixty-three and a half degrees. There are
about sixty-six and a half thousand million gallons of water in Lake Tex
coco, and we calculate to drain it in five months after this canal is opened.
The material to be removed is mostly "tepetate," or volcanic ashes, and
will amount to about ten million cubic yards. Approximating one cubic
yard per person employed per day, then thirty-two thousand men in three
hundred and thirteen days would complete the work.
The canal when completed will be used for commercial purposes, as it
is on the line of the great route from the capital to the populous centres
of the north. The road running along it will be a toll road, the lands
drained by it will be assessed, the sewerage privileges will be taken out by
every property in Mexico City and the Valley. The population of the
Valley is seven hundred thousand. The value of the property in the Fed
eral District is $5 2,000,000. These sources of revenue, which are brought
into being by the cutting of sail canal, will absorb the money issued to
complete it within ten years, and thereafter it will become a source of per
manent revenue to the Government, and relieve the people from direet
taxation to that amount, i. .., to the gross receipts less the cost of main
tenance, etc. It is these facts, Mr. Davis, which go to make our mission
to Mexico one of importance. Respectfully, A. K. Owen, C. E.
N. B — Maps, drawings, profiles, calculations, etc., can be seen at the
office in Philadelphia. We ask special attention to Appendix N o. 3, and
the maps referring to the manufacture of salt.