lar intent. This obliged us to suspend the departure of our negotiator; and in 1823 two individuals, with that character, presented themselves in my country, and with pretensions which appeared not to be dissimilar to those which, on our part, had given occasion to a long and expensive war. The commissioners were received with the spirit of good faith, which the new circumstances had engendered. But as it was doubted that the Cabinet of Madrid had been able to rise superior to the prejudices of the Spanish nation and government, for the same reason it was anticipated that no arrangement could finally be made with these commissioners, which might be entirely favourable to the states compromised in America by the cause of independence. However, amidst these cheerless reflections, it was thought necessary to begin, in order to try if it were practicable to terminate a negotiation. Then it became indispensable to moralize previously on every ulterior step, and it was this that occasioned the law made by the representatives of the nation at that very moment, authorizing the Government to conclude treaties with Spain, but on the basis of the recognition of the independence, not only of the state of Rio de la Plata, but also of all the states of the former Spanish America. The results corresponded with the calculation. The commissioners of Spain

brought instructions only to make treaties of commerce, and to transmit to their court all other claims, but without concluding any thing on the footing of independence. Then was adopted the expedient of signing a Convention, (Document F.) which we call Preliminary to the definitive Treaties of Peace and Friendship with Spain, comprehending therein all the other States, and solely on the basis prescribed; also binding the Government of Buenos Ayres to send a commissioner to Europe, and to negotiate that, in like manner, other commissioners might be ordered by the other independent States to sign simultaneously a definitive arrangement. Without loss of time, Ministers were sent to the Republics of Chile, Peru, and Colombia, and an especial one to the Spanish General, who occupied some provinces of Upper and Lower Peru, to arrange the manner of co-operating for that purpose, according to the terms of the convention. The Spanish General evinced no disinclination to enter on the business; at least his decision was manifest that the convention should take effect as regarded the Provinces of Rio de la Plata, concerning which the commissioners were evidently authorised to act. This was ultimately resisted; because, in the army of the Royalists, there was a very considerable party who wished well to absolute rule, for which so many of their countrymen

were labouring in Spain; and consequently, from that faction little could be expected on the score of rationality. The General was forced to pay attention to that party; whilst, at the same time, as a Constitutionalist, he could not behold with indifference the decorous measure which Buenos Ayres laid before the Liberals, to endeavour to conquer the prejudices of the Spanish nation, by offering to negotiate, in aid of the salvation of her principles, a vote of twenty millions of dollars among all the American States. But time passed, and a multitude of events concurred to embarrass the whole plan. Peru, and the forces of Colombia, which had come to her assistance, remarked the indecision of the Spanish General, and continued to resist the hostilities which, in the midst of the doubts that perplexed him, he carried on among them. In Spain, absolute power was re-established, and annulled all the acts of the Cortes: and, at last, the Royalists accusing the Constitutionalists of Peru of wishing to establish an independent empire, both parties broke forth in hostility against each other, involving that unfortunate territory in still greater disasters; and adopting, in order reciprocally to give themselves satisfaction, the cruel measure of making war on us in the most atrocious manner. All hopes then were at an end; and nothing was left to the American Governments, but to regulate themselves on

E

fixed principles; and thus, for the first time since the revolution, to cement their natural relations.

DEPARTMENT OF FINANCE.

THIS department, the improvement in which, during the last three years, is so remarkable, ought to constitute an essential portion of this Memoir. It arose on these great pillars; namely, that the representatives of the nation alone had the right to impose contributions, direct or indirect taxes, or pecuniary penalties; and that no authority, without the approbation of the representatives, could order pay, pension, or any outlay of the public funds: that an estimate of expenditure should annually be presented, and a real account of it, in the same period, to the representatives: that the proceeds from every department should be made over to an office of collection, for distribution by another independent office. These bases were established by especial laws: and the practical part ensured by an enactment of no less importance; namely, that the credits of the Treasury should be collected with exactness. Now, as well before the administration which now governs, as in its time, the principal revenues have depended, and depend, on the Custom-house: but then, that is to say in 1821, the duties were ex

cessive, and the contraband trade enormous and scandalous: and, at present, the greater part of the merchandise imported into the country pays fifteen per cent.; those goods which it is wished to favour the most, or of which the clandestine introduction is most apprehended, remaining solely at from five to ten per cent.; and those which, on the contrary, are reputed prejudicial, being subject to twenty, twenty-five, or thirty per cent. It is nevertheless necessary to remark, that these highest duties have been relinquished or imposed, not because we are ignorant that it is absurd to imagine that Buenos Ayres can become, through that or any other means, a manufacturing country, but because it is prudent sometimes to yield somewhat to prejudices. It is likely that, in the course of time, all the duties (excepting those which fall on brandies, the consumption of which ought to diminish) will be reduced to fifteen per cent. it being also important to remark, that the fifteen per cent., which at the present moment is collected, does not probably amount to twelve on the real value, inasmuch as valuation is made with a great degree of moderation, and because the duties are paid by bills of exchange at forty-five or ninety days, and sometimes even at six months, the current credit revenue of the country being very large. It is well known how inconvenient it is to depend on the Custom-house, in the greater