Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-10-16
THAT NOTE TO SPAIN
AN AUTHORITATIVE STATEMENT AS
TO IT'S NATURE.
1T WAS AN OFFER TO MEDIATE.
ATTENTION CALLED TO OUR STRONG
SYMPATHY WITH CUBA.
Reasons for the Downfall of the Span-
ish Cabfnet-ViGOrOus Protests
Against Cutting the Inter-
est Rate on GOvern-
ment Bonds.

New York, Oct. 15.-The Herald publishes
the following. based on high authority,
which it claims is substantially the in
structons issued by President Mckinley to
Minister Woodford, for transmission to the
Spanish queen:
None but the most kindly relations exist
between the present administration and
Spain, and far as lies in the power of
the administration, they will continue. The
belligerency resolution which passed the
senate at the last session of congress mere
ly bore evidence of the tremendous popular
feeling throughout this country in favor of
Cuba. The house, to be secure, voted down
the resolutions passed by the senate. But
this was with a view to postponing the is
sue and not doing anything for the moment
that could be construed as hostile to Spain.
The house, like the senate, is strongly in
sympathy with Cuba. This feeling of SYM
pathy throughout the United States will
undoubtedly take shape as soon as congress
convenes, and it will be necessary for the
president to communicate to congress such
recommendations as he deems best to make
in regard to Cuban affairs. Under these
circumstances. the government of the
United States tenders its best offices to
mediate between Spain and Cuba and it Of
ferS to mediate SO 10 bring 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 president a
chance to report to congress, by the time
it convenes.
The Herald also publishes the following,
which it claims details the real circum-
stances which led to the downfall of the
old cabinet:
Nearly all of the Spanish bonds have
been fioated in France and the recent loans
were placed there, but the latest applica-
tons for further loans have not been IA
vorably responded to. The only means,
therefore, of raising money was through
the Bank of Spain. to which application
was made at the rate of 5OOOO,0O pesetas,
or $12,OOO,0OO, 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 several
weeks ago, and the cabinet thereupon
removed the governor of the bank The
recently appointed governor of the bank
then tried to force the banks board of
directors to grant the applications of
the government for additional loans, but
his efforts failed. This was followed by
the determination of the cabinet to take
steps to reduce the interest rates on the
government bonds from and per cent to
! and 2l2 per cent, respectively.
Immediately the cabinet was deluged
with protests. Some of these objections
came from persons high in authority and in
position to dictate terms to Spain. The
combined weight of conservative influence
in Spain, which embraced indicated the
bulk of the holders of Spanish bonds whose
interest would be cut in two. Immediately
answered this proposition with the suG-
gestion that it would be far better to stop
all war expenses than to adopt such a rad
ical course. In fact many of the conserv-
atives said it would be better to gain any
could obtain by the sacrifice of sovereignty
and accepting an offer to grant liberty to
Cuba if it could be brought about in a way
The queen yielded to this, and the result
was the resignation of the old cabinet and
the calling upon Sagasta to form u new