Foreign Relations of the United States Diplomatic Papers, 1938, The American Republics, Volume V

819.51/956: Telegram

The Chargé in Panama (Flexer) to the Secretary of State

Panama, October 25, 1938—9 a.m.
[Received 12:10 p.m.]

112. Referring to the Legation’s telegram No. 111, October 24, 9 p.m.,¹⁵ following passage of guarantee bond and banking bill¹⁶ yesterday afternoon, the committee approved in first reading a bill extending effect of mortgage moratorium law (law number 13, October 15, 1934¹⁷ as extended by law No. 6, January 19, 1937¹⁸ until December 31, 1940 [1938]. The Secretary of the Treasury supported bill with argument that such extension is required to meet the contingency of the banks’ withdrawal.

With reference to the applicability of the law to deposits in institutions in Canal Zone and Panamanian jurisdiction of employees of the Panama Canal, the Panama Railroad and other United States Government agencies resident in the Canal Zone or in the Republic, the Governor of the Panama Canal states that he is being besieged by inquiries and desires that the Legation obtain an official statement from the President of the Republic. Please instruct.

Flexer

15. Not printed.
16. Law No. 28, approved October 25, 1938, Gaceta Oficial, October 28, 1938; Panama, Leyes Expedidas por la Asamblea Nacional de Panama, 1938 (Panama, 1939), pp. 137–141.
17. Gaceta Oficial, October 16, 1934; Panama, Leyes Expedidas por la Asamblea Nacional de Panama, 1934–35 (Panama, 1935), pp. 19–23.
18. Gaceta Oficial, January 25, 1937; Panama, Leyes Expedidas por la Asamblea Nacional de Panama, 1936–37 (Panama, 1938), p. 193.