CHAPTER II

CONDITIONS WHICH CONFRONT US

To treat of Cuba as an American country is the purpose of this volume.

If the people of the Island, regardless of nationality, will only

postpone the question of the particular form of government for the

present, and give all their attention to the new economic questions

which confront them, the future will be full of promise. Cuba is no

longer a European colony, but an American country, under the protection

of the United States. So long as the Island is occupied and governed by

the military forces of the United States, law and order will be

maintained and equal rights will be granted to all the people. From an

industrial point of view Cuba will have practically obtained what she

has been fighting for for nearly a generation: namely, industrial and

commercial freedom. The United States will administer the laws for the

Cubans in the interest of Cuba. The United States asks nothing in return

but the same opportunity for trade and commerce as is accorded to the

other countries of the world. The Republic will levy no tribute, nor

will it exact a dollar of taxation over and above the revenue necessary

for protecting life and property, and the cost of inaugurating such

works for the improvement of sanitation, or the carrying on of

industries, as may become necessary.

Many Cubans, and a very large number of Spaniards, who appeared before

the author when in Cuba, for the purpose of giving testimony on

industrial and commercial matters, took it for granted that the United

States would, in making up the new fiscal laws for the Island, exact

discriminating duties in favour of the United States and against

European countries. When told nothing of the sort was contemplated, the

Cubans were surprised and the Spaniards incredulous. Indeed, the latter

were astounded, and seemed to wonder what the United States was in Cuba

for. Even American citizens interested in pushing their Cuban trade have

expressed surprise at the absolute freedom which has been allowed all

fiscal legislation, and the scrupulous care exercised by our Government

not to exact any right itself which is not accorded to other nations. In

such matters we are of course bound by our international treaties, and

so long as Cuba remains under the protection of the Republic, and not

part of it, she must be treated, so far as customs regulations and

navigation laws are concerned, as a free country. In the preliminary

work of economic reconstruction these sound principles have been kept in

mind and adhered to. In fact, the fullest and broadest plan was chosen

by the Administration to secure information in Cuba; and the refrain of

the instructions, both from President McKinley and his able and

broad-minded Secretary of the Treasury, was, to spare neither time nor

money to secure the views of all the people of Cuba; for whatever the

United States Government finds necessary to do in the Island must be

done, as far as possible, by the people of Cuba, for Cubans, and in the

interests of Cuba. By this it must not be inferred that those of Spanish

birth were to be excluded, but, on the contrary, that the views of all

who proposed to remain in Cuba and help by their labour and thrift to

build up the industry and commerce of the Island should be sought and

considered.

In following out the spirit of these statesmanlike instructions, the

author invited, through the newspapers, all persons interested in the

industry, trade, foreign commerce, and currency and banking system of

Cuba to express their views on these and kindred topics. Many responded,

and as may be imagined the information gathered took a wide range, and

will, it is hoped, be of practical value in adjusting the questions with

which the Government of the United States will have to deal during the

military occupation of the Island. In the prosecution of this work,

public hearings were given in Havana, Cienfuegos, and Santiago; and to

committees of persons representing interests at Trinidad, Caibarien,

Sagua la Grande, and other parts of the Island an opportunity was given

to express their views as to the industrial necessities of their

respective communities. In New York and Washington opportunity was given

to those interested in Cuban commerce and such American citizens as

represent large sugar estates, iron mines, and tobacco and fruit

interests in the Island of Cuba, to present a full and free expression

of their views on all topics included in the scope of the investigation.

A large amount of information was thus obtained, and no inconsiderable

assistance rendered by these gentlemen. With hardly an exception, such

assistance has been rendered freely and disinterestedly, and the author

takes this occasion to thank a large number of business men who have

been found ready and willing to drop their business at any moment and

devote much valuable time in an endeavour to elucidate the somewhat

complicated conditions which surround the commerce and industry of Cuba.

