The Washington herald., 1912-10-09
The Cat Out Of the Bag.

While we are not couceited enough
TO suppose that Senor Don Salvador
Castrillo, the Nicaraguan Minister here
has read and been guided by The Her
AIDS proposition for and forecast OF
the settlement of the latest Nicaraguan
unpleasantness, yet the fact remains
that the distinguished diplomat exactly
voices this newspapers suggestions
when he says:
Il am desirous of seeing the custom
houses of my country completely under
American supervision. This would
remedy a great deal of the desire for
power which for years has been con-
slant drain on the treasury"
Again and especially when he adds
= "a little later I think that we shall
again ask the United States to consider
the supervision of our custom-houses
as security for $I5yooo,ooo loan.
This amount would put US on our feet
again, and the American supervision of
the custom-houses would prevent an
other revolution. Thus the future of
Nicaragua would be established"
These are Dawsonizing times. We
live in an era of this practical appli-
cation of the Monroe doctrine which,
while it will eliminate the political
status of our little Latin sister repub-
lies as far as foreign representation is
concerned, will att tleast insure peace by
taking from contending factions the
chance of international complication
But is the illustrious Senor Don con-
sistent? If he desires to establish the
future of his native land and nation"
by having the United States take hold
of the customs collections "as security
for a $15.oooooo loan to wipe out the
Nicaraguan debt" why does he pro-
pose to 60 to New York to start nego-
tiations for a $12ooo,ooo loan with
which to meet the national debt of
100000?
DR.. Castrillo would have it under
stood that some actual money was to
be advanced by those alleging to carry
out loan. Such is not the case. Bonds
will be printed and these will pass as
legal tender because their interest is
guaranteed by the United States Gov
.rnment collecting the customs of
Nicaragua. Thus the arrangement ap-
pears to be already tentatively intro
:duced, with the consent of Nicaragua,
but it still lacks the approval of the
United States Senate
The senor's statement that with
In week he would go to New York to
begin negotiations for loan for Mic
aragua, &c. does not seem according
20 the usages on the part of our gov
ernment, at least in such cases. For
the Dominican deal was pulled off
without the loan or use of one cent.
From the date, March IA, 1905, when
President Roosevelt applied the modus
vivendi tentatively, pending United
States Senatorial approval, the United
States began to collect all the customs
duties as per printed schedule, with
surcharges and all concessions added
From that date on the first United
States gold (which had to be imported
from the United States to pay the du-
ties) was set aside, and by the time it
was decided who was to get the new
bonds already over 100000 of Do
minican customs gold was lying in a
bank at New York ready to pay the
interest on the bonds when it was de-
cided to print them. This 100000 per
month amounted to about IS per cent
of the total collections In 1909 the
United States Senate ratified the pact
and the Dominicans were called upon
to ratify it on their part, which was &C.
complished, however, only under pres
sure. In the face of the well-known
declaration in writing. by a United
States Senator, that the "Convenio"
was the first step to annexation, the
Dominican patriots ratified the agree
ment.
Convention bonds are powerful per-
suader when tantalizingly held out to
professional Central American patriots. |
So far bonds of such custom-houses
have proven all powerful The fact
that the government of Nicaragua has |
been helped to maintain itself against
an instruction has its significance, but
Il has been a necessary incident of the |
protection demanded for American in
terests. Considerable American capital
has been put into the; railroad from
Corinto to Managua. the only line Of
communication between the capital and |
the chief port on the Pacific coast. 1t
was practically under American control !,
and management and had been seized
by the rebels. There were other Amer
lean interests. Should they have been
left 10 their fate and, IN excuse saord-t