Mr. Powell to Mr. Hay.
Port au Prince, Haiti, September 1, 1899.
Sir: I respectfully inform the Department of the course of events that have occurred since my last dispatch was written.
Information reached me to-day from the capital stating that President Figueroa, finding it impossible to relieve the financial distress, has resigned the office of President. A provisional Government has been establishment at Santiago, this place, and in fact the whole district is affected, not so much against the Government as it is against the financial condition which the Government is powerless to relieve. The army, finding the Government could only pay them in paper, which the people will not accept, refused to fight, laid down their arms.
It is reported of Mr. Jimenez that he is in a position to relieve the financial situation, having had placed to his credit $1,000,000 gold. He has also promised many reforms, which many think he will be unable to carry out; if he fails, another insurrection is imminent.
A battle was fought at Monte Christo August 25; the Government forces were led by General Cordillas, the minister of war. At first he was successful, but was finally compelled to retreat to Puerta Plata, since which time his army has largely deserted him.
Mr. Jimenez is expected to land to-morow at Puerta Plata; on the 30th he was with his family at Santiago, having come from Cienfuegos, his suite numbering ten persons.
It is the belief among all classes, both native and foreign, that there is but one solution to the present situation; that is, our Government shall assume a protectorate over these people, or annex them as an integral part of the United States. If the people themselves could decide they would choose the latter, and become an integral part of the United States. This country is hopelessly bankrupt, its foreign debt amounts to nearly $25,000,000, its interior debt no one knows. The revenue for the past few years have been inadequate to meet the expenses of the Government. Loans have been made, wherever loans could be made, at high rates of interest.
As the Department is well aware the Government is largely indebted to American claimants. The Ozama River Bridge claim amounts to nearly $50,000, principal and interest, one payment of which is long overdue. Then we have the Drake and Stratton claim, amounting to $538,000. These are some of the heaviest claimants, not mentioning [Page 248] those who have been compelled to loan President Heureaux money, who will request of the Department that this money be returned to them.
The Dominican minister to this Republic, Dr. A. Henas, requested, when the news was confirmed of the resignation of President Figueroa, the release of the Dominicans now in prison at Port au Prince, confined at his request on instruction from his Government.
There is, I am informed, an English naval vessel in the harbor of Santo Domingo, also a French vessel.
I suggest to the Department before any recognition be given to the new Government that it be stipulated that it recognize the claims due the late government to American claimants, and that they be paid at an early day; if this is not done, they will endeavor to evade payment of these claims.
The Department I trust will not think I am treading on forbidden grounds in calling its attention to this matter.
I have, etc.,