Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1902-08-08
CUBA SEEKS BIG LOAN
Congress Plans a Way to Relieve
Present Crisis.
1t Decides to borrow and Put Into
Circulation S35,OO0,O0O - The
United states May Interfere
to Prevent the Action.

New York, Aug. 5.-The first impor-
tsnt work of the Cuban congress is
approaching conclusion after a sit
ting of little more than two
months. AT Saturday nights session
of the senate the way was prepared
for circulating $35,o0O,000 throughout
the island substantially approving the
house bill for the circulation of this
amount. The money, it is believed,
will have the effect of relieving con-
siderably the present crisis. The con-
gress considers ii advisable to aid
the sugar planters pending efforts to
obtain reciprocity at the next ses-
sion of the American congress. The
necessity is also recognized of pay
ing the debts contracted by the
Cuban junta, of New York, in aid of
the last revolution, and to pay the
liberating army.
To Issue Bonds
President Palma will be authorized
to borrow S35,000,000 in American
gold and to issue national 80 year
five per cent. bonds within six
months. Four million dollars will be
applied to the aid of the cane grow
ers and the agricultural and cattle
industry generally. The money will
be loaned at the rate of so cents for
every $500 pounds of sugar grown in
the last crop. The money is to be
repaid in February, March or April
of next year, drawing six per cent.
interest. The bondh olders will have
the custom house receipts as guaran-
tee for the repayment of the $4,-
100000. President Palma will be au
thorized to increase the tariff duties
on certain articles accordingly.
The rest of the S35, 100000 loan will
be used for the payment of debts
contracted. by the New York iunta to
support the revolution, amounting to
about S3,000,OO0, also for payment of
the services of the army, amounting
to S23,OOO,OOO.
Plans for Redemption.
To bring this loan within the
terms of the Platt amendment and
other provisions of the Cuban con-
stitution. the present congress, be-
fore adjourning will provide way to
pay interest and will establish sink
ing fund to redeem the principal.
This probably will be done by means
of stamp tax. Any balance of the
loan will be applied to agriculture
at the discretion of congress.
The foregoing has been substan-
tally approved by congress, only the
details remaining for discussion.
Many Business Failures.
II is believed such a loan can be ne
gotiated and taken care of without
great difficulty. 1t will be Cuba s
only national debt. Business depres-
sion in the towns and poverty in the
country has not decreased. There
have been 12S business failures since
the last IL months, against % the
year before.
House PASSES the Bill.
| Washington, Aug. 5.-The state de-
partment has received the following
cablegram from Minister Squiers,
dated Havana, August d:
1.-THE house has passed. the bill authoriz-
| ing the loan of S5.0o0,00o; minimum rate of
| Issue, 80 per cent. Maximum interest, five
per cent, redeemable in +0years."
May Prevent Loan.
Close attention is being given in Of
fetal circles to this, the first step of
the Cuban government to create a
bonded indebtedness. The announce
ment received from Minister Squires,
nevertheless, came as surprise. I'm.
der the section of the Platt amend
ment, adopted by the Cuban govern.
ment, the United States is guaranteed
that the Cuban government will not
contract a debt, to pay the interest
upon and to provide sinking fund for
that cannot be met by the ordinary
revenues of Cuba after defraying the
current expenses of the government.
This proposed loan, in the opinion
of some, may prove the first step o1
the Cuban government that requires
the Intervention of the United States
President Roosevelt was apprehen
sive of the results that would follow
the failure of congress to act upor
his recommendations for reciprocity
with Cuba, but the failure of con
gress to be guided by his recommend
ations does not relieve the admins
tration of the necessity of insisting
that the Cuban government shall rec
ognize and maintain in good faith al
the conditions of the Platt amend
ment which were accepted as condi
tions for the withdrawal of tn,
American troops.
1t may be that the Cuban congress
has no intention of violating any o
the conditions and that the Cubal
government can prove to the salts
faction of President Roosevelt ant
congress that the loan can be nego
tiated under article of the Plat
amendment. The loan, nevertheless
is exciting more comment than an,
act of the Cuban congress or govern
ment since the island was turne,
over to the people.
Heavy Failure.
Berlin, Aug. 5.-Peter Spreckels,