The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-11-20
ACTION OF BONDHOLDERs.
COIOmbia's Creditors Want Panama to
Pay Part of Debt.

LONDON. Nov. 19.-The council of for
eign bondholders has received a communi-
cation from Amsterdam saying that the
Chamber of Commerce there will request
the government of the Netherlands not to
recognize the Republic of Panama until
some arrangement is arrived at whereby
the new republic assumes an equitable
share of the Colombian debt. The majority
of the bonds are held in England and Hol-
land.
The British Foreign Office has replied to
the Colombian bondholders' request by as
surfing them of its interest in their case,
but not committing the government to any
SPECIFIC course OF action. Further COM
munications are expected but far
the bondholders council knows the For
elSn Offce has not yet taken any steps in
the matter. The secretary of the council
OF foreign bondholders. in an interview,
said:
I'VE have not the slightest objection to
Panama's independence and think the
American action calculated to promote the
benefits OF all concerned In our letter to
Lord Lansdowne We pointed out that the
independence of Panama was evidently an
affaire accompl but we wished to bring
through diplomatic channels, the attention
OF the American authorities to facts con-
corning which perhaps they not so
well informed as the unfortunate people
who have supplied Colon bia with money
ir past years. No set o. bondholders the
world ever has Jared so hardly as the
BlitIshers, who have advarced the Colon
bian government money, and we feared
the republic might take advantage of the
secession OF Panama as an excuse to re-
pudiate all its obligations. Our view is
that Panama. having greatly benefited by
the money sunk in the country by British
and other bondholders. should assume a
certain portion of the debt of the country
to which 1t recently belonged
When asked what he considered to be
an equitable proportion, the secretary re-
ID-D1 lxlx 10.
that should be left to an arbitrator The
total Colombian debt, with interest is
about sl5,OOo,OCO We hope that from the
canal money Panama will pay Colombia
such share of the debt as the arbitrator
decides and thus purge herself of pecu-
MARY obligations to foreign countries.
so far as the British bondholders are
concerned We would rather accept the
bonds of the new republic than anything
issued by Colombia. So. if Panama does
not wish to give up cash, an issue of bonds
or the acceptance of responsibility for part
of the present Colombian issue would be
quite acceptable. Such action would not
only appear equitable, but would insure the
new republic good credit in Europe. We
are just anxious as the Americans to
see the independence of Panama thorough
ly established and instead of putting OBJ
staces in the way, as seems to be inn
agined we are only endeavoring to make
it's independence financially secure Our
dent Roosevelt and Secretary Hay will not
countenance any action of Panama which
would be construed by Europe a
Reputation of it's debts.
The promptness of the American action
toward Panama is generally received with
admiration by the European newspapers
ut is with this infiniteness of object"
saws the Evening Standard that political
triumphs are secured. America knows ex-
actly what she wants, and having set
about the right way to get 1t, she has sue
ceeded.'
The Pail Mall Gazette says: Secretary
Shaw's words, that he is Jealous of the
CI,oll hne}p 70 CHI
will be echoed by all who wish to enlarge
the area of commerce."
The St. James Gazette and the Globe
rather criticise the diplomacy by which the
| coup d'etat was accomplished, the Globe
| saying: 1T is doubtful If 1t will eventual
ly rebound to the credit of President Roose-
| Welt and Secretary Hay"
In official circles but slight interest is
| exhibited. the entire affair being left to
| Washington. Recognition of Panama by
| Great Britain will follow as matter Of
course soon as the necessary formalities
are concluded. and the bondholders are in
| formed what steps are likely to be taken to
safeguard their interests.