Montpelier examiner. [volume] (Montpelier, Idaho) 1895-1937, 1913-10-17

pertinent is the first case in which
a nation after being plunged into involuntary
bankruptcy has accepted third party, another
nation to act as receiver OF Its revenues and
stand between It and its creditors during the
settlement OF its outstanding obligations.
The soundness of this commercial practice as
applied to governments is shown by the fact
that today the Dominican republic has more
money to spend for proper purposes than ever
before besides paying the interest on a loan and
setting aside each year a sum for the payment
Of the principal. When the receivership IL ter
minated Santo Domingo is likely to enjoy the
distinction Of being the only Latin American gov
eminent not sadded with burdensome foreign
debt
The United States government is the custo-
dian of the Dominican revenues and stands spon-
sor not only for the conservation of the public
funds but also for the settlement OF the repub-
lies debts. This arrangement has lasting force
by virtue of a treaty between the United States
and the Dominican republic in which the condI-
tons of the receivership set forth. Under
this treaty 1t was that President Wilson appoint
ed Mr. Wick as the representative OF the govern
ment OF the United States to administer the re-
cevership.
Mr.. Wick is not. technically speaking in any
way connected with the Washington government
His salary is paid by the Dominican government
The is true Of all the expenses of the re-
ownership. These include the salaries OF a num-
Der of Americans who serve his assistants.
His own salary is $1,000 year, and he also gets
living quarters.
Mr.. Wick is regarded as exceptionally wen
qualified for the place One OF the advantages
supposed to lie in the American receiyership is
that the customs revenues are by 1t removed to
neutral hands and are no longer to be preyed
upon by aspiring revolutionists or grating off,
cials. From 1905, when the first temporary ar
rangement went into effect until 1912 santo
Domingo had its first long period of freedom from
revolution and internal strife. The neutraliza-
ton OF the customs receipts has been regarded
as the cause OF this peace in the turbulent re-
public In 1912 there continued political dis
turbance, but even during the revolution the Gus.
tom houses remained unmolested by either fac
ton in the struggle. It will be Mr.. Vicks task
to continue this absolute security or the Gus
toms receipts and maintain perfect neutrality
toward all the contendlng political factions in
the island.
European Intervention in santo Domingo seem
ed certainly when President Roosevelt inter
Vened In behalf OF the republic The Dominican
government was saddled with a foreign and do
nestle Indebtedness amounting, with interest to
about s3O0O0.0O0. Far from paying the interest
the Dominican government was increasing the
debt by about million dollars a year AS a re-
suit OF centuries of misrule the revenues we're
being dishonesty dssipated. A succession Of
revolutions had reduced the government simply
TO source OF graft for which many factions
tvere contending. In this situation the Furonaan
creditors in 1904 demanded a settlement and
we're prepared to take over the revenues of the
government II their demands we're not granted
AS the Dominfcans were unable to do what they
asked, European Intervention seemed certain
The United States then negotiated the modus
y1yendi which was to hold in force while a treaty
was being negotiated. The treaty, under which
the receivership is conducted was ratified
by the United States senate and the Dominican
congress and went into effect July g. 1907
Meantime under the modus vivendI there had
been issued bonds of the Dominican government
to the amount of 100000 This was for the
purpose OF making settlement with the foreign
creditors and paying for certain public improve
ments necessary to the utilization OF the island
resources. NThough the nominal debt waS 800
100000 it was scaled down by the United States
In making allowance for fraud and dishonest
claims to about S17.O0O0OO
The bonds bear interest at per cent making
the annual charge for the servics Of the loan
$l,OOO000 year. II is provided in the treaty
tnat each month the American receiver-general
shall pay to the Guaranty Trust company of New
York, the fiscal agent OF the loan, the sum OF
100000. This is 100000 in excess of the an.
nual 100000 required and the balance Is ap-
piled to the amortization OF the bonds In add.
ton 1t Is provided that whenever the collections
Tor any year shall exceed So 900 600 half of The
surplus shall be applied to the amortization OF
the bonds
Highly satisfactory progress has been made
toward the repayment OF the principal Of the
S2OOOO,00O loan, inasmueh as the revenues OF
the republic have nearly doubled under the
American receiverBhip. After the expenses Of
the reeeivership have been paid and the interest
charges and sinking fund taken care Of the
Dominican government gets what is left Far
from being hardship. the effect Of the receiver
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