File No. 838.51/422.
Admiral Caperton to the Secretary of the Navy.
It is the desire of the Haitian Government that the 500,000 gourdes, ex steamer Fauna but now in the customhouse, be issued; Paymaster Conard has devised the following plan: Notes to be signed by the National Bank, thus issuing the first installment of own circulation in accordance with its contract. From funds in hand the required reserve will be set aside. The notes thus signed will be turned over to the Haitian Government immediately after the convention’s ratification. The rate of exchange of bank circulation being five to one, the delivery of these notes will constitute the loan of $100,000 by the Bank, mentioned in the dispatch from the State Department [Page 524] to the Chargé d’Affaires. This plan is approved by the Bank which has cabled its New York office for necessary authorization. The Bank in conference with Conard regarding further steps for retirement of Government paper and nickel currency to be promptly undertaken if the above plan is carried into effect. It is believed that the issuing of notes as above planned will satisfy the Government of Haiti since they really object to the loss of prestige resulting from the suppression of these notes. Will also indicate desire the Bank to assist in carrying out contract settling difficulties. There has been no discussion of this matter with the Haitian Government, and if the plan is approved, it is requested that the Chargé d’Affaires be given the authority from Washington to negotiate on that basis in conjunction with’ my representative, Paymaster Conard. No knowledge of the Chargé d’Affaires’ despatch to the State Department was had on preparing this message.