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who afterwards held some conversation with the President himself, of which I know nothing.

You will observe, then, that I made no agreement about the mat-ter, and had no authority to make any. But I have no doubt, that in consequence of the communication I made verbally to General Green, Mr. Marks was encouraged to urge the Mexican government to enter into the arrangement he had proposed. Had he succeeded in obtaining it while I was at the head of the State Department, I should have urged the President to ask the requisite appropriations from Congress to carry it into effect.

Mr. Webster was not informed of this proposition by me, as we happened not to have conversed on the subject; at least I have no recollection of having spoken about it to him. Indeed, while I remained at Washington, I did not learn that Mr. Marks had succeeded in any negotiation with Mexico about the matter. I recollect that Mr. Letcher, at the close of my service in the department, wrote that he could negotiate with the Mexican government on the subject.

While I was in the department I declined all negotiation with brokers in regard to this indemnity, not considering that my duty; but I did negotiate with the Mexican government on the subject of part of the second instalment through the minister. One objection which I communicated to General Green, as the friend of Mr. Marks, to any contract with Marks, was, that it was not my province to negotiate with any one but a minister on the subject, and that if I did attempt it I might embarrass Mr. Letcher. I think I told him to say to Mr. Marks, that if he went to Mexico, and assisted, or acted in concert with Mr. Letcher, so as to obtain the terms he had proposed, I would not hesitate to advise the President to ask of Congress the appropriation necessary to perfect such an arrangement. I should not have hesitated. In haste, respectfully, your obedient servant,

JOHN M. CLAYTON. Hon. H. A. BULLARD.

I certify that the above letter is a true and correct copy of the original.

C. W. CARRIGAN, Clerk. A copy of this letter, also, I furnished to Mr. Bayly, for the express purpose of showing to him that neither to Mr. Clayton originally nor at any time had my father made any proposition on his own behalf ; that he had always acted, and that all his propositions had been, on behalf of the Mexican government, or as the friend and attorney of Mr. Marks, with whom the Mexican government had made a contract which it was very desirous of carrying into effect; and that from first to last it was contemplated that payment would be made by the United States directly to, and receipts taken directly from, the Mexican government, acting through its duly-authorized agent; that neither I nor my father was to have anything to do with the payment; and that he, Bayly, was in error in representing the contrary to the House. Besides the communications above mentioned, made to him in his official character as chairman of the Committee of Ways and Means, I also called at his house to explain this matter to him verbally. No propo

sition was ever made by my father, on his own behalf, or on behalf of himself and others, to contract with the United States for the payment of one dollar in Mexico; yet Mr. Bayly, from first to last, though frequently informed that he was mistaken and in error in so doing, persisted in endeavoring to create an impression, by his remarks in the House of Representatives, that the aforesaid proposition, submitted by us on behalf of Mexico, was a proposition by Duff Green to contract with the government of the United States for the payment of these instalments. At the first session of the 31st Congress, he said, alluding to the proposition submitted by us on behalf of Mexico :

“ The proposition was by General Green, on behalf of himself and some persons in Mexico." (See Cong. Globe of that sess., p. 1853.)

And at the first session of the 32d Congress (see Cong. Globe, p. 215) he said, alluding to the same proposition :

" It was the proposition of Duff Green to pay three and a quarter millions of dollars, and in that proposition he offered to do it for onehalf per cent. less than anybody else. The Committee of Ways and Means did not believe that Duff Green was the man to pay three and a quarter millions of dollars in the State of Mexico.”

Mr. Bayly knew from the beginning that Duff Green had made no such proposition. Being interrogated by Mr. Boyd, of Kentucky, whether it was the wish of the Mexican government that the money should be paid in a different way, and whether that different mode of payment would not result in a profit to the United States of seventy to eighly thousand dollars, he commenced to state the case truly, so far as Duff Green's agency therein was concerned. He said:

“I am informed that there has been no proposition made to this government by any officially recognised agent of Mexico. There has been a proposition made to this government through a gentleman who represents himself as acting for the government of Mexico, but I am told he has no credentials. I do not want to refer to the individual; he is a gentleman for whom I entertain a good deal of personal respect. But I am authorized to say that there has been no official communication whatever. The Mexican minister has made none. There has been one made by a citizen of this country, professing to act on behalf of the Mexican government.”

