The Secretary of State to the Ambassador in Honduras (Erwin)

No. 1484

The Secretary of State refers to the Embassy’s despatch no. 204 dated July 8, 1943,65 and previous correspondence concerning the circulation of United States currency in Honduras.

The Embassy, of course, is aware that considerable sums of fifty and ten cent pieces have been sent to Honduras from the United [Page 394] States in order to relieve the shortage in Honduras of United States currency in circulation. The Treasury Department has informed the Department that it is now in receipt of an application filed by the Whitney National Bank of New Orleans, Louisiana, on behalf of the Banco de Honduras, Tegucigalpa, for a license to permit the release of approximately $500,000 in fifty cent and ten cent pieces which the Banco de Honduras contemplates sending to the United States. According to the Treasury Department, this application states that the termination of one of the contractor’s projects makes it no longer necessary for this sum to remain in circulation.

This appears to be the first indication of the return to the United States of part of the sums of coins which were sent to Honduras. The Embassy is requested to investigate and report, including an expression of its views, concerning this matter, as well as the adequacy of the present amount of United States currency in circulation.

  1. Not printed.