A resolution of the Senate calling for correspondence in relation to taxation by the government of New Grenada on citizens of the United States when in transitu across the Isthmus of Panama, and also in relation to the mail service of the United States at the isthmus.

FEBRUARY 21, 1851.

Ordered to lie on the table, and be printed.

To the Senate of the United States:

I herewith transmit to the Senate a report from the Secretary of State, in answer to their resolution of the 10th instant.

MILLARD FILLMORE.

WASHINGTON, February 15, 1851.

DEPARTMENT OF STATE,

Washington, February 15, 1851.

The Secretary of State, to whom has been referred the resolution of the Senate of the 10th instant, requesting the President, as far as he may think it compatible with the public interest, to communicate to that body "such correspondence of the United States consul at Panama, with the Secretary of State and the Postmaster General, as relates to taxation by the government of New Grenada on citizens of the United States when in transitu across the Isthmus of Panama, also such as relates to the mail service of the United States at said isthmus," has the honor to report to the President the accompanying copies of documents, which em. brace the correspondence referred to in the above cited resolution, so far as is furnished by the files of this department.

Respectfully submitted:

To the PRESIDENT OF THE UNITED STATES.

List of accompanying papers.

DAN. WEBSTER.

Mr. Corwine to Mr. Clayton, dated February 23, 1850.

Same to same, (extract,) dated March 22, 1850.

Same to Mr. Webster, (extract,) dated September 9, 1850, with enclosure. Same to same, (extract,) dated September 22, 1850.

[No. 2.]

Mr. Corwine to Mr. Clayton.

CONSULATE OF THE UNITED STATES,
Panama, February 23, 1850.

SIR: I have the honor to acknowledge the receipt of my commission issued from your department on the 24th of January, 1850. Since the date of the last communication which I had the honor to address you, I communicated, as instructed, your views to the governor of this province with regard to the capitation tax imposed upon. American citizens arriving at and departing from this port by sea. My instructions from you were, to request the suspension of the tax until the authorities of Panama "received further orders from their government at Bogota," and "to remonstrate upon my arrival in Panama." I therefore had no other alternative than to make known your wishes to the governor before the receipt of my exequatur. The authorities, however, of the place, persist in demanding the tax of masters of American vessels and their consignees, but in several instances of late the latter have most positively refused to pay the tax. Indeed, there seems to be a growing determination on the part of masters of American vessels to resist the tax. The government has neither the moral nor physical power to enforce the law; and by a communication received from the collector of the province to-day, I am called on to assist him in the collection of the tax by withholding the registers of certain ships. Thus the matter stands at present.

This government has also imposed a tax of $125 upon every American commercial house in Panama, and the American merchants, without, I believe a solitary exception, refuse to pay it. They have addressed a memorial to the governor, in which they express their willingness to pay a reasonable tax for the support of the government in which they do business, but protest in decided but courteous terms against the payment of the amount referred to. You thus perceive, sir, that our citizens are at open rupture with this government, resisting oppressive taxation. What will be the result of the controversy, I am at this time unable to determine. The Americans, however much they may be averse to paying heavy taxes, are a law-abiding people, and will, I doubt not, obey most cheerfully the wishes of their government in this, as well as in all other matters that become good citizens. I therefore await your instructions as to what course I shall pursue in the premises.

I have the honor to be, sir, your very obedient servant,
A. B. CORWINE,

Hon. JOHN M. CLAYTON,

Secretary of State.

U. S. Consul.

Mr. Corwine to Mr. Clayton.

[Extract.]

"CONSULATE OF THE UNITED STATES,

"Panama, March 22, 1850.

"The capitation tax of two dollars a head upon every American citizen that embarks at this port is still enforced, although it is not collected with