File No. 819.77/212.
The Minister of Panama to the Secretary of State.
Washington, November 2, 1914.
Your Excellency: We, the Republic of Panama, beg leave to advise you that we have arranged for the creation and issue of a series of five per cent sinking fund, thirty year, gold bonds of the Republic, dated November 2, 1914, maturing November 1, 1944, and [Page 1035] for the amount in the aggregate of $3,000,000. The purpose of the bond issue is the construction and equipment by the Government of railways within the Republic, and the amount to be issued at this time is $750,000.
All the bonds of the series are to be issued under and secured by an indenture of trust to The Farmers’ Loan and Trust Company of New York and William Nelson Cromwell as trustees (a copy of which is herewith submitted); and to secure the payment of the interest and sinking fund of said series, the Republic has set aside annually for the period of thirty consecutive years, commencing February 26, 1915, and ending February 26, 1944, the sum of $63,125 out of the annuity of $250,000 in gold coin of the United States of America which, pursuant to the terms of the “Convention between the United States and the Republic of Panama for the construction of a ship canal to connect the waters of the Atlantic and Pacific Oceans “ratified and proclaimed on February 26, 1904, the United States of America has agreed to pay in perpetuity to the Republic of Panama.
The Republic accordingly appropriates, transfers and sets over said sum to the said trustees and hereby appoints The Farmers’ Loan and Trust Company of the City of New York, one of the said trustees, the agent and attorney-in-fact of the Republic of Panama, to receive payment of and give acquittance for the said sum of $63,125 out of the $250,000 to fall due to the Republic of Panama under said treaty on the 26th day of February, 1915, and a like sum on each 26th day of February thereafter until and including February 26, 1944, and we hereby agree, authorize and request that your excellency’s Government pay over said several sums of $63,125 to The Farmers’ Loan and Trust Company of the City of New York, during the period and as above provided.