839.51/2190
The Minister in the Dominican Republic (Russell) to the Secretary of State
[Received May 25.]
Sir: With reference to my Nos. 650 of January 9,41 and 655 of February 4,42 I have the honor to report that the financial crisis referred to has become very serious. For the month of April there was a deficit of $400,000. The Military Governor has been compelled to reduce employés by over 60%, in all of the Departments. This reduction is not made by discharging the employés, but by giving them leave of absence for twenty days in each month without pay.
It is expected that there will be considerable increase in the revenues for June and July, but it is difficult to see how collections can amount to anything like what they were for the corresponding months of 1920, given the present world wide financial depression. There is no market for the principal products, sugar, cacao, coffee, tobacco and honey, and these products are not being exported. The embargo on textile goods will be lifted on June 30, but relief, if any, from this will not be felt at once, as goods ordered in July could not reach here before November.
I am enclosing herewith a statement of receipts for 1920, and for the four months of 1921, including April, and it is almost sure that the receipts for this month will fall below those for last month.
The press criticism on this financial crisis is very bitter, and the administration is getting all the blame therefor.
I have [etc.]