; ~~~ -, ~ ~ ~~?;~~~~r- i I-,._ R~~~~~~~rI 4wi_ F ~ I I ;i I.-, 41 -t, ear, -^ 11 i,. j,1, ",, "':., -, Ip- A! ' s , 1 k I I q I i If (4 t$ i I4) (~ t - f r I I '; 4, f, r K' <"',u I I ) 4 / 44 I, I f' 1z1 tI I; Kt I -11 - ~ V-I 44 4 4 'kg 44 I f Ih 4 1 "1~~~~~~ 4 4, 44 4 Irt 14 4 r, 4 4 1 44444 44 4 '4 T1444 2? %g 4 r 4 >' I N f f f 8 I 1 - X 1 A 4 4 4 4 4 4 4 4 4 4 I ol.,. ^, t. 4. 4 4 4 4 4 4 4, 4 414t 4. Pr 44, 44 ".4 4. DEPARTMENT OF COMMERCE AND LABOR BUREAU OF FOREIGN AND DOMESTIC COMMERCE A. H. BALDWIN, Chief SPECIAL AGENTS SERIES-No. 61 CUBA AS A BUYER AND SELLER By A. G. ROBINSON Commercial Agent of the Department of Commerce and Labor TRANSMITTED TO CONGRESS IN COMPLIANCE WITH THE ACT OF MARCH 4, 1911, AUTHORIZING INVESTIGATIONS OF TRADE CONDITIONS ABROAD I WASH INGTON GOVERNMENT PRINTING OFFICE 1912 I I~ ~ ~ ~ ~~~~~ 0~~~~~~~~~~~~~~ I LETTER OF SUBMITTAL. DEPARTMENT OF COMMERCE AND LABOR, BUREAU OF FOREIGN AND DOMESTIC COMMERCE, Washington, August 24, 1912. SIR: I have the honor to submit herewith a report by Commercial Agent A. G. Robinson on the trade situation in Cuba, with special reference to the promotion of American commerce with that island. Economically the two countries are closely linked both by natural trade conditions and by the reciprocity treaty now in force, and in his report Mr. Robinson points out the lines in which American manufacturers and exporters may expect further extension of their business. Respectfully, A. H. BALDWIN, Chief of Bureau. To Hon. CHARLES NAGEL, Secretary of Commerce and Labor. 3 a I I. CUBA AS A BUYER AND SELLER. INTRODUCTION. The area of Cuba, 44,164 square miles, is approximately that of the State of Pennsylvania, and its population, given as 2,048,980 in the official census of 1907, is approximately that of the city of Chicago. By natural increase and by immigration there has been a gain in population since 1907 of probably not far from 200,000, thus making the present total approximately 2,250,000. About two-thirds of these people reside in the western half of the island, and nearly oneseventh of them reside in the municipality of Habana. Nearly 800,000 of the people of the island, or about 35 per cent of the total, are engaged in gainful occupations, the remainder being women, children, and the physically or mentally incapacitated. The line of activity and the number engaged was reported by the census of 1907 thus: Agriculture, fisheries, and mining, 374,969; professional service, 12,805; domestic and personal service, 122,288; trade and transportation, 136,419; manufacturing and mechanical industries, 126,021. As the fishermen and miners combined probably number less than 4,000, agriculture is clearly shown as the dominant industry. The Cuban, whether rich or poor, is by preference a man of the soil. If rich, he wants a plantation of many acres, and if poor such a little tract of ground as his limited means will permit. THE SPANISH MERCHANT. The commercial business of the island is very largely in the hands of Spaniards, men of high commercial integrity and of rare business sagacity. To regard them as doubtful and unreliable debtors is a profound mistake. Attention may here be called to an interesting fact. From 1895 to 1898 Cuba was in the throes of a revolution that resulted in the establishment of the Republic. From January 1, '1899, to May, 1902, there was a period of political reconstruction and economic restoration under American auspices. It is responsibly asserted that in all these seven years of disturbance and disaster and recuperation therefrom there was no commercial failure of noticeable importance. The proprietors of little country stores, their business ruined by the disorder of the times, notified the merchants with whom they dealt of their inability to pay their accounts and surrendered their stocks to be credited to them, but among those with whom any American exporter would be at all likely to deal it is credibly reported that no failure occurred. Much of this condition is due, of course, to the fact of extension of credits by the Spanish and other European concerns from whom merchandise was purchased, but it forms an interesting and notable commercial experience. 5 CUBA AS A BUYER AND SELLER. OBSTACLES TO INCREASE OF AMERICAN TRADE. American sales in the Cuban market could be materially increased if the merchants of this country would meet the credit terms offered by their European competitors, who grant a credit of three or four months, and not infrequently six months. The prices charged include, of course, a proper interest rate, and if cash is wanted banks will discount paper as they do in our own market. The commercial standing of any merchant with whom an American exporter would be at all likely to do business can be ascertained with no more trouble than is required for the same process here, and with rare exceptions the rating of the merchants of the island is high. The particular trouble seems to be a lack of confidence at this end. The mistaken notions of doubtful cre(lits should be abandoned and the integrity and financial responsibility of the merchants in Cuba should be more widely known and recognized. Long-time credits are an established custom not easily to be overturned. The system originated many years ago when a considerable time elapsed between the shipment and the receipt of merchandise and its local sale. The (listribution of the goods throughout the island was also a matter of time, and collections from country customers were slow. The importer asked for time from his European creditors and got it readily. Iis credlit was high and his trade was wanted. The interest charge was covered in the prices. Open accounts were not infrequent and the privilege of such accounts was rarely abused. The conditions of the present time make long credits less necessary, but the custom, though perhap)s somewhlat modlified, still prevails. The matter of time sales is, however, probably much less of an obstacle to trade than is the misconception regarding financial reliability. That point is adjusting itself naturally, and ere long there will be no more reluctance to sell in IIabana or Matanzas or Cienfuegos or Santiago than in Jacksonville or New Orleans or San Antonio. EFFECT OF CHANGING CONDITIONS. The last extensive and general report made by the Department of Commerce and labor regarding ((ond(itions and opportunities in Cuba was published in the spring of 1906. Much 1has happened in the island since tllat tine-tlhe u lrisilg of that year; the second intervention by the United States; t he American occupation by definite proclamation in September 29, 1906; and tile second transfer to Cubali control on January 28, 1909. These v:arious experiences disturbed rather than materially injured the economic interests of tle island. The revolution developed after the close of one crop season aand was ende(l before the beginning of the next. The political experiences of the island are not a proper subject for review ]lere, but while tley have doubtless been to some extent a restrictive influence they have not resulted in inldustrial or commercial retrogrcession. Tlhere has been a, fair a(lvance in imports and a notable gainl ill exports, due in p)rt to larger shipments andl in lpart to higher prices. Thel implIorts anld exports of merclian(lise for t he] last 10 fis('al years ending June 30 lhave been as follows: CUBA AS A BUYER AND SELLER. 7 Years. Imports. Exports. Years. mnports. Exports. 1902................ $65,202,945 $51,073,789 1907.....$......... — $96, 668,889 $110, 765,937 190)3............. 58, 826i, 056 77,848,693 1908..................... 96,993,134 97,447,447 1904....................- 70,155, 640 93,122, 352 1909......-........... 83,856, 835 115, 637, 321 1905............ 83,843,031 99,162,459 1910 -................. 9, 239, 539 144,036,697 1906..................... 104,395,592 105,199, 325 1911..................... 108, 006, 703 128, 542,038 CUBA AS A BUYER. While Cuba's products are in very large part agricultural, the somewhat curious fact remains that the Cubans are heavy importers of food substances. Their imports of such commodities in the last five fiscal years, according to Cuban statistics, have been as follows: Articles. 1907-1911. Annual averago. Cereals.$1............ --- -...-.. -...................- --------------- $60,609, 442 $12121, 8s Fish.........................-.... — 6,534,885 1, 306, 97 Fruits -- -.- —.. —... -. -. ----.. —.... --- —---- 3,042,408 608, 4Sl Meats.-....-....... -........ —..- ----—............. 48, (51, 964 9,730, 393 Vegetables -.....20............-... ---..- -..-.. ---.... ----.... --- — 2(0, 293,313 4,058, 669 Other alimentary substances............................................ 46, 89, 014 9, 337, 80()3 Total....-.t__.......-.. ---.... --- —-.... — -------........ 185,821,056 37,164,211 This is in part exlplaine(l by the fact that of tlle 370,000 people classed as agriculturists, an important percentage consists of lab)orers on the sugar estates and in tle sugar mills. Tlhe number of those who produce foodstuffs for tile market is relatively very small, andl the number of those who produce a part of the foodstuffs required by themselves and by their families is not great. VARIETY OF CUBA'S PURCHASES. The waters of Cuba supply fish in abundance, but as fish decay quickly in warm climates, and as cold-storage facilities are limited, even in the cities, and nonexistent in tle towns, there is a large demand( for the dried and salted fish of the northern waters. The trees of Cuba bear a wide variety of excellent fruits, but there is a good matrket for the fruit products of the temperate zones, and there are residelnts in the island who can afford to pay for apples andt pears andl plums, for grapes, raisins, and for canned fruit. Large herds of cattle graze in rich Cuban pastures, but millions of dollars are paidl for meat imported from other countries. Cuba's cattle are used( for draft purposes rather than for consumption, and( when their d(ays of usefulness are over, their flesh is not palatable. Tlle Cubans make rice a prominent table dish. It is eaten by the rich andl by the poor, andI only a limited quantity is produced locally. There is a large and increasing demand for wheat flour, and wheat is not a lo(al product. The textile fabrics required for clotlling and for otler purposes are all imported. There is some local manipulation of iron and steel, but much the greater part of the Cuban requirement in metals and articles manufactured in whole or in part of metals is importel. Charcoal of local production is the common fuel of the Cuban kitchllen, but coal is imported ini considerable quantity for steam-making purposes and for gas making. Oil and candles for lighting are also articles of importation. 8 CUBA AS A BUYER AND SELLER. Briefly, a very considerable percentage of the articles and substances of daily Cuban use and consumption must be purchased abroad. For these foreign products the Cubans exchange the products of their soil, their sugar and tobacco, their fruits, and the products of the forest and the mine. The United States is the natural point of supply for a considerable part of the Cuban requirement, and a large and increasing percentage of the demand comes or is induced to come to this market. TREND OF CUBAN COMMERCE. There are no reliable figures that show the commerce of Cuba prior to the revolution of 1895, but the imports of the years immediately preceding the struggle for national independence were, in their quantity and value, much nearer to those of the present time than is generally supposed. That experience paralyzed the island's productive industries and reduced commerce to a small fraction of its earlier volume. Restoration came slowly and it was not until 1904 that the foreign purchases of Cuba ap)roached their former level. A year later they jumped to a higher levl, which they have since generally maintained. Cuba's foreign requirements may now be said to amount in value to about $100,000,000 a year, a per capita requirement exceeded by few countries in the world. In the years immediately preceding the operation of the reciprocity treaty between the United States and Cuba, effective in the closing lays of 1903, the share of this country in the imports of Cuba was about 40 per cent. It is now a little over 50 per cent of a much larger business and shows an increasing tenlency. Using the officially reported export figures of this country, our sales to Cuba were $23,504,417 in 1903, the year preceding the operation of the treaty, and $62,280,509 in 1911. There is no question that a great part of this large gain is properly attributable to the influence of the treaty. Yet, even with the natural advantages plus the treaty our sales are less than they would be if more diligent effort were made by American p)roducers and dealers to extend their sales. SOURCE OF IMPORTS. The value of Cuba's imports and their origin appear in the following table, which also shows tile gains and losses of the various sources of supply. The figures are for fiscal years and include receipts and shipments of money, usually a sum of small importance in the account. TUnited United Other Other Years. Fran:e. Germany. Spain. Kingdom. States. Arerica. 1Erope. 1902.............. 3,054, 00 $3,457, 000$9, 723,000 $9, 585,000 $28, 39,000 $9, 833,000 1, 464,000 $308,000 1903.............., 3, 9724, 00(10, 023, O, ) 9,231,000 25,714,000( 8,047, (OOi 631,31,00 321,000 1904.............. 