File No. 882.51/749

The Acting Secretary of State to Minister Curtis


As fiscal agent of Liberia, National City Bank of New York holds approximately $142,000 par of original authorized issue of bonds as reserve against certain claims against Liberia. These claims no longer existent, and therefore Bank thinks no longer necessity for continuance this reserve on such account.

Shortly after assuming duties as General Receiver, Mr. Worley made request for turning over portion this reserve for purpose of public works in Liberia. Bank replied February 7, 1917 that under sixth section of Refunding Loan Agreement they are authorized to certify and deliver any unissued bonds upon order of Liberian Secretary Treasury countersigned by General Receiver of Customs on payment to Bank of gross proceeds of sale thereof and that agreement provides such proceeds shall be held by Bank and paid solely to reimburse Liberia for expenditures made by it for public improvements of a character and to an amount approved by General Receiver and Receivers or majority of them. The Bank added they had no facilities for sale these bonds and could not undertake to market them and that would be improper for Bank to do so then in view of probable default in the next semiannual interest payment.

In furnishing this information to Department Bank stated that even if desired to put at disposition Liberia reserve now in custody of Bank, it will be necessary first to market the bonds constituting the reserve and that it is very doubtful under existing financial conditions whether any sale of the bonds can be arranged.

In view of this statement ascertain whether Liberian Government still wants the bonds put on the market. Obtain also views of Receiver General.