Page "History of Honduras" Paragraph 54

During Borgrán's brief time in office, he had agreed to a United States proposal to invite a United States financial adviser to Honduras.

Arthur N. Young of the Department of State was selected for this task and began work in Honduras in August 1920, continuing to August 1921.

While there, Young compiled extensive data and made numerous recommendations, even persuading the Hondurans to hire a New York police lieutenant to reorganize their police forces.

Young's investigations clearly demonstrated the desperate need for major financial reforms in Honduras, whose always precarious budgetary situation was considerably worsened by the renewal of revolutionary activities.

In 1919, for example, the military had spent more than double the amount budgeted for them, accounting for over 57 percent of all federal expenditures.

Young's recommendations for reducing the military budget, however, found little favor with the new López Gutiérrez administration, and the government's financial condition remained a major problem.

If anything, continued uprisings against the government and the threat of a renewed Central America conflict made the situation even worse.

From 1919 to 1924, the Honduran government expended US $ 7. 2 million beyond the amount covered by the regular budgets for military operations.