238 



CUBA. 



Reciprocity urged. In June a large number 

 of planters, merchants, and others in Matanzas 

 sent a dispatch to their representative in the 

 Cortes, instructing him to inform the Madrid 

 Government that they learned with displeas- 

 ure of the abolishment of the discriminating 

 duties, and that they protested earnestly against 

 any resolution that does not decree the free ex- 

 port of sugar, free trade with Spain, and a lib- 

 eral treaty with the United States. 



The Committee of Inquiry. On June 7 there 

 arrived at Havana five commissioners from 

 Madrid for the purpose of examining into the 

 condition of Cuba and reporting thereon. It 

 became known that the Madrid Government 

 sent these commissioners in haste as soon as 

 they received official notice of the resignation 

 of Captain-General Castillo, in which he drew 

 a vivid but disquieting picture of the financial 

 and political situation of the island. He added 

 in the notification that his age and his shattered 

 health would not permit him to entertain the 

 hope of successfully coping with a condition of 

 affairs which was desperate from every point 

 of view. 



The Remedy. On July 1, in the Chamber of 

 Deputies of the Spanish Cortes, Sefior Valdo- 

 seza introduced a. bill providing for an improve- 

 ment of the situation of affairs in Cuba. The 

 principal clauses of the bill proper proposed a 

 reduction of the export and an increase of the 

 import duties on sugar, and directed that Spain 

 should negotiate new treaties of commerce in 

 Cuba's interest with foreign nations. Other 

 clauses were intended to effect economies in 

 the Cuban budget, and provide for the con- 

 version of the Cuban debt. The introduction 

 of this bill had been preceded, the day before, 

 by an important interview between Hon. John 

 W. Foster, the American Minister, and Sefior 

 Canovas del Castillo, Prime Minister, and Se- 

 fior J. de Elmayen, Minister of Foreign Affairs. 

 The Spanish ministers showed a desire to ar- 

 rive at an equitable commercial arrangement. 

 Mr. Foster assured them that America was ani- 

 mated with amicable views regarding trade 

 with Cuba, and, as far as possible, would feel 

 inclined to meet the views of Spain and Cuba. 

 He declared that the United States had no wish 

 to assume further political responsibilities. He 

 thought, however, that something must be done 

 for Cuba quickly. Mexico would soon be im- 

 porting sugar into America free. Unless Cuba 

 and the English West India Islands secured equal 

 terms, it was evident that their best market 

 would be lost. 



Sugar Prices. During the summer it was said 

 that planters in Cuba were, to a large extent, 

 bankrupt ; that some of them had been obliged 

 to realize in Havana on centrifugal sugars of 

 92 polarization at three reals the arrobe, in 

 order to redeem the advances received on ac- 

 count of their crops, and that at Cardenas, for 

 similar reasons, a lot of molasses-sugar was 

 sold at one real per arrobe, and a cargo of 

 molasses at $2 per hogshead. There was, at 



the time, no abatement in the dejection that 

 reigned on the island. Several Havana firms 

 declared themselves unable to meet their en- 

 gagements. 



New Taxes. With the month of July a new 

 schedule of rules and tariffs for the collection 

 of contributions for industry and commerce 

 went into force. The rules were so compli- 

 cated and onerous, and the tariff went into 

 such details, that tax-payers became very de- 

 spondent over the same. Grocers, for example, 

 were prohibited from selling any of their goods 

 by the barrel or case, and thus obliged to limit 

 their sales to the narrowest retail trade. They 

 at once sent in a protest against such rules. 

 The municipality of Havana augmented its 

 tariff for taxes with some extraordinary items. 

 Every bill for advertisements posted at street- 

 corners, railroad-stations, theatres, or any pub- 

 lic place, was made to pay from ten to fifteen 

 cents, silver, according to size. Every adver- 

 tisement, in cartoon form or framed, hung in 

 front of establishments, was made to pay fifty 

 to seventy-five cents in gold. For every letter 

 written or printed on the exterior of a build- 

 ing, describing the name and class of the estab- 

 lishment within, five cents yearly was charged. 

 Even letters painted on awnings were included. 



Financial Reforms. Simultaneously a decree 

 was published by which the Minister of the 

 Colonies suppressed the sub-intendancies of the 

 treasury, an annual saving of $72,000, after 

 they had been three months in existence. The 

 contemplated reduction of the estimates for 

 expenses in the island to $27,000,000 was 

 looked upon by the tax-payers as merely nomi- 

 nal, for with every exertion the Government 

 has never been able to collect a larger sum for 

 income. Hence the burden of tax-payers was 

 not likely to be lightened, and in the mo?t favor- 

 able point of view the so-called reduction was 

 looked upon as merely preventing a further 

 deficit. 



Export Duties. -On July 29 a cable-message 

 was received at Havana from Madrid, to the 

 effect that, dating from August 1, the follow- 

 ing reduction in export duties would be made: 

 The surtax of 5 per cent, to be abolished, and 

 the existing duty reduced 60 per cent. ; the 

 duty to be payable one half in bank-bills at 

 their nominal value. 



A Spanish Loan. In October, news was re- 

 ceived that the Spanish Government was ne- 

 gotiating a loan with Parisian bankers for 

 $25,000,000, to relieve the Cuban Treasury un- 

 til its floating debt could be liquidated. It was 

 also said that the Bank of Spain had handed to 

 the treasury $5,000,000 for urgent expenses. 



New Sugar Tariff. On October fi, King Al- 

 fonso signed a decree abolishing the duties 

 levied by Spain upon Cuban sugars, creating 

 differential flag duties upon Spanish West In- 

 dia sugars imported into Spain in foreign ves- 

 sels, increasing the duties on all foreign sugars, 

 and discriminating against nations like England 

 and the United States, not having treaties with 



