File No. 817.5.1/686.
Minister Jefferson to the Secretary of State.
Managua , October 2, 1914 .
Yesterday President Díaz signed the new budget. For provisions see my September 10. At my request all other legislation suspended awaiting action on the Canal Treaty and arrangements with bankers. [Page 949] In my conversation yesterday with the Minister of Finance he stated that the salaries unpaid and other accounts due for the last seven months amount to $504,758 besides which President Díaz has personally signed drafts and notes outstanding on account of the Government amounting to $200,000 more. The above items seem large to me. It is difficult to get at all expenditures of moneys.
In view of the decrease in the customs and the internal revenue and the consequent shortage of something like $50,000 monthly, I have suggested to the Government officials the passage of an act immediately imposing taxes on personal and real property; also a reorganization of the internal revenue service. I would suggest, in the event of another loan and the issuance of more money, that the above reforms be complied with and the income from the internal revenue be supervised and paid through the National Bank.