Papers Relating to the Foreign Relations of the United States, With the Annual Message of the President Transmitted to Congress December 3, 1912

File No. 882.51/287.

The Secretary of State to the American Minister.

[Telegram.—Paraphrase.]

Department of State,
Washington, January 17, 1912.

Your cable of January 13 makes no explanation of the enormous increase of $200,000 in the floating debt since January 1, 1911, which Department regards as conclusive evidence of extravagance and bad management. The Loan Act makes no provision for the payment of any new debt; the present one will result in serious embarrassment and may constrain the Government of the United States to withdraw its sanction of the loan agreement, especially if the debt is increased.

Knox.