The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-13
ders for the loan. There was no con.
ealment no maninylstIon in the in.

offer for the Sl5,0O0,OOO issue was
tors considered, this can only be Ne.
gardcd as very liberal price for Sc
curtes OF that class. Because OF the |
well known uncertainty OF the foreign |
policy of the United States, the bank |
crs. quite reasonably, desired some Off |
cial protection or assurance in the form |
Of treaty, and such an instrument, |
bearing date Of June q, 1911, was pre-
pared and signed by officials of both |
countries. The Senate Of the United
States, on grounds that seem quite in
adequate and quite mistaken, declined
To- ratfy II. The bankers advanced
some two or three million dollars on
terms more than liberal, but declined
10 furnish the remainder without the
support of the treaty arrangement.
Tho terms and provisions OF this
treaty were grossly misrepresented. As
a matter of fact. II offered little or
nothing IN the way Of official support
that did not exist as well without the
nal ot International Lar for October,
1911. contains an able and thoroughly
sane editorial analysis Of the conven-
ton. Reviewing this and similar
treaty with Honduras that publication
says:
Indeed tho two new treaties contain
so little of a conventional character bind
ing on the United States that 1t seems
almost unnecessary that their provisions
should have been incorporated In a SOL
omn treaty. Tho first stipulation which
appears to bind the United States Is that
Il will take due note OF the contract for
the loanl when made. II is obviously
not requisite that a treaty DO negotiated
IN order that a Government may take
due note OF q contract which it's citizens
may desire to conclude with a foreign
Governments The next duty which the
United States stipulates TO perform is to
consult in ease OF any difficulties. Ma
| lions all over the world are consulting
| daily In the ordinary course Of diplomatic
usage concerning difficulties which arise.
and no treaty stipulation Is necessary to
| provide for this. The provision that the
customs duties 1.-THE prescribed security
| for the loanl may not be changed without
agreement with the Government OF the
! United States does seem to require a
| treaty In order to mako this particular
| provision effective, but I; is not unlikely
| that had not other reasons dictated the
conclusion OF tho treaties, this provision
would have been taken care OF In the
tas.V, ..sgtk rAfn I.,
! Government OF the United States"
So runs the analysis by an expert
! In international law The assertions
| that the treaty bound the United States
to the employment of its armed
| forces II necessary for the protection
| and collection of the debt are abso-
/ lutcly without foundation. The asser-
lions that the United States would
have been required Ia act. aS II does
| in Santo Domingo, as receiver or col
lection agent for the lenders are
equally baselesS. The treaty was In
effect no more than Nicaragua official
promise aud pledge 10 pay its debt.
1t imposed upon the Government Of
does not exist in the absence of such
convention. The charge that we'll
known and reputable bankers were en-
gagged in q nefarlous scheme TO buy up
| Nicara guam debts at - cents on tho
dollar and compel that unha ppy coun-
try 10 redeem them at par Is rank fic-
ton. \ part Of the proceeds OF the
proposed loan al 90l. was 10 be used
by or on account of Nicaragua to buy
up outstanding obligations, q trans
action in which there was and could
be no profit 80 the leading bankers
Ni"aragua's outstanding obligations, in
Guiding the socalled Ethelberga bonds
Of 1909 81 10000, have quoted
market value. and the Senator from
Michigan or any other critic Of the
treaty of June, 1911, was as free 10
buy tkem or to speculate in them as
we're the bankers who proposed TO re
deem them by new issue
This. in general outline. is the story
Of tho Nicaraguan loan now under On.
yestigatlon' by Senate committee
while that body is presumably con.
sdering another and quite different
treaty proposed 10y the present Admin.
istration. No nnprejudiced reviewer
Of the history Of the proposed treaty
Of 1911 can reach any other conclusion
than that the proceedings were entirely
honest, open and above board. An
other unacceptable conclusion Is that the
prompt ratification of that treaty would
have led at once TO peace, order and
industrial restoration in sorely
stricken country; would have averted
the necessity for the despatch of Amer
lean marines to engage, with loss of
American lives, in battle with Near
aguan insurgents; and would have
averted the scandal of a present force
of marines in Managua, nomnally for
the protection Of American and other
foreign interests, but actually as an
open reminder that the force will be
multiplied if any disorder arises.