Evening star., 1896-11-16
FREEDOM FOR CUBA
Business Principles May Overcome
the Spanish Pride.
A DEBT TOO GREAT TO CARRY
Probable Cost to Spain of the
Present Insurrection.
A W A Y OUT OF 1T
A W AY OUT OF 1T

Those who believe that business princi
pies will eventually overcome the pride of
Spain and give Cuba her freedom think
they see a verification of their prediction
in the present condition of Cuban and
Spanish finances.
Cuban synpathizers in this city pointed
out a year ago in the columns of The Star
that the time would arrive when the debt
of Cuba would be great that the rev.
enues OF the island could no longer even
pay the interest on it, and that the con-
tinued possession of the island by Spain
would mean continual tax on the state.
They believed that Spanish pride would
hold on to the island for long time, but
that eventually the kingdom would not
desire to keep a white elephant to eat up
it's own revenues, even if it could keep
she elephant in subjec.ion. Knowing that
Spain would have to assume the Cuban
debt when that island gained it's indie
pendence it was expected that war would
be prosecuted until it had become i'm
menseiy expensive. and this, they say, has
now been realized.
The Cuban War Debt.
When the ten years war in Cuba vas
ended in 1878 the Cuban debt amounted
TO $22-222o00,UcO. and to pay the interest and
to provide a sinking fund for the ultimate
liquidation of this incumbrance the rev.
enues of the island were pledged to the
bondholders. Every conceivable method
for raising taxes was applied to the island,
but so difficult was it TO pay the interest
and reduce the debt that February "A, 1895,
when the present Cuban war broke out,
the principal of the debt was still S2O0,WO,-
200; the funding process had reduced the
debt at the rate of only about a million
an! quarter year AT that rate 1t
would have taken about one hundred and
s.A,y years 10 pay off the Cuban debt.
Spain Now Trying to- Raise Il Loan.
1t is not possible to get very close esti-
mate of the amount of money that has beea
spent by Spain in the last year and half
in the attempt to suppress the insurrection
waS:rg on the Island of Cuba, but state
ments have occasionally been made by Of
fIciais of the Spanish government and some
idea may be obtained of the expense of
maintaining the military and naval force
ke pit on and in the vicinity of Cuba. 1t is
known that before the present insurrec-
ton broke out Spain was spending S6OU0,
pVD annually to maintain a military force
of 10000 men the island. There are
rcw 10000 Spanish soldiers in Cuba and it
las been stated that during the present
month 23.Doo more men will be sent there.
Those who have watched the course of
Spain in Cuba during the past year and
half estimate that not less than SSD.O00,UUO
has been spent in the effort to subdue the
military force on the island is not costing
less than an average of S15,OOO,UOO per an
Tim Spain can no longer raise money
with the Island of Cuba only as a guar
antee of its repayment.
She is enGeavoring to secure a loan of
S2Oo,Wr,oUO with which to carry on the war
and TO pay expenses already incurred. Her
4 per cent consols are said to be selling at
80 cents on dollar, and in order to give
security for the new loan she is endeayor-
ing to have its interest and ultimate repay
ment guaranteed by railroad and other great
corporations within her territory, these
corpora tions owning charters for a limited
period OF years, which period is to be
greatly lncres sed if they come to the aid
of the government On the first of Janu-
airy, 1885. the Spanish bonded debt indie
pendent of the Cuban Indebtedness amount
ed TO Sl,192, f's,6lS and the necessity for
that government to get corporations to
ditional debt is quoted evidence of the
desperate financial straits in which it finds
Itself.
Revenues Can't Pay Interest.
From the above facts the Cuban SYM
pathizers draw the conclusion that even if
the war in Cuba could Re terminated at
once, the debt Is SO great that the revenues
of the island could not he made to paw it.
The Cuban debt draws per cent interest,
SO that the interest it would be necessary
to pay on the debt if peace were at once
re-established would be three millions more
than was required when the ten years
war came to close. If every device for
getting revenue from the island then per-
rlitted the government to place but one and
quarter million as sinking fund it is
not seen how, in the impoverished condi-
ton of Cuba, 1t can be expected to even
pay the interest on its debt. The balance
will, of course, have to be made up by
Spain, and it is agreed that. as that coun-
try is beginning to doubt whether it will
ever conquer the Cubans, it will not much
longer continue to involve itself deeper and
deeper in debt for hopeless cause.
Proposition to Sell the Island.
The idea that Spain might consider a
proposition for the sale of Cuba is still dis
cussed in some quarters, but there seems
to be little prospect for such consum-
nation Of the Cuban difficulty. In the first
place. Spain has never, in any way, shown
her inclination to listen to such a proposal
When IL was broached to the Spanish min
lister. Senor Dupuy de LONE. by a Star re-
porter, he replied, with a look of indigna-
tion:
Would the United States sell Florida -
But even IL Spain were to sell Cuba the
purchaser would have to buy the mort
gage along with the island, and as shown
above, this mortgage amounts to $500, ,O00,-
coo, for which the revenues Of the island
are pledged. besides an additional large
debt, contracted during the present war
which Spain would have Cuba pay If the
island could be squeezed sufficiently to pro-
duce the requisite revenues. All Of this
debt has been contracted for the purpose of
suppressing the Cubans. and the Cuban
patriots now fighting for liberty 1t is be-
heved by many, would not approve of any
project likely to throw gold into the hands
OF the bondhoiders who have loaned