A0 —'X
NE'W-YORK:
JAMEiS I)ICKSON, BOOK AND JOB PRINTER,:3 TI YON 1OW.
1870.








ANNEXATION OF SAN DOMIINGO.
THE Congress of the United States is now being called upon
to settle a question of the very greatest importance. This is the
annexation of San Domingo, which Baez, for the last year, has
been asking at the hands of the government at Washington. In every age the people of a country have been consulted
with regard to their wishes in the matter of being annexed to
other countries, but such a rule has not been followed in the
present case. On the 29th of November last, a treaty was signed
for the annexation of San Domingo to the Union, without the
people of that country being, in the slightest manner, informed
thereof.
The fourth article of the treaty states that the people of
San Domingo "shall in the shortest possible time, express in a
manner conformable to the laws their will concerning the cession herein provided for, and the United States shall, until such
expression shall be had, protect the Dominican Republic
against foreign intervention (Cabral and his party), in order
that the natioial expression shall be free."
It is clear that the people of San Domingo had not, up to
the 29th of last November, expressed the slightest wish for annexation. They were first annexed by treaty, and then were
provided a mode, but a very poor one, of backing out from its
provisions. The United States government not oily appears
to have given protection, but to have actively intervened in a
struggle, which has been going on in that country for a year
past. It has done more; for the facts show that it has actively
aided the Baez party by a money contribution of $150,000; by
the presence of ships of war, and by sending down cannon and
material of war. Latterly, it has gone a step further, for Admiral Poor has just notified the Haytiens, who are the friends
of the Cabral party, that they must do nothing whatever towards aiding that party.
It would seem that Congress ought to have some respect for
the laws of San Domingo, especially if it would imbue that people with a spirit of kindness. The Constitution of the Republic prohibits by Article 7th, all sale or alienation of territory, or any part of the same-and- a law was passed by the




2
Congress of the Republic in 1867, which declared that man a
traitor to his country who should propose a sale or alienation
of any part of the soil. FHas there been anlything done which
manifests a change of public sentiment in that regard?  The
accompanying documlents will show t haat t'e so-called re-incorporation of San Domingo into the Spanish Mona.chy was productive of bad results.  Yet the SpniLtrids i    lai.lil that the
vote of the Republic was voluntary.  Thalt vote Las been
repeated in the swindling managemenit resorted  to but a
few days ago by Baez.  The Spaniards c(ale into the country-a four years' war did niot makle ti eli tflttun.es better,
and they lhad to:retire ignominiou-sly filiil  e i: soil.  Is it quite
certain that, if the present ainnexatioa-i. pr.'ocject be cirried out,
the people of that countiy wiho, accordi'g to the Spaiiards at
the time of abandollilng the Island, preferred laboLe a  things, the
independence of the soil, mary not exhibit s      oisns of dissatisfaction and revolt?  And if tlhe s,-hou d lift the br   e of insurrection, would they noi; hav. arte t, he vnpathies of all free nations,
because of the abstral-ct justice of!the ir cs:;i:esI?
We first hear of this negotiation in June 1868, wvhen Baez
addressed a confidentlia leere to IMr. S-w ward, in which he said
that HE was willing to sel the sPeninsula of Saniana to the
United States, up'on substN. antia.l ly thl.e saae terLm    the United
States had hereotofore prop-osed to- tLhe adminnistration of Cabral.
On the 8th of July, Mr. Se-wt'r d rt lepiect (confidentially) by saying, that this colmmun-ication would be held under consideration.  The astute Secretary of State fmiuther said: "National
transactions, hotrever desirable and however important, sometimes depend upon occasiozs quite as much as they do upon the
merit of the policy involved."  On the 18th of July, Baez replied by saving, that he " desired the miateri: l a ssista tnce of the
U nited St ates to establish his govermnent p-erma.neitly, and
for such aid will recompense the United States with Samana,"
etc. It will be here seen that BAEZ wants to treat; "will recompense," etc., but not a word is heard from the San Domingo
people in the affair. On the 18th of August, the President complains that the New York papers had spoken of one Fabeus as
his Commissioner for the purpose of concluding the Samana
negotiation, and informs Mr. Seward "tljat lie had no special
Commissioner or agent," etc., brat at the same moment Mr.
Fabens had a regular Commtission ais such in his pocket, duly
signed by the Secretary of State of San Domingo.  This letter
was written  to conceal from  his own people what he was
doing, and he went so far as to seize atl letters coming from
the United States, and to prohibit the circulation in San Domingo of any and all newspapers coming from the States.
On the 9th of November 1868, Baez wrote again to Mr. Seward, the purlport of which was as follows:




3
lst. He desired "the protection of the United States over
the Dominican IRepublic.  The Unitedi States to take possession of Samana, or any other position that they may deem necessary, and must we-td /riop,s a.o /t: teet (io the Island.")
2. "In case they  (the United States), cannot give protection, without the sale of Samarnas, it will be sold."
3. " The government is composed of men E WHO DO NOT COOMPROMISE TTHEMSELYES USE3LESSLY.  Tl.ln   would likie to have
$200,000 paid clown on the signing of th.e Co onvention! An answer was returned to this by Mr. Seward, the 1,t l'tm'-,e of which
may be divined fror  the reply of Ba:z: " i He is well. aware,"
said the Dominican Secretary of State, "that the, Congress of
the United States may not be inclined to bringl about the annexation of anty Statte or Country byI   a a ct of war —or what
might be consideced as conquest, but only by thl  fr:et and general consent of the people expressed in a constitutional manner.  The government of the DominicaLn IRepubnlic is prlepared
to obtain this national declaration by the conlmon vote, or by
acclamation, or in any other form th!at te T:i-tc  Sttres governlent may indicate as satisfactory."
"It is necessary, howeverT, thIat t.lle l)Unilecd States should first
give the assunrranch, by means of a. fi)orman   despatch, that the(
measure, proposedl by the Domini.can governent, is accepted,
and, at the same time, send out to thins city a vessel of war with a
treaty, and the suml  of $30000(0.  On; v-es sel I<f wr would
be sufficient at present." etc.
Baez then threatens Mr. Seward with being comlpelled to
effect a negotiation with an English company, in case he shoalld
not be able to succeed with- the Unitedl States.  The next cofmmunication is for we —.rd,d tAo \Washti-tngton, under ldate of 9th of
January, 1869.  Cabral was,tl th tht  icmlle operatlingi in the Sou1th
East, and the President waTs seriin.l;ou;sl alar ndct.
The following extraordinary cquesti:on was asked in the letter
forwarded to Mr. Seward: "W  hat step would the United States
take in the event tlhatt the cifferent provinces should, at once,
hoist the American flag tand proclaim, by acclamation, that th-ey
placed themselves under the government of United States?
remarking at the same time, "that such was the state of feeling
existing throughout the country that the President, even if
disposed, could scarcely- restrain a -moveTinent which m.a- occur
at any time."
"The re-annexation of Dominica, as a province to Spain, was
the personal act of President Saiitan;-a,a and is not a parallel
case with the measure now proposed," continues the President,
"where a sister Republic, by spontaneous consent of its people, desires to be admitted into the American Union."
"If the possession of Samana Bay is considered a necessity
for the future operations, which the government of the United




4
States may yet have to undertake in the Western Hemisphere,
then there can be no doubt that the moment has arrived for
the realization of this idea; and, if so, it is essential now to
reflect about the manner by which negotiations can be
effected without complications."
"The purchase of the Peninsula is a simple question, but
ought not its sale to be considered as prejudicial to the interests of England, France and Spain in this quarter of the
world, and may not those powers act conjointly in offering to
purchase it for a general depot?"
The same line of argument was pursued by the wily President, who added: "The Dominican government entertains no
fear of being vanquished by its enemies outside, but the real
danger is that it may fCil j'roim ac. acbsolute wa'lnd of means to carry
it on (the war), unless speedily assisted," etc.
To this Mr. Seward replied, under- date of February 5th. He
acknowledges " the receipt of the letter which has been addressed by President Baez to the President of the United
States, and which contains a favorable response to the sentiments expressed by the President of the United States in his
annual message to Congress, on the condition of the political
affairs in the two Republics of San Domingo and Hayti." All
these papers," he says, "have been submitted to the President
of the United States. Soon after the opening of Congress Mr.
Banks, Chairman of the Committee on Foreign Affairs, in the
House of Representatives, submitted a proposition, authorizing the President of the United States, with the consent (f the
Republic of St. Domingo, to extend a naval protection to that
Republic. On the first of February Mr. Orth, from the same
committee, submitted to the House of Representatives a resolution, declaring the consent of Congress to the anexation of
the Dominican.republic to the United States, with the consent
of the people and government of the Republic. This resolution was laid upon the table, by a vote of one hundred and
ten against six-two in favor of the resolution. I am informed
that the same resolution, or one of similar effect, will be again
brought before the House of Representatives on the 8th day
of February, with the prospect of increased favor."
"There is always a necessity for the practice of much reserve
on the part of the Executive in treating of questions of a Legislative character, upon which Congress is actually engaged.
Writing under the restraint of this reserve, I think I may say
two things for the information of the Dominican BRepublic.
First, that the strong vote of the House af Representatives unfavorable to the resolutions, which I have mentioned, was largely due to the fact that the movers of the resolutions proceeded
upon information, which is regarded by the Executive department as confidential, and therefore not in possession. of the




5
-Hotse:.of R:epresentatives.  That  information, however,
is regarded by the President of the United States, but with
such considerations of propriety and delicacy as may be becoming toward the government and  people of Dominica.
Secondly, such proceedings, as are indicated by the resolution
upon which the House of Representatives were engaged, are
indicated by the resolution upon which the House of Representatives were engaged, are regarded by a part of Congress
and the American people as being inconvenient in the present
juncture of our domestic affairs; while, on the other hand,
those proceedings are believed to be in harmony with the general sentiments and expectations of the government and people of the United States."
It may be here asked, if the Dominican people were willing:todispose of the most valuable part of the Republic-wherefore were all these propositions made in such a confidential
manner?
Mr. Fish has displayed more zeal in the matter than his
predecessor.  Without demanding any basis or conditions
which  might tend  towards preventing the United States'
Treasury from being defrauded by a set of sharpers, he signs
two treaties; one for the lease of Samana for fifty years, at an
annual rent of $150,000, and makes the first payment in advance ($147,229 91), and another for the anexation of the Republic to the American Union.
It will lbe remarked that the Seward-Pujol treaty was conducted upon seeming good intentions, so far as legality and
right were concerned. This appears to have been the desire,
at any rate, of Seward and Pujol. The rights of private individuals at Samana were provided for, at the same time that
all the public lands, parks, uncultivated soil, public buildings,
&c., were conveyed.
The Perry-G-autier treaty is subject to the charge of ambiguity. It either means that the American government has a
right to all the Peninsula of Samana, and comprises in that
the property of private individuals-or that the government
has no right to anything which is not clearly defined.
The Baez treaty, in fact, reveals but two things clearly, viz:
the desire to get hold of $150,000, and to obtain the protection of the United States against Cabral.
Another thing is to be remarked also. The Seward-Pujol
treaty was much more favorable to the United States.  The
sum proposed was only a $1,000,000 in gold, and $1,000,000 in
paper money, and the latter was to be paid in arms and munitions of war at full prices.
THE SPANISH PROJECT OF 1861.
This was a sort of private affair of Santana. He called together the governors and commanders from different parts of




