Polk County news-gazette. (Benton, Tenn.) 190?-191?, 1913-10-09

KAANNM terprises, but the Dominican ex-
pertinent il the first case in which
a nation after being plunged into involuntary
bankruptcy has accepted third party another
nation to act receiver Of its revenues and
stand between 1t and it's 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 loan and
Retting aside each year sum for the payment
of the principal When the receivership is ter
minated Santo Domingo is likely to enjoy the
distinction OF being the only Latin American gov
eminent not Saddled 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-
Hes debts This arrangement has lasting force
by virtue of treaty between the United States
and the Dominican republic, in which the condl-
tons Of the receiyership are set forth Under
this treaty IL was that President Wilson appoint
ed Mr. Wick the representative of the govern
ment OF the United States to administer the re-
Ownership
Mr. Wick is not, technically speaking in any
way connected with the Washington government.
His salary is paid by the Dominican government.
The same is true OF all the expenses of the
eeiYersh1p. These include the salaries of num-
Der Of Americans who serve as his assistants.
His own salary is $500 year and he also gets
living quarters
Mr. Wick is regarded as exceptionally well
qualified for the place One of the advantages
supposed to lie in the American receiversbip is
that the customs revenues are by it removed to
neutral hands and no longer to be preyed
upon by aspiring reVolutionists or grating Off
clals From 1905, when the first temporary ar
4yfp oApoo 1Tp4i INTO
Domingo had its first long period of freedom from
revolution and internal strife. The neutraliza-
ton Of the customs receipts has been regarded
the cause OF this peace In the turbulent re-
public In 1912 there was continued political dis
turbanee but during the revolution the Gus
tom houses remained unmolesteG by either fac
ton in the struggle. 1t will be Mr. Vick's task
to continue this absolute security OF the Gus
toms receipts and maintain perfect neutrality
toward all the contendlng political factions in
the island.
European Intervention in Santo Domingo seem
cd certainly when President Roosevelt inter
vened in behalf of the republic. The Dominican
government was saddled with a foreign and do
mestic Indebtedness amounting with interest to
about $50000,000 Far from paying the interest,
the Dominican government increasing the
debt by about million dollars year. AS re
suit Of centuries OF misrule the revenues were
being dishonesty dlssipated succession of
revolutions had reduced the government simply
to source Of graft for which many factions
were centending In this situation the European
creditors in 1904 demanded a settlement and
were prepared to take the revenues of the
government IL their demands we're not granted
As the Dom1nieans were unable to do what they
asked, European Intervention seemed certain
The United States then negotiated the modus
Yivendi which was to hold in force while treaty
being negotiated The treaty, under which
the receyershlp is now conducted was ratified
by tie United States senate and the Dominican
congress and went into effect July g. 1907.
Meantime unler the modus vivendi there had
been issued bonds Of the Dominican government
to the amount OF $20,000000 This was for the
purpose Of making II settlement with the foreign
creditors and paving for certain public improve
ments necessary to the utilization OF the island
resources Though the nominal debt was $50.
100000 it was scaled down by the United States
IN making allowance for fraud and dishonest
claims to about $4,000 600
The bonds bear interest at { per cent making
the annual charge for the service OF the loan
d,O00OOO year II Is provided in the treaty
that each month the American recevergeneral
shall pay TO the Guaranty Trust company OF New
York. the fiscal agent OF the loan, the sum OF
100000 This 10 100000. in excess of the an.
nual $l0o0,00o required, and the balance Is ap
piled 70 the amortization of the bonds. In add
ton II Ia provided that whenever the collections
for any year shall exceed Ss009G00 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
600 loan, inasmueh the revenues OF
the republic have nearly doubled under the
American reoeivsrshlp After the expenses OF
the reoeivership have been paid ana the interest
charges and sinking fund taken care Of the
Dominican government gets what If left. Far
from being hardship, the effect Of the receiver.