Congress and the Emperor immediately began to clash, in large part because their respective legal powers had not at this point been clearly delineated. By mid 1822 the three major issues were whether Iturbide had a right to appoint members to a Supreme Court, whether he had the right to veto legislation as the Spanish King had under the
Spanish Constitution of 1812, and his wish to establish rural military tribunals. The latter measure was in response to the lapse in law and order that was spreading throughout the country. Iturbide wished to establish in provincial capitals special courts made up of two military officers assisted by a lawyer. They were to keep track of seditious plots, but also in cases of murder, robbery or injury, and with the permission of the district captain general, the courts would be allowed to disregard statutes that would interfere with quickly carrying out judicial processes. Congress however, was opposed to the project. All the while, work on a constitution for the Empire was being neglected. Iturbide's greatest enemy in congress was deputy
Servando Teresa de Mier, a staunch republican, who would often ridicule the Emperor and his pageantry.
Arrest of the Deputies In August 1822, a conspiracy to overthrow the Emperor was discovered. The conspirators, claiming that Iturbide's election was illegal, plotted to rise up in the capital, move the congress to
Texcoco and declare the establishment of a Republic. On 26 and 27 August, fifteen deputies suspected of being involved with the plot, including Mier,
Carlos Maria Bustamante,
Francisco Tagle,
Jose del Valle, and
José Joaquín de Herrera were arrested. Congress was shocked by the arrests, which had included some of its most prominent deputies, and on the morning of 27 August, the legislature sent a letter to the military upholding the immunity of congress, and accusing the arresting authorities of acting in an extra-legal fashion. Secretary of Interior Relations,
Andrés Quintana Roo replied that by virtue of the
Spanish Constitution of 1812, the government had the authority to arrest deputies suspected of being involved in a treasonous conspiracy, and that congress would remain informed on the results of the ongoing investigation. Congress preferred to try the suspected deputies itself, but the matter was rejected. The prosecution against the accused did not get very far and a few were liberated around Christmas, 1822. One of the arrested,
Jose del Valle would actually go on to be appointed foreign minister by Iturbide a few months later.
Dissolution of Congress Afterwards followed controversies over reconstituting Congress. The convocation that had established congress had also directed it to divide itself into two chambers, which had not been done. The body remained united on the pretext of drafting a new constitution and it considered itself a sovereign constitutional congress. It did not view itself bound in any way by the 1812 Spanish Constitution which remained the de facto constitution of Mexico. At this point no consistent relationship had been established between population and the number of deputies, and the congress as it stood was starting to become a burdensome expense. Deputy
Lorenzo de Zavala brought up these concerns and proposed to reduce the number of deputies and also to divide the body into two chambers, a proposal which the emperor found very agreeable. On October 16, Iturbide gathered several deputies and generals at his home, and began to discuss the measure of dissolving congress under the pretext that it did not as it stood, proportionally represent the provinces. The following day, members of the council of state, the generals based in Mexico City, and more than forty deputies gathered at Iturbide's home for a conference regarding the problems with congress. He addressed them and accused congress of not having taken a single step in eight months towards writing a constitution, of not passing a single law regarding finances or the military, and of rather focusing their time on attacking the emperor. Various deputies added to the discussion, and brought forth the point that if congress needed to be reformed, the proposal ought to come from congress itself. The ultimate result of this conference was a proposal to reduce congress to seventy deputies. On October 17, 1822, the latter proposal was presented to congress. Congress rejected the measure, but a compromise was reached by which the legislature agreed to abide by the
Spanish Constitution of 1812 as a provisional constitution, allowing Iturbide a veto over legislation, and the right to select members of the supreme court. Iturbide however then sought for more concessions, arguing that his veto ought to extend to any article of any new constitution that congress would draft, and also continued to insist on reducing the number of deputies in congress. These grabs for power alienated even conservatives, and Iturbide's proposals were rejected, which Iturbide then responded to by dissolving congress on 31 October 1822. Brigadier
Luis Cortazar was placed in charge of dissolving the congress, and the deputies dispersed without protest or violence. Iturbide's pretext was that congress had accomplished nothing in the eight months it had been in session, work on a constitution had not begun despite that being the main purpose for its convocation, and that the matters of justice and finance had been completely neglected.
Financial Problems To replace congress, Iturbide established a
National Institutional Junta made up of forty five members, chosen from among friendly deputies. The junta was installed officially on 2 November 1822, and vested with the legislative power, until a new congress could be formed. Iturbide entrusted the body with writing up regulations for producing a new congress, but also began to focus on the grave financial issues that the Empire was facing. On 5 November 1822, the junta authorized a forced loan of over two million pesos, and the seizure of more than one million pesos waiting for exportation out of the country in the port of Veracruz. Iturbide also began to issue paper currency, and on 20 December, the government authorized the printing of four million pesos worth of banknotes, in denominations of one, two, and ten. These were issued to all financial offices of the Empire, where they were to be used in a ratio of 1:2 with silver coin in payment of all government of obligations. Anyone who owed money to the government was allowed to make one third of the payment in notes and two thirds in coin. ==Revolt against the Emperor==