File No. 839.51/919.
The American Minister to the Secretary of State.
Santo Domingo, December 28, 1912.
At the rate of interest required by law the local bankers do not find the loan attractive and each will include in his contract a provision that he be made Government depositary. They inquire what their position would be if the approval of our Government were withheld after the first or any subsequent advance, after they have subscribed for the whole loan.
The Royal Bank of Canada has made a proposal for the whole loan in accordance with a contract form prepared by it.
What is the position of the Department in regard to naming a depositary for convention funds?
I suggest that the loan contract should be drawn up in Washington with express stipulations as to control of disbursements and that each advance should be approved as necessary up to the full amount of the loan.