422.11 G 93/1162: Telegram

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

7. Department’s no. 2, February 14, 7 p.m. Daily deposits resumed with large amounts February 7th. Total amount on deposit February 15th account interest railway bonds 763,500 sucres; salt certificates 145,318 sucres.

[Page 885]

The President and Minister of Hacienda are in Guayaquil endeavoring to solve the critical financial problems of the Government and those of the Association of Agriculturalists growing out of the cacao [taxes],16 They are expected to arrive Quito within a few days. Upon the return of the President I will call upon him with a view to ascertain the results of his efforts in Guayaquil and report to the Department.

I had an interview with the Minister for Foreign Affairs yesterday afternoon on the subject but he had not learned of the temporary suspension of daily deposits. He stated that it is the policy of President to continue daily deposits in spite of the present critical financial condition of the Government and remit as soon as British exchange can be bought at a reasonable figure.

I am expecting full information from Mr. Lindberg17 regarding the negotiations now in progress looking toward the adjustment of the present financial difficulties, and upon its receipt I will report to the Department.

  1. For papers regarding efforts to liquidate the debts of the Cacao Growers Association, see pp. 896 ff.
  2. Mr. A. F. Lindberg, assistant manager of the Mercantile Bank of the Americas, and representing the Mercantile Bank and the banking firm of Brown Bros.