The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-01-26
BIG DEBT AS ROOT
OF DOMINICAN EVIL
DR.. Hollander Estimates the
L Island Republic Owes
$4o,ooo,ooo.
Journal Special Service.

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 H. Hollander, Presi-
dent Roosevelt S special commissioner,
which has reached the state depart
ment in final form: Dr.. HIGHLANDER
placed the total at $40, 1863 ,404.83. The
highest estimate previously made upon
this debt was that of Senator Morgan
of Alabama, who placed it at $33 ,O0O,-
O00.- In his speech in defense Of Presi-
dent Roosevelt s policy Senator Spooner
estimated that not more than S,0O0,-
600 of this assumed $33,O0O,0OO was
valid debt.
The Hollander, report contains his
tory of the debts incurred during each
of these accommodating periods and then
treats of the causes leading to the in
debtedness. These are, three: The
periodic accumulation Of current obi
cations in consequence of revolutions
terms upon which temporary loans were
originally obtained and have been sub
sequently funded; the chronic defaults
Fin the service Of the debts, funded and
floating and the consequent rapid in
crease Of principal. 49, e.. r
Piling up the Debt.
There have been other contributory
factors in piling UP the debt of the lit.
tie republic, such as the purchase Of two
| unimportant gunboats, the construction
of the Puerto. Plata-S Santiago railroad
and the erection of 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
financial troubles. After each revolu
ton the dictator-president had always
to resort to borrowing. 49,. ~. T..
The important part which merchan
bankers have played in the troubles 0;
the republic is graphically presented
Almost invariably of foreign origin AM
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 ma
be some high minded business me
among them, but there are also merci
opportunity DIR. Hollander shows ha
been the country's prostration.
Exploited Every Crisis.
These men haye exploited every crisi
to the fullest, sometimes provoking il
surrection when it did not otherwis
exist. In their dealing with the boz
rowers they have taken the gambler
chance, but always fortified by the POI
session of loaded dice. T.. >
| Of the funded and unfunded debts :
: is shown that the terms exacted' by til
lenders were exorbitant almost beyon
realization. Evidence of this is show
by the Hartmont loan, as far back {
1869. The government contracted to r
ceive $1,600,000 in cash and then repa
an annuity of 1884, 800 for a period {
twenty-five years, a total of 1882, so
: Ten per cent a month was for near
1 twenty years of this debt accumul
: ton period the ordinary rate charge
, the government by the local loan shar]
n for advances Of current funds. Lat
: the rate seems to have fallen to 5 p
> cent month, but even upon such sa
securities as transferable custom receip
: it has been 2 pet cent a month, COZ
pounded at brief intervals.