Bisbee daily review., 1912-04-03
LOAN
 PLAN IS GIVEN
State Department Makes Announcement of General Plans as
 Arranged
MORGAN LOSES OUT

WASHINGTON, April 2-The state department announced today the terms of proposed new loan to the government of Honduras to be fin- lshed by the Whitney Central Trust & Savings Bank of New Orleans. in- stead of Ly the Morgan group in New York. The department officials claim that the objectionable features Of the Morgan proposition have been elim- mated by the southern bankers and they are again urging the senate to act upon the HondCrau loan conven- ton, which has been before the For eign Relation committee for more than a year
 The ofler of Q sl0,0O0,QO0 loan by the Morgan group recently was with drawn The southern bankers, it is announced, have made a tender of a similar amount under a new and rad ically different contract They pro- pose 10 limit the first issuance of bonds to $6.000 0O0 and will require Of Honduras S30D,0OG a year 10 meet the service of the loan as compared with SlJo,000 a year under the for mer contract The ofiICial announce ment of the new loan issued today by the state department says in nart
 The southern bankers limit the uses Of their loan exclusively to the refUnding of the Honduran foreign debt. and discard the proposal Of the Morgan group to promote railroad building and other internal improve ments and to settle internal detts and claims pending against the Hon. duran Government.
 It was these provisions extending the uses Of the loan beyond the set clement of the foreSn debt tha5 aroused criticism against the Nor gan contract. and the southern bank CTS claim that in eliminating these features they have presented terms satisfactory 10 Honduras and that ac- ceutance of the loan may be ex. pected
 Their optimism as to its ina, aC- Ceptance. however is based simply .1Iron the approval given their contract by individual officials of the govern ment Of Honduras who have closely studied their offer With the general public in Honduras the southern bankers find thmselves handicapped by a wide spread prejudice toward loans in any form, and say hat this opposition has undoubtedly been aug 1 mented by the failure of the senate to . ratify the conl endon
 If the senate ratifies the conven ] Iion now and gives to the Whitney | contract the tacit approval which 1 -sdeh action implies, II will, i1 is de ! clarei. produce a wave of reaction | in Honduras, dissIpating the blind | prejudice and paving the way for l sane consideration of the Whitney |
 
 in Honduras 10 the loan convention ] has been almost wholly due to Us l connection with the Morgan contract, ] against which popular opposition had 1 been aroused. and with the convention ! divorced from that contract and re- | submitted in connuection with new contract indirectly approved hy the ] United States senate and indOrsed by l many prominent officials in Honduras 1 the bankers feel confident of its com plete success.
 The new offer, as described by i Acting Secretary Huntington Wilson, 1 is for a 5000, ,0e0 loan, payable in forty years with interest at the rate or 3 per cent and with a sinking fund after five years Of 1 per cent. The | Bonds are 10 be be secured by the ! customs revenue of Honduras, col iected. as provided for in the loan convention, by Americans appointed ] by Honduras with the approval Of the 1 President of the United States Con nected with the New Orleans bankers js the firm Of William C. Sheldon & Co. of New York.
 Even before the New York bank ! DTS had withdrawn formally their of- fer of a loan to Honduras, the south l eru bankers, convinced Of the impoo- sibfitv of consummating the New yorir loan, began 10 study the heid v-it,- ~ --sr.- -- ai-i~g the loan them eer,.s l- large interests IT Honduras, it was essen tiaI to them that the country be put mon it's feet financially. and they or tered therefore, to advance a loan in accordance with Honduras demand limited exclusively to refunding the foreign debt. -
 They have already made consider abIe beadway. the Honduran congress having accepted their terms for pre- iiminarv loan of S500,000, offered to meet the pressing needs oi that gov