File No. 839.00/2043

The Secretary of the Navy to the Secretary of State

The Secretary of the Navy presents his compliments to the Honorable the Secretary of State, and desires that I forward herewith for the information of the Department of State a copy of the Annual Report of the Military Government of Santo Domingo from date of Proclamation, November 29, 1916, to June 30, 1917.

Very respectfully,

C. Belknap
Lieutenant Commander, U. S. N.
[Inclosure—Extract]

The Annual Report of the Military Government of Santo Domingo up to end of fiscal year, June 30, 1917

Although Military Government in Santo Domingo was not proclaimed until November 29, 1916, this report includes a brief record of events with Which I was concerned and which occurred prior to that date.

While awaiting Rear Admiral Pond’s convenience to relieve him, I made such study of the conditions here as were proper in his presence, and immediately after relieving him, I pursued my investigation of the conditions and the attitude of the Provisional Government.

[Page 710]

The result of my investigations convinced me by November 27, that there was no real change in the attitude of the Provisional Government, the unsatisfactory nature of which had been impressed upon me in Washington, and that it either would not or could not undertake the measures of reform desired by the United States Government. This fact I reported to the Department, together with my opinion that the conclusion reached in conferences in Washington was correct.

On November 28, at 2 o’clock p.m., I received a radiogram from the Secretary of the Navy, directing me to issue, with one excision, and put into effect, the Proclamation of Military Government that had been prepared before I left Washington, a copy of which I had.

The Proclamation was received without outward disturbance, except in the City of San Francisco de Macoris, Province of Pacificador, in the northern part of the Island.

Since the proclamation of Military Government up to the present time there has been no political disturbance of any magnitude. The nearest approach was the uprising in Azua Province, which was suspected, but not with absolute proof, of being fomented by one of the professional political leaders of the country. This was promptly handled by the forces at the disposal of the Military Government which were dispatched to the scene; quiet now reigns in that Province.

In January troops were sent to San Pedro de Macoris, in the south of the Island, where the sugar estates were practically being blackmailed by a desperado named Cha-chá. At the time when Military Government was proclaimed there were not sufficient troops to garrison Macoris, and for some time after that the managers of the sugar estates themselves requested that no troops be sent for fear it would occasion an outbreak; but General Pendleton and myself, after waiting to see that conditions were generally quiet in other parts of the country, determined that this condition could not be allowed to go on, and troops were sent to Macoris. During this operation Captain John R. Henley was wounded and Lieutenant James K. Bolton was killed while taking luncheon on board a small vessel at the wharf of Macoris. This act was murder pure and simple by a half-grown boy. Except for the excitement attendant upon such an affair, there was no real opposition in Macoris City. Out in the Province, Cha-chá and a number of his followers took to the woods and were vigorously pursued. After a very short time he surrendered and his band was broken up.

There was, however, another bandit, Vicentico Evangelista, a man of more commanding personality than Cha-chá, who, after the latter surrendered, gradually gathered about him a band of marauders whose depredations have been the occasion of considerable anxiety to the Military Government. He has been operating in the northern part of Macoris Province and in the adjacent Province of Seibo where he has terrorized the Dominicans to the extent that it is almost impossible to get accurate information from them. The country is very difficult to operate in, but at the date terminating this report, he is being vigorously pursued.

With the exception of Vicentico Evangelista’s activities, the country is quiet at the end of June, in so far as any known organized bands are concerned. There are in Santo Domingo, as in every country, lawless individuals, but there is not believed to be now any organization of armed men of any considerable numbers who are in opposition to the Military Government or to the general peace of the country.

The disarming of the population of Santo Domingo has gone on steadily from the first days of Military Government. There are doubtless still many arms in the country that have not been turned in, which is evidenced by the fact that arms are being slowly collected even at this time and that the band of Vicentico Evangelista is known to have a considerable number of rifles, some of which are apparently quite new. As a whole, however, the country has been disarmed, to the very great advancement of general tranquility. The good effect has been evident from the first. The holiday season has usually been one when in the cities and larger towns there was much shooting, and when violent deaths were always expected to occur. During the holidays of the end of 1916, excellent order was maintained in Santo Domingo City, and I heard later on that the same was true of the rest of the Republic, in marked contrast to previous years. On later holidays that have occurred up to the present time, the same conditions of good order have obtained. It has been a matter of remark to me by Dominicans that the disarming of the populace was one of the best things that ever occurred in Santo Domingo.

