The record-union., 1898-09-05
THE SO-CALLED CUBAN DEBTS.

is among Americans but one opinion
about the attempt to saddle the load
upon the new Cuban Government with
| our guarantee back of it.
But it is suggested by the "Ore-
| gon1an' that the debt of Cuba pre-
viously contracted has a different ba-
sis. The earliest Cuban bonds were
issued in 1886, and were made lien
upon Cuban revenues. These bonds
amount to $124,OOO,OOO There is a
subsidiary guarantee by Spain. Of the
amount, SLIT 100000 remain unpaid.
In 1890 the Spanish Cortes ordered
issued S175,OOOOOO Cuban stock with
the same lines of security. After the
beginning Of the insurrection. bonds
against Cuba to the amount of $780,
OO0OOO were issued with the guar
antees as in the other case. and the
pledge of the treasury of Spain in
addition, and besides certain specific
and extraordinary duties, to be col
lected in Cuba. Concerning this last
debt, it Is clearly, expressly and pc
culiarly Spain's. 1t cannot be tortured
as an issue by Cuban authority It
was specified that if Cuba was pacifed.
then Spain would expect to be REIN
bursed.
There is an old floating debt Of Cuba
that is supposed to have amounted to
SIo,OO0OOO last January, which has
been increased since, just how much
no one appears to be able to calculate.
Leroy-Beaulieu, a strong friend Of the
United States, thinks we should pay
part Of these obligations, Cuba part,
and Spain the third part, but he has
not indicated precisely the proportions.
He holds as a matter of law that
when a province of a nation is con-
quered and taken by a third party, or
when it is separated from it's former
principal and becomes Independent, the
conquering country or in the other
case the province, becomes response
bic for the debts of the province.
If for the sake Of the argument this
is conceded, it is a rule that can ap-
ply to but a small portion Of the ag-
gregate Of Cuba's indebtedness. But
we have not taken Cuba, nor is it yet
Independent in the true sense If we
annex Cuba we viii do so by the will
OF her people, not by reason of any
voice Of Spain in the matter. Mexico
created large Indebtedness against
Texas. which we acquired, but we as
sumed no part Of the debt made by
Mexico, While we did assume the Tex
an debt, because it had assumed the
attitude of a State. 1t was really part
price Of the territory. But there is a
rule Of international law laid down
by several writer's, namely, that a
change Of government may dissolve all
prior obligations, as where a nation is
striving for release from despotic
government, or where it is seeking to
recover its subverted liberties. The
"Oregonien" quotes Woolsey, as fol-
lows: "a change of government may
dissolve prior obligations It is where
a despotic government has contracted
debts against nation striving to re-
cover its liberties. The government is
de facto Independent Of any and thus
it's acts are lawful; nevertheless, obli-
cations entered into to subjugate the
people must be regarded in this ex-
treme case as pertaining to the gov
ernment alone, and not as resting on
the people"
Spain has resolved already that the
Cuban debit does not specify Just
what part, or whether all is included
while it must be met by Spain Is to be
repaid to her from the specific securi-
ties provided, and the general revenues
as well. The Cuban bonds are held
mostly in Spain, and to prevent an
antagonisn the Government is not pre-
pared to face, the Spanish Ministers
have provided for meeting the interest
payments.
But it must be borne in mind that
Cuba had no autonomous form of gov
ernment. 1t has had at no time the
power or authority to create a debt.
Though represented in the Cortes, it
has always been incapable of doing
anything for itself as a province
Whatever legislation has been had of
financial character has been Span
ish- In other words. Cuba has been
simply part Of Spain, dependent, and
at its mercy. In truth, then, how can
it be said that there ever has been a
Cuban debt Of any character?
We do not entertain the belief that
the United States will ever assume any
Indebtedness created by Spain in the
name of Cuba If we annex the island.
We do not believe that the United
States should force upon the independ-
ent government to be formed in Cuba
assumption of any obligations Of Spain,
and by her charged against the reve-
nues Of Cuba, since her people never
had a voicein the creation Of any such
Indebtedness. AS to debts created by
the Insurgent Government, they rest
upon wholly different basis from
any other, and a situation is possible
IN which we might be held to guar
antee their payment in case Of annex
alton.
The Democratic press Of the country
is loudly proclaiming that the war with
Spain was not a Republican war, but
the war of the whole American people.