Office of the Historian

File No. 882.51/703

Minister Curtis to the Secretary of State

[Extracts]
No. 27
American Legation,
Monrovia, June 13, 1916.

Sir: I have the honor to report for the information of the Department in amplification of Legation’s telegram of June 9, that on May 27th ultimo, the Liberian Government, through its chosen representatives, gave notice to the National City Bank, New York, of its proposal to temporarily suspend payment on interest and sinking fund of the refunding loan of 1912, and that subsequently information thereof was conveyed to me through a note from the Secretary of State of the Republic, enclosing copies of said notice and of a letter to the General Receiver of Customs from the Liberian Secretary of the Treasury on the subject of said suspension.

That, pursuant to cabled instructions from the Department received the 6th instant, I immediately made verbal requests of the Liberian Secretary of State and General Receiver of Customs for facts within the knowledge of each, touching the occasion for said proposed suspension.

That by way of response to my said requests, the Liberian Secretary of the Treasury and the General Receiver of Customs, each furnished me with a memorandum, dated June 8th, setting out facts and figures tending to show justification for the said proposed suspension of the payment of interest.

I trust that the facts presented will adequately apprise the Department of the financial condition in which the Liberian Government finds itself, as well as afford it every opportunity to intelligently determine whether, in the circumstances, the reasons assigned by the Liberian Government for its said proposed action are sound or otherwise.

Perhaps it is due the Liberian Government to say in this connection that the King’s proclamation, dated April 26, ult., “Prohibiting the exportation of all articles to Liberia,” which was promulgated here about the time the notice of said proposed suspension of payment of interest was cabled to America, fell like a pall upon the populace here, officials and civilians alike, and many express the fear that suffering for the want of actual necessities of life is sure to follow in the wake of its enforcement.

Whether this gloomy foreboding is justifiable or not, the fact remains that the effect of the promulgation of said proclamation on the minds of the officials of the Government has been to convince them, that whereas heretofore, by foregoing the payment of a large proportion of their salaries, and by retrenchment in every Department of the public service, the Government has managed with great difficulty to meet its obligations in connection with its said refunding loan, that now added to its other load of difficulties, the said proclamation and its inevitable aftermath will prove the proverbial last straw.

I have [etc.]

James L. Curtis
[Page 460]
[Inclosure]

The Secretary of the Treasury to Minister Curtis

The Treasury Department,
Monrovia, June 8, 1916.

Dear Mr. Minister: I enclose herein a memorandum on the suspension of the payment of interest and sinking fund of the Liberian Refunding Loan of 1912, which, it is hoped, will serve the desired purpose.

Placing myself always at your service for any other information you may require,

I have [etc.]

Jas. F. Cooper
[Subinclosure]

[Untitled]

The Treasury Department,
Monrovia, June 8, 1916.

memorandum

Notice to suspend the payment of interest and sinking fund of the Refunding Loan of 1912, beginning July 1, 1916, transmitted on May 27, 1916, by cablegram to the National City Bank, fiscal agents of this Government, New York, is based upon the following facts and figures:

Customs receipts.

July 1, to Sept. 30, 1915 $85,896.47
Oct. 1, to Dec. 31, 1915 54,723.37
Jan. 1. to March 31, 1916 49,907.65
April 1916 $10,428.70
May 1916 reported 12,902.22
23,330.92
213,858.41
Add May collections for Cape Palmas not reported about $4 000
June 1916 estimated 10,000 14,000.00
227,858.41

Accepting this total as a correct estimate (which is hardly safe to do under present conditions) of the assigned revenues for the fiscal year 1916, the Receivership’s disbursements estimated under the “Emergency Mode of Procedure Act” at $239,000.00 will not be covered.

Internal revenues

Ordinary receipts “E. R. funds” Total
July 1 to Sept. 30, 1915 $6,837.70 $10,999.78 $17,837.48
Oct. 1 to Dec. 31, 1915 2,539.97 5,915.70 8,455.67
Jan. 1 to March 31, 1916 1,275.97 8,200.84 9,476.81
April and May 1,415.22 3,590.65 5,005.87
12,068.86 28,706.97 40,775.83
Add June estimates 1916 500.00 1,000.00 1,500.00
12,568.86 29,706.97 42,275.83

Accepting these figures as a basis it will be seen that the estimated disbursements by the Treasury for the Fiscal Year 1916, cannot be met.

Estimated revenues for the fiscal year 1916 from all sources:

Customs receipts (assigned revenues) $227,858.41
Internal revenue receipts 42,275.83
Total receipts 270,134.24

[Page 461]

Estimated disbursements for the same period

By General Receiver:

Receivership’s charges including interest $239,000.00.
Receivership’s charges excluding interest $137,278.40
By the Treasury Department 127,483.98
264,762.38

From the above it is evident that the Government cannot continue the payments of interest and maintain itself. The Government, however, is agreeable to the allocation of all amounts accruing as residue, after the disbursements as estimated have been met, for payments against interest and sinking fund.

Respectfully submitted.

Jas. F. Cooper