Bisbee daily review., 1907-03-10

negotiate loan. but created extraor- dinary revenues for the payment of interest and sinking fund as stamp du- ties on cigarettes, matches and liq- uors, which the Spanish government never tried to levy. "
 The general belief was that the United States government would re- mind Cuba of tho Platt amendment and save the island from a debt 90 heavy, in spite of the veterans" wno, soon after the law was passed, began to hold turbulent meetings. Some say that Palma expressed to Washing ton his fears that a revolution was likely if the Cuban army should not be paid. but whether this happened or not, the truth is that the Cuban presi- dent was put in a difficult position. He tried to put off the loan as long as he could. but finally yielded before an ultimatum sent him by the 'veter- ans" He opened negotiations with bankers in Europe and America, and on November 19. 1903, sent congress message, asking notifications in the loan act, one of these pledging fifteen Der cent of the custom revenues be- sides the extraordinary revenues spe- cially created for the loan.
 A stumbling block which Palma found in his negotiations with Euro pean and American financiers was ar ticle of the Platt amendment, which read:
 1 The said government of Cuba shall not assume or contract any public debt to pay the interest upon which 1 and to make reasonable funds provis- ion for the ultimate discharge of which the ordinary revenues of the island, after defraying the ordinary expenses of government, shall be in- adequate"
 Bankers required the approval of the United States for the loan, and Palma said it was beyond his power to ob- tain it. The loan was at last con-
 tracted with Speyer & Co, of New York. How the difficulty about the amendment was disposed of Is shown in this letter, included by Speyer & Brothers of London, in their prospec.
 tus of May 21, 1904. That prospectus says:
 Secretary Hays Letter.
 "The government of the United States has been advised by Speyer & Co. of the conclusion of the loan and
 of the security therefor, and has re piled as follows:
 Department of State, Washington, February 27, 1894.
 'Gentlemen-The president has re
 ferred to me your letter of February
 24 and enclosures as stated.
 You refer to the fact that the gov ernment of Cuba has authorized the
 president of the republic to issue bonds for foreign debt for an amouni not to exceed thirty-fiye million dol
 lars in gold in money of the United States. bearing interest at the rate O five per cent per annum, to be retired within forty years; that neogtiationi have been for some time pending be
 tween the government of Cuba ant yourselves for the purchase of thes bonds, and preliminary agreemen l has been made between yourselve
 and the president of Cuba, copy o 1. which you enclose.
 "'You ask whether the Unite , States government deems the propose . loan to be in conformity with the COT f stitutional provision that the ordinar , revenues of the island, after defrayin f the current expenses of the govern ment, shall be adequate to the pay
 ment of the interest and the sinkin , fund provision for the discharge of tn i loan.
 ,' The president desires me to say 7 in response to your question, that thi }, government does not consider tha T there is occasion to object to such fl $ sue of bonds by reason of article c et the appendix to the constitution c : Cuba, adopted pursuant to the require D ments Of the so-caIled Platt anant I- ment l am, sirs, very truly Il Your obedient servant,
 (Signed) JOHN HAY" Mess. speyer 6 Co., 24 Pine St e New York"
 n After the bonds were issued the Cl l. ban soldiers were not paid immediat, r. ily. An army of usurers invaded tn n Island, buying their claims, and as th
 igovernment delayed the opening ( '. payments. the soldiers sold out to th . usurers at heavy discount, Man ii of the veterans" who had made $ r much noise about the hercism of tn > soldiers helped the usurers. acting g 1- their agents and using their influenc 4 over the ignorant men to make tbel s sell at twenty per cent of the fac . value of their claims and sometime at much less.
 Claims Largely False.
 But in the majority of the cases tl
 claims were falsified, as no such nun Il Der of Cuban soldiers ever existe t. and the deE was carried out in par 0 nership with notaries, who identifie