New-York tribune., 1902-12-12
BRITISH LOSSES HEAVY,
TENEZUEL4 IN EXAMPLE
Taa Sums SINK by Foreigners an
South and Central 4me,7ca.

fs,ecial to The New-York Tribune bv French Cabie1
Ccoryrighr 1902 BY The Tribune Associationn
1ondon, Dec. u / a m--The Venezuelan af-
.s,- Is attracting the attention of investors and
bankers of this city. where creditors of various
central and South American countries are
a;rectly interested in the practical measures for
racovering defaults Of principal and interest.
nuring the last half century London has negoti-
o,ed loans and supplied capital for railway,
mining and harbor improvements in Costa Rica.
honduras, Guatemala. Colombia, Venezuela
Rrazl. the Argentine Confederation, Chill. Peru
on5 other Spanish American States and the ar
-ears in many OF these investments are heavy.
The money was lent at high rates. and when the
financial obligations had been repudiated COM
rrouises were effected wherever an arrange
1nent Of any kind practicable. One of the
most successful operations was the Grace con-
tract by which the State railways and various
mining properties were handed over to a syndi-
rate in exchange for complete clearance Of the
Peruvian debt The creditors OF many other
states have been less fortunate Many millions
ere now due to investors in various classes OF
snsnisla-A American securities from the defaults
of governments and corporations. These losses
ere estimated in the city high S300.000,000.
The claims against Venezuela may be small in
amount but the principle of obtaining redress
tv coercive measures for breaches of trust and
ecs of reputation has wide application to the
interests Of British investors Acts of war. like
,bs seizure of the Venezuelan customs craft and
eunboats have heretofore been regarded as an
indirect menace 10 the United States. which has
assumed a benevolent and altrulstic protect
crate over Spanish-America- The attitude OF
4be Washington government respecting the new
Venezuelan affair seems 10 emphasize the truth
that the Monroe Doctrine does not sanction and
cosdone breaches of the Eighth Commandment
of the Decalogue The effect of this disclosure
&c increased by the contrast offered between MI
(yeveland-s Intervention in the previous perez-
ueIan affair and the Indifference now displayed
tv the State Department If the Monroe DOC
tripe was then interpreted as involving the pro-
hibtjon of irregular territorial acquisition by 2
European power, it is not now construed as
offering encouragement TO any minor republic
to repudiate its financial obligation. Sagaclous
British investors are wondering whether new
value may not be impaired to Spanish-Amerlcan
securities by this new revelation that the Mon
roA Doctrine while a sword against European
ooIorization southwark, is not shield for hnan-
cial dishonor.
The DISPATCHES from Venezuela do not reveal
the practical measures by which an obstinate
government can be coerced by maritime powers
which are evidently under pledge to respect lhe
Monroe Doctrine and not TO conquer ana take
permanent possession of Venezuela The seizure
nf feet. While an OBVIOUS at VI H1A' AS @-ON
On effective measure of coercion. The blockade
~ -bA coast by the two squadrons will inter |
~,n- e11 foreign trade and deprive Castro's gov |
,-nroer+ of its main sources Of revenue from |
both axnort and import duties. 1t is q more |
promising resource than the seizure OF the i
custom, houses and the collection OF duties for |
the benefit Of foreign creditors for the Nenez- |
uelan officials can easily establish second Gus
to as Gordon on land. The effect Of the DOCK !
ade however. may not be immedlate, ana II |
NAV rally the Venezuelans TO the support Of |
Castro instead Of creating revolt against hlin- |
The difficulties of coercive measures are so |
sar;o,,e that military men assert that the only /
resource will be operations on a considerable |
scaIa against Caracas for which an army will |
be Indispensable
Little light was thrown upon the subject yes
terday either in Parliament or from oflclal /
sources The Venezuela question is exciting /
much curiosity but is discussed with languid IN !
terest by the London press. The veterans OF the
Boer war are not clamoring for military service
IN the western tropics
There was a tendency on the Stock Exchange
yesterday to connect the fall in American rails
Yesterday with the crisis in Venezuela, but in |
well informed quarters the downward movement /
was attributed solely TO forced liquidation IN
New-York There was no great pressure to sell
either here or from the Continent, and the NONE
tary position on the other side, was, on the
whole regarded as healthier than for some time
past II is pointed out that much OF the III
dehtedness Of America to Europe on hhdho1
bills has been liduidated during recent mohIhs'
and if is also remembered that America should |
now benefit by the shipments Of corn. which is
coming forward in large quantities There IS
however q large speculative position in An1erl-
can railroad securities carried here. as well as
ir New-York and at present it shows no sign
of being relieved by purchases on the part oI
the prlbIic on this side of the Atlantic