Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-01

There is M politics usually in rubber,
but II certain agitators succeed in th>ir
propaganda ,hsre is going 70 be con-
siderable rubber in the present CAM
naicn. For example. in no less highly
orthodox magazine than Harpers
Monthly for September appears
sensational charge that the State De-
partment. plus the Department OF Com
nerce. conspired TO force upon Liberia
the Firestone rubber concessions. IN
1926. together with compulsory loan
of S5.0o0.000 at : per cent, with which
that helpless country was obliged 10
take up loan bearing only per cent
and not due for 30 years. The article
is headed international Window
Smashing" in open defiance OF the
adage that chose who live In glass
houses are no little Dayids with sings
or words TO that effect The writer.
Silas Bent. baSing his allegations on
book bv Prof. Buell. says In his smash
ing article:
sNr, Firestone has not actually
bought any land in Liberia; he has
leased immense tracts for 90 years. a.
an annual rental of cents an acre.
Further, he has agreed to lend the
African republic $4,000 900 for 40 years.
at Z per cent Pert of this is 10 be used
in retiring Tiberian loan at ) per
cent. which will not eXuire for more
than 20 wears The republic, that Is to
say. must pay instead Of per cent
for its money. Mr., FircStone's security
" a lien on the country's customs. Both
the customs and the Internal revenue
are IN be collected under the eve Of an
American adviser whN viii also super
wise the budget and FL disbursements.
II appears natural that statements
relating To rubber should stretch" so
MFR Silas Bent NAV have been under
the impression that his facts slso should
manifest characteristic elasticity. A
casual reading Of the above leaves the
impression that the loan forced" upon
Liberia at per cent superseded an
n0ua' indebtedness bearing per cent
which had 20 years yet to run. hence
tho Libsrians are penali2ed to the ex-
tent of per cent a year through their
helplesSneSs to resist the imposition.
Two per cent for 20 years on $4,000 900
emounts To 30 per cent of $1,000 900.
Hence that is gouge of s2,000o00
robbed from the government of Liberia
through the connivance. to say the
least. 81 our Departments of State and
~c~,n>nrce
AT the same time. Mr.. Firestone will
pay rental on million acres. at cents
an acre per year--a total In the same
20 years amounting 10 81 100000. So,
according to the natural inference mot
the analvzed statement. however, of
Mcssrs, Bent and Buell.. the LiherianS
nay in excess interest during the 20
years $500 00n more than the total re-
ceipts from the FireStone lease. and at
the same time they surrender 10 the
United States their national indepcnd-
ence,
What are the facts? Certainly the
obvious inference set out In the last
paragraph above Is not fact. 1t Is mis-
leading and untrue in its essentials.
Up to two or three years ago Liberia
had been bankrupt for some time, It's
outstanding bonds amounted to Sl,l00,-
900 ri per cent. on which interest
was long overdue and unpaid III addi-
ton, ii had some s36S 900 short~time in
debtednesS. part funded and part float
ing and ii owed the United States Gov
eminent S3S 5000 total indebtedness
OF about ST 500 600. Its bonds In 1922
were quoted at IS cents on the dollar
but as there was no prospect Of paving
the overdue interest there was no mar
ket for them. The tiberian government
had tried IN vain to borrow some e2S.-
600 to $4,000 both In Europe and
America It's credit was nil It's budget
would not balance with its revenues
II faced bankruptcy.
v y
The Fifestone rental Of 1000 600
acres adds 10 the Liberiau revenues $50
600 year regardless Of how rapidly
Mr. FireStone may improve his rubber
plantation. In fact, he has now about
40 ono acres in rubber trees. and is
planting at the rate Of about $4,000
acres wear.
II would not BE- feasible 10 develop a
million acres without public highways
but bankrupt country could not build