With these general conditions in mind, it may be well to ascertain if there exist any facts of a promising nature, which will contribute to make easier the work the United States has undertaken. It is undoubtedly true that the people of Cuba can be brought together on economic questions, if not on those of a political character. The United States has specifically disclaimed “any disposition or intention to exercise sovereignty, jurisdiction, or control over said Island,” except for “the pacification thereof.” If, therefore, the pacification can be more easily and surely accomplished by giving Cuba industrial freedom,—the right to buy in the most advantageous markets in the world, and sell where the natural demands for its products exist,—the United States has the right before all the world to carry out that programme. Spain never granted this right to Cuba, not even in the alleged Autonomist Government wrung from Madrid when war with the United States seemed imminent and Spanish diplomacy was in the last ditch.

The signs and omens for crystallising public sentiment in the Island of Cuba on all industrial questions are far more hopeful at the present moment than are those which indicate the possibility of establishing a stable government, and thus leaving the management and control of the Island to its people. There is now no opposition nor rivalry of different interests among the Cubans, as the strong and important industries in Cuba, most of them agricultural, are of such a nature that they may all thrive at the same time. Until now the condition has been different, because the prosperity of all Cuban industries has been thwarted and impeded by the protection and privileges which the Spanish Government had to grant to the Peninsular industries, whose interests (always in opposition to the legitimate wants of Cuba) have ever been systematically preferred to those most vital in the Island. Another fact is that the productive energy of Cuba and the fertility of its soil are so great, and the real needs of the population so very small, that the process of accumulating capital will become very rapid, after the worst results of the late war are over and a settled and stable government has been established. How far the natural resources of the country will contribute to this result will soon be understood and appreciated. Heretofore, the yearly increase of public wealth has been a very doubtful quantity, and it has never been possible to build any hope on that ground, because all industrial profits have been absorbed by Spain, without leaving any surplus to provide for the accumulation of capital and the material progress of the Island. The consequences of the Spanish colonial system have been such that even before the present war Cuba was already ruined. The 1895-1898 war has completed and aggravated to the utmost degree the material ruin of the Island. The ultimate result of this industrial thraldom has been the never-ending removal of Cuban wealth to Spain, without any return. The means employed for securing that object were numberless.

The irresponsible methods of governing Cuba converted the Island into a powerful means of political influence in the hands of the Ministers. The most difficult political questions, either personal or otherwise, were usually decided at the expense of Cuba. Very often the single signature of a Minister of the Colonies was sufficient to make the fortune of a man for his whole life; and it is easy to understand that every political party in Spain would be opposed to any reform that should deprive it of such efficient means of influence and power. With very few exceptions, all the Spanish officials in Cuba, from the lowest to the highest, came from Spain. Their number was extraordinarily large, and their work, as a general rule, pitifully bad; their constant aim being to do as little work as possible, and to enrich themselves, at the cost of Cuba, as quickly as they could. The fleet of the Spanish transatlantic steamers was constantly employed in transferring impecunious officials from Spain to Cuba, and taking them back again with more or less wealth acquired during their residence in the Island, and sometimes with pensions during their lives and the lives of their widows and daughters. Even a share of the passage money of these officials “both ways” was paid by Cuba.

Besides this salaried staff of officials, backed by the army and navy (which were wholly paid by Cuba), Spain depended for the support of its rule in Cuba on the so-called Spanish political party, known since 1878 as the “Union Constitutional.” This party comprises the whole of the Spanish population in Cuba, which is very numerous; and the blind and unconditional support it gave to every measure of government, or of misgovernment, whether the ruling party in Spain was liberal or conservative, was paid for by the Government in many different ways, and in such a degree that whatever might be the economic situation of Cuba, the men belonging to the Spanish party had always the means of enriching themselves. To these causes of impoverishment must be added the results of the commercial policy of Spain; a subject which will receive attention later in this volume. In vain the productive classes of Cuba protested, during many years, against this deadly regime. It is no wonder, therefore, that the insatiable ambition of Spain should have led to such an antagonism of interests as to render a Cuban insurrection necessary, there being no peaceful means of convincing Spain of its folly. In the same measure as Cuba was reduced to utter bankruptcy and poverty, the importation of Cuban wealth into Spain, without any return, increased year after year. More particularly after the price of sugar fell permanently (in 1884) to about one-half of its former value, and after the complete abolition of slavery took place (in 1885), was the contrast strikingly manifested between the gradual exhaustion of Cuba and the ever-increasing exactions of the mother country. It may with accuracy be said that after the slavery of the negroes came to an end, Spain possessed the power of reducing to real slavery the whole native Cuban population, both white and black.

