New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-11-27
CUIBA'S FRENZIED FINANCE
NEARING DANGER POINT.
United States VIII Not Enforce
Payment of Proposed Loans.
LFRoM rHE TRIRUNE RUREAr. |

Washington Nov 26.-Some official concern is
manifested in Washington over the apparent
disposition at Havana to increase the bonded
Indebtedness of Cuba beyond the point indi-
Gated by conservative business principles, and
it is wondered whether those American finan-
ciers who are reported to be facilitating the
increase of the Cuban debt understand that II
this policy is carried TO point where the island
finds itself unable to meet its obligations the
United States cannot be relied on to compel
uouidation by means of the authority vested In
this country by the Platt amendment.
That President Palma is alive TO the danger
of Increasing the Cuban debt is shown by his
message to the Congress which met on NoVem-
her : in which he said that to settle the army
claims I'm full at once would require S2S.OOO-
600 in addition to the S:}5,oo0.O00 already bor-
rowed but declared that Cuba is in no way pre-
pared to CO rry such loan in view OF its ool-
CATION 10 the United States not 20 contract a
debt il, excess of its ability TO pay the interest
from the regular revenues of the country. Pres
ident Palma shows, moreover. that OF the total
funds in the national treasury since April
last one-third was required to defray the in
terest on the present S35.OOOO00 loan. The
President suggested. however. that the diff
cultv might be overcome by efecting loan
for a long term of years at low rate OF IN
terest-3 per cent-which the government could
be authorized TO sink after twenty-five years
or to Iiquidate sooner If the means became
available As the interest charges and the sink
ing fund of the present loan absorb all the ex-
isting revenues above the regular charges of
administration. President Palma points out that
any loan would compel an increase of taxation
II is interesting to note that while the budget
for the coming year will amount TO S16oO0VOo,
tho nolicies outlined by President Palma will
make necessary an increase Of - per cent. thus
bringing the prospective total disbursements
for the following year up to 500 OO0O00.
Under these circumstances the introduction in
the Cuban House of Representatives yesterday
of a bill authorizing a loan of S2S,Jo0.OO at
! per cent TO pay the remainder of the army
claims cannot but be regarded by those who
have +he best interests of the republic at
heart as i'll advised. They regard it as menace
70 Cubas financial integrity and perhaps
tcopardizinE the interests of those who advanced
the original loan of S55.OO00o0. 1t is appreci-
ated that the suggested loan has no evidence OF
receiving the formal sanction of the government
especially the bill provides for interest at the
rate of 1 per cent but it is further noted that
Havana dispatches say the proposition seems 10
ba Dronpted by spectators who have bought up
the soldiers claims, and it is feared that the m
fuences which prompted the introduction OF the
hill NAV prove sufficiently strong TO procure lis
enactment il attention is not called TO the 1act
that the United States cannot be counted on 70
enforce these claims if the Cubans are beguiled
INTO an extravagance they can i'll afford.
Moreover If the report that New-1ork speCu-
1ators have acquired a large number of soldiers
! claims proves true such increase of prosperity
| as might come from the distribution in Cuba of
| the proceeds of the new loan would not result
| as the money would never reach Cuba,