Porto Rico Part 15

As to our new acquisition of new colonies by the United States, Theodore S. Wolsey, Professor of International Law at Yale University, has this to say, and every word he utters is pregnant with meaning, for no one could be a more capable judge:

"It has already been said that England learned the lesson of the American Revolution, while Spain has never heeded it nor the loss of her own colonies. Yet it really was not until fifty years ago that their methods sharply diverged. As early as 1778 Spain had begun to open her dependencies to Foreign trade, and early in this century they were allowed to trade with one another. So, likewise, although great changes had been earlier made in the English colonies, the spirit of monopoly and of a restrictive policy was in force until about 1815. So far as relates to the evils of the colonial system, then, the two were not very unlike. But into the field of administrative reform and the grant of autonomous powers to her colonies, Spain never has entered. The abuses of the early part of the century characterize also its later years.

Discrimination against the native-born, even of the purest Spanish stock; officials who regard the colony as a mine to be worked, not a trust to be administered; forced dependence upon the mother country for manufactures, even for produce, so far as duties can effect it; self-government stifled; representation in the Cortes denied or a nullity; a civil service unprogressive, ignorant, sometimes corrupt--compare these handicaps with the growth, the prosperity, the independence, above all, the decent and orderly administration, of the colonies of England. One of the wonderful things in this half century is that army of British youth, with but little special training or genius, or even, perhaps, conscious sympathy for the work, learning to administer the great and growing Indian and colonial empire honestly and wisely and well, with courage and judgment equal to emergencies, animated by an every-day working sense of duty and honor, but not very often making any fuss or phrases about it. It is not that Spanish colonial government is worse than formerly, which is costing it now so dear, but that it is no better, while the world's standard has advanced and condemns it. Never yet has Spain looked at her colonies with their own welfare uppermost in her mind. She has never outgrown the old mistaken theories. Her fault is medievalism, alias ignorance.

"It is not a cause for wonder, therefore, quite apart from special sources of discontent, that Cuba, which, by position is thrown into contact with progressive peoples, should chafe at her leading strings.

Without reference to the corruption and cruelty, arrogance, injustice and repression which are alleged against the mother country, without rhetoric and without animosity, we may fairly say that Spain is losing Cuba, perhaps all her colonies, simply because she has not conformed to the standard of the time in the matter of colonial government. If England had not altered her own methods, her colonies would long since have abandoned her as opportunity offered. The wonder really is that Spain has held hers so long; for Cuba, at least, owing to its exceptional fertility and position, has relatively outstripped its declining mother.

"There remains the moral of the story.

"If we are not mistaken as to the fundamental causes of Spain's colonial weakness, other colonial powers must take warning also, and the United States in particular, if it yields to the temptations, or, as many say, a.s.sumes the divinely-ordered responsibilities, of the situation. For its protective system is a derivative of the mercantile system, as the colonial system was. If it becomes a colonial power, but attempts by heavy duties to limit the foreign trade of its colonies, if it administers those colonies through officials of the spoils type, if it fails to enlarge the local liberties and privileges of its dependencies up to the limit of their receptive powers--if, in short, it holds colonies for its own aggrandizement, instead of their well-being--it will be but repeating the blunders of Spain, and the end will be disaster."

Colonel Hill has declared that the heavy burdens under which the business world of Porto Rico has been staggering in the past have been almost inconceivable. Something of this has already been said, but it may be well to give Colonel Hill's views, as he is certainly a most competent judge. The colonel says that in the first place there has been a tax on every ship that comes in and goes out. There has been a heavy tax on all articles of impost and a special tax on all articles not enumerated in the tariff. In addition to that, an additional tax of ten per cent. on the bill was added. Each hackman who plied between the port and the town of Ponce had to pay a tax of eight dollars a month. No person could write a letter to an official without first going to the collector and purchasing a certain kind of official paper, for which he must pay fifty cents to one dollar a sheet. The price was regulated by the rank of the official who had to be written to.

The effect of all this was rather to increase the number of complaints from citizens than to increase the revenues of the island.

To General Ernst, who was the officer in command of the territory of Coamo, a large number of protests were made. In especial, a delegation of twelve to fifteen citizens called upon the general to request the removal of the alcalde, on the ground that he had been an officer in the Spanish volunteer army, and was unsatisfactory because of his former connections. The gentleman, however, had gracefully accepted the new condition of affairs and was performing the duties of his office earnestly and faithfully. These facts General Ernst was in possession of and he was forced in consequence to deny the request of the delegation.

