Mr. Combs to Mr.
Hay.
American Legation,
Guatemala and
Honduras,
January 11,
1904.
No. 131.]Sir: I have the honor to inclose herewith a
copy with translation appended of the decree No. 639 issued by the
President of Guatemala in regard to the relative values of the national
currency.
It excited much discussion and uneasiness. A number of Americans called
upon me requesting that I join the other diplomatic representatives here
in a remonstrance to the Government.
Friday afternoon, on the 8th instant, Mr. Thornton, the British minister,
called and asked me to join him in representations to this
Government.
I stated to our citizens and to Mr. Thornton I thought present action
premature; that this Government had the unquestionable right to regulate
the relations its own circulating mediums should bear to each other;
that there was nothing on the face of the decree to which we had a right
to object, no difference what opinion might be of the wisdom of the
proposed course.
Upon reflection, however, I called upon the minister for foreign affairs
Saturday the 9th instant and told him of the existing uneasiness. I
further stated the interpretation I had put upon the decree, but that I
felt unwilling, in view of existing opinion, to sustain the
responsibility of such interpretation unless it was corroborated by the
Government. He promised to consult the author of the decree and sent for
me this Monday morning to assure me the intention of the decree was
exactly what I had thought and an elucidation would be given
semiofficially through the press at once.
In order to definitely confirm these interviews with the minister for
foreign affairs to place on official record the substance of same, I
addressed to him a note, copy of which is herewith inclosed, summarizing
my understanding of his expression on the part of his Government as to
its intentions in reference to the decree referred to.
I have, etc.,
[Page 347]
[Inclosure—Translation.]
Decree published in the “Guatemalteco” (official organ) on
Thursday, January 7, 1904.
Decree No. 639.
Manuel Estrada Cabrera, constitutional President of the Republic of
Guatemala.
Whereas in conformity with decree No. 595, of June 9, 1899, it was
ordered, for the public good, that bank and “Comite Bancario” notes
should be valued at par with the national silver coin;
That, notwithstanding the clearness of said decree, it has not been
faithfully and correctly interpreted, there often occurring doubts
and vacillations which it is necessary to do away with, especially
in connection with settlements effected by the courts when suit is
brought for the payment of any obligation in gold:
Therefore, by virtue of the power vested in me by the National
Legislative Assembly, I decree:
- Art. 1. When any sum in gold is
demanded judicially the debtors can cancel their credits in
silver or bank notes, or of the Comite Bancario, as provided
for in the decree already cited, and at the exchange that
gold has in relation to silver.
- Art. 2. The exchange may be
either that fixed upon by experts, or the current rate at
the banks.
- Art. 3. This decree becomes
effective from the date of its publication.
Given in the executive palace, in
Guatemala, the twenty-second of December, one
thousand nine hundred and three.
Manuel Estrada
C.
The secretary of state, interior, and justice:
[Inclosure 2.]
Mr. Combs to
Señor Barrios.
American Legation,
Guatemala and
Honduras,
January 11,
1904.
Excellency: Since I was not accompanied by
an official interpreter, I have the honor to submit to your
excellency, in way of confirmation, the substance of the two very
satisfactory interviews which I had with your excellency on Saturday
last and yesterday with reference to the decree No. 639.
On Saturday I stated to your excellency I had called to ask to be
informed of the exact purpose of the decree. I added it had caused
me no alarm, as it seemed to be a regulation of the legal tender
value of the different Guatemalan mediums of exchange, a procedure
entirely within governmental rights; but as some were disposed to
put a dangerous interpretation upon its terms, I desired full
information before transmission to my Government. Your excellency
kindly promised to ascertain the exact meaning of the decree and on
Monday informed me I had only done justice to the Government in my
interpretation of its purpose; that it was simply intended to
regulate the legal tender value of Guatemalan gold and that it in no
way affected the settlement of contracts or obligations where the
medium of liquidation was stated in explicit terms as American gold,
whether such settlement was voluntary or by judicial decree; that
the latter contracts and obligations, as formerly, must be paid in
the medium declared on their face.
With renewed, etc.,
