New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-11-19
THE PHILIPPINE DEBT.

We have already explained the origin and
nature Of the so-caled Cuban debt. which the
| Spanish Government desired TO saddle upon
either that island or the United States. 1t is
perfectly clear. we believe, to all informed and
impartial minds that that debt Is not properly
Cuban and Is not properly TO be charged
against Cuba or against any one but the Gov
eminent Of Pcninsular Spain at Madrid by
| which and for which 1t was contracted 1t
will now he pertinent to consider In like man.
ner the so-called Philippine debt, which has
become later matter of contention In the
peace negotiations ut Paris.
Down 10 three years or even less ago the
Philippines were sort of crown colony OF
Spain. They had no such status as Cuba en-
joyed. They had representation In the
Cortcs at Madrid. Their budgets were este "
lished simply by royal decree. They had more
over, practically no debt. There was no rca-
son why they should have any. But in 1895
q formidable insurrecton occurred, and Spain
was put to great expense in the work Of sup
pressing It. First, the Spanish Treasury de-
voted to the purpose a large sum taken from
n Cuban loan and charged against Cuba on the
fine principle of making one colony pay the
cost Of subjugatng the other Then n loan
Finally, on June TO- $685. the Cortes author
lied the grant of the royal guarantee for n
so-called Philippine loan of S40O0OOO0 at @
per cent. This loan is redeemable in forty
years, and 10 such redemption Of 1t and to the
payment Of interest On II the Madrid Govern
ment pledged first the chief sources Of colonial
revenue second. the customs. and, third. the
royal treasury of Spain. 1t may be added
- Ano fad
at discount. actually realizing only s3S,57",-
475. 1t Is not known that a single peseta or
It was spent for anything but warfare.
And that is the philippine Debt which 1t
IS contended this Nation ought a matter OF
Justice to assume in case it takes possession OF
tho islands 1t is in no valid sense Philip
pine debt 1t was not incurred by the Fill
pinos. but by the Madrid Government. 1t was
not incurred for the benefit of the Islands. but
for the benefit of Spain, and 1t was thus that
the money raised was spent. TO 1t we LAY
with absolute fitness apply the wellrecognizcd
principle OF international law that where a
'despotcal Government has contracted debts
against nation attempting to recover its
liberties obligations entered into to subju-
gate the people must be regarded as pertaining
"to the Government alone. and not as resting
upon the people
The Philippine debt IS therefore not valid
lion upon the Philippine Islands that must be
assumed by. their proprletors. Nor can 1t
be maintained that in taking the islands the
United States would be taking away from the
bondholders the sole security for payment OF
the debt for the islands are no more pledged
TO such payment than is the royal treasury ut
Madrid. If the United States. then. should pay
Spain any sum. be It 81 100000 or s40.00O000,
for the Philippine Islands. that would in no
sense be an assumption by this country OF
valid debt charge against t. but It would be
the rendering OF gratutous indemnity or
solatium TO Span-ah act Of generosity for
which no parallel Is to be found unless in some
chapter Of our own history.