In Cuba every possible consideration was shown to the writer and no

pains nor trouble were spared on the part of the Spanish officials and

business men to give all required information and to aid in the inquiry

undertaken. In this work neither political prejudice nor nationality

took any part. The Spanish bankers and merchants, whose influence a few

weeks previously had been arrayed against the United States, came

forward and placed such information as they had at the disposal of the

United States Government. The Cubans engaged in business, and the

military commanders in the field, from Generals Gomez and Rodriguez

down, have alike assured me of their sympathy in the work thus

instituted by the United States, and proffered their services in its

prosecution. The following expression from the veteran warrior, General

Gomez, dated Boffill Plantation, October 3, 1898, will be read in this

connection with interest:

"I must congratulate you cordially for the high mission which you

have had entrusted to you. I am completely identified in all and

with all concerning it; I reserve for a better opportunity giving

you my personal views on the matter.... On my side I am working in

the same sense; I am doing all I can for the immediate

reconstruction of the country; its wounds will heal with the rapid

promotion of the work. This is the battle we are now fighting, and

all men of good will should join us in our struggle. I avail myself

of this opportunity to tender my services."

The business men and merchants of Havana and other large cities,

regardless of nationality, have rendered services of incalculable value

to this inquiry, on the ground that the one thing that Cuba wants more

than all else is, as General Gomez truly says, that its people should

lay down their arms and take up the implements of peace. The Presidents

of the Chambers of Commerce of Havana, Cienfuegos, and Santiago have all

taken an interest in this work and elaborate reports were prepared by

committees appointed especially to aid in gauging the industrial

necessities of the Island. A similar report has been prepared for

Matanzas.

Whatever may be the shortcomings of this volume on _Industrial Cuba_,

they must not be attributed either to lack of interest on the part of

the people of Cuba, or to any failure on their part to give information,

especially on all matters relating to foreign commerce. There is, of

course, a dearth of statistical information, in consequence of which it

has been difficult to work out certain fiscal statements and estimates

with the degree of exactitude easily attainable on the same lines at

home. The information which has been obtained, however, would seem to

leave no room for doubt as to the wisest course for the United States

Government to pursue in adjusting Cuban customs duties, in establishing

a sound currency, in protecting the savings of the people, in preventing

usury, in abolishing onerous and iniquitous taxation, in establishing

free schools, in starting new and reviving the old industries of Cuba,

in increasing commerce, in improving the sanitary condition of the

cities, in distributing labour, and in the general industrial and moral

upbuilding of the people.

The present volume touches on all these topics, and endeavours to give

the reader a clear and practical idea of the present industrial

condition of Cuba. The present chapter aims to present in a concise form

a few of the more important problems which the United States Government

was called upon to face January 1, 1899, and with which it may have to

grapple during the first years of the new century. No attempt is made to

forecast the manner of their settlement. It is not, as a rule, wise to

worry about how we are to cross a bridge until we get to it. Many Cuban

economic problems which at a distance seem to be complicated, will

simplify as we come within close range. Once the United States military

authorities are in possession, ways and means will suggest themselves to

overcome obstacles which now seem almost insurmountable. The most urgent

needs of the Island, when it was turned over to our Government, were

those briefly discussed in this review of the economic conditions of

Cuba.

First among these needs of the Island was a tariff that should bear

lightest in directions where the people could least afford the burden of

taxation, and heaviest on commodities which the well-to-do and those

engaged in large enterprises required. The Spanish tariff was made by

Spaniards, for Spain, in the interests of the Spanish. That seems to be

the actuating principle of it. On any other theory it was inexplicable.

In adopting, July, 1898, for an exigency measure, the rates of duty

which Spain levied for her own commodities, the United States acted

wisely. These rates, however, were full of inequalities, and were not

levied on any sound principle, but on the "heads, Spain wins; tails,

Cuba loses" idea which prevailed in the whole fiscal fabric. It was

found that the only way to remedy these inequalities, equalise the rates

of duties, improve the administration, and reduce the rates of duties on

all articles of general consumption, was to frame a practically new

tariff. This was done, and the new tariff now in force will undoubtedly

do its share in the industrial reconstruction of Cuba. In this tariff it

was not thought advisable to make radical changes in the administrative

branches, nor to change weights and measures into United States

equivalents, because the people of Cuba are accustomed to the metric

system. As a rule, all duties in Cuba are levied by the kilo and hundred

kilos. United States currency, however, was substituted for the Spanish

_pesos_. This will simplify collection of taxes, as customs duties were

collected by Spain in three different classes of currency: gold, silver,

and bank notes, all (for the gold coins used in Cuba have fictitious

values) fluctuating in value.

