The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-12-11

OF interest. nor is the time fixed for
ultimate redemption Of the bonds
Assuming that a-succeeding Cuban con-
sress may recognize the validity of this
interior debt il Is becoming apparent
rapidly to those familiar with Cuba :
finances that the ordinary revenues OF
the island. after defraying current eN-
penses, will not be adequate 10 pay the
interest ana principal of the debt. IL is
this which constitutes d violation OF the
treaty with the United States, This
treaty which in this particular is iden-
teal with the Plat amendment, provides:
THAT said government shall not as
sumo or contract any public deot 10 pay
the interest upon which and 10 make
reasonable sinking fund provision for the
ultimate discharge OF which the ordinary
revenues OF the island after de-
fraying the current expenses Of govern
ment, shall be inadequate
Under the prosperous conditions which
have prevailed ia Cuba for several years
past, with big crops and high prices for
sugar, there probably would be no DIFF
uculty ia providing Tor the eNtingulsh-
ment OF the debt IN question. provided
the government exercised ordinary econ
oIny IN expenditures.
curtaiiment Of Income.
But the price OF sugar has fallen TO
such an extent that the income OF the
people will be curtailed several millions.
Ihls means shFinkage in imports and
a corresponding shrinkage IN customs
IN the face, the Cuban government Is en-
ter1ng upon extraVagdnt schemes cali
ing for more money than the ordinary
revenues Will meet. The crisis will come
when default is made in the payment
Of interest on the interior debt"
That the Cuban congress was aware
II was in danger OF violating the Platt
amendment Is shown IN The SuDterIuge
by which il attempted to make il ap-
pear that the interior debt" is purely a
domestic affair, instead of d public
debt The impression sought to be con-
veyed was that these bonds would be
given to soldiers of the liberating
army when. in fact, the Cuban con-
gress knew that The soldiers claims were
already hcld il large part by foreign
money lenders, The bill as passed pro-
VideS that the bonds shah be given TO
creditors. thus revealing the fine Ital-
Ian hand Of the money lenders. whose
the tendency Of the bill
An attempt may be made by a subse-
queut congress in Cuba 10 repudiate this
debt on the ground that il was not con-
tTacted according 10 the constitution.
Foreign holders Of the bonds in that
event VIII turn to their governments for
assistance. and Imminent peril Of for
elgn intervention IN Cuba VIII be a
natural consequence. Al such a june
ture, If not before. the United States
VIII be forced 70 take c0gniZance Of tho
uagrant violation OF its treaty obliga-
tons by Cuba.
If the Cuban government should rec
OsnlZe the validity Of the bonds, it viii
be in no better shape if il pursues the
course it has mapped out. and the Ameri
can holders of the bonds will not be
slow in Indicating the violation of the
Platt amendment. There is no escape
from the dilemma except by immediate
Ietrenchment and reform in Cuba. Tn
fortunately, there IS no prospect Of this.
me headlOng course OF the Cuban gov
eminent Is 20 continue, apparently, uu-
Ill complication and disaster force the
United States TO take control of its al
fairs.