"The tariff given by the United States for the Mexican ports occupied allows the free exportation of gold and silver either in bars or coined. Although it has been done, perhaps, with a liberal view, it would seem that the measure was taken to hostilize the Mexican Government, preventing thus any advance from being made to said Government on future export duties on silver or gold, and depriving it of that resource. However, who would benefit by the free export of gold or silver? It is well known that nothing finds its level, respecting prices, as soon as the precious metals, and therefore as soon as the exportation should be carried into effect there would have been exchange on England, France, and the United States, a difference equivalent to the duties taken off on the precious metals. The free exportation would apparently have been advantageous to none but the miners; apparently is the word, for it is evident that the higher prices obtained by them at first would have gradually come down until they were on a level with those obtained in Europe, and ultimately would have become lower than they are to-day, for it is not to be doubted that the free exportation of bars partially or totally occasioning the ruin of the mints, coined specie would have disappeared from circulation, and that miners would have been for the sale of their product entirely at the mercy of the speculators, while, the exportation being prohibited, the mints are obliged to pay to them at any time a fixed price for their gold and silver which can not be altered.
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"The exportation of gold and silver in bars has been prohibited in this country by all the tariffs that have existed either under the Spanish or Mexican Government; and though licenses of exportation to a small amount have now and then been granted, the prohibition has been the rule and the exportation has been the exception, until the Mexican Government, having rented all their mines but two to foreign companies, has taken the solemn engagement not to give any more licenses of exportation. As it may easily be supposed, the engagement of giving no more licenses of exportation has been the principal basis on which the companies have relied to make their contracts, and the principal inducement for them to advance the rent as they have done. It is not known what policy will be adopted by the United States respecting neutral interests in Mexico in case the country should be occupied by their armies, but too high an opinion is entertained of the justice of their Government to admit for a moment the possibility of such interests being sacrificed or ruined when no direct benefit could be derived from such a measure for the United States, and when, on the contrary, it might be injurious to them, as may be explained."
On December 17th he again wrote to the Secretary calling his attention to General Orders No. 376, the seventh paragraph of which contained the duties on exported bars of gold and silver, which had been made free by order of the United States Government. Since the publication of the order he had seen a slip cut from a Vera Cruz paper of the 17th, from the Department to him on the subject, which said: "I have taken great pains to obtain correct information in respect to the production and exportation of the precious metals in and from this country. The Mexican policy has been uniform against the exportation of bars and ingots, though, from want or cupidity, special licenses have been given in violation of that sound policy and in gross violation of the rights purchased by the renters of the mints. This army is also interested in some prohibition, for if we permit the exportation of bars and ingots there will be but little domestic coinage, our drafts would soon be under par, and the Mexicans, from want of sufficient circulating medium, be less able to pay the contributions which we propose to levy upon them through their civil authorities."
General Scott, knowing the President's great desire to have the war terminated, embraced every opportunity to keep him advised as to the prospects, more or less remote, of peace, and wrote, December 14th, that he "had received no communication from the Mexican Government, and did not expect any before the Congress and President had been installed, about March 10th. It is believed that both will be inclined to peace." Congress, however, did not meet until May.
General William O. Butler arrived at the capital December 18th with thirty-six hundred men, and the train dispatched November 1st, under Colonel Harney, returned, under command of Lieutenant-Colonel Joseph E. Johnston, of the voltigeurs, with thirteen hundred men in addition to the escort that accompanied it on the trip down. These re-enforcements, with those that recently arrived, made a total of eight or nine thousand for duty.
General Scott was anxious to occupy the mining districts of San Luis and Zacatecas, maintain communication with the capital, and open one with Tampico, and for that purpose needed two columns of five thousand men each, and to garrison the State capitals within reach of the two columns. It was represented that great embarrassment would result from the movement on Zacatecas, as that column would have to march through Queretaro to reach its destination. It was represented that it would cause the dispersion of the Mexican Government and make its assembling at any other point doubtful. The Department, however, directed the double movement to be made when the re-enforcements known to have left Vera Cruz would arrive, unless in the meantime otherwise instructed.
The commanding general was greatly disappointed when the first train returned from Vera Cruz without bringing a jacket, blanket, or a pair of shoes for the army. That small depot had been exhausted by the troops of Patterson, Butler, and Marshall, who were fresh from home, or the Brazos, and others that arrived without clothing since June; and on December 25th he wrote of his great disappointments, and stated that this want might delay distant expeditions for many weeks, as some of the new volunteers were in want of essential articles of wear. He called attention to the fact that requisitions for clothing made by the regular regiments over a year previous had not been sent, or at any rate had not reached the regiments. No general ever paid more attention or displayed greater interest in the comfort of his men than General Scott. The quartermaster's and commissary departments were his never-ceasing care, and he gave constant personal attention to both.
On the matter of assessments he says: "You perceive I do not propose to seize the ordinary State or city revenue, as that, in my judgment, would be to make war on civilization, as no community can escape absolute anarchy without civil government. I shall take care, however, to see that the means collected within any particular State or city for that purpose are moderate and reasonable."
Order No. 395 was issued December 31st, specifying the States by name and the several sums they would be annually taxed. The duties paid at the gates of the cities, and in passing from one State to another, as well as the tobacco monopoly and lotteries, were abolished. Governors and members of the Legislature of the different States, and all collecting officers then in commission and charged with the collection of Federal duties of any, were held individually responsible in their persons and property for the collection and payment of the assessment. The order, which was a long one and carefully prepared, gave many details. The last two paragraphs say: "The American troops, in spreading themselves over this republic, will take care to observe the strictest discipline and morals in respect to the persons and property of the country, purchasing and paying for all necessaries and comforts they may require, and treating the unoffending inhabitants with forbearance and kindness. The higher honor of the country, as well as the particular honor of the army, must and shall be maintained against the few miscreants in our ranks. The laws of war will also be strictly observed toward all Mexicans who respect those laws. For the treatment of those atrocious bands of guerillos and armed rancheros, General Order No. 392 of the 12th instant will be rigidly enforced."