No. 347.
Mr. Foster to Mr. Frelinghuysen.

No. 184.]

Sir: Señor Portuondo, Cuban deputy in the Cortes, has written an article exposing the glaring inequality, as compared with the Spanish tariff, of the import duties collected in the Cuban custom-houses, and showing their depressing influence upon the industries of that island. I think it will be found interesting and useful in connection with the study which I infer the Department is making of Cuban commercial matters in view of the contemplated treaty negotiations, and I therefore inclose a translation herewith.

I am, &c.,

JOHN W. FOSTER.
[Inclosure in No. 184.]

From “Revista de las Antillas” of February 27, 1884, Translation.

economical state of cuba.

The second factor of ruin and destruction in Cuba is the import duty. Let us examine the tariff; let us compare and coolly appreciate its errors and its enormities. Our assertion will thus be demonstrated.

Cereals pay at present on entering the island to the extent of $0.115 the kilogram if they come from Spain, and to the value of $0.42 if they proceed from foreign nations; or, in other words, $1.15 (5.75 pesetas) in the first case for every 100 kilograms, and $4.20 (21 pesetas) in the second case for every 100 kilograms. Flurs pay, respectively, $2.25 (11.35 pesetas) and $5.51 (27.55 pesetas) for every 100 kilograms.

In reality the export of Peninsula cereals to the Antilles is null, or nearly null, and that of flour, always insignificant in comparison to the consumption which ought to correspond to 2,300,000 inhabitants, is now much less, on account, doubtless, of the growing wants of the consumption in the Peninsula, of the decline of harvests as an [Page 481] accidental cause, and of the known insufficiency of the production as a permanent cause. The importers in Cuba well know that the grain proceeding from the peninsula is not Spanish in its greater part, but foreign, brought to Spain and re-exported thence for speculation; and the retail merchants and consumers in the Antilles know in the same way that the real price of sale is regulated by the duty which weighs on that proceeding from foreign lands. It is therefore not to be doubted that in order to appreciate the conditions of life and existence in Cuba the starting point is that of 27.55 pesetas as import duty on every 100 kilograms.

Foreign flours pay in the Peninsula, according to the tariff and laws in vigor, 6.30 pesetas for every 100 kilograms. So that here in the Peninsula, where there is a production which the protectionists pretend to favor, the duty is 6.30 pesetas, whilst in Cuba, where this production does not exist and there is no idea of protection, the duty is 27.55 pesetas. Honest men, those who occupy themselves concerning the life and the fate of this poor consuming people and concerning the labor classes in Spain, think and declare with more than reason that this duty of 6.30 pesetas imposed on food has no justice, nor does it arise from sentiments of humanity. What shall we say of the frightful sum of 27.55 pesetas?

Meats pay, on their entry into Cuba, according to their various classes, from $0.028 per kilogram, which corresponds to hung beef, to $0.193 which corresponds to the superior classes, without counting among them those preserved by the extraction of air. That which is equivalent to $2.80 (14 pesetas) for the first, for every 100 kilograms, and $19.30 (91.30 pesetas) for the second, also for every 100 kilograms. The duty which weighs on these same articles in the Peninsula, according to tariff is 2.80 to 5.70 pesetas for every 100 kilograms. So that so indispensable an element of life as is meat is taxed in Spain, on entry, at 2.80 or 5.70 pesetas; which, without doubt is unjust and the cause of the bad food of the working classes. For this reason the poor people do not eat meat nor does hardly the soldier eat it; the most eminent surgeons and military doctors always fear fatal results when they are obliged to operate on these unfortunates who lack the vigor and strength for resisting. There is more than reason for complaint for the Spanish people of the Peninsula, and the energetic protestations which men of good judgment and warm heart express against such a grievance and such a great error are well founded. And if we say this in reference to the consumer who lives in the Peninsula, what shall we say of the inhabitants of the Antilles? Figures speak for us. The state taxes the first 2.80, and taxes the second 14; or exacts from one 5.70 and exacts from the other 91.50.

Salt fish pay on entry to Cuba, according to their grades, from $2.45 to $24.10 on each 100 kilograms, or from 12.25 pesetas to 120.50 pesetas. The duty which weighs on these same articles in the tariff of the Peninsula is from 1.50 to 17.50 pesetas every 100 kilograms. That is to say, a difference of from 1.50, to 12.25 or from 17.50 to 120.50.

Rice pays in Cuba for import duty, including the subsidy, 52.50 pesetas per 100 kilograms. In the Peninsula, according to the tariff, the duty is 8 pesetas for the same weight. With very great reason this protection and privilege in favor of the Valencia production and detrimental to the consumer is cried out against. And what shall we think or say of justice in the Antilles, where there is no rice production to protect? It suffices to compare figures. The comparison is as 8 to 52.50.

The food of the laborer in Cuba comes so dear, in spite of being bad and limited, that in order not to absorb completely the wages it is necessary to raise them to a figure really indefensible; and even then the physical force is poor and of limited resistance. The preceding figures, the exactitude of which there can be no doubt about, show, with vigor, that only by reason of the rigorous tariffs, and even without counting impositions, of which we shall speak later, the subsistence of the working-man in Cuba is infinitely dearer than in Spain, as it is well known, in proportion to the difference of wages.

The workingman must, besides, clothe himself. Let us examine also under this head the tariff of Cuba, comparing it with that of the Peninsula. In the first place, and without even entering into numerous details, it is remarked that the groups of texture embrace 28 parts in. the tariff of the Peninsula, whilst in that of Cuba the number mounts to 130, with a quantity of heads and classifications which is known always to constitute a motive of unjust exaction, or frauds and abuses. Further it is observed that in manufactures of cotton and wool, which the working class needs as much in the Antilles as in Europe, these are oppressed with a duty of 2.10 pesetas the kilogram, those with one of 5.18 pesetas, and those which pay 3.50 pesetas pay in Cuba up to 20.81 pesetas. It must be taken into consideration, in conclusion, that in the duties which affect the fabrics of linen and those of silk, much used in the Antilles by the well-to-do classes, there are even greater differences, as from 4.20 pesetas the kilogram to 23.95, and from 7.50 to 69.40. Let it be taken into account that in various of the numbers that we have cited from the tariff of the Peninsula, the reduction lately granted by the Cortes on re-establishing, although only in part of the reform of 1869, is not made.

B. PORTUONDO.