6
the Republic; informed them that, he had opened negotiations
with the Spanish government for re-incorporation into' the
monarchy, and gave tlhem directios how to treat with the people.  The substance of the treaty witih Spain was as follows:
ART. 1. Slavery shalli never obe  ye'-e.si, t.is.f,   t   terr.itory
of San Domingo.
ARt. 2. The paper money in ciruluati.on i vi  be funded upon
account of the Spuanish gov'ernmel'o.
ART. 3. San Domingo w-i- be  cons d.etted I,  ndt re:)spected as
one of tihe most favored provinces o0 SpDain.
ART. 4. The acts consulnlmal   e        duting the existence of the
Republic will be respected, and.t tihe-e shall be employed in the
service of Spain as great a  t.i         m)ulci of  i1ni   as  possible.
ART. 5, AND LAST. Al thl  e lposses;sior -    -t,  fotifications, public
parks and buildings, ianclds, d&c., belong.:in"; to the Dominican
Republic will be transferreld to  [ptail.
DEBT,
The debt of the Republic (actual, hones t debt,) does not exceed $800,000, but the liabilities coJ'nti*.- ted during the administration of Baez amounti to mo.r  tiae- hai 18,00 0000.  This will
be seen by reference to a sta teane1 punbli. sCed in the New York
Sun, under date of iarch 3Sc. —bneet   l v ited   Heference is,
also, made to an a-ticle pub-lshed in it.e   ew -, XYork'ritbune,
under date of 16th of Fe3ibruar, i7or cc-r't;ailn facts relative to the
Hartmont loan, and other irepoa;rtant itiemis bIearing upon the
debt of the IRepublic.  i'Tliat ar ti'      clee l., een   ae a part of
this pamphlet.
Attention is further di reted 4to a Loi-.doil letter, published
in the Sumi newspaper on the 10th day of   ar', and to another
London letter, dateci 1I1tlh of Deceme.,    ihe umaterial parts of
which were printe in the S              and,,ib 7i, on the 10th and
11th of last January, respectively.  iAl  these p)apers will be
found incorporated iherewith.  The -reader will aso find, as accompanying documents, ite difeIrel-    t:eates tat have been
proposed at ane ti-me or other..F'oua Oihe \eTc'; Yo'ik''')'  s Jnu'ry, 10.
SAN  DO      -IE  GO)
FULL TEXT OF THE.A.NE;X'.IO-  T.EiATIES.
The text of the treaty bet-wen thie Unitsed States and the
Dominican Republic for the annexsation of San Domingo is
as follows:
"The people of the Dominican lRepublic having, through
their government, expressed their desire to be incorporated
into the United States as one of the territories thereof, in or



7
der to provide more effectually for their security and prosperity, and  the UPni-ed  States being  desirous of meeting the
wishes of the people and groveirnment of that Republic, the
high  contracting' parteies have d.etermined to accomplish the
treaty, an object so imnoriant to theinr lutual and permanent
welfare.  For thlis -pupse o   the President o  ithe Unitedl States
has given  fail dpoweir j         r.t.   -aymo-nd  E. Perrey, United
States commercial agent i  the C.l-y- o  San Domingo, in the
Dominican  Repuilic,  nit  ti-e Preside-lt of the Dominican
Republic has given flui powers to u3'r. Manuel Maria Gautier,
Secretaryl of S       ota2e fo'   ov-ei'gn Aiff'irs of the said  Dominican
iRepublic; and the said  plenipotenia,:       ies, after having  communicated to each oti;ler tir rs pe.c-'ive:ijli poiowers, found in
good  form, h.ave   a grd  upo1    a...d.im.luded t he following
articles, inamloiy
Article 1.'Tie.ioDom-   min icna  l -.i. I-i,.e ac'iiJg subject to the
wishes of its peole, to  e         expres:ed:in  *le shortest possible
time, renounce ah  ri       sa s-:Iovere-ito-  a-    an  independent
sovereign 11natio1, i.nd cees  bt   se:'       origl ls to the United Statss,
to be incorpolrated b-y       dt-m  as an int, I ral pm..:'tion of the Union,
subject to the osam:ie   onsi — l;-"o-     pro-vi-iions as their other
territories.  I-t -ls- cees-    t e   n         i fed St   the absolute
fee and proper'y in all i hc ciioni housei,    Kfo: hifications, barracks, ports, hal'bos;,''navny an    iy        rd.   magazines, arms,
armaments and abGc c      -uamoi'Tbs,::"c:, t.ieos and public documents
of the saidO Donmit ca.n..epuli    of wh-i:-ich.t a scledule is annexed to this traj-[-ty, p-jbi:i. iandsi  a cI.  cIhe: pr'operty not specified excepted.
"Art. /  The ctize:s o: the ADomi:iaL: R:p'ilic shall be
incorporated ia-.o tihe'(:aii:ed St'i:at - es a's C'itze;ns thereof, inhabiting  one  ot i1ts t"erritorines, ani  stha i  be maintained and
protected. in the fee enoym en     t o   Lf their liber-   acnd property
as such citize ns and may be a.dc tl d into  he lt     non asit t   a state,
upon su1 ch. tlermi: s and c. dti i ons, aim  at s     t uc tirme as Congress
shall provide lC 7   aw.
"Ar't.    The public  aladt  and piroperty belonging to the
Dominiican  Republi'c, no-sa    t herein  speci'ica.lly]   cedede  to the
United States, are pid;.gi'-ed  to  the1 pay Lment of aill the public
debt, liqnidated o0 t.t 1   iC q i.q'idat4, which  ha''   a  iin after the
payment provided for 01  his t rea t
" Art.   Th,,-n people o:'he Do:n'Ecan _epbli'ce shall, in the
shortest possi0bl5 e t:i.' me, en;pr.: ss m. a.maim r c on formable to
their laws, theior wilVl c,oner\:t:ni    thO   e  cession hr.erein provided
for; and tiie    ited      tec s, -untilP ie su. t i:  C   expression shall'be had, pro:'!: ct te, B.'o inien    e' 1Aepblie a:,,gainst foreign interpOsition, ini o tde:: lit', -labion l c p1 prein mtay be free.
"Art. 5. Th  U'rite.i States slall pay to te  Dominican Republic for the pi' ope.r 1j ereby ceded the sum  of $1,500,000 in




gold coin of the United States; such payment not to be made
until the Senate of the United States shall have given its advice and consent to the making of this treaty, and an appropriation for the payment shall have been made by Congress,
and until delivery of all the property ceded shall be made.to
the persons authorized to receive the same.
".Art..  T6 he Dominican Retpu-ic eng ges to apply the
amount so paid by tthe Unitedi St;tes, throughi a, ceomlnnission to
be appointed by the present actiual Do3)minican government,
towards the redemption of its publitc debt in a. mlanner conformable to the laws of the said Republic; this commission to
be respected and protected by the United States while in the
legal performance of its duties.  And the said Republic shall
hold its public bonds as security for the paymlent of any part
thereof, liquidated or unliquidated,-  hich mv1ay remlain unpaid
after such application, and after the execution thereof to make
no grants or concessions of lands or rights in lands, and to
contract no further debts until Congress shall assume jurisdiction over the territory, and officers shallL'le appointed to administer the. affairs thereof.  TIe     United States are in no
event to be liable for the paymient of any part of such debt,
or of the interest thereon, or of uany: obligation of the Dominican Republic.
"Art. 7. Until provision shall be macde by law for the government as a territory of the United Strtes of the domain
hereby ceded, the laws of the Dominican:.l republic, which are
not in conflict with the Constiu-'ardol  and la ws of the United
States, shall remain in force, arid the executive arnd other public oficers of the Republic sharll te;,in their offices until Congress shall enact lai s for the govoetnmll:t of the territory, and
until persons shall be appointed to office pL-ursuant thereto.
"Art, 8. Immediately after the exchange of the ratification
of this treaty, -the President of the United States shall appoint
a commissioner to proceed to the Dominican Republic and re-.
ceive the transfer of the domaints and the property hereby
ceded, subject to nte foregoing provisions.
"Art. 9. The recent treaty shal.il be ratified by the contracting parties, it being understood- that, it must receive the
constitutional atdvice  and  con-sent, of the  United  States
before it can be ratified on the part of the Ulnitec States Senate,
and the ratification shall be exchanged at Washington within
four months from the date thlereof, or sooner if possible.
"Art. 10. In case of the rejection of this treaty the United
States of America shall have tlhe right to acquire the Peninsula and Bay of Sama.na at any tnime prior to the expiration of
a period of fifty years, by paying  to the Domlinican Republic
the sum of $2,000,000 in the gotl coin of the United States.
"Art. 11. It is understood tha it uipon the ratificttion. of this




9
treaty the sum of $147,229 91 paid by the United States to
the Dominican Republic on account of the rent of Samana
shall be deducted from the sum specified in article seventh of
this treaty.'"In witness whereof the respective plenipotentiaries have
signed this treaty, and thereto affixed their respective seals.
DoneL in duplicate and good faith, in the English and Spanish
languages, at the city of San Domingo, the twenty-ninth day
of November, in the year of our Lord one thousand eight hundred and sixty-nine.
" RAYMOND I-. PERRY,
" IANUEL MIARIA GAUTIER."
SCHEDULE OF PROPEBTY MENTIONED IN ARTICLE 1.
"The stronghold of the city of San Domingo, which comprehends its walls, sixteen forts and small redoubts, two heavy
Datteries, various quarters, two powder magazines, the fortress
called -Homalnge and a park of artillery, with a full armament
of cannon and mortars, iron and brass shells, grenades, grape
muskets and other utensils and instruments indispensable to a
fortified place; the castle of St. Jeronimo; the castle of Jama,
on the river of that name; the Fort San Louis, at Santiago de
Los Caballeros; the castle at San Felipe, at Puerto Plata;
the Fort of San Francisco, at MIonte Christi; the Fort of Santa
Barbara, at Samana; the Fort of Los Cacaos, at the same
place; the Custom House at San Doningo and its depend,
encies; thte Custom House of Samana, built of timber; the
ports of San Domingo, Macores, Azua, Samana, Oterto Plata
and lMonte Christi, which are those which are licensed for
commerce with foreigners. There are, moreover, an infinity of
ports, bays, and coves which could be applied to similar use,
especialliy Baropon, Puerto Viejo, De Azua, La Caldera, La
BRomana, Charon, MIatanzas and Manzanillo.  Various other
points intended for fortifications, military stations, and which
have either been removed or not  et erected.
" Witness the hands of the said plenipotentiaries, at the city
of San Domingo, on the twenty-ninth day of November, A. D.
eighteen hundred and sixty-nine.
"RBAYMOND H. PERRY,
"MANUAL MBARIA GAUTIER."
SAMIANA BAY TREATY.
For this purpose the President of the United States has
invested with full powers M3r. Raymond H. Perry, Commercial Agent of the United States to the Dominican Republic,
and the President of the Dominican  tepublic has invested
with full powers Mr. Manuel Maria Gautier, Secretary of
2




