“I must congratulate you cordially for the high mission which you have had entrusted to you. I am completely identified in all and with all concerning it; I reserve for a better opportunity giving you my personal views on the matter.... On my side I am working in the same sense; I am doing all I can for the immediate reconstruction of the country; its wounds will heal with the rapid promotion of the work. This is the battle we are now fighting, and all men of good will should join us in our struggle. I avail myself of this opportunity to tender my services.”
The business men and merchants of Havana and other large cities, regardless of nationality, have rendered services of incalculable value to this inquiry, on the ground that the one thing that Cuba wants more than all else is, as General Gomez truly says, that its people should lay down their arms and take up the implements of peace. The Presidents of the Chambers of Commerce of Havana, Cienfuegos, and Santiago have all taken an interest in this work and elaborate reports were prepared by committees appointed especially to aid in gauging the industrial necessities of the Island. A similar report has been prepared for Matanzas.
Whatever may be the shortcomings of this volume on Industrial Cuba, they must not be attributed either to lack of interest on the part of the people of Cuba, or to any failure on their part to give information, especially on all matters relating to foreign commerce. There is, of course, a dearth of statistical information, in consequence of which it has been difficult to work out certain fiscal statements and estimates with the degree of exactitude easily attainable on the same lines at home. The information which has been obtained, however, would seem to leave no room for doubt as to the wisest course for the United States Government to pursue in adjusting Cuban customs duties, in establishing a sound currency, in protecting the savings of the people, in preventing usury, in abolishing onerous and iniquitous taxation, in establishing free schools, in starting new and reviving the old industries of Cuba, in increasing commerce, in improving the sanitary condition of the cities, in distributing labour, and in the general industrial and moral upbuilding of the people.
The present volume touches on all these topics, and endeavours to give the reader a clear and practical idea of the present industrial condition of Cuba. The present chapter aims to present in a concise form a few of the more important problems which the United States Government was called upon to face January 1, 1899, and with which it may have to grapple during the first years of the new century. No attempt is made to forecast the manner of their settlement. It is not, as a rule, wise to worry about how we are to cross a bridge until we get to it. Many Cuban economic problems which at a distance seem to be complicated, will simplify as we come within close range. Once the United States military authorities are in possession, ways and means will suggest themselves to overcome obstacles which now seem almost insurmountable. The most urgent needs of the Island, when it was turned over to our Government, were those briefly discussed in this review of the economic conditions of Cuba.
First among these needs of the Island was a tariff that should bear lightest in directions where the people could least afford the burden of taxation, and heaviest on commodities which the well-to-do and those engaged in large enterprises required. The Spanish tariff was made by Spaniards, for Spain, in the interests of the Spanish. That seems to be the actuating principle of it. On any other theory it was inexplicable. In adopting, July, 1898, for an exigency measure, the rates of duty which Spain levied for her own commodities, the United States acted wisely. These rates, however, were full of inequalities, and were not levied on any sound principle, but on the “heads, Spain wins; tails, Cuba loses” idea which prevailed in the whole fiscal fabric. It was found that the only way to remedy these inequalities, equalise the rates of duties, improve the administration, and reduce the rates of duties on all articles of general consumption, was to frame a practically new tariff. This was done, and the new tariff now in force will undoubtedly do its share in the industrial reconstruction of Cuba. In this tariff it was not thought advisable to make radical changes in the administrative branches, nor to change weights and measures into United States equivalents, because the people of Cuba are accustomed to the metric system. As a rule, all duties in Cuba are levied by the kilo and hundred kilos. United States currency, however, was substituted for the Spanish pesos. This will simplify collection of taxes, as customs duties were collected by Spain in three different classes of currency: gold, silver, and bank notes, all (for the gold coins used in Cuba have fictitious values) fluctuating in value.
The tariff adopted by the United States, when the military forces took charge of the custom-houses, reduced all duties about sixty per cent. on the old Spanish rate, and averages fully two-thirds less than the rates exacted by Spain in Cuban ports during the last five months of its occupancy of the Island. The reasons for these reductions, together with the reasons which led up to the decision of the President to admit cattle and agricultural implements free into Cuban ports in possession of the United States, are fully given in another chapter. Still another chapter will be devoted to an analysis and discussion of the Cuban Budget, in which the effect of the new tariff on the revenue of the country, together with the other sources of revenue, are explained and discussed. It will naturally be asked: With such a large reduction of duties, how does the United States expect to secure revenue for the purpose of administering the government of the Island? There are several answers to this question, and the facts bearing on the subject are given in full in the chapter on the Cuban Budget. The general answer is that by reason of fraudulent classification and smuggling, much of the revenue collected from the people of Cuba never found its way into the treasury of that Island, nor of Spain. The cupidity and rapacity of the Spanish officials in Cuba are beyond conception, and, if one may judge by the reports of the United States customs officials at Santiago, as much revenue will be received from a tariff whose duties are from a half to two thirds less than the Spanish tariff as was received under the iniquitous and exasperating law which has been abolished by the advent of the American forces. As the officials recommending the measure believed, the reduction to a reasonable rate of duty in certain schedules—such, for example, as those relating to machinery and railway supplies—would increase importation, and certainly the revenue would be greater than during the period of prohibitory duties. A railway company naturally hesitated to import a locomotive when the duty was equivalent to the value of the engine. With a revised tariff of twenty-five per cent. ad valorem, it may import two, or four, or even six. In adjusting such schedules, the revenue features alone need be considered, because Cuba has no locomotive works, or any iron or steel industry. The same is true of a variety of other articles.
