The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-06-18
wv DEBTOR NATIONS.


Salvador Refuses to Pay and San Do
mingo Has No Money.
Washington Letter in Philadelphia Record.
1t is probable that this government will
have to discipline two of the Latin-Ameri-
can republics, Salvador and San Domingo.
Salvador. according to the decision OF an
arbitration commission, owes 100000 to Ell
Triumfo Company Qimited), of San Fran
cisco, and the Salvadorean Congress has
adjourned without making an appropria-
ton to pay the debt.
In San Domingo the government has been
overthrow by the revolutionists. and there
is no money or means OF raising money to
pay s20,O O0. 600 owing to American, Brit
ish, German, Italian. French, Dutch, Span
ish and Belgian capitalists. 1t is feared
that the Venezuelan incident may be re-
peated In the case of Santo Domingo, and
that the United States may again have to
maintain the Monroe doctrine:
The trouble with Salvador Ii particularly
i warsbin w IL t nros Sssfs pep sen1 tn se ene a a
Salvadorean port unless the government OF
that country changes its ATTITUDE very
soon. AT present Salvador is stifiy pro-
testing. She insists not only that the de-
cision was unfair, but that 1t was practical,
ly not a valid decision, because the actual
arbiter, Chief Justice Strong, of Canada,
was so i'll that he was not able to intelli-
gently take part in the arbitration. Inc
other members of the commission were
former Postmaster General Don NJ Dick
inson, of Michigan, for the United States,
and DR.. Pacas, for Salvador. The latter
created a scene when the announcement
of the commissions decision was made by
denouncing 1t in vigorous terms and de-
| claring that Chief Justice Strong did not
| know what he was doing and had been ov-
| erreached by the American representatives.
This was promptly denied by Mr.. Dickin-
son.
The position of. our government is that
the arbitration commission proceedings
were w ,ss regular rasv in a1 form that eaT bosS o parties aes0T musf
abide by the verdict, otherwise the princi-
pie of arbitration would be discredited:
1t will therefore oppose the reopening or
the case in any way and insist that the
The claim of Ell Triumfo Company lie that.
having obtained a concession to improve
the docks and harbor Of FL Triumfo In Sal
vador, it's property was confiscated upon
the untrue charge that having gone into
the hands of a receiver It had failed to
government claimed that it's action was
justiiable under the terms OF the conces-
sion and the failure Of the company to meet
How serious the situation is in San Do
mingo is shown In the following cablegram,
| sent from Santo Domingo City by Consul
to-day: ''Vasquez government fallen. New
provisional government organized. Entire
territory under it. General Gil provisional
president"
Mail advices, bearing date Of April 10.
which reached the State Department to-day
from a resident of Santo Domingo indicate
a gloomy outlook for the Dominican re-
public. The writer says the recognized
| public debt of the republic is $40, 600, 600, and
is held chiefly by American. British. Ger
| man, Italian, French, Dutch. Spanish and
| Belgian capitalists. The nominal annual
income is 100000.
\ Owing to the constant civil wars the
| government has been unable to cover its
| budget or pay the foreign creditors for
| hypothecate its future income at ruinous
| rates of interest. The Belgian bondholders
| have received nothing for Ave months and
| other debts are similarly neglected. The
| Belgians are authorized to TAX charge of
| the customs in the event of default and
| may soon decide to use their rights.
| The State Departments informant adds:
SHOULD this result the other foreign credi-
tors will push their claims and a question
similar to that in Venezuela will present
| itself, with the difference that Venezuela
to raise funds and make immediate pay
ments. while this Republic can neither pay
nor offer a guarantee"
He fears two important ports of San
Domingo will be seized and held until the
debts are paid. This would virtually
amount to permanent occupation unless the
| Monroe doctrine could be construed to pre-
vent. That is the point that concerns the
| State Department.
The letter to the department closes with
this prediction:
1.-The civil war that Is now on may soon
md, but IL will be soon followed by another
and the result will be ruin"