CHAPTER XV

COMMERCE

Exports and imports.--Foreign trade.--Trade with the United States.--

Ports of entry.--Wharf concessions.--Domestic trade.--Business

houses.--Banks.--Manufactures.

The fact that Dominican commerce has more than trebled in twelve years

demonstrates the epoch-making character of the fiscal convention with

the United States. The trade figures since 1905 are as follows:

GROWTH OF DOMINICAN TRADE

(All figures are in American currency)

Imports Exports Total

1905 $ 2,736,828 $ 6,896,098 $ 9,632,926

1906 4,065,437 6,536,378 10,601,915

1907 4,948,961 7,628,356 12,577,317

1908 4,767,775 9,396,487 14,164,262

1909 4,425,913 8,113,690 12,539,603

1910 6,257,691 10,849,623 17,107,314

1911 6,949,662 10,995,546 17,945,208

1913 8,217,898 12,385,248 20,603,146

1913 9,272,278 10,469,947 19,742,225

1914 6,729,007 10,588,787 17,317,794

1915 9,118,514 15,209,061 24,327,575

1916 11,664,430 21,527,873 33,192,303

The increase in 1916 over 1915 was almost as much as the entire trade

of the country in 1905. The temporary setback of 1909 was caused by

the partial failure of the cacao crop and the paralyzation of

commerce in anticipation of lower tariff rates. That of 1914 was due

to the European war and a domestic revolution. Santo Domingo has,

however, repeatedly presented the anomalous spectacle of showing

enormous trade figures in the midst of warfare, as for example, in

1912. The advance in commerce has been especially marked since the

presence of the American troops assured peaceful conditions.

Not a year has passed since 1904 without a large balance of trade in

favor of Santo Domingo. While the greater part of this is represented

by huge sugar profits which have gone to foreign investors, a

considerable portion remained in the country. The great increase in

wealth since 1904 is apparent to anyone who knew the country at

that time.

The imports cover the wide range to be expected in a nonmanufacturing,

agricultural country in the tropics. The principal imports in

1916 were:

Cotton goods $1,721,534

Iron and steel manufactures, including sugar machinery 1,562,367

Rice 1,080,068

Wheat flour 621,900

Provisions, meat and dairy products 530,195

Oils 545,284

Bagging and other manufactures of vegetable fiber 508,644

Vehicles and boats 408,832

Manufactures of leather 385,518

Wood and manufactures of wood 317,421

Codfish and other preserved fish and fish products 309,204

Chemicals, drugs and dyes 293,072

Soap, and ingredients for the manufacture of soap 233,991

Paper and manufactures of paper 171,706

Beer 168,901

Agricultural implements 121,830

The United States furnished practically all the flour and other

breadstuffs, oils, lumber, agricultural implements and leather

articles and most of the cotton goods, hardware, machinery, fish, meat

and dairy products. Before the European war all the rice was bought in

Germany, as well as a considerable portion of the fish, beer, meat and

dairy products. At present the rice is brought from the United States

and England. The other imports from England are almost entirely cotton

goods and bagging, with some iron and steel manufactures.

In the chapter on the flora of the country, statistics are given with

reference to the exports of the country, which are, as there pointed

out, principally: sugar, cacao, tobacco, coffee, bananas, beeswax and

honey, hides, cotton, hardwoods and dyewoods.

Owing to its geographical position the United States naturally has the

greater part of Dominican trade, but since the European war set the

commerce of the world awry that proportion has grown until in 1916 the

imports from the United States, including Porto Rico, were 90.4 per

cent of the total and the exports to the United States and Porto Rico

were 82.8 per cent of the total, though the latter figure varies

somewhat from final destination, as much of the sugar and cacao is

shipped subject to order. Before the European war something more than

one-half of the trade of Santo Domingo was with the United States,

one-fifth with Germany, and the remainder with France, England and

other countries. The countries of origin of imports and destination of

exports of the Dominican Republic in the year 1916, as compared with

the list for 1913, the last preceding normal year, are here shown:

