The daily morning journal and courier., 1905-02-17

been subjected at the hands of the suc- cessive governments of Santo Domingo in the collection of their just claims, and intimating that unless the Domini- can government should receive some assistance from the United States in the way of regulating its finances, the creditors governments in Europe would be forced to resort to more effec- tive measures of compulsion to secure the satisfaction of their claims.
 If the United States government de- clined to take action and other foreign governments resort to action to secure payment of their claims, the latter would be entitled, according to the de- cision of The Hague tribunal in the Venezuelan eases, to the preferential payment Of their claims; and this would absorb all the Dominican reve- nues and would be virtual sacrifice of American claims and interests in the island. If, moreover, any such ac- tion should be taken by them, the only method to enable them to secure the payment of their claims would be to take possession of the customs houses and considering the state of the Donin- ican finances this would mean a defi- mite and very possibly permanent occu- pation os Dominican territory for no period could be set tv the time which would be necessarily required for the payment of their obligations, and un- liauidated claims. The United States government could i1ot interfere to pre- vent such seizure and occupation of Dominican territory without either it's self proposing some feasible alternative in the way of action or else virtually saying to Etiropeona governments that they would not be allowed to collect their claims. sEs'.-
 This would be an unfortunate atti' tude for the government of the United States to be forced to maintain at pres ent. It cannot with propriety say that it will protect it's own citizens and in terests, on the one hand, and yet on the other hand refuse to allow other governments to protect their citizens and interests.
 The actual situation in the Dominican republic cannot perhaps be more fore ibly stated than by giving brief &C., count of the case of the Santo Donin' go Improvement Co.
 From 1869 to 1897 the Dominican gov- ernment issued successive series of bonds, the majority of which were in the hands of European holders. Sue cessive issues bore interest at rates ranging from 2 3-4 to per cent, and with what commissions and other de auctions, and the havy discount in the market, the government did not prob- ably receive over 50 to 75 per cent. oi their nominal value. Other portions of the debt were crated by loans, foi which the government received only one-haIf of the amount 1t was nomin ally to repay, and these obligations bore interest at the rate of 1 to 2 per. cent a month on their face, Some of them compounded monthly.
 The improvidence of the government in it's financial management was due to it's weakness, to it's impaired credit and to it's pecuniary needs, occasoned by frequent instructions and revolu tionary changes, and by its inability to collect it's revenues.
 In 1888 the government, in order to secure the payment of an issue of it's bonds, placed the custom houses and the collection of it's customs duties. which are substantially the only reve. nues of the republic, in the hands of the West Endorps, bankers of Amster- dam, Holland.
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