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and especially to the said Thomas H. Bayly, in his official character of chairman of the Committee of Ways and Means; and whereas the said proposition was, that an arrangement should be made either to pay the said indemnity, in advance of its falling due, directly to the Mexican government, in the same manner as the payments under the late treaty were made to General Almonte, the Mexican minister; or that drafts of the Mexican government for the amount payable, when due, should be accepted by the United States government, so as to render the same negotiable—the United States government in either case taking a full receipt and acquittance direct from the Mexican government. Nevertheless, the said Bayly endeavored to deceive the House of Representatives, by misrepresenting the nature of the said proposition submitted as aforesaid on behalf of the Mexican government, and by endeavoring to produce an impression that said proposition contemplated that Duff Green was to be employed as the agent and banker of the United States in making said payments, when said Bayly well knew that no such agency was ever contemplated by the said proposed arrangement.

Specification 2Falsehood.

In this, that said Bayly stated to the House of Representatives, and endeavored to produce the impression, that said Benjamin E. Green, when acting as chargé d'affaires of the United States in Mexico, had received and failed to account for the fourth and fifth instalments of the indemnity due by Mexico lo citizens of the United States, under the convention of 1843, when said Bayly well knew that his said statement was utterly false. And when afterwards called upon by another member of the House to withdraw said false charge, he (Bayly) said: "I did not so charge, as the report of my speech will show, for this whole matter was involved in doubt,” (see Cong. Globe, Ist session 32d Congress, page 359,) when said Bayly well knew that said matter was not involved in any doubt, because the circumstances of those alleged payments had been investigated by Mr. Slidell, United States minister to Mexico, whose report fully exonerated said Ben. E. Green from all responsibility in the premises; and said Bayly had fully examined, not only Mr. Slidell's said report, as published in the congressional records, (see Ex. Doc. No. 133, 1st session 29th Congress,) but, as he himself stated, had also examined the orginal documents on file in the State Department, and therefore must have known that his said original charge, and the assertion with which he accompanied his subsequent denial of having made said charge, were alike false and calumnious.

Specification 3Wilful fulsehood.

In this, that after quoting from the civil and diplomatic bill of 3d March, 1845, the following clause, to wit:

“For paying the April and July instalments of the Mexican indemnities due in 1844, the sum of $275,000: Provided, It shall be ascertained to the satisfaction of the American government that said instalments have been paid by the Mexican government to the agent appointed by the United States to receive the same, in such manner as to discharge

all claims on the Mexican government, and said agent to be a delinquent in remitting the money to the United States."

The said Bayly, to give color to his said false accusation of said Ben. E. Green, and thereby to secure the passage of said bills in the form desired by said Corcoran, said as follows:

“After the passage of the law to which I have referred, Mr. Polk, through Mr. Slidell and our consul in Mexico, Mr. Black, instituted an inquiry in Mexico to ascertain, if possible, whether the contingency provided for had happened. He became satisfied it had, and the money was paid.(Cong. Globe, 1st session 32d Congress, p. 340.) Whereas said Bayly well knew that no part of the money was ever paid under the act quoted by him, and that Mr. Polk ascertained, by the said inquiries of Messrs. Slidell and Black, that the said contingency had not happened, and therefore refused to make any payments under the act quoted by said Bayly; and that the claimants, because of Mr. Polk's said refusal to pay under the said act, applied at the next session of Congress, and procured the insertion of the following clause in the civil and diplomatic bill of August 10, 1846, to wit:

“For paying the principal and interest of the fourth and fifth instalments of the Mexican indemnities, due in the year 1844, the sum of $320,000: Provided, The claimants, each for himself, shall relinquish to the United States his right to said instalments : Provided, further, That each of the claimants shall agree to take in payment the scrip of a stock bearing interest at five per cent., payable in five years." Respectfully submitted.

BEN. E. GREEN. Hon. John LETCHER, Chairman of the Committee of Inquiry appointed under

House resolution of July 8, 1854.

