File No. 838.51/434.
The National Bank of the Republic of Haiti to Mr. Long.
Dear Mr. Long: Allow me to resume the conversations we have had about the present condition of things in Haiti in regard to coffee exports.
Out of the customs receipts, the American authorities turn over $25,000 a week to the Government of Haiti; in addition payments are still made out of the same receipts for the national palace, the street contract, electricity. Mr. Conrad would prefer to have the surplus used in purchasing checks on New York and that the money remitted in New York be used, if deemed necessary by the Department of State, in paying the foreign debt annuities. Our manager explained to him that most of our exporters could not draw on New York, that they had to draw on the consignees of their coffee. Besides Mr. Conrad’s wish is met by the $151,000 advanced by the Bank to New York. Assuming that the exporter does draw on New York bankers for the account of European firms, the bankers would have to draw on those European firms to protect themselves, and complicated operations and much expense would be the result. As I have already told you, if we could have at our disposal a certain amount with which to meet the interest on the foreign loans, in whole or in part, it would be easy to finance the crops and it would help to improve the rate of exchange on the United States.
The surplus should be considerably larger this month; imports and exports should yield more than in October and the figure would be still larger if by buying drafts for the service of the foreign debt, the bank could help coffee shipments which would bring about correspondingly increased importations. Furthermore the credit of Haiti abroad is injuriously affected by this condition of things since, owing to the non-payment of the interest on the 1910 loan on November 15, a further fall of Haitian securities in the Paris exchange may be expected, which fall will be more marked if remittances for the 1875 and 1896 loans, whose coupons are due at the close of the year, are not made in good time.
Under the circumstances it would seem necessary to authorize Admiral Caperton to let the Bank remit the proceeds of the revenues pledged to foreign loans.
Accept [etc.]