The undersigned bankers, merchants, and representatives of the various branches of the financial and commercial activities in Haiti have the honor to submit to the high appreciation of the Secretary of State for Finance the following consideration:

They have been advised from certain sources that pressing recommendations have been made to the Government of Haiti.

1. That a law be immediately voted by which would be prohibited the importation or exportation of all money not Haitian, except that quantity of foreign money which, in the opinion of the Financial Adviser, would be sufficient for the needs of commerce.

2. That in the charter of the Banque Nationale de la Republique d'Haiti there be inserted an article giving power to the Financial Adviser together with the Banque Nationale de la Republique d'Haiti to take all measures concerning the importation or exportation of non-Haitian monies.

The undersigned declare that the adoption of such a measure, under whatever form it may be, would be of a nature generally contrary to the collective interests of the Haitian people and the industry of Haiti. It would be dangerous to substitute the will of a single man, however eminent he might be, however honorable, however infallible, for a natural law which regulates the movements of the monetary circulation in a country.

It would be more dangerous yet to introduce in the contract of the Banque Nationale de la Republique d'Haiti a clause which would assure this establishment a sort of monopoly in the foreign money market, which constitutes the principal base of the operations of high commerce, when it has already the exclusive privilege of emission of bank notes. Such a clause would make of all other bankers and merchants its humble tributaries, obeying its law and its caprices....

(Signed) The Royal Bank of Canada; American Foreign Banking Corporation; Haitian American Sugar Co.; Raporel S.S. Line; P. C. S.; Electric Light Co.; Panama Line; Ed. Esteve & Co.; Clyde Line; Comptoir Commercial; Gebara & Co.; Alfred Vieux; V. G. Makhlouf; N. Silvera; Simmonds Freres; Roberts, Dutton & Co.; West Indies Trading Co.; J. Fadoul & Co.; R. Brouard; A. de Matteis & Co.; J. M. Richardson & Co.; Comptoir Francais; H. Dereix; E. Robelin; F. Cheriez; I. J. Bigio, and Geo. H. MacFadden.

"By Order of the American Minister"

CORRESPONDENCE regarding the refusal of the Financial Adviser of Haiti, an American, but an official of the Haitian Department of Finance, to pay the salaries for the month of July, 1920, of the President and certain other officials of the Haitian Republic, revealing that the action was taken by order of the American Minister to Haiti, without explanation and without authority in the Haitian Constitution or in the Haiti-American Convention, was printed in the Moniteur for August 14.

I.

Port-au-Prince, August 2, 1920.

Mr. A. J. Maumus, Receiver General of Customs

In accordance with the suggestion made to the Financial Adviser on July 24, your office began on the morning of July 30 to pay the salaries for that month to the officials and public employees at Port-au-Prince.

Nevertheless up to this morning, August 2, no checks have been delivered to His Excellency the President of the Republic, the secretaries of the various departments, the state councilors, and the palace interpreter.

In calling your attention to this fact I ask that you will please inform me of the reasons for it.

Fleury Fequiere, Secretary of Finance.

II.

Port-au-Prince, August 2, 1920.

To the Secretary of Finance and Commerce

I have the honor to acknowledge the receipt of your note of August 2 in which you ask this office to inform you regarding the reasons for the non-delivery, up to the present time, of the checks for His Excellency the President of the Republic, for the departmental secretaries, the state councilors, and the palace interpreter, for the month of July.

In reply this office hastens to inform you that up to the present time it has not been put in possession of the mandates and orders regarding these payments.

A. J. Maumus, Receiver General.

III.

Port-au-Prince, August 2, 1920.

To the Financial Adviser

The Department of Finance, informed that checks for His Excellency the President of the Republic, the departmental secretaries, the state councilors, and the palace interpreter had not been delivered up to this morning, August 2, reported the fact to the Receiver General of Customs asking to be informed regarding the reasons. The Receiver General replied immediately that the delay was due to his failure to receive the necessary mandates and orders. But these papers were sent to you by the Department of Finance on July 21, and were returned by the payment service of the Department of the Interior on July 26, a week ago.

I inclose copies of the note from the Department of Finance to the Receiver General, and of Mr. Maumus's reply.

I should like to believe that bringing this matter to your attention would be sufficient to remedy it.

Fleury Fequiere, Secretary of Finance.

IV.

Port-au-Prince, August 5, 1920.

