The evening times., 1898-03-19
THE CUBAN DEBT.
How Spain Has Heaped Up the Is
land'siObIigations.


Madrid, via Biarritz, France, March
19.-While allisorts of schemes are being
discussed for the settlemtn of the Cuban
question by means of an American guar
antee for the Cuban debt, it will be OPP
perfume to place before the people of
America the figures of that debt and the
sums required annually for it's interest
and sinking fund. When the war in Ca
ba began on February "a, 1885, the Cuban
debt consisted off
First-$124 900 in per cent bonds,
redeemable in forty years, created In
1856; which require now S7,0IS,2OO for in
terest, payable in gold, and S76O,UO in
gold for the sinking fund.
l. Secondly-$35, 600 600 in per cent bonds.
redeemable in forty years, created in 1890
requiring s1,75O,00O gold for the sinking
fund.
Both series of bonds were guaranteed
by mortgages on the revenue of the Gu
ban customs; by the general revenue OF
the island, and lastly by the subsidiary
guarantee of the Spanish imperial treas
ury.
When the war was started the customs
revenue of Cuba sufficed to cover the in
terest and sinking fund charges of both
classes of bonds.
1t is not generally known that the loan
of 1896 was TO have been much larger
than S35, coo COO, the original intention be-
ing to isue $780, 600 more of the ) per
cent redeemable bonds, with the coupons
and the sinking-fund charge payable in
gold, TO replace by conversion what re-
mained of the old per cent loan of 1886.
but the Madrid government at the time
could not place adyantageously the 1896
per cent bonds, which consequently re-
mained in the hands of the colonial min
istry.
When the present war began the Cortes
authorized the Canovas government 10
make use Of these $4,000 900 per cent
bonds, part of which were sold and part
served to guarantee advances by the
Bank of Spain and other banks. thus ad-
ding to the Cuban debt $4,000 600. an an
nuaI interest OF 5000. geo and u sinking
fund charge of 1920 600.
The Spanish government has borrowed
since then in Spain itself slG0 000,0c0 on )
per cent bonds. rcdeemable in eight years
and guaranteed by the revenue of the
home peninsular customs. though the said
loan and all its annual charges for inter
est and sinking fund-amounting the $24,-
500,eO0 not in gold. but in pesetas-are
chargeable to the Cuban debt and the
Cuban Treasury because the whole pro.
ceeds of this loan also were used up for
the expenses of the Cuban war.
me sum lotdl OF the CUBAN QeDt now,
owing TO rapid amortization. is $3.50 600 .001
in Cuban and per cent bonds. the in
terest and sinking-fund charges payable
in gold; and 500 0O0. 600 in Spanish customs
guaranteed 5 per cent bonds, the interest
and sinking-fund charge payable in pese-
taS.
When the Madrid government issued
royal DEGREES establishing home rule in
Cuba last November. the settlement of
the Cuban debt and the share of the bur
den 70 be BONE by the colony and the
mother country were left an open ques-
tion, to be discussed and decided later on,
after pacilcation, between the Cuban and
the Spanish parliaments and govern
ments.
Until that time ii would. besides. be diff
ticult to ascertain the real definite cost of
the war and the amount of debt
The Spanish foreign debt, with coupons
payable in gold, amounts TO S39i 230, coo;
the domestic debt s270 10000. with inter-
est payable in pesetas. $40 355. 600 of re-
deemable debt. about $ll0.Oj0OO0 bearing
interest IN pesetas. and minor items.
Bearing In mind this data, the American
Government can appreciate the financial
possibilities in Spain and Cuba.