In all cases where there are home industries in Cuba capable of supplying a manufactured product made by home labour, care was exercised by those who framed this tariff (either by making free the raw material, or by not making a too radical reduction of duty) not to injure their prospects. In so doing, the Administration is only carrying out the policy which has been fruitful in developing the industries of the United States and in securing diversified employment for its labour. If honestly enforced, the new tariff established in Cuba by the United States will yield sufficient revenue, enable Cuba to buy in the cheapest markets of the world, and not compel her to purchase from Spain inferior commodities at a high price. In every section it is a Cuban measure, and in no single case can there be found a section that discriminates in favour of the United States as against any other market. The United States purposes to take its chances for the Cuban trade with the rest of the world. If Cuba can purchase cheaper and better articles on more favourable terms of the United States than of Europe, we shall secure the trade. If not, the Cuban consumer is free to purchase in the markets of the world. In this one act alone, conservative, thoughtful Cubans must realise that they have attained to the commercial freedom which some, not without reason, contend was the real object of the two insurrections. However that may be, Cuba has secured a right which England would never concede to Ireland, namely, a separate revenue system. In granting this economic freedom to her other colonies, England has strengthened their ties to the mother country. With industrial freedom assured, a colonial country may be indifferent to the form of its political government.
Next in importance to the fiscal laws for the revenue of the Island comes the currency question. No country can be permanently prosperous unless its currency is sound and its credit good. Bad financial management of state affairs begets bad credit, and impaired credit is the forerunner of depreciated currency. Although Cuba is afflicted with many kinds of depreciated currency, the established basis is strictly gold, and in any commercial engagement the value is understood to be in Spanish gold, unless there is a specification to the contrary. Indeed, there is something almost pathetic in the manner in which Cuba, though plundered and depleted of her resources and wealth, has never wavered from the gold standard. The business interests of the Island are, as the author found, unanimously in favour of a continued gold basis; for the Cubans have suffered so much from Spain’s various attempts to force upon the people a depreciated currency, both in the form of silver and bank bills, that they want no further experiments with the currency. The Spanish silver money current in the Island is taken at the daily value only, which is fixed, partly by the larger or smaller demand for wages and necessities of the Government to pay troops, but principally by the continually fluctuating value of the Spanish money in the European markets. As this Spanish silver is legal tender in Spain for its face value, it is able to maintain a fictitious value for purposes of shipment to that country. This silver dollar, therefore, fluctuates in value with the fitful changes in Spain’s credit, and it is probable, should the United States establish American currency as sole legal tender for the Island of Cuba, that all the Spanish silver dollars will be shipped to Spain. There was in Cuba during the last months of Spanish control a margin of thirty per cent. on the silver dollars. It is not probable that these dollars will go down to a point where it will not pay to ship the Spanish silver to Spain and utilise the American dollar in Cuba. In this event the United States Government will, of course, ship its own silver dollars to Cuba; which, with the subsidiary coins, will be required for small payments. At Santiago the immediate disappearance of Spanish dollars and minor coins has made small transactions extremely difficult. Some think that the present stock of Spanish silver in the Island exceeds the necessities; but however this may be in the western part of the Island, it was evidently not the case in Santiago.
BATEY OF SANTA CATALINA.
BATEY OF SANTA CATALINA.
Besides the silver, there is a bank-note circulation, but that has no actual bearing on the question of currency, as the trade and business of the Island has refused to accept it, and the present quoted value is less than ten cents on the dollar. The greater part of this emission, which was a war issue made by the Spanish Government at Madrid through the Banco Espanol de la Isla de Cuba (not by that bank), is largely in the hands of speculators and government contractors. The only public application is for the payment in the custom-house of the so-called ten per cent. ad valorem duty assessed on the official value of imported merchandise in addition to the regular specific rate of duty exacted. The abolition of this duty, under the new tariff, ends the life of these bank bills. There still remains a question as to whether the Spanish Bank of Cuba was in any way responsible for these bills, and the question will come up for future adjustment. The Bank will probably deny responsibility and refer those who hold this depreciated currency to the Spanish Government at Madrid. It is an interesting fact in this connection that the credit of the Spanish Bank of Cuba is of a higher standard than the credit of the Spanish Government, for the Bank has never failed to redeem its own paper during nearly half a century of its existence, first as the Bank of Spain of Havana and subsequently under its present name. It has at times suffered embarrassment, but ultimately the bills of the Spanish Bank of the Island of Cuba have always been redeemed.
The gold coins current in Cuba are the Spanish and French coins, the bulk of which consists of Spanish twenty-five-peseta pieces, so-called Alfonsinos, which for many years have been inflated by royal decree to $5.30, and the French twenty-franc piece, so-called Napoleons, which have also been given a legal value of $4.24 and decreed since the end of 1893 as legal money.[1] When the necessity for adopting and inflating another gold coin besides the Spanish Alfonsino was under discussion, the suggestion was made that the United States gold eagle would make an excellent coin for this purpose, as it would figure out almost exactly eleven dollars Spanish gold.[2] The idea was not entertained, because of the general distrust of Americans, and the fear lest the relations between the United States and Cuba should become too intimately interwoven.
