The Washington herald., 1907-02-05
new TREATY SIGNED
SantO Domingo Believed to
Have Sealed Agreement.
CONTINUES MODUS vIvENDI
Dominican Republic TO BE Placed
Upon Firm Basis, with Prospect of
Paying on Entire Foreign Debt at
End of Ten or Twelve Years-NOw
Awaiting the Confirmation.

According to an understanding at the
State Department a treaty between the
United States and the Dominican Re
public was signed yesterday in Santo
Domingo City by Thomas c. Dawson,
the American minister TO that country.
and the Dominican foreign Office. AS
soon as the document is received in
Washington it will be sent to the Senate
as a substitute for the present Dominican
treaty. which has been pending for nearly
two years The administration has high
hopes that the new agreement, which is
much simpler in form, and does not bind
this country as closely as the old one.
will be ratified. With this done Santo
Domingo will at last be placed upon a
firm basis and with a prosperous outlook
ahead.
For a year and a half a modus vivendi
has been in effect in Santo Domingo,
which governed the collection of the Gus
toms revenues by American agents. head
ed by Col. George r. Cotton. OF the to-
tai amount collected less the expenses
Of administration, 80 per cent was sent to
the National City Bank in New York as
a part Of a sinking fund for the payment
Of the Dominican foreign debt. The re-
mainder went TO the government OF the
little republic for current expenses. In
this way about $4,000 has been placed
in the fund In New York.
Continues MOdus Vivendf.
Substantially the new treaty provides
for a permanent continuation Of the
modus vivendi. and at the end Of ten or
twelve years it is hoped that the entire
debt now fixed AT about Sl7.000,010, Will
be wiped out. In the meantime, in the
event OF the ratification Of the treaty,
there will be a bond issue Of twenty mil
lions. It will probably be financed by
Kuhn, Loeb & Co. Of New York, at sc.
With the funds derived from this issue Of
bonds. the debts will be paid and Santo
Domingo win busy itself with the re-
deeming Of the bonds.
The issue viii be for fifty years. but
the right is reserved by the government
of Santo Domingo to take up the issue at
the end Of ten years at l02ia. This ar
rangement is satisfactory both 10 the
United States and Santo Domingo. The
execution OF the scheme depends only
upon the ratification Of the treaty.
Mr.. Dawson was sent to Santo Domingo
from Washington about three weeks ago.
After two years service there he had
been called back 10 Washington and ap-
pointed minister to Colombia. The Senate
confirmed his nomination, but before his
commission had been made oct IL was
found necessary 10 have him return to
sl--
treaty. He has encountered little diff
Guilty. and a day or 50 ago telegraphed
the State Department that the treaty
would be signed yesterday.
Foreign Debt Adjudicated.
The entire foreign debt of santo Do
miuGo has been adJudicated by that gov
eminent. principally through the efforts
OF DR. Jacob II. Hollander. of Baltimore,
who was sent TO Santo Domingo as a
special commissioner Of President Roose-
welt to make a thorough investigation Of
the debt His work has been going on
for many months. The debt, amounting
10 some S50.000000. was cut down to about
Sl7,000O00. and after long negotiations, in
volving couple of trips by Dr. Hollander
TO Europe to consult foreign creditors, an
q agreement was reached among every one
concerned.
One Of the provisions OF the old treaty
was for a commission to adjudiCate the
claims against the Dominican govern
ment. There is no such provision in the
new treaty. rs Santo Domingo has already
CCOnplished the adjustment.
Officials of the government here are well
satisfied with the conditions in Santo
Domingo. For weeks there have been no
signs Of a revolution. and there Is not an
American way ship in the vicinity Of the
republic. For two years it was consid-
cred necessary to have several American
mcn-Of-war scattered around Dominican
waters.