Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1907-05-09
A TREATY RATIFIED
The Dominican Republic Has Taken
Favorable Action Regarding
Financial Settlement.
MARKS A new DEPARTURE
The United States Practically Become.
5ondsman for the 'lsIand Collects
lts Revenues and Pays
mi lts Bonds.


lts Bonds.
Santo Domingo, Republic OF Santc
Domingo. May 4.-The new treaty be
tween the United States and Santc
Domingo, intended to replace the
treaty which has been pending before
the United States senate for the last
two years, was ratified by the Domini'
can congress Friday.
Washington, May 4.-The Domini'
can treaty marks new departure In
the relations Of the United States to
the smaller republics Of the Western
hemisphere for, In the case Of Santo
Domingo, the United States now be-
comes legally trustee In financial
sense, and in the discharge Of its new
duties must go SO far in the preserva-
ton Of order and the accompanying
encouragement of revolution as is In
cident u the control Of the customs
houses and the collections Of the re-
publics revenues.
The treaty really had Its birth in
revolution. While the American
government was pressing for a settle
ment Of the claims Of Its citizens
against Santo Domingo in December,
1904, President Morales being beset by
revolutlonists, In the hope of securing
the moral support of the United
States, entered into an agreement
with Captain Drillingham Of the
American navy under the terms OF
which the Dominican custom houses
were to be occupied by the Americans
and the foreign indebtedness of the
country discharged from the receipts,
Rejected at Washington, this agree
ment gave place March 81, 1905, to a
modus vivendi which has operated up
to this time. This placed an American
collector in charge and provided for
the deposit in New York Of So per
cent of the customs receipts for the
benefit of the Dominican creditors.
The modus vivendi did not save Nor
ales from political destruction, for he
was overcome and deported by the
revolutlonists and his vice president,
General Caceres, installed as presi-
dent. But the modus vivendi did re-
suit very beneflcially so far as the
little republics finances were con-
cerned. For not only did 1t lead to
the deposit in New York Of 100000
which will now be placed to the credit
of the Dominican government. but that
government has had more available
money during the period of operation
OF the modus vivendi than at any 9TH
or time In It's history. This state OF
affairs resulted from a more economi-
cal administration, the suppression OF
and the announcement OF
business. The Dominican government
also finds itself in possession Of four
fine coastguard cutters built In the
United States and forming an effec-
live force for the protection of the
customs revenues and available for all
public uses.
The substance Of the modus vivendi
IN the shape OF treaty pending before
he United States Senate when Secre-
.ary Root assumed office. Recognize
ng the force OF the objections that de-
7eloped TO its ratification, he set
bout recasting the document and
February 10 last the treaty which has
ust been ratified was submitted to
he Senate. The way had been paved
" an agreement between Federico Vel
lsquez, the Dominican minister Of r.
lance, and the creditors Of the little
epublic whereby the latter agreed to
fifty per cent reduction In their
Iaims II these were settled In cash.
| New York banking house undertook
. advance the money for this pur.
,ose for the S20,000,000 five per cent
V-yedr DOuub WHlCu WAA INV w
romptly issued, with the result that
II Of the creditors Of Santo Domingo
Ill be embodied in the single New
'ork firm.
The new treaty provides for the
ppoIutment by the president Of the
;nIted States Of q receiver Of Gus
pms to collect the Dominican reve-
ues az long as the bonds are out
landing, a period variously estimated
t from 20 to 40 years. This collector
TO pay the expenses Of receivership, !
he interest on the bonds and the an :
ual sums required for amortization
the bonds and then turn the remain.
or Of the receipts over to the Domini-
IN government. On the first day Of !
ach month he IL to pay 100000 TO +
le fiscal agent Of the loan. II the
lstoms receipts exceed 100000 an Y
ually, then one-half Of the surplus 4
iall be applied TO the sinking fund. a