816.51/72: Telegram

The Minister in Salvador ( Schuyler ) to the Secretary of State

36. Unless this country obtains a loan in the United States before September I believe Government will fall. Financial crisis rapidly approaching. Army and officeholders have not received any pay for about 6 months. $2,000,000 needed at once. Country perfectly able to incur loan of $10,000,000 if revenues honestly collected and disbursed.

I should not approve any loan without absolute control of the customs receipts and supervision of all payments from the loan and do not believe in the dual control stipulated in Keilhauer option.

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The Government is in such straits that it will now accept any terms. The President will call a special session of Congress any day to approve loan. He begs me to help in getting loan and asks bankers to recommend terms. …