Evening star., 1898-10-21
TRADE AND FINANCE
Conditions in Porto Rico for Congress
to Remedy.
REVISION OF TARIFF NECESSARY
Varying Rates of Exchange HurtfuI
to Business.
OF VIOLENCE
special Correspondence of The Evening Star.


PONCE, Porto Rico, October 10, 1898.
1t is absolutely essential that Congress
should take prompt action in regard to
Commercial matters in Porto Rico and
whatever is done must be done speedily.
Business men of the United States are sub
ject to all sorts of disadvantages at pres
ent owing to the course adopted by the
War Department in prescribing the tariff
duties which should prevail throughout
Porto Rico,
Under existing conditions the tariff duties
now prevailing are identical with those
that existed during the Spanish regime,
with one two exceptions. Since the 1st
of October American butter and English
printed matter have been both placed upon
the free list. Prior to the removal of duty
they were subject to a tariff which was
well-ngh prohibitive. it being the intention
of the Spanish authorities to keep these ar
ticles out of Porto Rico.
Merchants of Porto Rico are not trading
with manufacturers ard jobbers of the
United States, and they will take no steps
in this direction until something is definite
ly settled by Congress in regard to the treat
ment of the newly acquired colonies of
Uncle Sam. If Congress takes prompt
tion and permits free trade between the
United States and its colonies there will be
nothing to prevent the merchants of Porto
Rico from going to New York and other
business Centers of the United States for
merchandise which they are now procuring
from England, France, Germany, Spain
and other European countries. 1t is partc-
ularly noticeable throughout Porto Rico
that the stores are comparatively depleted
of stock, the merchants in the meanwhile
filling in for their necessities from countries
with which they have been doing business
prior to the acquisition of this island by the
United States.
One of the most important importations
at the ports of Porto Rico is rice, all of
which is obtained from Germany at pres
ent. With proper legislation on the part of
Congress there will be nothing to prevent
the rice fields of South Carolina from run
ming German rice out of the market and
making a good return to one of the south
ern states for this staple article of food.
Hardy ware, jeWelry, the few crude and prim-
tive agricultural implements used in the
island are all imported from foreign coun-
tries, but all trade of this character will
naturally be diverted to the United States
as soon as Congress enactS the necessary
legislation.
This is the consensus of opinion among
army officials who have toured the island
business men in all branches of trade and
those who are interested in promoting the
future welfare of Porto Rico. None of
them expects that the millennium, so far as
business relations are concerned between
Porto Rico and the United States, will be
an accomplished fact this century. The
most progressive as well as the most san
gune believe that tidal wave of prosper
lty can De l0auSuTdleu mere WIllln ii COUPE
of years if Congress will only come to the
relief of the business element interested in
making Porto Rico as progressive and prof
liable as any other portion of Uncle Sans
territory.
Our Money UndervaIued.
There is another important matter ar1S-
ing from the rate of exchange to be charged
on Porto Rican silver dollars. AS it is
now, the banks and private business insti-
tntj Of different localities fix this rate
of exchange to suit themselves, regardless
of the rights of the United States govern
ment, it's army and navy, or its citizens.
Ever since the army of occupation landed
in Porto Rico the rate of exchange between
United States treasury notes and Porto
Rican silver dollars has been as variable
as the winds of March. AT first it was de-
termined that 81 in American money should
be receivable for business purposes for -
in Porto Rican money. With the advent of
a business boom, such as the merchants of
Porto Rico had never before experienced,
they took advantage of the opportunity and
put up the prices of their wares, at the
same time decreasing the rate of exchange
between United States and Porto Rican
money 1t has been descending scale, so
far the rate of exchange is concerned,
and the middle Of October found the Amer
lean treasury note for 81 worth only Sl.30
in Porto Rican silver, according to the be-
hests of the business men of the island.
This could have been remedied, however,
II General Brooke mad followed the prece-
dent established by General Shafter in
Cuba, where American dollar was
made equivalent to two Spanish dollars, any
violation of this regulation subjecting the
offender to having his place of business
closed until he became amenable to reason
and military law. General Guy V. Henry
would make short work of the mercantile
community of Porto Rico in the same man
ner if the proper authority were given him,
and he has served notice upon them to thar
effect. General Brooke is in command of
the military forces on the island, however,
and the necessary order must come from
San Juan instead of Ponce, where General
Henry IS stationed.
Meanwhile the government is being sys-
tematically swindled out of % per cent of
its just revenues through a piece of snarp
practice which has been adopted by the
mercantile community of Porto Rico. Mer-
chants and others here buy United States
treasury notes, paying at the rate of $1.50
in Porto Rcan money for 81 American,
and go to the custom house and pay their
taxes with the United States note which
Is received at the rate of two Porto Rtc4n
dollars for United States dollar. 1t is
a rare occurrence now for Porto Rican
money to be paid to the representatives of
the United States at the custom houses or
post offices which have been established in
the island since July of this year. All the
Porto Ricans are aware of the advantages
which are to be derived from using An,eri-
can money, and Porto Rican silver dollars
are being boarded by private individuals
or locked up in the vaults of the various
financial institutions.
Suppressing Violence.
Besides the questions of commerce and
finance, it will also be necessary for Con-
gress to take prompt action in furnishing a
stable and strong government for Porto
Rico. To the average inhabitant of this
island 1t appears that he will be privileged
to wreak summary vengeance and punish
ment against his former prosecutors the
Spanards, and up to the present time they
have not been backward about exercising
their supposed prerogatve This has been
carried on to growing extent all over the
island. and it finally became necessary to
apply a remedy with a view to nipping the
evil in the bud One of the first officers to
appreciate the extent of this tendency on
the part of the natives to persecute their
former taskmasters was Gen. O. H. Erast
in command of the United States forces
near Coamo. Frequent complaints were
made to General Ernst to the effect that
persons who had served in the volunteer
army of Spain, but had surrendered and
accepted the situation in good faith were
being subjected to all sorts of annoyances
and, in many cases, to ill-treatment on the
RI of thGan of