Evening star., 1911-06-09
Urged by the President.


Urged by the President.
The most important question confront
ing the United States today. so far as re-
lations with the Central American coun-
tries are concerned, is the policy con-
tanned in the proposed treaties with Hon
duras and Nicaragua The Nicaraguan
treaty was forwarded to the Senate yes
terday by President Taft who sent with
1t a message strongly urging the ratifica-
ton of the convention. The Honduras
treaty has been before the committee on
foreign relations since the last session.
Both treaties propose that the United
States enter into an agreement with the
countries in question whereby a certain
percentage of the customs receipts Of the
two countries be set aside for the pay
ment of the just debts OF these countries,
and the United States is to see to II that
this percentage of the customs is used for
that purpose.
This policy was inaugurated during the
administration of President Roosevelt.
who. by executive action. caused this
country to enter into similar agreement
with SantO Domingo This treaty was
afterward ratified by the United States
opposition. The operation of the treaty
however. has been a great benef1t td
Santo Domingo and also. it is said. tC
the trade interests of the United States
,, Basis Of Definite Policy.
If the two pending. treaties should bt
adopted. a definite policy in regard e
these Central American countries viii
have been mapped out. That there il
considerable opposition. however, to the
adoption of such policy is manifest In
the fact that the Honduras treaty has
been so long before the Senate commit
tee on foreign relations. and this same
opposition will doubtless be raised in the
Senate, once the treaty is reported out.
Objections are raised by senators to the
treatise in question on the ground that
they commit the United States TO guar
antee-though il may be an inuirect
guarantee-that the debts of these Cen
trail American countries snail be paid
They also object to the treaties because.
once they are ratified, it Is likely that
large banking interests in the United
States. feeling secure in the treaties with
the United States, will lend the large
sums necessary to pay on the oeots OF
these countries and take chance on
getting their money with interest from
the customs of the countries as admins
tered by the United States. There seems
to be an inherent opposition IN some
quarters to legislation or treaty when
will appear to benefit the large banking
interests of the country. When Secre-
tary Knox. who is strongly committed to
the policy contained In these treaties. ap-
peared recently before the committee on
foreign relations of the Senate, he was
asked whether the big bankers would not
pertinently replied If he were looking for
a loan he certainly would go to bank
er and not to blacksmith.
Arguments for the Treaty.
Senators who favor the ratification of
the treaties point out that the Central
American republics are heavily in debt.
and that it is impossible for them to bor-
row sufficient money with which to wipe
out their debts unless there Is some such
agreement with the United States. They
say, too, that with the customs houses IN
the hands of the United States there Will
be little likelihood Of attempted revoiu-
tfons in those countries and there Will De
a period of peaceful development.
In his message transmitting the Mica
raRua treaty President Taft dwelt upon
the Importance of preserving the best
nossible relations with the Central Amer
lean republics, because Of their proximity
to the interoceanic canal and of this coun-
try's natural interest in such near neigh
bors.
He also pointed out the desirability Of
aiding the people of these countries so
as to afford no excuse to European
powers to interfere In their affairs. He
cited the Monroe doctrine as requiring
the proper safeguarding OF all American
countries against foreign complications.
Opposed by Senator Bacon.
Senator Bacon Of Georgia. the ranking
democrat on the committee on foreign
relations, speaking of the treaties. said:
Il am opposed to the interjection of
dollar diplomacy into American foreign
relations. the purpose of which is to
make the United States guarantee loans
made by Americans to governments OF
Central and South America"