The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-05-07

tive to those engaged in It, and sugar in
dustry which Ii, taken as q whole, clear ly
| improbable
During the period OF Intervention. the
supreme importance OF providing some
remedy for Cubas Industrial evils appea RI
to have been realized by all except those
In whose hands lay the power to relieve
them, and the Cubans to whom the dollars
belonged were obliged to stand helplessly
by while large amounts which might have
been used for their substantial benefit
were wasted In extravagant processes OF
administration. When control over Cuba's
finances came into Cuban hands, the earliest
consideration was given to industrial estab-
lishment. In the beginning, their hands
were tied. Their revenues were an un-
known and an uncertain quantity. Their
necessary expenses were almost equally
unknown.
In his first message to the Cuban Congress,
President Estrada Palma emphasized the
importance Of immediate attention to the
agricultural needs Of the island. He chose
as his Secretary OF Agriculture Senior Emilio
Terry, q prominent planter. The Cuban
! Congress became at once an arena OF ami
mated debate concerning ways and means
to set the industries of the island upon a
better footing. Bills Of many kinds were
introduced and schemes of all sorts were
presented. Much OF all this was thoroughly
impracticable and some OF it was decidedly
visionary. The essential feature Of it was
the earnestness and the seriousness with
which the new Government turned to that
which 1t recognized as a vital issue, too
long neglected by those who had ruled
over them, both Spaniard and American:
Cuba Congress realized that nothing could
be done without money. They had none.
The cash balance Of $4,000. left by tho
outgoing Administration, was only about
| one-half the amount required to cover
contracts and obligations incurred by the
Military Government. The new Govern
| ment really started in debt. notwithstanding
the statement made by Gen. Wood to Presi-
| dent Estrada Palma on May 20, 1902.
By conducting its Government upon a
| basis Of the utmost economy, the new
| Government hoped that it's revenues would
be sufficient to meet tho necessary ex-
penses Of administration and to continue
the pace set by the intervening Government
in the matters OF sanitation and education.
1t realized that any departure from the
81 andard 80 set would be signal for attack
on the part Of that group which can see
nothing worthy in Cuban nature. 1t real
lied that Cuba would be promptly charged
| with reversion to dirt and ignorance. The
problem Of finance was discussed for weeks.
| Urgent proposals on the part Of some for
! the establishment Of a national lottery, as
| source OF revenue. were stubbornly re-
jected by the ma jority. Secretary Terry
busted himself diligently and persistently
in devising schemes for spending the money
which did not exist. He proposed revision
of the tariff rates on cattle imported for
ranch and breeding purposes. He proposed
the distribution Of sum Of money to sugar
planters based upon the quantity produced
on each plantation. The sum OF $4,000
was voted for the establishment of an
agricultural school and experiment station.
This was a vastly wiser use of the money,
under the circumst ances, than was the
construction Of that SIS 900 school building
in Santiago, to the glory and honor Of the
Military Governor.
Senior Terry became tired Of beating
tho air and resigned his portfolio. That
occurred six months ago, and the post
remains untitled because there is still
no money which can be used by such
department. Meanwhile. the Cuban Con-
gress discussed the question Of a national
loan. On Aug. IL, 1902, the Cuban Senate
passed bill authorizing the Executive
to negotiate a loan of n, 900 900 at mini
mum rate Of 90 per cent. of the value there
of, payable in a period not exceeding thirty
years, and at maximum rate OF interest
of per cent" The purpose Of this fund
was the relief and assistance Of Cuban
planters. Beyond that definite purpose
the idea was somewhat vague.
The mergence OF this special loan propo-
sition into the large plan of a national loan
Of a35, 900 900 followed during the winter
session. The bill providing for the larger
loan passed both houses and was signed
by President Estrada Palma on Feb. 20,
1903 But it is one thing to pass such a
bill and quite another to put it into effect
by raising the cash. This has not yet
been done. and the prospect for any plac-
ing of the loan at an early day is not at
present particularly encouraging. Some
who might have taken it were not salts
fed with the basis provided for its liqui-
dation and the payment of the interest.
Others might have taken a smaller loan,
but felt that So, 900 900 was too much Of
q debt for the island to carry under the
circumstances. Moreover. the conditions
Of the money market are not Immediately
favorable for placing loans Of that amount.
1t is now quite probable that Cuba must
wait.
The proposed loan was to be divided
into approximate sums for specific pur-
poses. About ss,0OO,ooO was called for to
meet bonds issued and debts contracted
during the war. From $40 900 900 to s2s =
100000 was to be used to pay the soldiers
of the insurgent army. The sum of 81 Co.,
600 was to be used for the benefit Of the
islands industries. and similar sum was
allowed for a discount on the bonds. COM
missions, DC. While the wisdom of issuing
so large loan has been doubted by some
and the wisdom Of some of it's proposed
uses has been called in question by
others, the fact remains that the island.
under any conditions OF reasonable pros
perity. is amply able to carry it. and it
il equally true that it would mean the
financial and industrial salvation Of the
island.
Undoubtedly. the broad proposition
stands that it is better for individuals and
for nations to keep out Of debt IL they can,
hut Cuba nd bor