OLUMBIA UNIVERSITY SCHOOL OF COLU Law offers a three-year course of study in pri vate and public law leading to the degree of LL.B. Graduates of colleges and scientific schools in good standing are admitted without examination. All persons other than such graduates must be eligible for admission to the Sophomore Class of the College, or present the academic diploma of the Regents of the State of New York, or a certificate acceptable to the Regents in lieu thereof. Beginning with the academic year 1903-1904 no person will be admitted to the School except graduates of colleges and scientific schools in good standing, or persons presenting satisfactory evidence of equivalent training. For circulars containing full information address the Secretary, Columbia University, New York City. COLUMBIA LAW REVIEW. VOL. I. APRIL, 1901. No. 4. THE EFFECT OF WAR ON PUBLIC DEBTS AND ON TREATIES-THE CASE OF THE SPANISH INDEMNITY. ΟΝ N April 30, 1898, the Spanish Government issued a decree by which it was, among other things, de clared: "The war existing between Spain and the United States terminates the treaty of peace and friendship of the 27th October, 1795; the protocol of the 12th January, 1877, and all other agreements, compacts and conventions that have been in force up to the present between the two countries." When, several weeks after its issuance, a copy of this decree, as published in the London Gazette, was received by the Department of State, it seems to have been assumed that the clause above quoted was to be understood in a very general sense, and was not intended to be taken literally, since there existed in the treaties between the two countries, not only stipulations which were permanent in their nature, but also stipulations which expressly referred to a state of war and could become operative only upon the happening of that event. Not long afterwards, however, a rumor got abroad to the effect that the Spanish Government was contemplating the issuance of a decree of expulsion against citizens of the United States who might be within the Spanish dominions. By Article XIII of the treaty of October 27, 1795, it was agreed that, if a war should break out between the two nations, one year after the declaration of war should be allowed to the merchants in the cities and towns where they should live for collecting and transporting their goods and merchandise. In view of the rumor referred to, the Department of State caused the attention of the Spanish Government to be drawn to this stipulation through the British Ambassador at Madrid. The Spanish Government replied that it considered all treaties between the two countries to be at an end, but offered to enter into a special convention for the provisional application during the war of the stipulation in question. The United States declined to accept this proposal on the ground that the stipulation, instead of being abrogated by the state of war, must be considered as finding therein its full force and effect. Here the correspondence closed. No decree of expulsion was issued; and, the claim of the Spanish Government to treat all stipulations between the two countries as at an end having been expressly avowed, it seems to have been thought useless to engage in further correspondence upon the subject at that time. In the treaty of peace between the United States and Spain, signed at Paris December 10, 1898, there is no stipulation on the subject now under consideration. By Article VII the contracting parties "mutually relinquish all claims for indemnity," but this relinquishment is expressly restricted to claims "that may have arisen since the beginning of the late insurrection in Cuba and prior to the exchange of ratifications." During the negotiation of the treaty, however, the American commissioners proposed an article by which all the treaties in existence between the two countries at the outbreak of the war were enumerated and declared to continue in force. This article was taken up for consideration at the conference held on the 8th of December. The President of the Spanish commission stated that the Spanish commissioners were unable to accept the article, but added: "Some of the treaties to which it referred were obsolete or related to conditions which no longer existed, and it would involve a more extended examination than the Joint Commission was in a position to give. But this did not imply that the two governments might not take up the subject themselves." 1 Among the treaties in force between the United States and Spain at the outbreak of the war, there was a convention signed at Madrid, February 17, 1834, under which an indemnity was provided for certain claims of citizens of the United States against the Spanish Government. The claims in question grew chiefly out of the seizure and confiscation of American vessels and cargoes for alleged violations of decrees issued by Spanish commanders during the war between Spain and her American colonies. British subjects had similar claims, for the enforcement of which their Government resorted to reprisals; and satisfaction was made by Spain in 1828, by the payment of 600,000 pounds sterling, in inscriptions redeemable within a fixed time. The United States forbore to press the claims of its citizens, except by negotiation, and they were not adjusted till February 17, 1834. By Article I of the convention signed at Madrid on that day, Spain agreed to pay the United States, in settlement of the claims, "the sum of twelve millions of rials vellon, in one or several inscriptions, as preferred by the Government of the United States, of perpetual rents, on the Great Book of the Consolidated Debt of Spain, bearing an interest of five per cent. per annum." The inscriptions were to be issued in conformity with a model annexed to the convention, and they, or the proceeds thereof, were to be distributed by the Government of the United States among the claimants entitled thereto, in such manner as it might deem just and equitable. The interest on the inscriptions was to be paid in Paris every six months. The form of the inscription, as annexed to the treaty, is as follows: Cupon No. 10. Esta Inscripcion se expide á consecuencia de un con- de entre S. M. Catolica la Reyna de España y los Estados Unidos de America, para el pago de las reclamaciones de los ciudodanos de dichos Estados. 1 Ex. Doc. B, 55 Cong., 2 Sess., Part 2, p. 254. pesos fuertes, ó sea de El portador de la presente tiene derecho á una renta anual de y de francos, de Consiguiente al mismo real decreto se destina cada aña de Secretario de Estado y del Despacho de Hacienda. This inscription, using for the purpose the English text of the treaty wherever applicable, may be translated as follows: Perpetual Rent of Spain payable in Paris at the rate of 5 per cent. per annum, inscribed in the great book of the consolidated Debt. This inscription is issued in pursuance of a convention concluded at Madrid on the between Her of Catholic Majesty, the Queen of Spain, and the United States of America, for the payment of the claims of the citizens of said States. The bearer of this is entitled to an annual interest of hard pesos, or annually, on the day of francs, payable in Paris semi and of , by the bankers of Spain in that capital, at the rate of 5 francs and 40 centimes for the hard peso, in accordance with the Royal decree of December 15, 1825. Pursuant to the same royal decree there is set aside each year for the amortization of this rent one per cent. of its nominal value, at compound interest, which amount shall be employed in such periodical amortization at the current rate by said bankers.-Madrid, of of The Secretary of State for the Treasury. |