[Page 711]

While, from all indications, there is now no armed revolutionary uprising to be feared so long as the military forces of the United States are in occupation, it must not be inferred that the political leaders have given up their ambitions; or that, if left to themselves, the tranquillity of Santo Domingo has been permanently assured. On the very day of this writing, shortly after the end of the fiscal year, I am assured by a Dominican of wide acquaintance and great experience, that the ambitions of the leaders are only dormant, that they are still cherished, and that if the United States were to withdraw its forces conditions would shortly become as bad as they were before. With every day of tranquillity, however, conditions are bound to mend; and if the Guardia Nacional, now being organized, can be indoctrinated properly, and especially if it can be given the example of the United States Marines serving alongside of it for a considerable period, there is hope that in the long run the people of Santo Domingo will appreciate so thoroughly the advantages of a stable condition of good order that, with the aid of the national police force, they will themselves not further permit the revolutionary movements that have done so much in the past to retard the country’s development.

As a measure of coercion, payments of the Dominican Government under the Budget of January 1, 1916, were suspended on August 18, 1916, through the action of the United States Government. This suspension of payments had caused a great deal of real distress, and its effect was probably on the whole unfortunate. Many people were deprived of their income who were themselves in no position to force the Dominican Government to meet the wishes of the United States; and a feeling of resentment was engendered which could not help having a bad effect. I had learned of this condition before leaving Washington, and after arriving here I learned much more about it. The resumption of payments seemed not only a proper measure, but one that was demanded by the situation. I was informed that if it was made simultaneously with the declaration of Military Government, it would probably have great effect in quieting the opposition that was naturally to be expected, in thought if not in deed. The resumption of payments was provided for in an announcement issued simultaneously with the Proclamation, and in addition I wrote a letter to the Receiver General of Customs requesting that all checks drawn for payment of salaries be made payable only to the individuals in whose favor they were drawn and that they should not be transferable by endorsement. This precaution was rendered necessary owing to the practice of loan sharks of buying up salary claims at a great discount, sometimes as high as eighty percent. The method had been found to work well in Haiti, and on the whole it has worked well here and is still in effect. On December 2, three days later, I wrote a letter to the General Receiver exempting from the payment of salaries the Provisional President, the members of his Cabinet, members of Congress and the major officials appointed by the Provisional President. It required some time to catch up with the back payments, but they have, for a considerable period now, been out of the way. The good effect of these measures met anticipations.

After the issuance of the Proclamation of Military Government, I waited for some days to see if the members of the Provisional Government would in any way cooperate with the Military Government in carrying on the ordinary administration of affairs. The hope that I had in this direction proved to be unfounded; and I was assured by persons most familiar with conditions here that I could expect no assistance of the kind. I established the offices of the Military Government in the Government Palace. Upon taking possession, it was found that the President and all of the members of the Cabinet had come to their offices after the Proclamation of Military Government, had cleaned out their desks, and had not since appeared in the Government Palace. It was an evident case of desertion. Under the circumstances, as the affairs of government had to go on under intelligent administration, I placed the several Departments of the Dominican Government in charge of officers under my command. The first of these Departments to be placed in charge of an American officer were those of War and Navy, and of Interior and Police, which were put under the administration of Brigadier General Pendleton. Four days later Commander B. B. Bierer was designated to administer the Departments of Foreign Relations, Justice and Public Instruction, Agriculture and Immigration, and Fomento and Communications; and Paymaster Hagner to administer the Department of Exchequer and Commerce. This action did not meet the immediate approval of the Department which was, however, eventually given. Since that time changes have occurred in the officers administering the Departments as has been made necessary by detachments. At [Page 712] the present time the Departments of War and Navy, and Interior and Police, are being administered by Lieutenant Colonel W. N. McKelvy in the absence of Brigadier General Pendleton, on sick leave. The Departments of Justice and Public Instruction, and of Foreign Relations are being administered by Colonel R. H. Lane; and the Departments of Fomento and Communications, and of Agriculture and Immigration, are being administered by Lieutenant C. C. Baughman, of my Staff; while Paymaster Hagner has continued from the outset to administer the Department of Exchequer and Commerce.