| STATEMENT SHOWING VALUE OF UNITED STATES GOLD IN COMPARISON WITH SPANISH AND FRENCH GOLD ON THE BASIS OF PAR VALUE | |||
| Spanish Alfonsino | $5. | ||
| French Napoleon | 4. | ||
| Spanish Alfonsino, value in Havana | $5. | ||
| Value in United States mint ($4.80 less shipping expenses, .024) | 4.776 | ||
| $0.224. | |||
| Exchange | 4-11/16% | ||
| French Napoleon, value in Havana | $4. | ||
| Value in United States mint ($3.84 less shipping expenses, .0192) | 3.8208 | ||
| $0.1792 | |||
| Exchange | 4-11/16% | ||
| Value of $5, less ½% shipping expenses $4.975. At 4-11/16% | |||
| Quotations: £ Stlg., Spain, $39.40 currency in Havana, 10% £ in U. S. 4.84 | |||
| STATEMENT SHOWING ACTUAL VALUE OF $1. SPANISH SILVER | |
| 100,000 dollars Spanish silver can be bought to-day here with $66,000 Spanish gold, equal to $60,000 U. S. currency. | |
| 100,000 silver dollars shipped to Spain after deducting 1% shipping expenses would produce $99,000. | |
| 99,000 dollars Spanish silver on Spain will buy at rate of £1, which is $7.88, £12,563. £12,563 would produce in the U. S. at $4.84, $60,804.92. |
| Cost | $60,000 |
| Proceeds | 60,804.92 |
| $ 804.92, from which deduct commission, revenue stamp, interest, and profit. |
While the principal banking concerns are unanimous as to the gold standard, there is a difference of opinion in relation to the advisability of squeezing the inflation out of these gold coins. Some of the Cuban bankers and financiers contend that the United States Government should add another gold coin to the currency, namely, the American eagle; and, by maintaining the fictitious value given to the other two gold coins, leave it equivalent to eleven dollars in Cuba. This, it is claimed, will be a very easy way of leaving matters in statu quo, as it were, until such time as permanent government and laws shall be provided for the Island. They fear that to make the United States currency legal tender would work an injury to the creditor class, whose contracts would then be payable in gold worth six per cent. less than the gold specified in such contracts. There are others, whose opinions are equally worthy of consideration, who recommend as the only logical remedy for this situation the substitution of the American currency as sole legal tender. Such action on the part of the United States Government it is believed would not seriously interfere with present contracts, which are invariably expressed as payable in Spanish gold, and which might be arranged for accordingly.
The premium on Spanish gold was never agreed to by the business people. Having thus arbitrarily put a premium on Spanish gold, the same authorities later put a premium on French gold, and to make the matter more complicated, the United States Government is now requested, by some of the Cuban financiers, to introduce another gold coin, which, practically, will be worth ten per cent. more in Cuba than in the United States; that is, a man owing $1,100 gold in Cuba may pay that debt with $1,000 gold in United States currency. As a temporary measure, and in view of the fact that this inflation so far as Spanish coin goes has been in force for over half a century, this may be justifiable. The process, however, is entirely artificial, and to continue it would certainly result in many complications. Some Cuban financiers think it inadvisable to introduce American money at this time, while certain planters are fearful lest their labourers should refuse to take one American silver dollar instead of two Spanish silver dollars. The latter looks larger in amount, it must be granted; but if the purchasing power of the American dollar, by reason of the sound credit of the United States, is double that of the depreciated dollar, with only Spain’s guaranty between it and its intrinsic value of fifty cents, there will be no difficulty in the end. A country which is just now going through an operation involving its very existence will hardly be seriously affected by taking this fictitious value out of the gold coin and establishing once and for all a sound currency that will be good for a hundred cents on the dollar—no more, no less—the world over.
Cuba has no banks in the national sense. There are some excellent private banks, and since its establishment, nearly half a century ago, the Spanish Bank of Cuba has cut an important figure in the finance of the Island.
In another chapter, a brief history of banking in the Island from the earliest period to the present time will be given. For the present, the banking facilities are adequate to the business, because it would be extremely hazardous to loan money in Cuba on any kind of collateral or property. Upon the revival of business, however, the agricultural interests will require facilities for obtaining money in advance of the crops at reasonable rates of interest, and protection from the abominable usury which heretofore has blighted the strongest industries of the Island and added materially to the burdens of the Cuban planters.
There are so many forms of obnoxious taxes in Cuba that even a brief description of them would occupy considerable space and convert this volume into a treatise on the evils of Spanish taxation. Foremost among the taxes which the United States will abolish is the “consumption tax,” on the killing of cattle, which is an exaction that greatly increases the price of food to the people. This tax, like many others, was simply farmed out to private firms or corporations, whose emissaries in its collection became a constant menace to thrift and industry in their respective districts. Another tax, which will fall of its own weight, now that the United States forces control the Island, is the “cedula,” or head tax, which varied in amount from a few cents to one hundred dollars, according to the rank and importance of the individual. Curiously enough, this tax, when not collected, became under Spanish rule a greater source of injustice and annoyance than when collected. It was generally allowed to run until some occasion came for the unhappy victim of Spanish rapacity to require a public document, a permit to bury a child or relative, a licence to marry, a transfer of real estate, or a notarial acknowledgment. Then it was that the petty rascals in charge of public business came down heavily, and unless the fines and back “cedula” and a handsome “gratification” to the official was forthcoming, the body must await interment, the marriage must be postponed, or the transaction be delayed.
The United States Government will not continue taxes that yield nothing in revenue and were simply the means by which unprincipled officials whose cupidity seemed to know no bounds were enabled to plunder and distress the weak and the unfortunate. The “consumption tax,” the “cedula,” and the revenue from “lotteries,” must necessarily disappear with the advent of United States administration of affairs.
