THE CUBA REVIEW. 



13 



FINANCES OF CUBA. 



On May 26 President Gomez sent to the 

 Cuban congress a message transmitting the 

 budget for the coming fiscal year. The 

 figures do not differ materially from those 

 given out recently by Secretary of the 

 Treasury Villegas, the annual budget being 

 $30,004,392. and the fixed budget $3,821,056, 

 a total of $33,825,448. 



The receipts reach the same sum and are ex- 

 pected to be derived from the following sources : 

 Customs, $24,215,088, consular fees $385,000, post- 

 office and telegraph $897,500, internal taxes $910,- 

 000, income from state lands $329,000, receipts 

 from various sources $1,388,860, internal revenue 

 $3,700,000, estimated receipts from the national 

 lottery $2,000,000. 



The increase over the previous budget, amount- 

 ing to $7,500,000, is accounted for by the decrees 

 of the provisional government and other extra- 

 ordinary obligations, of which the principal costs 

 were the permanent army, $2,103,000; the 

 Havana sewer system, $1,500,000; water 

 works at Cienfuegos, $700,000 ; railway subsidies, 

 $300,000; obligations created by decrees, $1,000,- 

 000; indemnity for the last revolution, $348,305; 

 the share of the nation and of the government in 

 the cost of the Havana police, $594,000 ; sinking 

 fund of foreign loan for three months, $255,000; 

 increase for the department of agriculture, 

 $500,000. 



Pres. Gomez also said that he is unwilling to 

 increase existing taxes or impose export duties 

 on sugar and tobacco. That he is unable at 

 present to introduce econoinies on account of re- 

 cently imposed heavy obligations, such as the 

 cost of the army, but on tlie restoration of nor- 

 mal conditions he feels the fullest confidence in 

 his ability to satisfy his earnest desire to insti- 

 tute important economic reforms. 



The publication of the budget and its large 

 increase over previous estimates caused 

 alarmists' despatches to be sent to United 

 States newspapers, and these with few ex- 

 ceptions took a very gloomy view of the 

 island's financial situation, and expressed 

 the opinion that the revenues would not be 

 sufficient and that a serious deficit was in 

 sight. The New York Tribune said, "There 

 can be no urgent reason for so greatly in- 

 creasing expenditures." The Journal of 

 Commerce said it was unfortunate that 

 "Recklessness in financial expenditures 

 should have so soon brought the problem of 

 a stable government for Cuba once more 

 into the field of discussion." It was pointed 

 out that Governor Magoon's adtninistra- 

 tion of the island had been specially strong 

 on its financial side. Under American con- 

 trol the budget for the fiscal year which 

 will end June 30, was $24,250,000 and the 

 revenues were $27,000,000, leaving a com- 

 fortable surplus for the year of $2,750,000. 



The general opinion seemed to question 

 whether the Cuban government could 

 meet its obligations out of the ordinary 

 sources of revenue? 



It was said also that contractors who have 

 claims against the government are unable 

 to get their money. Two of these are W. J. 

 Oliver, of Knoxville, Tenn, and the McGiv- 

 eny-Rokeby firm, which has the contract for 

 sewering and paving Havana. There is 



more than $400,000 due to the former for 

 road work completed. 



The press also said that President Taft 

 was very much disturbed and that gulf 

 troops were being held for a call to Cuba. 

 This latter rumor was promptly denied, 

 however, by a statement from a "high au- 

 thority" in Washington to' the New York 

 Herald to this effect. 



The government has not received any in- 

 formation from Cuba that can make it ap- 

 prehensive about the situation there or in 

 any way repent of the United States' action 

 in turning over ihe government of Cuba to 

 the officials elected by the Cuban people. On 

 the contrary, news from there is that Presi- 

 dent Gomez is doing very well in the short 

 time of his administration. Also that the 

 articles published in this country dated from 

 Washington or elsewhere about the Ameri- 

 can government intending to land troops in 

 Cuba, or establishing in Havana a mixed 

 government, have no foundation whatever. 



El Triunfo, the government organ, said 

 that it was sheer exaggeration to consider 

 as excessive the estimates of $34,000,000 in 

 the budget for the coming fiscal year, in- 

 sisting that on the contrary it would prove 

 a positive saving over the present budget. 



Gen. Garcia Valez, the Cuban minister 

 here, made a statement on May 28. 



"There appears to' be an organized move- 

 ment to misrepresent in this country Cuban 

 affairs and to spread alarm through the Uni- 

 ted States with a view of arousing public 

 opinion against the Cuban government," said 

 Gen. Valez. "There is no cause whatever 

 for criticism, and the financial problems of 

 Cuba can be easily solved without tying up 

 the treasury with the issue of the new loan 

 which President Gomez is authorized to 

 make by a decree of the provisional gov- 

 ernment. 



"Another proof that the financial situation 

 in Cuba docs not warrant any concern is 

 the fact of the suspension of the export tax 

 on sugar, tobacco, cigarettes, cut tobacco and 

 liquors. In case of an emergency this tax 

 can be again enforced." 



He issued an extended statement in de- 

 tail of estimates and expenditures to 

 support his assertion that the finances 

 of Cuba are in good condition. 



The last word was that officials of the 

 State Department had received advices from 

 American diplomatic representatives on the 

 island bearing out in detail the version of 

 the Cuban authorities. Desire is shown in. 

 official circles to ascertain who is at the bot-- 

 tom of the apparent plans to make it appeal^ 

 that the President and the United States, 

 government are worried about Cuban fi-- 

 nancs and that American intervention again 

 is imminent. 



