army, not a squadron only. I have not a single soldier on board; and as soon as the castle of Ulloa came into my power, I sent back to France the greater part of my squadron, not retaining more than adequate to enforce the blockade. In a time when all nations aspire to be brethren, let not hatred reign between France and Mexico. The feelings which most honour a nation are those which tend to encourage kindness and benevolence, reminding us continually that we all belong to the great family of the human race. I hope, therefore, that the day is not far distant when the Mexican nation, enlightened as to its true friends, will grasp the hand which France, with true sincerity, extends. That such a hoped-for event may soon arrive, is the fervent prayer of the undersigned, who begs your Excellency to receive the assurances of his distinguished consideration.

"The Admiral commanding the Naval Forces of France in "the Gulf of Mexico,

"CHARLES BAUDIN."

It will be seen that at the time Admiral Baudin wrote this disgraceful letter, he entertained a very strong personal animosity towards the Mexican government. Having failed in his object with Urrea, he carried his animosity with him to Texas, where he arrived on the 13th of May. Being received by the Texan ships at Calveston Island with a salute of twenty-two guns, which, with an address of welcome, accompanied with the freedom of the city, added to Admiral Baudin's personal hostility to the Mexican government, he, assisted by M. de Saligny, secretary of the French legation at Washington, drew up a very flourishing account of Texas, which was forwarded to France with all

haste, and which led to the recognition of Texas by France in the ensuing September.

How Holland and Belgium happened to hear of such a place as Texas, even Mr. Kennedy has not informed us; and as I am quite at a loss how to account for the mysterious event, I shall leave the subject for Mr. Kennedy's third volume on Texas.

The gross injustice of the recognition of the independence of Texas by England, at first appears as if exhibited in the recognition of the de facto sovereignty of a few citizens of the United States to the territory of Texas, a large portion of which was pledged by the Mexican nation to British subjects for 10,000,0007., which was absolutely paid by them into the coffers of Mexico. This arrangement was first mooted in 1835, one year before the Texans had declared themselves absolutely independent of Mexico.* And this was finally confirmed by decree of the Mexican congress, dated April 12, 1837, one month before the independence of Texas had been recognized by any foreign power; and while negotiations were positively going on between the Texans and the United States for the annexation of that very territory of Texas to a foreign power, namely, the United States. And in order to show that Mexico has virtually no power to recognize the independence of Texas, and that

*This should be particularly noted, as it will soon be seen that the Texan envoy has publicly denied the fact.

therefore an endless war, which must be most injurious to British interests, is inevitable, I will here introduce the decree of the Mexican congress concerning the debt due to British subjects.

66 THE PRESIDENT, AD INTERIM, OF THE REPUBLIC OF MEXICO

TO THE INHABITANTS THEREOF.

"Know ye, that under the authority to me granted by the law of the 4th of this present month, I have seen fit, with the concurrence of the council of government, to decree as follows:

"ART. 1. There shall be created a national consolidated fund, with interest at the rate of 5 per cent. per annum, with the sole and determinate object of converting thereinto the entire foreign debt, if it shall appear to the present creditors advantageous so to do, and to fund it in the manner set forth in the following articles; to which effect Messrs. F. de Lizardi and Co., of the city of London, are hereby named and appointed the agents of the republic for said operation; and they shall, in the name of the Mexican nation, emit the corresponding bonds of the said national consolidated fund, in pounds sterling, payable in London, on the 1st of October, 1866, with interest coupons in the margin for each half year until said date. These bonds shall moreover be countersigned by the minister plenipotentiary of the republic in London, or by his representative.

"2. The holders of the bonds now in circulation of the foreign debt, proceeding from the two loans effected in London, at 5 and 6 per cent. interest, shall have the power to convert the same bonds, as well the coupons thereof not paid and due, into the bonds of the new consolidated fund, under the following conditions:-1st. The bonds bearing 5 per cent. interest shall be received at par. 2nd. Those bearing 6 per cent. interest shall be received at the rate of 112 for 100. 3rd. Coupons for interest due on both loans shall be taken at par. 4th. For the bonds offered for conversion there shall be given in payment one-half of the amount in the bonds of the consolidated fund, bearing 5

per cent. interest, and the other half in land warrants on the vacant lands in the departments of Texas, Chihuahua, New Mexico, Sonora, and California, at the rate of four acres for each pound sterling; and these land warrants shall in like manner bear 5 per cent. interest up to the day on which the holders are put in possession of the lands, and on so doing the accruing interest shall be credited, and the quantity of lands thereby acquired augmented in proportion; always, however, under the conditions that they shall present themselves to take possession in the manner expressed in article 5 of this decree.

"3. Interest on the national consolidated fund shall be payable in London half-yearly, on the 1st of April, and 1st of October of each year, commencing from the 1st of October of the present year of 1837. Until proper measures can be taken for the periodical transmission of the funds for this purpose, the holders of coupons which may become due shall have the right to present them to the agents of the republic in London on the day on which they become due, and to demand of them a certificate, also countersigned by the Mexican minister at the said court, and said certificate shall be received as cash in payment of duties to the extent of one-sixth part, for all duties accruing at the maritime custom-houses of Vera Cruz or Santa Anna de Tamaulipas. The agents of the republic in London shall be bound to issue such certificate when thereto required by the holders of coupons, which may not have been paid when due. Each pound sterling of the amount of said coupons shall be estimated at the rate of five dollars, and the amount of each certificate shall be augmented to the extent of 6 per cent. in full compensation for all difference of exchange, and all expenses 1 per cent., of which those interested shall pay on receiving the certificate to said agents, who shall account for one-fourth part thereof to the Mexican minister plenipotentiary.

"4. The land warrants shall in like manner be issued in the name of the Mexican nation, and shall be countersigned by the Mexican minister in London. They shall be as follows :— 'Know all to whom these presents shall come, that the Mexican

nation grants to (here insert the name), or to his representative, the right of property in (here insert the number) acres of land in the department (here insert the department), of which full and complete possession will be given by the competent authority, assisted by the public surveyor, on the presentation of the present document.

"Done in London this (here insert the date).'

"No warrants shall be issued for less than 400 acres, nor for more than 10,000. Those interested shall pay to the agents on receiving their warrants at the rate of twelve reals for each 100 acres, of which three reals to the minister for his signature.

"5. The right of property in the land warrants may be transferred from one person to another by endorsement; but after the lands to which the warrant gives right are taken possession of, and a title granted, such lands can thereafter only be transferred by public act of sale in legal form.

"6. The land warrants, when to be located on lands, must be presented to the government office of the corresponding department, there to be recorded, as they are presented, in a book to be kept for that purpose, that preference may be given in the location according to the order of presentation, for which purpose there shall be delivered a certificate setting forth the number and location thereof; on presentation of which document to the local authorities, they, with the assistance of the public surveyor of the department, shall give possession of the land chosen, taking care to observe the condition of the 11th article of the law of the 6th of April, 1830, which says-'In virtue of the power which congress reserves to itself in the 7th article of the law of the 18th of August, 1824, it is prohibited to foreigners to settle on lands adjoining or bounding on those states or territories belonging to the country of which they are citizens.'

"In consequence whereof all contracts in contravention of this law must be suspended.

"7. For further security in the payment of the principal and interest of the national consolidated fund, the Mexican government

M