were sent into the country and distributed under the direction of the commanding generals of departments, through such agencies as they established; while in the cities the distribution was generally conducted by an officer of the Army. The result of this action was the immediate lowering of the death rate, the restoration to health of the sick, and a general change for the better was soon apparent. Medicines were also supplied for the sick with most beneficial results. Employment was given to those who could work, and they were paid weekly, so that they might have money to buy food. In fact, no effort was spared to relieve the terrible condition in which so many thousand people were found.

It may be well to give a synopsis of a letter received from a distinguished Cuban general, who has recently returned from a trip through the four western provinces, which he made at my request, and who was fully advised as to the conditions when the Spanish authority was withdrawn, viz:

A state of desolation, starvation, and anarchy prevailed almost everywhere. In Santa Clara, with the exception of the municipal district of Cienfuegos, agriculture and trade had practically disappeared. For this reason, and on account of the number of reconcentrados, mendicants, and criminals, the most complete political, economic, and social chaos prevailed. The country roads, mail service, public instruction, and local governments were in a state of almost complete abandonment. Matanzas Province was in a worse condition, the city of Matanzas having been the worst sufferer among the cities. The province of Habana presented a similar aspect; and in Pinar del Rio the war had caused its greatest havoc, about 30 per cent of the population having disappeared. Turning to the present conditions, we have in view such a change that the progress seems incredible. A great part of the improvement dates from the month of May, when the muster out of the Cuban army removed a great source of distrust. The extent to which have been carried the cultivation of the fields, the reconstruction of homes, the reestablishment of order and public service, especially in the matter of hygiene in the towns, is something wonderful.

As regards agricultural conditions in Santa Clara, it appears that the eight months drought has caused scarcity of food, but not misery. In the tobacco and sugar-cane districts the work of reconstruction is proceeding so rapidly as to promise prosperity in the near future; but in the districts devoted to cattle raising almost nothing has been accomplished. The province of Matanzas is the most backward in the restoration of agriculture, as the condition of the sugar estates and the want of the necessary capital make progress very slow. The province of Habana has progressed the most of all, on account of its proximity to the center of wealth of the island and to the seat of government, which causes a feeling of confidence that attracts capital. The province of Pinar del Rio has changed from a state of hopeless desolation to one of unexpected prosperity. The tobacco lands of the Vuelta Abajo region are being thoroughly exploited, and the rapidity of the crops and the high prices for the leaf affect directly the promotion of commerce and the reconstruction of the towns.

As to the economic condition of the municipalities of the western provinces, on the 1st of January it was one of complete bankruptcy. Every possible means of taxation had been used and exhausted, but on account of the corrupt and centralized methods, little benefit had ever been derived therefrom by the communities. It is still impossible for them to fulfill their obligations without assistance from the State, but if the system be modified so as to allow the municipalities greater

liberty of action, the greater part will be able to meet their expenses with their own resources. In the province of Puerto Principe I understand that breeding cattle are being introduced. As this province was mainly devoted to cattle raising before the recent war, it may soon be able to resume in a small way.

At an early day it became necessary to announce that civil officials, however appointed, would be retained in their positions, and that the military governor would make all such appointments in the future. (See order of February 1.)

Upon inquiry as to the internal revenues, it became apparent that the country was even more impoverished than was thought to be the case, and it was then decided to remit all taxes due and remaining unpaid on January 1 (see order of February 10). In the inquiry made to ascertain what internal taxes should be determined upon, there was a project proposed to take a census of the island, in order to give clear and definite information on which to base a tax system, and correspondence was had with the War Department without result. It was therefore necessary to go forward with the best obtainable information, which resulted in the order of March 25, which can only be considered a temporary arrangement, as the condition of property was generally at its lowest valuation, and taxes could only be expected from such sources as had not been destroyed, and it may be said that the restoration of agricultural property and its products is only being commenced at this time. This was an interruption of this inquiry only, which resulted in the order of March 25, by which the laws and the distribution of taxes were changed, the main object being to relieve unnecessary and unbearable burdens at the same time, by giving to the municipalities certain State taxes to recompense them for the loss of those taxes which came from those the least able to pay, and which were, in fact, in the highest degree oppressive and brutal.

The matter of financial aid in sanitation, repairs and restoration of public buildings, maintenance of police, aid to municipalities, etc., involved a large expenditure of customs revenues, and it became necessary to establish a system of accountability, which was perfected by the treasurer of the customs revenues, Major Ladd, and as treasurer and auditor, the accounting under this system was continued until the 1st of July, when the system prepared by the War Department was placed in operation.

