The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1915-03-16
PORTO RICO HARD
HIT BY THE TARIFF

1ager OF fOrtO hlc0, VINO was appoint
ed by President Wilson in the latter
part of 1913, has been made public at
Washington. The outstanding feature
of the report is the ill effect upon the
revenues and the prosperity of the
island caused by the reduction of the
sugar tariff The very first sentence
o the governors report announces
that the peiod which it covers "has
been one of financial difficulty and
economic readjustment. On this SUBJ
ject he continues:
Amongst the general causes for
business disturbance, those that affect
ed Porto Rico most were the new tar
| in law of the United States and the
general recession in business activity
which seemed to be felt over the civil
ized world.
But far more important to the ex-
ternal commerce and general economic
conditions of the island were the
changes that have taken place in the
sugar industry, which holds by far the
most commanding position in the in
dustrial life of Porto Rico. The seri-
Gus decline in this industry which
showed itself in the figures and tables
of last years report has continued in
still more marked degree this year.
While this decline was not wholly due
to changes, present and prospective, in
the rates of duty, it nevertheless re-
fected itself very seriously in the fig
ures of external commerce and general
condition of trade for this immediate
year.
Gin external commerce there has
been a decrease in the total value of
exports of $6,000,803 from the figures
of last year, which is almost exactly
accounted for by the decrease in ex-
ports of sugar, this having amount ID
to $6,378,S23. This decrease in value
of sugar exports was produced by
sharp decline both in quantity, which
was about $4,000 tons less than last
year, and in price, which was $6.43 per
ton less than the year previous. Out
side of sugar there was a slight in
crease of about $37s,000 in the value
of exports Exports to the United
States reflected quite accurately the
decline in sugar, falling off $6,115, ,443.
The total exports were $43, 1927
tTnternal business, while slowly ad-
justing itself TO the changes made
necessary in the sugar industry, has
naturally assumed conservative and
waiting attitude which has prevented
the inauguration of new enterprises.
The dread of the possible results of
the free-sugar provision that is i'm
pending under the present tariff law
has tended to check progress and de-
volepment in other lines of business
interviewer with this industry; but the
situation has demonstrated the general
soundness of the actual business of
the island for while progress has been
checked, only few over-extended and
badly managed enterprises have actu-
ally come to grief"
The treasurer Is report, which is pup
lished as an appendix to that of the
governor, shows in some detail the
causes of the 90 financial erisis'' con
fronting the insular government to
which Governor Yager refers. The
treasurer points out that, due TO the
generally unsettled business conditions
of the island attributable in a large
degree to the present reduction and
prospective removal of the tariff on
sugar, it soon became apparent that
the increase in revenues was going to
be far short of the increased expendi-
lures The report shows that fol-
lowing the reduction in duties by the
| Underwood tariff law the customs
revenues of the island which had been
averaging $4,000 to 100000 a month
5000 a month during the first half
of 1914 The failure of the revenues
to meet the expenditures of the insu-
lar government necessitated a bond
issue of $1,000,000. The continuation
of existing conditions will make it
necessary to curtail heavily the ex-
penditures for education and internal
improvements in the island
The important part played by the
sugar industry in the material welfare
of Porto Rico is shown by the figures
OF exports. Out of a total valuation
of exports amounting to 100000
during the fiscal year ending June 30,
1914, sugar alone constituted over
500, 100000 This was the lowest sum
realized for sugar exports in five years.
Under normal conditions sugar eonsti-
tutes two-thirds the total value of all
exports.
A significant sidelight upon condi-
tions in the sugar industry is given
by statement in the report relating
to the sugar experiment station in the
island. This had been maintained by
the Sugar Producers association, but
on account of the depression in the
industry the association found it i'm
possible longer to bear the expense of
its maintenance and turned il over
to the insular government as a gift,
transferring lands and equipment val
ued at more than 100000.
The report diseloses very serious
conditions in Porto Rico and indicates
that, with the final removal of the
tariff on sugar and the crippling of
the sugar industry from which most
of the revenues of the island are de-
rived. directly or indirectly the insu-
lar government as well as the people
ruptey.