Mr. Foster to Mr. Herbert.
Washington, September 28, 1892.
Sir: I have the honor to acknowledge the receipt of your note of the 19th instant, in reply to Mr. Adee’s note of August 15 in which you inform me that Her British Majesty’s consul at Apia “has been instructed to endeavor, in concert with his German and United States colleagues, to effect with the president of the municipal council, a speedy and amicable settlement of the question which has been raised as to whether the pound sterling and the 20-mark gold piece should be received as the equivalent of $4.76 or $5, United States currency.”
The Government of the United States had supposed that an understanding upon this subject with reference to the 20-mark gold piece was reached at this Department with the German chargé in March last, by which it was to be received as the equivalent of $4.76. It was upon the basis of such an understanding that this Government instructed its consul to cooperate with his German and British colleagues in favor of the admission of German coin into Samoa. It is well understood that the 20-mark gold piece and the pound sterling are not, nor were they intended to be, the equivalent of $5; nor is either the equivalent of the other. To arbitrarily declare them such is an entire disregard of the fact and in contravention of the terms of the treaty.
Section 4, of Article vi, clearly forbids the reception of other currencies at more than their equivalent in “the standard money of the United States of America.” Baron Senfft von Pilsach not only receives the pound sterling and the 20-mark gold piece at more than their equivalent value, but his action goes to the extent of substantially making them units of value, which the treaty equally precludes. The consular board and the municipal council in August 1891, agreed upon a basis of exchange which represents substantially the exchange value of these coins. It made the pound sterling the equivalent of $4.86 and the 20-mark gold piece the equivalent of $4.76. Their equivalent values, according to the regulations of the Treasury of this Government, are for the pound sterling, $4.8665, and for the 20-mark gold piece, $4.76. It is reported that many of the merchants at Apia receive the 20-mark gold piece at $4.75 and pay it into the Treasury for duties at $5.
I hope that the Government of Her Majesty will be pleased to cooperate with the Government of the United States in securing an observance of the treaty in this regard which plainly establishes the coin of the United States as the unit of value in Samoa and permits other coin to be taken at their equivalent value only.
I have etc.,