Until the tax laws of Cuba can be thoroughly revised, the revenue from customs, from the various forms of internal revenue (and there are many), and from the receipts from taxes upon municipal real estate will, if the strictest economy prevail, suffice for immediate wants, without resorting to measures of taxation which are alike debasing and tyrannical. It is impossible to make specific suggestions at this time in relation to a subject so hopelessly complicated. After the administration of affairs of the Island has been longer in the hands of United States officials, these matters may be carefully studied and adjusted on a basis of equality and justice to all concerned. The true inwardness of Spanish taxation, as developed in the Island of Cuba, can be studied and remedied only after time has elapsed and all the facts are in possession of those who have assumed the responsibility of control.
The question of education is one that will receive early attention, and in which the President of the United States has personally evinced considerable interest. Free public schools exist, but the teachers have the right to take pay scholars, and naturally those who do not pay get little or no attention. In the cities from which data are available it was found that only a small portion of the school population attend school. There were 888 schools for boys and girls in 1893 and the amount paid for their support was $775,646. It is impossible even to approximate the situation at the present moment. In a general way, it may be described as simply deplorable. A free public-school system must be immediately established, for much of the misfortune and suffering Cuba has undergone may be traceable to the neglect of education. The number of people who are illiterate is very great. Some statistics show only one in forty of the labouring classes able to read and write. There can be no stable government in Cuba until this has been remedied.
The reader familiar with Cuban history will remember that the first movement toward the emancipation of the slaves was the practical freeing of all children born subsequent to 1868, the year the revolution started which ended in the abolition of slavery. In the same way, the first act looking toward political emancipation should be the establishment of a free public-school system, which shall have for its aim the preparation of the young Cubans for self-government, whether exercised as part of a Cuban republic or part of the greater republic the basis of which is industrial freedom and the common school.
SKETCH MAP OF THE PROVINCE OF SANTA CLARA.
SKETCH MAP OF THE PROVINCE OF SANTA CLARA.
Manufacturing in Cuba is limited to a few industries in Havana, to the manufacture of sugar and tobacco, and to machine-shops and small foundries scattered over the Island for the convenience of the railway companies, sugar-centrals, and harbours. The author visited all the manufacturing plants in Havana, some of which were located in quarters of the city reeking of filth and teeming with disease germs. There is little hope for industrial enterprise in the broader sense until the sanitary conditions have been improved in all the industrial centres of the Island. The fear of that deadly enemy to all enterprise and thrift, yellow fever, which lurks in the vicinity of the most flourishing industries of Havana, makes it dangerous for those unacclimatised to enter these occupations. The initiatory success of manufacturing in Cuba must depend upon the importation of skilled labour from the United States or Europe. With this invisible and deadly foe in the background, ready to strike when least expected, and against which, as a Confederate officer now in the United States Army at Havana said, “You cannot even raise an old-fashioned rebel yell,” the outlook is far from attractive.
Not only the commercial prosperity of Cuba, but to a considerable extent that of the southern portion of the United States depends upon the possibility of destroying the foci of yellow fever which exist in the larger cities and towns—especially in Havana and Matanzas—and which have been the cause of the epidemics of this disease which have occurred in the United States during the present century. It is believed that to destroy these germs is possible, and from a mere industrial and commercial point of view it would be a paying investment to spend several millions of dollars, if necessary, to effect it. Until this has been accomplished, and the centres of industrial activity of Cuba made safe for the influx of skilled artisans, whose advent alone will make it possible for Cuba to diversify its industries and elevate the condition of its labour, it will be vain to hope for the establishment of new manufactures. The importance of sanitation is so great and the subject of so much general interest to all those looking towards Cuba with the idea of residence or investment there, that considerable space in this volume will hereafter be devoted to a consideration of the subject.
The railway system of Cuba, consisting of seven companies, the aggregate length of whose lines is only 1,467 kilometres, or 917 miles, is entirely inadequate in bringing the extreme ends of the Island together; Santiago and Havana in point of time being as far apart as San Francisco and New York, though only separated by a distance of a few hundred miles. The facts gathered on this subject and the maps presented elsewhere point to the advisability of immediately constructing a trunk railway from end to end of the Island, with branches extending north and south to the important cities and ports. From whatever standpoint it may be viewed, no one enterprise could do so much to improve the situation on the Island. No revolution could have existed in Cuba if such a railroad had been completed by the former Government, and nothing will so rapidly tend to the revival of commercial and general business as the facility for quick passage from one end of the Island to the other, and from the trunk line over branches to the seaboard cities. All political turbulence will be quieted thereby and prevented in the future. The entire country will be open to commerce; lands now of practically no value, and unproductive, will be worked; the seaport towns will become active and commerce between the Island and the United States will soon be restored to the former figures of approximately one hundred millions of dollars per annum. Business enterprise, ever alert to conditions such as herein described, has already surveyed the route, and there are several projects on foot looking toward prompt action in this direction. After a careful study of the situation, it would seem extremely doubtful if such an enterprise could be made a commercial success for many years to come, without material assistance from those responsible for the industrial future of Cuba.
The questions arising in relation to navigation between Cuba and the United States are delicate, and involve, as does the question of discriminating duties in favour of the United States, in a greater or less degree our international relations with other countries. Those interested in American shipping suggest discrimination in favour of American vessels between Cuba and the United States, and some go so far as to indicate that a joint arrangement of the American and Cuban flags would be a solution of the problem. Much of this is mere speculation. We cannot discriminate in favour of American vessels in the trade between Cuba and foreign countries, just as we cannot do so in the case of American vessels in trade between New York and foreign countries, on account of our commercial treaties. The chapter on this subject has been submitted to Mr. Eugene T. Chamberlain, Chief of the Bureau of Navigation of the Treasury Department, and this experienced and efficient official has thrown considerable light on the subject which, it is believed, will be of value to the commercial interests of both Cuba and the United States.
