File No. 838.51/421.
Chargé Davis to the Secretary of State.
Port au Prince, September 26, 1915.
Following instructions your September 22, 500,000 gourdes which arrived on Friday are being held in customhouse. As a result of long interview with the Minister for Foreign Affairs and Minister of Finance regarding same, I respectfully submit that Haitian Government should be allowed to issue this money for the following reason. The Haitian Government has less than 250,000 gourdes and is receiving no customs receipts. Payment of salaries and expenses has already begun, the Haitian Government having counted on this money without which payments will have to be suspended with great loss to Government prestige. Immediate placing of this money in circulation will greatly relieve suffering and will strengthen Haitian Government position before Haitian Congress. The Haitian Government is using its best efforts to secure treaty ratification but knowledge of intention of the United States to withhold delivery of gourdes is being used by opposition to embarrass the Haitian Government and to prevent ratification. Issue of this relatively small amount of money can not materially affect financial situation but withholding same may seriously jeopardize entire treaty negotiations. Haitian Government reiterates intention of no further issue and states that when this decision was taken the present shipment was already en route and paid for and not intended to be covered by repeal law, its use being contemplated to tide over interval until ratification was secured. Minister of Finance further states that knowledge of withholding delivery is being used for speculative purposes and would result in considerable loss to the Haitian Government if gourdes are not available. In view of extreme importance of conclusion of treaty at this time and the embarrassment of the Haitian Government due to above stated conditions, request an early reply.