The South American Republics, Part 2 of 2Dawson, Thomas Cleland
History
The South American Republics, Part 2 of 2
Dawson, Thomas Cleland
South America -- History
After Bolivar's departure for Peru, a period of relative quiet ensued.
Nevertheless, ambitious local politicians constantly intrigued against
Santander, who in his turn was suspected of encouraging federalist
agitation in the hope of overthrowing Bolivar. The United States and
England recognised the independence of Colombia shortly after the
expulsion of the Spaniards, but foreign troubles arose when the new
republic faced the question of paying the immense debt contracted by
Bolivar's agents in recruiting and equipping the mercenary troops and
buying ships, artillery, and ammunition. This debt had been enormously
swollen by the dishonesty of some Colombian commissioners and by the
greed of money lenders who insisted on receiving bonds for double the
amount they had really advanced. The temptation to borrow more when it
was refunded was too great to be resisted, and Colombia soon saw herself
burdened with foreign obligations amounting to nearly seven millions
sterling. All the revenues were insufficient to pay interest on this
sum--a truly stupendous one for so poor a country. The payments fell
into arrears, and though the debt has been scaled down repeatedly,
interest has rarely been paid. At the very beginning of her independent
existence Colombia's credit was ruined, and the three countries into
which she was shortly divided have remained burdened to this day with
the debts then contracted, their finances disorganised, their attempted
operations blighted by the reputation of bankruptcy, and their
diplomatic relations hampered by the clamours of bondholders.
Santander's administration was further embarrassed by Bolivar's demands
for money and troops with which to pursue his conquests in Peru and
Bolivia, and still graver difficulties soon arose. Paez, left in command
of the army in Venezuela, became involved in disputes with the
authorities of the Venezuelan cities and with the ministers at Bogota,
all of whom he despised as mere civilians or as foreigners who had no
right to interfere.
Public-domain text, read in full here on John Shaqi.
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