10
State of the Dominican Republic, who, after exchanging their
said full powers, found in good and due form, have agreed
upon, concluded, and signed the following articles:
ARTICLE 1.  The Dominican  Republic grants immediate
possession and occupation in the form of a lease to the United
States of America of all the territory comprised in the Peninsula and Bay of Samana, extending from  (1'ape Samana, or
Rezon, to the R. Grand Estero, which begins at the mouth of
the said Grand Estero on the north, and termiltes at the
mouth of the Toujillo, at the western end of the Bay of Samana, as appears on the map of the Island of Santo Domingo
executed by Sir Robert H. Schomburg,. and:( published in 1858,
by order of His Excellency, President Bueneventura Baez.
The United States shall possess aInd occupy the above-described territory during a. period of fifty years from- this date;
and the Dominican Republic cedes by this act to the United
States the eminent domain of said territory ducing the above
described terms of occupation. It is understood that the Dominican Republic does not cede its right of free navigation of
the waters of said bay.
ART. 2. During the above-named term of occupation of the
said territory, the United States shall pay, as an annual rent
to the Dominican Republic, on the first day of January of each
year, in Washington, D. C., or in the City of New York, the
sum of $150,000 in gold coi- of the United States. The Dominican Republic hereby acknowledges to have received the
sum of $1.47,229 91 on account of the first payment under this
convention.
ART. 3. In case the United States shall establish a naval
and military station, or either, on any part of the tract herein
above described, the Dominican Republic shall, on demand of
the chief officer in command thereof, arrest and surrender to
the United States all deserters from the army or navy of the
United States found within the said territory of the Dominican Republic, but the expense of such arrest and surrender
shall be borne by the United States.
ART. 4. This convention shall be ratified by both parties, it
being understood that it cannot be ratified by the -United
States until it has received the advice and consent of the
Senate of the United States, and the ratification shall take
place at Washington, D. C., as soon as possible within four
months from  the date hereof. The United States shall protect the Dominican Republiic against foreign intervention during the time agreed upon for exchange of the above ratification.
Done in duplicate and good faith, in the English and Spanish languages, in the City of Santo iDomingo, the 29th day of
the month of November, in the year of our Lord one thousand
eight hundred and sixty-nine.    BAYMON) H. PERRY.
MANUEL MARIA GAUTIER.




11
From thr New YoYrk Tribu-te of.Feb. 6th.
A N N E X AT 1 0 N.
THE SAMIANA BAY QUESTION.
THE FINANCIAL OPERATIONS OF PRESIDENT BAEZ. -'-THE
MIORTGAGES ON SAiM.ANA.,
WASHINGTON, Feb. 15.-On the 13th of February, 1869, Gen.
N. P. Banks, Chairman of Committee of Foreign Affairs, addressed a note to the Hon. Win. H. Seward, Se(:retary of
State, of which the following is a copy;
HOUSE O:F REPRESENTATll'IVEAMS, I
(1C0MITTEE OF FOIREIGN AF1FAATiS,     -
WASHINGTOiN,   ). C., Feb. 13, 1869. )
MY DEAR SIR: It would very much( aidtl the coisisdera tion of
the San Domingo question, now beefore the Comn:mittee of Foreign Affairs, if a complete official statement, could be made of
the present financial andc political condition of tfhe Republic.
The subject has come so suddenly before us that we (  avee not
had time to reconcile the conflictino stLatements wihich are represented as coming from  the agents of thte R epXublic.  Mfr.
Fabens informs me that it would be easu  to obtain a full and
exact report, and I think it would in all i espects be advantageous to have it; and a.s Mr. Fabens -  our a(-ccreited agent.
I would suggest sending h]im  to S.-  1 Domingo for th at pur-l
pose.
It ought to be definitely ascertained, also, if any transfers of
territory or perpetual or other franchisaes to private individuals
or corporations have been granted, or are contemplated by the
Government of San Domingo, as  uclhl. tLansfers, if made to
any extent, would en'danger the plroie-t of annexation,  eveli
after it had been approved by Congr.ess.  In the meantinie,
the examination of the question here, filoml such information
as we have, will be continued.  Your obedient servant,
N. P. B \AN, Chairman, &c.
THE HON. WILLIAM H. SEWARD, Secretary of State.
Pursuant to the request of the Chairuman of Foreign affairs,
Mr. Seward dispatched NMr. Fabens to San Dominlgo, with the
view of obtaining all such information t a.t s wnas suggestsc in the
letter of General Banks.  Especially was he directed to look
into the condition of the debt of the Republic.  Fabens remained two days in San Domingo City, and inmmediately returned to Washington, brining    the statement that the debt
of San Domingo was only $600,000 (or perhaps a few thousand
more), but he had no information to comlmunicate to the Secretary of State respecting grants, concessions, and franchises.
Fabens was himself at that time supposed to be interested in
grants and franchises.




12
Fabens returned to Washington about the 1st of April; and
wefind Baez, his Ministers, and the Consulting Committee of
the Senate making a loan on the first day of May following.
The contract for the loan was made.  It was first printed in
the Government journal on the 29th of September, 1869, nearly
five months after it had been made, and has only quite recently become known, as that journal has only a privileged
circulation. The following is a statement of this contract, ill
which the text is quoted of the clauses now of most import —
ance:
The Government of the Dominican Republic, desiring to
contract for a loan, with a view of developing its public works,
as well as the national commerce and industry, has settled
upon and agreed to the following basis betwreen said Government, represented by C. Ricardo Curiel, Minister of the Treasury, fully authorized to that end, and Senor Eduardo H. Hartmont, representing the house of Hartmont & Co. of London,
and all other houses who may be interested in said loan.
ARTICLE 1.-Names the amount of the loan, ~420,000.
ART. 2.-With regard to the interest and the sinking fund
(which is finally to pay up and cancel this loan), the Dominican Government binds itself to pay to the contractors of this
loan the sum of ~58,900 sterling per annum, payable by halfyearly installments, respectively on the 15th of December and
June of each year, and which loan is to run for at least 25
years. The first of these payments shall be made on the 15th
of June and December following the emission of the loan.
ART. 3-States thas the loan shall be represented by bonds
ayable to bearer, and that subscriptions are to be opened in
London or elsewhere.
ART. 4-Authorizes Hartmont & Co. to fix the nominal
amount of the bonds, the interest thereon, and the amount to
be set aside as a sinking fund. The amount not to exceed the
annual payment stipulated.
ART. 5-Bonds to be of such denominiations as Hartmont &
Co. shall decide. Stipulates that the bonds are to be signed
by the Minister of the Treasury, and are to be provided with
semi-annual coupons extending to 25 years, and payable at
London, Paris, and whatever points Hartmont & Co. shall
name.
ART. 6.-The cost of printing the bonds and the general expenses of the loan are to paid by Hartmont & Co.
ART. 7-Stipulates that Hartmont & Co. are to pay ~50,000
on the day of signing the contract, and the balance of the
loan within the last six months of the current year.
ART. 8.-All moneys paid on account to be deducted at the
next payment.
ART. 9.-The regular payment of the sums necessary to the




13
settlement of the interest and sinking fund is guaranteed by
the cash in the Treasury of San Domingo, its custom-houses,
rents, and domains.  For the present there is accorded to the
holders of the bonds of this loan a first mortgage on these
fore-mentioned classes of property, the State of San Domingo
having no other debt.
ART. 10. —Iortgages the Custom-house receipts of San Domingo City and Puerto Plata, which amount annually to
$500,000.
ART. 11.-Authorizes Hartmlont & Co. to appoint agents to
supervise the customs receipts each year, until the required
sum is received
ART. 12.-Bonds which are to be paid off in consequence of
an annual drawback, to take place at London, are to be received
as cash at the Custom-house to the extent of one-half the
duties payable.
ART. 13.-The tariff rates on exportation and importation
not to be reduced without the consent of the contractors of
the loan.
ART. 14.-As a supplementary guaranty, the Dominican
Government authorizes in favor of the takers of this loan a
first mortgage upon the coal mines and woods belonging to
the State in the Peninsula of Samana to the east of the great
Estero, as also upon the duties which shall come into the
Treasury fo; t1ie exportation of guano from the Isle of Alta
Vela. The;viking of these mines, and the control of the
woods and guano have been conceded already to Senores
Hartmont & Co., under special contracts, one of the clauses of
which provides that all the duties or rents coming to the Dominican Government on account of these rights of controlling
guano and woods, and of working mines, will be paid directly
to the holders of these bonds, which sums are to be applied to
the payment of the interest upon, and the sinking fund of this
loan.
ARc. 15. —The Dominican Government engages to pay the
banking-house charged with the payment of the coupons a
commission of 1f per cent. annually upon the amount fixed
for the payment of the interest and sinking fund.
ART. 16.-The contractors are authorized to retain the funds
necessary for the payment of the interest and sinking fund of
the first year.
ART. 17.-The bonds are not to be taxed.
ART. 18.-The pound sterling to rate as 25 francs. The
contract may be assigned.
RICARDO CURIEL.
Signed, May 1, 1869.            EDWARD H. HARTMONT.
The signatures of President Baez and the Cabinet are also
attached in approval of the above.




14
ADDITIONAL CONTRACT ENTERED INTO BETWEEN THE SAME PARTIES.
ARTICLE 1-Concedes ~100,000 to T-arlm11ot & Co. to compensate for risks, and as commission.
ART. 2-Secures Hartionlt &  Co this sum, even should
they transfer the contract, but in tha't e-ve-nt no furthll(r commission is to be paid.
RICA.;RDO CUREIEL,
Signed, May 1, 1869.                    (H"RTirOtNT & C(o.
Approved as above.
The contracts above given wer  made ai   and signed about a
month after Fabens had been downT to Sail Doming'o, and
were concluded in a quiet, secret mann-er, so)  t. lthat the outside world should klnow nothing of nwihat wAas  anspirina.  Of
the ~50,000 that were to have been paidl down at the conclusion of the contract, only ~3,000 nere reeiive-d by Baez, because of certain successes of tl-e rebels in te neighb11orhood
of  Seybo, w\hich  intelrrpted  flu't ler paymyents.    This
appears by the report of the TI'easury- Mi-niste  of the Republic.  The remaining ~47,00() have been?il since, but no
public statement has appearedc showig  who reiteived the
money.  It is known, lhowever t ha  it ifoun  its wa y into the
President's pokelt.  The cont'act for the loan is still in full
force.
In this connction we quote the fol lwino paragraph from
the London. Ti2mes of Dec. 7th:
"Respecting  the  San  Domiungo six per cent. Government loan for ~757,000 recently  issued by    essls.  Peter
Lawson & Son, the following n1ew aai:a.iBenlemts are stated to
have been made: 1. A royalty of c~. per tol of gnano, sold in
England, will be set aside for the service of the loan, and as
the quantity is expected to reach 6(0,000 itunLs per annum, the
whole amount required (for interest andi sinkiniun fund), viz.
~58,900, nmay be thus secured by thle salce of glano. 2. AMessrs.
Spofford, Tileston & Co., of New York, ow'neres of a line of
steamers between New YorkI a1nd the por-ts of San Domingo,
have been appointed agents to ccollect th e c-ustolom duties hypothecated to the bondholders, and the collection thus passing into the hands of a powel eral  Aicatn firm, the contract
offers a much more satisfactory securi-:t than. before."
Now, let it be b-orne in mind tl    Peter L- awso  & Son are
the assignees of this same loan, the feat-re.s of which have
been heretofore detailed.  By the telrms of the contract signed
1st of May, 1869, it will be seen that all the coal mines and
woods of Samnana are pledged as a security for the loan, as
well as the guano-beds of Aita Vela; so that, in fact, should
the Samana lease be ratified by the Senate, the United States
Government would have to assume this liability of ~757,000,