5,524,000 4,642,000 10,744,000 12,495,000 29,513,000 8,931, 000 2,227,0(00 416,000 1905.....-......- 112,920,000 5,108,000 10,413,00 12,500,00 37, 825,00; 10,88 7, 00( 2,594,000 710,000 19. --- —06.. -. - - i, 841,000 6, 593, ()0) 10),927, 0() 14,987,000 49,384, (X0) 12,83:3, (000 3,971,000) 969,000 1907...........; 6,421,000 6,434,000 8,306, 0)00 13, 39,00( 0 48,200,000 9,501,000 3,434,000 1,39!), 000 1908.............. 7,072,000 7, 763,000 9,298, (0 ) 14,551,000 46,587, (X)0 8,302, 00 3,624,00 1, (32,000 1909.............. 7,577, ({) 6, 351,000i 7,391,0007 10,1 (39,0!() 42,612,000 7,325, 0( ) 3,33(, (X0 ) 1, 50,000 1910.............. 10, 0,000 6, 851, 000 8,857,0) 12,539,000 49,981, (X)( 7, 785, 0(O) 4, 644, (X) 2, 109,000 1911............ 5, 539,000 7, 209, 000 8, 527, (X0 12, 75i9, () 57,128, 000 8,410 000, 6,033, 00 2, 492, 00 1 Includes about $7,000,000 in money. A CUBA AS A BUYER AND SELLER. 9 Since the operation of thle reciprocity treaty that became effective in the closing (lays of 1903, much the larger part of Cuba's increased imports has comie from the United States. Trle United Kingdom has made practically no gain; the account with Spain shows actual decline. Germany's sales of 1.911 show a large gain over those of 1904, but there lhas been no considerable increase since 1906. The sales of countries in the Western Hemisphere otller than the United States slow only a yearly fluctuation. The sales of France and other countries of Europe hlave increased, but in thleirl total they form only about 10 per cent of Cuba' s purchases nd the articles imported are chiefly specialties. PRINCIPAL CLASSES OF IMPORTS. The following table shows the value of the imports of the island, by classes of commodities, for the fiscal years ending June 30: Art i ls. 1907 1908 1909 1910 1911 DUTIA iLE IMPORTS. Alimentary sulstances: Cereals. -....... --- —------------ $11,060,270 $11,614,936 $11, 0,991 $13,303, 973 $12, 989,272 FishL --. --- —----------- 17,- (3(; 17, 325, 176 1,1 7,0 (-1, 1, 1 (1,451 1,59,(;48 Fruis -....... --- —--—.-. --- —--- 563,212 648,902 567; 072 5, (;8, 676974 Meat............................ 9, 463,5141 8, 71, 088 9,627,12S 10,169, 170 10, 3 0,504 Milk prod u1es.................... 1,938, 980 2,171,115 1, SOs, 537 2, 215, 302 2, (015, 031 Oils and beverages.. ---......-... 3, 6;2 28) 3,261, 466 2, 837, 4SO; 3, 244, (79 3, 224, 093 Vegoetables - ----- -----—.. ----. 4, 061, 948 3, 8(;3, 254 3,568 974 4,307, 172 4, -91, 995 Other........ —...........-. 4,145, 017 3, 38, 014 3,,;; 6;06 3, 937 30 4, 299, 048 Animals and animal prod: iets: Animals......... --- —. 2, 615, 709 1, (;73,508 406, 318 331,009 398,388 hi(l(s and s;ils.-. --- —----—.- 515,570 378, 8- 12 441, 819 532, 055 57, 820 Lea. tIe r goods.-. --- —----... 4, 23, 310 4, 116, 098 3, 72-1 147 4, 287,886 4, 75, 954 ChemicaIls, d(r s, etc.: Colors, dyes, anl varnishes....... 560, 837 506, 617 515,286) 633,288 71(0,07; (hemlical prodllclets............ 1,571,939 1,711, 247 1,753, 411 2,39:3, 817 3, 0(2, 882 Drilgs................. 429,961 452, 588 373,,18 44, 138 4t89, 182 Oils, fats, waxes, ee t...-.-....... 1, 797, 221 1, 869,177 1, 7(;4 22 1, 875, 878 2,157, 373 Textiles and mano fact('!('s: (Cotton, and manlifactiures of -..... 8, 039, 61.4 10, 417, 451 8,023,562 9,803. 758 9, 278,430 Silk and silk goods................ 915, 769 997, 100 7112, 258 71i 614 675, 752 V( ge(tabl(e fib)ers.............. 3,387,350 3, 2:32, 323 2,984,172 3, 8.11,427 3,31(0, 276 Wool, 1)ristles, hair, e........... 1, 119,407 1,250, 707 944, 168 1, l 050, 025 1, 181, 783 Machijnery, instruments, etc.: Appari tis, machinry -............ 2, 547,157 2,406,398 1,478, 193 2, 0-18, 947 3,061,803 Ilistlnmn ntts........ ---...-.. 297, 798 313, 527 185,:30( 219, 992 288, (02 Machilry...... -....- -.....-.... 5,808,524 5,127, 222 4, 1 (8, 30 5, 949, 465 9, 136, 992 Metals, and minutlfact t res of: oppr, et....................... 819, 48 664,927 582, 728S 736, 002 802, 056 (oldt, sil ver, and plalti I........ 1, 05, 9440 972, 574 311, 4.1 356,9)81 325, 529 1ron and steel 4 --- —-------- - 5,484,378 5, 912, 9C8 4,52:3,952 6 0(, 512 6,5113,248 ( )t01hr..... — —........... --- 361,17 331, 892 223, 70 2701, 0-149 3360, 304 Paper and paper good)s: B1ooks, (t( ------ -- 376, 7149 331,457 283, 082 327, 562 370,614 Cardboard alnd paper.... --- —-----—....... 1,121,885 1395, 904 1,338,559 1,494,099 1,615,982 Stone, earlh,.an(l ceramics: I ittliiiens 1........................- 1,021, 930 1, 027, 1133 1,031, 48 1,0 0,(), 739 1,0)9, ' 7 E',rth and stone.................. 9(4, 47(; 1,0 55, 576 822, 010 35, 480 1, 076;,9 47 (lass and crystals............. 1, 222,342 1, 28, 522 1,1S1, 554 1 32, 915 1, 262, 218 1 'otter. porceli'n, etc............ 7;5, (40 851, 79)6 3(0, 053 752,, 613 820, 360 Wood at1 (other vegetabtle matilrial: Wood, antI manulfa ctures of.... 2, 571,932 2, 413, 70(6 2,042,1 1 2, 435,1 133 2, 7(;7,191 Ot(her vegetablle materials.-... 281,733 235,122 121,5(9 8S5,822 176,013 Other articles......................... | 3,45, 887 3, 51, 027 2, 873, 819 2, (7, 199 2,841, 291 Total........................... MERCHINI>I.S7S FREIE O(F DUTY. Animals............ -.. - -------------- - Barbed wire....................... (Cheesecloth...................... Coal.................... Farm implimt(tnls................ Fertilizers........ -........ 56897~ -12 —2 89, 519,884 90, 2(), 96( 78, 590332 91, 4140, 200 99, 756,067 I I - _ - j___. it- - ---.-I __ 179,523 7,224 1,507 5, 830(.......... 221,586 40), )570 2 26(0, 355 310(,19( I ).......... 10), 549. 112, 331 90, 40) 1,6(1-.......... 2, (64, 175 2, ((62,811 2,271,114 2, 73:3,1415........... 11)6,8C64 155,364 217, 772 35,821.......... 70, 907 50,422 30 553 49,409.......... CUBA AS A BUYER AND SELLER. ----- ---- Articles. 1907 1908 1909 1910 1911 MERCHANDISE FREE OF DUTY-COn. Lumber..........-.....-...... --- —- $2, 786,858 Mineral waters --—. ----.. 127,007 Printed matter -.................. 10,181 Trees, plants, etc.... --- ——......... ---- 31,688 Vegetable fibers...................... 347,289 Wood pulp and papr1r 6............ 146, 869 Other articles...................... 169,509 Total.................... 7,149,005 Money -............6............... --- 665,306 Grand total..................... 97,334,195 $2,305,352 167,064 14,990 30, 694 224, 792 277, 524 383,036 $1,476,007 138,579 20,739 22,917 200,058 241,384 289,058 $2, 364,339 155,116 35,596 32,194 215,423 220, 775 319, 894.................................................... ------------- ------- ------------- 6, 792, 174 5, 266,503 6, 799,399............. 1,835,787 2,934,536 5,206,588 $91,079 98,828,921 86,791,371 103,446,127 1 108,097,782 1 Includes $8,244,854 of merchandise free of duty. SOURCE OF PRINCIPAL ARTICLES IMPORTED. The subjoined table gives the value of some of the more important lines of importation in recent years, and the countries from which they were imported in considerable quantities. The figures are taken from Cuban official statistics and are for fiscal years ending June 30. Articles and countries. 1907 Cotton, and manufactures of.............$8,236, 1(3 United Kingdom............ ----.-. 3, 591,7'24 United States-.......-.... ---. --- —. — 1,492,437 Spain...........-. --- —-----------—.. 1,290,446 France............... ---. —...... ---- 923,887 Germany -.. —....-...... --- —---—.. 544,937 Switzerland....................... 207,814 Wheat flour.............................. 3,030,217 United States...................... 3,027,280 Rice...................................... 5,126,833 United Kingdom....... ---........ --- 2, 146,218 Germany --- —....-.-.. --- —----—. --- — 1,988,908 British India -..........-........ --- 840,672 United States..-................ 7,498 Machinery for manufacturing sugar and aguardiente........................ 1,622,957 United States........................ 1,074,560 United Kingdom..................... 224,450 Germany....-........... ------------ 174,544 Belgium........-. --- —.. --- —-—..-.. 29,031 France..................-.... —.. —. 23,337 Locomotives -.....-.. ---...-. ---. —...... 641,479 United States -...........-...-......- 635,010 Rods and bars.....-....-......... 532, 120 United States.....-.............. — 225,376 United Kingdom................... 158,676 Belgium............ --- —------—. --- 83, 383 Germany-....-.... --- —--------. —. --- 42,055 Sheets and plates.....-.....-....... 536,973 United States -................ ----... 328,627 United Kingdom..................... 201,688 Wire.... —...........-... --- —-------..- 399,897 United States...... ----.. ----.-.-... 359,622 United Kingdom.-...........-.......- 31,116 Fine tools............ --- —-----------—.. 249,956 United States -...... ---. ---......... 187,098 Germany-............................. 26,658 United Kingdom.......-............. 21,233 Nails..............-....... --- —.. 259,448 United States -...................... 169,538 United Kingdom.-...............-.. 46,205 Germany..........-...-... --- —----- 23,584 Belgium............. --- —------—.. 9,179 Pipes and fittings......-....... -—...... 275,296 United States.... --- —-—.. —.... ---. 234,343 United Kingdom..................... 33,398 Iron and steel in pieces -.... --- —-.-...-. 387, 435 United States........................ 262, 463 Uniled Kingdomni..................... 107,50 Belgium..................... 10, 680 1908 $10,529,782 4,698,830 1, 358, 053 1,754,195 1,297,142 910,057 282,157 3,626, 125 3,624, 719 5,264, 388 2,071,413 2,072,313 1,001,240 25,540 1,391,946 752,551 525,043 92,157 61,022 20,475 495,6)91 488,401 503,584 242,979 130,687 91,306 15,455 525,318 321,562 188,099 631,509 583,761 22,681 212,109 156,977 27,921 16,360 273,602 195,080 48,929 18, 99(i 6,230 453,779 357,005 85,932 652,152 537,869 74, 100 2,858 1909 1910 1911 1 $8,114,022 $9,805,419 $9,278,430 3,437,123 4,186,099 3,609,556 1,755,521 1, 432,967 1,938,438 1,215,668 1,748,662 1,360,337 816, 121 1,078, 353 1, 062, 495 484,267 711,664 695,669 116,389 98,602. 3,661,820 4,352,354 3,842,136 3,661,093 4,350,348. 5,220,179 5,598,227 5,920,244 1,843,374 1,881,933............ 2,305,362 2,393,385............ 951,000 1,136,666... 23,030 82,580............ 1,272,429 2,040,877 4,257,123 909,873 1,285,241........... 215,720 486,766............ 63,551 84,834............ 61,926 108,679............ 20,723 75,325............ 243,055 389,281 426,697 231,192 376,773............ 380,092 492,966 778,789 198,046 268,318............ 64,708 88,049............ 101,624 114,369............ 4,500 15,578............ 416,588 590,622 709,510 311,665 422,594............ 100,207 155,777............ 470,331 569,146 2326, 178 416,848 487,126............ 25,045 36,179............ 148,109 213,974 250,128 115,076 175,949............ 12,154 16,910........... 12,635 13,143............ 249, 729 306, 768 297,530 159,982 232,655............ 28,174 32,613......... 17,695 22,028............ 38,455 14,528............ 222,954 334,874 440,164 203,940 321,211............ 18,680 13,181........ —. 488,339 381,393 285,226 463,937 331,417............ 16,649 49,580............ 3,544...-.................. I Preliminary statistics; trade by countries not available. 2 Does not include barbed wire. CUBA AS A BUYER AND SELLER. 1 Arti(Ies an( countries. 1907 1908 1909 1911) 19111 Other iron and stecel manuifactures --- —-$1, 965,774 $1. 809,453 $1, 2414, 069 $ 1, 622, 396 $1, 6152, 852 United States -----------— 1,227,076 1, 1(4499 823, 880 951,924....... United 1Kingdom --- —-----— 341, 478 333, 338 207,038 299,376. --- —Germany-.... -------- S18,503 198, 670 121, 160 204,744...... Belgiim --------------— 101,761 22,789 31,392 82,492....... France-............................. 45, 024 64,587....... Other machinery ------- --- 1 463, 5 10 1,242,218 1, 168, 326 1,304, 942 1, 639, 643 United States --- —-------- 1 Ito, 060 960, 456 9417, 435 1, 1 33, 449....... United Kingdom --- —-----— 138, 475 146. 498 42, 658 45, 846. --- —Germany --- —----------- 135, 965 9 1, 615 112,366 59.458. --- —Mach ine pari s and ac~cssoric.; --- —--- 1 768, 763 1, 608, 819 1,112,),519 1, 395, 688 1, 567-,6(01 United States -1,0 --- —----- y84,988 1,117.743 91-5,029 1,236,803....... Germany-1..... --- —---- 159,591 273,214 115, 416 65, 706....... United Kingdomn --- —------ 1)3, 145 150, 723 36, 832 40, 193. --- —Leather, and mnanutfactures of --- —-- 4,236,310 4,116),1)98 3, 724, 147 4, 287, 886 4,756954 United States --- —- ------- 2,961, 083 2,889,843 2, 756, 453 3,17(0,145. --- —Spain ----------------- 101,729 968,975 8(0-,275 907, 378....... Wood, and manuifacl tires of -------- 5 A,35 790 4,769,058 3, 518, 168 4, 799, 5t)2 5, 392,272 Unitied Sl'ates --- —- ------- 4 331, 168 3, 758, 885 3, 215,41)9:3,890,721. --- —Spain ----— tt --- —---— )- 0, 859 301, 51. --- —--------------- Canada ----------------------------— I167, 429 293, 424....... 1Preliminary statistic s tradte by count'ries not availatble. MEAT PRODUCTS ANDIL E(1'GS. 