File No. 882.51/634.

Kuhn, Loeb and Company to the Acting Secretary of State.

[Telegram.]

We beg to acknowledge receipt of your telegram in reference to Liberia and have discussed its contents with Messrs. J. P. Morgan and Company, National City Bank, and First National Bank, our associates here. The fiscal agency informs us that although payments for the service of the loan are in arrears and must be made up out of future instalments of pledged revenues or otherwise, the agency has on hand sufficient funds to pay the coupon due January 1, 1915, and expects to make such payment. Next coupon will not mature until July 1, 1915. Plan proposed by General Receiver that unissued bonds be certified and used as the basis of a loan is not feasible because fiscal agency agreement restricts use of unissued bonds and proceeds to specified purposes mentioned in the agreement and we greatly regret that under present conditions it is not possible to arrange any loan to Liberia.

Kuhn, Loeb and Company.