File No. 839.51/1473.


Your January 11. Department approves representations made to President regarding deputy receivers.

Deputy receivers will not of course be allowed to take part in politics. It is advisable to consult Government in regard to new appointments, but faithful and competent deputies should not be discharged on purely partisan grounds. The application of the civil service to the deputy receivers should be recommended to the Government. If, according to convention and existing agreement of Jiménes Government the civil service rules are recognized, the Government will be expected to conform to them.

In view of deficit, impress upon President Jiménes necessity for,

First: deduction of expenses;

Second: Collection of all internal revenues provided for by law; and

Third: Increase in internal revenue by invalidating of outstanding stamps and selection of new sources of revenue.

The Government should be put upon a self supporting basis at once. It will be moving toward bankruptcy as long as expenditures exceed income.