'With the, exception of t~asajo, a coarse vtariety- of (lrie(1 or jerkedl beef brought from Uruguay and Argrenitina, nearly all of Cuba's imports of mneat and meat jproducts, of a total yearly value of approxi-~ niately $10,000,000, come from the United States. The greater lpart of the American supply is pork lproducts. Poultry, fresh meats, and saltedl meats are shipped from the United States in var-yingr,ai(I coinparatively small quantitites. rThe value of the tasajo imported from South America averagres about $2,500,000 a year. Pork pro(Iucts from the 'United States show the followingc record: Lard, Ir1cii poundls, and substitutes for lard-1907, $4,257,071; 1908, $4,152,646); 1909, $4,7851,7665; 1910, $5,554,191. Pork, salted, smoked, and picidedi, including hams an(I bacon 1907, $1,922,94'2d; 1908, $,,1,785,475; 1909, $1,645j238'4; 1910 $2,2900. Spanish Jpork lprodluct 's, particularly a special quality of haiies, are imported to a value of some $:35,000 to $40,00() by reason. of a local preference for the articles. Cuba imports eggs in qjuaritity raflillgnc in value from $700,000 to $1,000,000 Ia year. Small quantities are broughrlt from Mfexico and Spain, but they are insignificeanit in comparison with the p)urchases from the United States. 7)The prodJuction of p)oultry and eggs appears to be a hig(hly p)romisinig in(Iustry in Cuba, but it awaits~dev-elopmnent. The little dooryard flocks seem to do very well, lbtt they are entirely insufficient in. number to meet the, market requirements. COAL, IRON, ANI) STEEL, AND LEATHER GOODS. Imports of anthracite and bituminous coal and coke, largely bituminous coal, averagringy approxim-ately $21,500,000 a year, come from the United States to the extent of more than 95 pe cent of the total value. Bectause of the variety of articles involvedl, andl because of the classification systemn of the Cuban reports, tabulation of tile iron anti steel business is soniewhat (diflcult. In Cuba's customs rejports import ant amounts are inicluded in the group "All other mnanufactures." A partial statement of American exlports will be found elsewhere in this pamphlet in separate tables of the imports and CUBA AS A BUYER AND SELLER. exports of the United States. In connection with the foregoing table giving tlhe value of some of Cuba's principal imports it may be note(l tthat Germanly appe)Iars as competitor for the trade in sewing machines, typewriters, bicycles, and other small machines and ap)paratus, but secIlures only a small fraction of the business, and practically all the remain(ler goes to the United States. Much the greater part of the leather goods trade of Cuba is represented by boots an(d shoes. There is a considerable local industry in the proluction of coarse shoes worn by the Cuban peasantry and by the poorer classes of workmen in the cities, but there is an increasing sale of American-made footwear. There is a considerable importation of a particular c(lass of shoes, known as alpargatas and worn chiefly by Sp)anish workingrmen, an(l there are many in the island who still prefer the S)panish shape an(l pattern in stan(lard leather shoes. The ilnmortation of alpargatas averages about $300,000 a year. WO)I), SACKS, CEMENT, OIL, JEWELRY, PAINTS, AND MEI)ICINES. About half of the American sales of wood and its manufactures consist of roug(ih lumber r thlat is admitted free of duty. There are also iml)portanlt shipmentlls of furniture and other articles made of wood. The sullrgar mlills of Cuba use annually millions of bags in which the raw slgar is packed(l for shilpment. Very little of the bag trade comnes to this country because of the advantages held by England and British Inlldia, notalbly England, through its trade connections with the Far East, from whence comes the material of which the bags are nma(le. The imports were valued at $1,329,612 in 1911, as compared with $1,548,247 in 1910 and $1,017,442 in 1909. The United States suppIlies most of the cement, imports of which aggregate(l $808,766 in 1911, as compared with $615,947 in 1910 and $613,038 in 1909. Crude petroleum comes almost entirely from the Unit.led States, the iminorts in 191 1 being valued at $466,989, as agaillst $556,792 in 1910 and $570,650 in 1909. Cu)ba's )purchaCses of gol( jewelry are made principally from France and Germany. The total imports in 1911 were valued at $113,230, while in 1_910 they were $189,208 and( in 1909 $452,092. Metalllic lpaints, imp)orts of which in 1911 were valued at $525,666, com(le largely from the United States, although important shipl)nnts are also received( frolm the United Kingdom. In 1910 the imports amllounted to4$450,441 an(d in 1909 to $359,053. IPa'tent a(l )pr(olrietary medicines to the value of $251,511 were boughilt il 1)911, chiefly frolm the United States and France. lpnl)orts in 1 9!10 were valued( at $222,721 and in 1909 at $296,363. Soaps are suppllli(ed ltrgely by the United States and Spain, imports in 1911 amilotlting to $5392,207, as comnpare( with $451,769 in 1910 and $421,063 il 1 )909. Fralnce supplies most of the perfumery accessories, whi(ch llaounllted to $517,830 in 1911, as against $469,858 in 1910 and $428,438 in 1 909. TEXTILE FABRICS, PAPER, BARRELS, ETC. (oods nmadel of vegetable fibers are furnished by the United KingdoIl, lSain, S lFrance, tand( other countries, in the order namel. 11 1911 ipullrclhses of suchl good(s were valued at $1,762,323, a decrease from the $2,030,909 in 1910, but a slight increase over the $1,756.236 C(UBA AS A BUYER AND SELLER. 13 worth imported in 1909. The United Kingdolm and France hold the larger part of the business in wool and woolen goo(ds, whi(h alllllunted to $1,181,738 in 1911, as compared with $1,050,025 in 1910 and( $944,168 in 1909. The United States does the larger part of a readymade clothing trade, amounting to nearly $100,000 a year. France gets the larger part of the trade in silk and silk goods, which amounted to $675,752 in 1911, with the United States, the United Kingdom, and Germany dividingr the greatter part of the remain(ter. In 1910 the trade amounted to $676,614 anid in 1909 to $702,258. The United States leads in the trade in paper and its mlanufactueres, with Gerrmany, Spain, an(l France followingr in the order namenll. Imports amounted to $1,338,559 in 1]909, $1,494,099 in 1910, and( $1,615,982 in 1911. Of the boxes, barrels, and staves the United States sullpplies about one-half, Spain one-fourth, and France al1nd the UTit(ed( Kingdomllt most of the remainder. During the last three years imnlports hlave steadily increased, being $897,623 in 1909, $999,904 in 1910, and $1,311,845 in 1911. The United States gets much the larger part of th tetrade in carriages, coaches, wagons, etc., which aggregated( $2,271,,29() in 1911, as compared with $1,266,336 in 1910 and([ $891,672 in 1909. Spain 1has a monopoly of the wine trade, furnishing albout 90() per cent of the $1,539,397 worth imported in 1911. Implorts irl 1910 were $1,487,278 and in 1909, $1,383,236. Brandt1ies and other liqlolrs, cordials, etc., to a value of more than $200,000 are imlported( atnnually, France holding a large share of the trade. Most of the hat trade, which amounted to $464,446 in 1 911, $338,767 in 1910, and $365,140 in 1909, is (livi(le(t between Ita:ly:11lt the United States. Calcium carbide comes very largely from the Unlitedl States, imports in 1911 being valuedl at $350,557 in 1911, as comll)arle( with $337,605 in 1910. FACTlORS INFLUENCING D)ISTRI BUTION OF T RAD;E. The foregroing articles an(l lines include, lbr oadly, tlh more important of Cuba's impol)rts. It will be inoticed tlhaIt in sotle co(iiio(ioities the United States practically controls tlhe ilnarket for nat1ur1al and obvious reasons. Our cotl anl lumber, our whelat flour and tlhtc p)ork l)ro(lucts of which (Cuba is a large buyer, meet lpractically io competition. The samne is to l)e said of a coilsi(erable, list of colIlmolities that we sell in smaller but still ({consi(leral)le (Iuantity, such(l as crule oil, lubricatiiig oil, corn, sewinig mlaclines, ds11(1 typewrit('rs. ()On the loig list of generall iinmports tlhere is fair comnpetitionm be',cltween the merchants of tle Uite States an( tile merchantts of 'Iurople, tle trlale going to those wlho seek it most (liligently a111( tlrecat it llmst fairly. Thlerte are1 lines in which we' ate a llmnost ltopelessly towardl t lhe rear eit(l of the cormercial iprocession throughl otur owl fault, al,(n tlhere are a few liles in wlliclh we can nt Lho)( to compete. Tlese(:are certain special products of Spain an(l F'rance, certain foods, (ldrills, fabrics, furniture, ornaments, amno(unting to a consilderable sumn in tlhe aggregate of tleir value;, )but of 'relaltively little co(mmercial im)ortancel, for wlich we hlave no accel)table suilstitute anll I(fr vwhli(l so(me of tile people of tle island desire no substitute and will accept none. CUBA AS A BUYER AND SELLER. AMERICAN TRADE IN COTTON GOODS. Our weakest point in a branch of importance is in the line of cotton goods, in whichl we supply only a little more than 1 5 per cent of (Cuba's requirement, notwithstanding the preferential tariff rate's given to American products under the reciprocity treaty. On what we do sell there is frequent complaint of unsatisfactory packing, and buyers are keenly aware of the American reluctance to meet their special needs and wants in matters of width, weight, and finish. There is, however, a notable improvement in that direction, and while sales show fluctuation they also show a consid(erable increase. The cloth shipments, in recent years, according to American export figures for fiscal years, have been as follows: Years. Yards. Value. Years. Yards. Value. 1903..-..-.-.- ------—. ---- 4,044,616 $230,778 1908-..-...-.-.- -----. —.-. 17,825, 742 $1,045,969 1904....................... 6,125,331 411,038 1909 —... ------------------ 21,050,456 1, 273,390 1905..-.. —.. --- —------. — 17,393,385 915,889 1910. --- —----------------- 12,875,834 932,383 1906-....-....... --- -... ---- 20,386,876 1, 049, 406 1911... ---...... 19,151,546 1,346,083 1907....................... 15,917, 045 990, 754 From facts and figures secured by the Tariff Board regardling domestic and foreign costs and prices of cotton clotlh, it is evident that American producers, witl their advantage under the reciprocity treaty, should be able easily to control the Cuban market in many lines of cloth if they will meet the reasonable business requirements of the market. GAINS IN AMERICAN SHOE TRADE. Tile boot and shoe business, by effort an(l enterprise, has made notable gains, the exports to Cuba, according to American statistics for fiscal years, having been as follows: Years. Pairs. Value. Yoars. I'airs. Value. 1902-....-.......... —.. 476,424 $502,496 1907. --- —.. --- —- --—..... 1,275, 687 $2,145,415 1903....... — -----—. ---.... - 543,172 536, 303 1908 -.... --- —.......,.... I,967, 901 2,577, 966 1904...-........-...........- 1,005,278 979,303 1909 -... ----............... 2,205, 133 2,529, 615 19)05.......- ------- ---- --- 1, 379,933 1,322,030 1910-.....- --.-...-.. 2, 578, 923 2, 958,103 1906 -..-..... ---—.. --.. - 1, 448,092 1, 769, 796 1911.-.. --- —-.-.. —..-. 3, 031, 896 3,390, 093 The shipments of! 9 11 were enough to supply every inlhabitant of Cuba, man, woman, and child, witht a p)air of shoes a,(d given an extra pair to 750,000 of tllhemn. From thle Unitedl States tlhe Cuban people buy a large part of their footwear, their imported foodstuffs, most of their lumnbcr, andl only a small percentage of tleir cloth and clothing. rTlie1 business methods tliat have led to illcreased trade ill many other lines would assuredly be no less fruitful in the cotton-goods tra(de. FISH AND DAIRY PRODUCTS. Cuba's imports of dried, salted, pickled, and otherwise preserved fish amount to an average of approximately $1,200,000 annually. Somewhat more than two-thirds of tlils is dried and salted codfish, the "bacalao" of common use in the island. The sources of supply CUBA AS A BUYER AND SELLER. 15 of this product are Canada, Norway, and the United Kingdom. The volume of trade with the respective countries varies from year to year. Norway's sales in 1908 amounted to $443,206, Canada's to $382,793, and those of the United Kingdom to $103,436. In 1910 Canada led with $371,120, to Norway's $266,502. The sales of the United States are insignificant. The island is a good market for condensed milk, butter, and cheese. Imports of recent years have been as follows: Articles. 1907 1908 1909 1910( 1911 Milk.-......-.. — —.... —..-... ---..... - - $1,147,014 $1,284,947 $1,176,043 $1,475,745 $1,823,216 Butter............. --- —- 302,022 350,820 274,819 352,170 424,978 Cheese.-..-.