These are some of the most important economic questions with which the United States will be called upon to deal during its military occupancy of Cuba. That we are capable of dealing with them intelligently and satisfactorily can hardly be doubted. Questions of far greater magnitude are continually presenting themselves at home, and as a rule the people of the United States have been found equal to the task of adjustment. To doubt our capacity as a nation to bring about complete pacification of the Island, industrially and politically, is to throw a doubt on our most cherished institutions and to cast a shadow on the Republic itself.
THE political future of Cuba is a matter of much speculation and interest. Considerable will hereafter be said in this volume on the economic and industrial future of this wonderfully productive Island, and little doubt can be entertained that with an honest effort and stable government the commercial future of Cuba will be full of promise. What of the political future? The industrial independence of the Island attained, what, if any, steps are likely to be taken for the political independence? At the present moment, it is difficult to discern any nucleus around which is likely to crystallise sentiment strong enough to form, with any degree of unanimity, a cohesive, independent government. The strongest and uppermost sentiment in the Island, as I have found it since the close of the war, is for peace and reconstruction under the guidance of the United States. Those who have made the greatest sacrifice for independence are apparently willing to rest for a while and enjoy the glorious results of industrial and commercial independence and a release for ever from Spanish misrule. Let the future shape its own political policy, is the desire of all intelligent Cubans. In commercial and business circles (and it must be remembered that the author has, in the course of his inquiries, been very largely thrown in contact with business people), the desire for ultimate absorption or annexation by the United States is almost unanimous. Those who have property, those engaged in industrial pursuits, those carrying on commerce, those interested in affairs, regardless of nationality, see the greatest future for Cuba in ultimate annexation to the United States, and openly advocate that policy. There are others who advocate annexation on grounds of sentiment, and who take the stand that the degree of real freedom enjoyed by a State of the Republic is greater, and the advantages far in excess of those likely to accrue to the mixed population of Cuba by the establishment of any sort of independent government. This is not a matter for surprise when it is recalled that a large proportion of the most enlightened Cubans have been educated in the United States, while no inconsiderable number of the most active participants in the war for Cuban freedom carried individually, alike into battle and into conference, the grandest badge of freedom so far vouchsafed to mankind—United States citizenship.
These ideas are admirably set forth in a pamphlet just written by Fran Figueras, who makes an eloquent plea for the annexation of Cuba to the United States. The title of the little book—for it is more than a pamphlet—suggests the line of argument: Cuba Libre—Independence or Annexation. Exactly! Cuba is free to-day! Liberty came when Spanish sovereignty ended. Adapting the lines of Kipling, the Cubans may truthfully say:
Liberty, therefore, has been won and paid for. By the very nature of things there can be no forcible annexation to the nation representing the absolute liberties of the people. If Cuba becomes part of the United States, it will be because the Cubans, having won their liberty, shall so decree. Intelligent Cubans understand this perfectly well and none better than the author referred to above.
After reviewing the state of public opinion in Spain late in 1896 and the sentiments predominating in Cuba among the native population in regard to the mutual relations with the mother country, Mr. Figueras analyses the present situation, and considers that public opinion in Cuba is divided into three classes. Those wanting:
| 1. | Immediate and absolute independence. |
| 2. | Independence under American protectorate. |
| 3. | Annexation, more or less immediate. |
He allows independence to be the ideal of all peoples, but considers Cuban independence to be still in embryo, and compares the sudden liberation of the island from Spanish dominion to a premature birth, brought on by American intervention and subject to the dangers attending its early advent at an unexpected time. The author contends that to form a nation it is important that the inhabitants shall have some common interests, usually apparent in countries where one element predominates. He finds that in Cuba there are three races equally strong: the autochthonic or white Cuban (pure white), the Cuban with unmistakable and acknowledged signs of black descent, and the white Spaniard; the first of which by its number, the second by its greater acclimation, and the third by its wealth preserve the balance. The fact that these people do not live in different provinces but in the same places makes this adjustment all the more noticeable. Sometimes in one house you will see a patriarchal Spanish father with conservative ideas in the same room with his son of high-flown, Robespierre-like ideas, convinced that a country progresses more in a year of revolution than in a century of peaceful campaigning; while in a dark corner the negro servant, a slave only yesterday, to-day free and taking an interest by no means meagre in the revolutionary legend, curses his colour but does not fail to realise how better fitted he is for rough work than his white neighbours.
“And in the present situation which, pray, of these elements,” the author asks, “is victorious? Which has conquered and is ready to take under its protecting ægis the other two? Is it perchance the revolutionary party that has had its work crowned with success and that can therefore force its criterion of independence on all the inhabitants? Facts answer this question negatively and it would be sheer madness to constitute one nation out of such heterogeneous elements.”
The author establishes comparisons with the other southern republics, contends that Cuba will be in a chronic state of revolution if left to herself, calls attention to the handicap to Cuban sugar, tobacco, and coffee industries by the annexation of Puerto Rico and the Philippines, and asks if it is to be expected that the United States understands that her interest in Cuba’s welfare is to justify damaging that of the new colonies for Cuba’s exclusive benefit.
Arguing against a protectorate, the author calls attention to the fact that Cuba has nothing to fear from foreign nations. Her dangers are at home; it is pronunciamentos and the like that threaten, and a protectorate will not avoid this; it is only absolute annexation that will.