This action was forced upon me by the attitude of the members of the Dominican Government. It did not appear possible to get Dominicans of the proper caliber who would accept these high administrative offices, for they were afraid of the criticism that they would receive from their own people. I could not force Dominicans into office, but I was able to direct officers under my command to assume these duties.

The action taken prevented the utter disorganization of governmental administration. There were, moreover, some particular reasons why it was necessary to have some of the Cabinet offices promptly filled. It was desirable to begin, as soon as possible, public works which had been interrupted by the state of turmoil that had existed, and by the arrangements under the Treaty of 1907, the necessary funds required the signature of Dominican officials before they could be withdrawn from the Guaranty Trust Company of New York, which is the depositary of the Dominican Loan.

The result has been most fortunate. Unforeseen as the action taken was to me when I came to Santo Domingo, looking back I now consider that it has helped enormously in the progress of the objects for which the occupation was undertaken. The American officers have been administering their departments with a high degree of intelligence and zeal, and, of course, with integrity and freedom from affiliations here that have never been questioned in them but could not have been counted upon with Dominican officials. Had Dominicans remained in office, I should have had to have their actions constantly observed in any event; but the advantage of having officers actually administering, instead of observing and checking the administration of others, has been evident. Not only is this true from the point of view of the Military Government, but it is true also from the point of view of many disinterested Dominicans. I have myself been asked, almost begged, by Dominicans not to disturb the existing order of things for a long period; not to think of putting Dominicans in these offices, but to continue the administration of affairs through the American officers, whose work is giving such great satisfaction to all disinterested people, and whose presence in the responsible Dominican offices is resented only by the class which has brought the Dominican Government to the low plane which has made it a reproach. I cannot claim any prevision leading up to my action; but I regard that action, taken by force of circumstances, as the most fortunate thing that could have happened.

The sessions of the Dominican Congress by the Constitution in effect begin on the 27th of February, which is the day celebrated as the anniversary of Independence. The sessions last for ninety days and may be prolonged for sixty days more. Every two years the terms expire of one-half of the Deputies and one-third of the Senators. Upon the advent of Military Government, there were calls for election which had been issued by the late Provisional Government to fill these vacancies. The holding of elections at that time was out of the question in the minds of all persons whom I consulted, including Dominicans themselves. I therefore issued Executive Order No. 12 on the 26th of December, 1916, after I had had sufficient time to familiarize myself with conditions and to receive reports from the Marine officers in the more distant parts of the country, none of whom believed in the elections being held. The executive order met the approval of all who wished well to Santo Domingo.

One of the reasons that led to the intervention was the great increase in the public debt that had taken place without the consent of the United States, despite the provisions of Article III of the Treaty of 1907. This debt has been accumulated in various ways, from positive graft to real necessity for the suppression of revolution; some of it is for unpaid bills of the Dominican Government, some of it for unpaid salaries and some for claims for damages due to seizures by revolutionary bodies. The present acknowledged public debt, made with the consent of the United States, consists of a $20,000,000 bond issue at five per cent interest and one per cent amortization annually, and of an additional issue of $1,500,000, which will be extinguished, it is expected, in September. Thus, after September, the public debt will consist of the $20,000,000 loan made under the Treaty of 1907, plus such further indebtedness as will result from the [Page 713] work of the Dominican Claims Commission of 1917. Needless to say, the government is being administered within its income at the present time.

