The Chargé in Liberia (Bundy) to the Acting Secretary of State

No. 340

Sir: I have the honor to transmit herewith copies of a communication and its enclosure received by the Legation from the Acting Secretary of State of Liberia.24 The enclosure is a copy of a Memorandum which the Secretary of the Treasury presented to the President of Liberia relative to the present financial situation of the Republic. From the Memorandum it will be observed among other things:

That the Secretary of the Treasury anticipates that the limit of the $100,000.00 credit the Government has with the Bank of British West Africa Limited will be reached about the first of August and thereafter the Republic will have insufficient funds at its disposal for necessary expenses as under the existing Agreement with the Bank no further advances will be made when limit of credit is reached.
That the Republic, to meet running expenses, will have to make another agreement with the Bank or resort to makeshifts, neither of which is desirable.
That the Republic would like to utilize enough of the $5,000,000.00 credit established in its favor in the United States Treasury to pay its indebtedness to the Bank of British West Africa and to pay all Government employees full salary until revenues return to normal.
That in addition to the use of the loan credit for the purposes outlined in paragraph 3 above the Republic desires also to use it to pay a portion of the internal debt to afford relief from privations and sacrifice caused by the war.

Undoubtedly the financial affairs of the Republic are again rapidly approaching a condition which will make it necessary for something to be done, and the Memorandum is respectfully forwarded for the consideration of the Department.

If it should seem advisable this matter may be taken up with the Department by cable before the arrival of this despatch.

I have [etc.]

Richard C. Bundy
  1. Neither printed.