The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1902-08-12
TWO NOTES FROM OUR WASHINGTON
CORRESPONDENT.
The Administration Puzzled by the Cuban
Loan Nsttsr-A Deficit Of $50, 100000
Possible for This Year.

Loan Mattsr-A Deficit Of $50, OOO, 900
Possible for This Year.
Cor. of The Progressive Farmer.
The most serious problem WHICH
has confronted the Administration
since Congress adjourned, is now be-
ing considered by the State and
Treasury Departments and will
doubtless be laid before the President
at an early date. It is the loan of
$39,OOO.OOO which Cuba proposes to
negotiate. By a distinct and ~unequiv-
ocal provision of the Platt Amend
ment Cuba is prohibited to Contract
or assume any public debt, to pay the
interest upon which, and to make rea-
sonable sinking fund provisions for
the ultimate discharge of which, the
ordinary revenues of the island, after
defraying the current expenses of the
government, shall be ~inadequate."
While, from the standpoint of the
United States the P1att Amendment
has been made a part of the Cuban
constitution there have already been
murmurs against such an interpreta-
ton of the facts in the Cuban Con-
gress and now that body has taken
steps to negotiate the loan referred to
without consulting this Government
in the matter, nor is there any indi-
cation hat the Cuban authorities are
in a frame of mind to brook i~nterfer-
ence from this country.
That the Cuban revenues at this
date warrant the negotiation of a
loan of such proportions no well in
formed person believes. On the other
hand, it is believed in Cuba, that the
failure of the Fifty-seventh Congress
to pass the Cuban reciprocity measure
is responsible for the threatened de-
felt in the Cuban treasury and for the
inadequateness of Federal receipts.
Under these circumstances, the gov
eminent of the United States finds it.
self in a very delicate position.
X X X
The fact that considerable alarm is
felt by the officials of the Treasury
Department over the financial show
ing of the country can no longer be
concealed. That the facts warrant
the sensational stories sent out by
correspondents whose papers are OPP
posed to the Administration, is not
true. Nevertheless the most careful
figuring fails to show the finances of
the Government in an encouraging
light. The deficit for the month of
July was $7,5O7, 876, and by multiply
ing that sum by twelve, for the
months of the fiscal year, the. CORE
spondents referred to arrive at the
startling story that the deficit for the
year will amount to 100000 900 which
would practically wipe out the pres
ent surplus. Such a deficit is not ex-
pected by those in a position to know,
however, but what they do fear is that
there will be gradually growing de-
fcits until the total for the year may
amount to a little less than half that
sum. While, with a surplus of $45,-
100000 on hand, the Treasury would
be far from bankrupt, such a reduc-
ton would entail the withdrawal from
the banks Of a portion of the funds
deposited therein, which now amount
to $126,5OO,OOO, and a consequent
tightening of the money market which
will inevitably prove inimical to the
business interests of the country. The
receipts and expenses for August and
September will be watched with the
keenest interest, for it is conceded
they will be indicative of the receipts
and disbursements for the year.
A. B. MARRIOTT.
Washington, D. G.