Present Capital, Managua. Population (about) 25,000. ... External Debt per head (including arrears of interest) 12s. 4d. HISTORY OF THE DEBT (FOREIGN). 1827.-The proportion of the Debt of the Central American Federation (£163,000) taken over by Nicaragua in 1827 was twotwelfths, or £27,200. No payment was made on account of this Debt until 1874. 1874.-An Arrangement was made, against the advice of the Council, by which the Bondholders received Post Bills bearing 5 per cent. interest, and redeemable in two, three, and four years, at the rate of £14 for each Old Central American Bond. 1886. Six per Cent. Loan for £285,000, issued at 92 per cent. by the City Bank. Redeemable at par in 1919. Specially secured by a first mortgage on the Nicaragua Railways and on the Customs Duties. 1894. Interest fell into default on the 1st July. 1895. The Government and the Council of Foreign Bondholders effected a Settlement of the Debt, of which the following were the chief provisions (1.) Interest on the Principal of £285,000 to be paid from the 1st January, 1896, at the rate of 4 per cent. per annum. (2.) The Coupons in arrear from 1st July, 1894, to Ist January, 1896, inclusive, amounting to £34,200, to be deposited with the Council, and Certificates to be issued against them for 50 per cent. of their nominal value. 1 (3.) An accumulative Sinking Fund of 1 per cent. on the Principal of £285,000, to be applied one half to the redemption of the said Principal, and one half to the redemption of the Certificates by purchases or tenders when the price is below par, and by drawings when the price is at or above par. When all the Certificates are redeemed the whole I per cent. to be applied to the amortisation of the Principal. (4.) A special Tax of at least $1 gold on each quintal of Coffee exported to be assigned as security for the service of the Debt, and to be continued until all the Bonds and Certificates are redeemed. Warrants representing the whole of the said export duty to be issued by the Government and handed to the Agent of the Bondholders in Nicaragua; the duty only being payable in such Warrants. After the Agent has collected a sufficient sum to cover the whole of the Debt service for the year, the Warrants remaining in his hands to be returned to the Government. If the sale of Warrants should not, from any cause, provide sufficient funds, the Government to make good the deficiency. (5.) The Government to have the right to dispose of the railways hypothecated to the Bondholders on surrendering to the Council of Foreign Bondholders for cancellation £200,000 nominal in Bonds of the existing Debt, in which case the Bondholders release all further lien on the said railways. REPORT. The Service of the External Debt of Nicaragua has been regularly effected during the past year. AMORTISATION OF THE DEBT. The amount of Bonds purchased by the London City and Midland Bank for redemption has been as shown below: ARREAR COUPONS CERTIFICATES. As regards the fourteenth Amortisation of Certificates, corresponding to the half-year ending 31st of December, 1902, Tenders ranging from £5. 17s. to £5. 19s. were received and accepted in full to the amount of £606. 6s. 6d. The balance of £297. 6s. 4d. on the amount available was applied by the drawing for payment at par of 49 Certificates at £6 and 2 at £1. IOS. For the fifteenth Amortisation, corresponding to the half-year ending 30th June, 1903, Tenders ranging from £5. 16s. to £5. 19s. were received and accepted in full to the amount of £41. 6s. The balance of £886. 10s. 4d. on the amount available was applied by the drawing for payment at par of 147 Certificates at £6. The following statement shows the results of the Amortisations of these Certificates which have taken place to date : SALE OF COFFEE WARRANTS. According to the statements furnished to the Council, the sales of Coffee Warrants have been as follows: Owing to the depreciation which has occurred in the currency of the country, it has recently become evident that the sale of the Coffee Warrants would-if this depreciation continued-barely cover the Service of the Debt, more especially if the coffee crop proved to be a poor one. The Council, therefore, thought it their duty to point out this fact to the Government of Nicaragua, and to remind them that under the contract of 1895 the Coffee Export Tax was fixed at $1 gold. In reply, the Government stated that such a tax would weigh too heavily on the coffee industry in its present critical condition, but at the same time they gave the most positive assurances that the service of the Debt would be punctually paid. THE PRESIDENT'S MESSAGE. The Council have been unable to obtain a copy of President Zelaya's Message relating to the events of the year 1901. A brief epitome of a Message delivered by him in December last, on the reassembling of Congress, is given below on page 265. REPORT OF THE FINANCE MINISTER. On the 20th December, 1902, the Finance Minister presented his Report to Congress. It is unfortunate, however, * In the Reports of the Finance Minister for 1899, 1900 and 1901, the duties on the Exportation of Coffee are given at $201,360.00, $369,480.38 and $240,708.59 respectively. |