“If before 1895,” continues the author of Cuba Libre, “all Cubans were satisfied with a Canadian autonomy system given by Spain, why should the United States be refused a trust given to a nation like Spain, which has treated Cuba with injustice, bad government, and extortion, against the tested ‘cash’ good faith of the other?”
Refuting arguments upon the offensiveness of annexation to Cuban dignity, the author calls attention to the fact that dignity does not always accompany independence, as, for example, it is often seen how an English, German, or Italian schoolship silences the dignity of some independent states by firing a few shots.
In conclusion he says:
“We Cubans have been tyrannised by an unscrupulous mother country and the proceeding has dishonoured the nation which did so, and we victims have withstood the humiliation with dignity. We stood with dignity when we were burdened with a system of colonial servitude, it was with dignity that we rebelled, staining the chains that bound us with our own and foreign blood; we have kept our dignity whilst the Americans have cut them for us; when to-morrow comes, and we ask for annexation to the United States, we shall do so with the same dignity.”
There is sentiment, force, and good hard business sense in this attitude. A flag, after all, is nothing in itself, but all in what it represents. The Stars and Stripes have for a century or more represented human liberty and have taken into their folds millions of the people of the old world. The historic flags of all nations have been fully and freely and joyously repudiated by them, in search of broader liberties, for that fascinating emblem of the people’s rights; and under it scarred and impoverished Cuba may in truth rest with dignity and content.
Adolfo Muñoz, one of the ablest and most thoughtful Cubans it has been my pleasure to meet, gave utterance to similar views in relation to the future of Cuba, though he approached the subject more from a commercial than a sentimental point of view.
“A new community,” said Mr. Muñoz to the author, “particularly a small one, after a long and destructive war, is always surrounded by many dangers, both internal and external; and the only safety Cuba may find against them is a close connection with the United States which will afford the immediate protection of the American Government. Cuba left alone could not enjoy a high credit, either public or private; neither could she build a respectable navy, which her geographical position renders necessary. In these, and in many other respects, Cuba has to depend exclusively on the United States. The political connection between both countries becomes consequently a matter of extreme importance, which cannot be discussed, and much less decided upon, in haste.”
Continuing, Mr. Muñoz said:
“The liberty which, by the aid of the United States, Cuba has now conquered, will enable her to frame an entirely new tariff. This work, which must be done in accordance with other financial laws, will prove to be a rather easy task, because the commercial relations between Cuba and the United States are naturally beneficial to both countries. Perhaps the best arrangement, both on commercial and political grounds, would be to convert these relations into a coastwise trade, so that the productions of either country should be admitted free of duty in the other; provided that the question of the United States sugar industry could be settled by means of some compensation or otherwise. Cuba expects to be placed, in what respects custom duties, on the same footing as Puerto Rico; as it is necessary to save her sugar industry from its present depression and ruin.”
Here is annexation clearly marked out though not actually advocated. A country without credit cannot start up the machinery of government. To make the trade coastwise for Cuba, as we have already done in the case of Puerto Rico, means ultimate annexation. If, therefore, as Mr. Muñoz says, Cuba “expects to be placed on the same footing as Puerto Rico,” she expects annexation—nothing more, nothing less.
Attention is next directed to another, though not less interesting view of the future of Cuba. When in Cienfuegos the author had the honour and pleasure of meeting the Marquis de Apezteguia, President of the Conservative party, and, although a Cuban born, a strong sympathiser with Spain. There are few abler men in Cuba than the Marquis de Apezteguia. Educated in London, Paris, and Madrid, and at home in the best circles of New York, the Marquis is, in a sense, a cosmopolitan. His interests, however, are all bound up in Cuba. If Cuba once more flourishes the Marquis will become rich again; if it does not his large fortune will have gone, and he himself have been reduced to penury. Asked to give his opinion of the present and future condition of the Island of Cuba, the Marquis de Apezteguia did so without hesitation, clothing his thoughts in English so pointed and vigorous that it would be an injustice to the reader to abridge or change it, and it is therefore made part of this chapter.
“In regard to the disposition of Cuba,” said the Marquis de Apezteguia to the author, “you have first of all to consider the population of the Island, then you have its geographical position, which makes it of importance to the United States; nay, if there is anything in geographical position, which makes it dependent upon the United States. Key West is not an offensive position, it is simply a defensive position for the United States, because it commands the defence of the American coasts. The defence of your coast, with the Island of Cuba, is trebled with the same number of vessels, as its 750 miles practically makes the Gulf an inland sea, outside of the possibility of incursions from foreigners. Up to Cape Hatteras, Cuba defends your eastern coast. Therefore, to you as a military nation and as a naval power, Cuba is a necessity; without Cuba, you have simply Key West, and Cuba is an excellent substitute for Key West. Having this naval defence, which makes the United States non-attackable from Cape Hatteras to the Rio Grande, with how much more efficacy, and without danger, you can move your armies! Cuba is of immense value to the United States, and therefore from that point of view we will develop the others. Under the naval and military aspect in regard to the concentration of the army, we command the Gulf of Mexico as an inland sea of the United States, and we are the principal factor in the trans-oceanic traffic.
SKETCH-MAP OF THE PROVINCE OF PUERTO PRINCIPE
SKETCH-MAP OF THE PROVINCE OF PUERTO PRINCIPE
“The Cuban question is not a difficult one, because there is an imposed issue. In commercial development, to all evidence, you have been a long time a borrowing country, but to-day you have great banking centres: New York, Philadelphia, and Boston constituting an eastern centre; Chicago, St. Louis, and Cincinnati constituting another; with a smaller one at New Orleans, and a western one at San Francisco. Certain centres, such as the New York one, which has an excess of capital, will act in this annexation of Cuba as a multiple in the matter of capital. The capital will in preference come to Cuba, instead of going west.
