Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-06-21
How It is Burdened With Debt From
the Former War.
SPAIN CANNOT STAND an INCREASE
Cuban Bonds the Only Ones at a
Premium.
TIL REVOLT SPREADING

Amid all the information that.is coming
to this country relating to the course of
affairs in the Island of Cuba little has been
said of the true relations of the provinces
with Spain. These relations are important
as showing the probable outcome of the
revolutionary movement, and an important
fact is that they are very different from
those that existed when the island was
thrown into her ten years war in 1865,
which was only terminated after an ex-
penditure of s220,OO000O, and the loss of
100000 Spanish soldiers.
Perhaps the best informed man on the
affairs of Cuba in this country is Mr..
Jose l.. Rodriguez, Spanish translator of
the bureau of American republics. and the
author of number of publications on the
history of the island of his birth. A Star
reporter called on Mr.. Rodriguez today.
He did not express any opinion of the re-
suit of the present revolutionary movement,
hut said he regretted the war, because, even
in the case of success, the island would
gain its independence with military rule,
so that il might be many years before
condition could be secured favorable to a
desirable republican form of government.
He thought that ultima tely economic rea-
sens would give the island independence,
and that natural conditions would cause
Cuba and the United States to come into
very close relations.
Mr.. Rodriguez confined his statements to
matters of fact, and said nothing that
could be interpreted as meaning that he
felt as partisan IN the struggle.
The Ten Years War Debt.
when the island was thrown into a war
in 1865, it was without debt" said Mr.
Rodriguez. THE result of the ten years
war was that a debt Of about $500, 00o, 600
was amassed, and in order to meet this OBJ
legation the island was taxed in every i'm
agirable way. Twelve millions a year are
still paid on account of interest on the debt,
and yet since 1878 one per cent per annum
has been laid aside as a sinking fund. with
which to ultimately wipe out the debt. So
good security are the Cuban bonds that
they are the only bonds of Spain that are
held at premium. l have a newspaper
here from Madrid. dated May %. and that
quotes the Cuban bonds at no. while
every other security is quoted below par.
These bonds bear interest at six per cent
per annum and this has been paid regular
ly. The loan was negotiated through the
Rothschilds. and is now in the hands of
German bankers. The debt has now been
reduced to about s19S,o0O.O00. The system
of taxation of Cuba is difficult for Ameri-
cans to understand. When a guest registers
at hotel he must have a stamp placed OPP
posite his name or he cannot stop there.
Every sign is placed at store front only
after the payment of tax on each letter
rent is subject to this charge. Every la
ooier who sweeps the streets pays a tax
or he cannot engage in that work, and
every professional and business man must
do likewise. All the estates pay a tax, and
the customs houses contribute to this fund.
In fact, the island in all its resources is
mortgaged to pay the debt.
Former Revenue From the Island.
when Spain began the suppression of
the former rebellion in Cuba she was re-
ceiving an annual income from the island
of five or six millions, but the necessity of
carrying the debt incurred in war has
made the assessment of this revenue i'm
possible. Every dollar of debt brought on
by the Cuban revolt is included in this in
oeotedness, and every nan who goes to
Cuba from Spain during a war or in time
Of peace, whether in the military or civil
service, is given larger compensation
than that paid at home, and, on retiring
frCm the service, is given a pension. This
is because of the risks that are run on ac-
count of the climate, which is very hard on
Spaniards.
Bearing of Changed Financial Condf-
lions.
There are Cubans who think that the
difference between the financial condition
of Cuba in 1868 and her condition now will
have an important bearing on the out
come of the revolution. These Cubans
think that, should it be necessary for
Spain to spend another 500 10000 to sup
press the revolt. the charges SO incurred
would be so great that the islands resources
could not stand it, and If they are to be
met Spain herself must meet them. They
ask in this connection whether Spain
would care TO keep the island as depend
ency if she is to become a burden. If
nothing could be gained by the possession
they think hat Cuba would be dropped
Another question they ask is whether it
would be possible for Spain to carry on
this war by borrowing money except by
distinctly guaranteeing its payment from
SPANS own resources, and II she should be
willing only to guarantee the resources of
Cuba some wonder whether the, money
could be borrowed with such security for
it is not thought that Cuba would as an
Independent country be willing to assume
debt that was contracted for such a pur-
pose.
Must BE Put Down in n Year.
1T is in view Of these reasons that there
are Cubans who believe that the Cuban re-
volt must be put down within year or not
at ALL A tremendous military display of
Spanish forces in Cuba will cost an i'm
mense sum of money. AS have said, such
display kept UP for ten years on the oc-
casion of the former war resulted. in an
Indebtedness of $500, 100000.
"Of course, the Spanish forces are at the
great disadvantage in the campaign in
Cuba on account of the climate. They are
taken down with yellow fever and other
diseases OF the 100000 who lost their lives
there in the ten years of the former war
a great majority came to their death be-
cause of these diseases. A Cuban seldom
gets yellow fever, and less seldom dies of
it."
Hope in Yellow Jack.
Another Cuban resident in this city
stated to Star reporter today that yell
low fever is the only hope of the Cuban
revolutionists. Yellow Jack has already
made his appearance in Cuba, and the
weather of the next six months will be
more favorable to the spread of the dis
ease than any other time of the year. The
revolution, at first confined to the single
province of Santiago de Cuba, in the ex-
treme eastern and mountainous part of
the island ha, now spread to the province
Of Porto Principe which has been declared
in a state of siege by Gen. Campos AL
together tie Cuban revolt never looked
more serious than at the present time and
the financial situation of the island is re-
garded as perhaps the most important in