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Domingo has a new birth under a fresh mortgage of her public revenues to American bankers, subject to foreclosure by intervention of the United States marines at any time when the public revenues fall short of bond and interest requirements.
We entered Haiti with our marines in 1915, during a revolution, under Wilson's first administration. The excuse under which we acted was that of restoring order in the country. By 1916 we had advanced so far with this program that the legislative body of the Haitian Government was dissolved, and deputies and senators were forcibly expelled by American marines, after which the legislative palace was padlocked. Shortly afterwards an election was held under American auspices, and a Senate and Chamber of Deputies more to our liking were elected. The first duty of this new Congress was to adopt a new constitution. The American legation made specific recommendations as to clauses in this new constitution, and these were duly handed to the members of the new Congress by the new Haitian Government.
These "suggestions," however, were not universally adopted by the new Congress; and again, in June of 1917, gendarmes under the command of a United States officer of marines invaded the legislative palace.
The files were looted, and all records pertaining to the work already done by the Congress were taken away. Deputies and Senators were expelled, the legislative palace was once more padlocked, and a military guard was sent to prevent the reassembling of the legislators.
Then, in 1918, a constitution for Haiti was drafted in Washington and forwarded to Haiti to be submitted to a vote of the people. A farcical" plebiscite was held, with United States marine officers in command of gendarmes running the polling; blue ballots were for and red ballots were against, and the Haitian people, now thoroughly intimidated, were told to cast blue ballots. The American-written constitution was adopted by a vote of 99,000 to some scattering few hundreds in opposition.
This constitution, now in force, provides for the election of the President and of the members of Congress by the people. It states that the election shall be called by the President on an even-numbered year, but does not specify what year. The constitution also provides that until an election is called the legislative authority shall be vested in a council of state composed of 21 members, all of whom are appointed by the President. This council of state is given authority to choose a President in case no popular election is held. Up to date no even- numbered year has been found in which to hold an election, although nearly ten years have elapsed since the constitution went into force. All efforts on the part of patriotic Haitians to obtain a popular election have failed. The same President, Borno, is elected by the council of state year after year, he having himself appointed the council of state which elects him.
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This Haitian incident gives an excellent cross-section of what our Latin American policy has actually become. Under President Wilson, who said we must prove ourselves their friends and champions upon terms of equality and honour," we entered Haiti by force, twice dis- solved her legislative assembly at the point of the gun, wrote a con- stitution and forced it upon the Haitian people, and set up on Haitian soil a government contrary to all the principles of political freedom. This policy was in turn denounced by President Harding, but was carried
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on by him without change. It was being actively carried on by the State Department at the moment that Secretary of State Hughes was saying: I utterly disclaim, as unwarranted, the observations which occasionally have been made implying a claim on our part to super- intend the affairs of our sister republics, to assert an overlordship, to consider the spread of our authority beyond our own domains as the aim of our policy, and to make our power the test of right in this hemisphere.'
FINANCIAL DICTATORSHIP.
South American republics have not escaped the net of American financial dictatorship. In Bolivia, on 31st May, 1923, an issue of $33,000,000 of 25-year 8 per cent. bonds was contracted to New York bankers, secured by a mortgage on all public revenues as well as by stock of the Bolivia National Bank, with this unique redemption feature: This bond is redeemable on or after 1st May, 1937, and not before, at the rate of 105 per cent. of its par value and accrued interest." Bolivia's public revenues were, under the contract, placed in the control of a commission of three men, two of whom, including the Chairman, were American bankers. A telegram from the United States Secretary of State certified to the execution of the instrument. (Exhibits 4, 5, 6, Foreign Loans Sub-committee, 1925-26.)
The case of the Salvador 1923 loan is only another illustration. The details are reported by the New York Commercial and Financial Chronicle (13th and 16th October, 1923), Diario Official of El Salvador (20th February, 1923), and in the Senate committee hearings on foreign loans (exhibits 1, 2, 3, Foreign Loans Sub-committee, 1925-26.) In that year Salvador contracted for new bond issues aggregating $18,500,000 at 8 per cent, and 7 per cent, respectively for American loans, and 6 per cent. for a smaller British sterling loan. Secretary Hughes, on 16th October, 1923, issued the following state- ment defining the official relations of the State Department to the loan contract in question :----
"The Department of State has no relation to the matter except with respect to facilitating the arbitration and determination of disputes that may arise between the parties and the appointment of a collector of customs in case of default. The Secretary of State has consented to use his good offices in referring such disputes to the Chief Justice of the Supreme Court of the United States. Also, at the request of the Government of Salvador and the interested bankers, the Secretary of State has consented to assist in the selection of the collector of customs. The contract also provides that the collector of customs, if appointed, will communicate to the Department of State for its records such regulations relating to the customs administration as may be prescribed, and also a monthly and annual report.”
This means in plain terms that the Secretary of State, 60 days after his Minneapolis speech denying any "claim on our part to superintend the affairs of our sister Republics," himself takes over the super- intendence of the customs' revenues of the Republic of Salvador. Six millions of the above-mentioned bonds were sold to the President of the United Fruit Co. at 88 per cent. of par value, according to the contract approved by the State Department. Commenting on the whole transaction, the Diario Official of El Salvador states that President Molina at first withheld his approval " because of the clauses
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