822.51/272: Telegram

The Minister in Ecuador (Hartman) to the Secretary of State

On October 20th a bill was introduced in Congress authorizing the Executive to contract for a loan in the exterior of $50,000,000 at not exceeding 6 percent interest per annum, 1 percent for amortization, and a discount not exceeding 15 percent for placing loan. Proceeds to be used in constructing railroads, canalization and sanitation of Guayaquil, service of interest and amortization of amount due holders of bonds of Guayaquil and Quito Railway and one half due to the national banks. It is probable that Congress will pass bill. Proposal cabled by the Ecuadorean Consul General New York and is understood to be made by American bankers.