The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-10-02
orr PLAN TO FREE CUBA.
u,F1Nt PEOPLE THINK THEY
KNOW IT'S DETAILS.

=, r.. mat Cuba should Fay spain 5000. OoO,-
400, the Bonds to We Taken by an Amer
lean syndicate, and to No Guaranteed by
the Customs, ADMINISTERED by Americans.
HAVANA. Sept. 2e.-It Is believed generally
here that, in case the Spanish Government
should accept the good offices OF the United
States to end the war in Cuba, the American
Government win try to reach an understanding
with the foremost revolutionary leaders before
offering to Span q y form OF settlement. This
belief is supported by trustworthy advices from
Washington and Madrid. The plan most likely
TO be followed 10 in brief that Spain will receive
5000. 600, 900 in exchange for her recognition OF
the independence Of the republic Of Cuba. Tho
indemnity TO Spain would be paid In cash. and
TO raise the money the republic would issue
bonds. based on the customs receipts and guar
Anteed by the United States Government.
The United States and Spain would recognize
the republic OF Cuba and its Government, but
the United States. to cover their responsibility
in the guarantee Of the indemnity, would have
the full management and administration Of the
customs houses Of Cuba until the total debt
should be paid to the shareholders of the loan.
This plan, backed by important financial and
political men OF the United States, will be sug.
gested to Spain, q letter from Washington says,
In case Of a favorable answer to Gen Wood.
fords friendly note. A powerful syndicate will
be formed in the United States for raising the
loan. A letter from New York received here BY
an influential politician says:
"Col. John J. McCook, the principal romoter
Of the plan, 10 very hopeful OF success; but moth.
ing can DO stated definitely until SPANS answer
to Gen, Woodford's note is flown. The project
will not DO sQuelched by the elevation of the
Spanish Liberals to power. AS the determination
OF tho United States 10 to end the war in Cuba
by diplomatic and peaceful interference, and the
war will continue under Sagasta just as under
Canovas. Azcarraga. or any other Conservative"
The proposed plan 10 much commented on
here. That the customs OF the island are se-
curity enough for the $500. 900. 900. no one
doubts. 1t IL estimated that under honest man.
agement tho customs houses, in normal times,
yield . net revenue OF S1s .o0O, 900 q year. Ac-
cording to statements made before the war by
such Spanish newspapers as La Union Consti-
~tucional and Dturto de "a Edmiiid tho Spanish
officials stole daily in the customs houses $685.
900. For that reason the revenues acknowl-
edged officially in the budget were more than
$1,000. 900 syear.
Will tho insurgents accept the plant Those
who arc not in favor Of the annexation Of Cuba
to the United States will undoubtedly oppose IT,
but 1t would meet with tho approval OF all bust
ness men and landowners, who are eager for
American intervention as a hrst step to annexa-
ton.
The greatest difficulty will be on Spain's side.
The majority of the shareholders In the loans Of
1856 and 1890 are French. They are repre-
scented by the Banco Hispano Colonial, whose
head oflce 10 at Barcelona, Spain. The repro
sentative Of the banco in Cuba IL Don Manuel
Calvo, who collects tho revenues OF all the Gus
toms houses in the Island for the payment of in
terest on the 1886 loan. Calvo 10 also the rep
resentative of the Spanish Transatlantic Steam
ship Company. which Is intimately associated
with the Banco Hispano Colonial. The Trans
atlantic Company 10 opposed to the independ-
ence of Cuba, which means ruin to the company.
Now. can the French creditors Of the Cuban
customs houses, the Banco Hispano Colonial,
and the Transatlantica be convinced of tho ad.
visibility of the new plant Probably they
would ask Spain to make, before yielding. q
last effort to crush the revolution by force OF
erms.
Another great difficulty would be to obtain
the assent Of Spain's other creditors in Cuba
especially the Banque de Paris, which advanced
to the Spanish Government millions on the
security OF the Cuban bonds Of 1890. The
$500. Ooo. 900 could not be paid entirely to the
French creditors and to the Banco Hispanc
Colonial because such a course would mean the
immediate failure Of the Bank Of Spain, which
on the guarantee OF the 1890 bonds. advanced
money to the Government of Senior Canoval
until 1t hurt its own financial standing. TIL,
letter previously quoted says:
President Mckinley has been studying tn.
plan presented to him for the arrangement o
the Cuban question for two months previous Il
Mr.. Wood ord's arrival in Europe. Lately. dur
ing his vacation on Lake Champlain. the Presi
dent considered with the greatest interes
many communications sent to him from New
York in favor of the scheme. l can say that h,
deemed the solution a wise one, while not ignor
ing its practical difficulties even in the case o
spain's willingness to accept the friendly inter
ference of America.
"Au now depends on spain's answer t.
Woodford. II it is a favorable one, the schem,
will be suggested probably to the Spanish Gov
ernment: that is. provided the Cuoans accept IL
If IL fails. some other proposals will be made"
PROBABILITIES.