File No. 839.51/928.
I believe, under all the circumstances, that the proposal is fair and
reasonable, and that if no proposals are received more favorable to the
Government the Dominican Government might well be authorized to close
with this offer.
[Inclosure.]
contract between the republic of santo domingo
and the national city bank of new york respecting the purchase
of $1,500,000 par value treasury
notes.
The National City Bank of New York hereby agrees to purchase from the
Republic of Santo Domingo, and the said Republic hereby agrees to
sell to the said bank, one million five hundred thousand dollars par
value Treasury notes dated January 1, 1913, any unredeemed balance
due January 1, 1919, bearing interest at the rate of six per centum
per annum payable January first and July first of each year, the
said notes to be the direct obligation of the Republic of Santo
Domingo and issued in coupon form of one thousand dollars
denomination each, to be registered as to principal only, principal
and interest to be payable at the National City Bank of New York in
United States gold coin of the present standard of weight and
fineness. The notes shall be numbered from 1 to 1500 consecutively
and shall become redeemable and shall be payable in their sequence
and in such numbers on each interest date as the amount of the
amortization fund available with the bank on such interest date will
permit.
To guarantee the payment of the interest on the aforesaid notes and
to provide for their retirement within the time specified, the
Republic of Santo Domingo, subject to the terms of the convention
between the United States and the Dominican Republic, hereby pledges
of its customs receipts the sum monthly of thirty thousand dollars
gold, which amount the Republic hereby authorizes the Receiver of
Customs to deduct monthly, commencing January 1, 1913, from the
customs receipts of the Republic, and immediately to deposit said
amount with the National City Bank of New York for the service of
the loan, such said monthly payments of thirty thousand dollars to
be regularly continued by the Receiver of Customs until the total
amount so deposited with the bank shall have fully served the
requirements of this contract.
The National City Bank of New York hereby agrees to pay to the
Republic of Santo Domingo ninety-six and one-half and accrued
interest for not exceeding one million five hundred thousand dollars
par value of the above described notes, five hundred thousand
dollars of the purchase money to be available to the Republic
immediately upon the execution of this contract, and the remainder
to be payable to the Republic as required, upon three days’ notice
to the bank, the payments to be made in New York funds.
Any and all remittances on account of this loan, of coin, bullion or
currency, or through the medium of exchange, made by the bank to
Santo Domingo or elsewhere, as may be ordered, shall be made at the
expense of the Republic, the bank agreeing to charge only the actual
cost.
[Page 460]
The bank hereby agrees to allow the Republic interest at the rate of
two per centum per annum on the balance of its account, such
interest to be credited semiannually.
The notes shall be executed in English, and if desired in Spanish,
but the English wording shall govern and be acceptable to the
bank.
The notes shall bear the facsimile signatures of those authorized to
sign on behalf of the Republic and shall be certified to by the
National City Bank of New York. All notes as redeemed shall be
cancelled by the bank and surrendered to the Dominican Republic.
