The sun., 1909-06-16
s,s.n sna the Old "Cuban" Debt.


There seems to be no doubt that Min
lister SoLER has been substituted for
Minister AYALA as Spain's envoy to
Cuba in order that he may press de-
mand for payment by the Havana Gov
ernment Of the so-called Cuban debt,
now amounting to more than $500, ,0Oo,-
900, the interest on which at per cent,
to say nothing OF sinking fund. would
absorb about one-half Of the insular
revenue. OF course the island cannot
afford to assume payment of the debt
and will not do so Moreover, the
United States will uphold Cuba in her
refusal, inasmuch as in the negotiations
with Spain which took place at Paris in
1898 our commissioners distinctly re-
fused to sustain Spain's exaction. The
sole effect, therefore, Of broaching the
demand at this time will be to strain the
relations between Spain and her former
colony and to render difficult the posi-
ton Of Spanish residents in Cuba.
So grossly ineduitable on its face is
spain's demand that the mooting OF it
is regarded by many persons with
amazement. At the time when this
debt was contracted and the payment
OF it guaranteed by a first mortgage on
the income OF Cuban custom houses
there was no pretence Of Disgusting the
purposes to which the proceeds would
be applied. .Avowedly the money was
borrowed in order to suppress the Cuban
uprising for independence. In the
forum of abstract justice it is absurd
to assert that the Cubans, having be-
come independent with the aid of the
United States, are responsible for loans
procured for their subjugation. Pre-
posterous, however, as the proposition
may seem at first glance, not few prece-
dents may be brought forward on its
behalf, and that is why in 1898 the pre-
ponderant sentiment in Europe's finan-
cial circles was in favor of Spain's
demand.
Some Of these precedents are quite
recent. For example, Bulgaria, while
proclaiming her independence, has not
disavowed her responsibility for pro-
portion of the Ottoman public debt,
although nothing is more certain than
that some Of the money borrowed by
Turkey was used to keep the Bulgarians
in servitude. Especially weighty in it's
bearing upon Cuba is the line of prec-
edents furnished by the Spanish
American colonies, almost every one OF
which as a condition of the conces-
sion OF independence agreed to bear a
share Of the mother country's national
indebtedness. Their example would
doubtless have been followed by the
Cubans had the latter achieved their
liberty by their unassisted efforts. At
Paris the common sense and sense
Of equity Of the American commits
sioners revolted at saddling Cuba per-
n,anently with burden which origi-
nally had been imposed against the will
and to the injury OF its inhabitants. The
position which they took was denounced
by many European financiers as repudia-
ton. There is, indeed, no doubt that
it involves the suffering Of many inno-
cent parties among the present holders
Of the repudiated securities. Before
buying the Cuban bonds issued by
Spain, however, it was their business to
examine the nature of the investment,
or, in other words TO heed the warning
coreat emptor.
So far rs the United States is con-
eerned, in the capacity of protector or
next friend, our Government will un-
questionably look upon Spains demand
for the payment Of the old Cuban debt
a. res adjudicdto. Through our COM
n,issioners at Paris in 1893 We considered
the matter carefully and once for all.
We then declined TO require the island
TO assume an obligation contracted
by Spain in the effort to keep Cuba in
slavery-and We certainly should now
decline to see the same exaction enforced
by arms.
To show how the question when orig
inally propounded was viewed by one
OF the acutest legal minds in the United
States. We print elsewhere some casual
remarks on the subject uttered in the
Sentate Chamber on April IS. 1898, by
the Hon. JOHN Colt SPooNER.