The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1912-09-25
CUBA IS BANKRUPT.
MILLIONS SPENT LAVISIILY AND
MORE NEEDED.
Finances i'm u DeplOrablc Condition
and Government Officials DO Not
Know Where to Turn to Get Money
To Meet ObligatiOns-POlitic Sit
uittaOn Also Chaotic


Habana, Sept. 21.--It is felt gem
orally here that Cuba is approach
crisis in its history as a republic.
TWO serious questions occupy the pub
lie mind: Can Cuba survive the pres
ent state Of her finance? Can she
hold an honest, and orderly election
for the presidency with a loyal SUBJ
mission of the defeated party to the
will Of the majority?
That the treasury is empty; that
the last dollar of the $16,5OO.OO0
Speyer loan has been spent; while
the work of sewering and paving Ha-
bana, the present purpose for which
the loan was authorized by the Unit
ed States, is not only not half finished
but In danger of interruption if not Of
abandonment; that the government is
at Its wits end to find money to meet
its vast expenditures while receipts
from customs and the lottery have
reached the lowest point-all this Is
asserted by the enemies Of the gov
ernment and most Of it is frankly ad-
mitted by all. Everywhere it Is asked,
how long can this state Of affairs con-
tinue?
Last month the government default
ed for the first time, on the account
due to the sewering and paving con-
tractors for work done in July
amounting to, about $4,000. The
government declared that it had no
more money. The contractors appeal
ed to the American legation and suf-
ficient pressure was brought to bear
to convince the government that pay
ment was imperative. The following
day the money was Forthcoming.
There has been much speculation
as to whether the government will be
able to satisfy the claims Of the con-
tractors due towards the end Of this
month, but there are indications that
President Gomez, realizing fully the
peril Of another default, has made an
extraordinary effort and will be pre-
pared to meet the obligation and thus
tide over the crisis for another month.
The press continues to be filled
with pessimistic articles bewailing the
financial and political perils that be-
set the republic. Careful estimates
show that the Gomez administration
has spent in its two and a half years
Of power at least s140.OOO,OOO. Ex-
perts declare that the only hope for
Cuba lies in cutting down her ex-
pcnscs at least SO per cent.
The present aspect of the political
situation appears to justify reasona ole
expectations that Gen. Mario Memo
cal can carry the election, especially
as he has just formed an alliance with
toe wing Of the Liberal party under
the leadership of Gen. Ernesta Asbert,
governor of Habana pro, ince. Both
Conservatives and Liberals are maxi
ing strong bids for the negro vote,
the former endeavoring to excite the
animosity of the negroes against the
Liberals on account Of fatalities to
rler Of their race during the last in
surrection in Oriente, and the latter
endeavoring to placate them by prom
ises Of unconditional pardon to thous-
ands of negro prisoners now confined
ia jais.
The association Of veterans. under
the leadership of Gen. Emilio Nunez
which has hitherto stood fast for
non-partisan publication Of the gov
crhment and the "Cubanization" of
the civil service. now seems to be in
4 way Of being badly split along par
tisan lines, but whether to the advan-
tage of one side or the other does
rot yet appear. The election is to be
held November l and the new prcsi-
dent will be inaugurated May 30.