system of taxation would yield a revenue of $15 per head, or upward of $3,000,000, and this, if honestly and judiciously collected and expended, would probably be twice the actual net revenue now enjoyed by the city. The collection of taxes of all kinds is now farmed out on a basis of five per cent. commission for collection, which is added to the tax. The tax collector states that there are no arrears, but this statement is vigorously disputed. The whole system of taxation is radically different from that used in American cities, and the system has been so long in operation, and is so intertwined with the system of taxation for the Island, that it would probably be unwise to attempt to introduce American methods during the period of military occupation, the duration of which is so uncertain. It would seem that all that can be done is to make an honest collection, substantially on the basis of existing laws, increasing such items as in the judgment of the military governor can stand an increase without hardship. Such arbitrary changes would create no surprise, as the population has for generations been accustomed to having them made by the Spanish Governor-General." Arbitrary changes are the one thing the military authorities should avoid in Cuba, for therein lies our greatest danger with these people. The fact that the people were accustomed to such action under Spanish rule makes them far more sensitive to such action than they otherwise would have been. Note the flutter in Santiago because of the order to send the custom-house funds to Havana, a perfectly righteous order in itself, but promulgated in too arbitrary a manner. Notwithstanding this it created something akin to a panic in Santiago, principally because it reminded the people of that province of the high-handed Spanish way of doing things. It is not advisable to increase either the debt or revenue of Havana at present, but, in the opinion of the author, it would be far wiser to keep the total revenues about as they now exist. The sources of revenue may be changed, however, to great advantage; increased in some directions, reduced in others. For example, ordinances should be passed compelling the owners of all houses not having water supply (and, according to General Greene, there are about 18,000 of these) to put in a water supply immediately. If this were done the water tax could be spread over a larger number of population, the individual taxes reduced, and yet the revenue from this source measurably increased. A good water-works, like that of Havana, should be made self-sustaining, and under proper management the profits from this department could easily be made sufficient to pay all the expenses, and at the same time to take care of the interest and sinking fund of the waterworks bonds. From the American point of view the most unwise tax in Havana is that which has made the slaughterhouses of that city a constant source of scandal. To-day every kilogram of meat killed and used costs the people of Havana 4 cents, and thus the cost of living of the poorer classes is greatly increased; yet the revenues of the slaughter-house are pledged to pay the interest on the water-works bonds, when the water-works themselves are ample security for this purpose. The real estate of the city should be reassessed fairly and justly, and a tax-rate arranged which would relieve many of the professions and industries of unnecessary taxation. It would seem from a glance at the budget of Havana that, if this were done, and the petty, annoying taxes abolished, sufficient revenue could easily be raised for all legitimate purposes. As a matter of fact, a very large proportion of the taxes collected for municipal purposes in Havana has been diverted from legitimate channels only to find its way into the pockets of those who have had charge of municipal affairs. According to the evidence of several witnesses who appeared before the author in Havana, a large amount of money was exacted from the people of the city by corruption, in the way of petty fines paid direct to officials, and not into the treasury of the state, and also large sums of money in the shape of payment for indulgences, much in the same manner as the Tammany officials exact tribute from those conducting illegitimate business or those engaged in breaking the ordinances of the city. Relief from this sort of exaction has been at once felt in Havana, but will not be fully appreciated until the present Governor of the city is able to ferret out and stop these several forms of imposition. CHAPTER XIII BANKS AND CURRENCY HE heading of this chapter is somewhat misleading, for, strictly speaking, Cuba has neither banks nor currency —that is, of her own. The basis of the money which circulated in Cuba before the military occupation of the United States was Spanish gold, principally the centen, or twentyfive-peseta piece, the value of which had been inflated to $5.30 by royal decree. Owing to the scarcity of this coin and to the fear that it might leave the Island, in 1893 the French louis, or twenty-franc piece was similarly inflated by royal decree and made legal tender in Cuba at $4.24. The silver coins of Cuba were of Spanish origin: the peso, or dollar, the medio peso, or half dollar, the peseta, twentycent piece, the real, or dime, and the medio real, corresponding to our nickel. There are also the usual bronze coins. The silver money of Cuba has for some time been worth only its market value, and that subject to daily changes. At various periods in the history of Cuba the Spanish Government at Madrid has attempted to force bank bills on the people of Cuba, and such attempts, as a rule, have ended disastrously to the people of the Island. The Spanish Bank of the Island of Cuba, a semi-official institution, whose governor was appointed by the Spanish Government, has also at times issued bank bills, and to the credit of this institution they have always been redeemed ultimately. As much cannot be said of the Government, whose repudiated bank bills, aggregating about $17,000,000, are at this moment only worth six or seven cents on the dollar. |