BoletiÌn mercantil de Puerto Rico. (San Juan, P.R.) 18??-1918, 1902-01-10
Porto Rican Finance.
Discussion Oh C0nditi0nt Under Spanish
and american Control.

Washington, December 30.-The Amer
ican Economic Association, at its session
this afternoon, discussed the topic Of "Public
Finance, the first paper being by Prof.
Thomas y. Adams of the University OF
Wisconsin, lately OF the office Of the Treas
urer of Porto Rico, on stPorto Ricans Fin.
ance Under the Spanish and American
Govsrnments". The discussion was led by
Prof. Jacob 81. Hollander Of Johns Hopkins
University, Treasurer of Porto Rico. In
bis paper Professor Adams said:
The distinguishing characteristic Of the
Spanish financial system of Porto Rico was
the totol absence of home rule. Financial
legislation was dictated almost wholly from
Madrid where the Cortes, and more ire.
quently the Colonial Office itself fixed the
Porto Rican budgets, passed tax laws, and
prescribed the minute of financial admin
Istratlon in Porto Rico. The interesting
feature of Porto Rican expenditure under
the Spanish system, s0as the appropriations
for what the Spanish call the compulsory
expenses Of sovereignty. The military est.
ablishment, the naval station, and the State
Church in Porto Rico were maintained by
the Porto Rlcans themselves, who were
also required to pay 16 per cent. of the
expenses of the Colonial Office at Madrid
These expenditures, taken together, con-
stituted 46 per cent. of the total insular
expenditures have completely disappeared
under the American regime.
The Spanish system of taxation was
married. by extreme comple1ity and by an
undue emphasis upon indirect taxes, upon
the customS taxes in particular. Porto
Rico had no debt. On the contrary, a email
annual surplus was usually secured. This
surplus, from time to time, was borrowed
by the Spanish Government, used in the
settlement Of Cuban difficulties, and called
it Cuban debt. OF more than four million
dollars so borrowed aDout two million and
halt, still remain unpaid.
American control has meant the introdue.
on of measure of financial autonomy in
the form Of native legislative chamber,
elected by what is practically universa al
suffrage; the abolition of the expenditures
tor military, religious, and moral establish.
menf; and the simplification of the system
Of taxation. Porto Rico has been given q
native House of Delegates which id CON-
pany with the upper legislative house-ap.
pointed by the President of che United
Statef--vOtes appropriations and determines
the means by which the insular revenues
are to be raised. Congress has shown no
disposition to interfere in the details OF
financial administration, but, on the con-
trary, has shown exceptional wisdom and
generosity in its legislation up to this date.
POr.o Rico under present laws, for instance,
is allowed to retain the customs collections
in the island and to frame and administer
its own internal revenue system.
Expenditures under the American Gov
erement are marked by the absence of sp-
for church, army, ard navy,
and By immense increase in the amounts
devoted to schools, charities, prisons, and
public health. The Spanish system OF tar.
alton has been completely abolished, and .
much simpler system introduced in which
greater stress is laid upon direct taxes and
sumptnAry e1cises on alcoholics and tobsc
COS. Under the American system, the pro
psrty tar will yield about 20 per cent. Of
the total revenues; the txciss tazes upon rum
and tobacco about 50 per cent; the eussoms |
duties about 573 per cent; The inheritance |
lsx and miscellaneous sources, "a per cent.
In eonclaslons however, 10 may Be SAID |
hat beth syslsms give iAr more powG 10 |
he sdmiaislrstor than Ne are sceussomsd |
10 n tie Unltsd States, snd that he pro-
psrty q Porto Rico andsr American a
1nd<z nPsHssk rais viii ioE long period /
l<p<nd uPon The quality q men senE from
America 10 Saids and rule. Up - ths
'rss<al tmes mea a sxesptional character
I'D eetilliss have besa sppoIafst; msa q /
.1ae4zi1ns msa q a1aLFA men vita ilsaIs.
We Aaxs us1cah1zdIy pas eur k<sr kos lsss.
nssk. Iks 49, wlll h - p~sssssrs a ws
'2ss hsszs.