Thomas Biddle to Hamilton Fish, November 11, 1872
No. 340. Mr. Biddle to Mr. Fish.
No. 87.]
Sir: I have the honor to transmit to yon herewith a copy and translation of an “exposition” addressed to the National Constituent Congress by the ministry of the government of Salvador, reviewing the policy of the administration, and submitting for its sanction the late war-measures of the President, at variance with the letter of the constitution of 1871.
I also append the resolution of the convention approving the entire course of President Gonzalez, as stated in the aforesaid memorial.
A project has been presented to the nation from the convention for the formation of a bank, of which I annex a copy and translation. The late revolutions and foreign wars have embarrassed the finances of the state and commercial prosperity, and the creation of a bank separate from the government, with securities from abroad, for hypothecations, loans, discounts, and circulation, is thus suggested as a safe basis for monetary transactions. I also annex a copy of a decree of the President of the republic, consonantly to the above resolution of the convention, dated the 4th instant, in which he prescribes the establishment of a bank as aforesaid, with stipulations as authorized by the Congress. The fourteenth article thereof establishes The Bank for Hypothecation of Real Estate of Salvador so soon as the subscription for a moiety of its stock is completed, and agencies are to be established in all the departments of the republic, to be organized according to the regulations.
Also, an agency is to be at once placed in London, to represent the bank in its relations and operations with foreign stockholders and with other persons or establishments. The office to be performed by three employés, one to be named by the foreign shareholders, another by the national shareholders, and the last by the government. If the directory of the bank shall deem it convenient hereafter to establish other agencies in other foreign places, it may do so, the government approving, and with the same terms as for that at London.
I have, &c.,