“In the political problem, the condition of the population of Cuba must be considered. It is not a new country, but four hundred years old,—a totally different nation, with different habits, ways, and languages. Then how can you profitably absorb that population as a State? You cannot afford to sacrifice the United States for Cuba, but must lend Cuba both moral and material riches without forgetting yourself. Is it profitable for the United States to absorb Cuba as a State? If I were an American, I would oppose it. I do not think the Cuban people have sufficient adaptation; in fact they will not Americanise for quite a while, and therefore you must create an empire and a public right that is not within the federal bounds. Your territorial laws pursue colonisation towards the end of absorption, and have placed in your Constitution a limit of population, which we initially possess. Were I an American, I would not be for annexation of Cuba as one of the units of the Union. I think there is a condition of injustice which would be felt by both parties, if you held Cuba in an inferior political state so close to Florida. I say that this is inevitably American, from the material defence which it procures to the United States, and it is a military necessity. It cannot, however, be absorbed and governed rapidly, and for a time you will have to create a new political right, for it is inevitable. You cannot absorb it without creating a different political right.
“Now I have said that, in my belief, the issue is imposed and inevitable; Cuba has to be American territory, and cannot be anything else, with restringent or lax ties uniting it; but in the exterior life it will have to be American. You have no laws so far that can be established here; the new political right will have to be created because of the way in which you acquired the Island. You cannot govern it until you give it those things which have been assured it. You have acquired responsibilities which you are not at liberty to throw away and go back on; that is your position towards Cuba and towards the world, and therefore towards yourself. The American people must not feel that they are making of Cuba a business, but a necessity, to be maintained by force if necessary until evolution can be accomplished.
“Since we see the problem is one with an imposed ultimate solution, the easiest way is to continue the same action that brought the Island. You need, as a guaranty to yourself, and to the Cubans not in arms (which are the majority), a material force here that cannot be disputed with any chance of success. After Spain has abandoned her sovereignty here you are under the responsibility of keeping a force here which will make it a crazy enterprise to dispute. This is a moral duty which you are obliged to fulfil; you cannot have the excuse of want of power that Spain had. The first element of success is the destruction beforehand of all insurgent or insurrection element. All minor things should be put aside and the American mind have a national policy toward the colonisation and final prosperity of Cuba. You do not want the Cuban question to become one of those burning questions of American politics; but it will, unless you have strength to determine it in the way it should go. If it is disputed now in the transient state, you will convert it into an interior American question, which would make things worse than if you had never come into the thing at all. It is the duty of your Administration to mark out these lines and tell the American people that it is a duty outside of small political lines.
“What is the duty of the Cuban people? Your trouble comes from having to handle an unknown land. The business of the President is, not to show business people how they can make money, but to show the people their duty, and leave the rest to American ingenuity. The Cubans are a good people. The population is divided about equally between whites and blacks, and has decreased about one third during the war. I do not wish to discuss the inferiority of the black race, but, so far as I can see in this country from whatever cause, they do not meet worry. The act of force is the determining one with them, and in it they are of great value. In all other social determinations they count very little indeed. From this you derive two lines of conduct: you must try to satisfy the whites as far as possible, and you must content the black so that he will not lend his brutal force to the discontent of the white. The insurrection caused a great fraternity, that is to say, the distinction of race which existed before the war does not exist now. This is not, however, one of the elements that is going to cause trouble, if you do not let them conflict. The insurgents have fought many years for independence, making great sacrifices for the sake of it, and therefore they will not be satisfied with anything short of independence. If you leave them in the future to their own inferior force, I do not think there will be a strong fight towards acquiring total independence in the exterior world, because they recognise the fact that their country is comparatively small and the United States is large, but if these people see that this independence at any moment is not given to them, they will rise in arms—to what extent I do not know. A man who has lost family, suffered sickness, and has no interest now in the home where he was born, is a very reduced moral being. He has not the energies of a total being. The Island of Cuba has been debased by a war of extermination, brought about by its own manner of warfare, and by the Spanish warfare. The Island of Cuba is now totally inert and totally incapable of any governing faculties, not only because of the dead, but by making the rich poor, by making the poor indigent, and the indigent dying. You have in the Island of Cuba a reduced specimen both of material and moral wealth, and these individuals are not capable of determinations of value and worth towards the natural end of civilisation. You then see how much you can depend on the help of the individual. If you attempt to govern by carpet-bag legislation, you will bring on an insurrection. If you help the indigent, and bring them to a condition like they were before the war, you will do them no good. Therefore, you must have a force to establish an indisputable power, and then you must have a policy in which each one finds a solution to his own interest and welfare, under the idea that the Cuban people are unable to take care of themselves to-day, and that none of them have definite ideas or definite plans for their welfare. These plans must come through a strange guidance and not from the Cubans. I have on the Constancia in my care about five thousand people to-day, whom I have helped all I could. I shall have to employ means of coercion to throw these people outside of my house, so little is the sense of dignity in them to-day, and shall have to give them lands, and help them, in order to get them to find their own way in life. This is the real condition of things. The more energetic element is the one in the insurrection, but these on my estate are such as constitute the element which took no sides but suffered the distress of both.
“The size of property was one of the causes of the war, together with the total neglect of the lower orders of population.
