The free lance. (Fredericksburg, Va.) 1885-1926, 1903-12-31
The Colombia Debt Question,

The isthmian complications have CIV
en- rise 10 rather interesting ques-
ton touching uic moral and legal oblI
CATION of the ncw republic OF Panama
to pay some portion or the national
debt Of Colombia 'oreisn holders of
Colombian bonds Insist tbat Panama
should assume share of tile debt
which was contracted while the 18th
milan state was part OF the govern
mcnt. There is a general assumption
In international law that when ma
lion is dsmembercd and a new sover-
signty is created out of the part re-
moved the debt and obligations Of the
parent nation should be ratably dis
tributed. This is not. however an es-
iablished principle. and in the case OF
Colombia there Is no fXcd rule or Gus
tom or concurrence Of precedent which
would justify her creditors in demand
ING as matter Of right that Panama
assume share Of the debt The au-
thorlties on international law are not
in agreement Kent says:
In the event Of a state being divided into
two or more independent sovereignties the
obligations which had accrued TO the
whole before the division are ratably
binding on the different parts.
The more modern views are thus
summarized by Taylor:
A narrower and more technical rule pre-
walls when the parent state IS deprived OF
"A portion Of It's territory which Is erected
into an entirely distinct political com
munity. The cogcnt reasoning In such a
case is that as a man who loses an arm
or a leg IN battle is not thereby relieved OF
any part OF his obligations so a state
that is so dismemhered as 90 suffer no
loss OF Identity remains bound as before
for It's entire general indebtedness. 'such
a change" Halleck says mo more ar
fects its rights and duties than change
I'm its internal organization or In the per
son OF its rulers. This doctrine applies as
well to debts due 10 as well as from for
eigu states ana to IT'S rights OF property
and treaty obligations, except 50 tar as
such treaty obligations may nave par
fIrWIaT reference 20 Aif AfN NANNN W H'N
menbared territory or province In 9th
er words. the old state continues It's cor
porate life without interruption, II re-
tains all general state property and all
general benefits resulting from treaties
with full liability Tor general obligations
with which the new creation taken from
its side may disavow all legal connection
! The new state. on its part, carries with
| IL only local obligations.
Precedents created by the practice OF
nations. however, count for more than
the opinions Of writers on international
law. The New York Times cites q
number Of these precedents which are
OF timely interest. II says:
When Sweden and Norway were divid-
ed. each assumed It's proportionate snare
| Of the public debt. This was the case also
when West Virginia was taken from the
| state OF Virginia. but the obligation then
assumed has never been discharged oy lhe
new state. In taking Alsace and Lor-
| raine. Germany took with them no oon-
| eation to pay any part OF the freneh
debt; instead, she eXacted an enormous
cash indemnity I'm addition to the terrl-
| torial loss she inflicted on her conquered
Zoe. In the treaty Of Guadaloupe fiidaigo'
which concluded our war with Me@ico, we
took over New Mexico and California and
| agreed to pay for the territory the sum
! OF SIS 100000 and TO pay also American
! claims against Mexico. but We assumed
| no mart OF her debt. In the peace con
ference al Paris at the end OF the war
with spain the Spanish commissioners Ia
bored for DAYS to persuade our commis-
sioners 10 accept on behalf OF the United
States the obligation 10 pay what they
called the Cuban debt, amounting to aoou'
$40 OOOOOO They insisted that the CUBAN
debt was separate from the Spanish DEBT
that Il had been incurred for Cuban pur-
poses and, to use phrase now become
current, ran with the land" The Ameri-
can commissioners refused to have any
thing to do with the Cuban debt hrst, be-
cause In the peace protocol OF aug.
Spain had agreed unconditionally 10 reiih-
ouish her sovereignty over Cuba, ana sec
oDd. because the debt had oeeh lhcurlSu ',',l
without the consent OF the Cuban people
and really not for their benefit. but for
their oppression.
While the cases cited are not all par
allel with the Panama case, the gen
eral principle seems TO be that by the
| fact OF the fefOll anu stScS9iO" VI -
isthmlan state Colombia is not relieved
of any part of her debt and that the
new republic is not legally bound to as
sumo any part Of 1t. AS a matter ol
: equity, however, there is good ground
2 for the contention that Panama ough
to assume an equitable share OF th'
obligation TO pay the Colombian bond
particularly as Panama shared largely
. in the benefits accruing from the LOAF
: and Is by virtue Of its resources an'
! situation better able TO pay It's rat
able portion of the obligation thai
other sections Of the country. In
+ matter is one In every way appropriat
for reference to The Hague tribunal U
which It should be sent for arbitration
rhe disposition made OF the question
o will be watched with no little interes
a In this country.
: With thanks for your very liberal pa
zr~fonoa a yer