Note XXXIII-53 — Chapter XXXIII · COMMERCE AND FINANCE. 1801-1887.

Pres. Soto, in his message of 1883, says that the opinion prevailed in Europe that Honduras had been victimized; he believed that in truth and justice the republic cannot be held responsible for the enormous debt. Indeed, it is of a very questionable origin. It was contracted for the alleged purpose of constructing an interoceanic railway. There were four loans negotiated; namely, two in London, in 1867, for the nominal amount of £1,000,000, issued at 80 with 10 per cent interest; another in 1868 at Paris for the nominal sum of 62,252,700 francs, issued at 75 and 6 per cent interest, and the last in London in 1870, for £2,500,000, issued at 80 and 10 per cent interest. Am. Cyclop., viii. 791; Pan. Star and Herald, March 23, 1883; La Estrella de Pan., Jan. 10, 1884.