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Show . SECRETARY KN02? STAUNCH. , The roturn of Secretary Knox from his visit to the Central American States and to the W.ost Indies has boon rather obscured by the furore of tho Roosevelt campaign. His return was quietly announced, and his Bpocch made at Now Orleans, shows that he is firm in his support of tho proposition to help Nicaragua and Honduras not only to establish stable, respectable governments, govern-ments, but to offer those governments nn opportunity to got such- financial aid ns will enable them to proceed with sound credit and sufficient resources. We have discussed hitherto tho pending pend-ing treaties between the United States and both of those countries looking towards tho supply of money on tho guarantee of those governments made directly to tho United States that there will be no nonsense about repudiation, re-pudiation, and that the interest charges will bo promptly mot, and tho principal provided for by tho time tho loan becomes due. There are so many conflicting interests inter-ests in those half-baked countries, that tho necessity for some superior obligation obli-gation or supervision is imperative. No one will now lend money in even small quantities to tho governments of those countries, because the loan would bo so insecure. Tho next revolution that came aiong woimii oo iiKeiy io install a set of governmental oflicers who would repudiate tho. loan altogothcr or juggle away tho security for it. Besides, under un-der present conditions, the loans that would bo possiblo for cither Honduras or Nicaragua to negotiate would bo so small as to amount to but littlo. Undor tho treaties . that are pending, tho loans would bo sufficient not only to put tho government on its feet, but to promote the industrial development of the regions in such a way ns to maJco tho natural riches and resources availablo and their development profitable. prof-itable. An example of the treachery of those countries is cited in the case of. Nicaragua, Nicar-agua, which throe years ago borrowed $6,250,000 secured on custom" dutios and tho proceeds of the liquor and tobacco monopolies conducted by that govern, mont. But the-very next year aftor that loan, the Nicaraguan Government announced that, tho liquor and tobacco monopolies pledged to securo the debt and interest were unconstitutional, and the government failed to make any provision pro-vision for other security to take their place. Last January, the Nicaraguan Government defaulted in the interest on this loan, and now a proposal is made by Nicaragua to scalo down tho debt by fifteen per cent, and reorganize reorgan-ize the guarantees, with nothing doing. A similar trouble has been sprung in Honduras, where there is a disposition dispo-sition to repudiate a portion of what is called "the exterior debt." The negotiations with rospect to this havo been under way for about three years, but nothing has actually been scttlod about it. It is a plain case, however, that if Honduras is left to herself in this matter, she will repudiate, as has so often been done before. Secretary Knox, as a faithful friend to thoso countries, and as a zoalous public official of the United States, wishes to see all that sort of dishonest jugglery dono away with, and tho countries placed in good industrial condition. con-dition. Therefore, he favors the treaties that havo been negotiated, assuring as-suring both Honduras and Nicaragua that with tho proper guarantees nnd with the ratification of those treaties, tho needed money will be forthcoming, the consent of those governments to the supervision of the United States with respect to tho securities and guarantees guar-antees sufficing to bring the needed mone'. It is to bo hoped that the U. S. Senate will find time beforo adjournment ad-journment to ratify these treaties, so as to set the governments of Honduras Hon-duras and Nicaragua firmly upon their feet, and to establish such relations betweon them and the United States as will ensure internal peace, industrial indus-trial activity, and tho confidence of tho world in the honesty and good faith of these troubled little nations. |