DOMINICAN TRADE BY COUNTRIES

IMPORTS

1913 1916

Value Percentage Value Percentage

of whole of whole

Cuba $ 7,352 .08 $ 136,587 1.17

France 274,318 2.96 152,358 1.30

Germany 1,677,833 18.10 ---- ----

Italy 173,105 1.87 63,450 .54

Porto Rico 62,900 .67 378,219 3.24

Spain 210,781 2.27 151,451 1.30

United Kingdom 730,191 7.88 481,305 4.13

United States 5,769,061 62.22 10,162,698 87.13

Other Countries 366,737 3.95 138,362 1.19

Total $ 9,272,278 100.00 $11,664,430 100.00

EXPORTS

Cuba $ 27,536 .26 $ 19,447 .09

France 887,907 8.48 287,799 1.34

Germany 2,068,384 19.76 ---- ----

Italy 20,430 .19 2,496 .01

Porto Rico 28,994 .28 425,483 1.98

United Kingdom 241,810 2.31 105,107 .49

United States 5,600,768 53.49 17,412,088 80.88

Other Countries 1,594,118 15.23 3,275,543 15.21

Total $10,469,947 100.00 $21,527,873 100.00

Very interesting statistics with reference to all these matters are

published annually in the report of the general receiver of Dominican

customs. Since the establishment of the receivership full and accurate

trade statistics have become available for the first time in the

history of the Republic. Before 1891 no statistics at all were kept.

During the nineties there was an attempt at compilation, but the

corruption in the custom-houses was so notorious that the figures

cannot be regarded as reliable. For the disturbed years immediately

following the death of Heureaux the data are incomplete and uncertain.

The question of shipping has been a serious problem confronting

Dominican commerce since the beginning of the European war. Freight

rates are rising to almost prohibitive figures, which have their

effect in an enormous increase in the cost of living, Santo Domingo

has as much reason as the rest of the world to desire an early

cessation of the world calamity.

After the war the old trade rivalry will be revived, but American

commerce with the Republic should easily retain its lead, if properly

cultivated. The observations so frequently made with reference to the

extension of American trade with South America also hold good in the

case of Santo Domingo. American merchants should send as

representatives cultured men who speak Spanish; they should provide

catalogs in good Spanish with accurate descriptions of the articles

offered; they should fill orders as received, without substituting

other articles; they should pack their shipments very carefully and

with a view to local transportation conditions. The success of the

Germans in building up their Dominican trade was due in large measure

to the polish and fluent Spanish of their representatives, to their

thorough study of local conditions, and to their favorable terms

of payment.

American commerce with Santo Domingo would be further stimulated and

strengthened by a tariff reciprocity agreement similar to the customs

convention between the United States and Cuba. The mutual advantages

of such an agreement would be enormous and the development of Santo

Domingo would be effectively promoted. Closer relations would also be

fostered by a postal convention applying the domestic rates of postage

to all mail between the two countries, a good beginning having been

made by a recent arrangement applying the domestic postage rate to

letters between the United States and the Dominican Republic.

The Dominican Republic has twelve ports of entry, but nine-tenths of

the foreign commerce goes through the ports of Macoris, Santo Domingo,

Sanchez and Puerto Plata. The first two supply the import and export

requirements of the southern portion of the Republic, the other two

those of the Cibao. The other eight custom-houses exist for local

convenience and for the prevention of smuggling. This is especially

true of the three along the Haitian frontier. In former years there

was considerable smuggling across the border, as the import duties on

certain articles in Haiti are much lower than in the Dominican

Republic. Although the profitable smuggling business demoralized trade

in those regions, the government did not interfere with it owing to

the difficulty of policing the wild and sparsely populated border

district. The American general receiver determined that the back door

should be guarded as well as the front entrance, and formed a frontier

guard which stopped contraband traffic, though at a heavy cost, for

two brave American officials have been killed and three wounded by

smugglers and outlaws, while fourteen Dominican guardsmen and

inspectors have been killed and twenty-three wounded. The expense of

the three frontier custom-houses is greater than the revenue they

produce, but entries in Azua, Monte Cristi and Puerto Plata increased

significantly after the frontier guard began its patrolling.

Incidentally the guard has helped to keep the boundary line in place.

