The record-union., 1898-12-12

1
drid at 80 in gold, and 1 understand
that some of the coins have been re-
deemed at that rate, although compare
lively few of them have been carried
back to Spain.
''One of the American commanders
reports to me that a condition that
must be taken into account is the
ownership of most of the plantations.
They are nearly all owned by Spaniards
"a great many of them by Spaniards
residing in Spain. This has resulted
instead of an apparent balance Of
trade considerably in favor of the
island, in a real balance against the
island. The great sugar plantations
owned by people residing in Spain
have, after years, raised a crop of
sugar at an extremely low labor cost.
The sugar has been sold abroad, and
practically the whole return for it has
remained abroad, creating no demand
for exchange against the island. About
the only thing that has been imported
is little calico, and while the trade
returns show a large excess of exports,
the value of those exports never re-
turns in any form to the island. When
the American troops landed it was
thought an easy temporary solution of
the situation to fix the rate of exchange
as between American dollars and pesos
at two for one. That worked satisfac-
torily for a little while, but the eX-
change dealers soon found that they
could make a more profitable rate of
exchange, and our ratio, therefore, be-
came ineffective and imperative. The
settlement of the question lies between
two extremes: on the one hand the fix
ing the value of the peso at the exact
value of the bullion, and, on the other,
giving it an equivalent gold value,
equal to the nominal redeemable rate
of 95, which the Spanish Government
fixed.
can army officer with whom I talked
is in favor of an immediate forced sub
stitution of our currency for the pres
ent Porto Rican currency, and thinks
this might be done by military order
fixing the rate Of exchange. The ques-
ton is, what rate should be fixed? 1t
is not believed the average rate of ex-
change for a series of years should be
taken. Exchange dealers have con-
trolled the situation, with little refer
ence to the actual balance of trade. 1t
would be a hardship on the debtor class
to have the peso too high, and the
debtor class is the whole working popu
lation of the island. There is great
amount of small debts. No one seems
to work without the spur of debt
behind him, and to compel the repay
ment Of these debts in a coinage more
valuable than that in which they were
contracted would be a great hardship.
Attempts are now being made to
collect internal taxes but at present
armed guards have to be sent with the
collector. The scheme of taxation is
something like this: The central Gov
ernment levied on the municipalities Ga
covers not only city, but
a districD a certain amount that must
be collected for the support of the Gov
ernment. The municipality adds to
that further sums for local expendi-
lures. The scheme of taxation by which
this total amount was collected varies
in the different municipalities. 1t is
quite the reverse from our internal
revenue taxes, for little, if anything, is
laid on the manufacture of spirits and
tobacco. The best opinion is that the
judicious introduction of our internal
revenue system and the abandonment
of the Spanish system would be wise
The raising of taxes on spirits would
be a popular movement, and the aban-
donment of other forms of taxes would
give the new scheme further popular
ity. 1t is thought by some that for the
present we are collecting too much rev.
enue, for the reason that up to this
time there has been practically no ex-
penditure.
"There has been a good deal of dis
turbance and destruction of property
in Aguadilla, the province at the north
west corner Of the island and in Maya
guez. 1t is thought S5OO,OOO worth of
property has been destroyed in Aqua
dilla, and that practically nothing could
be raised there this season"