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-13-<br />

<strong>The</strong>'vicious circle started with the Liberian Government's need<br />

for money. This need had led to the founding of the republic,<br />

since foreign traders had refused to pay duties imposed by a<br />

Colonial Council - before 1847. However, after that year they<br />

continued to evade taxes and for various reasons they encouraged<br />

and helped the tribal population of the region claimed by the<br />

Liberian Government to rebel against the settler Government.<br />

<strong>The</strong> reaction of the Government was eventually the enactment of<br />

the Ports of Entry Law which was meant to facilitate the<br />

collecting of duties from foreign traders. This law, however,<br />

deprived the tribal people along the coast from a considerable<br />

portion of their (traditional) trade with European traders -<br />

and dissatisfaction with this law contributed to aji increased<br />

armed resistance against the Government. <strong>The</strong> Government found<br />

itself obliged to spend considerable sums of money to suppress<br />

these tribal revolts. <strong>The</strong>se expenditures, combined with the<br />

payment of indemnities to foreign traders and governments,<br />

weakened the position of the Liberian Treasury. To solve these<br />

financial problems the Government resorted to borrowing abroad<br />

but improper management of these funds and embezzlement of these<br />

and other funds prevented any improvement of the situation.<br />

<strong>The</strong> introduction of new taxes (to repay the loans as well as to<br />

run the Government) met with increased tribal resistance<br />

resulting in a new wave of armed conflicts between the tribal<br />

population and the settler Government. <strong>The</strong> introduction of the<br />

Hut Tax in 1910 set off a series of uprisings of tribal people<br />

in the following decade., and even in the 193O's the (last)<br />

tribal revolt was due to the resentment against this additional<br />

burden.<br />

During the last quarter of the nineteenth century colonial<br />

imperialism (Great-Britain, France, Germany, Spain) necessitated<br />

even more expenditures by the Liberian Government. Being forced<br />

to create a "Frontier Force" (1908) the Treasury could not<br />

regularly pay the expenditures involved. Against this background<br />

it is hardly surprising that the foreign loans (1871, 1906, 1912,<br />

1917, 1926) were never used for productive purposes. <strong>The</strong><br />

conditions on which these loans were obtained only aggravated an<br />

already precarious financial situation.<br />

Both the threats from within (the tribal people who not until the<br />

Administration of President Arthur Barclay, 1904 - 1912, were<br />

granted citizenship - though only in name and not resulting in<br />

their participation in the political and administrative affairs<br />

of the country) and from outside (the imperialistic European<br />

Powers) inspired the Liberian Government on more than one<br />

occasion to ask for American protection. Twice it asked the<br />

Government of the U.S.A. to establish a Protectorate over Liberia<br />

(1893; 1908). Certainly influenced by the "<strong>Open</strong> <strong>Door</strong> Policy" of<br />

the U.S. tandem McKinley - Hay (President McKinley and his<br />

Secretary of State Hay) the leading Liberian politicians of the<br />

beginning of the present century pleaded for a (political) <strong>Open</strong><br />

<strong>Door</strong> Policy which would guarantee the country's political

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