To the Secretary of Finance and Commerce

I have the honor to acknowledge the receipt of your note of August 2, regarding the delay in payment of the salaries of the President of the Republic, secretaries, and state councilors.

In reply I have the honor to inform you that the payment of these salaries has been suspended by order of the American Minister until further orders are received from him.

J. McIlhenny, Financial Adviser.

V.

Port-au-Prince, August 10, 1920.

To the Financial Adviser

I acknowledge receipt of your note of August 5 in reply to mine of August 2 asking information regarding the reasons for your non-payment of the salaries for last July due to His Excellency the President of the Republic, the secretaries, and state councilors, and the palace interpreter.

I note the second paragraph of your letter, in which you say, "In reply, etc."

I do not know by what authority the American Minister can have given you such instructions or by what authority you acquiesced. The non-payment of the salaries due the members of the Government constitutes a confiscation vexatious for them and for the entire country. It is not the function of this department to judge the motives which led the American Minister to take so exceptionally serious a step; but it is the opinion of the Government that the Financial Adviser, a Haitian official, was not authorized to acquiesce.

Fleury Fequiere, Secretary of Finance.

VI.

Port-au-Prince, August 5, 1920.

Mr. A. Bailly-Blanchard, American Minister

I have the honor to inform Your Excellency that the offices of the Financial Adviser and of the Receiver General have not yet delivered the checks for the July salaries of His Excellency the President of the Republic, of the secretaries, state councilors, and palace interpreter, although all other officials were paid on July 30.

The Secretary of Finance wrote to the Receiver General asking information on the subject, and was informed that he had not received the necessary mandates and orders. The fact of the non-delivery of the checks and the reply of the Receiver General were then brought to the attention of the Financial Adviser, who has not yet replied.

In informing your Legation of this situation, I call the attention of Your Excellency to this new attitude of the Financial Adviser, a Haitian official, to the President of the Republic and the other members of the Government, an attitude which is an insult to the entire nation.

J. Barau, Secretary of Foreign Affairs.

VII.

Port-au-Prince, August 6, 1920.

Mr. A. Bailly-Blanchard, American Minister

I have the honor to inclose a copy of a note from the Financial Adviser to the Secretary of Finance, replying to a request for information regarding the non-payment of checks....

In his reply the Financial Adviser informs the Department of Finance that "the payment of these salaries has been suspended by order of the American Minister until further orders are received from him."

My Government protests against this act of violence which is an attack upon the dignity of the people and Government of Haiti.

J. Barau, Secretary of Foreign Affairs.

VIII.

Port-au-Prince, August 6, 1920.

Mr. J. Barau, Secretary of Foreign Affairs

I have the honor to acknowledge the receipt of Your Excellency's note under date of August 5.

In reply I have to state that the action of the Financial Adviser therein referred to was taken by direction of this Legation.

A. Bailly-Blanchard, American Minister.

IX.

Port-au-Prince, August 7, 1920.

Mr. A. Bailly-Blanchard, American Minister

In reply to my letter of August 5 in which I had the honor to inform Your Excellency of the non-payment of checks, ... Your Excellency informs me that it is by direction of the Legation of the United States that the Financial Adviser acted.

My Government takes note of your declaration.

J. Barau, Secretary of Foreign Affairs.

The Concession of the National City Bank

SIMULTANEOUSLY with the non-payment of the July salaries of the President and other officials of the Haitian Republic, the Haitian Minister of Finance received from the Financial Adviser, an American, nominally a Haitian official, but acting under instructions from the American Government, the following letter urging immediate ratification of a modified form of agreement between the United States Department of State and the National City Bank of New York. It was widely assumed in Haiti that this letter supplied the key to the unexplained non-payment of salaries, ordered by Mr. A. Bailly-Blanchard, the American Minister. The letter was printed in the Moniteur for August 14.

Port-au-Prince, August 2, 1920

To the Secretary of Finance

I have the honor to inform you that I have been instructed by my Government that in view of the continual delay in obtaining the consent of the Haitian Government to the transfer to the new bank of the modified concession as agreed upon between the Government of the United States and the National City Bank, the Government of the United States has agreed to let the operations of the National Bank of the Republic of Haiti continue indefinitely on the French contract at present existing, without amendment.

I desire urgently to draw your attention to the fact that it would be most desirable in the interest of the Haitian people that the Government of Haiti should give its immediate consent to the proposed modifications of the contract and to accept the transfer of the bank rather than see the present contract continue with its present clauses.

John McIlhenny, Financial Adviser