832.00 Revolutions/127: Telegram
The Consul at Porto Alegre (Nasmith) to the Secretary of State
[Received October 22—12:21 a.m.]
Referring to my telegram of October 17, 4 p.m., regarding payments for requisitions, these will be paid by state treasury notes of Rio Grande do Sul to be recalled in 6 months and which can be used at once in payment of all Federal, state and municipal taxes including customs duties, also in payment wages and in purchase raw materials and foodstuffs. All requisitions American property will be paid by these notes.8 This should be very beneficial to American companies having requisitions. I have been to see Secretary of the Interior and Secretary of the Treasury several times about this and the present solution of the matter is due mostly to my efforts. Total amount 20,000 contos of these treasury notes will be issued having as guarantee like amount of mortgage bonds of State Bank of Rio Grande do Sul to be deposited in state treasury but not all of this issue will be used for requisitions. This measure will facilitate very much all commercial transactions.
- In telegram of October 22, 3 p.m., the Consul added that “treasury notes bear seven and a half interest.”↩