Charles D. B. King

By the early 1920s, Liberia's financial crisis had worsened to the point where President King headed up a commission that traveled to the United States to seek reorganization of the country's staggering debt burden.[2] They arrived in March 6, 1921, shortly after President Warren G. Harding had taken office. [3] The U.S. Congress had suspended all foreign credit and extension of foreign loans, even though the U.S. State Department favored approving the request from the Liberian delegation.[4] In July, U.S. Secretary of State Charles Evans Hughes said that it was the moral duty to extend the requested loan to Liberia because of an 1918 agreement between the two countries.[5] The following month, President Harding told Congress that he agreed with Secretary Hughes.[5] Negotiations dragged on until October before the State Department finally granted Liberia a loan for $5 million (equivalent to $82 million in 2022)

The United States government under President Harding proposed anew (after an attempt made during World War I from Liberian President Howard to get a loan from the previous Woodrow Wilson Administration) to Congress a $5 million loan to Liberia. The House of Representatives approval the loan in a vote of 148–139, but the Senate voted 42–32 against giving the loan.[6][7] This created great disappointment and a sense of desperation among Liberian officials, who worried that British and French designs on their country might now prove unstoppable. Liberia had become a charter member of the League of Nations in 1919, and the Liberian government was determined to safeguard its sovereignty.

In 1925, Firestone Rubber Company agreed to a 99-year lease of 1,000,000 acres (4,000 km²) of land in Liberia in order to grow rubber on it.[8] Firestone began exporting rubber from Liberia in 1934. The Liberian economy soon came to depend on it. Firestone's subsidiary Finance Corporation of America gave a $5 million loan to the Liberian government, which Liberia intended to use to consolidate and bond debts and fund public improvements.[9] Under the terms of the loan, the President of the United States appointed a financial advisor to Liberia who had the power to approve and disapprove all expenditures by the Liberian government.[9] The Liberian government was also required to use $2.5 million of the loan to purchase bonds at a ten percent markup.[9] Of the remainder, over $1.1 million went toward loan repayments on a 1912 loan from the U.S.[9] As a result, very little of the proceeds of the 1934 loan were available to help the country.[9] Meanwhile, the loan repayments constituted 40 percent of the Liberian government's annual income.[9]

King, with his entourage on the steps of the Peace Palace, The Hague, in 1927.

King was challenged in the 1927 presidential election by Thomas Faulkner. According to the official statement, King received 234,000 votes;[10] however, Liberia only had 15,000 registered voters at the time. Thus, King was later listed in the Guinness Book of Records for the most fraudulent election reported in history.[11]

After losing the 1927 presidential election to King, Thomas Faulkner accused many members of the True Whig Party government of recruiting and selling contract labor as slaves. Despite Liberia's firm denials and a refusal to cooperate, the League of Nations established a commission under the leadership of British zoologist Cuthbert Christy to determine the extent of forced labor and slavery still practiced by Liberia. U.S. President Herbert Hoover briefly suspended relations to press Monrovia into compliance.

In 1930 the League of Nations published the committee's report, dubbed the ‘Christy Report’ after the Committee's chairman. The report supported many of Faulkner's allegations and implicated many government officials, including vice president Allen Yancy. It was found that forced labor was used for the construction of certain public works such as roads in the interior. And certain tribes did practice domestic servitude that could be considered as slavery.

The report found:

1. "In order to suppress the native, prevent him from realizing his powers and limitations and prevent him from asserting himself in any way whatever, for the benefit of the dominant and colonizing race, although originally the same African stock as themselves, a policy of gross intimidation and suppression has for years been systematically fostered and encouraged, and is the key word of the Government native policy;" and
2. that, "...Vice President Yancy [of Liberia] and other high officials of the Liberian Government, as well as county superintendents and district commissioners, have given their sanction for compulsory recruitment of labor for road construction, for shipment abroad and other work, by the aid and assistance of the Liberian Frontier Force; and have condoned the utilization of this force for purposes of physical compulsion on road construction for the intimidation of villagers, for the humiliation and degradation of chiefs, of captured natives to the coast, there guarding them till the time of shipment [to Fernando Po and Sao Tome.]"[12]

Subsequently, King and Vice-President Yancy, along with other implicated leaders, resigned.