File No. 1199/268–269.
Minister McCreery
to the Secretary of State.
American Legation,
Santo
Domingo, September 19,
1907.
No. 43.]Sir: I have the honor to confirm my telegram of
the 12th instant, as follows:
Congress met 10th and organized period. Yesterday President’s
message was read, enabling act submittted and referred to
committee on finance.
I also confirm my telegram of the 16th instant, as follows:
Congress to-day passed act authorizing executive power to issue
and sell bonds as required by the convention.
I inclose copy and translation of an act passed by the Dominican Congress
on the 16th instant, approved by the President on the 17th instant and
published in the Official Gazette on the 18th instant, authorizing the
executive power to issue and sell, through the secretary of finance and
commerce, in such form and denominations as it may deem for the best
interest of the Republic, bonds to the amount of $20,000,000 gold,
secured by the Dominican-American convention of February 8, 1907, and by
the import and export duties collected in the Republic, and in
accordance with the provisions thereof, and payable in fifty years,
bearing interest at the rate of 5 per cent per annum, payable
semiannually, and redeemable after ten years at 102½ per
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cent and requiring payment of at least 1
per cent per annum for amortization, under such regulations as the
secretary of finance and commerce may prescribe.
The act exempts the bonds and interest from all taxes and duties now or
hereafter established by the Republic, and provides that the bonds shall
conform to the provisions of the convention, shall contain such
provisions as the secretary of finance and commerce may prescribe, and
that each bond shall bear a certificate executed by said secretary or
the fiscal agent, authenticating such bond as a bond issued under the
provisions of the convention.
The act also provides that the bonds or the proceeds thereof shall be
applied by the executive power to the objects mentioned in the
convention; and provides for the appointment by the executive power of a
depositary, an agent, and registrar of transfers, and a fiscal agent to
act in connection with the issue and sale of the bonds, and the receipt
and distribution of the proceeds thereof, and in connection with the
adjustment and settlement of debts, claims, and concessions, and in
connection with the service of the loan, in accordance with the
provisions of the convention; and provides that the executive power
shall fix the compensation for these services within certain mentioned
limitations.
In my telegram of June 22, 1907, relative to the loan contracts as
changed and amended by the Dominican Congress, I mentioned that the
minister for foreign affairs had said on that date that, should the
amended contracts not be accepted by the bankers, the Congress would be
convened whenever necessary to pass upon any changes made by the bankers
in the amended contracts.
I have, etc.,
[Inclosure.—Translation.]
Act of Dominican Congress Authorizing
Executive to Issue and Sell $20,000,000 Bonds.
[From Gaceta Oficial, September 18, 1907.]
Legislative Branch.
The national congress, in the name of the Republic, on the initiative
of the executive, the matter being declared urgent;
By virtue of the powers conferred upon it by article 23 of the
constitution; in order to comply with the provisions of the
convention concluded between the Republic and the United States of
America on February 8, 1907, and approved by this high body on May 3
of the same year; and in order to provide for the execution, issue,
and sale of the bonds to which said convention refers; in view of
the decree in which the loan for which the bonds are to be issued
and sold is declared to be of public utility; resolves:
- Article 1. To authorize the
executive, through the secretary of finance and commerce, in
the form and denominations and under the conditions which he
deems most suitable to the interests of the Republic, with
the security of the above-mentioned convention, and secured
by the export and import duties collected in the Republic in
accordance with the stipulations thereof, to emit and sell
bonds of the Republic to an amount not to exceed 20,000,000
gold dollars of the United States of America at the present
standard of weight and purity, bearing interest at 5 per
cent per annum, payable semiannually in said gold coin,
extinguishable by sinking fund in fifty years and redeemable
after the lapse of ten years, at 102½ per cent of their face
value, a payment of at least 1 per cent per year being
required for their extinction, in accordance with the
regulations to be issued by the said secretary of finance
and commerce.
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- (Additional) paragraph 1. Both the bonds and the
interest which they bear shall be exempt from all
taxes or duties, existing or to be established in
future by the Republic.
- (Additional) paragraph 2. The bonds which are
issued must be in accordance with the stipulations
of the convention dated February 8, 1907, approved
by this high body on May 3 of the same year. They
must embody the provisions adopted by the secretary
of finance and commerce, and a certificate must be
attached to each in the form and with the provisions
prescribed by said secretary of finance and
commerce, the certificate to be signed by him or the
fiscal agent. The certificate shall state that the
bonds are issued by virtue of the provisions of the
aforementioned convention.
- Art. 2. These bonds or the
proceeds therefrom shall be applied by the executive to the
purposes indicated in the convention.
- Art. 3. The executive is also
authorized to appoint a depositary, an agent, and a recorder
of transfers, as well as a fiscal agent, who shall be
engaged in connection with the issue and sale of the bonds,
with the receipt and distribution of the proceeds of said
sale, with the adjustment and settlement of debts, claims,
and concessions, and with the payment of interest, etc., on
the loan, in accordance with the provisions of the
aforementioned convention.
- (Additional) paragraph. One single company, bank, or
association of private bankers may act as depositary, agent,
and recorder of transfers, and fiscal agent, or these duties
may be intrusted to different agents, according as the
executive shall deem best, it being the duty of the said
executive to determine the powers and duties belonging to
each of them, and to pay or agree to pay such remuneration
as he deems most proper for their services, though the pay
of the depositary shall not exceed one-half per cent of the
total sum paid to the holders of bonds of the Republic, of
claims, and of concessions, who have accepted the adjustment
proposed, or the adjustment which may be reserved for the
payment of debts, claims, and concessions of those holders
who may not have accepted the adjustment proposed, besides
the expenses incurred by the depositary in acting as such;
nor more than $250 per year to the agent and recorder of
transfers, and also not more than $0.50 to the fiscal agent
for each certificate of authenticity which he issues for
each bond, nor more than $10,000 per year for the incidental
expenses incurred by the said fiscal agent in the operations
connected with the payment of interest, etc., on the loan
(“service” of the loan).
The executive is also authorized to pay from the proceeds of said
bonds the sum necessary to cover the expenses of preparation, issue,
and sale thereof.
This resolution abrogates every other law, decree, or resolution
which is contrary to it.
Let it be sent to the executive for the purposes of the
constitution.
Given in the Palace of the National Congress, September 16, 1907
(sixty-fourth of independence and forty-fifth of
restoration).
- Ramon O. Lovaton,
President. - A. Acevedo,
- C. A. Nouel,
Secretaries.
