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× Monument erected at this place to Columbus, where he first landed November 19, 1493.

resources, and the people very poor, a period of financial distress followed, and in 1812 the usual expedient of governments without sufficient gold or silver money was resorted to, the issue of paper money. But this depreciated so rapidly that a silver peso was soon worth 10 pesos in paper, so that in 1815 the retirement of the paper peso was ordered. About this time the island was greatly benefited by the revolutions in Santo Domingo and the Spanish-American colonies, from which many Spaniards emigrated to Porto Rico, bringing with them capital, industry, and a knowledge of the cultivation of sugar and coffee.

At the date of the American occupation the system of taxes, duties, etc., was practically the same as in Cuba; but, in strong contrast to the disposition made of the Cuban revenues, those of Porto Rico were expended in the island, and, with but few exceptions, no funds were sent to Spain except by way of loans to the Spanish Government. Again, the financial management was such that no insular debt existed, nor were the municipalities allowed to incur debts or to make loans except to meet their obligations to the insular treasury.1

From 1850 to 1890 the revenues and expenditures, every tenth year, were as follows:

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In the year 1897-98 the budget covered an estimated income of 5,157,200 pesos and an expenditure aggregating 4,754,042.19 pesos. In the year 1898-99 the estimated income was 5,107,092.89 pesos, and the expenditures 4,781,920.20 pesos.

But, notwithstanding the favorable financial condition of the municipalities and the surplus in the insular treasury, property owners throughout the island were greatly embarrassed, as appears from the following statistics taken from the report of Brig. Gen. George W. Davis, Military Governor of Porto Rico, September 5, 1899. In 1897 the wealth of the island was estimated at $150,000,000, the total declared value of the city and country property being $28,867,928.79, while the mortgage indebtedness of the latter was $18,610,086.17, or 64 per cent. Other indebtedness, General Davis reports, would no doubt raise this amount to $50,000,000, or one-third of the total wealth of the island. The rate of interest charged on mortgages was, on a large part of the loans, from 1 to over 24 per cent per annum, while on $6,000,000 the rate was not specified, but probably exceeded the

above rate.

1 The total municipal indebtedness of Porto Rico does not exceed $1,000,000, The peso was worth 60 cents United States money.

8490-00-2

The state of the laboring classes was usually that of extreme destitution, which, with the advent of the hurricane of Aug. 8, 1898, resulted in famine and distressing want, upward of 250,000 indigents being fed by the Government.

The present economic condition of Porto Rico has been so fully and intelligently presented by General Davis in his several reports published during the past year that no further comments on this subject are necessary.

Although the government for three hundred and fifty years was entirely in the hands of Spaniards to the exclusion of native Porto Ricans, and there was practically the same system of laws and taxation as in Cuba, and the same, or even greater, neglect of public education, yet the internal condition of the two islands differed widely, as a very brief examination will show. In Cuba great discontent was manifest among the natives, while in Porto Rico, except on one or two occasions, perfect tranquillity prevailed. This was probably due, in great measure, to the attitude of the mother country, which was more mild and conciliatory toward Porto Rico than toward Cuba, to the comparatively small expenditures in behalf of the insular government, the absence of an insular debt, and of periodical assessments in behalf of the Spanish treasury, and the greater prevalence of free labor as compared with the slave labor of Cuba. Again, the character of Porto Rican emigration from Spain was quite different, being chiefly Catalans and Biscayans, from the Basque country, who went to remain, and who were devoted to the monarchy and the church, with a corresponding indifference toward liberal political principles, while Spanish emigrants to Cuba were largely Castilians, Andalusians, and Asturians, who had no intention of remaining in the island, and had, therefore, but little interest in its material progress and government. The latter statement, made in 1876 by the honorable Caleb Cushing, American minister to Spain, is largely borne out by the agricultural statistics of the censuses of Cuba and Porto Rico just completed. While in Cuba the proportion of farm owners to the whole number of farms is but 28 per cent, in Porto Rico it is 93 per cent. On the other hand, the proportion of the cultivated area owned by occupants is but 43.5 per cent in Cuba, while in Porto Rico it is 91 per cent. In other words, a large proportion of the cultivated area of Cuba is in the hands of comparatively few landlords, some of whom reside out of the island, while in Porto Rico large numbers of the rural population own their homes and are permanent residents.

Finally, the small size of Porto Rico and the presence of the Spanish garrisons and an organized militia were no doubt potent and peaceful

1 According to the census of 1872, the proportion of slaves to the total population was 5.1 per cent, while in Cuba it was 27.8 per cent.

influences, and effectually suppressed any disposition on the part of the natives to rebel against the established authorities, if, in fact, such feelings prevailed. That some discontent existed among them in 1897-98, as the result either of their sympathy for the Cubans or of a desire for home rule, there is but little doubt. At all events, the troops of the American Army received from all classes of natives in all parts of the island occupied by them a spontaneous and enthusiastic welcome as deliverers and friends.

GOVERNMENT.

Porto Rico was founded and governed practically on the same plan as other Spanish colonial possessions, a full account of which will be found in the report of the census of Cuba just published.

For many years the island was of so little importance that its government was intrusted to officers of subordinate rank in the Spanish army; in fact, it was little more than a military post. (See Appendix V for list of Governors.)

With the increase in population and the development of its resources, the office of Governor came to be filled by a general officer with the title of Captain-General. As in Cuba, the Governor was supreme in military affairs, and practically so in civil affairs, being president of the royal audience, or supreme court, and of all other tribunals, although for the decision of legal questions he had a legal adviser appointed by the Crown, whose opinions he might or might not accept.

In 1825, in consequence of the revolutions in South America, the Captain-General was clothed with extraordinary powers, very much as in Cuba, but it is said they were never used to oppress the people. Until 1813 the intendancy (receipts and disbursements of the revenues) was vested in the Governor, but in that year it was placed under the control of an intendant appointed by the Crown. He was assisted by a secretary and a number of clerks, but could not order the disbursement of funds without the knowledge and consent of two chief officers appointed by the King, who had each a key to the treasury chest, and who could reject three times any order for the payment of money which they considered irregular or unjust. After that they were obliged to comply with the order, but could file a protest for their own protection. Of course this regulation, like all others, was for the ordinary transaction of business, the Captain-General having supreme control over the funds as well as over all parts of the machinery of government and its agents.

For the immediate supervision over police and municipal affairs there was the cabildo, consisting of two boards, each composed of two alcaldes, two regidores, and one sindico. Besides the cabildo, there were the ecclesiastical tribunal, the naval tribunal, and the consulado.

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