New-York tribune., 1909-05-24
4 BAD OUTLOOK IN CUBA
FINANCIAL CRISIS NEAR.
Large Deficit Erpected-Liber0S
Factions Unable to Il gree.

Havana May 1s.-Financal problems constitute
the gravest feature Of anxiety on the part OIL the
Cuban government. and with the protracted delay
in the presentation of the budget for the coming
wear the general feeling of uncertainty and lack
of confidence becomes accentuated Whether the
government in view of its enormously increased
expenses due In great to the cost of equip
meut and pay of the new permanent army, the
cost of the ma onal Legislature and the greatly in
creased number of civil employees. arising from
political pressure for offices. can meet It's ooIsa-
tons out of the ordinary sources of revenue Is lhe
question asked all sides
While there is no doubt that President Gomez ls
fully alive 10 the seriousness of the situation ana
Is doing everything IN his power 10 effect reduc-
tions in the cost of all departments. it is feared
that political exgencies will compel him to reIralh
from insisting upon retrenchment on the scale tat
is believed to be absolutely necessary
Congress has recently shown a disposition to be
impatient the delay in the presentation OF the
budget. and few days resolution was
offered the Senate to demand from the President
a reason for his failure to present the estimates
The motion failed to pass being objected TO on
the ground that it disrespectful to the Chief
Executive.
SHRINKAGE IN THE REVENUES.
Governor Magoon's budget for the current fiscal
year ended June 80 was $24 2500o0 and the estl-
mates of revenue a little more than $21."nVo
Careful estimates of the revenue for the coming
year indicate total of probably not more than
S24. .000 CO. exclusive of the taxes available for the
payment of the interest and sinking fund OF the
S35 10000 loan for the payment of the Army of the
Revolution. The sources of revenue applicable 10
this purpose always have been, and continue TO be.
ample, with considerable surplus.
Estimates OF the expenses of the government
for the coming year place the total not less
than 100000 and by some authorities as high
$4N0mO00, indicating under the most favorable
conditions a serious deficit President Gomez Is
known 10 be vehemently opposed to burdening the
country with additional issue Of bonds. and
one of his first acts to decide against the
issue of the loan of $15000000 authorized by Gov
for the sewering and paving of Havana and the
waterworks at Cienfuegos. The President said
that the ordinary revenues of the country would
prove ample to meet these obligations.
Since then contractors engaged on government
work have been clamoring in vain for payment.
and everywhere work has either been suspended
or reduced to the smallest proportions Inability
OF the contractors to get money from the govern
ment has made It impossible for them to pay
their workmen who find difficulty in obtaining
credit for food and other necessities from Coun-
try merchants. and this has resulted in general
stagnation of business throughout the island and
has gravey accentuated the general feeling of un-
certainty.
IMPORTS SHOW LARGE DECREASES.
Importations through the custom house have de
clined materially from those of last year and the
year before, and consist in far greater proper
Merchants in general are indisposed to import
more than is absolutely essential TO their current
needs. While there is scarcity of money in the
banks the demand for loans, at least for those
on which ample security IS offered, continues to
be small
Oddly enough while the necessity for stringent
economy is apparent. the government shows in
some directions strong tendency toward extrava-
gance, as, for instance, in the proposed exchange
Of the lands Of the old arsenal for the passenger
T--g&a
Of Havana on the Prado. on which it proposed to
erect q Presidential palace to replace the
present fine old palace of the Spanish captains
general. 4 Hall Of Representatives TO replace
the fine building downtown. in course of construc-
ton for three years, and only completed in time for
the first Congress. and other public edifces at a
total cost of nearly S5,G0l000. There is also the
proposal 10 appropriate $4,000 for the purchase of
an official residence for the Cuban Minister at
Washington.
LITTLE UNITY AMONG LIBERALS.
Another contributing feature the feeling of IN
certainty bearing so heavily on business
enterprise is the continued failure of the Miguel
ista and Zayista factions of the dominant Liberal
party TO agree on terms of complete fusion. Re
Gently Zayista faction complained to the Presi-
dent that the members OF the Cabinet were not
giving them a proper proportion Of offices, and at a
subsequent conference ct the palace the President
promised to investigate and see that their claims
were protected. The pressure brought to bear on
the President for offices is well eXemplifed in the
case of Colonel Isidro Acea, a negro, who was re
leased under the terms of the general amnesty
from the Preside. where he was serving a cumu-
Iative sentence of nnetytwo years and soon after
ward was appointed detective in the Department
of the Interior a salary of 1920 year
Congress after being in session for more than
three months, has accomplished little useful legls-
iation IT'S time being frittered away in flights OF
oratory and the discussion of trivial measures or
;hose having merely partisan bearing Governor
Magoon's order, designed to compel the attendance
of members under the penalty of loss of salary dur
ing absence has been ignored since the first ses-
sion and more than once adjournment has been
compelled by the lack of a quorum.