26 agbicultural eesourojis, etc., of porto rico. 

 Depression in Agriculture. 



Many persons are under the impression that the agricultural indus- 

 tries of Porto Rico were prosperous under Spain, and that their decline 

 is due to bad management upon our part and to the hurricane of 

 August 8, 1899. The American flag was not formally raised over the 

 island till October, 1898. Almost immediately evidence was taken set- 

 ting forth the condition of agriculture. This evidence conclusively 

 establishes the fact that, while the income of the coffee farms was con- 

 siderable, the profits did not go into the hands of the tillers of the soil, 

 but went to enrich the capitalist, who in many cases returned to Spain 

 in a few years to enjoy his wealth. Blocks of stately buildings in Bar- 

 celona and other Spanish cities are shown the traveler which were 

 built with the profits obtained from the products of Porto Rican farms. 



The conditions upon which the coffee planters secured loans to ma.ke 

 their crops is proof that the coffee industry had not been prospering 

 as it should. But there is plenty of direct proof taken prior to the 

 hurricane, and all to the same effect. 



SeSor Luis Cenal, of Fajardo, stated on November 6, 1898: 



The abandoned cane estates are run to pasture, but as this is not making proper 

 use of the land it can be calculated that 75 per cent of the district is, properly 

 speaking, unproductive. 



"November 7, 1898, Mayor Eustaquio Torres, of Guyanilla stated: 



Agriculture, which has been languishing and has been impoverished, is over- 

 whelmed by enormous tributes, wanting facilities afforded by an agricultural 

 bank, and fighting an unequal fight with the merchants, owing to the tact that 

 the difficulties of the money system closes to it foreign and national markets. 

 From this cause originates the general depression of the country, especially of the 

 laboring class. This class does not earn enough to buy food, and its ranks 

 are being swelled enormously by small proprietors, who, wanting in means to till 

 their small farms, are obliged to sell them. That is the reason why public wealth 

 is concentrated in the hands of a few capitalists in each town, and also why so 

 many uncultivated lands are seen, their owners, owing to their great extent, not 

 being able to give them attention. 



The above evidence was taken before Dr. H. K. Carroll, commis- 

 sioner ; and evidence was placed before me proving that the sugar inter- 

 ests had scarcely paid expenses for the ten years prior to 1899. 



Causes of Depression in Agriculture. 



It is pertinent to inquire the causes of the decline of agriculture 

 under Spanish rule. They may be summarized as follows : 



(1) The system of credit or "advances" — explained under head of 

 "coffee." 



(2) The manufactures necessary to obtain full value of farm crops 

 discouraged. 



(3^ Farms taxed for benefit of cities. 

 f4j Tendency to build up large farms. 

 (6) The consumption tax on food. 



(6) Laws favoring the merchant class. 



(7) No country roads; cost of transportation excessive. In some 

 cases it costs $1.25 to transport 100 pounds 5 miles. 



(8) Economic conditions bad. Little agricultural machinery and 

 few implements used on account of excessive import duties; labor 

 depressed and unable to do good work. 



(9) Landlordism. Farms fell into the hands of town and city peo- 

 ple who knew little of farming. Many farmers were so involved that 

 they could not control the management of their farms. 



