File No. 812.516/137
The French Ambassador to the Secretary of State
Washington, September 18, 1916.
Mr. Secretary of State: As forecast in the communication which I had the honor to address to your excellency on the 11th of this month, it appears from reports that have recently reached the Government of the Republic that the Bank of London and Mexico and the National Bank have been compelled by the Carranza Government to pay back to the National Pawnbroking Institution a sum of $200,000 each of their notes, in coin and for the face value of the notes.
Owing to the condition of the Mexican pawnbroking offices which, as it seems, are unable for the lack of coined money to carry on their loan operations, the National Bank had offered to open to them a long term credit in the sum that was demanded, with the notes themselves for security.
In spite of this exceptional offer which bore witness to the Bank’s good will toward charitable institutions and in spite of the pressing [Page 641] representations made to him by the Minister of France, the de facto President categorically refused to entertain those views and the answer he caused to be returned was that his decision was final. He added however that the case was not to establish a precedent.
In directing me to bring this authoritative act of Mr. Carranza to your excellency’s knowledge, the Government of the Republic expresses a wish that it be made known to the United States delegates to the New London conference so that they may impress upon the Mexican Minister of Finance the great injury, not to say more, such proceedings are likely to work to the credit of his country.
Be pleased [etc.]