“Of the element in arms, you have to distinguish between those who made the war and those who are wittily called the ‘Veterans of 1898’—about one half are Veterans of 1898. These people have energy, and these people have accustomed themselves to that life of civil warfare, but their condition is very bad to-day, and because of this they would like to come into order, although they have great inclination to continue. This is about the only energy left here, but it will be of no use to you except by getting these people out of the way. They have gone to war and acquired honours and salary to the extent of probably $10,000,000. The only way you can do is to offer them the security of what they have acquired so far as material welfare is concerned,—that is, their salaries. It would be an error not to give it all to them. If you give them work in the face of that inert mass I have shown you, and let them see their superiority, giving them certain annuities or monthly payments, you can bridge over the troublesome part of this population, but you cannot do it through their moral nature. You will have to bridge over several months by a strong occupation, by destroying the insurgent energy, by helping the other people, and by drawing general lines which all parties in the United States will accept. You must outline a distinct American policy which must be followed by both parties, and which no party can differ from. With these conditions you will have no trouble in the Island of Cuba.
“If you name your high officials Cubans, this will run off into Cuban solution, and not American. If the occupation is made by sufficient force, and you name only a few high officials who have the confidence of the Administration and have a general plan to carry through, and these appoint lower officials, taking the best class of Cubans and insurgents, the problem is solved. As a Spaniard born in Cuba and wishing this country all the good I can, I think it would be absurd to hope for the peace of the Island without a strong military force. The place must be occupied on strategic lines and not as Spain occupied it, and with good means of communication. This is the solution of the question. If this is not done, guerrilla warfare will have the advantage and it will be the same as when the Island was occupied by the Spanish forces; there were no enemies and no battles and it was like making a cavalry charge on a cloud or a mist.”
The above is a vigorous statement of the situation from the standpoint of one who has lost his all, not in fighting for independence, but in a contest for what he believed was a strong government. The Marquis wastes no sentiment. He tells some hard truths which all who know Cuba will recognise as such. Few foreigners know the United States better than the Marquis de Apezteguia and few have his ability of touching the weak spots in our armour. He tells us we cannot absorb Cuba, and as an American he would oppose annexation. These observations, as well as some others, will delight Mr. Andrew Carnegie, Mr. Edward Atkinson, Mr. Charles Francis Adams, and other opponents of annexation. The talk of strategic necessity, the exertion of power, and the material force necessary to make Cuba American territory will give these gentlemen who have raised the anti-Imperialist cry sentences which will greatly increase their stock of phrases, but in no way solve the question of what shall be done with our new possessions. Indeed, the Marquis, consoling the so-called anti-Imperialists with his well turned sentences, offers them medicine more stringent and a remedy more drastic than annexation. The word “Empire” has no terror for this Cuban-born Spaniard. You must create an Imperialistic policy, or right, not granted in the Federal Constitution, you must maintain American ascendency at any cost, and do your duty toward the people of Cuba and the people of the world. Cuba must, for all time to come, be American territory. It is only by a policy of this sort the Marquis thinks we shall succeed. In carrying out this plan, we are warned not to allow the Cuban question to become a burning question of American policy, but we are enjoined to hold up President McKinley’s hands in establishing a stable government in Cuba. It must not be made into a business, but a necessity. Carpet-bag legislation, he thinks, would bring on an insurrection. In this the Marquis is undoubtedly right. Lastly, he offers the good advice that something must be done and done quickly for the insurgents in arms, whose deplorable condition he vividly portrays. That these soldiers should be speedily paid off there can be no doubt, for until that is done, the rural districts of Cuba can never become productive.
Presumptuous as it may be to pass judgment on the utterances of a man of such wide range of experience in Cuba as the Marquis de Apezteguia, I believe the President of the late Conservative party of Cuba underestimates the Cuban capacity, both for self-government and for annexation to the United States. The work of final absorption may take a generation, but it will surely come. Once annexed, Cuba would become an English-speaking country, and the alert Cuban mind would grasp those great principles of fundamental liberty with far greater alacrity than the Spanish. Let the word go forth to teach English in every schoolhouse in Cuba, and the work of amalgamation would be half done. The more the Cubans know of the United States and of our institutions, the better they will like us. As confidence takes the place of distrust in the minds of the population of Cuba,—native or foreign-born, black or white,—the sooner all will reach the conclusion that the most promising future for Cuba can only be attained by complete union with the greater Republic.
SKETCH-MAP OF THE PROVINCE OF SANTIAGO DE CUBA
SKETCH-MAP OF THE PROVINCE OF SANTIAGO DE CUBA
In support of this opinion as to the political future of Cuba it is only necessary to quote the utterance of one whose opportunity for making such a forecast has been exceptional. Major-General Matthew C. Butler, of South Carolina, combines in his make-up and experience both soldier and statesman. The Confederate cause can point to no more brave and capable officer than General Butler. For sixteen years he represented his State in the United States Senate, and during that period grappled with all the important questions of the day. No man on the Cuban Evacuation Commission was so well equipped to study the political and economic side of the Cuban question as General Butler; and no man took so much pains to ascertain the facts in relation to the condition and sentiment of the people of Cuba. For a month last autumn the author was daily and closely associated with General Butler at the Vedado, near Havana, where the Military Commission had its headquarters. Between acquaintances of many years, in Washington, it is not strange that conversation during those long evenings at the Hotel Trotcha turned on the future of Cuba and that the exchange of thought was both free and frank. Summed up, the opinion of General Butler on the future of Cuba is as follows: