The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-10-31
$4O,OOO,OOO
IN GOLD
Will Be Paid to Spain For the
Philippines.
Formal Instructions Sent to
Peace Commissioners
BY THE PRESIDENT
BY THE PRESIDENT
To Close Up the Deal With
Spain on That Basis.
Spanish Commissioners Are
Ready to Accept the Solution.

Washington, Oct. 31.-Formal instruc-
tions have been sent to the American
peace commissioners to accept the en-
tire Philippine group with the $40, ,OOO,-
600 Indebtedness incurred by Spain In
1896, it being the understanding here
that the Spanish commissioners are
agreeable to this solution of the Philip
pine question. While the administration
has been adverse to assuming the Phil
ippine or Cuban debts, yet it is believed
Washington authorities have been per-
suaded to believe that the debt is a
legitimate one. The Spanish theory that
the debt was contracted and expended
for the islands has been received here
as good logic and has swayed the ad-
ministration from the firm determina-
tion first reached to refuse to assume
any of Spain's colonial debts.
While the decision has been reached
to accept the islands with the indebted
ness of $40, 900 600 in round numbers, the
president has decided to leave the form
of assumption open. The president has
vacillated during the past "a hours upon
the bond question. Yesterday his plan
was to issue the bonds outright. Later
he favored giving Spain the cash, and
thus relieve the United States OF fur-
ther responsibility.
Today it has been called to his atten-
tiCn that Spain might repudiate the
bonds and in that event should any
Americans hold bonds they would lose
all they have invested, consequently his
present plan is to pay the money in gold
to Spain, requiring from that country
some sort of guarantee that the money
will be applied to the liquidation of
these obligations.
Senator Hanna, in an interview Oc-
tober 1, fOreshadoWed the intention of
the president to hold the entire Philip
pine group. 1t was at this time the
price of the Philippine securities ad-
vanced.
All other Spanish holdings were going
down in the markets, yet the Philip
pine bonds steadily Increased in value.
1t is stated that a majority of the
Philippine bonds of this issue are held
in Paris and Berlin, but that American
capital has been largely interested in
these securities within the last few
weeks. Intimations come from Paris
that a syndicate of Americans were
purchasing Philippine bonds of this is
sue whenever they could. Nothing can
be learned here, however, regarding the
holders of bonds.
The Philippine question will be taken
UP for consideration by the joint COM
nissioners at Paris today. The Spanish
commission have given assurances that
the retention of the entire Philippine
group with the Indebtedness of SAC, ,O00,
900 will be satisfa ctory to them. The
details of the final negotiations are yet
to be arranged.
to pay the money. The gold reserve is
now about $240, 900. 900 and the secretary
of the treasury has authority to issue
bonds to the extent of an additional
5000, 900, 000 This question as to the
manner in which the debt is to be paid
is the only one which will be considered
by the commission. The Madrid dis
patches bear out the information in this
city that the negotiations will be speed
lily concluded. The entire matter is in
formal, as yet, but will be approved by
the joint commissioners within the next
week. All the administration officials
express the utmost satisfaction at the
prospects of the early successful con-
cIusiOn of the peace negotiations.
While the administration is highly
pleased with the outcome, the assump-
ton of $40, 900, coo of debt and the re
sponsibilfty for the government of g.
900, 900 people, many Of whom are half
civilized. is a subject which is expected
to WELD a potent influence upon the
coming elections. It's effect is doubtful
as the expansion policy has a following
in both political parties.