The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1898-04-01
lISP' BONDHOLDERS.
Are Mostly French and Control
Her Policy.
THEY REFUSE TO RELEASE CUBA.
Spain Would Gladly Drop the Debt Bur
L. dened Island if She Could Do Scuba
Worse Than Useless Now-Spain Pays
Eu Enormous Interest on Her Loans.

b. Worse Than Useless Now-Spain Pays
FL Enormous Interest on Her Loans.
Is WASHINGTON. March 26.-[Special. l.
"Spain Is largely ruled in France" This
remarkable statement was made to me by
member of the diplomatic corps who is
In position to know what he is talking
about. In explanation he went OH to say
that three-fourths of the debt of Spain
charged to Cuba and secured upon the Gu
ban revenues was held by Frenchmen.
Tempted by the high rates of interest of
fered by Spain in her extremity, the thrifty
French had invested their savings in the
securities of their less prosperous neighbor.
| In some cases this rate of interest was as
high as Z per cent. 1t may not be gener-
ally known that Spain is today paying a
higher average rate upon her national debt
than any other modern nation of the first,
second or third class, while the United
| States pays a smaller rate than any other
nation, Great Britain alone excepted.
Such an enormous sum is that which
represents the French investment in Cuba
that the bondhOders and their agents are
virtually able to control the Spanish cab
met. If extension upon the interest pay
| ments is wanted by Spain, as it frequently
is, it is necessary for her to go to these
creditors for the favor. If Spain wants
more funds to tide her over, it is to these
,reditors she must appeal. The result is
that gradually the Spanish ministry has
| fallen, directly or indirectly, under the
domination of" French capitalists and
bankers. These creditors insist that Spain
must hold to Cuba, and they have encOur-
| aged Spain to the best of their ability all
through the crisis with the United States.
OF course, their interest in the matter is
| purely selfish one They do not want to
lose their money. They want Spain to
preserve Cuba, even at the risk of a war
that will ruin her, rather than to surren-
der the island which is the basis of their
security.
No More Loans.
4 At the same time they are not willing
to advance any more money. They do not
want to throw good money after bad. The
best they have been able to do is to raise
few millions ina pinch to tide Spain over
some of the worst of her difficulties and to
encourage the Madrid government with
vague and meaningless chatter about Eu
ropean alliance to help Spain out in case
of trouble with the United States. In 9th
or words, the bondholders are eager that
! their interests be saved at the expense of
bloodshed or anything else, and even the
| peace of Europe they would not hesitate to
sacrifice were it possible to save themselves
thereby. But says this diplomatist, no
European nation will take up the cause of
Spain. Not even France, whose people
have so much money at stake, will lift
| finger for the dons apart from a possible
expression of sympathy that costs nothing
and means nothing.
7 This same authority tells me Cuba is so
overloaded with debt that Spain would
really be glad to drop the island if way
| could be found to do so without too great
humiliation and without any danger of a
revolution at home. Cuba is worse than
useless to Spain now and must be useless
for a century to come The debt piled up
against the island draws an annual inter-
est charge of something like $4,000, 900.
This is nearly double the annual interest
| charge upon the whole public debt of the
United States government, and the United
States contains more than 10000, 900 pros
porous people against only little more
than 1000, 600 inhabitants in Cuba, most
of them SO poor that they are now near
to starvation.
"Let US admit" said this diplomat,
"that Spain is able to retain control of
Cuba. How is she going to manage the
tremendous debt which she has created
against the island in an effort to conquer
| the people? At best Cuba is capable Of
| producing revenue of only $50, 900, 600 a
year. Half of this must go for administra-
ton. Only $40, 900, 900 is left for applica-
ton to the principal and interest of the
debt, and, as we have seen, this sum would
| pay only little more than one-third of
the interest charge. There would be moth
ing whatever for schools, roads, light
houses, harbor improvements, public
works. No, it is impossible for Spain to
retain Cuba. If she were to keep the
island, the people would be taxed into an
| other revolt in less than two years. The
/ exactions made of them by the govern
ment have been simply intolerable in the
/ past. Now they would be worse still.
Pride and Stubbornness.
"And yet Spain persists in holding to
Cuba and is apparently willing to go to
war about it. This is pride and stubborn
ness, phase of that Spanish national
| character which has led to all the fatal
plumbers in the history of that nation.
They have ruined Cuba, one of the most
fertile and favored countries in the world.
They have charged against it debt that
is absolutely ruinous. And now they in
ssist upon retaining their bankrupt and
| ravaged estate in the face of the world S
opinion that the best thing is for them to
drop it. l have said that Spain would be
glad to drop Cuba if there was an honor
able way to do SO. This is true. But it is
true only of the better classes, of the states
men who can really understand the situa-
ton, who appreciate the utter hopelessness
of holding to colony that is ruined be-
yond redemption. Cunningly the bond
holders and the politicians have famed the
| mind of the masses of the people of Spain
| into sort of frenzy about giving up Cuba.
The ignorant people have been led to be-
lieye that a surrender of the island would
be national infamy, while the truth is
that the infamy consists of ever permit
ting it to get into the state we now find it.
eff Spain had had any wisdom at all,
she could have ruled and kept Cuba.
There would have been no trouble. But
she insisted upon using the colony simply
as a sort of rich pasturage for her mer-
lohants, spectators, Adventures and poll
Cticians Cuba was the place to which men
| went when they wanted to get rich quick
! 1y. The merchants were ravenous, the
bankers cruel, the public officials corrupt.
Make money in Cuba by hook or crook