File No. 817.51/551.
[Inclosure—Translation.]
Executive Decree issued by the President of
Nicaragua on June 23, 1913.
Whereas, the contract of November 4, 1912, between the Government and
Brown Brothers & Company and J. & W. Seligman & Company
modified two prior contracts between the same parties dated
respectively March 26th and May 25th, 1912, with the result that the
bankers were relieved of the obligation to provide one hundred
thousand dollars for the purpose of the Monetary Law of March 20,
1912, said sum being a part of certain five hundred thousand dollars
mentioned in said contracts; and
Whereas, notwithstanding the provisions of said contract of November
4, 1912, the Executive considers it advisable that said sum of one
hundred thousand dollars shall remain available for the purposes
indicated, and desires that the bankers shall not avail themselves
of the provisions referred to, but that on the contrary they shall
provide said sum as an integral part of said five hundred thousand
dollars upon the same conditions that would have governed if the
contracts of May 25th and November 4th, 1912, had not been entered
into;
Whereas, the bankers have offered to waive said provisions of said
November 4, 1912, contract and to provide said one hundred thousand
dollars for the purposes of said Monetary Law as originally
agreed;
Whereas, the bankers have offered to waive their right to apply the
Customs collections up to October 15, 1913, to the payment of the
principal and interest of the Treasury Bills still outstanding and
to the repayment of the amounts advanced and to be advanced by them
under the supplementary contract of March 26, 1912, for the purposes
of said Monetary Law;
Whereas, said offers by the bankers are upon the following
conditions, namely:
- First, that the one hundred thousand dollars above
mentioned to be provided by the bankers shall be applicable
exclusively to the purposes of said Monetary Law.
- Second, that the Customs duties to be collected between
June 30th and October 15th, 1913, after the payment of the
costs of collection, shall be applied as follows:
- A.
- To the payment during each month to the bankers of
the amounts which, under the provisions of the May
25, 1912, contract between the Republic and the
Corporation of Foreign Bondholders, are payable for
account of interest, sinking fund and service of the
1909 loan.
- B.
- To the payment during each month to the United
States Mortgage and Trust Company of one-quarter of
the balance of said Customs collections, said
amounts to be treated as additions to the exchange
fund established by the Monetary Law.
- C.
- To the payment during each month of a sum not
exceeding three thousand dollars to the Mixed Claims
Commission for salaries and expenses of said
commission.
- D.
- After the foregoing payments shall have been made,
any balance during each month shall be deposited
with the National Bank of Nicaragua, Incorporated,
to the credit and for the benefit of the
Republic.
- Third, that any failure on the part of the Republic to
comply with any of said conditions shall operate to
terminate the proposed arrangement.
- Fourth, that such waivers shall in no manner affect the
rights of the bankers under the Treasury Bills and
Supplementary Agreements.
Now therefore the Executive decrees to accept the offers made by the
bankers as above set forth and hereby authorizes and empowers Señor
Pedro Rafael Guaclra, Minister of Finance of Nicaragua, to execute
and deliver on behalf of the Republic such contract as may be
required to give effect to the arrangement referred to.
