The Secretary of State to Mr. Earl Bailie of J. & W. Seligman & Co.

My Dear Mr. Bailie: Mr. White has reported to me today the conversation which you had with him over the telephone on September twenty-sixth. I write to say that after fully considering the matter with Mr. White I do not wish to urge you to withhold your resignation and that of Mr. Loree as directors of the Bank of Nicaragua.

I regret that you should have felt harassed by the request of the President of Nicaragua for an investigation into the affairs of the bank with a view to its future conduct, but since you do, I can not give you any assurance that such provocation may not recur. It is one of the consequences of occupying a position of responsibility and trust with respect to a financial institution which is owned by a foreign country. Such a position inevitably involves the exercise of much patience and tact.

Very sincerely yours,

Henry L. Stimson