Economics of Mexican-United States Relations During the Reformation

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Economics of Mexican-United States Relations During the Reformation ECONOMICS OF MEXICAN-UNITED STATES RELATIONS DURING THE REFORM, 185^-1861 By Donathon Carries Olliff A DISSERTATION PRESENTED TO THE GRADUATE COUNCIL OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY UNIVERSITY OF FLORIDA 197^ UNIVERSlfY OF FLORIDA 3 1262 08666 476 9 PREFACE This study is concerned with economic relations between Mexico and the United States and their impact on the more traditional diplomatic ties during the years from the beginning of the Reforma in 185^ to 1861 when the American civil war and the French intervention in Mexico brought an end to all but nominal political relations. Previous stud- ies of American involvement in the Mexican economy during the nineteenth century have focused on the late Diaz period. Prior to this period Americans were assumed either to be unaware of or uninterested in the possibilities of develop- ing Mexico's resources. During the decades before the American civil war, Americans were thought to have been too intent on territorial expansion, internal development, and the sectional controversy to give any consideration to eco- nomic developments in Mexico. I first began to question this traditional view while doing research on "John Forsyth's ministership to Mexico" for a master's degree at Auburn University. This research revealed that Forsyth advocated converting Mexico into an economic protectorate of the United States and that without authority he negotiated treaties with Mexico which he believed would accomplish this objective. Since this research was limited to American sources, principally diplomatic correspondence, I could not determine the extent to which Forsyth's efforts may have represented a response to a widely recognized need for closer economic ties between the two countries. Without evidence of private support in either country for closer ties and without some indication of the Mexican motives for signing the treaties and the interpretation that Mexico may have placed on them, I could not eliminate the remote possibility that the economic pro- tectorate scheme had only been a product of Forsyth's fer- tile imagination. The unusual features of the treaties, the conditions under which they were negotiated, and Forsyth's claim that leading liberals favored a protectorate status for their country encouraged me to pursue the investigation into Mexican sources. Further encouragement came from Charles C. Cumberland's assessment, in Mexico* the Struggle the nineteenth for Modernity , that Diaz's success late in century in attracting foreign investment represented merely the execution of a long established and accepted policy. Cumberland's statement also made me more aware of the need to be alert to indications of Mexican official encouragement to American capital. Research into Mexican sources was directed to throw light on certain questions. What were the economic objec- tives of the leaders of the Ayutla revolution? What role was envisioned for the United States in Mexico's economic future? How effectively were these views translated into policy by the liberal governments? What private American 11 economic interests were involved in Mexico and what were their relationships with the governments of the respective countries? The results of this research coupled with inves- tigations into American sources revealed complex patterns of activities, aspirations, and relationships tending to draw the two countries together. Research revealed that the type of data necessary for the construction of statistical analysis of volume and nature of trade and investment was unavailable. Specific figures could be gleaned only for limited periods and activ- ities, frequently even these were of doubtful veracity. As a result, no attempt will be made to quantify the economic relations but instead, emphasis will first be given to atti- tudes and activities of individuals, both private and offi- cial, who were prominent in promoting closer economic ties. After establishing the attitudinal atmosphere, the diplomatic relations between the two countries will be analyzed with reference to their effect on economic questions. In this analysis economic is defined broadly enough to include not only investment and trade interests pursued privately or officially but also the desire of the Mexican government to secure credit from private or official sources in the United States and the desire of the American government to utilize the financial distress of the Mexican government as a lever to force acceptance of American objectives. The activities of private American entrepreneurs are dealt with only as they impinge upon official relations. Finally the activities 111 increasing