File No. 838.51/511

The Secretary of the Navy to Admiral Caperton


You are authorized, with the concurrence of the Haitian authorities, to apply five hundred thousand dollars of surplus revenue of Haiti now held by you on a per cent basis to the purposes for which the revenue had been lawfully pledged by the Government of Haiti prior to July 27, 1915; statement furnished by the National Bank of Haiti shows the amount which should have been applied to each [Page 352] purpose during period of American occupancy and proration should be made on basis of these figures; as payments have been made under your direction for some objects to which revenues were pledged, such payments should be deducted from the pro rata share now available for these objects and in cases where actual payments have exceeded the pro rata share nothing should be paid at this time. It is believed that March 1 would serve as convenient for prorating these payments. This distribution is being authorized at present time more to relieve financial stringency than to settle outstanding claims against Haitian Government, and with this object in view the money should be placed in circulation in Haiti with least possible delay. Should it be impossible to purchase in Haiti sufficient drafts on Paris or Le Havre promptly to remit money for service of foreign loans arrange to have manager of bank undertake purchase drafts on New York and have money transmitted to France through New York agent of the bank. It was stated in Department’s 10130, December, National Bank of Haiti probably only source from which an immediate unsecured advancement could be obtained and it would seem no steps looking towards securing such a loan should be taken prior to settlement of controversy between bank and Haitian Government which is now subject negotiations with Haitian Commission. Assessment of loan and other financial matters mentioned in your 21413 should await appointment of Financial Adviser which will be made as soon as possible. Trade adviser of State Department states it would seem that the present high price on logwood will probably be maintained until dyes can be obtained from Germany. If method of prorating not thoroughly understood further instructions will be given. 15015.

Josephus Daniels