File No. 838.516/27.
The Minister of Haiti to the Secretary of State.
Washington, December 22, 1914.
Mr. Secretary of State: In continuation of the interview you so kindly granted me this afternoon, I have the honor to lay before you the following:
In 1910 the Government of the Republic of Haiti entered with the “Banque de l’Union Panisienne” into: (1) a grant contract for the establishment and operation of a State Bank to be styled “Banque Nationale de la République d’Haiti”; and (2) a foreign loan contract. The loan was to be for 65,000,000 francs face value and to be represented by 130,000 bonds of 500 francs each bearing interest at the rate of 5 per cent, per annum. The Banque de l’Union Parisiehne undertook, to take up the 130,000 bonds for the contractual [Page 372] lump sum of 47,000,000 francs out of which 10,000,000 of francs were to be held in reserve to carry out a program of monetary reform including the withdrawal of all the paper money turned in by the Haitian Government.
I bring to mind, in passing, that the Department of State had seen fit to protest against those contracts, going so far as to say that they seriously affected the commercial and financial interests of the United States as well as the economic and political prosperity of Haiti.
I will also mention incidentally, that on the 5th of January, 1914, a Central Commission for the Supervision of Redemption having called at the main office of the said Banque Nationale de la République d’Haiti for the purpose of verifying the presence in the bank of the money reserved for the withdrawal of paper currency and yielded by the drafts drawn by the Haitian Government on the 10,000,000 francs allotted for the monetary reform as well as by the taxes provided by the Haitian law of August 13, 1903, was excusably surprised at finding that the Bank with which $558,548.88 had been deposited, only had $320,000 in its strong boxes.
That same bank, charged with the duties of State Treasurer of Haiti and responsible holder of the public funds, prevailed upon the forces of the United States warship, in violation of its engagements and the most positive constitutional and fiscal laws, to land on Haitian territory and remove from its strong boxes to that ship funds allotted for the redemption of paper money and unquestionably and exclusively belonging to the Haitian nation.
My Government deeply deplores an arbitrary and offensive intervention which carries a flagrant invasion of the sovereignty and independence of the Republic of Haiti. In forwarding to you its protest which is guided by the unanimous sentiment of the Haitians I firmly hope that you will have it at heart to disown so excessive an action and to order such restitutions and amends as may be necessary.
Be pleased to accept [etc.]