SPEAKING in round numbers, the commerce of Cuba during the last normal year aggregated about $100,000,000 of exports and a trifle over $60,000,000 of imports. From these figures it would seem that the balance of trade is about $40,000,000 in favour of Cuba. But this is more apparent than real. In one way and another Spain has annually turned away from the Island $40,000,000, which, had it been expended in Cuba every year, would have added immeasurably to the prosperity of the country. This money went to Spain in a variety of ways. Ten and a half millions of it were used in payment of a debt which did not justly belong to Cuba, and with which the people of the Island had been arbitrarily burdened without their consent. Large sums also went to Spain through the constantly changing Spanish civil and military officials, who regarded Cuba as their legitimate field for plunder. It has been estimated elsewhere in this volume that the total commerce of Cuba, had the affairs of the Island been honestly and economically administered, would have reached from $200,000,000 to $250,000,000, so prolific is the country, and so valuable in the world’s markets are its two staple productions, sugar and tobacco. To indicate more definitely the extent of Cuban commerce, the reports for 1893, which was a good year, are given below, presenting, among the principal exports from Cuba to the United States, the following:
In the same year the principal exports from the United States to Cuba, aggregating $15,448,981, were distributed as follows:
These tables show the extent of Cuban commerce with but one country, the United States; and though, naturally and logically, that is the country with which Cuba must always do the vast bulk of her business, the other countries of the world have not been shut out; the average annual amount of exports from the Island to foreign countries other than the United States fell between $13,000,000 and $15,000,000, and the imports were upward of $40,000,000, A casual inspection of the above table of imports to Cuba, covering only a portion of the articles taken from us by the Cubans, shows at once what the demands of the Island are for even the simplest necessities beyond bare existence. The million and a half people of the Island want our flour, our lard and pork, our oil, our barbed wire—our soldiers found samples of it strung around San Juan hill,—our manufactures of leather, our household furniture of all kinds, our locomotives and cars and steel rails, our saws and mechanics’ tools, our stationary engines and boilers, our lumber in its various shapes for framing and building, our locks and hinges and nails, our corn and beans and potatoes; our coal, our street cars and carriages, and any and every kind of the manifold things we produce in this country for the comfort and convenience and economy of mankind. In part exchange for these things, we get from Cuba sugar and tobacco, and control the markets of the world in these products; mahogany and all manner of beautiful hard woods; bananas and cocoanuts and fruits, pleasing to the palate and wholesome to the health; honey from the flowers; glycerine, no less sweet, from the fats of cattle; manganese and molasses; cigars and coffee; beeswax and birds, and the vast fields of tropical wealth and luxuries for the millions of our colder clime scarcely yet touched. The golden dream of Columbus and his followers, when they beheld for the first time the purple peaks of the strange land rising out of the sea before them, are as poverty and nightmare in comparison with what is actual and real, for the more material age of the twentieth century. The greatest obstacle in the way of Cuban commerce, and the peculiar disadvantage under which the Island laboured was in a large measure attributable to the fact that Spain compelled Cuba to purchase merchandise in Spain which could have been bought in other markets at prices far below the figures which Cuba was forced by these discriminating
The most casual observer and the person of the most superficial knowledge in trade matters must be well aware that Spain is by no means as good a market in which to purchase such commodities as are noted above as is the United States, or as is any other country, for that matter; yet Cuba, by reason of iniquitous discriminating duties, was forced to buy these commodities of the mother country, and to pay a higher price for them than that at which they could have been bought elsewhere. And not only was the price exorbitant, but the articles were of inferior quality, and, especially in the line of all machinery and the appliances In strong and hopeful contrast with this compulsory commerce is the amended American tariff of Cuba, which makes no discrimination whatever against the Cuban purchaser; and now and hereafter, so long as the United States Government controls the affairs of Cuba, the Cuban producer may sell his sugar, tobacco, fruit, iron ore, hard woods, and all that he produces to whomsoever he will; and he may buy what he wants from whomsoever he thinks sells cheapest Under the reciprocity of the McKinley Tariff law, Cuba and the United States were brought more closely together in commercial union than ever before in their history. No more competent testimony on this point can be adduced than the following extract from the report for 1892 of the British Consul-General at Havana: “It will be seen from the above article” [on the lack of reliable statistics] “that the difficulty—especially to a new-comer—of forming anything like a clear and accurate view of the commercial movement of the district is next door to impossible. But, unfortunately, there is one feature of a very unsatisfactory nature which stands out prominently and did not take long to discover, namely, that British trade with Cuba has almost become a thing of the past; and under the recent reciprocity treaty the United States of America practically supplies all the wants of the Island and receives all its produce.... “Machinery, which formerly was largely supplied by England, Germany, France, and Belgium, now nearly all comes from the United States; and the machinery required for the vast amount of sugar manufactured in Cuba is immense and of great value.... “The reciprocity treaty between Spain and the United States would appear to be mainly beneficial to the latter nation. “The effect of the recent reciprocity treaty between the United States and Spain in regard to her West Indian colonies has been to throw nearly the entire Cuban trade into the hands of the United States traders, with whom importers of goods from less favoured nations cannot compete, having to pay, by the terms of such a treaty, higher import duties.” As a further indication of the benefit of reciprocity between Cuba and the United States, and as a working suggestion of the commercial possibilities presented to the business interests of this country, the following extract from an article on the “Commercial Relations between Cuba and the United States,” by Mr. E. Sherman Gould, in the Engineering Magazine for July, 1894, is given: “The value of the sugar exported to the United States has no doubt frequently reached, if not surpassed, the sum of $60,000,000 in a single year. At any rate, it will surely be safe to estimate the total yearly value of all exports from Cuba to this country at that figure. This large sum must be paid back to Cuba either in money or in exchange of commodities. In regard to this alternative we must recall the fact that Cuba has no manufactures of any account except cigars; that all the implements and machinery used in sugar-making and all the textile fabrics used for clothing, and even many articles of food, such as breadstuffs, butter, salt meats, and ‘canned goods’ must come from abroad. That is to say, $60,000,000 worth of exports are sent by a country without “In this connection the following table, compiled from the records of the United States Treasury at Washington, and showing the total value of exports from the United States to Cuba for two different years will be of great interest, especially as it gives an idea of the varied character of American products which already find a market in the latter country. “This table shows that the balance of trade is largely against us, assuming our imports from Cuba to reach $60,000,000. There is evidently room in the Island for at least thirty millions more of American goods. The table shows also that about one-half of the value of our exports in 1893 consisted of breadstuffs, provisions, etc., while wood and woodwork amounted to about one-eighth, and coal, iron, hardware, and machinery entered the list for about a quarter of the total amount.