In the seaports most of the loading and unloading is done by lighters,

the wharves generally being small affairs. Only in Puerto Plata (where

extensive harbor improvements are now under way), Macoris and Santo

Domingo can larger vessels approach the wharves. All the wharves were

built under concessions from the government, which, in the

impossibility to provide them itself on account of its perpetual lack

of funds, was obliged to procure their construction by granting the

right to collect a specified wharf tax, more or less onerous, for a

period of years. The Santo Domingo City wharf concession provided that

everything exported from and imported into this city or any other

coast point in the province must pay the tax, whether the wharf was

used or not. The Samana wharf concession; as amended, gave the right

to collect certain high wharf taxes for fifty years, from 1875 to

1925, in return for the building of a diminutive dock. One of the

important objects accomplished through the 1907 bond issue was the

redemption by the government of the monopolistic wharf concessions.

A peculiar feature of the country's domestic trade is that almost

fifty per cent of it is in the hands of Syrians. These people are

found in a number of the West India Islands, but nowhere have they

gained such a foothold as in Santo Domingo. They appeared in the

nineties, and for a number of years confined their activities to

peddling goods about the country, both men and women traveling around

with great bundles of merchandise which they spread out wherever they

met prospective purchasers. Their next step was to establish retail

stores and crowd the native Dominican storekeeper out, and of late

years they have opened large business houses. They are not regarded

as a desirable element, as they do not amalgamate or mingle with the

Dominican population, but seem possessed of the single idea to make a

fortune and return with it to their country.

Such part of the retail trade as is not controlled by Syrians, is

mostly in the hands of Dominicans. The stores are generally small,

with a limited stock of goods; they have no show-windows, but are

arranged on the style of bazars. Fixed prices are rare and most sales

become negotiations with the polite shopkeeper. In the country it is

customary for the storekeeper to make advances of merchandise to the

smaller farmers until crop time; they then pay him in cacao, coffee,

tobacco or other farm products, which he remits to the seaport to the

wholesale merchant with whom he deals.

The larger business houses are in a majority of cases owned by

foreigners, principally of Italian, German, Spanish, American and

Cuban citizenship, and now also including numerous Syrian firms. A

majority of those classed as Americans are natives of Porto Rico. A

number of these merchants arrived in Santo Domingo as poor men and by

hard work and shrewd investment built up respectable firms. They

carefully preserved their foreign nationality as a valuable asset

which protected them from undue interference on the part of the

government. One of the most prominent and successful merchants of

Santo Domingo was the late J.B. Vicini, an Italian who came to the

country penniless, but with his energy and sagacity amassed the

largest fortune of the island. His business is now managed by

his sons.

The larger merchants combine a banking business with their export and

import business. The foremost of these private bankers of late years

was Santiago Michelena, a Porto Rican. Less than ten years ago there

was not a single bank in the Republic, but there are now three well

equipped banking institutions, all of them with their local

headquarters in the capital. One of these is the International Banking

Corporation, which is connected with the National City Bank of New

York; it entered the Dominican Republic in April, 1917, by taking over

Michelena's banking business. It has a branch in Macoris and Puerto

Plata and agencies and correspondents throughout the country. Another

bank is the Royal Bank of Canada, which does a flourishing business in

a number of the West India Islands; it has branches in five cities of

the Dominican Republic. The third bank is the Banco Nacional de Santo

Domingo, incorporated by Americans under the Dominican banking law of

1909, with a capital of $500,000. Although it has several branches,

its business is not so active as that of the other banks, since it has

lent most of its capital to the government. Under the banking law this

institution has the right to issue bank notes, but it has not

attempted to use the privilege.

Slowly the establishment of small factories has proceeded, for the

partial provision of local needs. The principal cities have ice

plants, of which some are subject to annoying interruptions. In the

Cibao there are several sawmills. Further there are, in the larger

cities, small establishments for the manufacture of cigars,

cigarettes, matches, rum, straw hats, shoes, chocolate, soap and a few

other articles. These are financed by Dominican capital and are not

able to supply the local demand. In Santo Domingo City are the remains

of a costly brewery erected by Americans with a view to supplying the

West Indies; it was ruined, so local reports say, by bad management

and has been idle for fifteen years. If the amount of soap used by a

people is really an index of its degree of civilization, then the

Dominicans can claim to be far advanced, for the consumption of soap

manufactured in the country and imported, is very considerable. The

government has encouraged manufacturing enterprises and repeatedly

granted concessions exempting their machinery and raw material from

import duties for specified periods. The number of manufacturing

plants will doubtless increase, but agriculture is bound to remain the

mainstay of the country.

Santo Domingo: A Country with a Future · 第 15 / 23 章