For his own protection and to remove any false impression there might be in the public mind, General Ernst issued the following proclamation, which was printed in both English and Spanish:

"Headquarters 1st Brigade, 1st Div., 1st Army Corps, Camp Near Coamo, Porto Rico, September 3, 1898.

To the People of Coamo and Neighboring Districts:

"To prevent misunderstanding as to the rights and duties of the various members of this community, you are respectfully informed:

"1. That no change has been made in the civil laws of Porto Rico, and that none can be made except by the Congress of the United States. The present civil authorities are to be obeyed and respected.

"2. That no prejudice rests against any citizen, whether in office or not, for having served as a volunteer, if he now frankly accepts the authority of the United States.

"3. That the persecution of persons simply because they are Spaniards, or Spanish sympathizers, will not be tolerated. They, as well as the Porto Ricans, are all expected to become good American citizens, and, in any event, they are ent.i.tled to the protection of the law until they violate it.

O. H. Ernst, "Brigadier-General Commanding."

About this time President McKinley promulgated through the War Department the revised customs tariff and regulations to be enforced by the military authorities in the ports of Porto Rico.

In general, the regulations for Porto Rico were practically the same as those promulgated for Cuba and the Philippines. The one important difference was that trade between ports in the United States and ports and places in the possession of the United States in Porto Rico be restricted to registered vessels of the United States and prohibited to all others. It was provided that any merchandise transported in violation of this regulation should be subject to forfeiture, and that for every pa.s.senger transported and landed in violation of this regulation the transporting vessel should be subject to a penalty of $200.

This regulation should not be construed to forbid the sailing of other than registered vessels of the United States with cargo and pa.s.sengers between the United States and Porto Rico, provided that they were not landed, but were destined for some foreign port or place.

It was further provided that this regulation should not be construed to authorize lower tonnage taxes or other navigation charges on American vessels entering the ports of Porto Rico from the United States than were paid by foreign vessels from foreign countries, nor to authorize any lower customs charges or tariff charges on the cargoes of American vessels entering from the United States than were paid on the cargoes of foreign vessels entering from foreign ports.

The regulations as to entering and clearing vessels and the penalties for the violation were the same as those fixed for Cuban ports in the possession of the United States. The tonnage dues were reduced, as in Cuba, to twenty cents per ton on vessels entering from ports other than Porto Rican ports in the possession of the United States, and two cents a ton on vessels from other ports in Porto Rico. The landing charge of $1 per ton was abolished, and the special tax of fifty cents on each ton of merchandise landed at San Juan and Mayaguez for harbor improvement was continued.

As in Cuba, the Spanish minimum tariff was to be collected. On most articles, however, this was much higher than the minimum tariff which was imposed by Spain in Cuba. The differential in Porto Rico imposed on goods imported from countries other than Spain was much smaller than in Cuba, so that under Spanish rule there was not a wide difference between duties on goods from countries other than Spain imported into the two islands. Under the operation of the President's orders imposing the minimum tariffs in both islands the effect would be to tax most articles much higher in Porto Rico than in Cuba. As in Cuba, a tariff was imposed on tobacco, manufactured tobacco, cigars and cigarettes equivalent to the internal revenue taxes imposed in the United States.

Richard Harding Davis says that there will be no such complications in Porto Rico as those which exist in Cuba for the United States troops there were not allies. They were men who came, were seen and conquered.

The revolutionary leaders had no share or credit in their triumphal progress.

Now to examine into what Porto Rico offers for American enterprise and capital.

In the first place, United States Consul Hanna has been flooded with letters from fortune hunters. He strongly advised all of them to remain at home until the Americans were in complete control. Now, let us examine what one or two competent authorities have to say of Porto Rico, so far as American enterprise is concerned.

Here is the opinion of a man who has lived in Porto Rico for several years and who knows of what he is speaking:

"We take Porto Rico, too, at a time when everything favors increased prosperity. It has not been ravaged and wrecked, like Cuba, by war. Its foreign trade in 1896, amounting to $36,624,120, was the largest in its history, the value of the exports then, for the first time in over ten years, exceeding that of the imports. Of course the main trade has always been with Spain, but the trade with us stands next, and during the year in question was over two-thirds of that with Spain. Of late, it is true, our trade with Porto Rico has been relatively declining, being far less than it was a quarter of a century ago. During the reciprocity period of a few years since it increased somewhat, but after that it fell off again. It is important to note, however, that our exports to Porto Rico have kept well up of late years, the falling off in total trade being due to the decline of our imports, so that now the exports are not far from equal to the imports, instead of being much inferior as formerly. It is a noteworthy fact that the exchange from both countries is mostly of products of the soil. That is the case with ninety-nine hundredths of Porto Rico's exports to us, sugar and mola.s.ses comprising 85 per cent., with coffee coming next, and it is also true of over three-fifths of our exports to Porto Rico, among which breadstuffs and meat foods are prominent.