P.S. 1 submit herewith copy of a report from the Comptroller, which fully proves the charge of falsehood as set forth in specification 3d. Most of the other proofs which I wish to submit are of record, and easily procured. But the witnesses whom it will be necessary to call are intimate friends of said Bayly, and will be very reluctant to state any facts to his prejudice. Nevertheless, fully aware of the disadvantages of my position, I confidently believe that, if your committee will give me a fair chance, I can prove all and more than I have charged.

BEN. E. GREEN.

WEDNESDAY, JULY 26, 1854.

B. E. Green, being duly sworn, testified as follows:

As to charge 2d.

Question by committee. Have you personal knowledge of any facts to sustain charge 2d ?

Answer. I have personal knowledge of many facts to sustain charge 2d.

Question by committee. What are the facts to sustain the charge of “wilful misrepresentation,” contained in charge second ?

Answer. I have personal knowledge of many of the facts tending to prove the allegation of wilful misrepresentation. I was employed in 1850, by Mr. I. D. Marks and others associated with him in Mexico. as an attorney, lo aid and act in concert with the Mexican minister, lo effect an arrangement whereby the Mexican government might be enabled to anticipate the payment of the third and fourth instalments of the indemnity due by the treaty of Guadalupe Hidalgo, either by the payment of the money in advance by the government of the United States direct to the Mexican minister here in Washington, in the same manner in which the payment under the late Mexican treaty was made through General Almonte, or by obtaining an acceptance, by the United States government, of drafts drawn by the Mexican government, parable in the United States at the pleasure of the United States government. The object of this proposed arrangement was two-fold: first, to relieve the Mexican government from the necessity of paying interest at the rate of eighteen to twenty-four per cent. per annum for advances to the bankers employed by the United States to make the payments; secondly, to give to the Mexican government the benefit of the large premium of exchange-to wit, twelve to fifteen per cent.—on drafts upon New York. As an inducement to the United States to asseut to this arrangement, I was authorized 10 offer, as a premium of exchange for prompt payment here, or acceptance of the drafts, one per cent. more than any banker should offer for the contract to pay the money in Mexico. When this matter first begun, I was absent on government service abroad. On my return to the United States, and shortly after the change in the government, resulting from General Taylor's death, I addressed to the Hon. Daniel Webster the following communication, to wit :

WASHINGTON, August 1, 1850. SIK: My friend, Mr. I. D. Marks, wrote to me from Mexico last winter, saying that, wanting funds, the Mexican government wished to negotiate drafts on the government of the United States for the two remaining instalments under the treaty of Guadalupe Hidalgo, and asked my aid to obtain an acceptance so as to make the drafis negotiable. My father, who in my absence received his letter, applied to the lale administration, and it was understood that the drafts would be accepted, payable at the pleasure of the government, when an appropriation was made by Congress, and that as four-and-a-half per cent. would be allowed to ihe United States for accepting, and the payment in advance would save some ten per cent. more, the Secretary of the Treasury would, during the present session, ask an appropriation to enable this

government to make the payment now, and thus save to the United States near, or quite, one million of dollars.

With this understanding, Mr. Marks has closed a contract with the Mexican government; and I have just received a letter from him saying, that as soon as he can be advised that the death of General Taylor and the change in the cabinet has interposed no obstacle to the negotia

tion, he will come to Washington and bring the drafts of the Mexican government.

Will you do me the favor to say whether you are willing that the present administration should carry into effect the understanding beiween your predecessors and Mr. Marks ? And oblige your obedient servant, Very respectfully,

BEN. E. GREEN. Hon. DANIEL WEBSTER,

Secretary of State.
Mr. Webster's reply was as follows:

WASHINGTON, September 2, 1850. SIR: I have received your letter of the 31st ultimo, stating that your friend, Mr. I. D. Marks, had closed a contract with the Mexican government for the payment of the instalments due by the United States to that government, pursuant to the treaty of Guadalupe Hidalgo; and inquiring whether I was willing that the present administration should carry into effect the understanding upon the subject between my predecessors and that gentleman.

