File No. 817.51/487.
Brown Brothers and Company and J. W. Seligman and
Company to the Secretary of
State.
New York,
August 2, 1912.
Dear Sir: On behalf of the National Bank of
Nicaragua, incorporated, we beg to hand you herewith, for your
information, copy of a letter which we have today written to Ernest H.
Wands, Esquire, Financial Agent of Nicaragua, and copy of his reply.
In making the loan to which those letters refer, we assume that the Bank,
in case of necessity, will receive the same measure of protection which
may be afforded to us in connection with loans heretofore made by us to
Nicaragua under the Treasury Bills Agreement of September 1, 1911, and
the Supplemental Loan Agreement of March 26, 1912.
We remain [etc.]
Brown Brothers and Company.
J. and W. Seligman and Company.
[Page 1103]
[Inclosure 1.]
Brown Brothers and Company and J. and W.
Seligman and Company to the Financial Agent of Nicaragua.
New York,
August 2, 1912.
Dear Sir: We are today in receipt of a
telegram from the President of Nicaragua, requesting us to make an
immediate loan of $100,000 to his Government for the purpose of
enabling it to reestablish order.
As you are aware, the National Bank of Nicaragua, recently
incorporated pursuant to the terms of the Treasury Bills Agreement
of September 1, 1911, opened for business at Managua on August 1st.
The entire capital stock of that Bank is pledged with us as security
for the various loans which we have heretofore made to the Republic,
and under the terms of our agreement with Nicaragua, the Bank is
under our management and control. The Bank has, or can procure, the
funds necessary to make the loan above referred to, and we are
disposed, in that form to comply with the request of President Díaz.
Before doing so, however, we desire to know whether such a step
would meet with your approval as the Financial Agent of Nicaragua.
If this loan should be made, we beg to inform you that it is our
intention to file a copy of this letter and of your reply with the
Department of State at Washington, in order that the loan may
receive the same, measure of protection which the United States
Government will doubtless extend to the loans heretofore made by
us.
Yours very truly,
Brown Brothers and Company,
J. and W. Seligman and Company,
[Inclosure 2.]
The Financial Agent of
Nicaragua to Brown Brothers and
Company and J. and W. Seligman and
Company.
New York,
August 2, 1912.
Dear Sirs: I beg to acknowledge receipt of
your letter of this date with reference to a loan of $100,000
proposed to be made to the Government of Nicaragua by the National
Bank of Nicaragua, Incorporated.
In reply, I beg to say that the proposed loan meets with my entire
approval.
Very truly yours,
Note.—On August 5, 1912, the text of
the loan convention between the United States and Nicaragua (see
p. 1074) was made public.
