Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-05-16
UNION OF REPUBLICS
Another Central American Con-
federation Proposed.
PROTECTORATE IS PLANNED
United States and Mexico Suggested
as Guardians.
PIG IRON FROM SHANGHAI
Mines Of the Country Cannot Keep
Pace With Demand-Troubles
Of Consular Agent In Cuba.
'IG IRON FROM SHANGHAI
BY WILLIAM e. CURTIS.

BY WILLIAM e. CURTIS.
Written for The Star and the Chicago Record
Herald.
1t is not at all likely that the United
States government will join Mexico In con-
solidating the five Central American repub-
lies into confederation and establishing
q joint protectorate over them in order to
prevent wars and revolutions. Secretary
Root has made that clear to the Mexican
ambassador, who, by reason Of his ia
miliarity with public opinion in this coun-
try, understands the difficulties in the way.
There is no doubt that protectorate would
be a very good thing If it could be ar
ranged, and the five republics have been ne
gotiating with each other for the restoration
Of the confederacy ever since it was dis
solved seventy-ive years or more ago.
There have been conventions and confer
ences every few years, the pigeon holes of
the foreign offices at the Central American
capitals are filed with correspondence and
drafts Of treaties on that subject, and
several times plan of union has been
formally adopted by portion of them, but
has been defeated because Of suspicious and
distrust on the part of the others.
The chief difficulty has been the selec-
ton of a chief executive. The rivalry be-
has made it impossible for any four of
them to consent that the fifth should be
placed in power. Usually when negotia-
tions are undertaken compact is proposed
by which each of the five is to have the
Office in turn, but If the term of Office is
made for years, as proposed, or even
two. some claim 1t should be, that plan
would compel one of the five to wait at
least ten years, another to walt eight and
another to wait six years for the gratifi-
cation of his ambition, and a great many
things happen down in those countries In
single year. The newspaper dispatches
from Mexico tell that President Zelaya
of Nicaragua has been selected as the first
executive of the proposed confederation,
but that is not possible. for no Costa Rican
would submit to his rule for one moment,
other countries. 1t might be possible to
find a man In Central America who would
be acceptable to all of the five states, but
1t would be very difficult to do so, and the
prefer an outsider, Mexican or a citizen
of the United States, rather than have
their president selected from one of the
rival republics.
Waste of Millions.
The most important point to be consid-
cred is the finances. The revolutions and
conspiracies that occur SO frequently in
several of the states are not inspired by
principle or by q desire to promote any
particular political or economical policy.
The leaders are usually actuated by per-
sonal motives and particularly by desire
to obtain control of the revenues and the
finances of the government. The first
thing revolutionary party tries to do is
to capture the custom houses and the rul-
ing powers never hesitate to divert funds
acquired for other purposes to the defense
of their authority. One of the ablest and
five sister republics told me the other night
that not less than 500, 100000 had been
wasted in revolutions In Central America
and much tof 1t was borrowed for public i'm
provemena. For example, the Northern
Guatemala railroad, connecting the capital
with the gulf of Mexico, has been under
construction for more than a quarter Of
century, and enough money has been bor-
rowed to build 1t five times over, but a fate
seems to hang over the project, and every
time 1t Is placed on a good financial basis,
a political disturbance will break out and
the funds borrowed for its completion will
be expended for arms and ammunition and
other military supplies.
Central American Debts.
According to the latest report Of the For
eign Bondholders Association the out
standing foreign debts of the five Central
American republics are as follows:
Costa RIGA. NEUTRALITY-SUSPICIOUS.. $13. 750. 900
sslysdor : 1882 100
SicaraSua. i,241 900
Total $l34,ZT4,90O
This does not include the internal debts,
which are several times the amounts given
in some of the countries.
The foreign debts of four of the repub-
lies have been funded in recent years, that
of Costa RIGA in June, 1908; Guatemala in
1904; Nicaragua in 1895, and the debt of
Salvodar was assumed by a railway COM
pany In 1899. The enormous debt of Hon
duras represents the accumulated interest
0iSDllte0 loans made N 1871 and 1910
amounting altogether to about twenty mil
lions The nuhlic having received no hene=