New-York tribune., 1885-01-17
FINANCIAL STATE SECRETS.


FINANCIAL STATE SECRETS.
THE CONSOLIDATED AND FLOATING DEBTS OF
CUBA-wHAr BECOMES OF THE MONEY
SQUEEZED OUT OF AN IMPOVERISHED PEOPLE.
To the Editor Of The Tribune.
SIR: TO those Of us here who possessed some
knowledge of the inside history OF Spanish colonial ad
mnisraton-and especially of this island-the letter Of
your honorable Secretary OF State, accompanying the
trsBsmtta OF the treaty to your Senate giving among
many Others why his Department had
insisted upon larger number OF articles flour for
ample-being admitted these Iors free OF duty.
cited little surprise among the more liberal and
unofficial population. and less suppressed laughter
and sly winkng among that portion OF the official COM
mun upon whose broad and honest shoulders the
responsibility OF carrying out that rooy which forced
the United States TO respect the obligations which
Spain under with regard to the Cuban debt
which the OF the Island worc pied ged" In
asnuch the treaty and its accompanying literature,
have opened to international Inspection and criticism
hitherto jealousy guarded State secret may not be
OF place submit few observations this I'm
portant subject partly expose its heousness partly
whether not the Government OF spain is entitled
to the consideration generously rendered 1t, but
fundamentally to leave 10 your unbiased Judgment
whether the sacrifices your people make Will not result
really. in pinnns firmly than to the skirts
OF tho mother country, with increased, In lieu Of
diminished. debt.
Imay permitted premise with the statement that
Journalist In tho island OF Cuba docs tread the
primrose path OF dasnce In the performance OF his
honorable duties. any knows who has ever been
here Among the multitude OF difficulties which
stantly surround him to his confusion and embarrass-
men is that of obtaining any information with refer
the economic financial OF tho Govern
meut what action It may propose TO tako with
respect 10 public mstter. The kind OF publicity
which, In other countries is necessity of custom does
become either property OF easness, vice.
In Spanish colonial Government. Men grops In OBJ.
scurlty and the object OF the Government is make
darkness dark.
An illustration OF this policy may be In the gloom
with which the officials up all financial data given
the public which consist simply ia daily report OF the
receipts OF the custom houses statement OF the
Sold varied semi-occasonally," by thrilling
OF how distinguished and intrepid spanish
soldier surrounded band OF insurgents. or bandits and
capt1red-a cartridge-box killed an on-lOokIns aud
noghborly COW. Somet nes .and IN places where the
censorship Is sleepy or complicen other data are
allowed bat these certain to be OF no Importance TO
interested public; but these deemed fayors.
aud as the publishers naturally expectant and
pleased the officials adopt the Johnsonan policy
OF gratitude rs a tender OF expectation So also
they publish from time 10 time. items OF internal
revenue collections but II you wish to 60 the fountain
head-the Gaeeia dc la HibaHa you will find there
perchance note containing the dnes received for
given month at the various custom hOuscs ana cor
responding of the collections for the
month and year. There is always dminution but Of
course tho Official explains It decrease IN the expor
taon II you lived In the island, you might
doubt this you might think that part OF tue
diminu;ion could be accounted for monthly inspeo
ton the OF the empoyes but you ever have
such curiosity would bo considered an informity.
You night however think IL desirable TO know what has
been done with the money collected for will look in
vain FOR liquidation OF the public budget state
ment is made balancesheet published. nor Is any
ormaton given regari ding the situation OF the Island
treasury Tho inversion OF the collections is neither
stated known so that although we may know the
OF the budget we know nothing as to how Is
employed Operations of credit silently transacted in
Madrid but the details constitute State secret 1t ls
therefore. miracle that we know anything about what
going In tne departments most nearly touching u.s.
The principal economic phantasm which arous"s our
timorous sensibes is the matter OF the consolidated
debt This composed follows 50 far as the public
is permitted to of tedious system Of
fnancierng:
First-Hypothecated obligations or secured and guar
anteed bonds hold by the :" Banco H'spano-Coonia
Colonial Bank SPAIN. arising from the contract made
with the said bank In $780, for the sum OF S7500O000
among which included certain bonds issued under
previous contract OF 1875 for $1,000 900. and also
from st further contract with the Spanish Bank Of
Havana for q like sum, made In 1873. Now from the
SIS 600 900 referred to there must be deducted the
amount raid to the bank during the four years that have
passed since the of the contract the amount OF this
only the Government officials know. Nothing OF any
ml ortance or e1acness is made public We have semi
occasionally q slight basis upon which to ground
supposition but where secrecy Is employed 80 exten
,iyeiy doubt Is always principal and primal ingredient
what refer TO rs basis for calculation Is that the
s75 900 are to paid In twenty-five years. or say
at tho rate OF 49, year, and to meet this com
promise $4,000 given daily out OF the customs rev.
enues But there Is still something more behind oil this
The bonds obligations 10 the amount OK the SIoooo
900 mentioned issued to meet pressing necessities
OF the Government and the consent o. the prmiave ana
anror possessors of bonds constituting tho loan
made by the Spanish Bank Of Havana TO the govern
msnt WAS not asked that they really have prior en
on the reyenues 1t ID true. ut tho same tne tnat the
daily payment of S35 OO0 amounting to about @l27oo
600 year. WAS intended and stipulated rs species OF
sinking fund TO pay both debts; but such the mpen-
srable darkness which attends all operations OF the
ansnco department fths island that We 10 not really
know vhether the daily payment .nads nor have we
any means OF learning how It u spilled. how much to
one ana how much to tho Other debt Nevertheless
NAV readily be admitted and believed that 1.-The
which are taken from the customs. do NOS
return there nor do they 60 10 the dovsrnmsns The
oosals psobsby anipulsss than st thsy - either
- m -uoensi Bank TO the Spanish ens
or 20 che psskvts Of tho employees rhses = sas shas
always certain that the taxpayer pays thsm And there