817.51/1850a: Telegram

The Secretary of State to the Chargé in Nicaragua ( Munro )

181. The bankers called at Department yesterday. They decline to give up their half of the surplus revenues but are now studying the matter of granting an open credit to Nicaragua for $150,000 on January first and up to $225,000 on July first if a loan has not been concluded by that time, $300,000 of this to be used for constabulary and $75,000 for electoral expenses if needed. Bankers think this advance could be secured by second lien on same revenues hypothecated for million dollar loan and thus not tie up any new source of revenue. When the loan is issued it will take up these credits as well as the million dollar loan.

Kellogg