138 REPORT OF THE HARVARD AFRICAN EXPEDITION 
favorable report of the Committee of Finance upon it, the bill for the loan failed 
to pass the Senate. Apparently some senators feared that the loan would prove 
profitable to banks which had purchased depreciated bonds that under the new 
arrangement would be redeemed at par. 
Although the failure of this loan was a great blow to Liberian interests, 
nevertheless, owing to the planting agreements between Mr. Firestone and 
the Government in 1925, the financial condition of Liberia began to improve. 
However, it was quite clear to the Liberian Government that, if any favorable 
economic development of importance in the country was to occur, additional 
foreign capital was necessary. Indeed, the necessity for an additional loan 
was apparent to all who were well informed on Liberian conditions. At the 
time when the Liberian Government was still seeking such a loan, the Firestone 
rubber concessions and agreements were pending, and because of this prospect 
of real economic development in the country, the Liberian Government succeeded 
in obtaining a loan providing eventually for a credit of five million dollars 
to be extended to Liberia by the Finance Corporation of America, with the 
National City Bank of New York acting as fiscal agent. The reasons given 
by the Liberian Government for this loan were to provide for the adjustment 
of the country’s outstanding indebtedness, to arrange for the construction of 
certain public works, roads, bridges, and wharves, and to develop harbors 
and communications, to encourage agriculture, to create a sanitary organiza- 
tion which would include the establishment and maintenance of hospitals, 
to build schools and encourage education among its people, to develop and 
maintain a frontier force, and generally to benefit the country economically. 
The final terms of the loan as ratified are regarded by the Liberian people as 
being much more favorable to the country than the terms of the United States 
Government loan offered in 1919. Under the terms of the new loan the number 
of American army officers to be appointed for the purpose of assisting in the 
reorganization of the frontier force is reduced to two. Although Liberia regards 
this reduction as a victory, it is obviously unfortunate, for the history of the 
frontier force has been most unsavory, and the Liberian Government certainly 
needs all the capable foreign assistance that could be obtained in order to render 
this organization more creditable. However, the loan provides for a Financial 
Advisor for the Government of Liberia, to be designated by the President of 
the United States; an Auditor and Assistant Auditor who are to be appointed 
by agreement with the Fiscal Agent; a Supervisor of Customs; and, what is 
especially important, a Supervisor of Internal Revenue. Thus as a result of the 
new loan Liberia is to have the advice and supervision of seven Americans in 
all. The final ratification of the loan has brought general satisfaction, not only 
to the Liberian Government, but to all persons truly interested in the welfare 
of that country. Taken in connection with the Firestone agreements, it gives a 
unique opportunity, not only for the financial rehabilitation of Liberia, but for 
the economic development of the country and for the improvement of the gen- 
eral condition of its inhabitants. 