The tariff adopted by the United States, when the military forces took

charge of the custom-houses, reduced all duties about sixty per cent. on

the old Spanish rate, and averages fully two-thirds less than the rates

exacted by Spain in Cuban ports during the last five months of its

occupancy of the Island. The reasons for these reductions, together with

the reasons which led up to the decision of the President to admit

cattle and agricultural implements free into Cuban ports in possession

of the United States, are fully given in another chapter. Still another

chapter will be devoted to an analysis and discussion of the Cuban

Budget, in which the effect of the new tariff on the revenue of the

country, together with the other sources of revenue, are explained and

discussed. It will naturally be asked: With such a large reduction of

duties, how does the United States expect to secure revenue for the

purpose of administering the government of the Island? There are several

answers to this question, and the facts bearing on the subject are given

in full in the chapter on the Cuban Budget. The general answer is that

by reason of fraudulent classification and smuggling, much of the

revenue collected from the people of Cuba never found its way into the

treasury of that Island, nor of Spain. The cupidity and rapacity of the

Spanish officials in Cuba are beyond conception, and, if one may judge

by the reports of the United States customs officials at Santiago, as

much revenue will be received from a tariff whose duties are from a half

to two thirds less than the Spanish tariff as was received under the

iniquitous and exasperating law which has been abolished by the advent

of the American forces. As the officials recommending the measure

believed, the reduction to a reasonable rate of duty in certain

schedules--such, for example, as those relating to machinery and railway

supplies--would increase importation, and certainly the revenue would be

greater than during the period of prohibitory duties. A railway company

naturally hesitated to import a locomotive when the duty was equivalent

to the value of the engine. With a revised tariff of twenty-five per

cent. ad valorem, it may import two, or four, or even six. In adjusting

such schedules, the revenue features alone need be considered, because

Cuba has no locomotive works, or any iron or steel industry. The same is

true of a variety of other articles.

In all cases where there are home industries in Cuba capable of

supplying a manufactured product made by home labour, care was exercised

by those who framed this tariff (either by making free the raw material,

or by not making a too radical reduction of duty) not to injure their

prospects. In so doing, the Administration is only carrying out the

policy which has been fruitful in developing the industries of the

United States and in securing diversified employment for its labour. If

honestly enforced, the new tariff established in Cuba by the United

States will yield sufficient revenue, enable Cuba to buy in the cheapest

markets of the world, and not compel her to purchase from Spain inferior

commodities at a high price. In every section it is a Cuban measure, and

in no single case can there be found a section that discriminates in

favour of the United States as against any other market. The United

States purposes to take its chances for the Cuban trade with the rest of

the world. If Cuba can purchase cheaper and better articles on more

favourable terms of the United States than of Europe, we shall secure

the trade. If not, the Cuban consumer is free to purchase in the markets

of the world. In this one act alone, conservative, thoughtful Cubans

must realise that they have attained to the commercial freedom which

some, not without reason, contend was the real object of the two

insurrections. However that may be, Cuba has secured a right which

England would never concede to Ireland, namely, a separate revenue

system. In granting this economic freedom to her other colonies, England

has strengthened their ties to the mother country. With industrial

freedom assured, a colonial country may be indifferent to the form of

its political government.