“The Western Railway of Havana, now in English hands, and recently extended from Havana to Pinar del Rio, in the heart of the finest tobacco region of the Island, has called largely upon the United States for its new work. Many hundred feet of iron bridging were furnished and erected by the Union Bridge Company of New York, the railway company being satisfied with the price, and their engineer, as well as the government inspectors, satisfied with the work. The cement used was also wholly or largely American, the American being adopted rather than the English, somewhat reluctantly, by their engineer, on account of the greatly reduced cost. The stone used for bridge-seats was American granite, and highly praised to me by the engineer, who, being a Scotchman, was naturally a good judge of the material. The fact merits attention, in estimating the value of the Cuban market, that the people are heavy buyers. There is very little “Enough has been said, I think, to show that Cuba offers a most inviting field for American enterprise. Her prosperity and even her very existence may be said to depend upon her commercial relations with the United States; the two are bound together by the strong ties of mutual interest, and everything points to the fact that, commercially, Cuba should be ours.... “I believe that if the trade, not only of Cuba, but also of the South American countries, were first poured into the United States as a receiving reservoir, it would be naturally distributed, directly or indirectly, over the world to better advantage than if distant and various nations were carrying on desultory and independent business relations with them. The purchasing power that would be gathered into and concentrated in the United States by such trade would be largely expended in procuring those requirements of an ever-advancing refinement and civilisation which Europe can, at present at least, furnish better than we can ourselves. We appreciate and want these things—none more so—and the wealth which a practical monopoly of the South American trade would give us would make us Europe’s best customer for those things of which she is the best producer. But this is a digression. “The Cuban market, like all others, is governed largely by fashion. Hitherto all supplies, except perhaps locomotives and “The market being such as it is, and, moreover, being for many classes of goods a new one, the agents employed in it should be carefully selected. Here, again, Americans are at a disadvantage. Very few of the commercial travellers who are sent out from the United States speak Spanish, whereas nearly all those representing foreign concerns do. The Americans are therefore obliged to put themselves entirely into the hands of agents and interpreters, which is always an unsatisfactory way of doing business. In view of the growing relations between the United States and the South American countries, it would seem as if Spanish should occupy a preferential place, in our educational institutions, over French or German. Our business is to invade the Spanish-speaking territories, whereas we are ourselves invaded by the European nations, and this fact necessitates “As regards the classes of goods most needed in Cuba it would be impossible and wholly unnecessary to particularise more fully in this paper. We may broadly say that everything needed in this country is needed in Cuba, within the limits imposed by the difference of climate. They want or can be led to want everything we can furnish that is good and cheap. “I may perhaps be here permitted another digression. We have heard a great deal in times past, and more particularly of late, of ‘overproduction,’ and it is supposed to account for many of our business troubles. Now overproduction is a strictly relative condition, and its remedy is either to produce less or to dispose of more. Political economists tell us that true material progress lies in commonising the good things of life, so that what to-day are the luxuries of the rich shall become to-morrow the ordinary possessions of the middle classes, who will, in their turn, relegate their previous simple comforts to the poor, thus establishing an ever-ascending scale of prosperity, and raising, as it were, the standard of poverty. It is impossible, I think, to deny the truth of this proposition, which dictates a levelling up, instead of the socialistic plan of levelling down. In this view it is plainly to be seen that we are not, and cannot be, in any danger from overproduction. What we and all the world are suffering from is underdistribution. The remedy, as far as the United States are concerned, is not to limit production, but rather to increase it even to its utmost possibilities and then launch out in quest of new markets. It is this policy which has given England her vast commercial supremacy in the past. She has never attempted to restrict the production of her manufactures, but her efforts have always been to open up new markets, until she has forced her way to the remotest regions of the earth. It is said that the sun never sets on the British flag; it certainly never sets on British manufactures. “In carrying out such a policy for the United States it is evident that the Spanish-American countries offer themselves to us as our natural field for enterprise. As already pointed out, our labours in this field would be of mutual advantage to them and to us, and in more ways than one. While receiving from us our Referring to the fact that the railways in Cuba under English control have had their machinery from the United States, the manager of the English railways in Cuba only so recently as October, 1898, informed the author that they had not only purchased of the United States in the past, but that they intended getting all their railway supplies for the future from the same source. Surely no higher tribute could be paid to the manufacturers of our country than this from an Englishman, whose people for hundreds of years have led all competitors in the industrial manufacturing of the world. And this is but a step in the giant strides of commercial progress the United States will make in Cuba, under the encouraging influence of a reasonable tariff, the abolition of all discrimination, the assurances of a stable government, and that proximity which makes Cuba one with us in temper, in trade, and in territory. |