Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-10-13
HOLD SECOND ARMY PLEA FOR TREATIES
President Explains Nicarauuan
and H0nduran PaCtS.
MEASURES UP TO SENATE
Popular Understanding and Support,
Mr.. Taft Says, Will Sc.
cure Ratification.

| SACRAMENTO, Cal. October 13-
President Taft's first important speech
| in California was delivered here today
| from the steps Of the state capitol build
| ing. The president spoke in behalf OF
proposed treaties with Nicaragua and
| Honduras and vigorously defended the
| policy of the administration. which he
said Undertaking journals" have labeled
| dollar diplomacy"
Broadly speaking, Mr.. Taft said the
| proposed treaties with these countries
before the Senate would secure for them
a financial agent in the United States
| which would settle their existing debts
on a just basis and which would point
the road to peace and prosperity to two
republics. rich in natural resources. but
torn by strife and revolution.
Lesson of Santo Domingo.
In urging ratification of the treaties
with Honduras and Nicaragua, the Presi-
dent told of the benefits which have fol-
lowed the similar arrangement with Santo
Domingo.
1.-The lesson of Santo Domingo has sug-
ties of Honduras, Nicaragua and some Of
the other countries in Central America"
said the President. There have been
seven revolutions in fifteen years in Hon
duras. Her debt, the principal Of which
was originally 500. 600. 900 in bonds, has in
creased by accrued interest to $124. 00O. 600
and her military expenditures each year
are 100000 The government has no
money with which to make improvements,
to build roads. to do any Of the things
necessary to progress ana civilization.
Her people are poor and on the verge OF
poisoning with prosperity. and she has
turned to US as a philanthropic guardian
Of the small countries Of our continent to
assist in the adjustment Of her foreign
debt, to improve the collection OF her
taxes-in word, to follow the course
taken in Santo Domingo.
THE treaty we have concluded with
Honduras provides that We will help her
who shall settle the existing debt on q
just basis, for every one admits the
fraudulent character Of part Of the debt
and its iniquity, because so little of II
really Injured to the benefit Of the coun-
try.
by the treaty the government Of Hon.
duras undertakes to make a contract pro-
viding for the refunding of it's present
internal and external debt, for the ad-
justment and settlement OF claims HQui-
dated and unliquidated. and for the plac-
ing of Its finances upon sound and
stable basis.
Like Hondurian Treaty.
Nicaragua is a country lying adjacent
to Honduras. and its circumstances have
been similar to those Of Honduras. The
treaty with Nicaragua is practically the
same as that with Honduras. The ap-
prevail Of these two treaties and sue
cessful administration of the. lean con-
tracts will lead to adjustments Of the
national debts OF the other Central
more favorable to them and with even
less responsibility on the part OF the
United States.
There is very decided objection in
the Senate to the approval q these
these objections. This is due. perhaps,
to the depth of my conviction that the
treaties ought to be ratified because they
are of the utmost importance In the pro-
motion of peace on this hemisphere in
a region where there has been NO peace.
The general argument seems to be that
we ought not to involve ourselves In en-:
tangling alliances with republics In this
hemisphere. or. to engage In what seems
promotion Of banking contract. It Is
objected that this is dollar diplomacy.
and that We ought to have none Of it.
Give a dog bad name and you know
what follows. To call q particular piece
of statecraft dollar diplomacy IL to in
woke the condemnation Of undertaking
journals, whose chief capital L. In the
use OF phrases Of a lurid character The
United States did not enter into this
treaty for the promotion OF It's own
citizens. It was thought advisable to
favor a contract with American bankers
rather than with foreign bankers, be.
cause such contract would tend to keep
1t to European markets. mean the traue
Of these countries"
Trade With Gulf Ports.
LAS it is now, large part Of the Hon.
duras trade. both export and import. is
with the gulf ports Of the United States.
Peace and prosperity will largely increase
this trade, and with an American loan
and our protection Of the contract we are
sure to retain this trade, which will in
crease, instead of going to some other
country. This is the correct object and
purpose of diplomatic negotiation. Trade
is not the chief purpose Of the contract,
for, as have already explained. 1t Is to
promote peace in this part OF the world.
q part of the world so near the Panama
canal as to give us an additional geo.
graphical reason for desiring to eliminate
revolution and warfare. AS q matter of
fact, it will reduce our naval expendi-
lures by diminishing the number Of gun
boats we have to maintain in all this
region. An examination Of our expendi-
ture on this account during the last five
years will show that this Is considerable.
Having taken this step In Santo Do
mingo, and having shown how success
full the method Is in suppressing war. in
maintaining power. and in securing pros
perity, ought we not to extend the same
assistance to countries which have an
equal right to look to US for aid and
protection?
Now Rests With Senate.
I'm the promotion Of this humane policy
the administration has done its part. Ths
| treaties with Honduras and Nicaragus
have been negotiated and contracts fol