Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-05-13

SANTO DOMINGO CITY, d. R., May 8.
When one lands in this ancient city,
where stand the ruins of the house In
which Christopher Columbus lived. he
finds the customs administration under
the direction Of American citizens. This
is explained by the fact that some years
ago the Republic OF Santo Domingo be-
came financially embarrassed to such a
degree that heroic remedies had to De
resorted to in order to save the nation
from absolute bankruptcy. 1t was at
this juncture that the United States step
ped in and declared its willingness to as
sist the Dominican Republic to get on its
financial feet by taking charge OF its
customs revenues and administering them
for the joint benefit of the republic and
its creditors.
There had been a long series of revo-
lutions during which debts and claims
were created, some by regular and some
by revolutionary governments, many OF
them of doubtful validity in whole or In
part. and amounting in all to more than
S3O,O0OOOO, nominal or face value Inc
government had no way of meeting these
claims. The continued political disturb
ances prevented the continuous collection
and application of the national revenues
for the payment Of principal and interest
of such debts, or for the liquidation and
settlement of such claims. These obliga-
tons were continuously being increased
by accretions of interest. and proved
great burden upon the people.
At this juncture the Dominicans ap-
pealed to the United States to come to
their rescue. Their foreign creditors had
announced a willingness to scale down
their debts and claims from $21, 1SA, 900 to
S12. 4O7 600 while certain internal cred
itors had agreed to scale their debts and
claims from $2,O2S,25S to $645,S27. The
government also had fixed S. 1000 as
the amount II was willing to pay to such
fused to agree to the terms OF the offer.
On this basis it was calculated that the
So, 100000 owed by the Dominican Repub-
lie could be Undated for $17,OOO.O0O OF
agreed to lend s2OOOo,O00 to the Domin-
lean government. bearing interest at 8
per cent, payable in fifty years, and re-
deemable after ten years at 1O2h, pro-
vided the United States would agree to
take charge Of the Dominican customs
house and administer the finances until
the entire debt should be extinguished.
The proposition Of the bankers also pro-
vided that there should be payment of
at least per cent
Other Conditions per annum for
Made by Bankers. that ' the SURPLUS ns
of the $4,000 loan. after the payment
of the country's debts. should be used for
the retirement and extinction OF conces-
sons and harbor monopolies, which were
burden and hindrance to the country.
and whatever remained was to be used
for the construction of certain railroads
and bridges. and other public improve
&C. 20 he ind vio doValnn.
ment of the country.
Under the terms of the convention it
was agreed that the President Of the
United States should appoint a general
receiver Of the Dominican customs. who.
in turn. should appoint his own assist
ants. He was entitled to expend not to
exceed per cent of the revenues for the
administration of the receivership. On
the first day OF each calendar month he
was to turn over to the fiscal agent OF
the loan the sum of 100000. the remain
der Of the customs collections to go to the
Dominican government, except that In
the case when the customs revenues COL
.lected should exceed $3,OuO,O0O a year one
half of the excess should be applied to
the sinking fund for the redemption of
bonds 1t was agreed that the customs
laws of the republic should not be
changed except with the assent of the
United States. and also that the public
debt of the country could not be increased
until this entire debt was wiped out.
The American control of the Dominican
custom house practically began in 1905.
when a modus vivendi. sort of expert
mental trial of the plan. was put in force;
1t continued until the ratification OF
the treaty, and the permanent convention
went into effect in 1907.
How well the plan has worked for
Santo Domingo is made evident by
comparison OF conditions before 1T was
put into effect and today. When the
plan went into effect Santo Domingo had
a tariff law which levied heavy duties on
all importations Of necessities, while ad-
hitting the luxuries of life almost duty
Free Rice. consumed by the masses in
large quantities, was made to pay duty
of nearly double its value: while cham
payne used only by the well-to-do. was
admitted with a nominal duty. Cotton
goods, necessity Of the masses. was
heavily taxed, while silks and linens.
used only by the well-to-do. bore only
light burdens.
Since the American administration OF
fvato ofPn Ayxy