The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-08

IcHleulCH OueESu III VIC AEkoLIAAO "a
before invoking the diplomatic assist
ance Of his own Government. Senior
CALvo made no demand in the name
of international law, but put forward a
plea for forbearance in the name OF
international comfy and generosity and
Of hat advanced civilization a charac-
teristic Of which Is consideration on the
part Of the strong for the weak.
DR.. DRAGo ALSO, as DR.. SCoTT reminds
US. did not deny in the communication
addressed by him to Il State Depart
ment in 1902, the legal right Of creditor
States to compel the payment Of pecuni-
airy claims arising from the ownership
Of the bonds of a debtor State. He
merely urged Secretary HAY to announce
as an expedient deduction from the
Monroe Doctrine that although the right
so to intervene could not be disputed
in international law, the United States
could not regard with equsnimity the
exercise Of the right to interpose with
arms for the collection of a contractual
debt due by an American republic to the
subjects of a European Power. What
DR.. DRAGo seems to have dreaded at the
time was the actual occupation Of Vene-
zuelan territory for an indefinite period
until the debt claimed should be paid.
Secretary HAY replied to Argentina, it
will be recalled, and simultaneously
made a corresponding statement to the
European Powers contemplating a block
ade of Venezuelan seaports, that it was
the hope Of the United States that they
would refrain from occupying Vene-
zuelan territory. We need not say that
in the diplomatic vocabulary the express
sion Of a hope is equivalent to q COM
mand, the implication being that should
the hope be frustrated war will follow.
Il will be recalled that the European
Powers Immediately concerned did not
disappoint the hope expressed by Mr..
HAY; they forebore to occupy Venezuelan
territory, but hit upon another device
for enforcing their claims and extorted
from the Caracas Government an agree
ment that One-third OF the customs
revenues Of La Guayra and Puerto Ca
bellO should be sequestrated until the
claims Of foreign bondholders should
have been satisfied.
1t Don became patent, however, that
the precedent thus set in the case OF
Venezuela threatened Latin American
republics with consequences scarcely
less grievous than the permanent dis
memberment Of territory. For Latin
American States are largely, IL not
mainly, dependent upon customs duties
for the support Of their internal admin
istration, and they might find them
selves wholly stripped of this esource
by the logical application OF the principle
TO which Mr.. HAY had assented. For.
if we approve OF the sequestration Of
one-third OF the revenue OF two ports Of
a debtor State for ten years, with what
consistency could we-provided the debt
claimed were proportionately large
oppose the sequestration Of the whole
customs of all a debtor coun-
try's seaports for a century? 1t was, of
course, reflection on the possibly deplor-
able consequences of the Venezuela prec-
edent that caused President ROOSEVELT
to offer to rescue the Dominican Republic
from its foreign creditors by acting as
the temporary collector and apportioner
Of its customs duties.
Such was the situation when a res
olution was submitted to the recent
Pan-American Conference recommending
that the second Peace Conference at
The Hague be requested t o consider
whether, and, il at all, TO what extent, the
use of force for the collection Of public
debts is admissible" As DR.. SCorT
points out, the Pan-American Conference
could not, without stultifying itself,
have presented such a request to the
next Hague Conference, because it is
notorious that in international law the
Use of force for the collection of public
debts is admissible, and that the extent
to which force shall be used is a question
solely for the determination Of the in
dependent creditor Powers. There was,
on the other hand, no disqualification
in the resolve finally adopted by the con-
ference at Rio de Janeiro, the resolve,
namely, TO recommend to the Govern
ments represented therein that they
consider the point Of inviting the second
Peace Conference at The Hague to con-
slider the question Of the compulsory
collection Of public debts, and in gen.
eral leans tending to diminish between
nations conflicts having an exclusively
pecuniary origin" That is to say, the
inherent right of an independent creditor
Power to collect debts by force is not
disputed. On the contrary, it is assumed.
But the Powers represented at The Hague
are requested to say whether, as a mat
ter of humanity and civilization, they
will not consent to limit hereafter their
indisputable rights so far az to refrain
from using force to collect contractual
debts, substituting for force an appeal
to the arbitral tribunal permanently
established at The Hague.
There would still remain for examina-
ton the question what means should be
employed TO execute Judgment Of the
Hague tribunal in the event of a judg-
ment debtor proving unable OIL unwill-
ing to comply with its decision.
Eloquent Figures OF Progress.
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