New-York tribune., 1902-12-08

Looking steadily at the growth of the new
economic and political tendencies that one nnes
in Cuba when he returns to continue his ooser-
vations in the island republic. after an absence
of six months. one becomes convinced that sueh
new tendencies are due to the Cubans despair
of arriving at agreement with the united
States in regard to the terms of exchange Of the
products of the two countries; that the last
analysis of every seeming conflict Of interests
yields nothing than an adjustable differ
ence of opinion as to the amount of duty that
Cuban products should Fay on entering our
ports and the amount of duty that cur products
should pay on entering Cuban ports.
If this conclusion is correct (and it Is expressed
only after weeks have been passed in attentive
study then It follows that the situation which
has arisen, difficult though it appears and even
dangerous though Il may become If misnan-
aged is still to be controlled by the simple
process of removing the cause Of the trouble and
inspiring the Cubans with a well founded hope
for the future, resting upon actual proof OF our
friendship. 1t does not follow, however. that
the control of the situation will always remain
so entirely in our hands, II continue to take
our own time while the matter more and more
urgently presses for decision. Nor does IL fol-
low that we can accomplish the desired result
through mere renewal of old promises or the
repetition of timeworn assurances. The minds
Of leading Cubans are preoccupied with sug-
gestions from other quarters-with newer. yet
untried offers Of substantial relief. the first ef-
feet Of which Is to displace the feeling of entire
dependence upon the United States tnat was
manifested so clearly last spring. During the
long tropical summer European competitors Tor
the favors Cuba unquestionably has to bestov
learned to match vigorous offers against the
rather faded American specimens that some OF
these foreign competitors and critics called
broken promises" In the matter Of promise
giving, therefore. we were and are outeiasseo
Action on our part-prompt action. too-seems
to be required.
Let us first consider new aspects of the fnan-
ciaI condition of the island Last spring the
best opinion indicated. as the probable conse-
quence of failure to secure tariff concessions.
an utter collapse of Cuban industries and
riotous demonstrations on the part of the un-
employed workmen. We shall be unjust to
those who have proved faithful over few
things IL we do not acknowledge that an ad-
rnirabIe effort has been made to keep the most
important industries moving along in the usual
vay and to preserve order throughout the
country In both respects. also. the effort has
been successful. The Industrial results have
indeed, so far outrun expectations that spirit
of overconfdence must now be reckoned with
Cuba is a ship loaded with lumber: the waves
the people here are saying; and everywhere men
of good feeling should say most cordially, well
done CUba.'
But while we rejoice that Cuba has escaped
until now the extreme forms Of distress that
threatened her. We must not share the error OF
the oyerconhdent. which can lead TO nothing
but confusion. Between July and the second
week In October there were ffty-one failures
actually reported among merchants OF the
country. though in the city of Havana itself the
optirnists would point out only one disaster to
an important business house. In the year end
ing June go 1902 there were 123 failures;
whereas In the year ending June 80 1901 there
had been only twenty-seven. Such rate OF in
crease prompts further inquiry. and further In
quiry diseloses most unsatisfactory conditions
The characteristic credit system has been still
further extended. No genuine business activity
on substantial basis exists. but the con-
trary. more. perhaps. than ever before In the
r'r-ory of the island borrowed money. obtained
ruinous rates. sustains the little activity that
appears upon the surface The people OF the
as the inhabitants of fertile agricultural re-
gions ever become in time of peace.
What then, do the optimists bring forward
as proof that the country can weather the pres
ent financial crisis, though reciprocity be de-
MED? They depend chiefly upon a statement
Of the Secretary of Finance, showing the move
ment of funds in the general treasury during the
months of May, June July. August and Sep
tember. From this statement It appears that
the governments receipts and expenditures have
been follows:
May 2o 70 81.