Next in importance to the fiscal laws for the revenue of the Island

comes the currency question. No country can be permanently prosperous

unless its currency is sound and its credit good. Bad financial

management of state affairs begets bad credit, and impaired credit is

the forerunner of depreciated currency. Although Cuba is afflicted with

many kinds of depreciated currency, the established basis is strictly

gold, and in any commercial engagement the value is understood to be in

Spanish gold, unless there is a specification to the contrary. Indeed,

there is something almost pathetic in the manner in which Cuba, though

plundered and depleted of her resources and wealth, has never wavered

from the gold standard. The business interests of the Island are, as the

author found, unanimously in favour of a continued gold basis; for the

Cubans have suffered so much from Spain's various attempts to force upon

the people a depreciated currency, both in the form of silver and bank

bills, that they want no further experiments with the currency. The

Spanish silver money current in the Island is taken at the daily value

only, which is fixed, partly by the larger or smaller demand for wages

and necessities of the Government to pay troops, but principally by the

continually fluctuating value of the Spanish money in the European

markets. As this Spanish silver is legal tender in Spain for its face

value, it is able to maintain a fictitious value for purposes of

shipment to that country. This silver dollar, therefore, fluctuates in

value with the fitful changes in Spain's credit, and it is probable,

should the United States establish American currency as sole legal

tender for the Island of Cuba, that all the Spanish silver dollars will

be shipped to Spain. There was in Cuba during the last months of Spanish

control a margin of thirty per cent. on the silver dollars. It is not

probable that these dollars will go down to a point where it will not

pay to ship the Spanish silver to Spain and utilise the American dollar

in Cuba. In this event the United States Government will, of course,

ship its own silver dollars to Cuba; which, with the subsidiary coins,

will be required for small payments. At Santiago the immediate

disappearance of Spanish dollars and minor coins has made small

transactions extremely difficult. Some think that the present stock of

Spanish silver in the Island exceeds the necessities; but however this

may be in the western part of the Island, it was evidently not the case

in Santiago.

[Illustration: BATEY OF SANTA CATALINA.]

Besides the silver, there is a bank-note circulation, but that has no

actual bearing on the question of currency, as the trade and business of

the Island has refused to accept it, and the present quoted value is

less than ten cents on the dollar. The greater part of this emission,

which was a war issue made by the Spanish Government at Madrid through

the _Banco Espanol de la Isla de Cuba_ (not _by_ that bank), is largely

in the hands of speculators and government contractors. The only public

application is for the payment in the custom-house of the so-called ten

per cent. ad valorem duty assessed on the official value of imported

merchandise in addition to the regular specific rate of duty exacted.

The abolition of this duty, under the new tariff, ends the life of

these bank bills. There still remains a question as to whether the

Spanish Bank of Cuba was in any way responsible for these bills, and the

question will come up for future adjustment. The Bank will probably deny

responsibility and refer those who hold this depreciated currency to the

Spanish Government at Madrid. It is an interesting fact in this

connection that the credit of the Spanish Bank of Cuba is of a higher

standard than the credit of the Spanish Government, for the Bank has

never failed to redeem its own paper during nearly half a century of its

existence, first as the Bank of Spain of Havana and subsequently under

its present name. It has at times suffered embarrassment, but ultimately

the bills of the Spanish Bank of the Island of Cuba have always been

redeemed.

The gold coins current in Cuba are the Spanish and French coins, the

bulk of which consists of Spanish twenty-five-_peseta_ pieces, so-called

Alfonsinos, which for many years have been inflated by royal decree to

$5.30, and the French twenty-franc piece, so-called Napoleons, which

have also been given a legal value of $4.24 and decreed since the end of

1893 as legal money.[1] When the necessity for adopting and inflating

another gold coin besides the Spanish Alfonsino was under discussion,

the suggestion was made that the United States gold eagle would make an

excellent coin for this purpose, as it would figure out almost exactly

eleven dollars Spanish gold.[2] The idea was not entertained, because of

the general distrust of Americans, and the fear lest the relations

between the United States and Cuba should become too intimately

interwoven.

STATEMENT SHOWING VALUE OF UNITED STATES GOLD IN COMPARISON WITH

SPANISH AND FRENCH GOLD ON THE BASIS OF PAR VALUE

Spanish Alfonsino $5.

French Napoleon 4.

Spanish Alfonsino, value in Havana $5.

Value in United States mint ($4.80 less shipping

expenses, .024) 4.776

------

$0.224.

Exchange 4-11/16%

French Napoleon, value in Havana $4.

