The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-08-04
1t is Proposed to Negotiate q
Loan Of $35,OOO,OOO.
Island Will Exchange Her Bonds
For American Gold.
SHE MUST HAVE MONEY
Business Depression and Poverty
Show No Abatement.
Failures Number 1913 in Past
Year Against % Year Before.

New York. Aug. 4.-The first import
ant work of the Cuban congress IS ap-
preaching conclusion after a slttlne
of little more than two months. Al
Saturday nights session of the senate
the way VS. prepared for circulating
$35, 000, 900 throughout the island by sub
stantially approving the house bill for
the circulation of this amount The
money, it is believed, will have the eff
feet of relieving considerably the pres
ent crisis. The Cuban congress consld-
ers it advisable to aid the sugar plant
ers pending efforts to obtain reciprocity
at the next session of the American
congress. THE necessity is also recog-
nized of paying the debts contracted by
the Cuban junta of New York in aid of
the last revolution and to pay the liber-
ating army.
Authority has been granted for the
appointment of a commission to fix and
pay the amount due the army General
Maxine Gomez, probably will be the
chairman.
President Palma will be authorized to
borrow $35, 600 in American gold and
issue national thirty-year 5 per cent
bonds within six months. Four million
dollars will be applied to the aid OF
the cane growers and the agricultural
and cattle industry generally. The mon
ey will be loaned at the rate OF 50
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 per cent
interest The bondholders will have the
custom house receipts as a guarantee
for the repayment of the $4,O00,000. Pres
ident Palma will be authorized to in
crease the tariff duties on certain ar
ticles accordingly.
The rest of the s35, o00.O 900 loan will be
used for the payment of debts contract
ed by the New York junta to support
the revolution, amounting to about 3d.
OO0 600, also for payment of the services
of the army, amounting to $23,00O,000.
To bring this loan within the terms of
the Plat amendment and other pro-
visions of the Cuban constitution the
present congress before adjourning, will
provide a way to pay interest and will
establish a sinking fund to redeem the
principal. This probably will be done
by means of a stamp tax. Any balance
Of the loan will be applied to agricul-
ture at the discretion of congress.
The foregoing has been substantially
approved by congress. only the details
remaining for discussion, which will be-
gin Monday in public sessions.
1t is believed that such loan can be
negotiated and taken care of without
great difficulty. 1t will be Cuba's only
national debt. Business depression in
the towns and poverty in the country
are not decreasing. There have been
12S business failures in the last Il
months, against % the year before.
PASSES THE HOUSE.
Washington, Aug. 4.-The state de-
partment has received the following ca
blegram from Minister SQuires. dated
Havana, August 4:
1.-The house has passed a bill author
izing loan 35 million minimum rate of
issue 90 per cent Maximum interest 5
per cent. redeemable in 40 years.