The Indianapolis times., 1928-11-20
KEEPING UP
With
THE NE WIS
BY LUDWELL DENNY
Copyright. Scripps-Howard Newspapers.
1929

~NC0 W A@A<AA OAAANANA
Copyright, scripps-Howard Newspapers.
1929
XXTASHINGTON, Nov. 20.-Ex-
w tended control of Nicaragua
government finances and military
by American officials appointed by
the United States government is
recommended in a report by w. w.
Cumberland, special commissioner,
made public by the state depart
ment today
Sale of majority stock in the
Nicaraguan National bank to New
York bankers and flotation of
$3O,0O0,0OO loan, also are recon-
mended.
After Withholding the report for
six months, pending the Nicaraguan
national elections, the state depart
ment today made it public, with
the official note that it represents
the personal views of DR.. Cum
berland." But this official publica-
ton is taken to mean the depart
ment's general sympathy with the
report.
Cumberland's expenses were paid
by the state department. The title
page carries the imprint of the
United States government printing
office, and the following statement:
Prepared, at the request of Mica
ragua, under auspices of the depart
ment of state"
The specific question of continued
American marine occupation and
allied political" questions are not
discussed directly in the report.
The state department is believed
to be ready to keep a body of
marines in Nicaragua indefinitely,
under the name of Legation guard"
Most of the 1000 marines who have
been fighting the Sandino revolu-
tionists and conducting the national
elections probably will be withdrawn
| after the January Inauguration of
President-Elect Moncado
The United States originally in
tervened to support the conservative
party government, which now has
been defeated at the polls by the
former revolutionary liberal COM
mander, General Moncadc.
r. II
CUMBERLAND'S idea in brief is
~ that Nicaragua is too unstable
for safety for needed American
capital, unless American officials
control the national finances and
preserve claw and order"
Nicaragua is reasonably we'll en-
coWed with natural resources, but
those resources are difficult of
development, due to deficient popu-
lation, insufficient capital, and in
efficient leadership" according to
the report. "No relief from these
! difficulties is in sight until security
Of life and property is assured and
until the currnecy is protected from
the constant threat of beinr manip-
ulated for convenience Of the
treasury"
Since the United States diSarmed
/ the army and pOpulace, the Ma
tional Guard under American Off
GERS is the sole native military and
police force. AS originally an
nounced by the state department.
these American officers were to
train Nicaraguan officers, and the
| National Guard soon was to revert
to native control. But the Cum
berland report foresees indefinite
American control.
However, the process is certain
to be lengthy, as partisan bitter
ness is the dominating social phe-
nomePon, and years will be re-
CURED to develop a conStabulary
which under Nicaraguan direction
| could be relied upon to refrain
from engaging in political disputes
or espousing the cause Of some
political faction"
Currency stability should be
assured by sale Of majority interest
in the National Bank of Nicaragua
to an American financial group Of
recognized strength and integrity"
American bankers held 81 per
cent Of that bank stock from 1911
to 1924, when a reform Nicaraguan
government bought back its ma
| tional institution. But following the
last American marine intervention,
shares of the bank were put up as
security for a $1,0O00,O0O American
loan.
A S the $l,000,000 loan should be
L Aentirely liquidated during April.
1928, control over management of
the bank again will pass to the gov
ernment, and uncertainty as to the
national currency and as to security
of deposits therefore is again i'm
minent," Cumberland explains.
Under the new plan, fiscal control
of the country would be in the hands
Of a collector general and auditor
general, both nominated by the
American secretary Of state, and to-
gether constituting a majority of
the high commission of three.
The report recommends authori-
zation for a $30,0O0000 loan. The
first series of $12,0000O0 would 60
chiefly to conversion of old laons.
Bankers would collect q flotation
charge Of 100000. Revolutionary
claims would take 100000 Only a
little more than one-fourth Of that
$12,000,000 would 60 for so-called
constructive purposes. such as road
building and sanitation.