15
or be deprived, for 25 yea.rs at lea st of the use of the mortgaged property.
Another paper before mne sh.ows that before the conclusion
of the loan for ~420,000, a contract had beel entered into between certain citizens of New York and the Government of
Baez for su'veys, the considera-tionl to be given by the latter
being grants of n)ii  lands.  How maony other coniidential associations of a s'ilai.ia  kind mal   there be in the United
States?  It is knowrwn t-that O' Snilivan has a concession for the
navigation of tihe Yuma river.  Fabens is the (.orccssionclre of
lands and mines in San Cristobal; and claims the same rights
in San  Cristobal of Azonmante, and, likewise, in Palenque,
O'Sullivan has also land concessions, as has  also Spofford.
(Copy.)
St. Domingo Co., Wm  L. L  Hlsey, President: Win. H. Taylor, Secretary; J. Y. oung, Win. R. r'Iravers, Ben. EHalladay,
Win. Morris,  Cyrus H. McCormack, Trustees; Win. M. Gabb,
Engineer.
35 William Street, May 5, 1869. cominmenced bus(iness) March,
1869. capital st(ock one million d(oilars.  This Co is organized
under New York State law for the ptrpose of surveying St. Domingo.  The Government of the Republi,: is to pay for the work
by grants of mining lands.  The nmet in the Co. are respectable
and wealthy.  The President says they will seek no credit.
NEW YORK, May 6th, 1869.
Messrs.      --
This is shown to you in confidence, and for your exclusive use and benefit, and in accordance with tihe terms of the
agreement existing between us.
Respectfully,
Frm. N,- w Yor. k &Sun o/'f Mliarch/ 3rd, 1870.
THE SAN DOMINGO SELL.
THE ANOMALOUS COMiPANY THAT REQUIRES NO CAPITAL.
New Yorkers Operating in San Domingo.-.-Pililig up Debts for
Somebody to Pay. —Peculiar Bankinlg Facilities for New
Yori;  Bankers.- "Also,  Steanmboat Privileges.
WASHING'TQN, MAarch 1, — 1Mr Fab)ens was sent. about the 1st
of February, 1869. to Sa-n Dominigo, at the instance of Gen.
Banks. lHe was to; have looked into the condition of the finances,




debts, and liabilities of the Republic. Strange to say, he remained only a few  days, when, returning  to Washington, he
reported the public debt at $600,000, but made no statement as
to  other liabilities, concessions  of grants  of territory, to  which
his  attention   lhad  been   likewise  particularly   directed   by  Mr.
Seward.   The truth is that the honest debt of',an  Domingo  did
not reach  the  sum   reported, but. as will  be  pres,'ntly  seie, the
actual  amount of indebtment, already  accrlued  al     due  at that
period, was  about  $3,5(00,000. without  specifying- other  loose
claims  held  by  different parties  against  the   Government.   To
exhibit these  facts  in a clear  light, it will only  be  necessary to
refer to  the report of Ricardo  Curiel, Minister of the  Dominican
Treasury, made to President Baez, dated 29th March, 1869, and
published  in the Bulletin  Official of the Republic  (No. 63), of the
8th day of May, 1869.
Conformably  to  the dates, says the  Minister, which  are  found
registered in the General Accounting Office of the Treasury,
there was in  circulation  in  this territory  on  the  1st of February,
1868, paper money  to  the  amounnt of  $2.628,300, issued  as  follows:
Under the Government of the Pretectora.te( (decre(- of the Ab          s    hnblv
Constituent of 23d of October, 1865).......100,000 0.
Uunder the administration of Baiez, conforinablv to decree of N'ational
Congress of 12th of March, 1866,................................ 1'.!00 00
Under  decree  of April of same  year,....................................          1).('  00
Under tile Triumvirate,  decree of sub-delegation of 29th July, 186.T,   2800..  (i.  t()
Under the administration of Cabral, emission of Slst of May. 1867,...             2;0.000i 00
Bank  bills issued    August, 1867,........................................ 1..    0 1 )0.   00
Emission crf bank notesF, 30th of October. 1........................   1,,0 00
Total............................................       00
El-ision of Iotes, Nov. 30, 1867,......................................   129,800 00
Total,.i..................                                        O
The AMinister of the sTreasurv in the same report.-pecificis in(ilrsv oth}er
debts. which are ca.lled the National Loa-n, amomuntin  to...........            17,39
Due  bills   (vales) [see   do. No. 8].....................................     57,182  84
Drafts drawn by the general accounting officers of the Tre-asnur......12   35
Due bills issued by the general accounting office under conlen ti ol,f
Nov. 27, 1967.................................          2,20;5 50
Other due bill................                           5.467 75
Total,..............................                34
To this;lurn nlAust be addedi due bills drawnl hl  tlhe Treaslur,...........;5 (2    S
The Mlinister tlhen speaks of onot.her class of dIebi. c,1tcllwed pb'llic deht,
w\hic'h wals incurred ill the war of th le1- tl'rati(} n: tlte I tta  of this
he places, 3ist Jnn.. 1868, at..............................           
From    the  1st  of  February,  1868,"  the  same  officer  cli'
tinues, " the country was overwhelmed with an immense debt'
and  this was the  case, without taking  into  account the  sa'laries
of  public  officers, due  and  unpaid, and  the  expenses   lle i!'ed
during the Revolution which brought Baez back into power.
Other due bills had to  be issued, which, by  the by, gave a greater
guarantee to!commerce."




17
The different branches of public administration iss.ued, fro.m Feb., 1868,
to March, 1869. due bills, (see doc. No. 17), to the amount of,......-  $29,728 87
The administration at Santiago,.......................................   68,951 39
The  admiistration  of La Ve a....................................      394  9
The administ ration of Samana,..............................         303 15
The administration  of S intiago.......................................  355,371  26
The administration  of Puerto  Plato..............................   42,138  88
Total...........................................$3,745,387 97
Due to Jessurun & Son,...........................................   14,000 00
Other  debts  to  same  parties,..........................................  39,000   00
The Minister then  alludes to the  loan  made by  Hartmont,
Herzberg & Co. to the Government for $1,995,000, less commission, ~100,000 at $4.75; ~475,000, nett $1,520,000.
This loan is to run for twenty-five years, and 8 per cent. intere
est is to be paid  upon the same.  To pay the interest and provide a sinking  fund, ~58,900  per annum  are  required.  This
involves  the  Republic  in  a  liability  of $7,081,804.68.  The
Minister further mentions two sums as due to Hayti of $20,000
and $25,000 respectively-$45,)00.  Hence we have up  to  the
present, $10,925,193.55.
But this is not all.  Curiel, the  Minister, mentions (Boletin
Oficial, No. 72,) the concession  of )banking privileges accorded
to certainr  New York gentlemen for the establish!nent of a bank
at New York, whici, as will be seen, increases the liabilities of
the Government by another million.
ARTICLE 1. Concedes full authority to establish a bank of discount, exchange, and  deposit, with privilege to issue notes, &c.
ART. 3. Capital is limited to $1,000,000.
ART. 4. Gives bank  the privilege  of buying, selling, and  discounting bonds, due  bills, bills of exchange, shares, mortgages, &c.
ART. 5. Bank can issue notes redeemable at sight in  the City
of San Domingo in gold or silver.  To guarantee this emissioti
of notes the banks will deposit in  the general accounting office
of the Treasury a quantity of bonds, or evidences of debt, to  be
purchased  of the Government, (of San Domingo,) or private individuals, and  the amount of these bonds, &c., to be deposited,
are to be equal, at ieast, to the ole-lhalf of the amount of the
notes issued.  Tile hank  caniio. begin operations at all before
the amount of $50,000 of these bonds shall have been  previously
deposited with the Government.
ART. 6. Specifies the sort of bonds that are to be required  by
the government of the incorporators.  These are to  be issued
upon a new loan to be thereafter contracted  in London  or elsewhere, and based upon the rents and receipts of the San Domingo mines (already pledged to Hartmont, Herzberg &  Co., and to
various other parties.)  The proceeds of sales of the public lands
are also to be appropriated to the payment of tlie new loan.
When the fact is stated that this last million has already been
3




18
put upon the market, it will be perceived that the liabilities of
the Government already touch $11,925,193.55.  Again: there
is a Company in New York, which has been organized ostensibly
for the purpose of surveying San Domingo.  A  little  slip of
paper lies before me which contains to a certain extent the character of this enterprise:
-President;, Trutsees; —. Engineer;
-street.  Organized March 1, 1869.  Co(mlinencod business
May 1, 1869.  This Company is organized for the purpose of
surveying the public lands of San Dolinlgo, and is to be paid by
concessions of mining lands, &c.
The President says he does not watul any capital, &c.
Messrs..  Tiis is to show you il confidence. &c.
Well, according to the best information ttiis concession has
already been obtained also; how  much land has been surveyed
no one knows-perhaps not an acre.  We have now reached
$12,925,193.55.  I had forgotten that the i-iartmot loan has
been put upon the London market, not tor ~420,000, as agreed
by Baez, but the amount has been swelled to ~757,000.  The
calculation will not be difficult to make.  If a, loan of ~420,000
shall cost at the end of twenty-five years, $7,081,804, what will
the additional ~337,000 cost at the end of the same term, and
payable in the same way-$5,585,124.19.
Resume,............................................................. $12,925, 193  55
Add,.........................................................   5,514,816  89
Total,............................................   18.440,010    44
In the above estimate no mention is made of the fact of a concession to J. P. O'Sullivan, of a privilege to run a line of steamers between New Orleans and the port of San Domingo, by the
terms of which 15 per cent. less duties are to be charged upon
all articles of merchandise imported by said vessels than when
coming by other vessels.  As long as S;an Domingo shall continue as it now is, this line of Mr. O'Sullivan's will hardly begin
running, but with the annexation of the territory to. this Republie-what might not be expected?  That O'Sullivan  would
freely and without compensatiou give up his concessions.
It is rumored that only $60,000 of the lmonoey carried out by
the Albany, remained in San Domingo; that sotne of it came back
to Washington in the same ship, and that a certain gentlemaln
prominently mixed up in this annexation business, and wh.o went
out with  the $150,000, bought and paid for a fine house in
Washington as soon as he came back.