concentration of public energy and attention on its own domestic crisis made it impossible for the United States to provide Mexico with the security and credit it needed. The diplomatic and consular archives of Mexico and the United States were used extensively in this study. News- papers of Mexico City also proved a valuable source. The collections of papers of Ignacio comonfort, Benito JuSrez, James Buchanan, Melchor Ocampo, and Matlas Romero proved valuable, as did the scattered records of several private Americans involved in the Mexican economy. NOTES 1 Charles C. Cumberland, Mexico ; the Struggle for Modernity (New York: Oxford University Press, I968), pp. 15^-155. iy TABLE OF CONTENTS PREFACE . i Notes iv KEY TO ABBREVIATIONS USED IN CHAPTER NOTES . vi ABSTRACT vii Chapter I. ATTITUDINAL SETTING . ... 1 Notes *KL II. THE REVOLUTION OF AYUTLA AND THE BASES OF LIBERAL DIPLOMACY ^9 Notes . 106 III. THE FORSYTH TREATIES AND THE LIBERALS' SEARCH FOR SECURITY 117 Notes .172 IV. BUCHANAN AND TERRITORIAL EXPANSION ... 183 Notes . 239 V. THE LIBERALS' QUEST FOR RECOGNITION AND CREDIT 2^7 Notes 282 VI. THE MCLANE-OCAMPO TREATIES: THE LAST ATTEMPT TO COMPROMISE CONFLICTING GOALS . 286 Notes 333 VII. ENTREPRENEURS AND OPPORTUNITIES .... 339 Notes 382 VIII. EPILOGUE .389 WORKS AND SOURCES CITED 395 BIOGRAPHICAL SKETCH 404 KEY TO ABBREVIATIONS USED IN CHAPTER NOTES AGN - Archivo General de la Naci6n, Mexico City. AHINAH - Archivo Hist6rico del Instituto Nacional de Antropologla e Historia, Mexico City. This archive contains two collections of letters to Melchor Ocampo, mostly from Jose" M. Mata, forming legajos 8-2 and 8-4 of "Papeles sueltos." Citations to these letters will identify sender, recipient, date, legajo, and document number, e.g., Mata to Ocampo, Sept. 10, 1859, 8-4-107, AHINAH. AMR - Archivo Matlas Romero, Banco de Mexico, Mexico City. This archive is divided into "cartas recibidos" (CR) and "cartas dirijidos" (CD). ASRE - Archivo de la Secretaria de Relaciones Exteriores, Mexico City. BP/PHS - Buchanan Papers, Pennsylvania Historical Society, Philadelphia. GC/UT - Garcia Collection, University of Texas, Austin. CP, GC/UT - Comonfort Papers GFP, GC/UT - G6mez Farias Papers JM - Juarez Manuscripts, Caja Fuerte, Biblioteca Nacional, Mexico City. MRE - Minister of Foreign Relations (Mexico). NA - National Archives, Washington. NA/CD/Tam - Consular Despatches (Tampico. NA/CDAC - Consular Despatches (Veracruz). NA/DD - Diplomatic Despatches (Mexico). NA/DI - Diplomatic Instructions (Mexico). NA/DN/Mex - Diplomatic Notes from Mexico. NA/DPR - Diplomatic Post Records (Mexico). NA/DPR/FM - Notes to Legation from Mexican government, NA/RBO - Report of Bureau Officers. NA/SM - Special Missions. VI Abstract of Dissertation Presented to the Graduate Council of the University of Florida in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy ECONOMICS OF MEXICAN-UNITED STATES RELATIONS DURING THE REFORM, 1854-1861 By Donathon Carnes Olliff March, 197^ Chairman: Lyle Nelson McAlister Major Department! History Mexican liberals of the Reforma era were committed to achieving a broadly based transformation of Mexican life. They saw economic reform and modernization as the key to the regenerating process which they wished to undertake. The lib- erals looked to the United States as a model for their devel- opment programs and as a source for the capital and technol- ogy required. They sought to bring the two countries closer together and to convert Mexico into an economic protectorate of the United States. Generous grants were made to American citizens to develop and exploit the Mexican economy, espe- cially in the field of transportation, and various laws were enacted to favor the American investor-entrepreneur in Mexico. The United States, on the other hand, pursued a policy of territorial expansion toward Mexico. While American businessmen and diplomats in Mexico favored a generous and protective policy toward Mexico, Washington, particularly during the Buchanan administration, proved unresponsive to economic considerations. The purchase of territory in north- west Mexico and unrestricted control over the Tehuantepec transit route were the official American policy objectives. The diplomatic relations between the two countries was a contest to realize these conflicting objectives. Mexico sought to exchange valuable economic concessions for American protection and credit. The United States attempted to take advantage of the fiscal bankruptcy of strife-torn Mexico to secure land and transit rights. Twice, in the Forsyth treaties of 1857 and the McLane-Ocampo treaties of 1859 i Mexico secured agreements with the United States which would have placed her under American protection and reserved her economy for American exploitation; each time Washington
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