General Joseph Lane's efforts to exterminate the roving bands of guerillos and rancheros involved great rapidity of movement, and he had officers and men under his command eminently fit for such service. One of the most pestiferous of the guerillo leaders was a Catholic priest called Padre Juarata. He seemed to be everywhere at once, and notwithstanding his party was frequently met by the Americans, sometimes surrounded and always beaten, yet the Padre adroitly managed to get out of every trap and escape. Being a priest, he was always ready and willing to administer the last rites of the Church to friend or foe.
While the army was at Puebla, General Scott organized a company of Mexicans under command of one Dominguez, which was regularly mustered into the service of the United States. A battalion of deserters from the American army, known as the San Patricio Battalion, composed almost wholly of Europeans, was organized under the command of one O'Riley. These two commands met in battle in the convent of Churubusco, and fought each other with great desperation. The Mexicans under Dominguez entered Churubusco with the American army, and met the execration of their countrymen, who denounced them as traitors. The American deserters (the San Patricio Battalion) were captured at Churubusco, tried by court-martial, and all but sixteen sentenced to death and executed. Some were pardoned, and O'Riley, their leader, was branded with the letter D on his cheek and released. This clemency was shown him because he deserted before hostilities commenced.
The number of American troops engaged at Churubusco on August 19th and 20th was four thousand five hundred. The entire force engaged at Churubusco was about seven thousand four hundred. General Scott's estimate of the Mexican force on August 20th, including Contreras, Churubusco, and the road between San Antonio and Churubusco, the Portales, and the road to the Capitol, was thirty-two thousand.
In these battles three thousand prisoners were captured, including eight general officers and two hundred and five other officers. The killed and wounded amounted to over four thousand. Thirty pieces of cannon were taken. The loss to the American army was one hundred and thirty-nine officers, including sixteen killed, and one thousand and fifty-three enlisted men; sixty officers and eight hundred and seventy-six men wounded.
Commodore William B. Shubrick having captured Mazatlan and Guaymas, General Scott wrote him, December 2, 1847: "I have been waiting here for two and a half months to learn the views of the Government at home, or at least for re-enforcements, before undertaking any new and distant operations. The forces I have under my orders in the whole of this republic, except the troops immediately under Major-General Taylor, only give me means of holding Tampico, Vera Cruz, Puebla, Chapultepec, and this capital."
General Scott had made a careful study of the statistics of Mexican finances, and previous to ordering the occupation of several important districts near the capital, to be followed by a like disposition in more remote departments, issued General Orders No. 376, December 15, 1847:
"(1) This army is about to spread itself over and to occupy the Republic of Mexico until the latter shall sue for peace on terms acceptable to the Government of the United States. (2) On the occupation of the principal point or points in any State the payment to the Federal Government of this republic of all taxes or dues of whatever manner or kind heretofore, say in 1844, payable or collected by that Government, is absolutely prohibited, as all such taxes, dues, etc., will be demanded of the proper civil authorities for the support of the army of occupation. (3) The State and Federal districts being already so occupied, as well as the States of Vera Cruz, Puebla, and Tamaulipas, the usual taxes or dues heretofore contributed by the same to the Federal Government will be considered as due and payable to this army from the beginning of the present month, and will early be demanded of the civil authorities of said States and districts under rules and penalties which shall be duly announced and enforced. (4) Other States of this republic, as the Californias, New Mexico, Chihuahua, Coahuila, New Leon, etc., already occupied by the forces of the United States, though not under the immediate orders of the general in chief, will conform to the prescriptions of this order, except in such State or States where a different system has been adopted with the sanction of the Government at Washington. (5) The internal taxes or dues referred to are: 1, District taxes; 2, Dues on the production of gold and silver; 3, Melting and assaying duties; 4, The tobacco rent; 5, Rent of stamped paper; 6, The rent on the manufacture of playing cards; and, 7, The rent of post offices. (6) The rent of national lotteries is abolished, lotteries being hereby prohibited. (7) Import and export duties at ports of the republic will remain as fixed by the Government of the United States, except that the exportation of gold and silver in bars or ingot—plata y oro en pasta—is prohibited until the further instructions of the Government on the subjects. (8) All imported articles, goods, or commodities which have once paid or given sufficient security for the payment of duties to the United States at any port of entry of the republic shall not again be burdened with any tax or duty in any port of this republic occupied by the forces of the United States. (9) The levying of duties on the transit of animals, goods, or commodities, whether of foreign or domestic growth, from one State of this republic to another, or on entering or leaving the gate of any city within the republic, will, from and after the beginning of the ensuing year, be prohibited, as far as the United States forces may have power to enforce the prohibition. Other and equitable means, to a moderate extent, must be resorted to by the several State and city authorities for the necessary support of their respective governments. (10) The tobacco, playing cards, and stamped paper rents will be placed for three, six, or twelve months under the contract with the highest bidders respectively, for the several States, the State and Federal district of Mexico being considered one. Accordingly, offers or bids for those rents within each State, or any of them, are invited. They will be sent in as early as possible, sealed, to the headquarters of departments, except for the Federal District and State of Mexico. For this latter the offers or bids will be addressed to the general in chief. (11) Further details for the execution of the foregoing system of government and revenue will soon be given in general orders."
General Scott forwarded the above order to Washington, together with a memoir of the precious metals, showing that he had carefully studied and had thorough knowledge of the subject. In his letter forwarding the order he said:
"The Government of the United States proposes that their forces shall occupy the Mexican Republic, and raise in said country the means to meet the expenses of occupation. To obtain this object, it appears convenient that said resources should be raised so as to interfere as little as possible with the existing interests of foreign as well as of native residents; for if any measure calculated to involve the ruin of a part or the whole of said interests was taken, there is little or no doubt that the results would be as injurious to the interest of the United States as to those of this country, for the destiny of both interests in the case of occupation is linked together. It appears that this recommendation, besides being fully justified by a sound policy, will also be the means of facilitating the organization of a financial system, and ultimately lead to increase of revenue.
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