Value in United States mint ($3.84 less shipping

expenses, .0192) 3.8208

-------

$0.1792

Exchange 4-11/16%

Value of $5, less 1/2% shipping expenses $4.975. At 4-11/16%

Quotations: £ Stlg., Spain, $39.40 currency in Havana, 10% £ in U. S.

4.84

STATEMENT SHOWING ACTUAL VALUE OF $1. SPANISH SILVER

100,000 dollars Spanish silver can be bought to-day here with $66,000

Spanish gold, equal to $60,000 U. S. currency.

100,000 silver dollars shipped to Spain after deducting 1% shipping

expenses would produce $99,000.

99,000 dollars Spanish silver on Spain will buy at rate of £1, which is

$7.88, £12,563. £12,563 would produce in the U. S. at $4.84, $60,804.92.

Cost $60,000

Proceeds 60,804.92

----------

$ 804.92, from which deduct

commission, revenue

stamp, interest,

and profit.

While the principal banking concerns are unanimous as to the gold

standard, there is a difference of opinion in relation to the

advisability of squeezing the inflation out of these gold coins. Some of

the Cuban bankers and financiers contend that the United States

Government should add another gold coin to the currency, namely, the

American eagle; and, by maintaining the fictitious value given to the

other two gold coins, leave it equivalent to eleven dollars in Cuba.

This, it is claimed, will be a very easy way of leaving matters _in

statu quo_, as it were, until such time as permanent government and laws

shall be provided for the Island. They fear that to make the United

States currency legal tender would work an injury to the creditor class,

whose contracts would then be payable in gold worth six per cent. less

than the gold specified in such contracts. There are others, whose

opinions are equally worthy of consideration, who recommend as the only

logical remedy for this situation the substitution of the American

currency as sole legal tender. Such action on the part of the United

States Government it is believed would not seriously interfere with

present contracts, which are invariably expressed as payable in Spanish

gold, and which might be arranged for accordingly.

The premium on Spanish gold was never agreed to by the business people.

Having thus arbitrarily put a premium on Spanish gold, the same

authorities later put a premium on French gold, and to make the matter

more complicated, the United States Government is now requested, by some

of the Cuban financiers, to introduce another gold coin, which,

practically, will be worth ten per cent. more in Cuba than in the United

States; that is, a man owing $1,100 gold in Cuba may pay that debt with

$1,000 gold in United States currency. As a temporary measure, and in

view of the fact that this inflation so far as Spanish coin goes has

been in force for over half a century, this may be justifiable. The

process, however, is entirely artificial, and to continue it would

certainly result in many complications. Some Cuban financiers think it

inadvisable to introduce American money at this time, while certain

planters are fearful lest their labourers should refuse to take one

American silver dollar instead of two Spanish silver dollars. The latter

looks larger in amount, it must be granted; but if the purchasing power

of the American dollar, by reason of the sound credit of the United

States, is double that of the depreciated dollar, with only Spain's

guaranty between it and its intrinsic value of fifty cents, there will

be no difficulty in the end. A country which is just now going through

an operation involving its very existence will hardly be seriously

affected by taking this fictitious value out of the gold coin and

establishing once and for all a sound currency that will be good for a

hundred cents on the dollar--no more, no less--the world over.

Cuba has no banks in the national sense. There are some excellent

private banks, and since its establishment, nearly half a century ago,

the Spanish Bank of Cuba has cut an important figure in the finance of

the Island.

In another chapter, a brief history of banking in the Island from the

earliest period to the present time will be given. For the present, the

banking facilities are adequate to the business, because it would be

extremely hazardous to loan money in Cuba on any kind of collateral or

property. Upon the revival of business, however, the agricultural

interests will require facilities for obtaining money in advance of the

crops at reasonable rates of interest, and protection from the

abominable usury which heretofore has blighted the strongest industries

of the Island and added materially to the burdens of the Cuban planters.