19
Fr'om New  Yorkk Sun of   arch re  10th.
ST, DOMINGO  A GAIN.
The St. Domningo Excitement ill London.-Speculations in the
Big Loan —Runs up to a Premiumn of Two  Per Cent.Falls Suddenly. —Axiety  of the  Honeyed Britishers for
Annexat:ion.- About 7 78.000 Pounds Sterling Sold.
Cosrrespon0denece of the.l,^l:
LONDON, Feb. 23, 1870. —-There is a fact which  must have
struck at once intelligent Americans withl respect to this annexation scheme., viz.: Thle great enlcour'agement given to it by the
English press.  The Times, the Daily Artvs,lthe Money Market
Review, the Daily  Teleg'raphl, hiave  -all printed  leaders and
articles about it, and intvarialdy express a hope that America
would aniex St. Dominiuo, and take Santianai &c.  Timeo Danao set dona ferentes.  Is there then  such a good feeling  inl
England toward Amlnerica at this moment?   Quite thll  reverse.
Reflection should lhave led your people to see that England has
very good reasons foi the course sihe is prnsuing.  Indeed, her
most natural course would have been to oppose by all possible
means the encroac}himents,f America (the United States) in the
West Indies, because ol  the danger thjat mrenraces the safety of
the English coloniis; bnut not;h:ino' voliriid please the Britishers
better than to see America in a m lsnl.  They  have learned,
through  the  engineers, doctors, agriculturists, iad politicianls
whom Lawson & Co. have senrt to St. Domingo, that the couLitry, though very rich aod suitaleulo for tohe native St. Dominican,
is worthless for all Europeals and Americas..
Immmigration and colonization a1r  i  i)ossible on  account of
the climate alnd the fearful maladies, wiich have destroyed before now on that soil t;he armies of France and Spain.  Besides,
the Monroe doctrine "Cee fully inaugurafl ted in the Antilles, the
whole of the South  Almerican rerpublics would at once join together in self-defence and form  a permlanemt armed opposition
and menace to the United States.   But the most direct reason
is, that there are about three-quarters of a million sterling at
stake for the finatciers engamed in tlis affair, which now  ilangs
upon the pro and con of the Amneraican Senate.
B ez has discounted tlIe annexation of America in the London
market, and the Tinmes publicly advised the English people to
invest in the loan, just so soon as President Grant had sent his
message on the subject of Samaiia to t e Senate. This happened
so, because it was supposed that Amlerica would have to pay
England  eventually  in hard  cash  for acquisitions in Samana.
England had the first offer of this bargain and rejected it.  She




20
refused to subscribe to the Baez loan, but now that America
comes forward, the loan  has been  revived  again, and even
reached, a fortniglt ago, one or two pounds premium.  The
quotations are much lower to-day, as America slows signs of
hesitation, and as the news of the Dominican revolution is more
favorable.  As soon as it was known here that America was
likely to pay Baez's debts, Mr. Lawson's friends took the remaining three-quarters of the loan, and the Stock Exchange has
quoted the loan ever since.
You will perceive, frol  thle Times of the 25thl of January,
that only on the promise of President Grait to keep the creditors of Baez harmless, tle remainder of the loan, or about ~600,000, came into the market; whereas, before tills, only ~178,000
had been subscribed by Lawson's friends.  I learn that Hartmont has gone to America to distribute money among some interested parties, so that the proposition of annexation may be well
defended.
It is understood that a chancery suit is to be brought in a very
few days against Lawson & Co. The charge to be made against
them is for trying to defiaud the English public with this St.
Domingo loan.:HOW THE NAVY DEPARTMENT EMPLOYS OUR
NATIONAL VESSELS.
Correspondence of the Sun:
ST. DOMINGO, Feb 20. —The present Governor of Samana is
Fabens.  The paitizans of the annexation project have so far
triumphed, but it is believed that their days will be speedily
nunbered.
Jessurun & Co. have collected for the President ~40,600 of
the English loan, about which so much has been said in the
papers.  -le takes good care of all moneys lhe gets firom foreign
countries-the vieux avare.  His partiality for good jobs is as
strong as ever.
The President is now  having a very fine time.  A  United
States man-of'war is always, oF late days. near at hand, and the
Chief of State, and his ficends and advisers, while away a good
portion of their time in cruising along the coast up as far as
Bani and Azua and back, just for the pleasure of the thing.
It is understood  that Baez, Fabens, and Cazneau are all interested in the new St. Domingo bank, as well as in all the other
good speculations.




21
PUJOL-SEWARD TREATY.
CONVENTION BETWEEN THE UNITED STATES AND THE DOMINICAN
REPUBLIC.
The United States of America and the Republic of San Domingo being desirous of drawing closer together, the good relations which exist between them by means of reciprocal fafors, have judged it opportune to agree upon fundamental
propositions to that end.
In consequence, the President of the United has conferred
upon William H. Seward, the Secretary of State, full powers,
which are to be used in his name, and the President of the
Dominican Republic has given his authority to General Don
Pablo Pujal, to the end that he may act in the name of said
Republic; and said plenipotentiaries, after having exhibited
their respective authorizations (which were found to be in due
form) have agreed upon the following articles:
ARTICLE 1. The Dominican Republic, by these presents,
leases to the United States, for the term of ninety-nine years,
the territory known as the Peninsula of Samana, and the Keys,
known by the names of Levantado and Carenero, with all the
rights and appurtenances thereunto belonging, and according
as the same have hitherto been held and claimed by the government of this Republic. The territory, which by these presents is leased, is to be understood as that between Cape Samana, on the east, to the Grand Estero, on the west, about
forty-five miles by about twelve miles of breadth in the widest
part. The Bay of Samana, or the Grand Concha, which forms
it, is bounded upon one side by the Redonda Mountains, and
upon the other extends from Cape Samana until it reaches the
mouth of the Yuma. By this cession the Dominican Republic renounces, cedes, and transfers to the United States the
complete and exclusive sovereigty, property, government and
dominion of all the possessions mentioned during the full term
of the lease.
It is understood, notwithstanding, and it is agreed, that the
lease stipulated in this article does not include the ports which
are to the south of the Bay of Samana, or the Keys, which are
not a mile from the line of the southern part of said bay, nor
does it prohibit the free navigation of the Bay for the purpose
of entering or sailing from the ports on the southern side of
said Bay.
ART. 2. In the lease made by the provisions of the article
which precedes, there is included jurisdiction over the waters
of Samana Bay, and of all the bays and ports of the aforenamed Peninsula, excepting that which is reserved by the
Domican Republic in said preceding article; and, likewise, it
(thelease)- includes the right to re-open and to have exclusive




22
use of the water communications which heretofore existed and
crossed the western part of said Peninsula; and, likewise, of
all public grounds, parks, uncultivated lands, mines, and minerals comprehended within the limits of said Peninsula, and of
all the public buildings, fortifications, quarters for tiroops, and
other edifices which are not the propieery of p'ivate parties.
The United States will be given complete pos'session of territory,
of all rights, and whatever pertaeins to t.he p-ro-pery leased, as
has been stated, without any delay, after the ratificdation of
this treaty shall have been exchanged.
It is to be understood, notwithstanding, and it i s agreed,
that no transfer of land, situated within  the lim:its of the leased
territory which has been made by the Dolmic.'  government
within five years time prior to this date, s1slia   ebe considered
valid, so as to prejudice the United States.
ART. 3. In consideration of the foreg-oino- det ailed lease, the
United States of America will pay to the governmilsnl  of the
Dominican Republic, in the Treasury at Washington, the sum
of one million of dollars in gold, upon the ex'hange.-"e of the ratifications of this treaty, and will deliver to thie government of
said Republic artillery, arms, munitions, and osJhe   war1iike
stores to the amount of another million of dollars in current funds of the United States, which. dieivery shall be effected in those )ports of the United States wThich may be designated by the Dominican government, the co(ts and other expenses attending the transportation of tile sa:1me to be at the
charge of the Dominican LRepublic.
ART. 4. The artillery, which is to be decOivared over pursuant
to the provisions of this treaty, shall be of- such caliber as the Dominican government may select, no piece exce.e:iigl, however a
ten-inch bore. The other arms shall be Springfield rifes, equal
in quality to those used in the United States airmy  during the
recent rebellion, or English rifles, of ti;e LEtiis  pattern in
the United States artrm.  The army stonx e os are to be of a good
quality  and in  good condition, -a d  suitable  for artillery
and the other classes of arms above men ioie'. The price
or value of the articles, arms, and imunitioans of war, is to
be fixed at the price of the manufactory, ani  this is to be
determined by the Chief of Artillery of the armies of the
United States and a Commissioner, who is to be named to this
end by the Dominican Republic; and in case of disagreement
the matters in dispute will be settled deflintit.vely by the General in chief of the armies of the United StLates, who w1ill act
as umpire, in case that the Chief of Artillery and the Dominican Commissioner may not be able to agree.
ART. 5. The government of the United States, as a matter
of course, has a full, complete, and exclusive ri:olht to fortify,
garrison and protect the territory leased as above stated,




23
for and during the term  expressed, with such  fortifications
and forces by sea and land as the President of the United
States may  judge convenient,  and  has, also, the  right
to remove at the esxiration of the term  all the artillery,
arms, and mun1itions of wai, or other property which may be
deposited there during said  forementioned  lease, by the
United States; or the Dom-inican Government may, at its option, purchase the same, or a part of the same, at its just
value, which will be paid over to the United States.  And in
no event shall the United States be asked to pay for any betterments, appropriations, diminution in value of the property
leased, its products, minerals. or other material resources, during the term me-ntioned.
ART. 6. The citizens of th;e Dominican Republic domiciled
within the limits of the leased territory, as has been fixed by
this treaty, can retain the particular property which they
possess in said terrlitory, and can  elect within two years
from the excilange oi the ratifications, of this treaty, whether
they will remain  there and become citizens of the United
States, or leavee th  territory, thus preserving their character
as citizens of the Dominican Republic.
ART. 7. This treat   will be ratified ib  the President of the
United States, by anid with the advice and consent of the Senate, and by the President of the Dominican IRepublic, with the
consent of the Congress, and the respective ratifications shall
be exchanged in the City of San  Domingo, within
montehs from thlis d ate, or before, if possible.
In faith of w1ich rve the respective Plenipotentiaries, have
signed this convention, and thereto we have affixed our seals.
Done in tie City of WVashington, on the       of February, in
the year of our Lord, 1868.
SPaNISH TI REATY, T-iAT WAS PR0OPOSED, BUT NOT RATIFIED.
From the Gc-rcc  o0S'(t,?. _)Do?,i,'`,o, No. -02, dated July 6th, 1865:
A convention drawn aup iln pursuance  to the law  of 1st of
lay of the present year,'wheich sets aside the Royal Decree of
19th of lay, 1861, re-incorporating into the AMonarchy the territory of the Donminican lepunblic.  This is celebrated between
D. Jose d1 la Gatudiara y NtvarI'ro, Captian-(-General of San
Domingo and c- Geeral-in-chief of Army, and General Don Pedro AntJonio Pi-mentel, President of the Provisional Governnibnt of'the Domnlical- people, who is represented by the generals, D. Jose deel CGarmen R-einoso and -D. Meliton Valverde,
and the Presbyt-er, D. Miguel Quesada, his Commissioners,
clothed with full powvers in the premises.
ART. 1. The Dominican people, upon recovering their independence by an act of magnanimity on the part of the Spanish
nation, recognize and declare that the government of Spain
was moved by the highest generosity and nobleness of con



24
duct, when it was pleased to accept the re-incorporation of Sa".
Dom;ngo, to which event circumstances lent all the characer
of spontaniety and of free will on the part of the Dominicans.:
and by virtue of which Spain has been acting within the limits of her own good right in opposing, by means of arms.
the restoration of the Republic so long as she had a reason to believe that she had, upon her side, the support of
the country, or, at any rate, that of the great majority of
of the  inhabitbants; and, moreover, that she has acted
in conformity with  her traditional nobility  of character,
when, convinced that a majority of the Dominicans desired,
above all things else,their national independence, she suspended
the use of force, and renounced forever the possession of the
San Domingo territory, thus giving the highest proof of her
respect for the legitimate rights of any people whatever, without regard to their strength or weakness.
The Dominican people declare,, also, that it is its firm intention to preserve the generous friendship.of the Spanish nation,
which give it an origin and existence, and in whom, for this
reason, they hope ever to find the kindest disposition towards
themselves, and from whoin more protection than from  any
other people.
The Domican people declare that it is their vehement desire to celebrate a treaty of recognition, peace, friendship, navigation and commerce.
ART. 2. It is agreed that there shall be a reciprocal exchange
of prisoners, without regard to nu-nber, qullity, or category,
each party delivering up those within its power to the other,
and each giving, at once, orders that the exchange may be effected at a point nearest to the places of confinement.
AnT. 3. With the happy view,;.nili to tie end, of securing
peace, the Government of the Dominican people takes pleasure in declaring, as without effect, all the rigorous means
which, by the force  of circumstances, it was under the
necessity of adopting during the revolutionary period, and
in  consequenc, declares, and it is hereby  agreed, that
the political acts of all classes of individuals, without exception of persons or categories, hiapp[ening within the course
of patst oven-s, sh tll be exempted tI:oa itll maunner of responsibility, it not'beiln  permi.tted to persecute, disturb, or bring
charges againsu any one fior the opinions which he has. expressed or maintained. The Dominicans who have been faithful to) Spain, serving her cause with arms in hand, or she)wving
their adhesion in any matter whatever, may remain in the
country under the protection of its laws and authority, and be
respected in their persons, families, and properties; or they
may leave of their own free will, and shall have the riglit,
either upon leaving, or after they shall have taken up their




