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I know I may lose three or four battles; very good, I will lose them. But we are ever courageous, ever booted and spurred, and we shall succeed. Before ten years have expired I shall have beaten England. No state of Europe will any longer have intercourse with her. It is my customhouses which do the greatest harm to the English.

As the annual revenue collected at the customhouses, the post office, and from the sale of land was $10,800,000, the treasury had some $7,000,000 of surplus each year. This was used to pay the national debt, which fell from $88,000,000 in 1801 to $45,000,000 in 1812, and this in spite of the purchase of Louisiana.

Agents were to be appointed by the United States who should take charge of the customhouses. Forty-five per cent of the total receipts were to be used in carrying on the affairs of the republic and the balance was to go to pay the indebtedness.

Back of the ancient wharfs, that dated from the days when Porto Banos was a receiver of stolen goods for buccaneers and pirates, were rows of thatched huts, streets, according to the season, of dust or mud, a few iron-barred, jail-like barracks, customhouses, municipal buildings, and the whitewashed adobe houses of the consuls. The backyard of the town was a swamp.

Already we begin to hear from abroad and from our customhouses that the prohibitory effect upon importations imputed to the act is not justified. The imports at the port of New York for the first three weeks of November were nearly 8 per cent greater than for the same period in 1889 and 29 per cent greater than in the same period of 1888.

This meant the decline of proud Barcelona, but naturally a port nearer the Atlantic had to be chosen. Customhouses were established in Cadiz, and special licenses were issued to intending traders.

Under this policy, if carried to its full extent, all the products of each country would enter the other free, but each would continue in control of its own tariff, and the customhouses along the border would also remain.

Back of the ancient wharfs, that dated from the days when Porto Banos was a receiver of stolen goods for buccaneers and pirates, were rows of thatched huts, streets, according to the season, of dust or mud, a few iron-barred, jail-like barracks, customhouses, municipal buildings, and the whitewashed adobe houses of the consuls. The backyard of the town was a swamp.

Customhouses were then established and customs districts marked out, and ports of entry and ports of delivery designated; provision was made for the support of lighthouses and beacons; the Ordinance of 1787 for the government of the territories was slightly changed and reenacted; the departments of State, War, and Treasury were established; and a call was made on the Secretary of the Treasury to report a plan for payment of the old Continental debt.

But the acquisition of it by the United States at once put an end to the old Mexican government, and made it necessary for Congress to provide new governments. There must be American governors, American courts, American judges, customhouses, revenue laws; in a word, there must be a complete change from the Mexican way of governing to the American way.