PORTO RICO in circulation is about $5,500,000. In addition to this there is now upon the island perhaps an equal amount of American money, both paper and silver, which has been put in circulation through the payments made to the United States soldiers, through the custom-house, and by the tourists, sight-seers, and investors who have been visiting the island. The Spanish Bank has accumulated and holds within its vaults about $1,100,000 in Porto Rican silver, gathered together for the purpose of redeeming its outstanding paper currency, which it is now prepared to do, and is doing as rapidly as possible. This will in effect shorten the present circulation of Porto Rican money in amount equal to the contraction of the currency of the Spanish Bank, but will leave in circulation substantially $5,500,000 of Porto Rican silver. While there is some gold in circulation, it is rarely if ever seen upon the island, and none is in general circulation. The currency of the country, instead of having been contracted during the brief occupancy of the United States, has been largely increased, and is now almost double what it was one year ago. This has, in great measure, stimulated many kinds of business, which were for a time greatly depressed, and merchants and traders are beginning to experience the benefits of this increase. As yet it is not likely that the effects of the increase have been felt to any great extent by the farming and producing classes, but is mainly confined to the centres of trade and com merce. By direction of the President, on Jan. 20, 1899, a Porto Rican peso, or dollar, is to be received for 60 cents. This valuation placed upon the Porto Rican money makes the silver of the United States equal to 1662/3 cents as compared to the Porto Rican peso, and at this rate it is now supposed to be circulating in Porto Rico. In fact, however, the merchants, traders, bankers, and business people receive the same at a valuation of 164 or 165, thus making quite a shade of difference in the value of the two currencies when transactions are in any large amounts, and leaving quite a margin for speculation and profit in exchange. would be to coin this silver at the present value of the ore, which does not exceed 40 to 50 cents, and unload it in Porto Rico at 60 cents on the peso. And it will also appear how necessary it is that the government of the United States, which must ultimately care for this currency, should have absolute control of its coinage and output. The business of the country is now conducted upon a double basis, or two standards of value, one based upon the Amer ican dollar of 100 cents valuation, and the other upon the Porto Rican peso at 60 cents. This double standard of value seriously disturbs and makes confusion in all kinds of trade and traffic, and results in frequent extortionate demands from misunderstandings in trade and business, and it is hardly necessary to say that it should be remedied as speedily as possible. While it is true that the two standards exist and are recognized, and attempts are made to enforce them, in many instances which came within our notice the prices which had been originally asked in Porto Rican currency were at later periods demanded for the same articles in American currency, thus making an increase of 66/3 per cent. in the prices of such articles, and this received additional impetus from the provision of General Henry, directing that official salaries formerly paid in Porto Rican money be thereafter paid in gold. This gave an advantage to the sharp and cunning dealer and was decidedly disadvantageous to the honest and fair-minded one. In our judgment, the present Porto Rican currency should be retired and the United States currency be supplied to take its place. This can be done through the custom-houses or through the banks. If our estimate of the amount of Porto Rican silver now in circulation is correct, there is $5,500,000 of this money outstanding and in circulation for redemption; estimating it at its present commercial value, it would be worth $3,300,000, at 60 cents on the peso. This amount of silver at bullion value, at the present quotation of 45 cents, would only equal $2.475,000, thus showing a loss in the recoinage of these $5,500,000 of It can readily be seen how profitable it $825,000. This loss, in our judgment, should be that the building and operating of railcharged to the island of Porto Rico and roads in the island of Porto Rico would should be retained from its customs duties be one of the most important factors in until the government of the United States developing its resources. It has been so is fully reimbursed for the same, and we understand that this would be satisfactory to the people of Porto Rico. in the United States; why not there? It gave great impetus to the growth and progress of the "Great West," and could not do less for Porto Rico. The individual or corporation that invests money in Porto Rico in the way of railroads shows much courage and great faith in the possibilities of the future. Such enterprises should be encouraged, and as few restrictions should be imposed as may be consistent with the proper safeguards for the public good. In our opinion, it will be several years before any adequate returns can be realized upon investments of this kind. It is a matter of education and development, and the most favorable conditions should be made to encourage the investment of capital. The building of railroads would give employment to large numbers of men. It would enable the producer to get his crop to the market at reduced cost; would enhance the values Concessions and Franchises.-We believe of property; build up towns and cities; Municipal Governments.