In connection with the $20,000,000 bond issue, I invite attention to a feature of the agreement with the bankers that appears to me to be vicious. Provision is made for the purchase from time to time of outstanding bonds by the Dominican Government from surplus funds; after November, 1917, the purchase of such bends will become obligatory as funds are available, the bonds to be retired by lot at the price of 102½. Bonds that have been, or may be, so retired, are simply retired from the hands of investors by whom they were being held, and are then placed in the sinking fund. Interest does not cease on them, but instead of accruing to the outside bond holders, it accrues to the sinking fund; in other words, the monthly charge upon the Dominican Government, instead of gradually decreasing by the absolute retirement of funds, goes on at the uniform rate of $100,000 per month, five per cent interest and one per cent amortization on the $20,000,000 loan. The result will be that Santo Domingo will go to bed one night with a $20,000,000 loan extant, and will wake up the next morning with the whole loan extinguished at once. On the day when the loan is extinguished, the income of the Government will be $100,000 a month greater than it was the day before. Such a temptation to waste and corruption would be a bad thing if it existed in any government in the world; for the government of a country like Santo Domingo it is hard to conceive of anything worse. The arrangement is an admirable one for the bankers but a very bad one for the good of Santo Domingo; and is one that should not be entered into, in my opinion, in any future loan floated for the benefit of the Republic.

It has been stated above that the Government has been administered within its income by the Military Government. Not only has this been the case, but great savings have been effected, which can be devoted to such matters as education, public health, maintenance of public works and general projects for the benefit of the country. As an illustration of honest administration, the collection of internal revenue may be cited. For the month preceding the placing of the collection of internal revenue under American auspices, May, 1916, the return was $23,687.24. Mr. J. H. Edwards assumed charge of the collection on June 26, 1916, in Which month collections rose to $34,320.64, since when they have rapidly increased. The collections for June of this year were $125,000 in round numbers, more than five times what they were thirteen months previous. The customs collections have been honestly made under the Receivership since its creation. What is worthy of note here, however, is that in the past few months they have risen remarkably. This is due to a number of causes, but I feel that it is due in large, measure to the confidence felt in the stability of conditions due to Military Government, resulting in an increase of business. During the first month of Military Government (December) customs collections jumped over $92,000 above those of the preceding month. In January they fell again over $79,000 to $340,000 but since then they have increased steadily, except for one month, until for the month of June, 1917, the collections were $545,000 in round numbers, the largest in the history of the country. A table follows, showing the collections of customs and internal revenue for the year, including May and June, 1916, for the purposes of comparison.

1916 Internal Revenue 1916 Customs Revenue
May 23,687.64
June 34,320.64 341,341.50
July 46,001.91 355,859.82
August 51,680.11 304,029.37
September 58,666.98 314,164.62
October 74,292.45 342,707.00
November 73,911.87 327,013.44
December 76,243.83 419,511.40
1917 Internal Revenue 1917 Customs Revenue
January 85,589.64 340,084.10
February 78,305.70 366,086.88
March 79,854.21 469,655.85
April 94,068.83 439,467.90
May 117,193.08 518,770.85
June 125,312.40 545,258.99
[Page 714]

As a consequence of increased collections, on the one hand, and of honest and economical disbursements, on the other hand, the Dominican Treasury has over $500,000 in hand on June 30, accumulated since November 29, 1916. When the Military Government was proclaimed, the Provisional Government had just borrowed several thousand dollars for daily needs, salaries had been unpaid for a considerable period, and a debt of about $230,000 had accumulated by overpayments on the budget item 456 “Gastos Imprevistos, $50,000.” Since then back salaries have been paid from June 1, 1916, current salaries have been paid as they came due, current expenses have been met, the overpayment on “Gastos Imprevistos” has been liquidated, about $240,000 has been spent or obligated for repairs, upkeep of roads and the like, not included in the budget, $500,000 has been set aside for the first year’s expenses of the Guardia Nacional, and the $500,000 in hand, mentioned above, has been accumulated. Such a showing would have been impossible under old conditions, but it goes to show the possibilities under conditions of tranquillity and honest and economical administration.

The condition of education in the Republic is deplorable. On January 19, I appointed a commission to take up the subject of public instruction and make a report. The commission is composed entirely of Dominicans, for I thought it was wise to have their own views uncolored by any appearance of pressure from outside. The head of the commission is the Archbishop of Santo Domingo. The work before the commission has been a great one and its report has not been presented, but I am informed by the Archbishop that he expects to present it within a few days. After there has been time to digest it, I hope to put in motion measures to improve the status of public education. I am convinced that here, as has proved to be the case in Porto Rico, the Philippines and Cuba, the solution of the problem of good government will be found in the better education of the people. There is no accurate census showing the proportion of illiteracy in the country, but I have had it variously estimated from eighty-five to ninety-five per cent; at any rate it is very high.

