The Raymer enterprise., 1913-10-09

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pertinent Is the first case In which
nation after being plunged into involuntary
bankruptcy has accepted 4 third party. another
nation TO act receiver OF Its revenues and
stand between II 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 loan and
setting aside each year q sum for the payment
OF the principal When the rcceyership is ter.
minated Santo Domingo Is likely to enjoy the
distinction OF being the only Latin American gov
ernment 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
tions Of the receivership are set forth. Under
this treaty II was that President Wilson appoint
ed Mr.. Nick as the representative OF the govern
ment OF the United States to administer the re-
Cevershp.
Mr. VIck 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 re.
ceivorship. These include the salaries OF a num-
her OF Americans who serve as his assistants
His own salary Is $500 year and he also gets
living quarters.
Mr.. Vck Is regarded as exceptionally well
qualified for the place One OF the advantages
supposed to lie in the American receivership is
that the customs revenues are by II removed to
neutral hands and are no longer to be preyed
upon by aspiring revolutionsts or grating Off
cias. From 1905, when the first temporary ar
rangement went Into effect until 1912 Santo
Domingo had It's first long period Of freedom from
revolution and internal strife. The neutraiza.
ton OF the customs receipts has been regarded
Ms 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.
tion 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 contendIng political factions In
the island
European Intervention In Santo Domingo seem.
ed certainly when President Roosevelt inter.
ycned In behalf OF the republic The Dominican
government was saddled with foreign and do.
nestle Indebtedness amounting. with interest to
about |50OOOoOO. Far from paying the interest
WV ''iHAhtNhn hpNtIuUlent was increasing The
debt by about a million dollars a year As a re-
suit OF centuries OF mlsrule the revenues we're
being dishonesty dsspated succession OF
revolutions had reduced the government simply
TO a source Of graft for which many factions
were cohtending. In this situation the European
creditors in 1904 demanded settlement and
were prepared TO take over the revenues OF the
government II their demands were not granted
AZ the DomlncanS were unable to do what they
asked European intervention seemed certain.
The United States then negotiated the modus
vlvendi, which was to hold in force while n treaty
was being negotiated. The treaty, under which
lhe recrlHefship Is now conducted was ratified
by the United States senate and the Dominican
congress and went into effect July s. 1907
Meantime under the modus yvend there had
been issued bonds Of the Dominican government
to the amount Of s2O,OOOOOO This was for the
purpose OF making settlement with the foreign
creditors and paying for certain public improve.
ments necessary to tho utilization OF tho 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 s17OOoOOO
The bonds bear interest at per cent making
the annual charge for the service OF the loan
'i'ou0VVO year 1t Is provided In the treaty
that each month the American recciver.renerol
80, F"' y" "' 'ua'auS ITust company OF New
YORK, tho fiscal agent OF the loan tho sum OF
100000. This is 100000 In excess OF tho an.
nual S,oOOOOO required and the balance is ap
piled to the amortization OF the bonds In add.
ton II is provided that whenever the coIlectIons
Tor any year shall exceed $1,000 900 half Of tho
surplus SHAH be applied to the amortization OF
the bonds
Highly satisfactory progress has been made
toward the repayment OF tho principal O, IN,
{2oOO0,00O loan lnasmuch as the revenues O,
the republic have nearly doubled under tho
American recoivership After the expenses OF
the recelyership have been paid and the in,eres,
charges and sinking fund taken care OF, the
Dominican government gets what is left Far
from beng hardship the effect OF the receiver.