The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-03-13
PRECEDENT CITED
FOR The SENATE
Mr.. Blaine Proposed to Olstr'-
butte Venezuela Funds
WERE TO BE PAID PRO RATA
Case of Venezuela is Believed to be
Similar to That Now Proposed
to Adjust santo Do
mingo Trouble.
WERE TO BE PAID PRO RATA

Washington, March 12.-To strengthen
the hands of the republican senators who
are seeking to secure the ratification of
the pending Dominican treaty by showing
that there is precedent for the proposed
collection of Dominican revenues by
agents of the United States, among the
papers submitted to the Senate is one
containing the following account of the
part played by Mr.. Blaine, when Sec
rotary of State, in the effort to settle a
dispute between France and Venezuela:
In 1880, a difficulty arose between
France and Venezuela with regard to the
failure of the latter government prompt
ly to pay the installments due to France
on the settlement of the claims against
Venezuela, made in 1864. The Venezue-
Ian government represented to the United
States that there was danger that the
French government would institute a
blockade to take possession of customs
houses for the purpose OF collecting the
money Under the circumstances Vene-
zuela proposed to deliver certain monthly
sums to the government of the United
States, which should distribute the money
among the foreign creditors.
Favorable Consideration.
In note to the Venezuelan minister at
Washington, February %, 1881, Mr..
Evarts, who was then Secretary of State,
indicated that this proposal would re-
ceive favorable consideration, in case II
should be found to be acceptable to all
the creditor governments. Consideration
of the subject was continued by the gov
eminent of the United States after the
change of administration, when Mr..
Blame succeeded Mr.. Evarts as Secretary
of State. The chief difficulty in dealing
with the matter arose out of the fact
that France claimed a priority for her
debt With reference to this situation,
Mr.. Blaine, in an instruction to Mr..
Noyes, American minister at Paris, on
July 49, 1881 said:
Mr.. Blaine Makes Suggestion.
''Without attempting to prescribe or
dictate, the President suggests that you
will place an agent at Caracas authorized
to receive such amount each month from
the Venezuelan government as may be
agreed upon to be paid. not less than the
aggregate now paid, and distribute said
amount pro rata to the several creditor
nations Should the Venezuelan govern
ment default for more than three months
in the regular installments, then the
agent placed there by the United States
and acting as trustee for the creditor ma
tions, shall be authorized to take charge
OF the custom house at Laguayra and
Puerto Cabello, and reserve from monthly
receipts a sufficient sum to pay the stip-
ulfted amounts with ten per CEN. addi-
tional, handing over to the authorized
agent of the Venezuelan government all
the remainder collected. 1t is the judg-
ment of the President that an arm of
this kind would give all reasonable Sc
curity to each of the creditor nations,
and would be an effectual bar against
ally one obtaining any ineauitable adj
vantage over the others" (Ror Rel. 1881
121O.
This proposal failed. the French gov
eminent declining to yield its claim of
priority and arranging a settlement d.
rectly with Venezuela"