25
residence elsewhere, of selling their property, or otherwise disposing of it according as it may be convenient, with the same
liberty as the other subjects of San Domingo.
Those who shall find it agreeable to their inclinations to follow the flag of Spain to other points in the domains of the
Monarchy can return to their country at whatever day they
may feel disposed, and by submitting to its laws, enjoy the
same franchises and rights as those enjoyed by other citizens.
Spanish subjects residing in the territory of San Domingo
can remain in it, or absent themselves and return whenever it
may suit them, and shall be respected in their persons and
property in the same manner as subjects or citizens of the
most favored nations. There are excepted from this provision army deserters.
ART. 4. The Dominican government obliges itself to pay to
the government of Her Majesty an indemnity, (the amount
which will be stipulated in a subsequent treaty) for the loss
on Dominican paper money, for expenses of the war, of government, and administration of the country, and for the places
bettered by the expenditures and the administration of the
Spanish government.
The time of payment, and the form in which this is to be
made are matters which will be comprised likewise in the
treaty, of which mention has been above midce.
ART. 5. -Until the day shall arrive on whielh the Spanish
government shall celebrate with the Dominican government
the treaty to which the first article refers, the same Dominican government obligates itself to concede towards the ships
that navigate under the Spanish flag the same custom house
franchises as those enjoyed by the most favored nations, and
to accord to them the protection and aid which the law of
nations prescribes in cases of damage, forced entry, or any
other maratime disaster.
ART. 6. The sick in the army, and the reserves who shall be
found at the moment at evacuatian in the hospitals and whose
grave infirmity may not permit their immediate embarkation,
without incurring the (langer of losing their lives, shall remain
under the protection of the laws of nations; the Dominican
government obligating itself to treat them with the care and attention that humanity demands, and causing them to be assisted and ad ca    for with all the consideration and attention
necessary.  The expenses, however, of all which will be upon
the Spanish government, and these are to be punctually paid
by the commission which will be subsequently appointed to
take the sick in charge.
ART. 7. The Dominican government obligates itself not to
sell any part of its territory to any nation or people, or to
make any agreement which may prejudice the interests of
4




Spainin the Antilles, without the intervelntion and consent of
the Spanish government.
ART. 8. For the fulfillment of the points stipulated in this
convention, as well as to protect the Spanish subjects who
may remain in the countsry, public agents of the Spanish
government will be permitted to remrnai.  i  the country, in the
character of special commissioners, until. th, (ei.'ebation of the
treaty of peace and friendship shall have been adopted, which
has been referred to in article 1st.
Thus done and signed at Guivia, a.t the  Quiint El Camelo,
outside the walls of San Domingio, t;he th da(y of June, 1865.
Jose de la Gandara, Jose del C.  einoio, MoI.liton Valverde,
Miguel Quesada.
FROM GACETA DE, SANTO DOMINGO, No., 402' OF JULY 6, 1865.
Don Jose de la Gaudara y NavaiTro Govei rno  Captain General of San Domingo and G-ene: al-in-Chief of tih  army of operations.
The gove-rnment, of Her         (M.iajesty (whIim rnod preserve) animated by the laudable purpose of puttin,  an etnd to the calamities and  lhorrors consequent upon a-.   ontest, which,
however just and necesstry for it, began to assume the nature
of  a  war  for  conquest  (which   was  very  different
from  the intention  of Spain, at the mol ment of accepting
the free re-incorporation of the ancient  Dominican lRepublic); and acceding, besides, to the fervent wishes of the
government of the revolution, expressed in the manifesto presented to Her Iajesty in the mon;th of January last, resolved
in accord with, and by thle autliorizatoion of the Cortes, to
abandon the Islandc, in the belief th}at the DIominicans, moved
by a sentiment of gratitude iat such. i. I-       ot oof of magnanimity and putting into practice  thei-r  rotoestations of
friendship and sympathies towards thLe Spanishi people, (which
is reviewed in said official document) would co-rr'espond worthily and loyally to such noble conduct of 1Her Vla ijest's government. JUnfortunately, this Ihas not been the result, and the
simple relation of events which have recent-ly transpired, place
in a distinct light the proceedings on the part of the one and
the other party.
The Cortes of the kingdom, upon decreeing by the law of
the 1st of May last tohe abandozn-ent of San DQm-ingo, subordinated this act to the comditio-orOs  that wr:e expressed in the
second article with respect to the execut-ioi:l of which the corresponding instructions have been comllmunicated.
-:The goveLnm ent of the revolution, instructed as it was opportunely, o, the beneficient disposition of tile Spanish government an.d people, named three commissioners whom it
invested wih. full powers to draw up.a conventionand arrange,
as friends with the other party, every matter which hi-ad a con



27.nection  with  a  termination of the war, and which included,
also, the giving u)p of the terr:i'o     occapied by the Spanish
forces, and a definite pee' be weetin San Domingo and the
Monarchy.  I-t.-approved bI'forehlland, ifor itself,- alnd in the name
of the RepubZlic, a1!l that t]heso commin- issisonels would do or agree
upon  by  viruie of the aforesaid unlimniaed mzanldate,'without
mentioning any co.ditlon, ofaT y reservaton in the
matter of r.atificl-ti on;  in proof o:  which, accordcing to its
judgment, the project-ed,onvel'ionl slolld   e  b lLfii.'i   and
obligatory upon tile contiacting paries;, and.  sahould be  ilmmediately execut.,ed wlithout forma:lit-,  This end was  dleanded
by the principal obiject Lhadc in viwlv, (whli wias pu.et'ly thiat of
hunaanity) beside-s, he ciri3;umtti:a.nces of he cot untr;   required
it, and abo  te ivei an, tices in ie way oI. a.t;             promt lpt
ratification  on th:L prart of, tl he  3,I)-.an'il g'-'overlim0enet      any
treaty that migdh bt b       eed upon (which resul it-t f-rom  the
great distance  at which the Pe: ma:il a4..-     wa.s plted ft:om the
theatre of eve.ts), uroged i'
In virtue of all whichl, negotinatoi;s s w-er  beg-i btweel tie
aforesaid col-mmissioner:,s; andc miyself on tie 6thi oe-: Jlu-e lausIt, and
a           COnYv'3enltiont wsP  daw f pt an'1 d s:P;.e...i'.s hal s  b    een. subsequentlv disa:'pr,: veci   tb  the gove' —ai.e1  of1 -'the  ev eVlutiou.
Consequaenti l  th.-  ua.antee,    w c  wer  dmanded pu lrsuant
to article 2d of t(ji l,-w ref.r,0red to, i::s  iei..    as bv  the instiructions from:- Her     -  jes    ov    r     nt wi iee reinfued, which
guaranties we —re aidc.!(own as an id. ip l ensible  co:i todition, axnd
preliminar-y  to anvj c( i,t-Ion ior treioj' ty t hat i.-lghlt be proposed, opelratin   as the        il'fr o.f the persons ani i lterests of th1e Doinli.,a,.        a lso, to) the benefit of Spanish
righlts aud t.ho3se,   tih, s.i es o!,,ii.' Su h refusal augxments the evils.ua;i.mr' e t_:  iu war, the co  a s eq-uenlces ol whic i,
before God and menl, w ill resti upon is;):t e wiho have ntot had
the virtue nor pa-trioiism to avoid to l el'.
In consequence, and complying with the instructions which
have been annunciated by Her -1_ I.tjesty's government, it becomes my duty to protest, as I dto now solenmlnly, against the
unjustifiable conduct of the goverlnment of the Revolution,
and to declare as I do declare 
1st. Thati while Spain  abandons that part of this Island
which constituted the ancient Domin.ca ln Republic, re-incorporated as it was, spontaneously into the Monarchy in Mlarch,
1861, she reserves all tihe rights whicht belong to her by virtue
of said re-incorporation, and will niake themil of avail in an opportune manner, and'by whatever imelaas she uay esteem  convenient and. within her reach:
2d. That until the government of tier Mlajesty'shatl otherwise  determine, the war between  Spain and San Domingo
shall continue, and




28
3d. That, besides the means which I have thought necessary
to dictate to carry out what is embraced in the preceding
article, all the parts and coasts of the territory of San Domingo shall continue in a state of blockade, conformably to the
dispositions made by the orders of 5th of October and 7th of
November, 1863, which, after this date will be extended to all
the ports and costs of the aforesaid San Domingo territory
that were not comprised in the second order referred to.
SAN DOMINGO, 5th of July, 1865.
JOSE DE LA GANDARA.
LONDON, Dec. 11th, 1869.
DEAR SIR: From the prospectus and papers which I send,
you will see that it (the Hartmont loan) was actually brought
out, but the public has not taken it up, and although the Stock
Exchange here has been compelled by its own laws to recognize the amount privately subscribed by Lawson & Co., and
three or four of their friends, they have such a mistrust of the
whole thing, and knew so perfectly well that the greater part
of the subscriptions are fictitious, and that the loan is a gigantic swindle that the ptt and ccal (rule of the stock of Exchange,
according to which each person giving notice of purchase or
sale, must make a deposit as a security for the eventual fulfilment of the contract) which for English consols is 2 per cent.
and for the worst quoted stock is 2 per cent. has been fixed at
5 per cent. for the San Domingo loan. Herzberg went to San
Domingo, proposed a loan to Baez for swindling the Dominican
nation, as well as the English, and the loan was brought out
in London. You will see by the prospectus (which I send you)
the nature of the guarantee offered by Baez. The loan was
issued for the nominal amount of ~157,000, and purports to
bear 6 per cent. interest per annum. According to the "Boletin
official," of San Domingo, of 25th of September last, Hartmont
is to receive ~100,000 commission and 1] per cent. bank commission beside, which latter runs up to ~18,400.
Loan-real amount,      -   -   -    ~420,000
Less as above,     -   -      118,000. 301,600
This calculation is based upon the first amount of loan proposed. The English press, bought up by Lawson & Co., and
the brokers of the loan, and, above all, the " Ties," are favorable to the loan, but not so the public.
You can imagine in what utter discredit the loan is found in
the market by the fact that the friendly telegram, which Messrs.
Spofford, Tileston & Co., of New York have sent to our papers
about the annexatiqn of San Domingo being an accomplished
fact-and the Bay of Samana being sold (leased) to the United
States, have not had the effect of persuading a single person
to purchase bonds.




