The Birmingham age-herald., 1907-05-04
TREATY RATIFIED
 BY SAN DOMINGO Departure in United States Re- lations to Small Republics CONTROLS CUSTOM HOUSE United States Now Becomes Legally a Trustee In a Financial Sense.
 Will Discourage Revo-
 utions.
CONTROLS CUSTOM HOUSE

santo Domingo, May s.-The new treaty between the United Stales and Santo Do- mingo intended to replace the treaty which has been pending before the United States Senate for the last two years was ratified by the Dominican congress today.
 The Dominican treaty marks new de- parture from 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 becomes legally a trustee in a financial sense, and must go so far in the preser- vation of order and the accompanying Encouragement of revolutions as is in- cident to the control Of the custom house.
 The treaty really had its birth in revolution. While the American govern ment was pressing for a settlement of the claims of its citizens against Santo Do- mingo in December, 1904, President Nor ales being beset by revolutionists in the hope of securing the moral support of the United States, entered into an agree ment with Captain Dillingham; of the American navy by 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 agreement gave place March 31, 1905, to modus vlvendi which has operated up to this time. This placed an American collector in charge and provided for the deposit in New York of 55 per cent of the customs receipts for the benefit of the Dominican creditors. The modus vivendi did not save Morales from political destruction, as he was deported by the revolutionists and his vice president, General Caceres, installed as president. But the modus vivendi did lead to the deposit in New York of $3,000,00O which will now be placed to the credit of the Dominican govern ment. That government has had more available money since the modus vivendi was established than any other time in its history The Dominican government also finds itself in possession of four coast guard cutters built in the United States.
 The modus vivendi was formed after a treaty pending before the United States Senate when Secretary Root assumed office. He recast tie document. and Feb ruary 19, last. the treaty which has just been ratified was submitted to the Senate The way had been paved by an agreement between Federico Velasquez, the Dornin- ican minister of finance. and the creditors or the republic whereby the latter agreed to 50 per cent reduction in their claims if these were settled in cash.
 A New York banking house undertook to advance the money for this purpose accepting $20,O00,0O0 per cent fifty-year bonds, which will now be promptly issued Thus all of the creditors of Santo Do- mingo will be embodied in this New York firm
 The new treaty provides in It's first ar ticle for the appointment by the President of receiver of customs to collect the Dominican revenues as long as the bonds are outstanding, a period estimated at twenty to forty years. This collector is to pay the expenses of receivership the interest on the bonds and the annual sums required for mortization of the bonds. and then turn the balance over to the Dominican government. On the first day of each month he is to pay s100O00 10 the fixed agent of the loan. When the customs receipts exceed $3,000,00 annually. then one-half of the surplus shall be ap- piled to the sinking fund.