File No. 125.29781/38a.

The Secretary of State to Special Agent Carothers.

[Telegram.]

Consul, Chihuahua, reports receipt of a telegram from Consular Agent, Parral, saying he was arrested by Constitutionalist authorities on April 1; charged with passing counterfeit money, but had been paroled for twenty four hours.

The arrest of a consular officer on a criminal charge of passing counterfeit money would appear to be an interference with the performance of the consular duties of the officer, inconsistent with national comity, which it is not believed General Carranza would sanction. You are therefore instructed to bring this matter to his attention at once, and suggest to him the advisability of first submitting to this Government for investigation any infractions of law which may be lodged against its consular officers. You will also say to him that it is the desire of this Government that any further action [Page 658] be suspended in the case of the Consular Agent at Parral until the charges can be investigated.

It is also reported to the Department that two American employees of the Alvarado Mining and Milling Co. were imprisoned at Parral for the same offense on March 31st, although all false money was redeemed. As it is quite likely, under conditions prevailing in Mexico, considerable quantities of counterfeit money will be put in circulation, thus rendering it difficult to distinguish the spurious from the genuine, you are instructed to unofficially request of General Carranza that he describe the fiat money which it is desired shall be accepted, or that which is regarded by the Constitutionalists as spurious, so that our nationals may be fully advised, and further impositions upon Americans based upon similar grounds be avoided. Unless there is evidence of criminal intent in the passing of this counterfeit money, which this Government cannot think possible, you will urge the immediate release and cancellation of the charges against these American citizens.

W. J. Bryan
.