"But with Porto Rico fully ours, and the discriminations enforced by past laws in favor of Spanish trade wiped out, there must be a change in the currents of her commerce. We shall expect to furnish the chief markets for her products, and on the other hand to send to the island more food products than ever, more machinery, textile fabrics, iron and steel. Her capabilities will be developed, perhaps notably in coffee cultivation. Her peaceful and industrious people will welcome American enterprise and capital, American progressive methods, and free inst.i.tutions. Indeed one of the most striking events of this year was the extraordinary enthusiasm with which American troops were greeted all along the southern sh.o.r.es of the island. It was as if the people could already forecast the great future in store for them, under American laws and the American flag."

A correspondent of the New York Evening Post, who signs himself by the initials A. G. R., speaks with authority as follows:

"The prominence given to the island by the events of recent months has led many of our people to think it of vastly greater importance, commercially, than it really is. Consul Hanna, who is back in his old quarters in San Juan, has a small wheelbarrow load of letters from all parts of the United States, asking detailed information upon all conceivable lines of trade, manufacture and profession. To answer them according to the terms of their requests would be the work of a short lifetime. But they indicate the widespread interest of American business men in Porto Rican mercantile affairs. Every steamer arriving here brings its group of American pa.s.sengers. Some are visitors who make the trip only through curiosity. The majority come with an idea of some form of business, either in the shape of a speculative flyer, permanent investment, or a commercial or industrial establishment.

"A large percentage of those who come are young men, who have just about enough money to get them here, to keep them here for a week or two, and then get them home again. These come in the hope of finding immediate employment, of catching on to something which will maintain them. They invariably go home again. The island is no place for such. None but the capitalist, the investor, or the business man with money for his business, should come to Porto Rico with anything more in view than an outing or a vacation. As things are at present, there is little enough to interest the capitalist or the investor. The man who is looking for a job should look for it at home; his chances are infinitely better than they are here. There is absolutely nothing for the position hunter, for the clerk, or for the workman. In time there may be something, but it will be, at the least, many months before such opportunities are open, and even then they will be few. Until then the case is hopeless, and those who come will but do as their predecessors have done--go home again, poorer and wiser men. If a young man can afford to spend a couple of hundred dollars in the purchase of that particular form of wisdom, the opportunity is open to him here on this island. If he cannot afford it, he will do better not to risk it.

"Merchants will find nothing to do here, except to glean a certain amount of information of rather doubtful accuracy, until the question of tariff rates shall have been definitely settled. There is now nothing on which to base any plans or calculations for business operations. The native merchants are complaining seriously. They are waiting to place orders for hundreds of thousands of dollars' worth of goods to replenish stocks which have been depleted through many mouths of uncertain trade conditions, and are losing business which they have been led to expect would be open to them almost immediately after the American occupation of the different cities in which they are located. Nor is it at all easy for an American to obtain any definite information or accurate details regarding any particular line of business and its possibilities. Local commercial methods are not reduced to the system which prevails among American business men. The Porto Rican merchant buys and sells, but I fail to find evidence of that close study of business and business methods by which the American merchant increases his trade and his profits.

"The entire trade of the island is of no very great magnitude. The local trade in local products is chiefly confined to the morning market for table supplies, which is held in all the cities and larger towns.

The total imports and exports hardly reach a gross amount of thirty millions of dollars a year, and the imports exceed the exports by a couple of millions. I have been unable to find any statistics which I was willing to accept as wholly reliable. So far as I can learn, no complete report has been submitted by the United States Consul, and there are discrepancies which I cannot reconcile in the published reports of the English Consul and those of the Dutch Consul. I can, therefore, only give figures which are approximate, though they are sufficiently close for general purposes.

"Cotton goods appear to be the largest item among the imports, and they represent a trade of two or three millions of dollars, varying from year to year, according to the prices and the success or failure of the crop products of the island. Rice is imported to the value of one and a half to two millions of dollars. Flour, chiefly from the United States, approximates three-quarters of a million dollars. Dried, salt and pickled fish, of which Canada seems to obtain the lion's share of the trade, represents a million to a million and a quarter. The United States has the major portion of a trade in pork and pork products which about equals the fish business.

"Woollen goods are, naturally, of but limited consumption in so warm a climate, and the trade is probably less than $150,000 in amount.

Agricultural implements represent a business of three to four hundred thousand dollars. Boots and shoes, almost exclusively from Spain, represent some five or six hundred thousand. Chinaware, gla.s.sware, lumber, coal, soap, furniture and other articles of general use and consumption represent amounts varying from one to three or four hundred thousand dollars.

