The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-12-11
CUBA Is FACING
FINANCIAL RUIN
MOney-Lending Sharks Hold the
Island by the Throat.
SOLDIER GRAFT RAMPANT
WORKED WELL ONCE AND HAS
BEEN REPEATED.

aster In recent financial legislation
the Cuban congress ignored the cOnsti-
tuition Of the republic and paved the
way TO violation Of the Platt amend
ment. President Palma became IA party
20 the disastrous policy, after feebly
protesting against it, aud yesterday the
first steps We're taken to carry it into
effect.
The fun force of the new policy may
not be felt for several months but if
The Cuban government persists in its
course 4 is inevitable that the United
States will be compelled to call halt
The state department Is fully informed
of the situation, and Secretary Root
may have sent warning before this that
Cuba is on dangerous ground. II he
has done so, his hint has not had any
perceDtible effect.
4 weak and eXtravagant government.
a hungry and sWarming 'army OF lib
Grafton" and rapaciOus American and
foreign money sharks. using question
able If not corrupt, methods in sad
ding debts upOn Cuba, are the ele-
ments whose combined operations, if
continued, win result in Intervention
hy the United States.
Condition Was Foreseen.
a state of affairs apprehended and
partly foreseen by the United States
senate now exists. II was 70 preserve
the indeUendence of Cuba that the
Plat amendment was incorporated into
the Cuban constitution, and also en-
bodied i'm a treaty that is now the SUI
preme law Of bO-h lands. Under au-
thority of this treaty, the United States
VIII sooner or later be forced To inter
pose 20 save Cuba from financial ruin.
Unless such interposition is made. there
VII bB danger Of Intervention by for
ctgn nations acting in behalf of cred
itors. and the United States may be
compelled to assume a fiscal protec-
torate over Cuba, as Il has over Santo
Domingo.
When the Cuban government issued
its $4,000. 600 loan. of which about S2S,-
500, 000 was devoted to the payment of
back pay To the mysterious horde des-
ignated soldiers Of the liberating
army" it was announced that This sum
would be sufficient TO pay this army
III full for all claims. The bond issue
was made under the Plat amendment,
aud is thought to be perfectly valid
The hungry and swarming army got
Very little of the money. however. most
of the soldiers having disposed of their
claims TO foreign sharks at 20 to 80
cents on the dollar
Last year by some hocus pOcus Of
high finance, sad 10 have originated in
the brain of American mOney-lenders.
IL was discovered that the soldiers
had not been paid in full. The SOS 500, -
O00 represented only 90 per cent of their
claims, it apneared They We're enti-
tied 20 S2S.500, 000 more This was a
pretty stiff demand upon a country that
had only three or four millions of un-
whose debt-cOntracting powers We're
handicapped by the Pfatt amendment
President Palma oDposed another pro-
posed loan, and insisted that the treas
urV could not stand the strain. He
said there was not enough money even
To- purchase uniforms for the rural
guard.
Buying Up Claims.
But the presidential election was
coming on and "a big proportion of the
voting population was composed of the
shHdOWy army of liberation The
money lenders were busy buying up
soldiers claims at few cents on the
dollar. When they had cOrralled
enough OF these claims 10 make it
worth while they brought their ener-
gies TO bear upon the Cuban congress
=
foI a new bond issue,
To evade the Plat amendment. it
was proposed that the new Issue should
be called an interior debt" President
Palma declared that the Plat amend
ment prohibited the assumption of any
public debt" whether domestic or
foreign. The reply was that any man
opposing the payment of this honest
debt 10 the soldiers of liberation"
would De swept out of power Palma
capitulated, rather than lose the pres
idency.
The constitution Of Cuba. in confer
ring power upon the congress to con-
tract loans, provides: 1T (cOngress)
shall be under the obligation of decid
ing what permanent revenues shall be
necessary for the payment of the inter
est and redemption thereof. All action
relating TO loans shall require two
thirds of the votes of the total number
of the members of each co-legislative
body"
In spite OF this provision. the Cuban
house OF representatives. passed the
bin providing Tor the interior debt
with "a bare quorum present, and by q
viva vOce vote. Less than twO-thirds
Of the senate passed the bill through
that body. on Aug. q last. President
Palma signed the bill and it became a
law"
Again the Soldiers"
In brief, this law provides that the
president Of Cuba, ninety days after It's
PRONUNCIATION. shall use the surplus
IN the treasury for the payment of
"the payment of the 80 per cent bal
auce due the soldiers Of the liberating
army" The act reserved S. 600, 000 for
government expenses. and certain other
money in the treasury, amounting TO
several millions was exempt from the
fund Al the disposal of the president.
The recent treasury statements showed
that there was about 5000 900 in the
treasury which would leave S1400000
or Sl5,OOO 00U available FOR the pay of
the soldiers.
The act further provided that cred
itors' not soldiers this time, but -Ted-
itOrs-shOuld De given bonds of the in
terror debt" TO complete the payment
of the 80 per cent balance due the sol
diers. these bonds to bear per cent
interest, payable semi-annually. The
total amount OF the bond issue depend
ed upon the amount % the surplus ia
the treasury that could be devoted TO
payment OF soldiers claims
4 cablegram from Havana yesterday
announced that the payment of sol-
diers claims was begun on Dec. 4. and
that SlgOO9.O00 was available in the
treasury for that purpose The re-
manning $1,000 900 said the dispatch.
would be paid in ''iuteriOr-debt" bonds.
There is Eeason 20 suspect the .authen-
ttc4tv 81 tIeSH figures. since tho lasL
TREASURY statement Indicated that not
over Sl5eGl.J would be available for the
soldiers claims win the PROBABILITY than
juc SuIn would not exceed Si10NCJJ or
$4,000 The aF-rcGate of the ques-
ticuab.e bond issue according to reii-