The way
in which this money was obtained is described in Chapter IV of this
history. It grew to be a large sum, of which the Mexican government took
control, paying the interest to the Roman Catholic Church in Upper and
Lower California. After the Mexican war, Mexico refused to pay its share
to the Church of Upper California. The United States took up the matter,
claiming that according to the treaty which closed the war, the Catholic
Church of the state of California had a right to its Mexican property.
In 1868 it was agreed by the two countries to leave the matter to the
decision of Sir Edward Thornton, English ambassador at Washington. He
decided that Mexico should pay an amount equal to one half the interest
since the war. Mexico did this, but had paid nothing during all the
years which had passed since that time. To settle the dispute finally,
it was decided to leave it to arbitration by the Hague court. The
verdict given was that Mexico should pay the Roman Catholic Church of
California $1,400,000 for the past, and one half the interest on the
fund each year from February, 1903, forever.
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