29
GOD-OUR COUNTRY-AND LIBERTY.
DOMINICAN REPUBLIC.
THE SOVEREIGN NATIONAL CONVENTION OF THE DOMINICAN
REPUBLIC.
Considering that, according to the message of the Generals
who are charged with the exercise of the Executive power, one
of the compromises contracted on the part of the revolution
regenedora was the loan obtained from Senores J. A. Jessurun
& Zoon, merchants in the adjacent isle of Curazoa, which has
been approved in the reply made to said message.
Considering that, upon an examination of the accounts of
the said Senores J. A. Jessurun & Zoon contracted, according
to the terms of an agreement between Citizen Buenaventura
Baez and said Senores on the 24th day of MIarch of this year,
the same have been found just and equitable.
ART. 1. (Therefore) The sum of $37.145.80 capital and interest of the amount loaned by the Senores J. A. Jessurun &
Co., to the revolution re;,ee/oinLe'1, shall be, and is hereby recognized as a part of the national debt of the Republic.
ART. 2. The Executive Power will authorize the emission to
the said Senores J. A. JessurLun & Zoon of obligations for the
payment of said mentioned sui:, according to the terms mentioned in said contract.
ART. 3. The present decree will be sent to the Executive
Power for its pIomulgation and execution.
Done in the imall of Sessions, of the Sovereign National Convention, on the 30th day of April 1868, in the 25th year of In-.dependence, 5th of the Restoration, and 1st of Regeneration.
The President, Jacinto de la Concha, the Secretary, Juan
Ma Herrera.
Let this be executed, and to that end, let it be communicated
and circulated, etc.
The Generals charged with Executive power,
JOSE HUNGRIA.
JOSE RAMON LUCIANO.
SKETCH OF SAN DOMINGO FINANCES.
About the 1st of February 1869, Mr. Fabens, the confidential
agent of President Baez, to effect the annexation of San Domingo to the United States, was sent out by the government
of the United States, at the request of General Banks, chairman of the Committee of Foreign affairs in the House of Representatives, for the purpose of ascertaining what could be
effected in that Republic, and at the same time, to ascertain
the facts with reference to the Public Debt, as well as with regard to concessions of lands, mines, etc., etc., made to individ



80
uals.  Mr. Fabens returned about the -st of April, having remained two days in San Domingo, and bringing back the curious news that the debt of the Dominicaii Bepabilc did not exceed, at the first of the year, $600,000.  This report was confirmed by that of the Miinister of Foreign all tirs for the Republie of San Domingo, which was forwarded to Mitr. Sewa:rd, and
by the last namedl gentleman sent in to the Hlouse of Representatives.  General Babcock, comll ssioned by this Government to San Domingo for the same purpose as was M{r. Fabens,
returned last October, saying  that the debt was only some
$600,000; and that the expenses of the  tlepublic were as follows, according to the estimates that were given him  by the
Treasury Minister, Curiel:
State and Government,               -      -5t55.000
Treasury and Commerce,              -      -     -      50.000
War and Marine,               -      -     -           250.000
Public Justruction and Justice,            -     -      55.000
Total,         -                                    410.000
To prove the falsity of this report and convince the government and Congress of the United States that they are: in danger of being  made  the victims of the fraudulent slche-mes of
Baez, and of a certain number of Amerlicans andl Enlish Who
have combined for the purpose of defrauding tle United States
Treasury, it will be sufficient to publish ceritaien )partLs of the report presented by the Minister of the Treasury, Curiei, to President Baez, on the 29th of March 1869, and  rwhich   appear  in
the Boletie, Iftcica of the 8th of May, No. 63.
Conformably to the data, says ihe, which arie tl  be found in
the General Accounting office, there was in circulation in the
country on the 1st day of February, 1863, paper money to the
amount of $2,628,300 (nominal amountl);), emitted a,s follows':
Under the Goverlament of the Protectorate, decireo of.th,: A:;Ls-Lmb
Constita ente of Oct. 23, 1865. (This at par va.ue.)......    100,000 00
Under the administrationi of Baez; elmision confoilrmtable to d(icree
of Congress, of 22d Marchl, 1866, at pai...................    100,000 00
IDEM —by (ecree of April of saame Syear, a:t par..................    100,000 00
Under the Triunvriate; decree of the Sulb-delegation of 2)0thl of Ji.,
1866, at par......                                           200,000 OQ
Under the administlataion of Cabral;'emissionl of 3iat of' Maa, 186i7,
at $5  currency  for one  in  gold................................  250,000  00
So-called bills of Bank of Auguat,  67...........................    100,000 00
Emission of 30th October, 1867, at the rate of 7- for  1..............  14S,500 00
Emission of 30ttl No)vemabelo 18;7, at ite rate of )0 f,''t. I...........  1,629,800' 00.2,628,300 00
Greater still than  the paper money debt, appears another
debt which, under different names, has'been contracted under
the past system, the details of which are the following:




31
Evide.ucea of debt, called National Loan, at  8 months (drawing 6
per cent interest), which are specified in the documents, Nos. 1,
22, 3, and 4, the balance of which amounted to on the 31st July,.  1868,.  (gold)..............................................   $117,395    90*
Due bills to be paid for clifferent accoiiits, doc. No. 8, the balance of
which   a oun: te   to.............................................  57,082   84-1
Bills drawn by the Geeneral Accounting Department, whose balance
according  to  dloc. No. 9  a.ounts to............................  10,129  35
Due bills expedited bv tle General Accounting office, by virtue of
the Convention of 27th Nov., 1867. t the'ate of 20 for $1. at 8
montihs tim.e (do;,, Nos. 10:'ad 11).......................   29,265 50
Due bills expeditid, at 60 days time. by the saine General Accounlting office, for duns received in metal, documents, Nos. 1, 2 and 3  5,467 75
$218,338 26
To this sum  there is to be added the amount of $85,402 18
(gold), due bills drawn  by the principal administration of the
Treasury at San Domingo City, up to 31st January, 1868.
This debt, simeilar in importance to that of the paper-money
debt, is denominated  Public Debt, to  which was given  the
character of making provision  for  the  expenses of the  war
against Spain by the iestoration, in  which are included, notwithstanding, other credits, whose total circulation amounted,
at the same date, 31st January, 1868 (No. 5 and 6 (gold) to
$315,460 50.
At the beginning  of February, 1868, the  country  was involved  in  an  interior debt of colossal proportions; and this
was the fact, without taking into  account the salaries of employes already become due,  according to the estimates which
were in force, and which ha.d not been liquidated, nor had the
expenses, incurred by the revolution r'e('iw.(A(do.'C, which brought
Baez into power, been  paid.   "With  these  compromises,"
continues  sinister Criel,  "and as I hlave said to you-fearing  that it would become necessary lo provide for expenses
which were necessary to the preservation of order and peace,
it was found necessary to  recur to the  emission of due bills,
that being the only means found  suitable for the aid of the
administration, and which  afforded a better guaranty to commerce.' But the  depreciation  of the due bills has been brought
about principally by the expenses which have been necessary
to  make in  this capit-al for expenses of material, provisions,
&e. &c., for the use of the public service, and for the necessities of war."
"The summliiary  of due bills emitted," say.s the Treasury
M inister, "bv;the different branches of public administration
since the triumpi   of the revolution  i re:eclicrw(iova (Feb., 1868),
up to Arrch, 18, 69, and  which  are known  at the General Accounting Oiffce, isas follows  (See the statement No. 17).




32
General Accounting  office  (gold)...............................29,72887
Administration  at Santiago......................................    68,951  39
"  La  Vega...................................  894  90
-    "   Samana.............                     303 15
" Santiago..............................  355,371 26
" Puerto Plata..4....2...................    42.138 88
(gold)     $399,589 45
"There is due, besides," s-ays the Minister, "two debts, of
$7,000 each to Senores Jessurum  &  Son. which money was
had upon a new loan that the Government was under the necessity of contracting with those gentilemen in AMtarch and December of the past year under the same conditions as the
debt contracted for the expenses of the revolution reyen.edor)a,
and recognized by the assembly constituyente.  The latter
debt (due to the same firm) is for $39,000, but the conditions
upon which it was made no one knows, because they have
never been made public. It is known, positively, that Baez
was the lender, and that Jessurum  & Go. did nothing beyond
lending their name.  "Notwithstanding this amount named,"
continues Curiel, " to the greater part of the civil employes
salaries are due, there being some of these to whom more than
a years' salary is due."
"Two loans." says the Citizen Minister, "are nearly realized.
A third was negotiated in this capital, and was as promptly coneluded, as was the government prompt to receive the money.
A draft was drawn upon London, while the negotiation was
being drawn up, for ~3,000 sterling,'by Edward Hartmont.
The loan, or the emission of bonds in London of the San Domingo loan, it is said, has been effected.  No one has seen the
money, and it is further known: that there was an agreement
between Baez, Hartmont, Lawson.   & Co., to create the impression abroad that the bonds not sold would be so placed as that
they might be distributed among;themselves, in case of the
annexation of San Domingo to the United States, in which
event the American'lovernment would have to give in lieu of
San Domingo bonds United Si-ate-; lbonds.  Tlhe nearest calculation that can be made of the amiount that would htave to
be paid by the United States is tie following: [  Boleti, official organ of the -Republic, sia-x's that the Government will recognize a debt of ~420,000 (the lenders have emitted bonds in
London to the amount of.~757,000, for which ~320,000 are  to
be given, and 6 per cent. upon the sum  received before December, and 1  per cent. commission to the banking house entrusted with the payment of the coupons), and acds, tihat for
the payment of the interest on, and sinking fund of the
~420,000 the Republic will pay annually, during 25 years, the
sum ~658,900.




The capital, ~420,000, at the rate of $4 75 to the ~, according to Arts.
1 and 15 of the contract, produces.............................       $1,995 000
Less commissions ~100,000, at $4 75 to the ~, and according to Hartmont & Co.'s additional contract.............................           475,000
$1,520,000 00
The interest and sinking fund for the gradual payment of the loan,
represented by 25 annual payments of ~58,900 at $4 75 per ~, according to Arts. 2 and 15 of the contract, amounts to...........   $6,994,375 00
The commission of 14 per cent, allowed by Art. 15 of the contract,
upon this sum, amounts to...................................           87,429 68
$7,081,804 68
Resume: Amount to be paid........................................   $7,081,804 68
Amount to be received therefor..............................    1,520,000 00
Difference against the government of..........................   $5,561,804 68
For $1,520,000 received by the Dominican Republic, $7,081,804 68 will have to be paid, or a difference in favor of the
lenders of $5,561,804 68, equal approximatively to about onefifth of what is received.   As a matter of course, these $7,081,844 68 must be paid by the United States, in case the loan
shall or shall not be realized, because this is the way in which
the matter has been arranged.
Minister Curiel continues his report, by saying  that on  the
1st of April, 1868, there was obtained from the government of
Hayti, or of Salnave, a small loan of $20,000.
Debt of Dominican Republic to March, 1869, paper money emitted...  $2,628;00 00
Loans, interest, due bills, evidences of debts, drafts,.................   218,338 26
Due bills drawn by the treasury administration up to 31st January,
1868.............                                                      85,402 18
1868.  ~........................................................       85,402 
Debt, called that of the Restoration, emitted in bonds of $10 each, to
31st January, 1868..........................................          315,460 00
Due bills emitted by the different branches of Administration from
the triumph of the revolution up to March......................        399,589 45
Two obligations in favor of Jessurum & Son, of $7,000 each.........         14,000 00
Other debt to same parties, recognized by the Govern ment..........        39,000 00
San Domingo loan in Lonldon..................................             7,081,804 68
Debt due to Haytian Government...............................             20,000 00
$10,801,894 57
If  to  this  enormous sum   ($10,801,894  57) there  be  added
another debt contracted  with  the  Government of' Hayti
at the  beginning  of  1869, for  $25,000, and  the liability  of
the Government for about an equal sum (of $25,000), which
sum was taken from  two Guano Companies by Baez (one
being French and the other English), for concessions that
were   afterwards   repudiated; and,  if   to  these   there  be
added   an   emission   of   due   bills  up   to   the  present  to
the amount of at least $1,000,000, the result will be that
the United States will have to settle, at least, to the amount
of $12,000,000. It is to be understood, at the same time,
that the government of the Union will only be able to
receive in exchange the fortifications and public buildings,
unless it should happen in the meantime that Baez should
5




