The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-06-26

s New York, June 25.-Opponents- OF
the dollar diplomacy" of Secretary
Knox are organizing a determined
fight against ratification of the treaty
with Hondura s. in which it is declared
4 that the high finance feature OF latter
day statecraft reaches it's fullest de-
velopment A motion has been made
in executive session to have the merits
of this treaty threshed out in open ses-
sion of the Senate. and on This the first
fight against tho treaty will be waged
H@ AS the fight is against q system or
VI school of diplomacy that has been
founded by Secretary Knox, rather
than against this particular treaty,
and its success or failure will affect
the future operations Of the State De-
ptrtment in It's relations with other
Z nations. particularly With those of
1, Central and South America, its !mpor-
lance is great.
Herewith are presented the salient
features of the treaty which is now
before the Senate for ratihcation:
The treaty pledges the United States
to use It's good Offices to secure for the
government of Honduras loan of s10.-
100000, with which the latter Is to dis
y charge her outstanding obligations. The
1oan is o be ms de in accordance with
a contract which is attached to the
treaty.
This contract is between the govern
,nent of Honduras, party OF the first
I part. and the banking firm of j. Pier
Dont Morgan. party of the second part.
Morgan 6 Co. agree o float the loan
z at IS, taking in exchange Honduran
gold bonds bearing interest at . per
cent, per annum. The loan is 10 run
for forty years. the bonds bearing date
April 4. 1911, and ma turing April /,
a In
the government of Honduras may at
the end 81 ten years, purchase these
bonds for the sinking fund OF Hondu-
ns'at premium of ~ per cent with
all accrued interest.
Can't Remove Customs Man.
It is further provided that 10 secure
the interest OF j. P. Morgan & Co...
Z President Taft from a list of three
names furnished to him by Morgan &
Co, shall appoint collector of Gus
toms for Honduras, who shall not be
removable except with the consent of
the President of the United states
Morgan G. Co. shall be recognized as
the fiscal agents of the, Honduran gov
eminent. and the collector of customs
Shall be charged with the duty OF col
lecting all the revenues OF Honduras
and applying them to the obligations
assumed under this treaty and the ac-
companying contract
The purpose of the arrangement 1t
IS stated, is to refund the nation al
4 debt of Honduras The negotiations. II
is alleged developed the fact that the
entire outstanding foreign debt OF Hon
duras. principal and interest. aggre-
Gatedi:Sl2 rs, 900 600. The principal of
3 this twas argued. boiled down and
all extortionate charges stricken out,
would not amount to over 1900. 900
1t was then agreed that refunding on
basis of 5 per cent. Of this would
afford fair plan for the settlement in
full of all the outstanding obligations
This, 1t is pointed out by the oppo-
nents Of the treaty, would bring the
financial needs OF Honduras down TO
100000. for which 10000, 900 debt
Is being negotiated But 1t is further
claimed by the opponents of the treaty
that included in the 10 per cent. men,
toned are commissions which ought to
y be leg. out, SO that in actually the debt
= OF Honduras. under the refunding plan
e hat has been agreed upon, Is not more
than s2,500000. at the outside. for
Y which slo,1GH.a0o loan is TO be nego-
tiated. XII,
This heavy balance. 1t is claimed IS
TO he used for the purpose of exploita
Il ton OF Honduras, with the banking
firm OF Morgan standing at hand TO
spreterla first claim upon all conces-
fEions that may be opened up as a re-
,ssult of this exploitation.
Isl 70 Mortgage Revenue
M The $4,000, 900 loan. II is declared.
will mortgage the entire revenues OF.
4 Honduras for forty years. and Morgan.
e. CO. are securing it at S. In other
words, for ss.sO0,o0o, Morgan & 60.
will get s10.0oo.0o0 Of per cent. gold
bonde, which, while not absolutely
guaranteed by the United States, will
have all the force and authority OF
this government behind ,hcm, render.
ing them absolutely safe sure and
Gilt-edged.
M The opponents of the treaty point
cut that it is bad for this government