823.51/184
The Ambassador in Peru ( Gonzales ) to the Secretary of State
[Received July 20.]
Sir: Referring to my dispatch No. 639, of June 14th, relating [to] the efforts of the Peruvian Government to obtain a Centennial loan, I have the honor to report that no loan was obtained from the Anglo-South American Bank. Whether the time was too short, or what other obstacle appeared, I am not informed.
The President then ordered the conversion into sterling of the twelve millions gold reserve deposit in New York. The National City Bank, where the deposit rests, applied for the privilege of making the conversion. It would not bid for the entire amount, but proposed to convert, as opportunity offered. One million was converted by the National City Bank at the rate of 3.76½. The Bank of England then offered to take all the dollars at the rate of 3.75 sterling, and the President gave it the business.
The paper profit to Peru of something like six hundred thousand pounds resulting from this transaction, belongs to the Committee of Vigilencia, as gold guarantee for the circulation issued. This money was then loaned the Government by the Committee, on the guarantee of the tax receipts from the sale of guano.
So in this round about way the Government has secured the funds needed for the expenses of the moment.
I have [etc.]