Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1901-07-06
Porte Rico's New Status,

should begin upon the national holi-
day. The present Is per cent. tariff
rate on all trade between the island
and the United States would cease
anyway in eight months. but it is bet
ter that 1t cease now, since circum-
stances justify 1t. and that the initia-
tive should be taken by the people of
Porto Rico themselves. The legisla-
ture in special session will notify the
ing revenue for the islands needs has
teen devised, and a proclamation will
follow abolishing the Is per cent. tariff
rate and establishing free trade.
1t Is frankly recognized at Porto
| Rico now that the temporary tariff
was wise and indispensable. There
was some grumbling about it for a
while, but it can be seen now that
without it the island could not have
produced the necessary revenue.
Time was required to make the peO-
pie accustomed to a new system OF
taxation. based on modern ideas and
! sound economic principles. Last
| winter. after much patient labor on
| the part of Gov. Allen and his asso-
, ciates. the legislature framed a rev.
enue bill called the Hollander bill,
after the American professor who is
treasurer of Porto Rico. This measure
HAS now had. for a large part of it, a
test of some four months in opera
, ton. 1t is better liked the better it
IS understood. 1t has worked ad-
mirably on the whole. and the infiu-
e1ces which were originally opposed
to it have ceased their clamor.
Gov. Aliens study of the financial
situation disclosed the fact that the
valuation of the island amounts to
SlOO, 1000. This is conservative
estimate. The coffee lands of Porto
Rico. which suffered severely from
the hurricane, have been valued at a
very low price because they required
time for recovery. The sugar. lands,
which will gain immensely by free
trade with the United States and the
Dingley protective tariff against for
eign sugar, are justifiably given the
highest valuation. The tobacco
land. which indirectly feel the
pressure of internal revenue. receive
4 conservative appraisement. In his
annual message of Dec. 3. 1900. Gov
Allen rather cautiously recorded his
Rico was 800, 900. 900. 1t must be
very gratifying to him to find how
completely his opinion is confirmed
by careful examination.
Porto Rico comes out of the fiscal
year closing June 80 with bills all
paid and a surplus of probably more
than s6OO,0OO. Moreover, there is
still unexpended from the $1,000. 900
fund appropriated by Congress about
100000. Against this large sur
plus there is no insular Indebtedness.
Altogether. it is a splendid showing
for the first year Of American civil
government in Porto Rico, and n
convincing token Of the sagacity of
Gov. Allen and his colleagues. Porto
Rican credit at once becomes. to all
practical purposes. as sound as the
credit Of the United States itself
Hawaii. until it's present riff-raff
legislature began to upset things,
| had been a well-governed state. but
Hawaii, with $4,000 Inhabitants. or
ne-sixth of the population of Porto
Rico. has budget this year Of 49,
| OOO. 900. and will have deficit of
about S1,OOO.O0O. The budget of
Porto Rico. with one million people,
for the next fiscal year will aggre-
gate about 100000. The revenues
of the insular government will prob
ably amount to about 100000 from
the property tax, 100000 from ex-
| else taxes and about $780, from
customs duties on imports into Porto
Rico from foreign countries. total
of $2,O5O, 900. which leaves a nice lit
tie surplus for contingencies. without
reckoning such lesser sources of in
come as the inheritance tax. license
fees of various kinds. judicial fines,
royalties on franchise charges, etc.
All these kinds of revenue will grow
with increasing insular prosperity.
1t is quite probable that the second
year Of the new fiscal policy will
witness a large balance on the right
side.
| Gov. Allen did graceful thing
in choosing the national holiday for
the assembling of the legislature to
perform the act which will give the
Porto Ricans every mercantile adj
Vantage under national policy en-
joyei by the citizens of New England
or California. 1t was justly a great
festival day in San Juan and
| thrOurhOut the island The .DrOgress