The Alaska citizen., 1911-06-26
UNCLE SAM BEHIND
 MORGAN?
COVE RIM eNT IS CHARGED W!TI FORCING THE HONOURAN
 LOAN


 'larins that the consumma'.ru of embracing he Morgan l.an l- pro- T. sed by the state department d, Washington. would mean ruia to Honduras. Juane Paredes ;ormev finance minister of Honduras. gave to the press last night lengthy statement in which he reviewed he negotiations in regard To the loan and appealed to the American puhIi, to investigate the pr posal
 Senor parcdes had charge ol he diplomatic negotiations on behalf al Honduras concerning this question and has made public he corr, spaud- enCe relating tO il which passed be tween the governments of Great Brit. ain. the United Sta'cs and Honduras These revelations he says, he feels that his coun'rymen should know iU order to understand The attirude c. the American state depar,meUi anu what he characterizrs as the uuwar ranted action oi President DayilA just before he was busted from the presidency Oi II nduras as q lc~Ulr ut the recent revolt.
 History Of Morgan Loan.
 The American people have had Inc mistaken idea" said Srnor Par cdes that the people ui Houdura- ale anxious tt neg tIate this Nor gan loan Nothing could be MrIher from the truth The Uni'cd States government. in July .'ug. Invited the government of Honduras 'o send a special commission tu deal with I T. Morgan X G.. of EyN York. lrr Inc settlement of he Eoruuran dclt and the claims against ihr railroad aud wharf at Puerto t1Itez ln in Nitiug us to utgO,.aft with HUTgin X Co. the suggestion c: T nvH puAd deal Vas made. 9aG Ina. Honduras give as security 'h" ,I-rsm- h au>" revenues of the coanJrv. on the san, plan as that arranged Wj'h .,a.ho Domingo. which means nothing less IAan a financial rrotec'rrar~ of he ,otl try.
 Declines to Sign kJrecment
 In response To dliS invitation ! waa sent To New YurM m September. ,"oY, as the special rnan, iaI ageut ot Honduras. Alter d thorough e>am- Ini.'ion of the propo shi oi ;he s,4te department and Mrs:r, Hurgau CC-, l dec,.ued 10 a;Gr. the agreement M! action met vii he approval uf he l'op'r of Honduya and on Feb, ruuy l. the HsHdura tou,;ress tc Iuset tU Irily h.. a9reemenf by ur a.mo-f unanimous .e
 Notwithstanding the uppoai'Isn of Inc HUnduran congress and people 10 the plan the United States gov. ernment for one year and q hali has insisted that the deal be put through Public opinion throughout Honduras condemns the proposed loan as ruin Ous 10 the country
 Costs Twenty Times Over
 Senor Paredes pointed out that un. der all arrangement which the Hon duran government had effected with the holders of her foreign bonds in Europe just a month before the state department at Washington look q hand in the matter, the ell tire indebtedness would have been disposed of by d to'al payment of $lGOU,OUU ill forty annual install ments. Under the proposed Morgan deal, he says. Honduras would have 10 pay q total of S24 4,OOOO00 to wipe out the same indebtedness.
 Under the proposed Morgan ar engagement" said Senor Paredes. "OuI government would never see the pro ceeds Of One-tOurth Of the bond IS sue. II was provided in this agree ment that 2,5OU 900 of the proceeds Of the bond issue should remain on tlr be expended under their direction in maintaining the siXty-siX miles of railroad and in improvements.
 Poweriess to Check Fraud.
 This Was one objection 10 the scheme. There are two other principal req sons for our objection to this con ven,ion; first, that il frauds are committed by the American agents. who, the convention provided, shall have charge of our customs houses and collect the revenues, Honduras would be pOwerless to check them, nor would We have authority to punish the wrongdoers. And. second, Honduras is dependent upon the GUS toms revenues for the maintenance Of the government. The total public income Of Honduras is about $l loo 900 gold, and under the proposed Nor gan contract a half-million of this would go 10 the New York bankers annually as interest, $3O,0UO would so 10 their agents who administer the customs service and $lO,UOO would be placed in the sinking fund Tor retirement of the bonds. This would leave but $77O,000 with which to administer the entire affairs of the government.
 Seeks Thorough Investigation.
 Senor Paredes expressed the hope that the United States senate would thoroughly investigate this question and not force his country into bank ruptcy and the acceptance of a fin ancial protectorate" when it is not necessary. When this matter comes up in the United States senate, Senor Paredes probably will go to Washing ton and appear before the foreign af- fairs committee in opposition tC the ratification of the agreement.
 THE CORONATION
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