THE CUBA REVI E W 



On July 21 President 

 The Gomez issued circulars invit- 



Neiv Cuban ing bankers to bid for the 

 Loan. loan of $16,500,000, author- 



ized by Provisional Governor 

 Magoon on Jan. 15. The official purpose 

 of the issue is to cover the payment of con- 

 tracts for the Cienfuegos water works and 

 the Havana sewer system. The loan was to 

 be secured by internal taxes. Havana bank- 

 ers took the view that as the security on 

 the internal taxation is subject to the con- 

 ditions under which the first army pay 

 loan of $35,000,000 was placed by Speyer 

 & Co. of New York, and no other secur- 

 ity being mentioned, that the same firm 

 could best negotiate the additional loan. 



The same day a conservative daily said 

 that English capitalists have offered to unify 

 the Cuban debt, loaning $50,000,000 at a 

 cheaper rate than was named by Mr. 

 Speyer's New York banking firm. But the 

 latter firm agreed to loan $35,000,000 to pay 

 the army ten years ago, providing that any 

 future loans would be made through the 

 firm. 



It would appear from this that Speyer & 

 Co. would be likely to' receive first consid- 

 eration. On July 31 announcement was made 

 that S'pever & Co. had been awarded the 

 $16,500,000 Cuban bonds, of which $5,500,- 

 000 are to be issued in the near future, and 

 the balance within two years. Numbers of 

 tenders were submitted, nearly every promi- 

 nent banking house in New York and many 

 European firms having submitted their com- 

 peting bids for the loan. It will be recalled 

 that Cuba cannot create any bonded debt 

 without, under the Piatt amendment, get- 

 ting the consent of the United States Gov- 

 ernment thereto, but the present flotation 

 was directly authorized by the United States 

 Government, acting through its appointee, 

 the Governor General of Cuba. 



The customs receipts of Cuba for the last 

 few years have averaged about $23,000,000 

 annually, without taking into account the 

 special taxes amounting to nearly $3,500,000 

 a year since they were created as a special 

 revenue applicable to the service of the 

 $25,000,000 loan placed with the Speyers a 

 few years ago. 



The N. Y. Sun said that "J. P. Morgan 

 & Co. refused to bid on more than the first 

 installment of $5,000,000, not caring to dis- 

 count the future." 



Mr. Page protested, denying the de- 

 partment's authority and claiming that 

 his dismissal would be in direct viola- 

 tion not only of the decree issued by 

 Gov. Magoon, but also of the Reilly con- 

 tract, under which the water and sewer 

 systems of Cienfuegos are being con- 

 structed. 



Secretary of State Knox having had 

 his attention called to the matter, in- 

 structed Mr. Morgan, the American min- 

 ister at Havana, to insist upon the re- 

 tention of Mr. Page until all the docu- 

 ments had been submitted to President 

 Gomez, which agreement was reached 

 July 15. Article 5 of Governor Magoon's 

 decree provides that the engineer "shall 

 hold office during the term of this con- 

 tract, but may be removed by the Pro- 

 visional Governor or other chief ex- 

 ecutive of the state for good cause after 

 notice and public hearing." 



There was indignation expressed by 

 some of the Havana papers over the ac- 

 tion by the U. S. Government. 



The Diario said: "Our tutors must not 

 go too far, for desperation even of a 

 weak people can give trouble." 



The Discusion says "that Minister 

 Morgan tells President Gomez daily 

 what he may do or may not do." 



Cuba advises that as the country must 

 obey Washington it would be wiser to 

 inquire as to Washington's wishes be- 

 fore acting. 



Senor Enrique J. Montoulieu had been 

 appointed to succeed Mr. Page on July 

 20. He is a Harvard graduate. 



Commenting on the matter the Buf- 

 falo (N. Y.) Courier said: "When Cuba 

 is told from Washington that a certain 

 officeholder must not be displaced, one 

 has to think that Cuban independence is 

 quite a hollow mockery." 



All the documents in the case have 

 been given to President Gomez. 



Mr. James Page, an 



The American citizen, who was 



Page appointed chief engineer of 



Matter. the water supply and sewer 



system of Cienfuegos, by 



former Governor Magoon on Sept. 10, 



1908, was discharged early in July by 



the Cuban Public Works Department. 



A semi-official communi- 

 The cation from Madrid, July 8, 



Spanish stated that Cuba's refusal 

 Claims. to recognize the Spanish 

 debt claim is not regarded 

 as final. It is intimated that the terms 

 of the proposed treaty of commerce be- 

 tween the two countries will have some 

 influence on Cuba's attitude. In the 

 event of Cuba finally refusing to arrange 

 a settlement the claim will be referred 

 to arbitration by the Hague tribunal. 



The Secretary of the Department of Pub- 

 lic Works has authorized the purchase of a 

 pumping station for the city of Melena del 

 Sur. The work on the station will be done 

 by the administration and paid for out of 

 the national funds. 



