GRIM DEBT COLLECTOR.

Dominion, Volume 6, Issue 1750, 15 May 1913, Page 5

GRIM DEBT COLLECTOR.

A CRUISER'S MISSION. Dy Telegraph—Press Association— Conyrinlit i Kingston, May 13. Tho cruiser Aeolus, 3600 tons, has sailed to enforce British claims against Guatemala. . Tha latter lias appealed to the united States. It is understood Mr. 13ryan, the United States Secretary of State, will not support any American country repudiating its just debts.

[The history of the External Debt of Guatemala dates from 1825, when a small 6 per cent loan was issued in London. That loan was in default three years .later, and remained■ so until 1855. Tho 'first of several conversion schemes was carried through in 185G and then tho borrowing process set in again, with other defaults. In 1888 tho next settlement- was carried through, but in 1881 the service of debt was again suspended. Subsequent arrangements ended iust as unsatisfactorily, and in 1901 a Special Commissioner was <li>pntcliecl to Kuvopfi. but tho Guatemalan Government refused to ratifv the" proposed agreement with thebondholders.' Then, in 1911, three proposals, of New York origin, were made, which were bound-up with the issue of a new loan of .£20,000,000, proposed to be applied to the conversion of tho External ,-111(1 Internal Debts, provision being made for llie intervention of the United States ill case of default. Guatemala, however, rejected thcni.l