-The municipal governments of Porto Rico are still operating under the same general laws which prevailed during the Spanish régime, and their organizations are substantially the same. The same extravagant methods prevail which have for so long a time been part and parcel of Spanish occupancy and control. The number of office-holders and municipal officials are so great that large amounts of the receipts are consumed in collections and fees, and the payment of these officials. Substantially the same assessment of taxes is made in all the cities as before, with the exception of "consumption taxes" and payment of priests and those for military purposes, which are no longer collected. PORTO RICO elevate the people, advance their civilization, and confer so many blessings and benefits as to demand from the government the most favorable conditions and the lightest burdens. In the United States within a few years we have donated great empires of land to aid in the building of railroads as public highways through the States and Territories, thus developing the country and bringing great benefits to the people. Porto Rico has no lands to donate, no bounties to offer, but a charter most favorable in its character should be given as an inducement to capital to make the investment. As a protection against any charge of favoritism, we would recommend that before any concessions are granted, the same, fully described, be advertised in newspapers printed in Porto Rico, also in one or more newspapers of proper circulation in the United States, giving notice that said franchises will be sold upon a certain date to the highest bidder, reserving the right to reject any and all bids; with the clear and definite right reserved to the government of full control over the rates of charges for passenger fare or freight rates, and of the manner of operating the road for the benefit of the people, and holding the companies accountable for damages to persons and property caused by negligent acts of the companies and of their employés. Public Lands.-There is no reliable record of the public lands to be found in any of the offices in Porto Rico. We made diligent inquiry, and the secretary of finance promised us the best information he could procure, which, he says, is made up from answers to his inquiries of the alcaldes as to what lands are commonly regarded in their districts as public, and which are not claimed by any one. But we have not yet received the result of his inquiries, but when it comes it can be seen from the nature of it that it will possess little value. We believe, from the best estimates we could obtain, that there are about 50,000 acres of public lands in Porto Rico. We therefore recommend that a full and complete survey be made of all the public or unsold lands on the island. to be made, sectionizing the lands so that boundaries may be definitely ascertained, after the plan of the United States, thus making short descriptions and more certain data as to boundaries. But this is too great an undertaking to be begun now, and it can well await more pressing reforms. We would further recommend that the proceeds of these lands, when sold or leased, be used for the benefit of the public schools of the island. Temperature and Climate.-From reports since the control of the island of Porto Rico by this government, to wit, from November to March 1, four months, and from the Spanish records prior to that date, we glean the following summary, which may be of importance, and afford a correct basis on which to form opinions as to the climate: Religion. The religion of Porto Rico was the recognized Roman Catholic Church, and, with a single exception, no other churches existed upon the island. Some years since, by a special decree, a Protestant (Episcopal) church was permitted to be erected at Ponce, which church still maintains its place and existence. The priesthood upon the island was paid by the government, and the sum of $92,000 was annually collected in taxes and paid for this purpose. Since American occupancy the Roman clergy are now dependent upon the support of the members of their own churches. Other denominations are now making efforts to establish and build churches, and representatives of many denominations are now in Porto Rico for this purpose and are meeting with encouraging success. Courts. The system of courts which are now in operation upon the island of Porto Rico are the civil law courts, or the French system of procedure. Schools. The schools of Porto Rico, when inspected by an American, present A survey of the whole island ought a state of affairs which readily explain the cause of the unfortunate condition of nine- to attract the attention of even those per tenths of the people of the island. That ignorance should prevail among a people when not a single building has been erected especially intended for school purposes, and not a single structure worthy of the name exists upon the island, is not to be wondered at. It is estimated that fully nine out of every ten persons upon the island can neither read nor write, and of the children of the usual school age not one out of every ten attends a school of any kind. The schools we visited are simply pretensions to education, and in the United States would not be regarded as being worthy of the name. The miserable hovels into which these schools are crowded, the unwholesome and unhealthy conditions surrounding them, the lack of the smallest conveniences, and the entire absence of a good system of school-books is everywhere noticeable. In but a single school did we find any pretensions to desks, and in most of them the plainest and roughest benches, upon which the children were compelled to sit. No attempt has been made at classification, and young and old are gathered together into one common conglomeration of filth and dirt. Roads and Highways.