882.515/73: Telegram

The Chargé in Liberia (Hibbard) to the Secretary of State

269. Department’s telegram No. 187, August 3, 8 p.m. I have received a note from the Liberian Secretary of State which says in part

“I wish to advise that the Liberian Treasury accepts the proposal made by the United States Secretary of Treasury to purchase in Monrovia from the Liberian Government British current coin held or accumulated from time to time in the Liberian Treasury or in the Bank of Monrovia, Incorporated and offered for sale to the Secretary of the Treasury of the United States; and that the British coin under reference will be purchased with United States coin by the Secretary of the Treasury of the United States at the rate of $4 for 1 pound provided that the aggregate amount purchased by the Secretary of the Treasury does not exceed 500,000 pounds (2 million United States dollars). Payment for the British coin is to be made in Monrovia with United States coins transported to Monrovia at the expense of the United States Government.

It is to be understood that the stipulation which provides that the obligation shall terminate on June 30, 1943 or is subject to earlier termination by the Secretary of the Treasury is necessitated by the legislation establishing the stabilization fund in the United States under which it is proposed that the contemplated transaction is to be carried out, does not reflect any intention on the part [of] the United States Treasury not to complete the conversion. And it is the Government’s desire that the transaction should go into effect as soon as possible.

Meanwhile, the Liberian Treasury hereby assures the United States Secretary of the Treasury that any British coin sold to the Secretary of the Treasury shall have been acquired by the Liberian Treasury or the Bank of Monrovia Incorporated at the rate of not less than 4 United States dollars for 1 pound and that coins shall be free for export from Liberia.”

For some reason the President wishes a confirmation that the plan is now in operation and I shall be grateful, therefore, if the Department will send me a brief message to this effect in order that I may get him to issue the first executive order declaring American currency legal [Page 437] tender. From conversations with the acting manager of the bank I know that the Treasury Department has been in communication with Firestone regarding the quantity and denominations of coins to be sent out. I strongly urge that no more American bills be sent as the Army has already brought 90,000 dollar bills and 16,000 five-dollar bills which are ample for the country’s needs. The Army has found them unsatisfactory as they are returned in bad condition. The natives cannot hoard them because of damp mold and insect pests and in a country where skin diseases are prevalent they are most unsanitary.

Hibbard