-.. —. --- —--------—.. --- —-- 488,944 535,348 357, 675 417,387 408,837 The distribution of purchases varies from year to year, but the United States has a good share of the trade in condenlsed milk. Denmark has a long lead in the butter trade, and Holland dominates the cheese business. COFFEE PRODUCTION AND TRADE. Official statistics of Cuba's prod(uction are not available, but the Santiago Chamber of Commerce reported, not long ago, (ubla's output of coffee as 3,000,000 pounds in 1902, 6,800,000 pounds in 1905, and 19,000,000 pounds in 1908. The crop of 1910 is reported as 23,5()(),000 pounds, valued at $5,170,000. The Guantanamo Valley, in tle Province of Oriente, was until about 1850 the location of an extensive coffee industry. There is no physical reason why Cuba should not produce all the coffee, of superior quality, required for domestic consumption, with a large surplus for export. All except a small fraction of its present import requirement, valued at about $2,500,000 yearly, is obtained from Porto Rico. Tea is used in small quantity, and the wines of tlhe country are bought clliefly in Spain. It is impossible, without making too extensive a volume, to anlalyze in detail the hundreds of different comnodities bougllt in foreign markets by the merchants for sale to the Cuban peop)le. Their requirements are those of all developed comlnunities, subject only to the conditions of environment. As a rule, thle ilmportinlg merchants place large orders and carry heavy stocks. This is necessary because of the time that must elapse between the pIlacitlg of an order and the receipt of tie goods ordered. The Cuban people are free buyers whenl they have money with whicl to buy. CUBA AS A SELLER. Approximately 85 per cent of Cuba's tot al exlports are represented by the products of tile cane fields an(l the tobacco fields. The purchasing power of the island dlepen(ls uI)on the success of those crops from year to year, and thle material increase in foreign purchases in tile coming years depends largely upon tlhe expansion of those industries. To measure properly tlle extension of the sugar indlustry it is necessary to drop back to tlle years prece(ling tlle revolution of 1895. The annual prolduction for the period 1886-1890, inclusive, averaged 650,000 tons. The McKinley tariff act, by which raw 16 CUBA AS A BUYER AND SELLER. sugar was put on the free list, and improvements in the mechanical processes of sugar production greatly stimulated the industry, and. the average for the next five years was about 935,000 tons, the maximum being reached in 1894 with 1,054,214 tons. The effect of the revolution was an almost imme(Iiate suspension of the industry. The crop of 1896 was only 225,.221 tons afld that of 1897 was 212,051 tons. The crop made in 189D9, theo first year of the American occupation, was about 300,000 tons. With the restoration of peace and order, the industry revived, and the crop of 1903 reafched the average, of the crops of the years immediatel l)re(cediniig the revolution. The last 10 years have seen a rapid(lextension of the industry and the output of the season just closed is estimlatedl at 1,800,000 tons. SUGAR CROP IN RECENT YEARS. The crops of recent years are reported" thus, the year indic~atingr the grinding: Years. Tons. Years. Taom. 1903.-1, --- —----------— t003,873 1908 ------------------ 969, 1 75 1904-......... ------- 1,052,273 190)9 --- —------------- 1,5r-21,818 1905 ---------------— 1, 183,347 1919 --- —-------------- 1,805,000 1906 --- —----------- 1, 229, 7:36 1911 ------------------ 1, 460, 000 1907 --- —------------— 1,441,910 1912 -'1_ --- —------— 000 --- 1E stimnated. The variation from year to year is (lue mainly to the weather conditions und~er whicht the crop is gtrown and ground. Withi an excelptional and improbable but not impossible combinatioii of favorable seasons, Cuba might be able, with its piresent equijpment, to produce 2,000,000 tons of sugar, or practically double its p)ossilble prodhuction of 10 years or so agro. The remarkable extension of the indlustry is attributable to larger planting andl improved- machinnery on the older plantations and to the establishment of a iuumber of new enterprises, more esjpecially to tile latter influence. AMERICAN CAPITAL IN SUGAR IND)USTRY. The conditions of the indlustry were ably presentedl in a recent report by IDeputy Consul Genieral ii. P. Stlarrett, stiat ione(1 in Ihb'l,na. The, report was p~rinted in thre Daily Consular andl Tradle. Reports for June 10 1912. The treatly (of reciprocity between the 1Un11itedl States and ithe IRepulllic of( bI Which was n~ecgotiate(L inl 1902 allowed a preference (If 20 per cent in. the (1(1tv on1 Cubanl suigar (eItleriniig thle, UniteI(1 States. Since, that (kite CubIa has (Intere((1 1)OT1 perio(l of dleveloplllCIt theat 11a1 excee(ledl the 1)re(lictionls of the most 0})timisti(. Vast niew areas of land haive beeii brought tinder cultivation1, -new muils hiave b)(en erectedl, 01(1 mills have been remnodeledl and imnproved, an1(1 proje(cts IrI (oil foot for many -ad1(itional mills to be bulilt in the near future. So greit lhas l)( ( this recetTA (levelopmflelt theat- it, can sa~fely be saidl that if the p~resent l( Ifivity (cont inues Cuba will be in a fair way of becoming the largest pro(lucer (of supOc1r if) the worbld. Thle relations betwAeen Cuba and1( the Unitedl Statles lhae been. so c(lose (hiring thie la-s~t few years theaty it is interesting to ohbserve to juist wax h Pxt(en Americ(a1(n cajii4al has investled ill the Cu11ban sugaIr industry. A careful est inite( of this nelIiltin nills, ilands, raiflroa(ls, ando others equipment dlevoted- exclusively to the industry, but niot including mortga~ges, gives a total of $54,000,000. in thits estimate, however, are CUBA AS A BUYER AND SELLER. included a few companies which were organized in the United States and hold charters granted by different States, but whose stock is ownedl by persons other than Americans. Their investment amounts to a very small percentage of the whole. T'he ldistribution of this total investment through the different Provinces of the island is as follows: Pinar del Rio, $750,000; Habana, $3,000,000; Matanzas, $5.750,000; Santa Clara, $14,500,000; Camaguey, $4,700,000; and in Oriente, $25,300,000. There are in the island at the present time 173 active mills, of which 34 are wholly American owned and 2 partly controlled by American capital. Another interesting fact is that American-owned mills produce nearly 35 per cent of the total sugar output of Cuba. In Pinar del Rio they produce over 22 per cent; in ltabana, -15 per cent; in Matanzas, 14 per cent; in Santa Clara, 26 per cent; in Camaguey, 58 per cent; and in Oriente more than 70 per cent. From this statement it can readily be seen that in the Provinces of Cainaguey and Oriente the sugar otutput was largely from American mills, and, on account of the American mills now building and being plannei l in those Provinces, these percentages will be increased still further within the next two years. Sugar in western Cuba has about reached the law of diminishing returns in agriculture, but the prediction is that eastern Cuba-Santa Clara, CanImguey, and Oriente Provinces-will continue to develop and expand until restricted by the lack of available land or until some unforeseen disaster overtakes the industry. COST OF PRODUCTION AND PROFITS. The impetus given the industry by the recent high prices and the favorable outlook for a continuance of at least a very remunerative price in the future has drawn the attention of many American capitalists to the profits in this field of ell(leavor; and in view of this interest it would seem that a brief description of the methods of (culture and the cost of production, together with an estimate as to the cost of estai)lis]hing a complete sugar estate in Cuba, might be of assistance. With tilis object in view the writer has collected, from planters, engineers, and investors in the ind(tstlry, data bearing on the cost of production and the profits to be expected. It lmust be stated, however, that these figures are only appIroximate and many factors tend to mahe themn vary, such as the location of the plant, price of labor, and whether European or American machinery is used, but the endeavor has been to be very conservative in the estimate as a whole. Let us take as a basis a sugar estate which will produce 100,000 })ags of sugar of 320 pou(nds each per annumi. The amount of land for all p)urposes —fields, roa(lways, pastures, timber tracts, sites, etc.-should be about 20,000 acres, an(l goo(I lan(1 of this character would cost $6 to $10 per acre, according to fertility of thle soil an(d nearness to transportation facilities. The total first investment for such an estate would be abl)out as follows: 20,000 acres of land, at $10....................................... $200,000 Clearing and planting 5,000 acres, at $50 -.......... —... --- -- 250,000 Oxen and carts..-.... ----............................... 60,000 Railroad and equipment............................................... 260, 000 W harf................................................................ 40,000 Sugar mill and house..... —...........................-..... 800,000 Oflice, store, dwellings, hospital, and barracks..- —..-............... 40,000 W orking capital ---...-......................-..... 50,000 Total................................-........ 1,700,000 Taking these general fitgures as a basis, it would be necessary to p)lIant tlie, first year 5,000 acres of cane, which, at an average of 30 tons per acre, woitl(l prodlmle 150,000 tons of cane per annum. Allowing a "rendimiento" or sugar extraction from tlie cane of 10 per celt, w(ould give a pro(luction of 90~ raw sugar of 15,000 long tons, or:'3,(;00,00 )poMnd(s in all. Thle average net price for Cuban raws f. o. b. (il)a for the past 10 years, but not iIcltuding tlie high prices of 1911 and 1912, was 2.25 cents per pound. It nimist be stated here, however, that the high prices of 1911 and the favorable outlook as to future plrices will co(si(leral)ly raise this average. This pro(diiction of raw stugar woul( give approxiinately 1,000,000 gallons of molasses, and the price for which this coulll 1)e sold would b)e about 3~ cents per gallon f. o. 1). (luba. Thus the following statemient shows tlie gross annual income to be: 33,600,000 pounds 96~ raw sugar, at 2j cents............................. $756, 000 1,000,000 gallons molasses, at 3- ( cents.................................. 35, 000 Total incom e.................................................... 791, 000 18 CUBA AS A BUYER AND SELLER. In such a mill located near the coast, with no railroad freight to pay on its product and with efficient management, it is safe to say that the cost of producing this amount of sugar, including cultivation, harvesting, transporting the cane to the mill, railroad operation, mill operation, administration, maintenance, depreciation, insurance, taxes, and all other operating expenses, would not exceed $550,000, or at the rate of 1.6 cents per pound. The difference between the gross income and the total annual cost would therefore be $241,000, or slightly in excess of 14 per cent on the investment of $1,700,000. This, as has been stated above, is a very conservative estimate of the costs and profits obtained from the operation of a modern sugar mill under favorable conditions in Cuba, as the figures for the total investment and those showing the cost of production are probably higher than they would be under skillful management, while the price received for the products would undoubtedly average slightly higher than the figure given. For instance, if such a mill had sold its product for the high prices which obtained during the latter part of 1911, it would have produced a gross income of over 1,400,000, or more than 80 per cent on the whole amount invested in the plant. Careful students of the industry claim that on the basis of a period of, say, 10 years there is no reason why a mill properly located and managed should not produce an average net income of 15 to 20 per cent on the actual investment. TOBACCO PRODUCTION AND TRADE. The production and manufacture of tobacco ranks second in the industrial activities of Cuba. While the plant is produced in practically all parts of the island, the superior leaf that has made Cuba famous for its cigars the world over is a growth of comparatively limited areas, almost of mere patches, in the western part of the country. That leaf comes from areas of light, sandy soil that are found in the central and western parts of the Province of Pinar del Rio. The next in grade is the growth of the Partidos district, in which is included the eastern part of the Province of Pinar del Rio and the western part of the Province of HIabana. The leaves of this district make superior wrappers, but lack the choice and delicate aroma of the celebrated Vuelta Abajo leaf. The third in importance is the yield of the Remedios district, in the Province of Santa Clara, near the middle of the island. Tthe product of the eastern end of the island is of inferior quality, and little if any of it finds its way to foreign markets in any form. The tobacco crop of the island varies in quantity and to some extent in quality from year to year, the result being determined mainly by weather conditions. The total value of the crop ranges from $40,000,00() to $50,000,000, and approximnately two-thirds of the product is shipped abroad. Thlie exports (duiing recenit fiscal years have been as follows: Leaf. Picadura. ('igars. (Cigarettes. Years.......... Poutnds. Value. Pounds. Value. Nuimber. Value. P]'ackages. Value. 1900 - 24,586,760 %$8,940,40 165 000 $90,502 204,971,393 $10, 2418,569 9,375,976 $234, 399 1901-..-.- 26, 232,690 9,539, 160 167, 438 91,3 29 213,425,089 1~0, 671,254 10,000,715 250,017 1902 28, 705, 820 10, 427, (iSO 1,43 790 78, 430 208,508,550 10, 425, 427 11i670,155 291,753 1903.......... - 35,209,880 12,655, 1 25 161,051 60,445 204,848,643 12, 395,531) 13,197,201 364,660 1904....2.... 36;,232, 81( 12, OS8, 225 251 131 87,225 206,781,001 12,155,80(4 16,820,666 474,819 19(052)......... 2902S,41S 12, t16, 866 212,178 80,273 224,068,189 13,620,468 15,894,972 440,329 1906...-.- 33,343,846 13, 753 280 314,717 92,81 6 240,268,775 15,363,035 15,482,551 395,576 1907 --...