The Richmond palladium and sun-telegram., 1911-07-02
new ORLEANS SEES
THE LIGHT FINALLY
fires of Reputation as Revo-
lutionary Center of West
ern Hemisphere.
az SYDNEY ESPEY.

New Orleans has finally seen the light,
and wishes to remove the revolution
making center OF the Western Hemi-
sphere. The evidence upon which this
cinclusion is based is the receipt OF
set OF resolutions, signed by 1000
business men of New Orleans, indors-
ing the conventions now pending In
the senate, providing for loans to be
made under government supervision,
TO Honduras and Nicaragua by Ameri-
can bankers. These conventions. IL Is
believed by Secretary OF State Knox,
81 put into effect, will put an end to
the revolution making business inter
,mittently carried on with New Or
leans as the headquarters Of the fill
ibusterers.
II is a recognized fact thae revo.u-
Nions in Central American countries
Iare not political, but mercenary In
.surrections against the government OF
hny Of these little republics is re-
lgarded. by all familiar with their char
iacteristics, as the attempts OF the
'"cuts" to get possession of the spoils
lin the possession of the "Ihs.' These
ispoils consist chiefly in the custom
house receipts. The party that con-
,trols the government collects the GUS
toms, and as the customs are the
great sources OF revenue In these
countries, there Is, therefore, rich
prize awaiting the men who can sue
.cessfully lead revolution.
Terms Of Convention.
BY the terms of the conventions
with Honduras and Nicaragua, which
are revolution ridden countries OF the
most extreme type, State Department
officials believe that the custom houses
OF those countries will be effectively
placed beyond the control of any revo-
!lutionary plunderer. With this prize
of all revolutions taken from them, 1t
rs believed the insurrectionists OF Cen
tral America, and Americans who have
been financing their filibustering and
revolutionary expeditions, will be
without an occupation.
With revolutions once stopped, IT
Is believed the resources of the Central
American republics will be properly
developed. without danger of interfer-
ence. The continual political upheav-
ais in these countries make the opera
ton OF any extensive business enter
prise almost impossible. Not only are
railroads interfered with and property
damaged, but capitalists are reluctant
to invest their funds under the pre-
carious conditions usually existing.
Furthermore, 1t is the almost universal
practice Of the revolutiOnists, once in
power, to levy heavily upon foreign
business interests for contributions
lOftentimes, too. business firms OF ali
sorts development companies and cor
,porations are invited to help finance
revolutions, under promise OF liberal
concessions, once the revolutionary
leader has gained control of the gov
ernmental machinery.
Framed Last Winter.
The Honduran convention was franz
ed last winter. and presented to the
senate, but was never acted upon. IL
was taken up during the extra session
and favorably reported out OF commit
tee.
The Nicaraguan convention, which
ia identical In terms with that entered
into with Honduras, was framed a few
weeks ago, and received a favorable
report from the senate committee on
foreign relations. The Honduran cor
.yention was so framed as to permit
lof its application to other Central
American republics, as it is the in
tention of the department. II these
treaties be accepted, to negotiate 9th
,ers.
The conventions, stripped OF diplo-
matte verbiage, provide that any loan
made by American bankers to Centra'
American republics, shall conform to
certain conditions before the contract
shall have the approval of the United
States government
The most significant requirement is
that the nation receiving such loan
sshall give as security claim upon the
customs receipts. Certain portions OF
the monthly customs receipts, the per-
centage to be determined by contract
shall be set aside each month for the
payment OF the interest due the lend
ers. To insure the proper collection
of the customs, and the prompt and
regular payment of interest charges
IL is stipulated that the customs shall
be collected by man to be chosen
by the bankers lending the money, the
collectors to be approved by the
State Department. This collector
shall, however, be an employe OF the
government. receiving the loan, and
shall not be any one connected in al
official capacity with the United
States.
What the Effect Is.
The effect of this is to practically
give the United States the power Il
designate the customs collectors TO
nations borrowing from American
bankers. Officials thus named woul'
be men thoroughly trusted by th'
State Department and the American
bankers, and it is practically certain
that the frauds now e xisting woul'
no longer be possible. In case OF
revolution. the new regime would b.
bound by the terms of the treaty al
much as the old, and would be Obliged
to set aside the same portion of the
customs receipts for payment of thu
interest charges on the loan. Thus
say State Department officials, there
would be no use in leading a revolu