Mr. Squiers to Mr. Hay.

No. 689.]

Sir: In continuation on my dispatch No. 669 of September 19, I have the honor to report the return of the President to Habana on the 7th instant.

[Page 375]

His trip, generally speaking, has been successful. He has come into close contact with the people, whom he received with great cordiality and tact, and whose desires and necessities have received his closeest attention. He has given out promises with respect to his policy regarding the payment of the army, to many the most important—in fact the only political question * * * He has assured the people that the army will be paid, and that the Government is making every effort to secure the funds for that purpose. He promises payment even though it may become necessary to issue bonds directly to the claimants or to issue paper money for the purpose of liquidating this so-called “debt of honor.” He does not fix any limit as to time of payment, but the temper of the army is such that this matter can not drift on indefinitely. * * *

Mr. Palma’s reception in the various towns and villages through which he passed was generally friendly, and the crowds of people who met him were sometimes very enthusiastic. * * *

I have, etc.,

H. G. Squiers.