The American government, in its unwillingness to interfere in the
internal affairs of the Dominican Republic, had suffered the Victoria
administration to seize the government in Santo Domingo after the
death of Caceres, and it now also condoned the violation of the fiscal
convention. The American commission which went to Santo Domingo in
1912 to reconcile the warring factions, found that an essential
condition of the restoration of peace and the rehabilitation of the
government was the payment of pending salaries and certain other
debts. Accordingly the United States consented to an increase of the
Dominican public debt by $1,500,000, and the Dominican government
contracted a loan to that amount with the National City Bank of New
York, which took the bonds at 97-1/2 Per cent. The bonds bore 6 per
cent interest, and for the service of interest and sinking fund, it
was agreed that the general receiver of customs pay over to the Bank,
beginning in January, 1913, a monthly sum of $30,000. This bond issue
was finally liquidated in 1917. The amount so borrowed was not
sufficient to pay all the indebtedness of the Dominican government.
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