882.515/69: Telegram
The Secretary of State to the Chargé in Liberia (Hibbard)
174. Your 213, June 25. The Treasury Department has agreed that assurances may be given to the Liberian Government to the effect that, as British silver coin accumulates in the Liberian Treasury or in the Bank of Monrovia in quantities beyond the financial capacity of that Government to hold, arrangements will be made from time to time to convert such accumulations of coins either into sterling balances, or into dollars at a rate of 4 dollars per pound sterling, in accordance with the needs of the Liberian Government. However, the Treasury Department considers it essential that the Liberian Government indicate the total amount of British coin to which these assurances will relate, since the Treasury does not wish to obligate itself to purchase British coin which under certain circumstances might flow into Liberia from other parts of Africa for conversion into dollars at the fixed rate. Treasury also states that it would be desirable to be assured by the Liberian Government that neither the Liberian Treasury nor the Bank of Monrovia would profit at any time from the conversion of British coin into dollars.
As to the procedure to be followed in implementing the guarantee to the Liberian Government, Treasury plans to have the Stabilization Fund from time to time purchase the accumulation of British coins in Liberia.
Please bring the foregoing to the attention of the Liberian Government and endeavor to obtain from it an indication of the total amount of British coin to which our assurances would relate.
The decision as regards declaring American currency legal tender would seem to be one for the Liberian Government to make in the light of the Treasury assurances above mentioned.