THE CUBA REVIEW 



Department of the Interior 6,798,052 



Department of the Treasury 2,874,801 



Supplementary appropriation for Department of Treasury 695,117 



Department of Education 8,424,851 



Department of Pubhc Works 3,713,518 



Department of Health and Charity 4,749,508 



Department of Agriculture 783,973 



i Department of War and Navy 9,516,024 



Pensions of veterans 1,240,806 



Total $54,852,102 



From the resulting difference between revenue and expenses, amounting to $786,699, 

 the sum of $600,000 is to be set aside as a special fund for harbor improvements. 



j The 1921-22 Budget — Probability of Modifying the New Budget. 



The 1922-23 budget shows a decrease in expenditures as compared with the budget 

 for 1921-22, when the total expenditures amounted to $50,057,278, of which $8,623,651 

 was appropriated for the public debt, $12,273,346 for the War and Navy Department, 

 i $9,528,317 for public instruction, and $4,059,225 for public works. 

 [ It is probable that the new budget will be modified in the course of the fiscal 

 ! year. In fact there is already agitation to increase the appropriations for the Depart- 

 ; ment of Education and the Department of Communications at the expense of the 

 ' appropriation for Congress. Moreover, it is reported that the revenue for the first days 

 ' of the fiscal year is considerably less than estimated by the budget, which would indi- 

 cate that still further reductions in expenditures may be necessary. 



It will be noted that the new budget makes no provision for liquidating the floating 

 debt. Additional taxation appears to be the only means of accomplishing this liquidation 

 and the tendency seems to be toward a taxation plan that would include a 1 per cent. 

 . gross sales tax, a sand tax, an amusement tax, and certain other new taxes. 



1 Possibility of Increased Revenue 



If the sugar market improves perceptibly during the fiscal year, Government 



financing will be facilitated accordingly. The first direct benefit would come in internal 



I revenue from the sugar tax, but the customs receipts, the consular receipts, and receipts 



from port charges, etc., would benefit indirectly through the increased buying power 



and the consequent increase in trade. 



The new Cuban tariff now awaiting the consideration and action of Congress may 

 assist in increasing revenue, but it does not seem clear whether Congress will act on 

 this tariff proposal before they adjourn, due to the pressure of tax legislation and the 

 approach of the congressional elections. 



The State of Suspension of Payments in Cuba 



A Cuban legal authority has prepared for the Division of Commercial Laws the 

 following interesting exposition of the troublesome problem presented by the application 

 of the law of suspension of payments: 



The state of suspension of payments recognized by Cuban law is an intermediate, 

 provisional position between that of a merchant whose business is being conducted 

 with normal activity, fulfilling his obligations toward his creditors, and that of one 

 who is bankrupt. 



Experience has shown that frequently a merchant may be obliged to delay pay- 

 ment to his creditors because of temporary troubles, and despite the fact that he 

 really has more assets than liabilities; and that under the circumstances it would be 

 advisable to protect his honest efforts and the interests of his creditors by avoiding 

 the ruinous procedure of bankruptcy. 



