Mr. Merry to Mr. Hay.

No. 464.]

Sir: I have the honor to acknowledge receipt of your No. 352 dated August 2, and have carefully noted contents thereof. I am gratified, in reply, to state that the Bingham trust-fund question appears to have been disposed of in a manner agreeable to the tenor of said dispatch.

I beg to confirm my cable of 14th instant.1

On 15th instant I received a cable from Consul Bingham confirming the above.

It is my impression that the action of the Nicaraguan Government is due to my dispatch No. 115, dated July 28, addressed to Minister Sanchez, of which I forwarded copy to you, but in any event I am pleased that said dispatch was sent him, as the tenor thereof properly characterizes the action of the local judge at Bluefields in endeavoring to enforce a third payment, and the moral effect will be good.

[Page 823]

The Republics of Central America are so accustomed to the infinite friendly patience of the United States Government that an occasional display of firmness enforced by a decisive dispatch comes to them as a surprise that there may be a limit to forbearance.

I respectfully congratulate the Department of State that this unjust demand of the Nicaraguan authorities upon our citizens has been withdrawn. The result will be an increased respect for American interests in Central America.

With assurances, etc.,

William Lawrence Merry.
  1. Printed ante.