Show DOMINICAN REPUBLIC R WilL PAY ITS DEBTS D WITH ONDS Settlement to be Made Which Is Satisfactory Satis-factory to Both Debtor and Creditors Cred-itors Bonds Run for Forty Years AYnshlngton Tho settlement of tho debts of tho Dominican republic Is rapidly nearing n completion which Is regarded as satisfactory to both debtor and creditors and which reflects re-flects favorably on tho agents of tho United States government who havo Seen Instrumental In carrying out the basis of settlement Tho recent financial finan-cial disturbance Is given as tho cause for tho abandonment of the plan first agreed upon whereby a New York banking firm was to purchase tho bonds of tho republic In a sufficient amount to satisfy the creditors In place of this plan tho creditors themselves havo now agreed to tako these bonds as payment of 80 per cont of tho claims while tho remaining 20 per cent Is to be paid In cash from tho 4000000 which has boon accumulated accumulat-ed being G5 per cent of tho customs receipts of tho republic and now on deposit In New York Besides this judgment tho creditors have consented to a reduction of their claims to an amount aproxlmatlng CO per cent This reduces the total indebtedness In-debtedness from 30000000 to 17 000000 Tho creditors are to take tho bonds at 981 The bonds are to bear Interest at tho rate of 5 per cent and run for forty years Tho government has reserved the right to redeem them at the end often of-ten years by paying 102 V4 for them Tho agreement will lessen to some extent ex-tent tho present heavy drain on the revenues of the republic Inasmuch as It Is provided that after ho settlement has been made but 100000 a month shall be applied to the Interest of the bonds and tho sinking funds for their redemption The Interest will amount to 1000000 a year which will leave 200000 annually to be applied toward t f redemption ot thei btmds r |