File No. 838.51/355.
The Secretary of State to Minister Blanchard.
Washington, October 7, 1914.
It appears that payments under expiring convention budgetaire, for the months of September and October require a total of about $200,000 gold; also that moratorium in France and conditions produced by war constitute circumstances which Haitian Government should consider in connection with failure of National Bank of Republic to make these payments. As possible solution it is suggested that the Bank might be permitted to use from funds now held in bank at Port au Prince for retirement of existing Haitian paper money the sum of $200,000 gold for purpose of making these payments, at same time transferring an equal amount to that fund from the funds of the Bank on deposit in France. The effect of which would not be a depletion of the fund but a mere transfer of it pro tanto from the one bank to the other, this arrangement to be on condition that Haitian Government will first enact the legislation necessary [Page 354] to continue in force present affectations [sic] given to convention budgetaire until such time as arrears to the budgetaire for 1913–1914 are finally paid.
The Department regrets any differences between the Republic of Haiti and the National Bank which might upset at a time of general financial stress the entire arrangements heretofore entered into.
Bring this to the attention of the Haitian Government at once and ask for its consideration of this proposal and for an expression of its views thereon.