The herald., 1897-09-02
Likely to End the Zelaya
Regime
THE FINANCIAL SITUATION
90 BAD THAT IT CAN NOT BE
MUCH WORSE
The Bankrupt Government Accused of
Hoarding Silver-Costa Rica
Boundary Disputes
Associated Press Special Wire.
MANAGJJA. Nicaragua, Sept, L.


MANAGUA, Nicaragua, Sept Ire
ports are current of conspiracies anc
threatened revolutions against Presdent
Zelaya's government. These reports
come from the civil departments ol
,Rtvas. Granda and Matuagalpa. 1t i;
also reported that President Zelaya has
received letters threatening him with
assassination. These troubles are SAID
to be due to the very bad financial con-
dition OF Nicaragua, oppressive military
government and the extraordinary ex-
penses incutsed in keeping under pay
q large number of soldiers, policemen,
detectives and spies.
The financial condition in Nicaragua
seems to be growing worse instead of
better; ITO per cent and more premium is
now offered and apparently without
takers, for reliable bills of exchange.
Nearly all American coins have been
reported for sale as bullion and parties
are boarding the 20 cent, 10 cent and .
cent sovereigns of Nicaragua and the
soles Of Honduras. Not one of these
coins contains more than IS per cent of
silver. The government of Nicaragua
is considering three propositions for re-
lief:
First-That of establishing Banco
Hipoleavio to issue paper money based
on the estimated value of real estate.
Second-The passage Of legislation
which will allow the government to issue
81, ,000. 900 paper money to be guaranteed
by 100000 pesos silver furnished by
Europeans.
Third-The introduction of an arbi-
trary system of taxation which will
practically compel owners Of real estate
in Nicaragua to become guarantors to
the state Of such an amount of paper
money as a commission appointed by
the government of Nicaragua may deter
mine.
In the meantime the people of Nicara-
qua are apparently becoming very rest
less and they are exhibiting as much dis
satisfaction as possible under the exist
Ing government. Many persons believe
that the government itself is boarding
silver for the purpose of sustaining itself
In power in the event of a breaking ou,
OF a threatened revolution or in case war
should occur with Costa Rica. Others
assert that the President of Nicaragua
has arranged to hoard money, hoping to
live like a wealthy European prince when
Il Is impossible for him to longer remain
in power.
Hon. ]. B. Rodriguez. envoy extraor-
dinary and minister plenipotenti tiary OF
the Greater Republic of Central America
to the United States has been visiting in
this city and left recently for San Juan
del Norte, for the purpose of pleading
before General Alexander, the arbitrator
appointed by President Cleveland to de-
termine the merits of the controversy
over the eastern commencement of the
boundary between Costa Rica and
Nicaragua.
This difficulty grew out of declar-
ton in the treaty of April, 1858, between
Costa Rica and Nicaragua, to the effect
that the eastern extension of the bound
ary between these two countries should
be the channel where the Rio Juan del
Norte enters the sea- The trouble is that
the channel of the river is now several
miles to the south of Costa Rica of where
it was in 1858. Nicaragua claims the
present exit while Costa Rica claims
the outlet as 1t existed in 1858. While the
engineers sent by both countries for tn
purpose Of marking the boundary from
1&eean to ocean were discussing the ques-
tion before General Alexander in May,
1897, a storm opened wide and deep the
channel as it existed in April, 1858. A
few days later the channel of 1858 again
filled up with sand and the course of the
river was again DETECTED to the channel
rs claimed by Nicaragua. If the chan.
mel Of 1858 is decided by General Alexan-
der to be the true boundary then the
eastern mouth of the canal as projected
by engineers will be entirely in Costa
Rica.