The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-01-26
BIG DEBT AS ROOT
OF DOMINICAN EVIL
DR.. Hollander Estimates the
<. Island Republic Owes
$40,000,000.
journal Special Service.

Washington, Jan. 26.-That Santo
Domingo's total debt runs considerably
in excess of any figures heretofore
given is shown in the confidential re-
port of DR.. Jacob ii. Hollander, Presi-
dent Roosevelt s special commissioners,
ment in final form. DR.. Hollander
placed the total at $40, 269,404 The
highest estimate previously made upon
this debt was that of Senator Morgan
Of Alabama, who placed it at $33,O00,-
000. In his speech in defense OF .Presi-
dent, Roosevelt s policy Senator Spooner
estimated that not more than $8,000,-
900 Of this assumed $33 100000 was
valid debt - .."s.- r.
The Hollander' report contains a his
tory of the debts incurred during each
of these accommodating periods and then
treats of the causes leading, to the j in
periodic accumulation Of current obi
cations in consequence of revolutions
and civil disorders; the. extravagant
terms upon which temporary loans were
originally obtained and have been sub
sequently funded; the chronic defaults
in the service Of the debts, funded and
floating and the consequent rapid in
crease Of principal.
Piling up the Debt. ~. ~.
3d." 90
There have been other contributory
tie republic, such as the purchase Of two
unimportant gunboats, the construction
of the Puerto Plata Santiago railroad
and the erection of a few public build
ings, but the Importance of these is
relatively slight. DR.. Hollander pre-
sents an interesting pen picture of the
revolutionary disturbances which have
been the primal cause of the republic g
financial troubles. After each revolu-
ton the dictator-president had always
to resort to borrowing. ~>... -'S
The important part which merchant
bankers have played in the troubles of
Almost invariably of foreign origin and
carefully maintaining their foreign citi-
Zenship of some equivalent connection
this SMALL but more or less associated
body, virtually controls commercial con
tact with the outside world. There may
be some high minded business men
among them, but there are also merci
less blood-sucking money sharks, whose
opportunity DR.. Hollander shows has
been the country,s prostration.
Exploited Every Crisis.
These men haye exploited every crisis
to the fullest, sometimes provoking in
surrection when it did not otherwise
exist. In their dealing with the Dor
rowers they have taken the gamblers
chance, but always fortified by the pos
session of loaded dice. -, -
Of the funded and unfunded debts i
is shown that the terms exacted' by thu
lenders were exorbitant almost beyond
realization. Evidence Of this is shown
by the Hartmont loan, as far back al
1869. The government contracted to re
ceive $1,600,000 in cash and then repay
an annuity of $294,500 for a period O
twenty-five years, total of 81 1862 800
Ten per cent month was for nearl,
twenty years of this debt accumula
ton period the ordinary rate charge,
the government by the local loan shark
for advances of current funds. Late
the rate seems to have fallen to pc
GENT month, but even upon such SAT
4asecurities astransferable custom receipt
N it has been pet cent a month, com
pounded at brief intervals.
Caceres Would Quit.
Puerto Plata, Santo Domingo, Ja1
26.-President Caceres is in Moca i
9 conference with General Horacia Vas
' quez and his friends He desires to re
sign the presidency in favor of Genera
Vasquez. Vasquez is reluctant to al
cept, but is consulting with leading me
Of his party. The main difficulty COZ
fronting the new administration is
per cent Of the revenues, altho stuff