In reply, I have to inform you, that I have found no papers or evidence in this department showing any such understanding with Mr. Marks or any other person. A few weeks ago a definite arrangement on this subject was made with Messrs. Baring Bros. & Co., Howland & Aspin all, and Corcoran & Riggs, the eminent bankers who have heretofore been employed in reference to the instalments paid to that government, during the administrations of Presidents Polk and Taylor. I am, sir, very respectfully, your obedient servant,

DANIEL WEBSTER. BENJAMIN E. GREEN, Esq.,

Washinglon.

I had previously written to Mr. Marks, announcing the death of General Taylor, but expressing a confidence that, as the arrangement proposed was mutually beneficial to both governments, there would be no objection to its consummation on the part of the new administration; and supposing that the Mexican government would, as it did, act at once on the receipt of that information, I was in daily expectation of the arrival of a messenger with the drafts. Conceiving that the contract mentioned by Mr. Webster, however binding on him, was not binding on Congress, I thought it my duty to apply to Congress, and obtain, if possible, an amendment to the appropriation bill, directing that the nioney should be paid in the manner desired by the Mexican government. I therefore, as attorney for Mr. Marks, drew up and submitted a memorial to the Senate and House of Representatives, explaining the nature of the proposition submitted on behalf of the Mexican government, a copy whereof is hereto annexed, marked A.

This was the proposition which was submitted by my father and myself, on behalf of the Mexican government, to enable that government to carry into effect a contract made with Mr. Marks, and other important measures dependent thereon; and this was the sum of the

petitions which we addressed to Congress, not in our own names or in our own behalf, but as attorneys of Mr. Marks and on behalf of the Mexican government.

The foregoing correspondence between myself and Mr. Webster, and the memorial of Mr. Marks above offered in evidence, were read in the Senate, and printed in the Senate proceedings in Appendix to Congressional Globe, 1st session 31st Congress, pages 1373 and 1376; and this memorial and several others, all to the same effect, and containing the saine and no other proposition, were submitted by me to Mr. Bayly, as Chairman of the Committee of Ways and Means. To show the previous understanding with the late American cabinet—on the strength of which the Mexican government had entered into the arrangement with Mr. Marks, and the grounds on which I asked that the wishes of Mexico, as to the mode of payment, should be regarded and gratified—we requested Mr. Bullard of Louisiana, Mr. Marks's representative, to call upon Mr. Clayton, the late Secretary of State, for a statement of the antecedents. A copy of Mr. Clayton's reply was furnished to Mr. Bayly, as chairman of the Committee of Ways and Means, and the original is here offered in evidence:

NEWCASTLE, DEL., December 16, 1850. Sir: I have this moment received your letter of the 14th instant, and, in reply to it, I have the honor to inform you, that some time in the latter part of last winter or early in the spring, General Duff Green informed me that Mr. Marks could effect an arrangement with the Mexican government for the payment of the two last instalments of the Mexican indemnity under the treaty of Guadalupe Hidalgo, reserving to the United States a premium of 41 per cent.—ihe money to be paid on drafts by the Mexican government on our treasury. I had previously endeavored to negotiate with the Mexican minister at Washington for the payment of the second instalment (for which an appropriation had been made by Congress) upon this basis; my object being to take the matter out of the hands of speculators by paying the money directly to the government of Mexico. An offer, through Mr. Rosa, to the Mexican government to pay that instalment, deducting the export duty (54 per cent.) on specie in Mexico, was declined by that government. When the second instalment had been paid or arranged, Mr. Marks's proposition was made verbally to me by General Green, and as it offered a good premium and secured the indemnity from speculators, I thought well of it, but made no contract whatever on the subject; yet I forthwith told General Green that if the President approved it I would apply to Congress for the necessary appropriation to enable us to pay the money for the third and fourth instalments directly to the Mexican government, without the intervention of speculators or brokers; thus saving the premium of 41 per cent., and the interest to accrue to us, and protecting Mexico against the enormous discount 10 which it was said she had been and would be again subjected.

But when I mentioned the subject to General Taylor, he declined to bind himself by any agreement before Congress should make the appropriations for the instalments. Of this I informed General Green,

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