The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-26

IN THIS my last letter from Centrai
America shall deal with business
i conditions and the possibilities OF the
countries II they can be placed upon
a sound financial basis. The present
situation is abnormal. Central America
Is the richest part of the North Ameri-
can continent. and it's people are among
the poorest OF our whole hemisphere.
It's mountains have gold. silver and
copper. and us hillsides grow the best
coffee on earth. IL lies in the front
dooryard OF the United States. the
worlds greatest market. and IL can pro-
duce tropical fruits which would bring
~ gold by tho millions. Nevertheless
:he bulk Of it's people are paupers. and
The foreign bondholder hangs around
Us neck more heavily than did the Old
Man Of the Sea around that OF Sinbad
the Sailor.
The Empire of Central America.
Central America should be the indus
friat empire Of the North American con-
tinent. and It's population as rich as any
on the face OF the globe. Look at u :
The country begins at Mexico and runs
20 the Tsthmus OF Panama. II skirts
the Pacific Ocean for a distance as great
ss from New York to Detroit and Its
extreme width Is as far as from Washing
ton city 20 Boston. n has 80 much land
that IN the words Of John Barrett. our
great specialist on all things concerning
and laid down on our Atlantic States u
would cover all OF New England and
leave enough over 20 make blanket
sufficient 70 tuck in New York. Pennsyl-
vanla and New Jersey" AS TO the in
dividuaI republics Honduras Is almost
as big as Pennsylvania. Guatemala al
most the size of Mississippi. Nicaragua
IS equal 10 New Y ork and Costa RIGA 10
Vermont and New Hampshire com
hined. while Salvador Is about the size
of New Jersey.
This territory has population which
Is fast crowding 900 900. Here in
Guatemala We have 800 90. Salvador
mas more than 4 900 GO Honduras over
500 900 and Costa Rica and Nicaragua
have, respectively. 40 go and 10000
The only country that u al all thickly
peopled is Salvador our New Eng
land and Middle Atlantic States are
about equal III size to Central America.
They had d; the lsst census population
OF 81. 600 900 and there is no doubt but
that Central America could support
70 80 00c or 80 more than ~ has.
Loaded with Debt.
And now let me give you some 'des
Of the mighty debt load which hangs
from Central Americas mock The
money Vas borrowed for railroads and
other developments. but the most OF II
has gone into the pockets Of the officials.
ana to-day there II hardly govern
nent here which is not honcycomoed
with corruption and bribery.
The debts are enormous. Here IN
Guatemala the gold loans have run
high into the millions. They amounted
70 more than SO 900 90 in 1905. The 10 a.
currency 10 now worth cents on the
dollar, and one American dollar II
equal 70 eighteen Of the dollars Of Guate-
nala-
In Honduras the situation is worse
LIT at
than So 90 and its foreign debt Il
SIS 90 OO0 and more. II the people should
pay y ia fan hey would have 70 be
assessed $3.50 pee head or about 81 20
pcr family "a thing which i evidently
ont Of tho question when We remember
that many OF them wOrk for only ie"
cents a day
Do you wonder that Honduras cant
DAY it, interest The bulk Of its debt
vas contracted more than forty years
ago. and IL has paid no Interest What
ever since ls73. Indeed. the most Of the
debt l. interest The Original loans
footed up only about 81 go go. but the
interest has climbed untii ~ l. now
more than three times the amount OF
me original loans.
Nicaragua has d foreign debt Of
s. 90 pDJ or SO Dp0 90. he Salvador debt
l. about siI ~" On. and that OF Costa
Ric4 IA 1910 was more than SIS 600.
% ~ men ". g. w. w a. iiAtf-
rest In addition 70 these vast sums
every country has its internal debt and
IN most Of them the currency is far
below par
where Uncle sam Comes In.
And now let us see where ncie sam
comes in Ia the first place he is In
terested in the present situation on &C
count Of the Monroe Doctrine We can
not have European nations interfering
with affairs in Southern North America
and especially now as we have the Pan
anna Canal. %overt heless the most OF
this debt a. owing TO Europe. and the
powers there intimate that II we make
them keep their hands of re ought TO
see that they get back the money they
have loaned The foreign bondholder
in many cases would he glad OF the re-
turn Of the principal. lacking the inter
est. but they say the United States
should make the credit Of Central
America good. This can only be done oy
treaty arrangements which Will give US
the supervision and application 70 the
foreign debts Of the customs collections.
a. was done in the case of Santo Domin-
60. resulting in the wiping out OF revo-
tuition and the putting Of that country
on a good business basis This, IN
short. is the proposition Of the United
States government
With a view to this end conventions