OCR Text |
Show DOMINICAN REPUBLIC WILL m ITS DEBTS WITH BONDS Settlement to be Made Which Is Satisfactory Satis-factory to Both Debtor and Creditors. Cred-itors. Bonds Run for Forty Years. Washington. Tho settlement of the debts of tho Dominican republic Is rapidly ncarlng a completion, which Is regarded as satisfactory to both debtor and creditors nnd which reflects re-flects favorably on tho ngents of tho United Stntcs government who havo been Instrumental in carrying out tho basis of settlement. Tho recent financial finan-cial disturbance Is given as the cause for tho abandonment of the plan first agreed upon, whereby n Now York banking firm was to purchaso tho bonds of tho republic in n sufficient amount to satisfy tho creditors. In place of this plan, tho creditors themselves havo now agreed to tako theso bonds ns payment of 80 per cent-of cent-of the claims, while tho remaining 20 per cent Is to bo paid In cash from tho $1,000,000 which has been accumulated, accumulat-ed, being 55 per cent of tho customs receipts of the rspubllc and now on deposit in Now York. Besides this Judgment, the creditors have consented to a reduction of their claims to an amount aproxlmnting 50 per cent. This reduces tho total indebtedness in-debtedness from $30,000,000 to $17,-000,000. $17,-000,000. Tho creditors aro to tako tho bonds at 98 VS. Tho bonds nro to bear' Interest nt the rate of 5 per cent and run for forty years. Tho government hns reserved tho right to redeem them nt tho end of ten years by paying 102VS for them. Tho ngreemcnt will lessen to somo extent ex-tent the present heavy drain on tho revenues of the republic, Inasmuch as It Is provided that after tho settlement hns been made but $100,000 a month shall bo applied to tho Interest of tho bonds nnd the sinking funds for their redemption. The Interest will amount to $1,000,000 n year, which will leave $200,000 annually to be applied toward redemption of tho bonds. |