Upon payment to the San Domingo Improvement Company, the Company turned over the Central Dominican Railway, from Puerto Plata to Santiago, to the Dominican government. The right of the Samana-Santiago Railroad to receive a percentage of the import duties collected at the port of Sanchez was redeemed by the delivery of $195,000 in bonds at par, an excellent bargain, made all the better by the circumstance that the railroad invested the proceeds of these bonds in the extension of its line in the interior. The restrictive concession and heavy damage claim of the Clyde Steamship Line were also cancelled, and the onerous wharf and harbor concessions at the various ports of the Republic were among the other important concessions acquired by the government by means of the bond issue. Thus debts and claims aggregating nearly $40,000,000 have been and will be discharged for about $17,000,000. The surplus remaining from the bond issue and the modus vivendi collections must, under the agreements made, be devoted to public improvements approved by the United States government: a portion has been so expended, and a fund of over $3,000,000 still remains available. In addition the Republic's credit was established on a high plane; burdensome concessions were redeemed and adequate revenues for the maintenance of the government and the progress of the country were assured. As time goes on proper appreciation will be given to the men who were the principal agents in securing this financial and economic regeneration, especially to the Minister of Finance, Federico Velazquez, and to Prof. Jacob H. Hollander. While the fiscal convention largely increased the customs revenues, the Dominican government made no attempt to accumulate a reserve fund, but spent more even than authorized by its ever increasing budgets. During the period of civil strife following the assassination of President Caceres in 1911 the government, in order to carry on its military campaigns, neglected to pay the salaries of its civil employees, pledged its internal revenues, diverted and misapplied amounts of the trust fund set aside for public works, and incurred indebtedness for supplies and materials purchased and money borrowed. It thus violated the spirit and letter of the convention in which the Dominican Republic expressly agreed not to increase its public debt except by previous agreement with the United States.