File No. 882.51/434.
The American Minister to the Secretary of State.
Monrovia, August 19, 1912.
Department’s August 14. Clark requests me to say have $7,000 gold July account, balance payable on receipt of further July returns from out ports. Erlangers paid 15th. Interest 1871 loan due September. Liberian Government states compelled to offset all payments account outstanding loans against further payments to fiscal agents. Liberian Government can not understand, if assurance that payments outstanding loans will be returned is expected to be satisfactory to it, why bankers will not accept an assurance that these moneys will be paid them when returned.
Monrovia revenues pledged for bank advance. Only revenues out ports available and inadequate supervision prevents collection of full amounts in gold though marked improvement shown. Revenues of all ports decrease in rainy season.
Liberia can easily meet all charges contemplated in refunding loan agreement but under present conditions probable that gold revenues collected will be insufficient to pay double interest and urgent current expenses. Double interest demand works hardship upon Liberia and is unjust to foreign officials who can not exist indefinitely without pay.