The mortgage for the loan of 1889 to the Spanish Bank is a document of 158 printed pages, including the index. It recites that in 1877 the city borrowed from the Spanish Bank a sum of money which, together with its interest, amounted in 1889 to $3,177,053.25; that the city was in arrears for interest and sinking fund, and that lawsuits have been in progress to compel the city to pay; that the city also desired funds for the completing the water-works and other purposes, and it was finally agreed that the city would issue $6,500,000 6 per cent. fifty-year bonds for the purpose of taking up the existing debt and completing the water-works, the expense of which was estimated at $1,850,000; and that the balance of the loan, which was taken at 90, was to be turned over to the city for general purposes. There was a further provision that the loan might be increased to $7,000,000 in case the city found it necessary, and this was done. The sinking fund provides for withdrawal by lot and payment of a certain number of bonds every three months during the fifty years, the amount at the end of the first quarter being $5000 and the last quarter $100,000. As security for the loan the city gave a first mortgage on the following property: Canal de Vento, valued at................ $5,030,000 The aqueduct of Fernando VII., valued at. 153,000 The Cristina market, valued at........... 103,000 The Tacon market, valued at.............. 960,000 The Colon market, valued at.............. 304,000 ---------- Making a total of.................. $6,550,000 together with all revenues and receipts from them during the period of the loan. In addition the municipality mortgaged as further security upward of fifty houses which it owns in various sections of the city. The amount of this loan was $7,000,000, which has been reduced by the operations of the sinking fund to $6,721,000. The mortgage of 1891 is also for fifty years and at 6 per cent., with the same property as security. The original amount was $3,000,000, which has now been reduced by the operations of the sinking fund to $2,882,000. The amount of arrears of interest and sinking fund on the two loans is $343,600.56, which figures as part of the floating debt first above stated. The floating debt of Havana arises from the failure to pay practically any salaries, contractors, or bills for materials during the whole of the year 1898, and for some debts contracted prior to this year. The items are given as follows: Salaries........................... $ 678,117.55 Supplies........................... 230,205.77 Materials.......................... 1,183,312.31 Public works....................... 2,568.59 Interest and sinking fund of debts. 343,600.56 Notes overdue...................... 12,160.00 ------------- $2,450,064.78