The lack of a census was mentioned in the preceding paragraph. It is my intention, if funds can be found, to have a census taken at as early a date as arrangements therefor can be made. The subject is under investigation and I hope soon to be in a position to know whether the census can be undertaken or not.

The future material prosperity of Santo Domingo will be, I believe, principally dependent upon agriculture. There is said to be much valuable timber, and there is known to be some mineral wealth; but the rosy reports about the latter that have occasionally been published need confirmation. Nothing new points to the expectation of anything further than the most modest industrial development. Agricultural possibilities are known to be great, although there are still largely undeveloped methods and tools are archaic; there are rich, semi-arid lands but irrigation has not yet been resorted to in any considerable degree. There are some large foreign corporations engaged in agriculture, chiefly sugar raising. That they increase the business and prosperity of Santo Domingo to some degree is undoubted; that their presence here is not altruistic is equally undoubted. The desirable thing is to show the Dominican people how to raise larger, better and more varied crops, the proceeds of which will accrue to Dominicans themselves and not go in large measure to foreign corporations. A start in this direction has been made by the employment of traveling demonstrators who are especially fitted by education to show the Dominican farmers how to improve their methods. There is much still to do; and now that it has been apparently shown that the Dominican finances will permit of greater expenditures than hitherto for this object, it is hoped in the near future to make further progress than has been possible up to this time.

Another thing that will be of great value to the country, if it can be brought about, is a survey of the whole country. The question of land titles is a burning one. The manufacture of false titles has been a thriving industry, and there are very many false titles in the country. As all titles must rest on surveys, the need is apparent of a general survey of sufficient accuracy to serve as a groundwork for the final surveys for titles. I have already written to the Director of the United States Geological Survey in regard to the matter, and have received from him estimates of the cost of the survey of Santo Domingo. The sum needed is beyond the possibilities from current revenue; but if it can be provided from Public Works funds I consider that a survey is one of the prime public works that should be undertaken here.

When I arrived in Santo Domingo, public works were almost at a standstill. The Department of Public Works, which is in reality not a department, but a division of the Cabinet Department of Fomento and Communications, is presided over [Page 715] by an American engineer, nominated by the United States. Monies for the public works undertaken by the Department are appropriated for in the first instance by the Dominican Congress and the appropriation, if from the Dominican loan, must be approved by the State Department in Washington before the money can be made available. After giving myself time to understand the situation I took the necessary measures to get funds for the prosecution of such works as had already been authorized, and to undertake certain new works. This included the completion of the bridge over the River Ozama at this city which has been finished and is now in daily use; the repair, and the elimination of rack sections, of the Ferrocarril Central Dominicano, the national railway in the North, which was in a state of decrepitude by reason of revolutionary activities; the completion of a road between Moca and La Vega now under construction; the completion of a bridge over the Nigua River for which preparations are going on; the improvement of the water front of the Ozama River at Santo Domingo City, for which plans have been made and which will be shortly undertaken; and an audit of the accounts of the Public Works Department which is in progress; the completion of a road from Santo Domingo City to the town of Los Alcarrizos which had been suspended at a distance of about three miles from the latter place owing to the lack of funds; and for the completion of harbor improvements at Puerto Plata now in progress.

The audit of the Public Works Department was spoken of in the preceding paragraph. In my earlier days here many reports were rife about the necessity for a thorough investigation of the Public Works Department, whose system of accounting, I was told, was faulty and not modern. I heard many stories of questionable accounts for work that had been ordered by Dominican officials to be done by the Director of Public Works or his subordinates, and even of the diversion of Public Work’s material to private use. I have had, and have now, no occasion to believe that the actions of the present Director of Public Works have been other than entirely above suspicion; but, for his protection and also for the clear record of the Military Government, I considered that it was necessary that a thorough audit by trained auditors should be made of the Public Works Department, in order that the actual status of affairs at the present time might be known; that any instance in the past of an improper nature might be brought to light, and that a modern and satisfactory system of accounting should be established for the Public Works Department in the future. That audit is now in progress.

