THE question of the payment of insurgent soldiers and of certain legitimate indebtedness incurred by the insurgent government has an important bearing upon the civil, if not the industrial reconstruction of the Island of Cuba. This matter was referred to a commission of Cuban officers, consisting of General Garcia, General JosÉ Miguel Gomez, Colonel Manuel Sanguily, Colonel JosÉ Ramon Villalon, Dr. JosÉ Gonzales Lanuza, SeÑor Gonzalo de Quesada, and Mr. Horatio S. Rubens, who acted as interpreter. This commission came to Washington in November for the purpose of aiding in the pacification of the people of Cuba. General Garcia unhappily was taken ill of pneumonia and died. This delayed the work somewhat and took from the commission one of its strongest members. The commission had several informal interviews with the President, the members of the Cabinet, and finally with the author, who, as Special Commissioner for the United States to Cuba, took the testimony of these gentlemen and prepared a report on the subject for the consideration of the President and Secretary of the Treasury. The substance of this report is of permanent public interest, as it was the first official step towards the settlement of a question that must be adjusted before the entire Cuban army will disband and go to work. It also has considerable bearing upon the industrial future of Cuba.

The gentlemen comprising this commission were briefly informed by the author as to the work committed to him, namely, an inquiry into the economic condition of the Island of Cuba and the recommendation of such measures for the commercial and industrial reconstruction of that country as might appear advisable after impartially consulting all interests. They were told that so far as the United States was concerned, Cuba had won her economic and industrial freedom. That the work had been performed with scrupulous regard to the interest of the people of Cuba. That the aim had been the rehabilitation of its industries and the building up of the country generally with as little friction as possible. That in accordance with instructions received from both the President and Secretary of the Treasury the tariff of Cuba had been framed so that there should be no discrimination in favour of the United States, and that the same tariff laws would be applied alike to all countries, so that Cuba was now free to purchase her supplies in the world’s markets wherever they were best and cheapest, and not compelled to buy in a dear market, as under Spanish rule. They were furthermore informed that hereafter the revenues of the country were to be used exclusively for the economical and honest government of the Island and that the largest portion would not be drained away to pay the enormous interest charged (aggregating $10,500,000) upon an indebtedness which had unrighteously been saddled upon a people already bowed down under the double yoke of war and debt. Lastly they were asked to state fully and frankly, as citizens of Cuba, their views on any subject bearing upon the reconstruction of Cuba.

In reply, these gentlemen said, in substance, that they were entirely satisfied with the course the Government of the United States had pursued in relation to these economic questions, and realised the fact that Cuba had become free, commercially and industrially. They then proceeded to discuss the important problem of how the existing transitory condition of the Island could best be changed to a permanent civil life, without friction in Cuba or trouble and annoyance throughout the United States. Their purpose, they avowed, was simply to co-operate with the United States toward the restoration of order, without which, in their opinion, there could be no reconstruction of industries and no return of prosperity. Their purpose was, they assured the author, to advise with the people of the United States, to the end that everything might be harmonious and that the people of Cuba might get to work as soon as possible.

Speaking for all the gentlemen above named, Colonel JosÉ R. Villalon said:

The above gives a fair summary of the general tenor of the testimony taken, and it is believed fairly represents the views of these gentlemen. Testimony was also taken in relation to the payment of certain legitimate debts which, as these gentlemen felt, the good faith of the people of Cuba had been pledged to pay. On being asked the probable amount of this indebtedness, they said it was not in excess of $2,250,000 or $2,500,000. The first and most important matter and the one which, they insist, will have much to do with the pacification of the Island, is the payment of some sort of compensation to the impoverished Cuban soldiers. These gentlemen were asked if they had in their possession any estimate as to the number of soldiers, the length of service, and the amount of money necessary for the purpose they had in mind. An itemised account, they were told, would make a useful supplement to the interesting and instructive testimony given.

In compliance with this request, these gentlemen prepared and presented certain tables, with additional verbal testimony. This testimony was subsequently reduced to writing. It purports to be a statement showing the number of officers and privates of the Cuban army and their time of service. On behalf of Cuba, these gentlemen informed the author that had Cuba been recognised as an independent nation, their first duty would have been to pay all legal obligations contracted during the struggle for independence. They request that the United States, acting as trustee for Cuba, will give this subject a careful hearing and enable the people of Cuba to disband the army and complete the pacification of the Island. They recognise the fact that $3,000,000 has been appropriated for a purpose similar to this, but regard it as inadequate. The figures submitted by these gentlemen, as representing the pay which the insurgent army, in their opinion, has earned, are somewhat startling. The summary is as follows:

The pay promised the Cuban army is very much higher (except in the grade of generals) than the amounts actually paid the officers and men in the United States army, as will be seen from the following comparison of the salaries of the two armies:

It is not assumed by the gentlemen who prepared the above estimates that claims of such magnitude could be seriously considered by an independent Republic. The resources of the Island at present are entirely inadequate to shoulder such a debt. Upon the reduced basis of the salaries paid the United States soldiers, the reduction would be about one half, or less than $30,000,000, an equally impossible sum. On the other hand, that some aid should be rendered by the United States to enable these soldiers to disband and go to work would seem both feasible and just. It could easily be met by the revenue of the Island, and would have a decided effect in securing permanent peace and the early establishment of a stable government in Cuba. If done now under the guidance of the United States it would prevent excessive payment to the troops hereafter. In the same manner the liquidation of the small amount of outstanding obligation—not exceeding $2,500,000—might settle the debt question for all time to come. Especially if all other advances for these purposes were prohibited until such debt was adjusted to the satisfaction of the United States. In case the ultimate solution of the Cuban question should be, as it is quite within the range of probability, annexation, the independent government will not previously have had the opportunity of incurring improvident indebtedness, which ultimately may have to be assumed by the United States. In short, whatever may be done in this matter, or however it may be done, the United States should control and safeguard the finances of the Island for a considerable period. It has been very truly stated that should an independent government be established and recognised, the United States will no longer be able to control the financial legislation of the Island. It can, however, by the plan proposed, and very properly, not only save money for Cuba while under its military possession or control, but also prevent the making of unnecessary improvident or other loans by such independent government, except with the consent, or approval in advance, of the United States. This can be readily done, if, when making an advance for the benefit of Cuba, the right to apply the customs receipts and other revenues of the Island to the repayment of the principal and interest of such advance be reserved to the United States. In this way all reckless expenditure may be prevented and all speculative or independent bond issues be avoided and at the same time quick assistance be rendered those whose position at present is deplorable in the extreme.