Evening star., 1928-11-22

Judging from the pessimistic criti-
cisms of certain Of the "oppoSltlon
press" the Government of the United
States is "going up and down the
earth seeking whom it may devour." F"
Or. rather, in place of the Govern
ment, the money power is plotting 10
put a mortgage on the life, liberty ana
pursuit of happiness of foreign lands
such as Nlcaragua--So that atter lend
ing the people money 1t may achieve
the rank of "Shylock" as our
debtors across the water are prone TO
attribute to Uncle Sam, because he
loaned money where needed and ex-
poets ultimate payment thereof.
In the recent campaign Gov. Smith
ATTEMPTED to make an issue out OF
our friendly cooperation with Mica
ragua at the request OF her govern
ment and with the assent OF the
"rebels" in introducing the novelty OF a
peaceful election. He declared that II
elected President Of the United States
he would withdraw all Marines from
that country, where a rebel force was
striving to seize the government and
jeopardize American investments. These
imperiled holdings included the
three million dollar investment in
the exclusive right to construct an
interoceanic canal when and where we
see fit to do so, across Nicaraguan ter
ritory. The Coolidge policy is not
abandonment of American investments
in foreign lands, but their protection,
and that policy does not include inter-
ference with national independence,
political or economic, so long as the
debtor recognizes ordinary commercial
honesty in paying interest and ultl-
mately redeeming the investment.
X 4 X
For a year Mr.. w. w. Cumberland. d.
acting on behalf of our Department Oh
State, has been in Nicaragua making q
research of its economic and f1nanclal
condition, as a basis for future policy,
after peace and order will have been
restored. The contemplated project TO
finance Nicaragua Is not to be UNDER
taken by our Government itself, but, If
at all, will be handled as a banking
problem, to be solved by marketing
bonds in America with which to take
up Nicaragua's outstanding indebted
ness and provide for the support or her
constabulary and for development OF
roads, railroads and natural resources.
Yet such a financial enterprise cannot
be presented to the bond-purchaslng
public without the tacit approval OF our
Government, although the Government
does not give any guaranty OF the
bonds Hence 1t is recognized as a duty
for the administration to become m
formed as to actual conditions in the
country to be financed.
" X X X
Mr.. Cumberland's report OF his ind
ings has just been made public by the
Department of State, and rather uneX-
pectedly it includes not only review
of economic conditions as he found
them, but also definite plan which he
recommends, but which the State De-
partment takes pains to disavow as Of
ficial, leaving the plan" only as that
of Mr. Cumberland.
Under this plan" it is proposed that
Nicaragua be authorized to sell bonds
to total of $30,000000, with the pro-
ceeds of which existing bonded and
other indebtedness will be taken up, and
funds provided for internal improve
ments and the support Of the constabu-
larry. With the issuance OF these bonds,
to be marketed in the United states,
the American Government would be
authorized to appoint a collector general
and an auditor general with power over
all collection and disbursement OF
revenues. There will be high commits
sion, which shall have control over the
making of the national budget and the
administration of the finances OF the
republic This high commission will
be composed of the two United States
officials, the collector general and audit
or general, together with the Nicaraguan
minister of finance. hence the United
States control of Nicaraguan finance
would be absolute.
1t is that phase of the plan" which
excites the patriots of the American
press who point the finger of scorn at
our alleged "imperialism" and the loss
of sovereignty and independence for the
"enslaved" Nicaraguans. The money
power" is accused of seeking to get an
undue grip over an independent nation,
with the hoped-for consent and con-
nivance Of the Coolidge administration.
Shall dollar diplomacy" gain such a
strange hold upon wax Nicaragua? II
is assumed by the critics that loans have
never before been made TO nations, with
tangible securities taken as collateral.