No. 397.
Mr. Langston to Mr. Evarts.
Port-au-Prince, April 9, 1880. (Received April 22.)
Sir: For several years the statesmen of this republic have felt, according to their declarations, that the introduction of foreign capital is essential to the development of the agricultural and other resources of the country, in a larger and more remunerative m anner. It will be recollected that under the former administration this position was taken, and the present one has accepted and urged the correctness of this opinion in the several official papers and addresses, which it has already published. Besides, it has generally been felt that the treasury was not wisely constituted nor efficiently and advantageously managed. Upon this last point President Salomon, in presenting his views latterly to the Corps Legislatif, in favor of the establishment of a national bank, uses these words: “But the government would not deceive you. The principal object it has in view is to establish upon solid basis the working of the service of our treasury.”
To gain, then, the introduction of foreign capital, and to secure, if possible, a better service in the national treasury, the proposition to establish a national bank, which shall take the place of the treasury, and which shall be founded upon foreign capital, was received with general favor.
Such proposition was formally submitted by the government to the Corps Legislatif on the 4th day of last month, and, after due consideration by a special committee, and subsequently, upon their report with regard thereto, by the national assembly, it was voted by that body on the 1st instant. The ordinance passed by the national assembly, as [Page 629] proposed by the government, a copy of which, with translation, as published in “Le Moniteur,” official section, April 3, 1880, contains two articles, with nine sections of the first article.
The first article authorizes the government to negotiate, after due publicity and competition, the establishment of a national bank, with an institution of first class credit, upon the following basis, as described in the several sections of this article:
- First. The bank shall be constituted as a foreign corporate association, with a capital of ten millions of francs; this amount to be increased aathe operation of the bank may require.
- Second. The duration of the concession shall be for fifty years, during which period the government agrees not to issue any paper money.
- Third. The bank shall have the exclusive privilege of issuing bills, which shall be redeemable at sight and in coin, these bills to be represented always, either by metallic reserve or by values affording entire security.
- Fourth. The bank shall perform the service of the treasury; it shall be in account with the government, with which it shall open a permanent credit of 1,500,000 francs, at 6 per cent. per annum, without prejudice to other credits or advances which the government may wish to obtain upon special contract, ratified.by the Corps Legislatif.
- Fifth. Besides performing the service of the treasury the bank shall conduct the ordinary operations of a bank of circulation, loan, and discount.
- Sixth. There shall be appointed to the bank two commissioners of the government, who shall have control of all its operations; no bill shall be issued without having been countersigned by the commissioner residing at Port-au-Prince.
- Seventh. The bank, if the grand public powers authorize it, shall have struck, at the mint at Paris, national coin of the same stamps and standard as the French coin.
- Eighth. The bank, as a civil personality, shall enjoy the rights of a Haytian citizen, and shall be subject to the jurisdiction of Haytian tribunals, but any dispute arising between the government and the administration of the bank shall be referred to arbitrators.
- Ninth. There shall be two councils of administration, one at Paris and the other at Port-au-Prince, where the principal seat of the bank shall be; special branches shall be established where the Avant thereof is felt.
Article 2 provides that the contract made by the government with the concessionary company shall be submitted for ratification to the national assembly and the bank shall be opened within the shortest delay possible, and in any case this delay shall not exceed six months from such ratification.
It is said seventeen bankers of Paris stand ready to accept the contract proposed in this ordinance; and it is reported that at a very early day the honorable secretary of state for finance, commerce and foreign relations will leave this city for Paris to make arrangements in that behalf How true either statement is, it is now quite impossible to state. And yet certain phraseology of the enactment, as that in which provision is made for striking coin at the mint in Paris, and that in which two councils are established, the one at Paris the other at Port-au-Prince, would seem to indicate that it was expected that the concession would be taken in France.
I am, &c.,