34
have been  able  to  negotiate  another loan  upon  these,
when, as a matter of course it would obtain only the sovereignty of the soil. All the resources of the country are already
compromised.  Baez is the owner of Alta Vela, of the salt
mines of Neyba, of the petroleum of Azua, and is interested
in all concessions as well as in all fictitious or other loans.
The Dominican government possesses numerous lands; the law
permits these to be rented, but not to be sold; notwithstanding, these have not only been given in guaranty of payment of
the loan at London, but, likewise, the productts realized from
custom houses, the woods and mines of Samana, as well as the
others belonging to the Republic. But more, a great bank is
now being established, and for that object it is pretended that
another additional loan of 1,000,000 must be contracted.
"El Boletin official," of July 18th, 1869, No. 72, publishes a
decree signed by Baez and the secretaries of Treasury, Commerce, and Foreign Relations. The first article concedes to
the Senores Edward Prime, Jr., and Edward P. Hollister, both
of the city of New York, United States of America, and their
associates full and sufficient authority to establish a bank of
discount, exchange and deposit, with the right of issuing bills
&c., under the name of the National Bank of San Domingo,
or any other name that the parties may prefer. Article 3d
provides that the capital of the National Bank of San Domingo is, and shall be limited to the sum of $1,000,000 which will
be divided into 10,000 shares of $100 each, and these pro rata will
represent all the rights, franchises, and properties of said Bank.
Article 4 provides that the National bank will have the right
to receive money on deposit, to purchase, sell, and discount
bonds, due bills, bills of exchange, shares, mortgages and all
other classes of negotiable paper. Article 5 says: The National
Bank has the right to issue bills upon the obligation to redeem them at sight in the city of San Domingo, in money of
gold or silver coinage, and at the value of such coin in the market. As a guaranty for these emissions, the National bank will
deposit in the General Accounting Office of the Treasury of the
Republic A QUANTITY OF BONDS OR EVIDENCES OF DEBT (which will
be more particularly described hereafter) to be acquired in
full property, and reduced to posssession, and to be bought of
the government, or of individuals.  The quantity to be deposited must represent, at least, the one-half of the total
amount of the emission, and the bank cannot begin its operations before the governmient shall have evidence of the fact
that it has bought, and holds in possession $50,000 of the
aforesaid bonds and evidences of debt. The 6th article says:
"The bonds, or evidences of debt, of which mention is made in
the foregoing paragraph, will be predicated upon mines; and
the Dominican government will emit these at the nominal value




35
of $1,000,000, with interest at 8 per cent., and for the payment of which, as well as the capital, the products o  the
mines and the leases of mines in the BRepublic will be pledged,
and likewise, other free rents which the government may judge
opportune; such  a:, t/  p)roldu,9ts'esl.d,'i.g./'omL the sale of he
public lanlds."
Baez and Secretary Gantier are partners in this National
Bank, neither of whom has advanced.a doola of capital.
By the above-mentioned decree it will be seen tihat, although  Baez has  asked  for the  annexation of territory
to the United States, and, as though he did not feel satisfied
with all the compromises,    debts, e and concessions already
made (without mentioning- that one now pendJidg in the American
Congress) lie goes on }antlt contracts ainothJer debt of'   1,000,000;
sells the lands of the nation which ougliht to pass to the
United  States, and for another tim: e ct prom1oises the mines,
which that rich country holds in its bowels.
The speculations of the National Banmk  rill be limited to
the purchase of 81,000,000 in bonds at 20 for one, without
really paying out tlhe:t efor a dollar; for Baez will give it such
credit as may be asiked, especially a.s he is a parxty in interest;
annd shouldt the annexatl ion scheme be efectetd, the Dominican
bonds will be exhtl nred for United Sta'!es boinds.
It is not therefore stra;I-lge that the S;uiioes Prime, Hollister,
Spofford, Gabb, lalsey,'Young, lFabeni, Cazneau and O'Sullivan
exert themselv.es to effect t1e consumnln tion of the annexation
project, without an inv-estigation on. the part of Congress, for
each one of them has a good share in tais stock-job.
The Treasury Minister, C-riel, said to General Babcock
that the expenses of thle Reipubici  were $410,000, and in the
report, to which we lhave before referred, h.e said: "The general income for said year according to the accounts (which have
come in from all quarters) amount to $430,771 89a, and the expenses to $739,954 75, there in this way resulting a deficit of
$309,956 541.  The expenses of the fo-rmter year, according to
what is within the power of the Generaly. Accounting Office to
show, up to that date, weree 524,583 32. The Minister continues
by saying: "Inasmuch as the accounts of the administration at
Puerto Plata for the last  half year, and also those of Seybo,
from August to Decemiber are unascertlained, it is not possible
to be precise as to the total aamount of moneys expended,
which exceed, by much, the sum of $700,000, without reaching
however, the amount of $800,000; besides, there were various
claims and matters of debt unsettled on the 31st of December
last."
"Likewise," adds the Minister, " a contract has been made
for a line of steamers between New O(rleans, New York, and
San Domingo, with Senor O'Sullivan, to  whom  has been




36
granted the privilege of a reduction of duties by 15 per cent.
upon all articles that may be imported in the steamers of that
line."
"There was also conceded on the 1st February, 1869, to Edward Hartmont the right of conctructing a railroad from Santiago de Los Caballeros to Monte Christi, or to the banks of
the Yuma, which river empties into the Bay of Samana."
The attention of Congress is called to the compromise
which Baez is still engaged in making, and this ought to be
done before resolving to vote the annexation, or to confirm
the lease of the Peninsula of Samana.  The American Congress, before taking into consideration the San Domingo
treaty, should, it is submitted, order and demand that a commission be sent to San Domingo by the Government (accompanied by persons who understand the state of affairs there),
and which should examine into all the money operations referred to, especially the due bills.
If the Dominican debt shall be properly looked into, it will
be found below $800,000.  In truth, all these other debts and
credits against the Treasury are fraudulent.  According to
the accounts in the General accounting office, the proceeds of
the Treasury, coming from  custom-houses, imports, licenses,
stamped paper, etc., amount to (in the two years past of Baez'
administration) at least-.....................................................................   $1,6 00, 0 00 oo
Realized from  the English loan..................................  200,000 00
Salnave's   loan.....................................................  45,000   00
Jessururm   &  Son  (39,000  and  14,000j...............................  53,000  00
English & French Guano Companies, referred to......................  25,000 00
The sum advanced by the United States...........................   150,000 00
$2,173,000 00
THE VOTE UPON ANNEXATION.
Below will be found a translation of the decree of Baez, ordering an election upon the question of annexation. It is taken
from the New York Herald, of Saturday, 12th inst.  What is
remarkable is the fact that the Herald's San Domingo correspondence is dated February the 20th, when the steamer, which
must have brought the latest news from there, left on the 19th,
at 2 o'clock P. A. Besides, the statement of returns having
been received from Seybo, Santiago, LaVega, and Azua on the
20th, is all a fabrication. As for instance: Azua is 110 miles
from San Domingo, is in the interior, and it would require three
days travel on horseback to reach that place with the news
that an election was ordered on the 16th. The same thing is
true as to Seybo. LaYega is off 130 miles, and Santiago is about
160 miles from the Capital.  Baez, in all probability, had sent




37
down to his partizans in advance at all those places information of what his intentions were as to holding this election, but
it will be seen that the whole plan of operations is a mere game
of the President, which will be sooner or later exposed. There
is no railroad nor telegraphic lines on the Island.
The following is a translation of the proclamation submitting the question to the people:
God, Patria and Liberty. Dominican Republic.
BUENAVENTURA BAEZ, General of Division, Grand Citizen and
President of the Domican Republic:
Considering that the partial manifestations in distinct forms
which have been made by the people of the Dominican Republic to unite their destinies to the great Republic of North
America, and form a part of that powerful Union, makes it
necessary now that the Government dictates legal measures to
assure itself that the desired end is the real expression of the
national will. Considering, moreover, that the municipalities and the legitimate representatives of the localities are
called upon to receive the free vote of the citizens when they,
in important crises, determine by means of the plebiscites the
momentous questions which concern the future of the nation,
and having listened to the opinion of the council of the Secretaries of State, with the assistaince of the honorable consulting Senators, I decree:
ART. 1. From the time of the publication of this decree will
remain open the committees in all the provinces, communes
and military posts of the Republic, to the end that the inhabitants concur in giving their votes expressive of their wish concerning uniting themselves to the grand Republic of the.
UInited States of America, and forming a part of their territory
and political unity.
ART. 2. The Ayuntamientos and Alcades representing the
municipal power, and the corresponding civil authority of the
localities, will open, in each one of them, a register destined
to inscribe the names of the voters, who will, as many as can
do so, sign their names with the expression of their vote.
ART. 3. At the termination of the vote, when the number of
voters in the respective localities have been taken, the same
Ayuntamientos-and when these are wanting, the Alcadeswill certify in the most solemn manner that the names written
by another hand are of individuals voting who spontaneously
presented themselves to manlfest their opinion, and that they
were identified, after ratifying their suffrage, as ignorant of
the art of writing.
ART. 4. The original acts, results of each election, legally
headed in the customery style, will be forwarded without delay to the respective civil Governors of the provinces and
districts, who will send the sheets which contain the returns




38
to the Chief of State through the Citizen Minister of the Interior andPolice.
ART. 5. The sheets to which the former article alludes must
be sealed with the seal of the respective governments and Ayuntamientos (heads of provinces), with the object that not the
slightest suspicion should be raised as to their authenticity.
ART. 6. The present decree shall be printed, published and
circulated by the Citizen Minister of the Interior and Police.
Given in' Santo Domingo on the 16th day of the month of
February, 1870, the twenty-sixth year of the Independence,
the seventh of the Restoration, and the third of the Regeneration.                     BUENAVENTURA BAEZ.
FELIX M. DELMONTE, Minister of Justice and Public Instruction.
M. M. GAUTIER, Minister of Interior, Police, &c.
RICARDO CURIEL, Minister of the Treasury and Commerce.
JOSE HUNGRIA, Minister of War and Marine.
Everything here remains in the most peaceful condition.
The British navy has suddenly manifested a lively interest
in Dominican affairs. The Royal Alfred (frigate) dropped in
here, and then proceeded to Port au Prince, doubtless to encourage Message Saget to carry out his threat to ravage the
Dominican frontier with fire and sword, if this people persist
in the wish for annexation. That is past fighting against
now; and as all that splendid coffee region is now thrown open
to American settlers, it may mean a declaration of war on the
United States.