"The most astonishing thing in the whole list of importations is the item of vegetable and garden products. These are imported into this country, which is in itself but a natural garden in which can and should be raised every form of vegetable necessary or desirable for consumption, and the annual value of the imports approximates $400,000 and the weight 7,000 tons. The island uses $150,000 worth of imported candles and $50,000 worth of imported b.u.t.ter yearly. It uses two to three hundred thousand dollars' worth of cheese, of which the Netherlands have, for the last few years, furnished much the greater part. Uruguay and the Argentine supply it with one to three thousand tons of jerked beef annually. Wines, beers, and liquors take something more than a half a million a year out of the country.

"Among Porto Rican exports coffee is the heaviest item. This reaches an average valuation of some $10,000,000 a year. Sugar ranks next, and approximates three to four million dollars. Tobacco goes to the extent of some half a million, and mola.s.ses touches about the same figure.

Hides, cattle, timber and fruit are represented in the list, but their value is comparatively inconsiderable. Guano to the extent of half a million a year appears in the reports for some years, but I am unable to account for either the article or the amount. Some corn has been sent to Cuba, some native rum to Spain, and some bay rum to France and to the United States.

"It will thus be seen that, as yet, the island offers but a comparatively limited amount of business, either in buying or selling.

Under wise laws, and a just and equitable system of taxation, with a suitable railway system and improved highways, and with the ports of the United States and of the islands open to the exchange of commodities, free of duty, a very material increase of the business of the island will inevitably follow. It is quite possible to double the trade within the next ten or fifteen years. There will be some wildcat speculation, some unwise investment and some loss to investors. The schemer and the promoter will find victims who will put their money into companies whose future is wholly hopeless. But along with that there may reasonably be expected a steady growth and improvement. But it will come by gradual increase and development, and not by a sudden bound."

According to Mr. William J. Morrisey, a prominent real estate dealer of Brooklyn, who spent some time in Porto Rico, the island is no place for an American to invest any money at present. He says that the place can be made to pay, provided the United States Government clears the entire island of Spaniards and fills the towns and cities with the American people.

Mr. Morrisey also states that the natives of the cities are desirous of becoming American citizens, but that out in the country, it is far different. These people are constantly in fear of the Americans, and their sole desire is to dispose of their property as soon as possible and return to Spain. The more enlightened of them are of the opinion that the United States Government will banish all the Spaniards from the island and thereby make it more agreeable for the residents.

A dispatch of the Evening Post says that in view of representations made to the War Department that the munic.i.p.al councils in Porto Rico were making hay while the sun shines, and granting business franchises right and left under the Spanish law empowering them to do so, orders were recently issued to General Brooke to put a stop to the practice forthwith, and the announcement was given out that on the evacuation by the Spaniards, and our a.s.sumption of military authority in the island, no more of these loose grants would be made. Meanwhile American shippers were in a state of mind over a lack of ships with which to conduct the normal commerce of this country with Porto Rico. The change of status for the island, from being a foreign possession to a port of the United States coast, had made the rigid regulations of our coasting trade applicable to it, and the purchase of so many of our coasting vessels by the government for use as transports, coalers, and the like, had embarra.s.sed the progress of coast commerce not a little. The regulations had to be suspended on two or three occasions to let in ships which seemed absolutely necessary, and now the question came up whether it would be best to suspend the regulations altogether or to have each separate vessel which needed American papers apply to Congress for special legislation.

There was another question, and a very important one, which came up, and that was how far Louisiana and other sugar-producing States would be affected by the annexation of Porto Rico.

In no State in the Union does a single interest play so important and so peculiar a part as the sugar industry in Louisiana. Fully two-fifths of the inhabitants of the State are more or less interested in sugar, and any great disaster to the crop would injure ninety per cent. of the population in southern Louisiana.

So far as Porto Rico goes, it is very doubtful if it will injure Louisiana in any way. As has been said before, the island is densely populated, small in area, and with little additional land available for sugar. It is by no means probable that it will increase materially in its sugar production. American laws will militate against the importation of contract labor, and will therefore prevent any undue compet.i.tion. As the New York Sun very justly observes, the bugbear of the Louisiana sugar planter is not territorial expansion, but the war taxes and the possibility of their permanent adoption, bringing with it the reopening of the old tariff agitation, which they supposed was permanently closed.

Taking it all in all, territorial expansion has certainly no terrors for the Louisiana planters.

With the evidence we have given, it is easy to see what Porto Rico has to offer, or not to offer, to Americans.