- 22,340,435 15, 496, 175 311,264 150,966 197,984,247 12,842,503 15,348,186 423,709 1]908.. ----. --- 24,364,504 1t6, 0(X6, 024 294,783 124, 781 211,797,779 14,776,627 12,608,724 371,936 1909 --- —.. - 45,527,0415 20, 072, 68t 347 )018 133, 589 191,111,133 12,529,804 10,260,679 275,231 1910-....-... 46,593, 60 17,789,350 6S3 1,02 178,607 172,828,306 11,856,402 11,244,940 335,332 1911.........- 35,20),(X0(00 16,888, 761 491 480 177,466 178,768,063 12,542,070 13,506,648 379,446 CUBA AS A BUYER AND SELLER. 19 TREND OF EXPORT TRADE. Tile total mlerhandise exports from Cuba during the last 1() fiscal years have leerl as follows: Year. a Years. Valrs. Value. 1902 -f$).. -.................. —.... $51,073,789 1907.......-..-.... S0,765,937 1903 -................................ 7 7,848,693 1908...... —.-...-..... -97,447.447 19)(04-1......................... 93,122,352 1909...... —......-. -... --- —- ------ 115,637, 321 19)(5................................... 99,162,459 1910 - -..................... —....- -144 036, (97 1906................................. 105,199,325 1911..................... 128,542,.03. The period 1900-1904 marks a time of political adjustment and economic restoration, the return to the trade volume of tlhe years preceding the revolution. The much larger export figures of tle later years show the result of industrial expansion, of new and larger sugar mills, of new enterprises, and of investment of foreign capital. EXPORTS OF PRINCIPAL CLASSES OF MERCIANDISE. Tle following table shows the outward movement of commodities, ly p)rincipal classes of merclhandise, for fiscal years: Articles. 1907 1908 1909 1910 1 1911,Animals and annimal products: Anim;als --...- ------—. ----. ---.. $20,740 $7,409 $38,871 $21,543 $17,763 Ii(les and skins... --- —----------- 956, 869 765,944 1,030,811 1,990,621 1,707,434 Animal producl ts.............. 102 136 99,328 60,981 96,253 88, 062 Sugar, and manufactures of: Sllar, crude and refined.... —.. 69,554,419 55, 685,247 70, 996, 726 99, 365, 172 5, 168,933 Molasses........................ 921, 312 890, 86 1,196,899 1,545, 705 1,197,433 Con fectionerv...................- 33,047 44,613 43,159 50, 810 48,000 Fruits an(d grains: Fruiiis -.. —. --- —-—........-. 2,174, 348 2,094, 89 2, 326, 54 2,194,749 1,8,35,952 ( rains and vegetables............ 994,903 525, 284 643,369 553,277 437,732 Sea prolucts: Tortoise shell -.. —...-....... -.... 61,796 57,224 53,153 46,536 39, 2:,5 All other slells..... -........ 909 988 1,195 3,870. Sponges-..-... -..........-... 319,247 348,823 280,128 318,153 299, 1:9 Mineral proulllts: Asphalt.......- -............. 34,166 32,396 27,347 47,037 13, 711 Iron, co pper, and manganese ore.. 2,482,340 2, 34,97 ) 2,543, (08 4,137, 968 3,874,172 Old lmetals.... ----............... 300,111 140,061 116, X73 42,6i24 162 Forestry prolducls: Vee!tab)le fibers...-.......... 82,464 67,225 71,712 53, 096 48, 40,lum her andt t.imbr......- -... 2, 375, 733 1, 453, 395 1,436, 045 1, 561),583 2,109, 89l) l)yewoods and tanning woois... 15,205 216.-.......... 5 41) TIol)acco: tlUnmanulfactlred-................. 15, 496,175 16, 006, 024 20, 072, 681 17, 789, 350 16, 838, 7;61 Man l factllred l.................... 13, 417,268 15,273, 344 12,938,624 12,370, 341 13,098,982 Miscellatnecolss.- --......... 11 llev, honeycol), et(.......... i602,845 736,145 892,144 80i, 752 747,.852 I isl illed lihlors -284,420 405, 643 378,710 318, 798 431, 543 O()ler articles... —. --- —-—.... —.... 343,591 369, 087 413,244 239, 908 174, 446 Total -........-.........-. 110,573,045 97,389,123 115,562,594 143,553,151 12, 227,782 1Reexports -........-.......-........ 191,892 5, 324 74,727 483, 546: 14,256 Money lc-.........-..-.. —...-......... 4, 047, 909 14,675,020 1, 26, 546 2,7.'6 636, 27 Grand:t total -..,.-........... 114,813,846 112,122,467 117,563,867 144, 03)9,43: 129, 178, 65 I I 20 CUBA AS A BUYER AND SELLER. BUYERS OF CUBA'S CHIEF PRODUCTS. According to Cuban statistics, its principal products have been distributed as follows: Articles and countries. 1907 1908 1909 1910 Sugar....................... United States.................. Molasses....................... United States.................. ---United Kingdom.................. Fruits......................... United States......................... Leaf tobacco....................... United States................... Germany....-...-................Austria-Hungary................. Canada.-................-. ---Argentina.......... -.. ---. --- —-—. — Spain.............. Cigars and cigarettes..................... United States......................... United Kingdomn................ Germany........................ Canada-..... --- —------—.......... --- France.. —... ----—........ --- Chile....... —. —......... — Australia... --- ——.. --- —-—. —...Argentina............................ Spain........................ Hides and skins, raw................... Germany..-.......................United States............ Ores, iron, copper, aind manganese -... —. United States..................... Wood, unmanufactured................... United States................... Germany.................... United Kingdom...................... France..... ---.....-.............-.... Cacao..............-........... United States................. United Kingdom...................... France. --- —------------—...... Germany................... Vegetables........................ United States.................. Fibers, vegetable, un manufacture..... G ermany...........-................ Sponges......................... United States...................... France...-...-..-.... --—....... Germany.................... — United Kingdom..................... Honey and wax.... —............... United States............. (erm any........................... B elgium.............................. Ium, aguardiente, etc................... Canary Islands.................. Uruguay ----—. --- ——. ----.. —. --- —. United Kingdom ----—....-....-..... United States...................... Costa Rica.............. ---.. France.............. ---......-.. ---Argentina....................... $69,554,419 69,310,451 921,291 682,579 180, 472 2,174,348 2.166, 155 15,496, 175 14,584,578 362, 477 247,625 175,267 25,430 24, )40 13,266, 302 4,902,763 3,790,217 1,521,510 567,949 429,993 367,102 276, 915 254, 360 193, 664 956,391 466, 113 433,912 2,482, 340 2,431,635 2, 346, 979 1,711,516 304, 166 92,142 41.065 818, 952 437,093 4,215 192,480 67,178 174,677 171, 660 79, 113 67,629 319,247 149, 401 141, 620 12,475 5,940 602,845 274, 895 266, 432 4, 043 284, 420 95, 638 54, 276 48.719 9,864 9,500 13. 807 3,111 $55,685,247 55, 684.885 890,814 517, 609 296,746 2, 094, 889 2,090,023 16., 006, (24 14,082,754 741, 697 200,727 194,509 267,272 227, 443 15, 148, 563 4, 492, 169 4,453,744 1,964. 875 542, 165 1,019,757 265, 829 413, 054 490, 3:37 415,981 760, 893 399, 647 276, 176 2, 384,970 2,381,734 1, 427, 335 833. 226i 146, 535 251, 9f65 124, 909 240, 868 54, 529 138, 131 19,6 47 28$3, 604 282, 12(; 64. 712 54,295 348, 823 95,948 194,230 34, 602 7,905 736, 145 270, 72( 326, 141 89, 270 405 643 33, 402 104, 132 76, 1 6f 60,731 84,157 26,802 5,637 $70, 996, 726 70,981, 102 1, 193,809 674. 508 434, 98 2, 326, 854 2,323, 404 20, 072, 681 16,485,741 2,085,204 199,800( 300,035 322, 997 326, 223 12, 663, 393 3,735, 997 4, 155,75 0 1,506. 373 421,344 737,728 262, (i79 250. 108 287.91X 592, )58 1. 029.52S 202, 735 805, 873 2,543, 06s 2, 542,7 9 1, 417, 0)26 907, 685 175, 615l 193, 987 39, 491 488, 114 27O,469 )j() )(;) 6(, 180 143,219 $37, 03'5 154.204 147, 750;9, 524 49,772 280,3 12 112, 507 119, 27() 21, 58)) 10, 5164 892, 4,4 338, 316 356. 637 102.145 378,710 52,012 94.,258 72, 708 24, 756 2:3, )000 53,700 28,395 $99, 365, 172 93,051,343 1,544, 49) 958, 567 538, 650 2, 194, 749 2, 189, 829 17,789,350 14, 625, 830 1, 671,563 176,713 425,075 323,412 202, 8S8 12, 035. 009) 4, 000, 09)6 4,081, 499 1, ) I 1, 1KG$)) 499, 888 (10), iS8 255,448 373, S)34 428, 7 14 223, 490 1,989,573 905, 8(i() 909, 577 4, 137, 96() 4, 119, 9.'63 1, 560, 583 860, 522 254,922 192, 9623;)'t 1.1. 19111 $,S5, 168,9 33 85,081,6 24 1, 195, (;.;5 720, 619 476, 682 1,835, 952 1. 830, )72 1, 888, 76 1 14,319, 155 791,046 36$3, 761 12,921,516 4, I311. 141 3,976, 124 1, 18, 463 683, 437 29(), 212 1, 697, 314 421, 669( 975,109 3,874. 172 3,872, 2() 2,109, 890( 1,222,33S 310, 19( 3.47,307 368, 6j) 250, 829 125, )082 -.. 194, 767 -- - - 2 1, 996 — ) 183, 2346; 18Ii, 3:37 176,34)0...... 45, 75(6 46, 701 16.4(7 $36, 999 3 18, 153 29)9. 1]39 1 3(, 222 10 (), 582 105, 323 11 t,5)5 8,452 57, 1(63 49, 458 - 8(6,752 747, S52 287, 541..-... 332, 253 ----... 11. 840) --..,3 slx. 7!Xs..;i1, fi;3: 318,718 431,543 54,587 --—....... 106, S0 -—........... (;4, 5(00..... 27,779 -—..... i6, 35 -..... 15............ 1 Preliminary statistics; trade by countries not available. TRADE RELATIONS OF THIE UNITED STATES ANI CUBA. The markets of the United States take about 85 per cent of Cuba's total exports, while American merchandise represents only about;,W0 pei cert of the imports of the island. This fact has been frequently used in criticism of Cuba's commercial attitude toward the United States. The argument is quite unfair andl entirely unwarranted. International trade is not at all a matter of senti CUBA AS A BUYER AND SELLER. 21 ment. It is the result of the operation of two forces, buying demand and selling lressure. Practically all of the imports of the United States are the result of buving denland. The merchandise is needed or wanted. The sugar, tobacco, hides, ores, woods, and all else are needed, andl( the Cuban market offers what is wanted, and offers it at prices and in con(dition more satisfactory to American buyers thaill are price s 1and conditions in comp)eting markets. Amlerican p)urchases from the, island are made because (of advantage to the butyers. A largle part of the sales to Cuba atre lllmade on the samle balsis of bIuying d(leman(l. The merchants of the islalnd btuy American wheat flour, American pork products, coal, lumber, and various other commodities because of existing special advantages, and( no sellin effort is required to hold the Cuban market. In other lines, such as cotton cloth, boots and shoes, sugar-mill machinery, tan many others, selling effort, is re(juired an(d the measure of success corresponds closely to the vigor an(. the intelligence of the effort. RECIPROCITY TREATY. Anmerican exporters hold an advantage over their competitors in the Cubaln market by virtue of a reciprocity treaty concluded D)ecember 11, 1902, the ratifications being exchanged March 31, 1903, ap)proval (iven by Con(lgress 1)ecenber 17, 1903, and the treaty made effective Decemlber 27, 1903. By the terms of article 1 -All articles of lerclhan(dise beiing the product of the soil (r industry of the United Staltes whlic(h a've nmow imported into the l',epublic of Cuba free of (lduty, an( all articles of merchlandise 1)eing tihe plroduct of the soil or industry of the Rep}ublic of Cuba which are now impiorte(! into the United States free of dutly, shall continue to le so adn-itte(l b)y the respective co-)untries free of duty. Article 2 provides that dluring the term of the conventionAll articles of merch]andise. n(ot included in the foregoing article 1, anld being the product of the soil or industry of tlie Republic of Cuba imported into the United States, shall b)e aldmitte( at a reduction of 20 per cent of the rates of duty thereon, as provide(l l)y tlhe tariff act of the United States approved July 24, 1897, or as may be provided by any tariff law of the United States subsequently enacted. Article 3 provides that (lurinlg the term of the conventionAll articles of merchan(lise not included in tlhe foregoing article 1 and not hereinafter enumerated1, beinig tlie proliduct, of tlIe soil or industry of tlie United States, imp)orled inti thle Repjtublic of Cuba shall be admitted at a reluc(tion of 20 per cent of tlie rates of duty thlereon as now )rovide(l or as may ihereafter be provide(l in the custom:is tariff of said Re)ll)blic of (Clba. Article 4 contains thlre(e spec(ial groups of mercblandise wlhich, on entering Cuba from tlie Unite( States and being thle pro(luct of the soil or indlustry of thle United( States, are accorde(d r ates more favorable tilan that accorded l)y article 3. They are as follows: Schedule A.