(1) An agreement with the banking firm of Kuhn, Loeb & Co. of New York, for the issue of fifty year 5 per cent bonds of the Dominican Republic to the amount of $20,000,000. (2) An agreement with the Morion Trust Company of New York to act as fiscal agent of the Dominican Republic and as depository in the debt adjustment. (3) An offer of settlement to the holders of recognized debts and claims, to adjust these in cash at rates varying from 10 to 90 per cent of the nominal values specified in the offer. The nominal aggregate, as recognized by the Republic, exclusive of accrued interest, was $31,833,510, for which it was proposed to pay $15,526,240, together with certain interest allowances. The proposed scaling down of the debts provoked opposition and remonstrance, but the creditors wisely reflected on the difference between a bird in the hand and more in the bush, and by the beginning of 1907 holders of credits had signified their assent in sufficient amount to assure the success of the readjustment. A new convention between the United States and the Dominican Republic was accordingly prepared, being signed in Santo Domingo on February 8, 1907. It was ratified by the United States Senate on February 25, and by the Dominican Congress on May 3, 1907. The Dominican Congress added what it called explanatory articles to the law by which it approved the convention but made no change therein. This convention, a copy of which will be found in the appendix, recited that disturbed political conditions in the Dominican Republic had created debts and claims amounting to over $30,000,000; and that such debts and claims were a burden to the country and a barrier to progress; that the Dominican Republic had effected a conditional adjustment under which the total sum payable would amount to not more than $17,000,000; that part of the plan of settlement was the issue and sale of bonds to the amount of $20,000,000; that the plan was conditional upon the assistance of the United States in the collection of custom revenues of the Dominican Republic; and that "the Dominican Republic has requested the United States to give and the United States is willing to give such assistance." The two governments therefore agreed that the President of the United States shall appoint a general receiver of Dominican customs, who shall collect all the customs duties in the custom-houses of Santo Domingo until the payment or redemption of the entire bond issue. From the sums collected, after paying the expenses of the receivership the general receiver is on the first of each month to pay $100,000 to the Fiscal Agent of the loan and the remainder to the Dominican government. Whenever the customs collections exceed $3,000,000 in any year, one-half the excess shall be applied to the sinking fund for the further redemption of bonds.