Being pressed by Mr. Disney to say whether he, (Bayly,) had any information, official or unofficial, that the Mexican minister was authorized to receive and receipt for the money, he evaded that inquiry; and, in disregard of what he had stated but a few minutes before, he represented that the proposition submitted was one by Duff Green, “ on behalf of himself” and some persons in Mexico.

Mr. Bayly knew that the inoney would be paid through Messrs. Corcoran and others, if the amendment asked for in the memorial berewith offered in evidence should be defeated. He also knew, and stated to the House of Representatives, that Messrs. Corcoran and others allowed to the United States three and a half per cent. only as premium; and, as four and a half per cent. was offered by the proposition submitted on behalf of the Mexican government, he also knew that from $60,000 to $70,000, in the way of premium, besides a much larger amount in

interest would be saved to the United States by the acceptance of the latter proposition.

Question. Have you anything further to say, in reference to the testimony submitted by you as to the 1st specification in charge 2d ?

Answer. A portion of the remarks of Mr. Bayly were made in my hearing, and a portion I derive from the record. I have failed to make a distinction in the testimony. I wish to say that my knowledge of the remarks made by Mr. Bayly, as to the proposition made by Duff Green, quoted from Congressional Globe, 1st session 32d Congress, page 215, is derived from the record. These remarks were not within my personal knowledge, as I was not on the floor of the House at the time, being absent from the city.

Question by committee. Is the testimony you are about to offer derived from your own knowledge ?

Answer. No; it is from the record. I refer to Congressional Globe, second session thirty-first Congress, page 681. Mr. Bayly said: “But Mr. Marks and his associates have been memorializing Congress, and they have addressed themselves not only to this House, but also to the Committee of Ways and Means, insisting that we should carry out the arrangements they have made."

I refer to Congressional Globe, 1st session, thirty-second Congress, pages 377 and 378, a letter from the Mexican minister, Don Luis de la Rosa, to honorable Daniel Webster, of February 17, 1851:

Mr. de la Rosa to Mr. Webster.

[Translation.)

MEXICAN LEGATION,

Washington, February 17, 1851. The undersigned, envoy extraordinary and minister plenipotentiary of the republic of Mexico, has the honor of addressing himself to the honorable Secretary of State of the United States, for the purpose of informing him that it is with regret he finds himself compelled to occupy once more the attention of the said Secretary on the subject of certain drafts which have been remitted by the Mexican government upon that of the United States. This subject is connected with the contract of Mr. Marks with the government of the undersigned, for raising funds upon the mortgage of the indemnity which the United States are paying to Mexico.

The official communication which the undersigned has just received from the aforesaid Mr. Marks, in which he speaks of a claim for indemnification, which he believes himself entitled to present against Mexico, and the duty which devolves on the undersigned, to avoid the prevention of such claim, have reduced him to the necessity of treating once more with the Secretary of State on this disagreeable subject.

With this object in view, the undersigned thinks it proper to embody certain facts in this official note :

Before being made acquainted with the fact that the Secretary of State had made a contract for the payment of the funds of the indemnity, the Mexican government had, on its part, entered into another

contract with D. Isaac D. Marks, relative to the same payment, and had directed the undersigned to endeavor to procure from the government of the United States the acceptance of the drafts which had been remitted, for the payment of said indemnity, which payments were to take place at the various times stipulated to that effect in the treaty of peace.

The undersigned had begun to negotiate verbally with the Secretary of State for the acceptance of said drafts when he received a note from his government, in which he was told that in case the Secretary of State should already have been compromised in favor of any contract, not to offer any opposition on the part of this legation to any arrangement which the Secretary of State might have made—not at least in such a manner as to give any ground of offence by such oppositionbut to persist in the mode which he thought most prudent in asking for the acceptance of the drafts, as this would be very agreeable to the inkerests of Mexico. The undersigned then spoke again to the Secretary of State about the importance which his government placed upon the acceptance of the drafts, and endeavored to convince him of the fact that ihe interests of the United States would not suffer on account of this acceptance.