-To b)e admitted at a reduction of twenty-five (25) per centumi: Machinery and apparatus of col)pper or its allys or mnlchines and apparatus in which copper or its alloys enters as the coimponent of chief value'; cast iron, wrought iron, and steel, and mainufactures thereof; articles of crystal 111d glass, except window glass; cotton an(l manufactures thereof now classified undter partagraplhs 114 and 116 of the Customs Tariff of the Republic of (Cuba; ships anod water-lborne vessels of all kinds, of iron or steel; whiskies and brandies; fishl, salted, pickled, smoked, or nmarinated: fish or shellfish, preserved1 in oil or otherwise in tins; articles of pottery or earthenware now classified uldl(er )paragraphs 21 antd 22 of thle Customs rTariff of the Republic of Cuba. Schedule B. — To )e a(dmitted at, a redullction of thirty (30) per centum': Butter; chlemical and lriharmaceutical products an(l simple drugs; malt liquors in bottles; nonalcoholic beverages; cider; mineral waters; colors and dyes; window glass; complete 22 CUBA AS A BUYER AND SELLER. or partly made up articles of hemp, flax, pita, jute, henequen, ramie, and other vegetable fibers now classified under paragraphs of group 2, class V, of the Customs Tariff of the Republic of Cuba; musical instruments; writing and printing paper, except for newspapers; cotton and manufactures thereof, except those now classified under paragraphs 114 and 116 of the Customs Tariff of the Republic of Cuba (see Schedule A) and except knitted goods (see Schedule C); all articles of cutlery; boots, shoes, and slippers now classified under paragraphs 197 and 198 of the Customs Tariff of the Republic of Cuba; gold and silver plated ware; drawings, photographs, engravings, lithographs, cromolithographs, oleographs, etc., printed fron stone, zinc, aluminum, or other material, used as labels, flaps, bands, and wrappers for tobacco or other purposes, and all the other papers (except paper for cigarettes, and excepting maps and charts), pasteboard and manufactures thereof, now classified under paragraphs 157 and 164, inclusive, of the Customs Tariff of the Republic of Cuba; common or ordinary soaps now classified under paragraph 105, letters "A" and "B," of the Customs Tariff of the Republic of Cuba; vegetables, pickled or preserved in any manner; all wines, except those now classified under paragraph 279 (a) of the Customs Tariff of the Republic of (uba. Schedule C.-To be admitted at a reduction of forty (40) per centum: Manufactures of cotton, knitted, and all manufactures of cotton not included in the preceding schedules; cheese; fruits, preserved; paper pulp; perfumery and essences; articles of pottery and earthenware now classified under paragraph 20 of the Customs Tariff of the Republic of Cuba; umbrellas and parasols; dextrin and glucose; watches; wool and manufactures thereof; silk and manufactures thereof; rice; cattle. The remaining articles cover certain details desirable and necessary in the observance of the convention; specifically exempt tobacco from the benefit of any concession when imported into Cuba; providle that the respective concessions "shall be preferential in respect to all like imports from other countries;" provide for possible changes in rates and for continuance of the treaty "for the term of five years from date of going into effect and from year to year thereafter until the expiration of one year from the (lay when either of the contracting parties shall give notice to the other of its intention to terminate the same." AMERICAN TRADE WITH CUBA. The commerce between the United States and Cuba for the last five years, ending June 30, is given in the following tables compile(l by the Division of Statistics, Bureau of Foreign and Domestic Commerce: IMPORTS FROM CUBA. Quantity. Value. Articles. --- —------------- ----------------- 1907 1908 1909 1910 1911 1907 1908 1909 1910 1911 Articles, the growth, etc., of the United States, returned.... free................................................ 202. 873 269,721 292,814 $304,303 $267,790 Asphaltum, crude................................ tons..dut. 5,016 3,976 7,174 13,873 14,027 20,362 17,983 36618 73,455 73,233 Beeswax..............................................lbs. free.. 331, 942 264,984 385,906 501,533 417,968 93, 702 76,431 122,260 147, 489 125,206 Bones, hoofs, and horns, unmianufactured..................free - --- 39 630 23,487 38,203 45,567 44,664 Brass, fit only for remanufacture.....................lbs..free.. 723,810 222,340 751, 084 322,886 284, 875 114,973 22,876 76,010 33,421 24,592 Chemcals dg d, a10.511 3.753 1,419 12,804 1,281 Chemicals, drugs, dyes, and medicines.................... -................:........... Cocoa or cacao, crude, and shells of...................lbs..free.. 3, 710383 297,073 1,905, 606 1.208,511 740.641 445, 1 78 54,042 221,488 123,150 75,055 Coffee................................................ lbs..free.. 7,987 1,342 88.557 338 53,350 956 322 10,074 76 6,000 Copper, manufactures of: Pigs, ingots, bars, etc........lbs..free. 758,294 486,038 201 712 355,618 374,070 125,395 66,315 18,767 36,303 36,596 Fibers, vegetable, and textile grasses................tons.. free 95 7 21 1 4, 139 328 123 45 131 Fish.......................................................dut................................... --- 7634 12,231 9.759 8,267 9,436 Fruits and nuts: i Fruits- Bananas.................................bunches1. free............. 2,477,543 2,407,918 2,223,210 2,670,200 1.273,826 875,272 891,773 841,327 897,314 ffree........................ 36, 517 29,444 38,365 43,234 29,402 A ll other............................................ Allother......................,dut. |....703 017 960,746 1, 251,128 1,386, 916 1,040,222 Nuts- Coconuts............................................ fre..................................... 6, 2 9, 3 6, 2 2, 9 8 8............................. Coconuts........... free! '! 262,822 195,535 166,326 126,396 98,381 A ll other.............................................dut..........i.............. 5, 7 4 0. 6 All other~ ~ ~ ~ ~ ~~~~~~~~~dut. lag~~~~~~~~~5 4.479 143 190 1.961 lbsfree.. 855 38,955 64,003 4 979,692 3,819,111 10,768 7,180 7,109 547.515 401,105 Hides and skins (except fur skins)..................... 340173 3 1168 d u t, 3 40 173 1,808,203 7 1,168,26....... 346, 615 131,94 5.9 1,0 Hide cuttings, raw, and other glue stock.free..................d 3,30,173 1,808,203 9 7,5943 653,394 116,......8001 fHide cuttings, raw, and other glue stock................!.......fe..........................i.,... 25, 211 16,997 49.241 19,130 15,817 Iron and steel, and manufactures of: Ironore...................................... tons..dut.. 584,670 646,443 658,402 1.327,212 1,.231,916 2,137,784 2,275,625 1,915,034 3,997,497 3,665,212 A ll other..............................................dut....................................................... 28, 921 30,443 16,084 29,116 46,465 Manganese, oxide and ore of......................... tons. free. 19,376 20,331 3,019 2........... 175,525 182,972 12.689 26........... Meat and dairy products...................................dut................................... 171,211 6,213 40300 32.332 4,042 Oils: Vegetable /free.......................................... 926 1797 1049 8,211 782..s........................................... lut..................................I...................... 14,183 14,989 17,286 3,256 4,358 Shells, unmanufactured....................................free.!..........2....8......................... 248 114........... Spirits, wines, etc.: Wines.................................dut................................................ 5,748 1,271.... 1,399 1,584 3,141 Sponges...................................................dut.. 158,360 125,779 105,805 139,316 100,370 Sugar and molasses: Molasses........................................galls..dut. 23, 315, 770 17,847,297 20.775,184 29.024.493 20.029,704! 710,909 554.147 725,502 1,035,705 703,273 Sugar, not above No. 16 D. S.......................... dut. (2) (2) (2) (2) (2) 70,637,288 58,320,582 68,857.770 93,543,897 81,682,466 Tobacco: J ( ( ( Leaf..............................................lbs..dut.. 20.374,043 17,971,739 26.471,339 25.206,801 23,719,509 13,590,876 13,114,774 15,797.203 14, 128,780 14,203,922 Manufactures ofCigars, cigarettes, etc...........................lbs..dut. 740,565 734,357 588.810 650. 641 728,937 3,889.520 4,163,269 3.460,252 3,829.906 4,218,730 A ll other............................................ itt- - - - - - - 3 i j 3 0 05 ~~~~~~~All~~...other.dut.........................................i 3,789, 3,249 3,397 i 5,500 7 5,883 1 Quantity not stated prior to 1908. 2 Quantities imported were as follows: 1907, 3,236,466,419 pounds; 1908, 2,309,189,286 pounds; 1909, 2,862,035,718 pounds; 1910, 3,509,657,596 pounds; 1911, 3,347,598,428 pounds. IMPORTS FROM CUBA-Continued. Quantity. Value. Articles. 1907 1908 1909 1910 1911 __. 1909!1-1 o I~~~~11 1907 Vegetables................................................. dut...d t.................... $149,565 Wood, and manufactures of: I i Cabinet woods- Mahogany................................... M ft.. free.. 3,254 2,415 2.025 1,797 2,976 187,011 All other................................f............................ 986. 679 free........... 1,805 A ll other............................. 3......... 44 All other free and dutiable articles...................................................................... 659561 j --- —--— i --—........ 59, Total free of duty........................................................ 4. 73.859 Total dutiable............................................................ 92 867,831 Total imports of merchandise..................-................................i._. 97,441,690 _ _........ 1908 $241,778 150,793 543,047 25 182,002 585,145 1909 $149,394 112,859 535, 332 12 184,720 919, 247 1910 $171,962 1911 $181, 152 2,999,830 3,404. 366 80,284,862 93 317,827 83,284,692 196,722,193 EXPORTS TO CUBA. Agricultural implements, and parts of: Plows and cultivators, and parts of.................................. All other................................................ Animals: Cattle..................................................N o.. 24,062 Hogs................................................ No - 9,614 Horses..-................................No.. 2,895 Mules..........-......... —............. No. 1,612 A ll other............................................................... Brass, and manufactures of................................ Breadstuffs: Bread and biscuit.................................... lbs.. 683,901 Corn........................................... bush.. 2, 70, 598 Oats.............................................bush - 747,098 Wheat flour..........................................bbls.. 808,323 All other.................... —..................... —......... Brooms and brushes.......................................... Candles............................ lbs. 1,982,197 Cars, carriages, other vehicles, and parts of: Cars, passenger and freightFor steam railways...................................... For other railways........................................ All other.............. Cement.................................................. bbls.. 261, 912 I I i i........... i...................... I 7,586 17, 083 1,085 2,191 449,876 1,695,115 323, 701 742,923 2,062,234 350,021...................... 2.196 207 15,842 3,168 760 1,874 764 903 -......... --- —------ 364,617 319,760 1,723,696 2,376,974 119,428 255,577 752,575 791,850 1, 621, 972 1, 415, 255 315,708 335,695 I........... 328 8,023 308 1,366 389,931 2, 225,073 246,419 846,685 1, 759, 532 $68, 236 27,098 439,795 93,757 287,000 250.997 50,152 152,400 42.159 1,600,082 325,349 3,121, 846 305, 817 25,214 184, 385 $85,171 51,439 146,781 99,830 135,810 291,521 57.903 145,293 31,637 1, 230,241 177, 588 3,554,000 232,577 31.854 188,028 $106,573 49, 736 40,349 101,882 103,503 109, 240 17,133 105, 810 28,808 1,335,700 69, 624 3,819, 747 300. 572 37, 703 131,595 108,454 187,493 600,821 833,354 822 2,436 C 188.208 204,549 tJ 815,411 1,092,041 3,705.045 4.001,275 118,822,992 106,308,193 122,528,037 110,309,468 $170,509 $198,245 98,272 146,694 t 8,642 12,330 33,024 65,213 t 181,195 44,235 t 118,448 209,330 r 10,447 13,155 145,010 164,213 27,914 33,494 1,661,144 1,322,095 124,801 100,088 4,638,414 4,268.658 257,442 317,525 31,004 27.774 106,875 135,415 275,784 791,555 344,136 549,189 393. 346 410, 405 458,063 611,195........... 717,313 528,592 149,992........ 53,097 155.597 246.630.386, 063 529.258 297.142 428, 704 402,588 532, 740 421,917 Chemicals, drugs, dyes, aid medicines: A cids................................................................ Medicines, patent or proprietary....................................... A ll other.................................................... Coal: Anthracite.-......................................... tons.. 25. 472 Bituminous...............................-......... tons.. 696, 232 Coffee: Green or raw.............................s...............bs..,317 890 Roasted or prepared 1............................... lbs.. 1805,542 Copper, and manufactures of................................... Cotton, manufactures of: Cloths................................................ yds. 15.917,045 W earing apparel............................................ All other.................................................... Earthen, stone, and china ware........................................... Eggs-.................................................... doz.. 4,889, 701 E xplosives........-........... - -............................... Fertilizers........................................tons.. 14,131 Fibers, vegetable, and textile grasses, manufactures of: Cordage...........................................lbs.. 623,967 All other...................................................... Fish........................................... Fruits and nuts: Apples, green or ripe........................ bbls.. 18,864 Fruits, preserved............................................... All other.......................................... Glass and glassware -............................................ Grease, grease scraps, and all soap stock........................... Hay................................ tons.. 2,919 India rubber, and manufactures of.................... Instruments and apparatus for scientific purposes, etc............ Iron and steel, manufactures of: Rails for railwavs —Steel..............................tons.. 21,338 Sheets and plates-Iron...............................lbs.. 8.100,416 Structural iron and steel.............................. tons.. 5. 251 W ire.............................................l. bs.. 16,775,252 Builders' hardware, and toolsLocks, hinges, and other builders' hardware........ Saws and tools................ —... ----............... Car w heels........................................... N o.. 4 4 7 Castings, not elsewhere specified................................... Cutlery...................................................... Machinery, machines, and parts ofElectrical m achinerv............................................ Printing presses, and parts of..-..-................... Pumps and pumping machinery................................... Sewing machines. and parts of...................................... Steam engines, and parts ofLocomotive..-.............N....-..-......-.No.. 82 Stationary......N................... No.. 163 All other.......................................................... All other.................................................. I................................. I........................ 35,651 25.943 32,551 702,678 663,048 785,622 13,074,166 11,341.713 20,635,625 3,242,461 72,247 55,552.............................. 17. 825,742.- -------- 4, 682, 950 17, 183 21,050,456......i.57 3,055, 706 12,'212 12,875,834.......... 3, 220, 037 14, 208 377,025 693,734 770,535.....................::........................................... 13,580 6.....,479.......... 16, 699.. 49..0........... 16,835................ -- I............76,822........ -... 451,309........... 744,064 38.112 97,808 945,394 2,013,913 20, 243, 247 1, 88,310 195,954 214,694.......... 97, 760 19,151,546 990,754.. 385.454...232,445........... 74,060 4, 499, 211 1.030,641............ 307,547 21,418 595,012 817,287 66,333........ 92,221........... 74,069 21,928 65,158.......... 59,285..... 108.936.......... 202,208.......6.... 235,993 564 52.687 283,924...620,467 30.991 623.972 16,968. t697 235,227 15. 657 280.104 24,109,986 431,146.......... 172,603........... 400,904 2.841 37,915 62.230.......... 642,267. 42,267........... 92.079........ 7 944.936 1l1;. 798. 330. 463 23 765. 770 316 113. 284.... 305. 344..........i 1,406,732 1,045,969 322,364 217,043 91,224 911,612 208,917 756,690 44, 576 56,866 72, 738 53,421 65,296 104,583 181,592 252, 595 125, 765 243,388 535 271 583.238 166,741 675, 441 618,113 179.115 320,936 33,763 87.822 37 278 230,614 36,096 144.254 232. 270 594,198 125, 763 305. 304 1,480,687 1,273.390 330,685 302, 889 136,406 660, 742 137, 611 512, 445 64,043 61,007 53,778 60, 496 75,649 116,037 143 389 273, 685 75,278 292,139 488, 432 444,221 284,677 475,257 454,957 147.982 241,973 15,177 48.712 44.313 131,144 20,977 120.396 234, 258 149.090 85, 467 305,981 1,340,752 85,440 74,762 423. 230 387,344 771,734 846,938 155,471 110,525 1,997,659 1,832,080 1,468,347 1,427,252 320,571 8.133 75,336 68,171 93,060 67,113 421,928 476,466 933,968 1,074,871 140.708 160,971 2,125, 794 2,546,841 2,455,687 2,978,369 7,898 38,269 72,524 116,742 932,383 1,346.083 415, 120 530,822 296,995 359,699 Q 120.606 196,503 t 750,135 948,443 M 165,964 405,211. 559,808 882,952 > 65,339 70,649 1 79.087 78,874 65,436 90,262 68,770 93,337 C 62.353 97,713 k 114.737 139.062 [ 205,341 198,767 d 368,728 495,343 43.363 10,772 276,884 430,318 Z 568,511 707,962 r 1,105,733 904,028 m 345, 306 450,974 483,125 814.697 r 534,092 602,927 M 162.484 222,722 343,181 344,059 15,284 21,957 71,998 83,132 51,547 52,304 179,300 184,810 17,789 31,857 175.945 335,426 306,972 364,030 122.749 153.967 88, 613 144.671 487,407 666,010 [' 1.684,182 2,823,738 cn 19,535 5, 759.105 11,439 21,458, 294 15.232 10,563,173 7,189 17. 289.215 40,042 13.,248,174 7. 829 20,341,902 1,'794 3,468 1,833............... I 59 23 211 178 ---------- ---------—:: 21 242........... EXPORTS TO CUBA-Continued. Art iles. Iron and steel, manufactures of-Continued. Nails and spikesCut..............................bs.. Wire, and all other (including tacks).................bs. Pipes and fittings...................................... Scales and balances......................... All other................... -—.............. Jewelry, and other manufactures of gold and silver............ Iamps, chandeliers, etc. (except electric)...................... Leather, and manufactures of: Leather....................................... Manufactures ofBoots and shoes..................................pairs.. Harness and saddles................................... All other......................................... Malt.......... --- ——. —.........................bush.. Marble and stone, and manufactures of................. Meat and dairy products: Meat productsBeef products............................................. Hog productsBacon...........l.......................... Ibs. Hams and shoulders, cured..........-....-... —....lbs.. Pork, pickled................................... lbs. Lard...........- -.............-....... l...bs.. Lard compounds, and other substitutes for lard.....lbs.. Sausage and sausage meats...l...................l.bs.. All other meat products.................................. Dairy productsB utter.............................................. lbs.. Cheese............................... lbs.. Milk, condensed............................... lbs.1, Musical instruments, and parts of............................... Naval stores: Rosin, tar, turpentine, and pitch......................bbls.. Turpentine, spirits of.................................galls.. N ursery stock................................................... Oilcloth and linoleum......................................... Oils: MineralCrude..................................galls_ Refined..................................... galls.. A ll other.......................................... Quantity. 1908 1909 1910 1911 1907 1908 1,474,570 11,082,893 1,883,421 2,599,060 5,213,958 5, 92, 20 4,664,495 4,713,823 7,860,562 7,327,145 20,507,403 40,145,348 49,065,870 38,913,593 51,181,326..... i................................... -.....~ — ~-........ -!....-. -......-... 1,275,687 1,976,901.................. 2,205, 133.. --- -.......... 2,578,923...... —..- - - -........... 3, 031, 896........... - - - -- - - -...... —..........62,977........... 62,9-77 2,640.................... 4,390,165 4, 702,330 9,350,351 27,549,388 22,465,984 2, 143,271 178,956 134,609 21,779 138,139.......... 6,375,910 3,694,927 6,408,780 24,193,898 28,023,623 2,316, 959 264,346 101,507 22, 756 131,257........ - 7,045,647 6,223,775 2,879,283 3,876,362 5,830,391 7,382,763 33,239,041 34,968,597 24,379,309 25,175,162 2, 177,828 2,105,230 300,370 328,734 166,436 167,509 6,882,648 4,257,387... --- I,.. — $31,788 149,679 702,688 67, 412 1,366,395 50,696 103,984 32, 721 2,145, 415 167,229 66,489 43,362 68,961 167,567 618,293 607,040 727,816 2,948,487 1,731,427 281,648 183,178 71,930 25,833 812,031 49,659 90,545 82,259 30,202 55,009 $25,44 126, 56 1,010,29 72,57 1,096, 61 56,73 97,45 231,29 2,577,96 112,99 59,74 1,81 23,26 179,40 393,17 572, 74 775,15 2,501,36 1, 797, 03 254,89 111, 14 37, 76 24,39 905, 06 43,47 92,87 75,39 17,09 42,47 565,97 433,93' 201,90. Value. 1909 1910 1911 6 $37,586 $50,736 $102,559 i3 120,902 193,697 180,403 )1 816,050 795,149 1,105,121 '0 49,949 75,473 100,238 Q 6 1,235,067 1,701,286 2,278,968;1 27,166 22,885 23,286 i8 88,581 94,863 93,788 11 326,171 344,785 552,303 16 2,529,615 2,958,103 3,390,693 8 115,442 143,925 146,996 2 73,703 134,008 69,175 2..9 43,488 41,526 31,546 0 1288,277 80,914 119,115. '1 623,929 834,349 748,361 r:3 450,439 429,248 568,763 6 536,764 672,151 824,403. 4 2,494,525 4,094,352 3,992,092 M 8 2,293,659 2,275,912 2,388,812 t 3 273,631 267,429 261,474 r 6 111,131 173,533 119,644 M 9 64,089 79,658 78,604 3 19,952 30,957 31,081 8 675,301 523,283 323,833 6 35,887 57,592 54,710 9 90,644 110,796 177,454 5 58,595 67,187 46,109 8 37,191 30,723 20,872 9 52,989 62,841 60,700 1 537,820 427,793 333,621 2 483,897 515,205 571,350 4 245,827 252,485 260,124 25,087 27,031 116,055 60,984...1,.755..................7..... I... 1. 4,713,586 5,228,400 4, 506,918 4,270,205...................... 5,040,720 5,493,314 3,601,788 4,898,831....................... 455,980 499,647 474,211 Paints, pigments, and varnishes -...........-..-............ —................................................... 200,778 163,701 [ Paper, and manufactures of: Books, maps, engravings, etc-....... --- —---------—..... ---..-... -—.....-.......1,752 307,197 Printing paper........................................bs.. 7,119,309 7,647,423 | 7,005,657 8,578,258 10,251,407 211,355 261,255 W ritinc paper and envelopes........................................................................................ 144,966 118,347 A 11 oth er —..........................................................................!................................. 196,362 338,041 Perfumeries, cosmetics, and all toilet preparations.......................... 300 14, 028........... Photographic goods......................... --- —--. --- —--.. - -........................ I............ -........... 52,849 33,503 Plated w.are --- —---—.............. ---................. —.......................... 35,124 25,541 Salt-l --- —-—............. - - -....-...-..-.-.-. —. —.. ----l bs.. -30,379,727 30,749,094 34,883,642 33,967,245 39,116,676 92,291 97,654 Silk, manufactures of....... —.. —..-................-........................................... 66,748 76,961 Soap — 88..8..1..0.2....9.................................................................................. 82,888 102,069 Spirits, wines, and malt liquors: Malt liquorsIn bottles.......................................doz. qts.. 165,200 100,665 78,486 58,467 50,7 55 240,403 137, 703 In other coverings...-.................... ---.....galls............. 40 922 35 890. 12 Starch..................................................lbs.. 636,762 403,204 158,613 48,378 237,286 16,677 10,293 Stationery: Pens, pencils, mucilage, and paste- - - -33,998 48,1406 Stationerr: Pens, pencils, mucilagne, and paste.~.~:::::::::::::...................................... 33,998 48,406 Tin, manufactures of............................................-.......................-...................... 98,829 100, 804 Tobacco, manufactures of: Plu-...................................................bs.. 217, 428 188,099 j 207, 787 252,745 248,908 43,953 42,073 A ll other.................................................................................................... - 74,350 75,439 Vegetables: Beans and dried peasb................................ bush.. 199,514 124,970 i 110,083 147,076 109,764 439,593 290,046 Potatoes.............................................bush.. 999,649 725,S00 393,518 507,359 1,594,395 826,998 632,171 A ll other........................................1...............................1............................. 113,556 99,526 Wood, and manufactures of: Unmanufactured-.................................................................. 52,005 8,841 Tim ber-........-............... — - - - - - - - - - - - - - -........................................................................... 66,529 9,519 LumberBoards, planks, deals, joists, etc................... M feet.. 119,801 108,554 79,655 139,944 131,771 2,330,865 1,870,715 Shooks............................................................................................. 211,269 289,528 Staves and headings............................................................ 4,152 11, 474 Al other articles..................................................................................... Total dom estic exports..........................................8............................................ 148,330,913 46,500,800 4 Total forein exports-97..4..31...6606........................................................ 9736 6960,56 Total exports --- —------------------------------------------------------—.................................... Total exports of m erchandise 47,161,306............................................................................... 20 74 47, 1,306 4 Quantity not stated prior to 1910. 189, 464 325,599 223,931 101,323 310, 756 18,900 59,395 22,973 115,188 102,533 133, 528 262,242 231,657 258,300 123,973 296, 677 24,372 62,715 23,285 120,712 92,346 138,820 369,363 209,301 356,411 117,319 390,980 31,624 96, 740 29,993 155,073 130,944 166,271 116,713 84,452 71,872 O 461 19 392 Cr 6,269 1,829 6,241 44,161 49,472 72,605; 51,638 105,804 150,797 45,165 50,591 46,084 67,589 14,603 14,971. 250,629 397,718 305,589 ^ 350,989 382,252 928,755 d 119,497 102,445 115,570 12,960 1,634 30,104 100 25,732 62,094 1,241,895 2,315,446 2,220,933 4 266,503 293,984 331,134 t 17,387 11,138 6, 778 18,487 84,116 80,630 482,588 591,782 757,653 r 24,386 9,575........... 216,319 230,045 299,819. 