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United States Department of State / Papers relating to the foreign relations of the United States, 1920
(1920)

Liberia,   pp. 49-128 PDF (28.0 MB)


Page 50

FOREIGN RELATIONS, 19 2 0, VOLUME III
882.51/1051
The National City Bank to, the Secretary of State
NEW YORK, Jan'uiary 22, 1920.
[Received January 23.]
SIR: We acknowledge receipt of your letter of January 21st 4
referring to a conversation which recently we had with Mr. Scully
of the Division of Western European Affairs, relative to the National
City Bank of New York acting as Fiscal Agent in the United States
for the Republic of Liberia, and requesting us now to advise you
whether it is agreeable to us to act in such capacity and on what
terms such representation will be assumed.
In reply we would say that it will give us pleasure to undertake
the duties of Fiscal Agent in the United States for the Republic
of Liberia. It is our understanding that in such capacity we will
have deposited with us funds which the United States contemplates
advancing to the Republic of Liberia under the arrangement of Sep-
tember 1918, and that from time to time we shall make, for the Li-
berian Government, disbursements therefrom. On the balance main-
tained with us under this arrangement we will allow interest at the
rate of 21/2 per cent per annum. We understood from Mr. Scully
that all disbursements would only be made with the approval of
some official of the State or Treasury Department acting for the
United States. On this point we would like to be clearly advised.
You are aware, we assume, that the National City Bank of New
York was constituted as Fiscal Agent for the Republic of Liberia
in 1912 in connection with the Loan Agreement of that period and
since that time has attended to the receipt and disbursement of funds
for account of coupon and Sinking Fund payments on the bonds
issued under the Loan Agreement of 1912. For this service we
have made a charge of one half of one per cent on the amounts
received less commissions paid to foreign bankers for paying cou-
pons at their respective points, and we assume that this arrangement
will continue until the said funds are retired.
We wish to express, Mr. Secretary, our appreciation of your letter
of the 21st inst. and await your further instructions in the matter.
Respectfully,
THE NATIONAL CITy BANK OF NEW YORK
By R. L. FARNHAM, Vice President
4Not printed.
50


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