The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-05-06
SECRETARY KNOX sTAUNCH.

SECRETARY KNOX sTAUNCH.
The return of Secretary Knox from
his visit to the Central American
States and TO the West Indies has been
rather obscured by the fnrore Of the
quietly announced, and his speech made
at New Orleans shows that he is firm
in his support of the proposition to
help Nicaragua and Honduras not only
to establish stable, respectable govern.
ments. but to offer those governments
aid as will enable them to proceed with
sound credit aud sufficient resources.
We have discussed hitherto the pend.
ing treaties between the United States
and both of those countries looking
towards the supply Of money on the
guarantee of those governments made
directly TO the United States that
there will be no nonsense about re-
pudiation, and that the interest
charges will bo promptly met, and the
principal provided for by tho time the
loan becomes due.
There are so many conflicting inter
ests in those half baked countries, that
the necessity for some superior obli-
cation or supervision is imperative. No
one will now lend money in cvon small
quantities to the governments of those
countries, because the loan would be
so insecure. The next revolution that
came along would be likely to install a
set of governmental officers who would
repudiete the loan altogether or juggle
away the security for it. Besides, un-
der present conditions, the loans that
would be possible for either Honduras
or Nicaragua to negotiate would be
so small as to amount to but little.
Under the treaties that are pending,
the loans would be sufficient not only
to put the government on its feet, but
to promote the industrial development
of the regions in such a way as to
make the natural riches and resources
available and their development prof
liable,
An example of the treachcry Of those
countries is cited in the case of. Near
aqua, which three years ago borrowed
$780, 900 secured on custom duties and
the proceeds of the liquor and tobacco
monopolies conducted by that govern.
ment. But the very next year after
that loan, the Nicaraguan Government
announced that the liquor and tobacco
monopolies pledged to secure the debt
and interest were unconstitutional, and
the government failed TO make any pro
vision for other security to take their
place. Last January, the Nicaraguan
Government defaulted in the interest
on this loan, and now proposal Is
made by Nicaragua to scale down the
debt by fifteen per cent, and reorgan.
ize the guarantees, with nothing doing.
A similar trouble has been sprung
in Honduras, where there is a dispo-
sition to repudiate a portion of what
is called "the exterior debt - The
with respect to this have
been under way for about three years,
but nothing has actually been settled
about it. 1t is a plain case, however,
that if Honduras is left to herself
in this matter, she will repudiate, as
has so often been done before
Secretary Knox, as faithful friend
to those countries, and as Jealous
public official of the United States.
wishes to see all that sort Of dishonest
jugglery done away with, and the
countries placed in good industrial con-
dition Therefore, he favors the
treaties that have been negotiated, as
suring both Honduras and Nicaragua
that with the proper guarantees and
with the ratification Of those treaties,
the needed money will be forthcoming,
the consent of those governments to
the supervision of the United States
with respect to the securities and guar.
aDtees sufficing TO bring the needed
money. it is TO be hoped that the
U. S. Senate will find time before ad.
journment to ratify these treaties, so
as to set the governments Of Hon
duras and Nicaragua firmly upon their
feet, and to establish such relations
between them and the United States
as will ensure internal peace, indus.
trial activity, and the confidence of
the world in the honesty and good
faith of these troubled little nations.
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LFE-sAvING EQUIPMENT.
Representative William Sulzer of