1,021,982 1,192,964 1,186,204 y 12,629,871 51,794,848 59,962,955 1,283,485 | 1,063,910 746,107 13,913,356 52,858,758 60,709,062 IMMIGRATION. The further economic expansion of Cuba will undoubtedly depend mainly upon an increase in population. That increase, as elsewhere, will depend upon natural increase plus immigration. The present tide of arrivals from other countries is difficult of measurement. The officially reported immigration averages about 35,000 a year, a very large percentage of it being Spanish. Much of it is a mobile element that flows in when there is demand for labor and flows out again when the labor market is oversupplied. The records of immigration afford no clue to the actual increase in population through that channel. The calendar year 1910 may be taken as a fair illustration. The arrivals numbered 37,764. Of these, 31,205 were males and 6,659 were females. By nationality 30,913 were Spaniards, 1,358 were classed as Antillanos, doubtless including Haitians, Jamaicans, and other West Indians; 1,572 were from North America (United States), 993 from England, 595 from Porto Rico, and the remainder, in smaller numbers, from 30 or more different countries. The immigration is Spanish, and male in great majority. Considerably more than half of the arrivals are classed as "laborers," "workmen." The next in order were "comerciantes," 1,754; mariners, 733; carpenters, 361; cigarmakers, 332, etc. Some of these people doubtless have established a permanent residence, but there is no way by which the number can be determined. The stay of others was determined by their own convenience or by the work and wages offered them. The census taken under American auspices in 1899 showed a population of 1,572,797. There has been since that time an increase of nearly and possibly quite 50 per cent. The census of 1907 shows immigrant arrivals for the five years, 1903-1907, as 155,252, and the report states that the net increase in population from tlhat source is less than half that number. On that basis, the increase of the last four years may have been about 70,000, largely Spanish. The total American population is now about 7,000. PUBLIC AND PRIVATE ENTERPRISES. In the last few years an almost endless number of plans and projects have been devised for the actual or the allegced economic advancement of the island. Many, perhaps most of them, have depended for their execution upon appropriations from the Government, federal or local. Some have been carried out and( others have failed. Some have been worthy and some have been little else than downright swindles. In their aggregate they hlLave been a large and assorted lot. In railway extension there hlas been a good deal of actual achievement in branch lines and feeders, opening to possible employment important tracts of land previously idle. At the time 28 CUBA AS A BUYER AND SELLER. 29 of the first American occupation, in 1899, the railway system of the islandl, exclusive of the private systems of the sugar plantations, included somewhat less than 1,000 miles of track. Including lines under construction there is a present mileage of not far from 2,500. Effort is being made to secure concessions and subventions for still other lines. It is probable that within the next few years railway connection will be completed practically from Cape Antonio, on the west, to Cape Maysi, on the east. From the lines forming what may be called at spinal railway, connections and feeders will run to all the principal cities atnd towns an(d through or into the most promising agricultural areas. SYSTEM OF HIGHWAYS. The railway system is being supllellmentel by an ellaborate system of higlways. During the adlrlinistration of President Palnma plans were made to build new higchways (as rLapidly as the (condition of tlhe national treasury permitted. These plans were in process of execution when the second intervention came. Governor Magoon made road building tlle special feature of his administratioln. The important sum of $13,361,406 was expended and some 355 miles of highway and 120 bridges were add(ed to the national system during the Magoon administration. The Gomez administration has extended the system to the extent of its ability. The island is now approaching, if it has not already reached, a point where the matter of a )prodlucing population to nmake use of roads and railways is of greater importance than the ftacilities for transportation. MA1I AND TELEGlRAPI SERVICE —HABANA HARBOR WORKS. The mail service of the island is fairly efficient and the telegralph system is controlled and operated by the post office department. Under a concession granted in 1909, the Cuban Telephone Co. is engaged in extending its connections to all of the principal cities and towns, affording long distance as well as local service. The old custom of loading and unloading cargoes in Habana Harbor by means of lighters between ship and shore will soon give place to a modern wharf system. Under a concession granted nearly 10 years ago, piers are being constructed with modern appliances for the rapid handlling of freight with an expected reduction of handling cost. The comln any holding the concession is authorized to build four piers, each approximating 600 feet in length and 160 feet in width, with fireproof storage sheds. OTHER ENTERPRISES AND PROJECTS. It is difficult to consider the economic situation in Cuba without getting into the domain of politics. The numerous public works and the semipublic enterprises completed, in progress, and projected affect, some directly and others closely, the trade of the island. Railways, steel bridges for highways, sewer and water systems for cities and towns, electric-light plants, telephone systems, and other enterprises of direct official operation or requiring official 30 CUBA AS A BUYER AND SELLER. concessions or subventions, or both, create a demand for tools and materials of many kinds, and appreciably affect the imports. So, too, does the employment in those enterprises of thousands of men whose clothing and much of their food must be imlortedl. It is not certain that the exports have been affected in even a reasonable proportion to the cost of these enterprises. Reference to the export tables shows that the large increase in Cuba's foreign sales since the revolution of 1895 has been in the sugar and tobacco accounts, especially in the former. Only in part do the new sugar and tobacco industries depend upon or derive material benefit fromn the new public-service enterprises. EASTERN CUBA. The development of the eastern end of the island calls for sl)ecial comment. In the early days of Spanish settlementt that section was the location of the official capital, first at Baracoa, on the northern shore near the eastern end of the island, and from 1522 until 1589 at Santiago. It was then transferred to IIabana. The Province of Oriente, the eastern political division, includes considerably more than a quarter of the total area of the island, and is the homne of about one-fifth of the present population. The indications are that it will grow in the next few years more rapidly than any other part of the island. Much of the Province is wild and mountainous and not at present available for industry and commerce, but the discovery of extensive beds of iron ore promises employment for many hands, and many thousands of now unused acres will undoubtedly be turned into cane fields. On the north shore there is a small and. shallow harbor at Baracoa, a fair harbor at Gibara, and a deep-water harbor some 15 miles long and 8 or 9 miles wide, known as the Bay of Nipe. On the south shore there is a harbor at Guantanamo, another at Santiago, and a third at Manzanillo. A short distance from Manzanillo is the mouth of the Cauto River, the largest stream in the island, navigable for light-draft vessels for 60 miles from its mouth. The interior of the Province is a maze of hills and mountains interspersed with valleys of great fertility. In the Province there is still a large supply of uncut cedar, mahogany, and other valuable timber. The natural resources of the region make it perhal)s the most promising section of the island for industrial investments, and its development is not likely to be long delayed. ECONOMIC RELATIONS OF UNITED STATES AND CUBA. Economically, the United States and Cuba are closely linked botl by natural trade conditions and by the reciprocity treaty. The fallacy, formerly widespread, that Cuba should buy from the United States because of "what we have done for her" seems to be disappearing. It is not to our credit that it ever had any foothold in tilis country. The merchants of the island are Spaniards and they could hardly be expected to cherish sentiments of profound gratitude for the part taken by the United States in tie establishment of Cuba's present government; but it is not true that they hold any feeling of international animosity that would affect their business interests. Their purchases are influenced by the same rules that CUBA AS A BUYER AND SELLER. 31 govern business the world over, by the salable qualities of tlhe merchandise offered them, by the prices and the terms of sale, by tlhe matter of proper and convenient packing, and by prompt delivery. The present American sales account with Cuba can be materially but not indefinitely extended. There is need of some articles that we do not have at all and there is demand for other articles of wlich we have no surplus for export. Tlere are, naturally enougl, certain tastes in matters of food and clothinlg tltat are slow in changing. In many ways the people of the island are becoming "Americanized" more or less unconsciously. Dollars and cents are crowding out pesos, pesetas, and centavos. But tllre is and there will be no change in tile fundamental principles of purchase and sale. Sales in Cuba are governed by tie same rules that govern sales in this country. No producer or merchant would for a moment think of sending "on the road" in this country a salesman wllo spoke only Spanish and knew no word of Englislh, yet salesmen hlave been sent to Cuba wVlh co:uld not even say lhow d() you do" in Spanisl. An Americtlan merclhant would not send to his customers in the United States a catalogue or circulars printed in Spanisll with commodities measured in kilograms, liters, or meters, yet tons of matter printed in English and giving prices of p)ounds, gallons, or yards have been sent to Cuba. Though probably somewhat less now tllan formlerly, tlhere is still a tendency to underestimiate t}e commercial intelligence of the merchants in Cuba; to assume tlat an article suitable for the, hoInme market is equally suitable for tle Cuban market; to expect Cuban buyers to accept "stuffed" or substituted shipments withl patience if not with actual joy; to disregard instructions regarding package, routes, and times of shipment, customs regulations, and otlhr details. Attention to tie reasonable requirements of customers is one of tlie conditions on which business is done in Cuba as it is elsewlere. EXTENT TO WilICiH TRADE MAY BE INCREASED. One-half of Cuba's imports of the last five years llave come from tie United States, or about $224,000,000 out of a total of $48,0()(),000. A very considerable part of tlls must be classed as nonc(oml)petitive trade, or practically noncompetitive, such as oir sales of lumber, bituminous coal, crude petroleum, pork and pork prodlucts, and wiheat flour, these alone amounting to some $20,()000,000 in 1911. To tliat migllt be added probably another $5,000,000 for minor articles in tle same class. A second group, of an importantt aggregate value, might be made up of articles in which competition is, for various reasons, limited and not seriously effective. Working from the other end, a list might be prepared showing a trade of large amount in which we can not expect any shlare of great importlance, and a second list miglit be drafted shlowing articles in tlhe demand for which American merchants are more or less landlicapped(. Between these two sets of lists there lies an (pen( market of a value of probably not less tan $15,()()(),0()0 and peIraps not more than $20,000,000 that miglit be brought to thiis counltry by an expenditure of selling energy and adherence to thlose accepted and( establlished business rules tlhat apply to all connmmercial transactions, domestic and international, tlhe world over. 32 CUBA AS A BUYER AND SELLER. PUBLICATIONS ON CUBA. Other publications dealing with Cuba issued by the Bureau of Foreign and Domestic Commerce are: Trade conditions in Cuba. 1906. By Special Agent Charles M. Pepper. (Special Agents' Series No. 5.) Cotton goods in Latin America; Part I-Cuba, Mexico, and Central America. 1909. By Special Agent W. A. Graham Clark. (Special Agents' Series No. 31.) Shoe and leather trade in Cuba and Mexico. 1909. By Special Agent Arthur B. Butman. (Special Agents' Series No. 33.) Customs tariff of Cuba, with introduction by Frank R. Rutter, tariff expert of the Department of Commerce and Labor. 1911. (Tariff Series No. 27.) Annual reports of consular officers, printed in Daily Consular and Trade Reports and in Commercial Relations of the United States. 0 ~;-rx a ii r ''i.F r.l: Ti~;;j,~ ~?. t~, 7 1 ~ ' "'; r,: i 1.! r.1Ix! - 1 V;: ~ *~ ..I ~i. - `r ~3 i;i j " iC / ' S r i ~j r 'j:;L" '! i-.;:" r ~! c;~ i i. "'I"'- v ]. 5 K ItI I 11) <3 I I.. FOR USE IN LIBRARY A u t h o r.................................................................................................................... T itle.................,........1...................,..........,,,..5. - 1,..,.^,..........,.'..e...'.....~..... D Signature....... ^ae............ SignatuAddress.......... Address................................................ '.......... Call Number K. -/ i ' V \ i f Volume Books taken from the building on this charge are subject to a fine of 25 cents a day. U. of M. 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