The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-09-01
THE GREAT CUBAN LOAN.
FINANCIAL DIFFTCULTY FOR TIE
SPANISH OPPREsSORs.
The Flat Failure Of the Effort to Borrow |
4O,OO0,OOO-Jovellar and the sub~crib-
ers DIsasreeing-An Appeal 10 Mndrfd.

The Flat Failure Of the Effort to Borrow
ACKNOWLEDGEMENTS and the subscrib-
ers Disaereeing-An Appeal 90 Madrid.
HAVANA, Aug. 20.-The one topic here
among all influential classes is the failure of the
attem pted forty mill on oar loan, and It's pos
sible OF probable consequences. At present
these consequences look excessively ugly,
financially and morally, both for the home Gov
eminent and the Spanish auth critics hero.
The pith OF the matter IL a. follows: The
budget for the current year pr owed required In
come OF ts3000,00O. But little OF this sum could
be raised by taxation, and recourse was had to
loan. The Captain-G eneraI, acting In behalf Of
the Madrid Cabinet, proposed to float loan Of
forty million dollars at an annual interest Of
twelve per cent 1t was agreed by the Govern
ment that, II the capitalists OF Havana, Madrid,
and Barcelona would subscribe one-quarter Of
this SUN, say ten million dollars, II would place
the other thirty millions In the money centres
OF Europe. giving as guarantee for the loan the
entire receipts OF the spanish Government IN
internal revenue, and all other taxes.
By dint OF very hard pressure. SO hard that II
may be fairly called compulsory, JOvellar man
aged TO get some four millions of dollars sub
scribed 10y capitalists of this island-I say of
shores forever OF these four millions, one
million was subscribed by Sr. Lopez, the owner
OF the mall steamers between Spain and this
colony. The Government owes him already
SsOOO.oO0 for transportation Of troops, and his
understanding with the Government that he is
20 be paid the $20O0,OO due him out OF the first
ipstallmen,s Of the loan. The other subscribers
Juan Al. Cebslios, OF your city, for t5OOQ0O. His
con signed for him here, and Don Jose arrived
tiff he dare. Don Julian Zulueta, once the
leading planter here, but now resident of
MORE / Ajura Tor $4,000; Don Ra,n on Herrera,
merchant and owner OF coastwise steamers,
who has made lots OF money out Of the war,
tlOO0Q0 and OF her assessme nts OF lesser cunts
are levied pretty Literally upon the Incorporated
banks, private bankers planters, and merchants.
As soon these subscriptions had been OBJ
tanned here the lists were sent to Spain, and
have good reason to believe that the balance of
the $100O,O00 which 1t was stipulated should be
subscribed by spaniards before the other $30,-
U0,01o were offered In Europe, was actually sub
scriOed 0y capitalists In Madrid and Barcelona.
OF course eli these subscriptions were based
upon the solemn engagement OF the spanish
Government that the people who took the loan
should form a syndicate. In whose hands Tue
Government placed the collection OF all taxes
PAYABLE IN the island OF Cuba. 80 concise and
binding was this condition that tho Government
coded to the sy indicate the appointing power Of
revenue collectors OF every class and denomi-
nation.
As soon as the entire quarter OF the loan, the
ten million doll r., had been subscribed by
Spaniards on the above distinct stipulattOns, the
NJ HdTid Government sent to London two Com
mi ssioners whose mission WIS to negotiate the
remaining thirty million dollars. These Com
missioners were senior Castaneds. Madrid
banker, and senior Don Poo. Jmsnez, formerly
manager of the Iianco Industrial OF Cardenas.
The interest Of IL per cent. per annum was
tempting. but the security OF the taxes OF Cuba
was not acceptable. Lombard street gave the
Royal Con missc ners the cold shoulder. 9Th re
is war In Cuba they said, and the cole ction
Of any taxes by Spain In Cuba for any length OF
time Is too proolematic TO induce us to touch
Ihis Inform alton has reached here, and is con-
armed by all the European correspondents OF
the commercial and banking houses Ia this city.
the Com missioners tried Paris aud Frankfort
with no better result than they had experienced
Ia London.
And now for the pincbing Of the shoe on the
subscruers here. The spanish Colonial hini,ter,
Lopez de Aysla. declares that he only author
lied the CAPTAIN General here to mortgage he
Custom House and other taxes OF tue island for
Soe nesS 90, o. t9s wnois , ~ o,ner
receipts OF the ISLAND for the year Tor the sum
OF forty millions Of dollars, and that. as this
loan has not been hoated. he Is In nowise Douud
to make over the Government receipts for one
quarter OF that amount, namely. the ten millions
Baroeiona. In fact. ne positively refuses 10 hy-
pothecate any portion OF the prospective taxes.
money" but Jovelisr has tneir sisnstars. 60
furnish a certain number OF millions, and he
LIS very pretty row as 1t stands. but one
thing is certain unless money is forthcoming.
aud II cannot he collected In the shape Of taxes,
no tesnl orcements can he sent from spain.
Gen. Jovellar - at his wits end. He knows
that without fresh troo ps from spain. those now
In the Held Will desert TO the enemy. and that
every spaniard will become a declared rebel.
And he knows that money is indispensable for
the sending OF the promised achievements.
HE has called a meeting, to De held on thurs
day next, the 3lst inst, at the palace. where he
wishes the subscribers to the loan To appoint
committee 10 proceed To Madrid. there To settle
the mater of tue security with the hone Gov
ernment. But the money he sw ears he Will have.
Y. Since writing the above, learn on I'M
Questionable authority That the total amount
subscribed to the loan here. IN Madrid and IN
Is re Iona, i under five MILL IL Is reported
that Gaptuin-General JoyellaT has just received
a telegram from Madrid ORDERING HIM to collect
the sums subscribed here, even, II necessary, by
force.