The situation towards the latter part of 1904 appeared hopeless. Every item of the enormous debt had been in default for many months and interest was accruing at such rate that the whole income of the country would hardly have been sufficient for the payment of interest alone. Commerce was handicapped by high wharf and harbor charges collected by private individuals under their concessions from the government, and by prohibitive port dues imposed on foreign vessels in accordance with the concession of the Clyde line. More than three-fourths of the debt was held by foreigners who were clamoring for payment. The general revenues of the country and every important custom-house had been mortgaged to these foreign creditors. In general terms it may be said that the ports of the northern coast were pledged primarily to Americans and secondarily to Italians, those of Samana Bay primarily to Italians and secondarily to Americans, and those of the southern coast primarily to French and Belgians and secondarily to Italians. Only one of the international protocols, however, specified when the custom-houses to which it referred were to be turned over and the manner in which the surrender was to be made. The others merely made the pledge in general terms, further negotiations being necessary to render it effective. The exception was the arbitral award of the San Domingo Improvement Company, which determined that in case of the nonpayment of any of the monthly instalments a financial agent, to be named by the United States government, was to enter into possession of the Puerto Plata custom-house. No payments of instalments were made by the Dominican government and in September, 1904, compliance with the terms of the award was demanded. On October 20, 1904, the vice-president of the San Domingo Improvement Company, designated as American financial agent, was placed in possession of the custom-house at Puerto Plata. A cry of dismay ran through the land and the leading newspaper of Santo Domingo, the "Listin Diario," published an editorial under the expressive heading "Consummatum est," It was, indeed, the beginning of the end. The other foreign creditors now pressed their claims with more vigor than ever, and the preparations for turning over the Monte Cristi custom-house to the American financial agent, accomplished in February, 1905, stimulated them to greater exertions. In December, 1904, the French representative in Santo Domingo, acting in behalf of the French and Belgian interests, threatened to seize the custom-house of Santo Domingo City, the mainstay of the government. The Italian creditors also demanded compliance with their agreements. It was obvious that the foreclosure of these foreign mortgages would mean indefinite foreign occupation and the absolute destruction of the Dominican government, as there would be no revenue left to sustain it.