-#> The Loan and its Consequences 



It was decided to negotiate this loan in London. At that 

 period the Liberian Consul-General for Great Britain was an 

 English financial agent named Chinery, who was apparently 

 in touch with certain banking agencies not perhaps of the 

 first rank. Two Liberian commissioners (W. S. Anderson 

 and W. H. Johnson) were directed to proceed to London 

 and negotiate through Chinery a loan of 500,000 dollars 

 (^100,000). An agreement was come to with the firm of 

 bankers introduced by Chinery of a character unfortunate 

 for Liberia. Bonds to the extent of ^100,000 were to 

 be issued against a payment in cash of ^70,000. This loan 

 was to carry interest (on ^100,000) at 7 per cent., and the 

 whole loan — that is to say, ^100,000 — was to be repaid over a 

 term of fifteen years. This would mean that in order to touch 

 _^" 70,000 in money — if the agreement had been carried out to 

 the letter — Liberia was to repay to the lenders at the end of 

 fifteen years a total sum, including the 7 per cent, annual 

 interest, of ^132,600. Of course the indifi^erent security (in 

 the eyes of the lenders) counted for much. The loan was to 

 be guaranteed on the Customs or on some branch of the Customs 

 revenue ; but the lenders alleged that the Customs revenue 

 was collected in a somewhat haphazard fashion, and that 

 there was sometimes an insufficiency of revenue to meet the 

 actual working expenses of Liberia. Also they were aware that 

 if the country repudiated the debt no steps would be taken by 

 the British Government to exact payment. News of the terms 

 of this loan when it reached Monrovia created a lively dis- 

 satisfaction among the citizens. But although a protest was 

 forwarded to Chinery, the matter was further complicated by 

 the absence from Liberia of President Roye, who had gone 

 to England to discuss the long-disputed GaUinhas question. 

 Roye whilst in London seems to have given his approval to the 



259 