-The roads and highways of Porto Rico, with few exceptions, are in the worst possible condition, where roads are known at all. These exceptions are the military road leading from San Juan to Ponce, running entirely across the island in a northwesterly direction, a distance of some 80 miles; and the road leading from Cayey, on the military road, to Guayamo, on the coast, a distance of some 28 miles; and the roads from Toa Alta to Bayamon, from Bayamon to Rio Piedras, and from Bayamon to Cataño, and from Ponce to Guayamo, which we found fair roads. sons who have seen the best constructed roads in our own country. This road is a most needed and indispensable means of communication across the island, and connecting, as it does, the two principal points of trade and commerce upon the island, it is impossible to estimate its value in a country where there are no direct communications by rail. The cost of this road is said to have been $25,000 per mile. It has greatly assisted in developing the country through which it runs, and the lands along the entire route are under cultivation. It would be impossible to imagine anything more promising than the country over which this road passes. The outlook upon the valleys filled with growing cane, the mountain-sides under cultivation to their very summits, rich almost beyond description, with a soil capable of producing anything which can be grown under a tropical sun. This road and the country surrounding it are fair indices of what the whole country would soon become when once opened up by roads intersecting at all points, and affording outlets for all the productions of the country. The road leading from Cayey to Guayamo and intersecting the military road at the former place is in many respects a better road than the military road itself. It has been constructed through a mountainous country, and, although some 28 miles long, really only covers a distance as the bird would fly of some 8 or 10 miles. It is a most extravagantly constructed highway, and its bridges and culverts are specimens of the finest masonry, while its road-bed is such as to command the admiration of all who travel over it. It winds about through the mountain-passes and ascends from the ocean through the mountains to the height of 3,000 feet. It is said to have cost the enormous sum of $50,000 per mile. The military road, running from the capital, San Juan, to Ponce. is a stone macadam and very carefully built, with a most complete and well-constructed system of bridges and culverts. It is re- The other roads through the island garded by all who have seen it as one of which connect important cities along the the finest roads in the Western World. coast and passing through the island on It is certainly a very finely built road, the west are in bad condition and are and while it may not probably compare greatly in need of repair. Substantially with such roads in the older countries no work has been done upon them for across the sea, it is of such character as many years, and in many places they are PORTO RICO almost impassable. With a reasonable reasonably be expected of a people so long amount of labor and repairs judiciously under subjection and oppression. done they could soon be put in fair condition and serve a most useful purpose in opening up the country to an increased trade and traffic throughout the island. Fair roads can be constructed for from $500 to $600 per mile, and will serve a most useful and immediate purpose in giving an outlet to the productions of this rich and valuable portion of the island. That department of the interior known as the "department of public works" is now attempting to make improvements on these roads and highways, but it is working without such a system as would seem to bring the best results for the large amounts proposed to be expended there success Grain, Vegetables, and Stock.-Vegetables of all kinds known to our climate grow here in abundance-tomatoes, lettuce, onions, cabbage, pumpkins, radishes, melons, pease, beans, sweet-potatoes, and yams. Irish potatoes are not a here. We found no plums, cherries, or grapes. It would seem, however, that there would be no difficulty in growing grapes to great perfection, but so far they have not been tried. Our Indian corn is raised there with some success, and while the ears are small, that is made up by the fact that two and even three crops can be grown yearly on the same ground. This can be grown either in the valleys or on the hill-sides; we found it growing clear up on the sides of the mountains, 1,500 feet above the sea. No wheat is grown on the island. At present all flour is imported. It is claimed that Spain prohibited its growth on the island, but that it can be profitably cultivated there. Neither oats nor barley are cultivated, but at least the latter might be successfully grown. The native grasses grow luxuriantly wherever an opportunity offers, from the lowest valley to the highest mountain-top, and afford excellent pasture for stock everywhere all the months of the year. They make no hay, as we understand it, but cut it with sickles or the machet and tie it in small bundles, pack it on ponies to the cities, and sell it while it is still green. Public Works. We desire to call attention to the system of public works as now conducted under the present civil government. This department is now under the department of the interior, and in its system and conduct is largely following the old Spanish method. An army of engineers and draughtsmen is employed, whose only possible duty is confined to the con- The cattle grazing in large numbers on struction of roads and highways. This the pastures are found all over the island, system of construction contemplates a and are mostly in very good condition, great detail of plans and designs, with making excellent beef. Hogs are raised to most elaborate and expensive estimates a limited extent, but are of poor breeds, and specifications, sufficient for the most being of the old razor-back" variety. intricate and expensive of possible public They are fed mainly from the nuts grown works, and this, too, for many highways on the royal palm-trees. which are only needing repair, and others which, for the time, should be constructed upon a much more economical basis of expenditure. Lawlessness and Insurrection. The reports of lawlessness and contemplated insurrection upon the island of Porto Rico are without foundation. While it is true that some crimes are being committed, it is equally true that they are not in greater numbers or more significant than might Horses are plentiful, but are of the size known by us as ponies. They are small, and used only to ride and as pack-ponies and in carriages. The hard work of hauling loads and ploughing the land is done with oxen, yoked in the Spanish fashion by tying the yoke to the horns, and they are guided with a whip or gad." The wagons are mostly two-wheeled carts with large wooden axles. Mineral Resources.-There seems to be a 66 |