The Idaho Springs siftings-news., 1913-10-11

lSaAy&"1 terprises, but the Dominican ex-
pertinent is the first case in which
= nation after being plunged into involuntary
bankruptcy has accepted third party, another
nation to act as receiver of its revenues and
stand between tt and its creditors during the
settlement OF It's outstanding obligations.
The soundness Of this commercial practice
applied to governments is shown BY the fact
that today Dominican republic has
money 10 spend for proper purposes than ever
before. besides paying the interest on loan and
settling aside each year sum for the payment
of the principal. When the receivership is ter
minated Santo Domingo is likely enjoy the
distinction of being the only Latin American gov
erument not saddled with a 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 treaty between the United States
and the Dominican republic, in which the condi-
tons Of the receivership set forth. Under
this treaty 1t that President Wilson appoint
ed Mr. Wick as the representative OF the govern
,nent OF the United States to administer the re-
ceivershlp.
Nr. Eick 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-
ceivership. These include the salaries OF a num-
ber of Americans who serve his assistants
a
living quarters.
Mr. Wick is regarded as exceptionally we'll
qualified for the place. One of the advantages
supposed to lie In the American receivership is
that the customs revenues by 1t removed to
neutral hands and are no longer to be preyed
upon by aspiring revolutionists or grating Off
ctais. From 1905. when the first temporary
rangement went into effect until 1912 Santo
Domingo had Its first long period OF freedom from
revolution and internal strife The neutraza-
MT has hpap Cd
the of this peace in the turbulent re-
public. In 1912 there was continued political dis
turbance, but even during the revolution the Gus
tom houses remained unmolested by either fac
ton in the struggle. 1t will be Mr. Vick's task
20 continue this absolute security OF the GUS
toms receipts and maintain perfect neutrality
toward all the contendng political factions in
the island
European Intervention in Santo Domingo seem
ed certainly when President Roosevelt inter
Nened In behalf OF the republic. The Dominican
government was saddled with foreign and do
mestc Indebtedness amounting, with interest. to
about s30.000.000. Far from paying the interest
the dominican government increasing the
debt by about a million dollars year. AS re-
suit or centuries OF msrule the were
being dishonesty dissipated succession of
revolutions had reduced the government simply
to a source of graft for which many factions
were contending In this situation the European
creditors In 1904 demanded a settlement, and
were prepared to take the revenues OF the
government II their demands were not granted
AS the Domnicans unable to do what they
asked. European Intervention seemed certain
The United States then negotiated the modus
vtvendf 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 into effect July s 1907
meantime under the modus yivendi there had
been issued bonds of the Dominican government
TO the amount of 500 600 600 This was for the
purpose OF making a 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 $50.
ooo.ooo 1t was scaled down by the United States
In making allowance for fraud and dishonest
claims to about SIT 600 900
The bonds bear interest at 5 per cent making
the annual charge for the service OF the loan
$l.oO0.o0O year It is provided in the treaty
that 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 10000 in excess Of the an
hual 100000 required and the balance is an
piled to the amortization of the bonds In add
ton 1t is provided that whenever the collection,
for any year shall exceed $4,000 600 half of tn.
surplus shall be applied to the amortization O
the bonds
Highly satisfactory progress has been mad,
toward the repayment OF the principal OF th
$21oOOOoO loan. !nasmuch the revenues O
the republic have nearly doubled under thu
American receiYership After the expenses O
the receivership have been paid and the interes
charges and sinking fund taken care Of, tn
Dominican government gets what is left. Fa
from being a hardship. the effect Of the receive,