Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-04-01
SPAIN NEEDS MONEY
The Country is Now Said TO
Be Well Nigh Bankrupt.
After Another Popular Loan Droop-
ing Price Of Spanish Securities.
A Cuban Patriot Says that General Gomez
Cannot Be Crushed.

believed by men high in diplomatic and
official circles here that the future OF Cuba
is to be studied from the financial rather
than from the military standpoint. Spain
is well nigh bankrupt, as a government,
and the people who support the govern
ment are feeling the strain upon their re-
sources to such an extent that they must
have relief in some way or other. The gov
crnmcnt finds great difficulty in securing
enough money with which to carry on the
war. For some months it has been run
ming on money obtained by popular loan,
but this is now exhausted. Another popu
lar loan is talked of, with doubtful chances
of success. The last loan was put out at 81
and bore per cent interest, and yet there
was great difficulty in floating it. The
shares are now quoted at 49, showing a
great drop in value within few months.
1t is reliably reported that the Spanish
government has been refused advances in
every capital of Europe and by every great
banking house.
In Financial Straits.
So great are the governments financial
difficulties that it has been forced to force
the circulation of paper money in Cuba
literally at the point of the bayonet-that
is to say, people refusing to accept it art
threatened with deportation to the penal
colonies. Nevertheless merchants refuse it.
The poor soldiers are compelled to take il
for their pay, though it is worth only 4C
cents on the dollar. Worse still, the army
has not been paid for several months and
great discomfort reigns in consequence. AT
home the government is in sore straits.
Fifty millions of interest upon the bonds
will be due July /, and the question is.
Where is the money coming from to pay It'll
saw today number of Madrid papers
about two weeks old. Notwithstanding
that the press there is not as free as it is
with US, all those papers contain the most
gloomy descriptions of the situation. The
Carlists are agitating in nearly every prov
ince of Spain, trying to overthrow the gov
eminent. The Canovas ministry is be
lieyed to be tOttering to its fall, and the
editors ask why the government does not
do something to suppress the Carlists.
The reports from the Philippines, where
Spain has a desperate war on her hands,
are almost as gloomy as those from Cuba.
But the financial problem is the greatest
one Spain has to face. There is really
danger that the interest on the debt will
be defaulted that the little credit the gov.
eminent has left will go to smash, and
that this will precipitate crisis in which
revolution may rear its ugly head. The
situation in Spain is almost as bad as il
can be.
Looking For the End.
The Cuban leaders in this country are
overjoyed at the prospect. They take less
interest now in the military situation than
in the financial news. "We are watching
the bourses of Europe said Senior Que
sada to me today. sin the dropping prices
of Spanish securities in all the money
marts of the world we see hope for free
Cuba. The end will come pretty soon
Spain is near the end of her string, as you
Americans say. She cannot hold out much
longer. Her financial difficulties will over.
whelm her. The war in Cuba, as 1 learn
from official reports which I have received
from Madrid, is costing the government
about S12,0OO,0O0 month. The war in
the Philippines is costing about 81, 900, 600
q month. This makes total of $16, OOA,.
600 month that impoverished and well
nigh bankrupt nation is expanding in the
effort to hold her two remaining important
colonial possessions-in an effort to destroy
human liberty. She is now dealing with
two rebellions. In short time her cred
itors will give her more trouble than he1
armed enemies.
1T is very serious situation for the
capitalists who have money invested in
Spanish securities, - continued Senior Que.
sada. But they are evidently not willing
to throw good money after bad. If there
were any assurance that Spain could crush
the rebellion in Cuba, these creditors would
be willing to put their money in to carry
on the war. But they do not see any such
prospect. The Spaniards have boosted that
If they are forced to give up Cuba they will
leave the Island desert waste, without
one stone resting upon another, uninhab-
liable for man and not worth having. 1t
stands to reason Spains creditors do not
wish to assist her in doing this, for large
part of the national debt is secured upon q
pledge of the Cuban revenues. The securi-
ty holders must look to the Cuba of the
future for their payment.
I'm my opinion" continued Senior Que
sada, 1.-THE Cuban problem will come to
this. Spain will go bankrupt, and then her
creditors will insist upon some sort of settle.
ment. The creditors are particularly inter
ested in Cuba, as have pointed out. They
want Cuba saved as an industrial and reye-
nue. producing country. There is only one
way in which it can be saved, and that is
by giving it independence. With indie
pendence Cuba will quickly recupcrate. 1t
will again become the richest land in the
world in agricultural productions. Whether
or not the Cubans will be found willing to
take over all or part of the debt which
Spain has incurred in her name, do not
know. That is d question for the future.
But without any doubt the time is soon
coming when the creditors of Spain will
seek some such arrangement, with the
United States as guarantor.''
Military and Civil Situation.
What is the military situation in Cuba
now"
1T is as good as we could wish. We are
holding our own, and that is all we care to
90. 1t Is enough Time and Spanish bank
Tuptcy will do the rest The royal forces
cannot beat our men, they cannot crush
0omez, they cannot force him to fight till
ne is ready and the advantages are ON his
side. Spain is at deadlock in Cuba. She
can 90 nothing. She has her great and ex-
pensive army, her navy, her elaborate IT,
sanizatlon, but there are no results. We
nolo all the eastern half of the island with.
Oas dispute. We are carrying on "A regular
nVTrNT