There are so many forms of obnoxious taxes in Cuba that even a brief

description of them would occupy considerable space and convert this

volume into a treatise on the evils of Spanish taxation. Foremost among

the taxes which the United States will abolish is the "consumption tax,"

on the killing of cattle, which is an exaction that greatly increases

the price of food to the people. This tax, like many others, was simply

farmed out to private firms or corporations, whose emissaries in its

collection became a constant menace to thrift and industry in their

respective districts. Another tax, which will fall of its own weight,

now that the United States forces control the Island, is the "cedula,"

or head tax, which varied in amount from a few cents to one hundred

dollars, according to the rank and importance of the individual.

Curiously enough, this tax, when not collected, became under Spanish

rule a greater source of injustice and annoyance than when collected. It

was generally allowed to run until some occasion came for the unhappy

victim of Spanish rapacity to require a public document, a permit to

bury a child or relative, a licence to marry, a transfer of real estate,

or a notarial acknowledgment. Then it was that the petty rascals in

charge of public business came down heavily, and unless the fines and

back "cedula" and a handsome "gratification" to the official was

forthcoming, the body must await interment, the marriage must be

postponed, or the transaction be delayed.

The United States Government will not continue taxes that yield nothing

in revenue and were simply the means by which unprincipled officials

whose cupidity seemed to know no bounds were enabled to plunder and

distress the weak and the unfortunate. The "consumption tax," the

"cedula," and the revenue from "lotteries," must necessarily disappear

with the advent of United States administration of affairs.

Until the tax laws of Cuba can be thoroughly revised, the revenue from

customs, from the various forms of internal revenue (and there are

many), and from the receipts from taxes upon municipal real estate will,

if the strictest economy prevail, suffice for immediate wants, without

resorting to measures of taxation which are alike debasing and

tyrannical. It is impossible to make specific suggestions at this time

in relation to a subject so hopelessly complicated. After the

administration of affairs of the Island has been longer in the hands of

United States officials, these matters may be carefully studied and

adjusted on a basis of equality and justice to all concerned. The true

inwardness of Spanish taxation, as developed in the Island of Cuba, can

be studied and remedied only after time has elapsed and all the facts

are in possession of those who have assumed the responsibility of

control.

The question of education is one that will receive early attention, and

in which the President of the United States has personally evinced

considerable interest. Free public schools exist, but the teachers have

the right to take pay scholars, and naturally those who do not pay get

little or no attention. In the cities from which data are available it

was found that only a small portion of the school population attend

school. There were 888 schools for boys and girls in 1893 and the amount

paid for their support was $775,646. It is impossible even to

approximate the situation at the present moment. In a general way, it

may be described as simply deplorable. A free public-school system must

be immediately established, for much of the misfortune and suffering

Cuba has undergone may be traceable to the neglect of education. The

number of people who are illiterate is very great. Some statistics show

only one in forty of the labouring classes able to read and write. There

can be no stable government in Cuba until this has been remedied.

The reader familiar with Cuban history will remember that the first

movement toward the emancipation of the slaves was the practical freeing

of all children born subsequent to 1868, the year the revolution started

which ended in the abolition of slavery. In the same way, the first act

looking toward political emancipation should be the establishment of a

free public-school system, which shall have for its aim the preparation

of the young Cubans for self-government, whether exercised as part of a

Cuban republic or part of the greater republic the basis of which is

industrial freedom and the common school.

[Illustration: SKETCH MAP OF THE PROVINCE OF SANTA CLARA.]

Manufacturing in Cuba is limited to a few industries in Havana, to the

manufacture of sugar and tobacco, and to machine-shops and small

foundries scattered over the Island for the convenience of the railway

companies, sugar-centrals, and harbours. The author visited all the

manufacturing plants in Havana, some of which were located in quarters

of the city reeking of filth and teeming with disease germs. There is

little hope for industrial enterprise in the broader sense until the

sanitary conditions have been improved in all the industrial centres of

the Island. The fear of that deadly enemy to all enterprise and thrift,

yellow fever, which lurks in the vicinity of the most flourishing

industries of Havana, makes it dangerous for those unacclimatised to

enter these occupations. The initiatory success of manufacturing in Cuba

must depend upon the importation of skilled labour from the United

States or Europe. With this invisible and deadly foe in the background,

ready to strike when least expected, and against which, as a Confederate

officer now in the United States Army at Havana said, "You cannot even

raise an old-fashioned rebel yell," the outlook is far from attractive.

