The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1899-01-12
Has Already Been Of Great Benefit
to People Of the Island.
In the LessenIng Of Government Expendi-
lures and the Reduction Of Taxes.
General Henry Confident He Can
Pay the Expense Of the Govern
ment and Garry ON Many Needed
improvements With the Gus
toms Receipts Alone.

SAN JUAN DE PORTO RICO, Jan.
S.-The first great blessing that has
come to Porto Rico since the American
occupation has been the reduction Of
taxes and Government expenses. The
budget for the year 1899 has been APP
proved by General Henry. This covers
the expenses OF what is called the In
sular Government" The following
sums which would have been included
in the budget of the Spanish Govern
ment for this year have been stricken
out:
General obligations, $49s,5O1; clergy.
$l97. 945; war, $1,252,3 77; marine,
500, 66S.
The total obligations that ceased to
exist and which are decided from the
amount of the budget is $2.172, 1872.
The difference that has been expended
without the realized economies here
with detailed equals $2,61O,427.
The calculated budget for 1899 is
formed of the following items:
General obligations, $40, $50; State OBJ
legations, $3O4, 955; Justice Department,
sol ,452; Finance Department, $685.
go; Interior Department, $766,639.
The customs for the coming year
were estimated to be So, 132, 800 This
sum is to be reduced by the amount
usually raised by the duty on wheat
flour, and which has been taken off by
General Henry, equal to $500, 600. This
leaves a net revenue from the Custom
House Of So, 632, 900. There will remain,
therefore an excess of 81, 17O,613.
1t should be understood that the
above figures for the estimated budget
for the year embrace only the necessary
expenses for the payment Of salaries
and other fixed charges. If this amount
cannot be paid from the proceeds of the
customs, then it must be raised by
other methods of taxation.
General Henry has asked of Wash
frgton the right to apply the customs
receipts to the expenses Of the Govern
ment. If this should be permitted all
Government expenses could be paid and
many improvements carried on.
At tse present time there are many
taxes collected that are a great him
drance to commerce, and if the customs
receipts could be used these might be
done away with. Merchants, in doing
business in Porto Rico, pay almost a
prohibitive tax.
No one can engage in the banking or
importing business without paying to
the Government a tax of about $500
pesos per annum.
Then there are consumption taxes i'm
posed upon every article imported for
consumption. These should all be done
away with, as they hinder trade and
prevent the trade from America enter
ing here.
Many Americans have come here for
the purpose of establishing trade with
Porto Rico, and representatives of cap
ital have visited the island for the pur-
pose of securing franchises for the
building of public improvements. They
have received a check by the recent
order of the War Department, which
prohibits any town in Porto Rico from
granting any franchises for public i'm
provements without first referring the
application to the Military Governor.
The latter must refer the application to
the Secretary Of War before the same
may be granted.
The effect of this order is to tie the
hands of the Military Governor and to
practically put stop to any improve
ments upon the part of the municipali-
TITS Ills iullIlS VI Tie w al DCPdi l.
ment, with the delay in reducing the
tariff upon articles between the United
States and Porto Rico, will delay the
development of the country.
There are very good prospects for
capital, but as long as these matters
are uncertain, capital will not be in
vested in the trade or development of
the country. When this order came
General Henry regarded it as an ad-
vantage to the holders Of Spanish fran
chises, and therefore, promptly made
an order revoking all the latter. His
idea was to place all upon an equality.
He had hardly signed the latter order,
however, before the legal questions in
vclved presented themselves and he
decided to rescind it. A serious ques-
ton was raised and one that might
have been decided against the General
in favor of the holders Of old Spanish
concessions.