For this systematic process of thorough draining, Prime Minister Canovas invented the name or appellation of realidad nacional (national reality), meaning thereby that the necessity of maintaining the old colonial system could not be avoided, as it had become interwoven with the Spanish economics in such a degree as to make it impossible for any Government, either conservative or liberal, to interfere with it. The Cubans could not accept, without repeatedly protesting against it, the oppressive system of the “national reality,” for which name they substituted, very properly and accurately, the denomination of “economical slavery.” It is now useless to explain in how many forms, and how often, the Cubans have appealed to the Madrid Government, especially since 1890. But all their efforts failed, and the necessary outcome of those failures was war. Cuba, no more a European colony, will henceforth be an entirely American country. It is now completely ruined and devastated, and many years of peaceful industry will be necessary in order to convert its unhappy people into a prosperous nation. How that can best be accomplished is of far more importance to the people of Cuba at this time than the question of who shall administer the government. For the present, at least, if its people are wise, the Island will be content with the industrial freedom which has been accorded to it, and rejoice in the fact that it is an American country, and not a Spanish dependency.

CHAPTER II
CONDITIONS WHICH CONFRONT US

TO treat of Cuba as an American country is the purpose of this volume. If the people of the Island, regardless of nationality, will only postpone the question of the particular form of government for the present, and give all their attention to the new economic questions which confront them, the future will be full of promise. Cuba is no longer a European colony, but an American country, under the protection of the United States. So long as the Island is occupied and governed by the military forces of the United States, law and order will be maintained and equal rights will be granted to all the people. From an industrial point of view Cuba will have practically obtained what she has been fighting for for nearly a generation: namely, industrial and commercial freedom. The United States will administer the laws for the Cubans in the interest of Cuba. The United States asks nothing in return but the same opportunity for trade and commerce as is accorded to the other countries of the world. The Republic will levy no tribute, nor will it exact a dollar of taxation over and above the revenue necessary for protecting life and property, and the cost of inaugurating such works for the improvement of sanitation, or the carrying on of industries, as may become necessary.

Many Cubans, and a very large number of Spaniards, who appeared before the author when in Cuba, for the purpose of giving testimony on industrial and commercial matters, took it for granted that the United States would, in making up the new fiscal laws for the Island, exact discriminating duties in favour of the United States and against European countries. When told nothing of the sort was contemplated, the Cubans were surprised and the Spaniards incredulous. Indeed, the latter were astounded, and seemed to wonder what the United States was in Cuba for. Even American citizens interested in pushing their Cuban trade have expressed surprise at the absolute freedom which has been allowed all fiscal legislation, and the scrupulous care exercised by our Government not to exact any right itself which is not accorded to other nations. In such matters we are of course bound by our international treaties, and so long as Cuba remains under the protection of the Republic, and not part of it, she must be treated, so far as customs regulations and navigation laws are concerned, as a free country. In the preliminary work of economic reconstruction these sound principles have been kept in mind and adhered to. In fact, the fullest and broadest plan was chosen by the Administration to secure information in Cuba; and the refrain of the instructions, both from President McKinley and his able and broad-minded Secretary of the Treasury, was, to spare neither time nor money to secure the views of all the people of Cuba; for whatever the United States Government finds necessary to do in the Island must be done, as far as possible, by the people of Cuba, for Cubans, and in the interests of Cuba. By this it must not be inferred that those of Spanish birth were to be excluded, but, on the contrary, that the views of all who proposed to remain in Cuba and help by their labour and thrift to build up the industry and commerce of the Island should be sought and considered.

In following out the spirit of these statesmanlike instructions, the author invited, through the newspapers, all persons interested in the industry, trade, foreign commerce, and currency and banking system of Cuba to express their views on these and kindred topics. Many responded, and as may be imagined the information gathered took a wide range, and will, it is hoped, be of practical value in adjusting the questions with which the Government of the United States will have to deal during the military occupation of the Island. In the prosecution of this work, public hearings were given in Havana, Cienfuegos, and Santiago; and to committees of persons representing interests at Trinidad, Caibarien, Sagua la Grande, and other parts of the Island an opportunity was given to express their views as to the industrial necessities of their respective communities. In New York and Washington opportunity was given to those interested in Cuban commerce and such American citizens as represent large sugar estates, iron mines, and tobacco and fruit interests in the Island of Cuba, to present a full and free expression of their views on all topics included in the scope of the investigation. A large amount of information was thus obtained, and no inconsiderable assistance rendered by these gentlemen. With hardly an exception, such assistance has been rendered freely and disinterestedly, and the author takes this occasion to thank a large number of business men who have been found ready and willing to drop their business at any moment and devote much valuable time in an endeavour to elucidate the somewhat complicated conditions which surround the commerce and industry of Cuba.