Evening star., 1902-08-16
CUBAN RECIPROCITY
Discussion of the Probable
Treaty Terms.
THE ISLAND CONGRESS
1T HAS ACTED WITH CONSIDER
ABLE CoNSERVATIsM.
1t Wants an Agreement Which Will
Be Equitable and Funnel
Shaped Tariff.

reciprocity have met the actual terms of
the treaty proposed are likely to arouse
interest 1t will take long time to clear
away the belief which obtains in Cuba that
the delay in making trade concessions was
not deliberate attempt to force annexa-
ton through ruin. Yet when the legisla-
tion is actually in process the resentment
over this course will gradually disappear
though the Cubans never will understand
why if reciprocity could be obtained in
November it could not have been had in
April or June.
The strain is still very great and not
much faith IS yet entertained in the United
States keeping it's pledges, but as the
weeks go by a ray of hope is seen where
in June everything was black 1t may be
that the proposed loans to the amount of
Sib,oOOGO will be given a fresh start in the
cuban congress as a reminder to this coun-
try that the crisis is not past and will not
be passed until the Senate is actually in
extra session.
The loss on this years sugar crop still
weighs heavily on the island 1t fell 1900
tons short of what would have been mar
keted under reciprocity, and that is
pretty heaVy drain on the resources. 1t
is also one reason why the balance of
trade is still heavily against Cuba.
Moral and Material Gain.
When reciprocity actually comes, assum-
ing that President Roosevelt is right when
he says it is as sure as fate, there will
be a moral gain to the United States and
a material gain to both countries. If the
treaty is negotiated and ratified in No
vember this will insure the grinding and
marketing of the full seasons crop. Com
monty, very little of the cane is ground in
December, but if the planters are able to
get credit most of the sugar mills can be
Kept busy from January till May.
reciprocity will insure credit for the
planters. 1t will also result in fresh Amer
lean capital going in. A pretty steady
movement of this kind had set in a year
ago and was one of the means of keeping
the island from reaching the lowest depth
of industrial depression. But when the
savage attacks were made in Congress on
American investments in Cuba the in
vestors halted. Now they will wait to
make sure that they are not to be treated
as criminals for investing their capital in
the country which is so closely allied to
the United States commercially and po-
litcally.
1t does not seem to be understood that
the present Cuban tariff is to undergo
changes before ii becomes the basis Of reci-
proctty. As it stands now it is a very good
tariff for the United States. remarkably
good one, but not quite so good for Cuba
1t was made under the military authority
and the producers and manufacturers of
this country always were kept in mind The
oId Spanish rates were swept away as bear
ing too heavily on the people and the new
schedules were formed with a view to talk
ing some of the burdens off consumption.
They did this to some extent. yet it was
found that in many instances where the
duties on articles of prime necessity were
reduced that the middle men and the for
lSn exporters divided the reduction for the
consumer still was compelled to paw the
same retail price. This was a phenomenon
which puzzled Colonel Bliss, the collector
OF customs. One explanation given was
[
conservative that the importers and whole
saIers by agreement among themselves sim
ply kept the prices up. This was true.
A Tariff Commission.
Last year commission was appointed by
General Wood as military governor to pre-
pare new Cuban tariff. 1t was composed
OF representatives of the military authori-
ties and of committee from the Havana
business men and importers. Rafael Mon
toro. who was secretary of the treasurv
during the brief period of autonomy. was
the leading Cuban member. With Collector
Bliss was associated General Ramon q
W Hllams. Tor 50 many years the consul
general Of the United States in Cuba Gem
eral Williams during his twenty wears of
ONCE had written $50 consular reDorts on
tne economic conditions of the island and
the bllnd policy of Spain in throttling COM
merce and industry instead Of encoura gine
1t. He was therefore pretty well qualified
to handle the subjects
Ihls Joint commission formulated the ont
line OF a new tariff. but 1t met with one
grave obstacle. About everything thai
could be done for the United States nro
ducers and manufacturers already had been
done, but nothing had been done for Cuba
ana nothing could be done because the mill
tary authorities could not lower the duties
on cuban sugar, tobacco and fruits imnort
ed into the United States
Ostenslbly the United States was on the
a frTfth ntl
ed the markets of Cuba, for there We NJ
discriminating rates and no preferentiaJ
schedules. Actually the duties were verv
low on the chief articles of exports from
thls country, such as foodstuffs and mani,
factured articles. Even the Schedules w.
mace TO mt conditions. England and Car
many were ahead of the United StateS =,
cotto1s ana complaint was made that th.s
ttH OF the ciassiftcations. These
were obligingly changed
The Expected Did Not Happen
Manufacturers of sugar machinery had
thousht that at once they would find .
great demand for new machinery to replace
that destroyed during the war. The do
tnahd dld not come, and they put the
piahe on the tariff, but this was not the
cause of the small importations Tn snito
oi tle obstruction caused during the insur
fectlon there were enough sugar mills to
grind a crop of 1,0000O0 tons. because he
ICFe tne revolution broke out the building
OF mills had gone ahead of the productio5
OF cane. When peace came the planters
used every dollar they could get in re-
planting their fields instead of in renIac-
ing machinery. This was why there was
SO small a market for American sugar ma
enlhery manufacturers, but they failed to
recognize this economic truth
IN the sessions of the joint Cuban tariff
commission a strong protection sentiment
was shown The Cuban members wantad
rates which We're purposely prohibitiye ON
many articles in order to encourage home
production. The general Instructions had
been to frame series of schedules which
would insure customs income of $4,000.
Voo yearly but the experiment was not
made, for when both parties recogniged
that there was no advantage for Cuba in
making new schedules without the pros
poet OF having new schedules made for
Cuban products in the American markets
1t was thought good time to quit The
brief statement was made that In view of
the early establishment of Cuban independ-
ence, with government which would he