The Acting Secretary of State to the Minister in Haiti (Bailly-Blanchard)
The Department has been informed that you have requested the National Bank of Haiti to issue a certain amount of gourdes. Farnham49 called at the Department to discuss this matter and he does not feel that your request of the National Bank of Haiti can be granted under the present circumstances. The Department infers from conversation with Farnham that the National City Bank would not feel warranted further to assist the National Bank of Haiti either by a loan of money or in respect to the issuance of the desired bank notes unless the National Bank of Haiti and the Government of Haiti arrive at a satisfactory solution of the questions in dispute between them. Farnham clearly stated that the only satisfactory conclusion in the above regard would be a statement in writing signed by the Financial Adviser and the Haitian Minister of Finance of the indebtedness of the Haitian Government to the National Bank of Haiti as of September 1915 with an interest rate of 6 per cent.
Farnham seemed hopeful that if the Haitian Government would express its acquiescence in the above solution the National Bank of Haiti would agree to extending the payment of this indebtedness over a period of four years, instalments to be paid annually, semiannually, or quarterly at the option of the Haitian Government and with the right in that Government to liquidate the entire amount of the indebtedness at any time.
Farnham is cabling Scarpa50 that he has forwarded the above request for note issue to Paris for decision and that as far as the National City Bank is concerned it cannot assist in this regard and that the matter has been brought to the attention of the Department which has taken it under advisement.
In view of the present financial condition of the Haitian Government and the very urgent need for the solution of its financial difficulties the Department cannot but express its opinion of the great necessity for a prompt solution thereof, despite the fact that the terms of such solution may not be those most desired. The Department considers that the above opinion includes not only the questions pending between the Haitian Government and the Bank but also the larger matter of the Haitian loan.