Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-02
BY G. GOULD LINCOLN.

had stabilized" the govern
ment of the Central American repub
lie, We're withdrawn. The date of the
withdrawal of the Marines was Au
gust 4, 1925. The hope that peace
and freedom from civil strife would
reign in Nicaragua was SHORTLY
after the retirement of American
guards. Naval forces were landed
there as early as last May. though
withdrawn month later.
The intervention" of the United
States in Nicaraguan affairs, finally
resulting in the installation of the
marine guard. took place during the
Taft administration. 1t continued
throughout the Wilson and Harding
administrations and into that of Presi'
dent Coolidge. 1t had for it's purpose
the safeguarding of American citizens
and their property and the safeguard
ing of the lives and property of for
eigners generally in Nicaragua. 1t
also had for it's purpose the assistance
by the United States of Nicaragua to
a more stable government and better
economic and financial conditions.
Situation Is Delicate.
The present landing of armed naval
forces in Nicaragua, under command
of Rear Admiral Julian Latimer, mas
been declared to be for single pur-
pose, that of protecting American
lives and property. The United states;
II is insisted at the White House and
at the State Department. has no in
tention of taking sides in the contest
between the opposing Diaz govern
ment. which has been recognized by
this country, and the revolutionary
government of Sacasa. The latter
government has been recognized by
Mexico. and it is reported that Mexl:
can money and Mexican arms and
men are making it possible for Sacasa
to raise the standard of revolt ana TO
keep an army in the field.
Whether the United States is to be-
come again involved in Nicaraguan
affairs to the extent of maintaining
an armed guard there remains to be
seen. The situation is delicate. to say
the least.
The United States is called upon to
steer a course between the Scylla OF
offended Latin America and the Cha
rybdis of American interests aban-
doned.
Near Panama Canal.
The interest of the United States in
Nicaragua and in stable government
there and peace is no mere myth.
Nicaragua is less than 800 miles from
the Panama Canal 1t possesses
within its own boundaries another po-
tential canal route, connecting the
Atlantic and Pacific Oceans, and the
United States has by treaty acquired
a perpetual option on that canal route
for which Nicaragua receives So ,oo0,.
COO. Industries have been developed
in Nicaragua by Americana ana
American capital. And, finally, as
In existence the United States may
become responsible at any time
to see that the claims of European
nations in Nicaragua are property
adjusted.
The President of Nicaragua. Gen.
Diaz, now recognized by the United
States, is a member of the Conserva-
tive party, while DR.. Juan Bautista
Sacasa, the revolutionary leader, is
Liberal
To the outsider, at least, there is
little difference between Conserva-
tive and a Liberal, other than that
of power. To this must be added
that the Liberals have been strongly
opposed to American intervention In
Nicaragua for years and the Con-
servatives have been friendly to the
United States. President Zelaya, who
headed the Nicaraguan government
at the time Of the Intervention, in his
time fomented revolutions In other
Central American republics and as
pired to be dictator, 1t is said, Of all
Central America. He was Liberal.
History Of Case.
To gain some understanding Of
what the row is all about. which In
the last week or 10 days has caused
far more excitement than would on
the surface appear to be warranted.
II is necessary to 60 back in history
at least to 1907. Delegates of the
FIVE Central American republics met
at the Bureau of American Republics
in Washington, at the suggestion Of
President Roosevelt and President
Diaz of Mexico, in an effort to recon
Gle differences and bring about more
harmony in Central America, Elihu
Root, then Secretary of State, and
Ambassador Creel of Mexico met with
them at the opening session. Eight
conventions were signed.
President Zelaya of Nicaragua dur
ing the next two years disregarded
these conventions and there were
strained diplomatic relations culminat-
ing in the withdrawal OF the Ameri-
can Minister from Managua, the capt.
tai Of Nicaragua. In October, 1903.
a revolution was started with Juan
J. Estrada at its head. A month
later two American soldiers of
fortune were executed by Zelaya's
troops. They held commissions in the
revolutionary army. This caused
President Taft to break off diplo-
matte relations entirely with Zelaya's
government and to give the revolu-
ton indirect support. strong note
written by Secretary Knox of the
State Department was largely respon-
sible for Zelaya's fall from power.
Steps of Intervention.
BY various stages the intervention
OF the United States into Nicaraguan
affairs became more and more pro-
nounced. until finally ii ended in the
landing of marines and the matnte-
nance Of a marine guard at the capital
from 1912 to 1928. The situation of
Nicaragua financially in 1910 was
desperate. Thomas G. Dawson was
sent by the State Department 10
aid the Nicaraguans and the result
was the Dawson plan, which included
among other things the negotiation
OF loan treaty with the United
States. This treaty was never rati-
fed, but while the treaty was still
under consideration by the Senate,
Brown Brothers & Company and
Selgman & Company of New York
agreed to lend Nicaragua SIS, 000, 900
when the treaty went into effect.
After Congress had adjourned with
out action on the treaty. these bank
ers agreed to purchase 6 per cent
treasury bills Of Nicaragua amount
ing TO $l,500.000 TO provide funds for
immediate reorga niZation of the cur
rency. The product OF the loan was
used for the benefit of Nicaragua and
the reorganization of the monetary
system was intrusted TO the National
Bank Of Nicaragua. an institution in
corporated in the United States and
SUPPLIED with capital from the loan