810.00/a / 14

The Minister in Guatemala (Leavell) to the Secretary of State

No. 506

Sir: I have the honor to transmit to the Department, in compliance with its circular mail instruction of May 28th, 1917,5 the following brief report upon Guatemalan affairs:

. . . . . . .

(2) The National Legislative Assembly, as a result of the discussion of a foreign loan, issued a decree (attached hereto, together with translation) authorizing the establishment of a National Bank in Guatemala City. Article four of this decree might be interpreted as authorization to open negotiations for a foreign loan.

. . . . . . .

I have [etc.]

Wm. Hayne Leavell

Legislative Decree No. 974, of April 12, 1918, Authorizing the Establishment of a National Bank

  • Article One: A privileged National Bank shall be established at the Capital of the Republic.
  • Article Two: Said Bank shall have the following objects:
    Develop agricultural credit.
    Grant facilities for the reconstruction of the Capital and other towns damaged by the earthquakes, and,
    Cooperate in the arranging of the other economic necessities of the Republic.
  • Article Three: The Bank shall be constituted with the capital which it will obtain from the Government, and from the national and foreign capitalists through the shares they purchase (subscribe to).
  • Article Four: The Executive is authorized to conduct here and abroad the necessary financial operations, and to dictate such orders as may be conducive to the accomplishment of this Law.

[Here follow the legislative and executive approvals.]

  1. Not printed.