Under pressure from foreign governments, the principal debt items due
foreign citizens had been recognized in international protocols and
the income from each of the more important custom-houses was
specifically pledged for their payment, but in no case was payment
made. One of these protocols, signed with the American charge
d'affaires, liquidated the government's accounts with the San Domingo
Improvement Company, which had been turned out from the administration
of custom-houses by President Jimenez, and provided for a board of
arbitration to settle the manner of payment. The arbitrators
determined the instalments payable and specified the custom-house of
Puerto Plata and certain others as security, which were to be turned
over to an American agent in case of failure to pay. No payment being
made, the American agent demanded compliance with the arbitral award
and on October 20, 1904, was placed in possession of the custom-house
at Puerto Plata.
The other foreign creditors, principally French, Belgian, and Italian,
naturally began to clamor for the payment of their credits and for the
delivery of the custom-houses pledged to them. To have done so would
have meant absolute ruin, as the government would have been entirely
deprived of means of subsistence. In face of the imminent likelihood
of foreign intervention the Dominican government applied to the United
States for assistance, and in February, 1905, the protocol of an
agreement between the Dominican Republic and the United States was
approved, providing for the collection of Dominican customs revenues
under the direction of the United States, and the segregation of a
specified portion toward the ultimate payment of the debt. The treaty
was submitted to the United States Senate, but that body adjourned in
March, 1905, without final action. The creditors again became
importunate and an interim modus vivendi was therefore arranged, under
which the Dominican customs were to be collected by a receiver
designated by the President of the United States, and the proportion
mentioned in the pending treaty was reserved as a creditors' fund. The
temporary arrangement went into effect on April 1, 1905, and the
effect was immediately apparent. Confidence was restored, the customs
receipts rose to higher figures than ever before, and the prospects of
peace became brighter as revolutionists could no longer count on
captured customhouses to replenish their exchequer.
Public-domain text, read in full here on John Shaqi.
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