In reorganizing the courts great difficulties were encountered. The time required to inaugurate the system now existing was very great, considering the extent and present population of the island. Great care was taken to avoid the establishment of a system not suited to this people or to the laws to be administered by these courts. It is believed that these objects have been met by the action taken. The existing laws are peculiar, in that a modified law, if great care is not taken, may have such connection with former laws as will, practically, nullify the modification; hence it is necessary to examine the law in all of its past history. It may be well to state here that, at one time, a project for a revision of the laws of Cuba was considered, but as time passed it was found to be better to meet each case of modification, or change, as it arose. This has been found to be the best course. The secretary of finance has undertaken to write a full digest of all the laws of Cuba in all their branches, and when this is completed I believe it would be wise to revise and codify the existing laws and to modify or change them as may be found necessary. The work of revision and codification is one that will require considerable time and the employment of experienced

lawyers well acquainted with Spanish laws, and with a knowledge of the many changes which have so frequently been made by royal order or decree, and which are nowhere collected and are only to be found in the Official Gazette, which itself is not now obtainable, except as found in the hands of parties who have retained copies thereof.

In the organization of the courts the difficulties attending the selection of the judges are much the same as in the United States. The practice of law is too remunerative to many very able men, and these can not be induced to forego their practice; the field for selection is thus circumscribed. Despite this, it is thought the appointees are of high character and attainments, and it is hoped the courts will, in so far as it depends upon them, change the opinion of the world as to the purity and uprightness of their work.

The difficulties which had hitherto existed in the way of obtaining prompt trials and effective justice before the courts, were found to be due more to the methods of procedure and personnel of the courts than to a lack of remedies in the existing laws.

The law of procedure, in criminal cases especially, had all the defects of those ancient systems where the rights of men were but little regarded, and it lacked those methods of modern times whereby the humblest citizen, as well as the most powerful, may be protected in the enjoyment of his just rights and personal freedom.

Those remedial writs which give assurance to the Anglo-Saxon of the preservation of his personal rights, and of the right to securely hold his property, were found lacking.

Through a system of the payment of the municipal judges and the subordinate employees by fees received, particularly in criminal cases, instead of by regular salaries, there were established schemes of collection of additional illegal fees which became a regular part of the system; and so accustomed had these officials become to it that it was impossible to secure speedy transaction of business, or even to obtain justice, without the payment of extra fees demanded, and unjust judg ments were often secured through false or partial record of the escri banos who wrote up the cases which were to be presented to the courts. It will require time to thoroughly educate these officials to the fact that a public office is a public trust and not a place to be used for personal gain.

With the changes already made by the abolishment of the "incomunicado" system, the payment of regular salaries to the judges, officials, and employees of the supreme court and of the audiencias and to judges of first instance, and the payment of salaries likewise to municipal judges, clerks, and employees not now salaried, which is now under consideration, this opportunity for corruption will disappear. These, with other changes and reforms now in contemplation, and the reorganization of the personnel of the courts, made or now in progress, will tend to reform past methods and place the judicial system of the island upon a more honest and satisfactory basis.

The question of finance, as relates to the restoration of crippled and destroyed agricultural industries, is one which has occupied a great deal of attention on the part of this government. It is evident that assistance in the way of repairing the roads and bridges, as well as to municipalities in their present impoverished conditions, is a necessity, and the most pressing wants in this direction have been met by granting money from the revenues of the island.

There is every reason to hope that the municipal revenues will meet all requirements as soon as agriculture is again on its feet, and there

will, doubtless, be some changes in the present tax law made. In this connection, it is well to know that planters and small farmers in the tobacco growing districts are rapidly recovering from their forlorn condition. The quick growing crop and the remunerative prices have enabled them to restore, in a measure, the lost cattle, mules, and implements necessary to the farmers. There is, also, a desire to use laborsaving devices, which are now being slowly introduced.

In the cane-growing districts the progress is slower. The large capital necessary to the economical production of cane sugar precludes the small farmer from entering this field, at present at least, though it is possible that in the future small farmers will grow sugar cane in those sections where the soil is favorable and sell it to the "centrals." The quick returns from the tobacco and food crops will, it is believed, deter many from entering upon cane growing. As soon as the favorable sites for fruit growing are occupied there will be found large profits in the foreign trade produced from this source. The drought which has prevailed this summer has been a sad drawback to the people. Their small crops have largely failed. The cane crop has been affected by it, particularly in the new cane, which has, it is reported, not been successful. Within a few days past there have been rains, but not in all parts. Those parts where the rains fell have been much benefited, though they came too late to save the early crops of corn and vegetables, but it is now thought the winter crops give promise for an abundance.

