Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1913-10-10

L
pertinent is the first case in which
d nation after being plunged into involuntary
bankruptcy has accepted a third party, another
nation to act as receiver of it's revenues and
stand between it and it's creditors during the
settlement of its outstanding obligations.
The soundness Of this commercial practice
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
setting 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 a burdensome foreign
debt.
The United States government is the custo-
dian of the Dominican revenues, and stands spon-
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-
lions of the receivership set forth. Under
this treaty it was that President Wilson appoint
ed Mr. Wick as the representative Of the govern
EGent of the United States to administer the re-
cevershfp
Mr.. Wick is not reCaaioaiiy 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-
ceivership These include the salaries of num-
His salary is $500 year, and he also gets
living quarters.
Mr.. Wick is regarded exceptionally we'll
qualified for the place. One of the advantages
supposed to lie in the American receivership is
that the customs revenues by it removed to
neutral hands and longer to be proved
upon by aspiring revolutionists or grating Off
Gals. 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
the of this peace in the turbulent re-
public. In 1912 there was continued political dis
turbance, but even during the revolution the
tom houses remained unmolested 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 contending political factions in
the island
European intervention in Santo Domingo seem
ed a 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 $30,000000. Far from paying the interest
the Dominican government increasing the
debt by about million dolls RS year. AS a re-
suit of centuries of misrule the revenues were
being dishonesty dsspated A succession Of
revolutions had reduced the government simply
to of graft for which many factions
were contendng. In this situation the European
creditors In 1904 demanded a settlement, and
were prepared to take over the revenues of the
government If their demands were not granted.
AS the Dominicans unable to do what they
asked, European Intervention seemed certain.
The United States then negotiated the modus
vivendi, which was to hold in force while 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 $20,000000. 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. Though the nominal debt was $780,
100000 it was scaled down by the United States
in making allowance for fraud and dishonest
claims to about $17000000
The bonds bear interest at per cent making
the annual charge for the service of the loan
$l,OOOOO0 year 1t is provided in the treaty
that each month the American reinforcement
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 $1oOO,00O 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 $4,000 000 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
SZO,OO0,0OO loan, inasmuch as the revenues of
the republic have nearly doubled under the
American receivership, After the expenses OF
the receivership have been paid and the interest
charges and sinking fund taken care Of the
dominican government gets what is left Far
rom being hardship the effect of the receiver