Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1903-12-18
Tn. co,ombi. Debt Question.

ne COLOMBIA hftA Rhf1AANhs
The lsthmian complications have Civ
on rise 10 a rather interesting ques-
Con touching the moral aud l'-al obi
esyion Of the new republic IL fausrla
20 pay some portion 81 tie national
esbt Of Colombia. Foreign holderS of
Colombian bonds insist that Panama
should assume share Of the debt
which was contracted while the 18th
mian state was part OF the govern
nent. There is a general assumption
On international law that when a IA
ton is dismembered and new sOver-
signify is created out Of the part ~
moved the debt and obligations OF the
parent nation should be ratably dis
tributed. This is not. however, an cs-
tablished principle. and in the case of
Colombia there is no fixed rule or Gus
tom or concurrence Of precedent which
would justify her creditors in demand
ing as a matter of right that Panama
assume a share of the debt. The au-
thorities on international law are not
In agreement. Kent says:
In the event OF state being divided into
two or more independent sovereiguties 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
4 portion Of its territory which is erected
into an entirely distinct political COM
munity. The cogent 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 50 a STATE
that is SO dismembared as to suffer no
loss of identity remains bound as before
for its entire gel erai Indebtedness. such
n change" Halleck says, mo more af-
fects its rights and duties than change
in It's internal organization or in the per-
sop of its rulers This doctrine, applies as
we'll to debts due TO as well as from for
etRn states and to its rights of property
and treaty obligations. except SO FAR as
such treaty obligations may have par
ticular reference to the revolted or dis
membered territory or province In 9TH
or words, the old state continues its cor
porate life without interruption, 1t re-
tains all general state property and all
general benefits resulting from treaties,
with full liability for general obligations,
with which the new creation taken from
its side may disavow all legal connection.
The new state, on its part, carries with
II only local obligations.
Precedents created by the practice of
nations, however, count for more than
the opinions of writer's on international
law. The New York Times cites a
number of these precedents which are
of timely interest 1t says:
When Sweden and Norway were divid-
ed. each assumed it's proportionate share
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 by the
new state. In taking Alsace and Lor-
raine Germany took with them no obli-
cation to pay any part of the French
debit instead she exacted an enormous
cash indemnity in addition to the terri
torial loss she inflicted on her conquered
foe. In the treaty of Guadalupe Hidalgo
which concluded our war with Mexico, VIZ
took over New Mexico and California anC
agreed to pay for the territory the sun
Of 100000 and to pay also American
claims against Mexico, but we assumed
no part of her debt. In the peace con
ference at Paris at the end of the wal
with Spain the Spanish commissioners la
bored for days to persuade our commits
sioners to accept on behalf of the United
States the obligation to pay what they
called the Cuban debt, amounting to abou
$40, 900, 900. They insisted that the Cuban
debt was separate from the Spanish debt
that It had been incurred for Cuban pur
poses and, to use phrase now becom
current ran with the land" The Ameri
can commissioners refused to have any
thing to do with the Cuban debt first, be
cause in the peace protocol of Aug. l
Spain had agreed Internationally to relin
Quish her sovereignty over Cuba, and, sec
Ond, because the debt had been INQUIRE,
without the consent of the Cuban peopl
and really not for their benefit, but 70
their oppression.
While the cases cited are not all par
allel with the Panama case, the gen
eral principle seems to be that by tn
fact Of the revolt and secession of tn
1sthmian state Colombia is not relieved
Of any part of her debt and that tn
new republic is not legally bound to as
sumo any part of it. AS "a matter o
equity, however, there is good groun
for the contention that Panama ough
to assume an equitable share Of til
obligation to pay the Colombian bono
particularly as PanaD,a shared Target
in the benefits accruing from the loa
and Is by virtue Of its resources an
situation better able to pay its ra
able portion of the obligation tina
other sections Of the country. Th
matter is one in every way appropriat
for reference to The Hague tribunal, t
which 1t should be sent for arbitration
The disposition made of the questio
will be watched with no little interes
in this country.
The musical critics insist that Patti
high notes do not come easily. Mos
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