The expected advent of the rainy season in May prevented the commencement of work on the repair of roads and bridges, it being deemed better to wait until later. Some of the roads have been repaired the macadamized highways and some of the country roads near the coast west of Habana; surveys have been commenced on other roads and are still in progress, and, it is hoped, these will be in condition to move the crops when they are ready for market.

The collection, care of, and uses to which the revenues of Cuba, derived from customs, are treated in the reports of General Chaffee, the chief of staff; Colonel Bliss, the collector, and Major Ladd, the treasurer.

General Chaffee was placed in charge of the details of the uses to which the revenues were applied, and his report shows in extenso the working out of the problem of the public funds, and the reports of the department commanders recite the benefits derived from this expenditure.

In the reports of the commanders of the various departments of the division on civil affairs it is recommended that their reports, forwarded direct to the Adjutant General, copies of which were appended to the military report from these headquarters, be considered also. In this way a full understanding of the affairs treated in both reports can be obtained. In these reports it will be found that opinion differs as to what should have been done, and it is undoubtedly true that the conditions differed somewhat in each command. An effort was made to obtain some concert of action and the department commanders were assembled at division headquarters on June 1 to confer with the division commander and with one another. Unfortunately, the conference was without result. The differences were irreconcilable. The division commander was obliged to take such action as the conditions in each department seemed to demand and the finances permitted. In carrying out this purpose it was necessary to exact compliance with the

necessary regulations and the greatest economy as well. In the matter of sanitation a wide latitude was permitted, but in other matters it has been, and is now, most imperatively necessary to reduce the large amounts of money which have been heretofore allotted. The reasons for this are well known to the authorities and it is not necessary to revert to them here. It is believed that the revenues have been properly applied and in the best possible manner. Much has been accomplished in a sanitary way, much suffering has been relieved, many sick taken care of, and, at this time, asylums and hospitals are being supported from these revenues to the full extent of the needs, so far as I am informed.

In the way of systematic and concurrent action by the commanding generals of departments attention is invited to the letters addressed to them on the subjects of food supply, care of the sick, furnishing medicines, etc., and to their relation to the conduct of civil affairs. Copies of the orders modifying or changing the laws are also appended; the orders appointing civil officials are included in these.

Many requests have been made by the planters and farmers to be assisted in the way of supplying cattle, farming implements, and money; the latter to enable them to restore their houses. The matter has been most carefully considered and the conclusion reached that aid could not be given in this direction. The limit has been reached in other means of assistance to the verge of encouraging or inducing pauperism, and to destroy the self-respect of the people by this system of paternalism is thought to be a most dangerous implanting of a spirit alien to a free people, and which would, in carrying it out, tend to create trouble by arousing a feeling of jealousy in those who would not receive such aid. It should be understood that the full amount of the revenues would not be sufficient to meet all demands of this kind, even were this the only objection to the scheme. The real solution of this question of furnishing means to those who need this kind of aid is through the medium of banks, agricultural or others; through them and through them alone, it is believed, the means now sought from the public treasury should be obtained. In this system of loans, which can be under the scrutiny of the banks or associations from which loans are secured, lies the only apparent solution of this much talked of source of assistance. This system would not destroy or impair the self-respect of the borrower; he would not be the recipient of charity, but a self-respecting citizen working out his own financial salvation by means of his own labor and brain. From information on the subject, it is believed that there is enough capital lying idle in Cuba to-day to supply all that is needed, were the capitalists assured as to the future. The scheme of those who urge this system of assistance to agriculturists by the use of the revenues of the island is that, as appears in the papers submitted, very cumbersome and expensive governmental and other machinery must be organized to carry it out. It is believed that the workers of farms will have obtained through other and more satisfactory channels the assistance needed before this system could be put to work. One feature of this particular scheme is that it will require five years to work it out, possibly more.

A scheme to create an association or bank, which desired to have the incentive of the exclusive right to make such loans in Cuba, could not, of course, be granted, and, as the scheme was based on this monopoly, the projectors withdrew it when they found that no monopoly could be obtained.