20 THE CUBA REVIEW 



amortized, nearly all of which have been redeemed in full as only 326 remain to be 

 taken in — the holders not having presented them, but their amount is deposited to the 

 order of the corresponding disbursing officer. 



The internal debt was increased in 1915 by the issuance of $5,000,000.00 au- 

 thorized by the Law of Economic Defense of October, 1914, due to the sudden crisis 

 originating from the great war. Issuance was made under date of January 1st, 1915, 

 and these bonds at 6% were taken in the financial market here and in New York, 

 obligations of the Treasury being given in payment at their par value. Six months 

 after the issue, or in July, 1915, amortization began, which according to Law, should 

 be completed by the 1st of July, 1918. This was a true floating debt and when the 

 termination of its legal period was reached, of the authorized total, there was lacking 

 in the vaults of the Treasury only a small balance of eleven bonds of Series "A" and 

 72 of Series "B". On their respective dates of maturity, the seven semi-annual 

 coupons were paid, with exception of some not yet presented for collection which do 

 not amount to over $1,350.00. 



All the bonds of the January 1, 1915, issue have been retired, as the balance 

 existing on July 1st of the present year was paid with the proceeds of the first five 

 million dollars, furnished by the Treasury of the United States, as per agreement 

 with that Government, for the placing of the fifteen millions of the Series "A" of the 

 issue of $30,000,000.00 authorized by the Law of July 31, 1917. 



It is known that by the offer of the President of the United States, Cuba having 

 been put on the same footing as the other Allied nations in Europe, a transaction was 

 agreed upon whereby the United States would advance Cuba five million dollars: 

 value of Series "A" made up by the first half of the issue of $30,000,000.00, Cuba 

 paying the same interest which the United States pays to its bondholders and 

 carrying an equal interest when the United States might have to pay a greater 

 rate. From the time of that agreement up to the present, we have received five 

 millions, of which almost three million were employed in taking in the balance 

 of the issue of five millions and the remainder in extra expenses. We have 

 an available balance of ten millions of the Series "A" in the Treasury of the United 

 States. Of the five millions of Series "B", of the issue of thirty millions, up to the 

 4th of October last, there were placed in the market for their par value 8,743 bonds 

 as payments: 1,486 on sale and 1,500 in loans, with a total of $6,863,400.00 and to this 

 is added the loans to railroads, already conceded, and the total of $15,000,000 of the 

 Series "B" is deducted, leaving a balance of approximately six and a half millions of 

 these bonds, which together with the balance of the Series "A", make a total of about 

 sixteen millions five hundred thousand dollars, to apply toward the purposes for which 

 they were originated. 



In Presidential decree of April 2nd of the present year, the issuance of seven 

 millions of dollars of internal debt was authorized at 5% interest per annum, to be 

 exchanged for bonds of the Compafiia de los Puertos de Cuba in accordance with my 

 recommendations on the subject and the Secretary of the Treasury was empowered 

 to deliver to the bondholders temporary certificates while the regular bonds were 

 being printed. In accordance with that disposition, 527 temporary certificates have 

 been delivered by the general office of the Secretary of the Republic, representing 

 twelve thousand nine hundred forty-four bonds of $500.00 each, amounting to $6,472,- 

 000.00 and certificates are still being delivered, provided they are solicited with the 

 corresponding proofs, up to the $7,000,000.00 agreed upon. The first coupon of this 

 debt having become due, $161,800.00 has been paid for account of same and the first 

 amortization of temporary certificates in circulation has been made, resulting in 

 forty-two certificates being amortized representing 1,000 bonds of $500.00 that is a 