The undersigned remembers that in these interviews something was said—the connexion of things rendering such allusions indispensableabout the contract with Mr. Marks; but the undersigned did not persist in going very deeply into this matter, for he did not deem it necessary, at any time, to make known the object of the Mexican government for desiring the acceptance of the drafts.

While this was passing, the Secretary of State said to the undersigned, that he had reason to believe that this legation must have received certain communications from the Mexican government, of which the Department of State ought to have been informed. The undersigned merely remarked, that he had not received the communications alluded to, but that as soon as they reached him the Secretary of State should be made acquainted with their contents. On the following day he received from Messrs. Corcoran & Riggs a duplicate of the communications referred to. The undersigned gave to the Secretary of State a literal copy of the same. As these communications do not inform the undersigned that the government of Mexico had annulled the contract which it had made with Mr. Marks, nor direct him positively to desist from negotiating the acceptance of the drafts, he was compelled to believe, and he still believes, ihat although the government of Mexico thinks it a difficult matter for Marks to carry his contract into operation, it does not consider it as annulled, and is always disposed to fulfill the same, as far as practicable, in the same good faith with which it stipulated from the beginning.

The undersigned may have forgotten some of the circumstances which may have transpired during his interviews with the Secretary of State; he believes, however, that he has herein laid down all the most important facts that have occurred up to the day when the Senate of the United States received the information communicated through the Secretary of State.

The undersigned begs to enclose a copy of Mr. Mark's official com

munication. From it the Secretary of State will perceive that a very heavy claim may probably be brought against Mexico; and although, up to the present moment, said claim would be unfounded, yet it might assume the appearance of a just claim, if, by his silence on this occasion, the Mexican minister were to induce the belief that he had in any way opposed the sucessful issue of Mr. Mark's proceedings, before the Senate of the United States, with a view of carrying his contract into effect. It is not the province of the undersigned to pass any opinion upon Mr. Marks's pretensions; it behooves not him either to support or to oppose them before the Senate.

As it was Mr. Marks, and not the government of Mexico, who assumed the responsibility of procuring the acceptance of the drafts on the part of the government of the United States, and as the undersigned has moreover received, on this day, fresh instructions from his government, dated December 30th, in which he is directed not to press the acceptance of the drafts if, in his opinion, the abandonment of that object should be necessary in order to preserve the relations of friendship and good understanding which happily exist between Mexico and the United States, the undersigned desists entirely from pursuing said negotiations any further.

The undersigned avails himself of this opportunity to renew to the Secretary of State the assurances of his most distinguished consideration.

LUIS DE LA ROSA. Hon. DANIEL WEBSTER, &c., &c.

Letter of Mr. Marks to Mr. De la Rosa, of same date.

WASHINGTON, February 17, 1851. Most EXCELLENT SIR: I have had the honor to transmit to your excellency a copy of the reply of Mr. Webster to the resolution of inquiry of the Senate, calling upon the President for all the information communicated by your excellency in relation to the drafts drawn by the Mexican government on the treasury of the United States, under the contract made with me by that government, and the wishes of the Mexican government in relation thereto. Your excellency informed me by your note of the 30th ultimo, that you had had several conferences with Mr. Webster in relation to my contract, and referred the Senate of the United States to Mr. Webster for the information which you had communicated to him in relation to this subject.

Your excellency will see that Mr. Webster, in his reply to the resolution of inquiry, based on your said note to me of the 30th ultimo, has said that your excellency has made no communication to the Department of State on the subject of the said drafts or contract. I have, therefore, to request that your excellency will at once present the drafts for acceptance, and communicate to this government the wishes of your government in this matter, or that you will inform me of the substance of the conference which you have had with Mr. Webster in relation thereto.

I have again to inform your excellency that all that is necessary to obtain the acceptance of the drafts is, that your excellency will com

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