Lincoln County leader. [volume] (Toledo, Lincoln County, Or.) 1893-1987, 1897-10-21
TENDER OF MEDIATION
substance of the Presidents Recer,
Note to Spain.

Vi the Presidents Recent
Note to Spain.
New York, Oct. lS.-The Herald
publishes the following. based on bigr
authority, which it claims is substan.
tiaily the instructions issued by Presi.
den Mckinley to Minister Woodford
TO be presented to the Spanish queen:
None but the most kindly relations
exist between the present administr,.
ton and Spain. and as far as lies in the
power OF the administration thew will
continue. The belligerency resolution
which passed the senate at the last ses.
sion OF congress merely bore evidence
OF the tremendous popular feeling
throughout this country in favor of
Cuba. The house, to be sure. voted
down the resolution passed by the sen.
ate; but this was with a view to most.
ponlng the issue and not doing ANYTHING
for the moment that could be construed
as hostile to Spain.
The house, like the senate, is strong.
~ in sympathy with Cuba. This feel.
ing OF sympathy throughout the United
States will undoubtedly take shape as
soon as congress- C~onyenes, and it is
necessary for the president to communi.
cate to congress such recommendations
as he deems best to make in regard tc
Cuban affairs.
Under the circumstances, the gov.
eminent OF the United States tenders
Its best offices to mediate between
Spain and Cuba, and it offers to medi-
ate so as to bring the war to an end on
such terms AS will be honorable to both
parties. This government expresses
the hope that Spain will reply by the
end OF October, SO as to give the presi-
dent a chance to report to congress by
the time it convenes.
The Herald also publishes the follow
ing, which it claims details the real
circumstances which led to the down.
fall of the old cabinet:
Nearly all of the Spanish bonds had
been f1oated in France, and the recent
loans were placed there, but the latest
application for further loans had not
been favorably responded to. The only
means, therefore, of raising money was
through the Bank of Spain, through
which application was made at the rate
OF $4,000 pesetas, or $12, 900, 900 a
month, in order to carry on the war in
Cuba and the Philippine islands. The
Bank of Spain declined to make fur.
ther advances to the government sew
eral weeks ago, and the cabinet there
upon removed the governor OF the bank.
The recently appointed governor OF the
bank thereupon tried to force upon the
bank committee, or board of directors
the application OF the government for
additional loans, but his efforts failed.
This was followed by the determina-
tion of the cabinet to take steps to re-
duce the interest rate on the govern
ment bonds of 5 to 6 per cent to 81
and 4 per cent respectively. Imme-
diately the cabinet was deluged with
protests. Some Of the objections came
from persons high in authority and in
a position to dictate terms to Spain.
The combined weight OF conserva-
tives in Spain, which embraced, as in
Dictated, the bulk of the holders of Span
ish bonds, whose interest would be cut
in two, Immediately answered this
proposition with the suggestion that
it would be far better to stop all war
expenses than to adopt such a radical
course. In fact many of the conserva-
tives said it would be better to gain
anything in the way OF indemnity
which Spain could obtain by the sacri-
flee of sovereignty and accepting an
offer to grant liberty to Cuba, ii it
could be brought about in a way that
would not be d%ishonorable to Spain.
The queen yielded to this, and the re-
suit was the resignation OF the old cabi-
net and the calling upon Sagasta to
form a new one.