New-York tribune., 1902-08-05
CUBA TO FLOAT A LOAN.
BOND ISSUE OF ss5oco.ooO PROPOSED AT
HAVANA.
CONSENT OF THE UNITED STATES CON
GREss PROBABLY NECESSARY BE-
FORE CONTRACTING DEBT OF
sI-CH PROPORTIONS.
rRY TELEGRAPH TO THE TRIBUNE. J

TRY TELEGRAPH TO THE TRIBUNE-l
Washington. Aug 4.-Offcial news from oupa
shows that the Congress at Havana, on 'he
recommendation of President Palma, is prepar-
ing TO provide for floating loan Of S3o,er'c'"'
based on the customs revenues of the islaho-
The proposition is for special authority 10 DE
given TO President Palma to negotiate the loan In
United States gold and issue forty-year > per
cent bonds, the transaction to be completed
within six months Four million dollars viii be
applied 70 the aid Of the cane growers and the
agricultural and live stock industries generally
The money will he loaned at the rate OF DO cents
for every $500 pounds of the last crop of sugar
the loan 10 he repaid when the next crop is dis
posed Of with per cent interest added Inc
debts contracted by the Cuban Junta al New
York which amount TO about S3,eooeoo VIII ne
paid, and about S23oo0ooo will be set aside 10
nav the claims of the Cuban soldiers. The act
also will authorize the President to increase
the tariff on certain articles. il that proves neces
ssrv 70 rrovide for the eventual wiping out OF
the debt II is probable. however. that local
taxation as we'll the tariff, will have 10 De
increased in order make the loan A safe and
negotiable one The State Department has re-
oeived the following cable dispatch from Min
s.ter Squiers dated Havana. August 4:
The House has passed bill authorizing loan
s35 OooopO. Minimum rate Of issue go per cent
Naxirnypo interest = per cent. Redeema ble in
forty years.
Every effort is being made. it is said, to shape
the legislation to comply with that clause
of the Plat amendment which gives the United
States the right 10 supervise and control Cuba
debt making power The clause in question Is
as follows:
That the government of Cuba shall not con-
tract or assume any public debt to pay the
snterest 1Inon which and TO make reasonable
sinking fund provisions for the ultimate dis-
charge of which. the ordinary revenues OF me
island, after defraying the current expenses OF
government, shall be inadequate
WILL BE SCRUTINIZED CAREFULLY.
Before the loan is placed. it is highly proba-
bic that the consent Of the United States Con-
eress will have 10 be secured. In no other way
could II be said that the requirements Of the
Platt amendment had been compiled with This
necessarily will j.. 1--we an inquiry by congress
.nto the ability of the Cuban Government to
contract a debt of such proportions
Another phase of the question is presented
by the announced determination TO pay ABOUT
s23ooo000 Of the amount to be raised 10 the
men who say they fought J. the cause oi
Cuban liberty. There is a marked disposition
in Washington to scrutinize carefully the claim
of every so-called Cuban patriot" against his
country 1t is known that there are many men
in the island claiming hold commissions IN
the Army of Liberation with ranks OF major
general, and down through the grades 10 the
lowest commissioned officer, who are eager TO
present their bills fc- back pay. These accounts
Of themselves run Up into the millions TO say
nothing of the claims of several thousand Gu
bans who acknowledge that they were only prl-
Yates IN the ranks. II is feared here that II the
Cuban Congress is allowed to have a free hand
sn tn matter men like General Maxine Gomez
will be made rich at the expense Of the already
IMPOVERISHED Cuban taxpayers. and that the
young republic will be saddled with a heavy
debt that will handicap it for years
Hence il is not considered likely that the
United States Congress will let the proposed
io1u 20 through without first subjecting it to
the most searching investigation. 1t is true tnat
Cuba would not have to as, for a loan now II
the Congress of this country had done It's duty
81 the matter OF reciprocity at the last ses-
sion But this dereliction on the part OF the
United States will not be held sufficient eX-
c,se for the governing powers in this country
TO release all supervision over Cuban ana1rS
and permit the young republic TO ruin ltseii
with debts at the beginning OF its career. II is
believed that Senator Platt. of Connecticut 1he
recognized leader in all Cuban subjects that
came before Congress. viii fight hard against
the making of the proposed loan, until ne is
sstisfed that Cuba do IL with perfect SAFETY
TO all the interests involved.