Not only the commercial prosperity of Cuba, but to a considerable extent

that of the southern portion of the United States depends upon the

possibility of destroying the foci of yellow fever which exist in the

larger cities and towns--especially in Havana and Matanzas--and which

have been the cause of the epidemics of this disease which have occurred

in the United States during the present century. It is believed that to

destroy these germs is possible, and from a mere industrial and

commercial point of view it would be a paying investment to spend

several millions of dollars, if necessary, to effect it. Until this has

been accomplished, and the centres of industrial activity of Cuba made

safe for the influx of skilled artisans, whose advent alone will make it

possible for Cuba to diversify its industries and elevate the condition

of its labour, it will be vain to hope for the establishment of new

manufactures. The importance of sanitation is so great and the subject

of so much general interest to all those looking towards Cuba with the

idea of residence or investment there, that considerable space in this

volume will hereafter be devoted to a consideration of the subject.

The railway system of Cuba, consisting of seven companies, the aggregate

length of whose lines is only 1,467 kilometres, or 917 miles, is

entirely inadequate in bringing the extreme ends of the Island together;

Santiago and Havana in point of time being as far apart as San Francisco

and New York, though only separated by a distance of a few hundred

miles. The facts gathered on this subject and the maps presented

elsewhere point to the advisability of immediately constructing a trunk

railway from end to end of the Island, with branches extending north and

south to the important cities and ports. From whatever standpoint it may

be viewed, no one enterprise could do so much to improve the situation

on the Island. No revolution could have existed in Cuba if such a

railroad had been completed by the former Government, and nothing will

so rapidly tend to the revival of commercial and general business as the

facility for quick passage from one end of the Island to the other, and

from the trunk line over branches to the seaboard cities. All political

turbulence will be quieted thereby and prevented in the future. The

entire country will be open to commerce; lands now of practically no

value, and unproductive, will be worked; the seaport towns will become

active and commerce between the Island and the United States will soon

be restored to the former figures of approximately one hundred millions

of dollars per annum. Business enterprise, ever alert to conditions such

as herein described, has already surveyed the route, and there are

several projects on foot looking toward prompt action in this direction.

After a careful study of the situation, it would seem extremely doubtful

if such an enterprise could be made a commercial success for many years

to come, without material assistance from those responsible for the

industrial future of Cuba.

The questions arising in relation to navigation between Cuba and the

United States are delicate, and involve, as does the question of

discriminating duties in favour of the United States, in a greater or

less degree our international relations with other countries. Those

interested in American shipping suggest discrimination in favour of

American vessels between Cuba and the United States, and some go so far

as to indicate that a joint arrangement of the American and Cuban flags

would be a solution of the problem. Much of this is mere speculation. We

cannot discriminate in favour of American vessels in the trade between

Cuba and foreign countries, just as we cannot do so in the case of

American vessels in trade between New York and foreign countries, on

account of our commercial treaties. The chapter on this subject has been

submitted to Mr. Eugene T. Chamberlain, Chief of the Bureau of

Navigation of the Treasury Department, and this experienced and

efficient official has thrown considerable light on the subject which,

it is believed, will be of value to the commercial interests of both

Cuba and the United States.

These are some of the most important economic questions with which the

United States will be called upon to deal during its military occupancy

of Cuba. That we are capable of dealing with them intelligently and

satisfactorily can hardly be doubted. Questions of far greater magnitude

are continually presenting themselves at home, and as a rule the people

of the United States have been found equal to the task of adjustment. To

doubt our capacity as a nation to bring about complete pacification of

the Island, industrially and politically, is to throw a doubt on our

most cherished institutions and to cast a shadow on the Republic

itself.

Industrial Cuba Being a Study of Present Commercial and Industrial Conditions, with Suggestions as to the Opportunities Presented in the Island for American Capital, Enterprise, and Labour · 第 2 / 29 章