Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-17
URUGUAY PROSPEROUS.
Internal Improvements Contemplated
in the Refunding of Her Debt.

Irrusuay has about decided to convert her
0 per cent bonds, to the amount OF S3l No.
$50. into per cents the new issue being
made at 90, free of any further expense TO
the government Arrangements have al
ready been effected for floating the con-
verted loan in Paris and other European
financial points. the measure now only
awaiting the official sanction of congress.
The saving is to be devoted to internal i'm
provements, including the founding of ma
tfonal veterinary school and national agri-
cultural college. It is stated that DE- ). Il:
Salmon, formerly chief of the bureau OF
animal industry of the Department OF
Agriculture In this city, will In all probable
ity have charge of the new college. Mr..
Bermudez the charge of Uruguay. says
that DIR. Salmon's application has already
been presented to the president of the re-
public accompanied by the recommendation
of Secretary Wilson, and while there are
also several other applications for the posi-
ton before the government, 1t Is likely that
DR. Salmon will be the man selected.
The scheme for the conversion OF the
Uruguay bonds has been contemplated by
the government for several years, and II
was referred to in the presidential message
of 1904, when the revolution required the
most of the governments attention Since
then the internal condition of the country
has materially improved, and President Or
donez has transmitted to the congress or
proposed measure and pointing out the lines
along which it can be best effected
The mechanism of the operation IS simple.
The per cent bonds will be converted al
par into other bonds bearing interest at
per cent.
Ehe bondholders accepting the conversion
will receive, in addition 10 the . per cent
bonds annually issued, bonus III cash at
tile rate of So for each 500 face value of
the bonds exchanged.
This Is equivalent TO secure Tor three
years the interest of per cent If there IS
a bondholder unwilling TO accept the con-
version the value of his bonds shall be paid
to him.
The message Is accompanied by copy of
the new bill which gives all the technical
details of the new loan. There is also
long section of the presidents message de-
voted to showing that the conversion IS on
much more favorable terms than any grant
ed recently to other South American repub-
Hes mention being made specifically of Bra
gill Peru and the Argentine, with history
of each of the loans with which 1t IS de-
signed TO compare the present conversion.
There is q provision in the b.ll for a l per
cent sinking fund for the amortization of
the debt. One of the provisions of the bill
is for the setting aside OF a certain per-
centage of the customs receipts to pay the
interest and provide for the sinking fund
But an agreement has already been entered
into between the Bank of the Republic and
the Bank of Paris and the Netherlands,
which Is to handle the loan, that the depos-
It's shall be made I'm the Uruguay National
Bank and that the transfer of such money
to Europe is necessary to pay the in
tePeSt the bonds held there shall be
made in the manner most favorable to Uru-
quay. Provision Is also made that there
shall never be any foreign administration
of the customs in order TO assure the proper
setting aside of the money to meet the obi
cations in connection with the bonds.