n the Santo Domingo Republic itself of
arriving at an adjustment with its creditors, conditioned only on
the administration of the custom houses by the United States.

In the meantime, an arrangement was made by American banking houses
to furnish the money to liquidate the debt; the creditors were
satisfied; the foreign debt was liquidated on a basis of fifty per
cent of the face value, and domestic debts and other claims less
than ten per cent. A loan of twenty million dollars was made
through Kuhn, Loeb & Company, of which the Dominican Republic
received nineteen million dollars for the payment of its debts;
seventeen million dollars was used to satisfy thirty-one million,
eight thousand dollars worth of bonded debts, and the remaining
two million, two thousand dollars were to go for internal
improvements.

There was some objection to the ratification of the treaty negotiated
by Secretary Root, but not of a very serious character, and the
treaty went through, even Senator Morgan not opposing it. I had
the honor of reporting it and having charge of it in the Senate.

The treaty has now been in force several years, and it has proved
even more advantageous than was expected when it was ratified. It
has restored order in the Republic, and the country's debts are
rapidly being liquidated. The time may come when the United States
may be compelled to take similar action with some of the other
republics south of us. Such action would be beneficial both to
the United States and to the people of those republics.

CHAPTER XXVII
DIPLOMATIC AGREEMENTS BY PROTOCOL.

During the public discussion of the Santo Domingo question and the
protocol by which the Santo Domingo Improvement Company claim was
sent to arbitration, and later during the consideration of it,
there was criticism of the Executive branch of the Government on
account of its disposition to make international agreements of
various kinds, and put them into operation without submitting them
to the Senate. The practice became more general under President
McKinley and Secretary Hay than it had under other Administrations,
and it seemed the policy to get along in every case, if possible,
without Senatorial action. It was a subject in which I took very
great interest; I came to the conclusion that the practice had
become too general, and I took occasion to tell Secretary Hay my
views.

I found that the State Department, under different Administrations,
had s