Another heavy handicap on the economic progress of the island appears in the system of taxation. Regarding this system, the Census of 1899 reports as follows:
"Apart from imports and exports, taxes were levied on real and personal property and on industries and commerce of all kinds. Every profession, art, or manual occupation contributed its quota, while, as far back as 1638, seal and stamp taxes were established on all judicial business and on all kinds of petitions and claims made to official corporations, and subsequently on all bills and accounts. These taxes were in the form of stamps on official paper and at the date of American occupation the paper cost from 35 cents to $3 a sheet. On deeds, wills, and other similar documents the paper cost from 35 cents to $37.50 per sheet, according to the value of the property concerned. Failure to use even the lowest-priced paper involved a fine of $50.
"There was also a municipal tax on the slaughter of cattle for the market. This privilege was sold by the municipal council to the highest bidder, with the result that taxes were assessed on all animals slaughtered, whether for the market or for private consumption, with a corresponding increase in the price of meat.
"Another tax established in 1528, called the derecho de averia, required the payment of 20 ducats ($16) by every person, bond or free, arriving in the island. In 1665 this tax was increased to $22, and continued in force to 1765, thus retarding immigration, and, to that extent, the increase of population, especially of the laboring class.
"An examination of these taxes will show their excessive, arbitrary, and unscientific character, and how they operated to discourage Cubans from owning property or engaging in many industrial pursuits tending to benefit them and to promote the material improvement of the island.
"Taxes on real estate were estimated by the tax inspector on the basis of its rental or productive capacity, and varied from 4 to 12 per cent. Similarly, a nominal municipal tax of 25 per cent was levied on the estimated profits of all industries and commerce, and on the income derived from all professions, manual occupations, or agencies, the collector receiving 6 per cent of all taxes assessed. Much unjust discrimination was made against Cubans in determining assessable values and in collecting the taxes, and it is said that bribery in some form was the only effective defense against the most flagrant impositions."
Some of the experiences of this period will be considered in special chapters on Cuba's alleged revolutions and on the relations of the United States to Cuba and its affairs. One point may be noted here. The wave of republicanism that swept over a considerable part of Europe and over the Western Hemisphere, from 1775 to 1825 had its direct influence in Spain, and an influence only less direct in Cuba. In 1812, Spain became a constitutional monarchy. It is true that the institution had only a brief life, but the sentiment that lay beneath it persisted and had been repeatedly a cause of disturbance on the Peninsula. Something of the same sentiment pervaded Cuba and excited ambitions, not for national independence, but for some participation in government. A royal decree, in 1810, gave Cuba representation in the Cortes, and two deputies from the island took part in framing the Constitution of 1812. This recognition of Cuba lasted for only two years, the Constitution being abrogated in 1814, but it was restored in 1820, only to cease again three years later. Representatives were again admitted to the Cortes in 1834, and again excluded in 1837. The effect of all this was, perhaps, psychological rather than practical, but it gave rise to a new mental attitude and to some change in conduct. The effect appears in the numerous recurrences of open protest and passive resistance in the place of the earlier submission. Writing in 1855, Mr. J.S. Thrasher stated that "the essential political elements of the island are antagonistic to those of the mother-country. While the Cortes and the crown have frequently declared that Cuba does not form an integral part of the Spanish monarchy, but must be governed by special laws not applicable to Spain, and persist in ruling her under the erroneous and unjust European colonial system, the growing wealth and increasing intelligence of the Cubans lead them to aspire to some share in the elimination of the political principles under which their own affairs shall be administered. A like antagonism exists in the economic relations of the two countries. While the people of Cuba are not averse to the raising of such revenue as may be required for the proper wants of the State, in the administration of which they may participate, they complain, with a feeling of national pride, that fiscal burdens of the most onerous kind are laid upon them for the expressed purpose of advancing interests which are in every sense opposed to their own. Thus, Spain imposes taxes to support a large army and navy, the principal object of which is to prevent any expression of the public will on the part of the people of Cuba. Another class of impositions have for their object the diversion of the trade of Cuba to channels which shall increase the profits of the agriculturists and mariners of Spain without regard to the interests of the people of the island."