Another matter connected with the Public Works Department has been rectified recently. I found that there was no appropriation for the standing expenses of the office and field organization of the Public Works Department, and that, in consequence, the expenses of the office and general field work had to be provided for from the appropriations for specific projects. Such a condition of affairs was not business-like, as it did not permit the making of proper surveys as a basis of estimates for work to be done; and it further tended to enhance the cost of individual projects when the number of projects under way was reduced for any reason. I therefore communicated on this matter with the Department and the State Department, and received authority to make an appropriation for the standing expenses of the Department, which was done on the 27th of June.

I have received the impression, since being in Santo Domingo, that Public Works projects have not always been conceived for the best interests of the country as a whole, and on mentioning my impression to the American Minister, he informed me that the same impression existed in the State Department, which desired to have a broad scheme of public works laid out upon which the remainder of the loan available for public works may be spent in a manner that will be to the greatest advantage of the whole country. I have desired, if possible, before finally advising upon such a scheme, to visit the particular parts of the country, either in person or through officers on my Staff, especially Civil Engineer Whitman, but have been so closely tied down myself hitherto, as have also all the officers on the Staff, that this has not yet proved to be practicable. With a view, however, to getting a general consensus of the Dominicans themselves, representative bodies in different parts of the country have been asked to submit reports stating first, what they consider necessary for the general good of the country, and second, any projects that they may regard as necessary for the improvement of their own especial locality. These reports have been received and analyzed, and in a short time I hope the comprehensive scheme desired by the State Department may be ready to submit. I find much confusion in the minds of the Dominicans regarding the distinction between national and municipal works. All municipalities are very anxious to have certain local municipal public [Page 716] works undertaken by the national government. This I have consistently discouraged, as it appears to me that the funds provided by the national loan cannot properly be expended on projects other than those of national advantage.

There is nothing in the organization of the Dominican Government that provides any adequate public health service. This subject has been under investigation by P. A. Surgeon P. E. Garrison, U. S. Navy, since the first days of the occupation. In Santo Domingo City, he has cooperated with the municipal government and with the medical fraternity to as great an extent as has been possible. On December 13, he was made the head of the Board of Sanitation authorized under the Dominican law but which was found then to be inactive in its operations. Since that time progress has been made, but slowly. In the first place, there was for a considerable time doubt as to the possibility of having the necessary funds for any far-reaching project; then also it was considered advisable to proceed with some deliberation in order to adapt any scheme that might be adopted to the local conditions. It is hoped soon, as in the case of education, to be able to apply some thorough going measures. Meanwhile, the time has not been lost.

The railroad from Puerto Plata through Santiago to Moca is government owned. Due to the revolutionary habit of the country, the railroad had gone into a state of such decrepitude that it was unsafe to run trains. At the time of the proclamation of Military Government, the railroad had been placed in the hands of an American engineer nominated by the State Department. Immediately upon taking charge of affairs, reports began to reach me of the unsatisfactory condition of the railroad; and, what was worse, of the apparent lack of energetic steps on the part of the manager to put it on a working basis. Capital for that purpose had been furnished by an arrangement whereby funds from the loan were made available, but the work did not get ahead. I caused an inspection to be made of the road and based on the report of that inspection, and of a later one and upon the universal testimony of people from the northern part of the country, I reluctantly reached the conclusion that the American manager was not the proper man for his office. I therefore reported these facts and was authorized to remove him, which I did. The railroad is now under the management of Mr. J. T. Collins, an American, who has shown every indication of energy and ability. He has moved all the freight that was congested at the terminals at either end, has cared for the current business, and is in the meantime making repairs and betterments at a satisfactory rate of progress. The change has been a happy one for the country served by the railroad, and particularly for the good name and good faith of the American Government.

