New-York tribune., 1911-01-07
HONDURAS SEEKS LOAN
Washington Trying to Straight
en- Out Its Finances.
NO PROTECTORATE PLANNED
Hope to Avert Foreign lnterven-
neutrality-suspicious. with j.
P. Morgan & 90.

| Washington, Jan. SIN order 10 avoid
snv possibility Of Intervention by European
movers in the affairs OF Honduras. IN con-
,-avention Of the Monroe Doctrine, the
United States government is endeavortng
10 straighten out the tangled financial SIT
ra.ion in that country.
There is 10 present intention, II is said
q, the State Department OF establishing a
financial protectorate over Honduras sirni-
lar 10 that which exists in relation to San
10 Domingo. Much dissatisfaction is ex-
pressed by the foreign holders OF Honduran
bonds. especially those in Great Britain,
and this government is endeavoring TO
bring about a settlement that will be sat
isfactory 10 both Honduras and the bond
holders The interest Of the United States
! lies in the possibility OF foreign interven-
/ tion in Honduras unless some satisfactory
: arrangement Is reached. The bonds have
greatly deprecated in value. and II Is said
that they are being quoted on foreign ex-
changes at 1zI7 to 10 cents on the dollar.
/ In view Of this situation. the bondholders
are anxious to effect a settlement on the
best terms possible. and the republic Is
negotiating with American fnanciers for
. q IN1n. juan =. al CUES NlAl4AeAN' Va 4 -
nance OF Honduras who arrived here last
night. conferred with officials Of the State
Department today in regard 20 some Of
the details OF an arrangement under which
tho foreign bondholders Will be satisfied.
The impending revolution in Honduras
has not yet actually taken form. according
70 a telegram received by the State De
partment to-day from Minister McCreery,
a. Tegucigalpa. Mr.. McCreery said how
ever that there has been no abatement in
/ the threatening situation.
II was learned yesterday that the Hon
duran loan which Senior Paroles Is trying
| 20 negotiate with j. F. Morgan q Co. Is
| SIC, 600. 900 instead OF the 5l00,000.000 az
I first reported The negotiations have not
yet been closed. but IL is understood that
| they are well under way. and that II IL
probable that the Honduran finances will
! b. rehabilitated through the Morgan house
| r was said yesterday that a convention
was being arranged in Washington by
which the loan would be handled by J. P.
Morgan & Co.
The main feature Of the negotiations is
said 10 be the security OF the loan by col
lection Of the Honduran customs through
Il
officials appointed by this government. 1t
| is believed in Wall Street that this will
, have 10 be arranged through a special
treaty between this country and Honduras.
Honduras especially wishes to avoid the
appearance Of an American protectorate
while Morgan & Co insist on the appoint
rent OF American customs officials, who
will be responsible 10 this government FOR
the proper performance Of their duties.
The total OF the Honduran debt 10 be
refunded IL about 100000 900. OF which
s25. 900. 900 is principal and the remainder
interest which has been accImulattns since
1872. The greater part OF the debt Is held
abroad. chiefly in Great Britain. The ne
gotiations with the English creditors are
being conducted by the London house Of
Morgan q Co.. and the plan for refunding
| tire debt depends, It IS said, on the arrange
nent of treaty between this country and
Honduras.