The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-08-05
CUBA TO MAKE BIG LOAN.
United states Is Concerned as
Proposed Debt May Run Contra to
wording of Plat Amendment.

ruited states Is Concerned as
proposed Debt May Run Contra to
wording of Plat Amendment.
washington, Aug. 4.-The State De-
nartment has reported the following
cablegram from Minister Squiers, dat
ed Havana, Aug. 4:
1.-THE House has passed bill author
izing loan $35,OO0,O00; minimum rate of
issue 80 per cent. maximum interest S
per cent; redeemable in forty years"
Under the Platt amendment the
United States is bound to take cogni-
zance of every action of the Cuban
government relating to loans. Article
of that amendment provides:
THAT said government shall not as
sumo or contract any public debt, to
nay the interest upon which and to
make reasonable sinking fund pro-
vision for the ultimate discharge of
which the ordinary revenues of the
Island of Cuba, after defraying the
current expenses of. the government
shall be Inadequate"
No computation has been made to
ascertain whether or not the loan pro-
vided for in the bill which Minister
Squiers refers to trespasses upon the
provision of the Plat amendment, but
ii is presumed that the Cuban reve-
nues can pay the interest and provide
a sinking fund beside defraying the
ordinary expenses of the government,
as provided in the amendment. At
the same time it will no doubt be
found very difficult to interpret this
particular provision as the question of
revenues may fiuctuate according to
the conditions in the island 1t is
known that the intention of Article 2
was to prevent any extraordinary is
sue of bonds for the purpose of re-
deeming the bonds of the so-called
republic previous to the Spanish
American war and the payment
of large bounties to those who had
taken part in the instruction against
Spain. 1t was intended as a check
upon the Cuban government in the
matter of mourning indebtedness, al
though it carries no provision indicat-
ing what would be the action of the
United States should the Cuban gov
eminent exceed the indebtedness pro-
hibited by the amendment. Neither is
there anything in the amendment in
dicating what steps the United States
would take to determine whether the
indebtedness was beyond the proscrip-
ton, or how it would prevent the in
curing of such indebtedness.
The Proposed Cuban Loan.
Havana, Aug. 4.-The Senate has
discussed and approved in part a bill
to empower the executive to raise a
loan of $4,0OO,000 at the minimum price
of so and at the maximum rate of in
terest of per cent, payable in thirty
years, to be used to assist the sugar
cane growers of the island, who will
be paid at the rate of so cents per 100
arrobas of sugar cane ground from the
last crop. This money is to be repaid
by the cane growers in February,
March and April of 1903, at per cent
interest.
Six months after date another loan,
of 100000 is to be raised on the
same conditions as to time, price of
issue and interest as the above men
toned loan. Four millions worth of
the bonds of the second loan are to be
devoted to taking up the first loan.
The rest of the $35.OOO0OO loan is to be
used for paying the debts of
the revolution referred to in the
constitution and to pay the
Cuban revolutionary army. 1t is claim
ed that this bill will substantially pass
the House. The Senate is said to be
really opposed to raising a large loan,
but to have agreed to this measure A
majority of the former Cuban revolu-
tionary element is in favor of paying
the army. 1t is said in other quarters
that the plan has been divided into
two sections in order to allow the
first loan to be raised and that the
second or big loan will be shelved.