The daily morning journal and courier., 1904-05-24
DETAILS OF NEw CUBAN LOAN.

 Particulars of the Security Behind the
 New ss5,ooO,oOo Issue of the Republic
 Part of the Bonds Already Sold
 Privately, and Balance to be offered
 for Public Subscription Here and
 Abroad.
 The bonds of the republic of Cuba, which were recently secured by Amer ican bankers, have been privately sold to a considerable amount. The loan has practically unique interest in that it is the first loan issued after the acceptance by the Cuban republic of the so-called Platt amendment, embod- jed in the act of the United States con- gress under which the American troops were withdrawn from the island. The Platt amendment which was accepted in an appendix to the constitution of Cuba4 provides in Article II that the Cuban government shall not assume or contract any public debt, to pay the interest upon which and to make req sonable sinking fund provision for the ultimate discharge of which, the ordi- nary revenues of the Island of Cuba, after defrayng the current expenses of the government, shall be inadequate" It is also provided in this appendix that ''the government of Cuba shall never enter into any treaty or other compact with any foreign power or powers which will impair or tend to i'm fanir ind f5 .,1 41a that the government of Cuba consents that the United States may exercise the right to intervene for the preserva- ton of Cuban independence (and) the maintenance of a government adequate for the protection of life, property and individual liberty"
 The government of the United States has been advised by Speyer & Co. of the conclusion of the loan and of the security therefor, and has replied that 1t does not consider that there is occa- sion to object to such issue of bonds by reason of Article IT. of the appendix of the constitution of Cuba adopted pursu- ant to the requirements of the so- called 'Platt amendment
 Tn issuing the new loan, the republic of Cuba, besides the usual pledge of good faith and credit, created a special permanent tax upon different articles, such as strong liquors, wines, beers. ar tificial waters, matches tobacco sugar manent tax is to remain in force dur ing the fife os the loan or any part thereof. These taxes for the first five months of their operation, ended March 31. last, yielded $1 ,403, TOP in United States gold. By the contract which the government of Cuba con- cluded with Speyer & Go. on May H. last. the government assigned as spec ial security for the loan, to have pre- l cedence over any subsequent assign ments, 15 per cent. of the customs re- ceipts of the republic, an amount equal to which is to be paid weekly tc i Speyer & Go, in New York, or to theil agent in Havana. The customs re- ceipts of the Cuban republic for the fiscal year ended June 30, last, amount, ed to 146sS,454 United States gold, and for the nine months ended March 31 1904, they reached $12,gSS, ,046 thus showing a considerable increase over the previous year. The amortization oi the loan shall begin on March l, 1910 l the amount to be annually applied te be $1,020,000 United States gold, to bt paid by the government to Speyer Go. in monthly instalments of $S5,O0t each. These amounts are to be applied J to the purchase of bonds obtainable a or below par and accrued interest Otherwise, bonds will be drawn by 10 by the banking firm for redemption a
 par and accrued interest. The Cuban ! government also agrees, should tn 4 pledge of the customs receipts be in
 sufficient to fulfill the interest and tn l sinking fund requirements of the loan
 to set aside and pledge such additiona
 percentage as may be necessary.
 Subscriptions will be opened in Ney
 York at 10 a. m. on May 26 next b,
 Speyer & Co, Nos. 24-26 Pine street, an
 Harvey Fisk & Sons, No. 29 Nassa'
 street. Lists will be closed at 3 p. IT
 on the same day or earlier, the right be ing reserved to reject any application
 and to award a smaller amount tha,
 applied for. Simultaneous subscrip tions will also be opened in London b
 Speyer Brothers, in Frankfort-on-the
 Main, by Lazard Speyer- Ellissen, tn
 Deutsche Bank agency, and Jacob
 H Stern. and In Amsterdam by Teix
 eira de Mattos Bros. Application wi be made to list the bonds on the Ne,
 York Stock Exchange and in England Germany and Holland.
 !