New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-08-02
CRISIS IN NICARAGUA
Bankers Stop at $1,000, 1000,
After Promising $4,000, 900.
WAR SEEMS INEVITABLE
u. s. Demands Cessation of
Clandestine Issue of
Paper Money.

! try Ia again approaching crisis. another
conflict at arms due 10 the baneful in
! huence OF certain OF the politicians who
| have sustained their power through their
command of the army, being now virtu-
ally inevitable. Moreover the bankers
who have been supplying the government
| refuse to advance any more funds, this
action resulting from the Senate's having
set aside the Knox-Castrillo convention.
| The bankers have advanced 81. 100000 on
the sl6,00o0o0 loan. and part OF this has
already been reimbursed by Nicaragua
from the customs receipts. But the gov
eminent needs more money to establish
its monetary system on a gold standard
and to pay the interior debt OF the nation.
Sufficient funds TO carry on the business
OF the republic are lacking, and there is
no immediate prospect that the necessary
money will be forthcoming
The political ENHANCEMENT Is in no
small measure responsible for the eco
nomic condition. Soon after the success
OF the revolution against President Zelaya
| the United States sent the late Thomas G.
Dawson 10 Nicaragua as q special COM
missioner to arrange II basis for the rec
! ognItion Of the new government by :he
State Department at Washington. Mr..
/ Dawson found tho country in state Of
chaos-almost Of anarchy He called the
| leaders OF the revolution together and
had them sign four pacts since known as
the Dawson pacts. Three OF these were
signed by General Estrada. General Cha
MORO, General Mena and Adolfo Diaz.
! Fhe signatories undertook to secure the
election Of General Estrada and DR.. Dia2
/ as President and Vice President, respoc-
lively. for a term Of two years They
agreed TO call a popular election, to draft
new constitution, TO negotiate a loan
with American bankers TO establish a
mixed commission to pass on claims. ma
| tional and foreign. and 20 prosecute those
who we're responsible for the execution
OF the Americans-Groce and Cannon.
The fourth pact was signed by hvo OF
the revolutionary leaders. In this u was
agreed that the agn8tories should select
the candidate for President at the next
popular election. But General Mena, who
controlled the artillery. understanding
that he would not be the favored canil-
date. dissolved the National Assembly
which had been chosen at free election,
and convened a new one, composed Of his
own adherents. This Assembly after the
Zelaya fashion, selected him as presi-
dent. This was done IN direct opposition
10 the Dawson conventions, and some
declaration from Washington regarding
this act OF the Mena Assembly - cy-
pected here. Unless an admontion IL
Forthcoming. It Is almost certain that
Mena will emulate Zelaya by placing him
self in power and then try!ng to perpet-
uate his power by the force ~ arms
Mcna's only chance 10 be President IS by
Il coup detat.
The clandestinc issuance Of banknotes
in large quantities has reached the pro-
portions Of a scandal, and note has been
sent 10 the Foreign Office from the Amc~-
lean Legation. asking that Il be stopped
and demanding also that money taken
without proper procedure from the Ma
tional Treasury be returned
From The Tribune Bureau
Washington, Aug. 1.-The rebellion N
Nicaragua is spreading from the Interior
according 10 dispatch received by the
Navy Department from Captain Warren
J. Terhuno. commanding the gunbOdt An
napolis. despite reports from Managua
that the uprising has collapsed. II Is
stated in the dispatch That the govern
Inent lacks munitions Of war and that
widespread treachery exists among the
supposed supporters OF the President. The
Annapolis will arrive at Cor.nto to-mlr-
row. Captain TeThune Will make an In
yestigation Of conditions and submit II
/ Ia " rot
San Juan del Sur to forestall any attacks
upon the cable.
Tho American Minister at Managua re-
ports 10 the Department OF State that
General Mena LEFT the capital on Monday
last after cutting the electric light wires,
and that his brother, Salvador Mena, who
controlled the police, followed hin with
the policemen. A provisional police force
has been organized and comparative or
DER is being maintained, according to the
dispatch, although there has been some
desultory firing on the city
II is reported that the President Is
gtanchly supported by General Chamor-
no the commander OF the government
forces since the retirement of General
Nena Telegraph wires have been cut In
all directions by the revolutionists, and
II is difficult 10 obtain news from other
quarters OF the country, but Managua Is
now reported quiet.
San Juan del Sur, Aug. l.-The parti-
sans OF General Mena, former Minister Of
war OF Nicaragua, who was forcibly
deposed from office by President Diaz on
July %, arrived off San Jorge, the lake
port Of Rivas, last night, on board
number Of Lake Nicaragua steamers, and
attempted TO make Il landing. They were
however, repulsed.
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