One of the most important matters to be taken up by the Military Government was the establishment of a constabulary force. The word “constabulary” itself does not appear to be acceptable to the Dominican people, and the word “guardia” has been substituted for it. The Dominicans are familiar with the word, as there was a Guardia Republicana in existence when Military Government came in. That force has now been entirely disbanded, and the new Guardia has been named “Guardia Nacional Dominicana.” The organization of the Guardia and its recruitment have not yet been fully established; but its strengh is now about sixty percent of the enlisted force contemplated at the beginning, and recruiting is going on all the time. In the early days of the occupation many conferences were had between the American Minister, the marine officers at headquarters, the officers on the staff and myself, to which were invited also Mr. Baxter, Receiver General of Customs, and Mr. Edwards, the Deputy Receiver General in charge of the Contaduria de Hacienda. It was a very important matter to form an estimate of the funds that would be available for the Guardia; and the two last-named gentlemen were those best qualified to look forward to possible revenue in the future. These gentlemen also have a wide knowledge of Dominican affairs which was most useful in considering the purposes for which the Guardia was to be established. It was almost the unanimous opinion that twenty-five percent of the current revenue was the maximum which should be devoted to the support of the Guardia, and as much less than that as might be possible, in order that other important matters such as education, agriculture, public works including means of communication, and not excluding a proper salary list for high officials, might be able to be cared for by the remainder of the available current revenue.

[Page 717]

After reaching some conclusions I reported to the Department, and in March I was authorized to organize and establish the Guardia at my discretion. After receiving these instructions work was taken up immediately; but owing to changes of personnel here, and also to the failure to receive any confirmation of names submitted for commandant, the work was not as rapid as could have been desired. Finally Lieutenant Colonel Thorpe was detailed as acting commandant, which he remained until he took the field in pursuit of Vicentico Evangelista, when Major Ramsey was detailed in his place. Both of these officers had the work of the Guardia in addition to the other duties that they had hitherto performed. This has, of course, militated against the rapid development of the organization. It is now, however, in a fair way to be completed within a reasonable time, and when the details are ready the Department will be informed of the full organization of the Guardia. The officer whom it is intended to request the Department to detail as the commandant is on his way here to take charge temporarily, and the other officers and non-commissioned officers will be named as soon after his arrival as matters can be arranged with him. The organization is one that will readily admit of expansion if necessary. The number allowed has been deemed sufficient by the officers in conference, provided the full strength of the Guardia takes charge when the country is in a condition of tranquillity, and further provided that the Guardia has had sufficient indoctrination and training alongside of the marines. This last will not be the case for many months to come.

Owing to the withdrawal of marines from Santo Domingo at two different times, it has been necessary to rush the half-trained men of the Guardia into the field before they were ready for service. The withdrawals of marines each happened to take place at a most unfortunate time, and in order to have sufficient forces to meet emergencies it was necessary, as just said, to call upon the Guardia. On the whole they have done as well as could be expected and perhaps even better than could be expected under the circumstances; and I am very hopeful that when the men can be drawn in for the first period of intensive training and indoctrination, they can be trusted then to go out and perform their functions excellently. One idea will be to place the men of the Guardia in parts of the country which are not their homes, in order to remove, as far as possible, the influences that might be brought upon them by people who knew them or could bring influence to bear upon their families. I believe Dominicans are capable of producing a body of excellently trained police; and in my opinion police are what are needed in this country, not an army.

There are still many things that need the attention of the Military Government to a greater degree than has yet been given to them, and which will receive attention as rapidly as well digested programs for their betterment can be thought out. Among these are the administration of justice and the personnel of the courts; the question of taxes, both national and municipal; the settlement of the boundary between Santo Domingo and Haiti; the establishment of a national prison on modern lines; the establishment of a leper hospital; the further improvement of means of communication; and the improvement in education and agriculture already mentioned.

Some minor things that have been done and that have not been mentioned are the creation of an auditing department for the Dominican Government and the continuation of the budget for 1916. The budget should be entirely revised, but the revision needs all the experience that has been gained hitherto, and even more, before a new budget can be intelligently made. In the meantime the old budget serves sufficiently well for all practical purposes. In addition to these matters just mentioned, there has been much work done in the repairing of public buildings that have been destroyed in revolutions, repairing of roads, rehabilitating the telephone service of the Government and the wireless station at Santo Domingo City, in the improvement of jails and in municipal sanitation. Government offices have been in a number of cases consolidated with excellent results. A postal convention has been concluded between the Dominican Government and the United States, extending the domestic rate of postage in each country to first-class mails destined to the other country. Standard time has been established for the first time in Santo Domingo, the standard time for the country being that of the 70th meridian, which passes almost exactly through the center.

H. S. Knapp