The Chargé in Guatemala ( Thurston ) to the Acting Secretary of State
[Received May 10, 1.30 a.m.]
Referring to the Department’s telegram of May 3, 11 a.m. and my May 4, 3 p.m. Yesterday afternoon President Cabrera informed me that the services of an able and recognized economist, who would thoroughly study the finances of Guatemala and submit to him a sound project of reform, would be gladly received and that a written statement to that effect will be sent to me tomorrow.
I then suggested that it might be advisable to await result of the investigation of this economist before placing an additional issue of paper money into circulation which might have the result of still further complicating the situation.
The President replied that while the urgent necessities of one bank here make it imperative that it be permitted to issue immediately several million pesos and that certain other needs are likewise urgent, only such new money will be issued for the present as is absolutely [Page 276] necessary, and that the total issue during a period of several months probably will not exceed 10,000,000 pesos.