The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-03
THE PROPOSED PORTO RICAN
LOAN.

WASHINGTON. March News despat ches
from Porto Rico report that the House OF
/ Delegates has passed by unanimous vote,
a bill authorizing an insular loan OF s. ,oO0,-
900 for public improvements. IL IL also
stated that the Executive Council favors
the bill
Nominaly the proceeds Of this loan. il
il is effected are to be devoted to public
improvements. road building, bridge con-
struction and similar enterprises. But the
bill also provides that out OF "unspent
improvement funds loans may be made
20 distressed agriculturists From the dis
cussion in the press Of the island. continued
now for many months, IL Is a fair inference
that the real purpose OF the loan is its use
along tho line Of the incidental rather than
that Of the main proposition. II this is
the fact, as it doubtless is an interesting
situation is developed.
Out of all the available information re-
garding the island one fact stands out
clearly That is that the economic situa-
ton is deplorable. The proposed method
OF relieving it is, however, decidedly open
10 question. The industry most seriously
affected is coffee, the most important in
Porto Rico. For years it has been the IN
dustry upon y ioh the great majority OF the
islanders have been dependent for their
livelihood. It's present depression is due
TO the loss OF the markets in which the berry
was sold before the American occupation.
The political change cut of the former
outlet and provided no substitute. The
complaint over since has been that the dis
tress in the island is due to the lack of mar
ket in which the berry could be sold at prices
which would pay producers even the cost
of production This fact makes il quite
difficult to sec just how the situation is to
be relieved by loaning money to planters to
enable them to increase their production,
The evident need of the island is profitable
market rather than an increase OF product
which must be sold at loss or, at best, at
a margin OF profit which does not, from
business point Of view. justify a continue
ton Of the enterprise.
The same proposition applies in a general
way TO the expenditure OF the proceeds
Of loan for the purpose OF improving
interior transportation, unless improved
road systems would so reduce the cost OF
transportation as TO bring the producing
cost Of coffee to figure which would show
a profit on It's production and its delivery at
shipping points. The present system in
wolves the use Of pack mules. and TO some
extent at least this must continue in any
case. system of highways which would
reach all plantations directly would be
quite out of the question. Very good roads,
serving as main arteries, already reach and
traverse the most important coffee dis
tricts. Tho extension Of that system TO
individual plantations Mt public cost is a
measure Of doubtful economic wisdom and
Of doubtful political soundness
The plan Of borrowing money to save
decadent industry along the lines proposed
is open TO question. No doubt the planters
most Of whom by tho way, are Spaniards
and not Porto Ricans. would be glad to
borrow. particularly if they are bankrupt.
But If their credit is so exhausted that they
cannot borrow from those whose business
is money lending. the security which they
can offer for a loan from the Government
would at its best seem to be Of doubtful
vnlue.
It was reported few days ago that it had
been decided to send to this country a com
mercial agent whose work should he the
advancement of Porto Rioo's commercial
interests That is q step in the right di-
roction, provided the agent be properly
qualified for his position. In 1897, the year
before the war. the island produced little
more than 10000 900 pounds OF coffee
This il about per cent. Of theQuantity con-
sumed in the United States last year. Given
a market, the output of the Porto Rican
berry might be doubled in about fifteen
years At that time 100 900 900 pounds will
probably be little IL at all above per cent.
Of the American consumption The quality
of the berry should give n place in our
markets for all that can be produced,
Backed with n suitable sum of money for
advertising purposes, competent com
mercial agent should he able to place in
American coffee pots inside Of two years
every pound that the island can grow. at
prices remunerative to growers and TO their
employees.
The island can get along without debt
Her salvation from the economic bow-wows
Is in a market for her coffee. The market is
here, and it is susceptible Of development |
along a lines Of modern business methods. |
The Sun advised this course some months
ago, and it still appears a sounder policy
than the acquisition Of debt for the pur
pose of enabling planters to produce coffee |
which they must sell at improbable prices |
If thrY can sell IL at all