Annual report of the [U.S.] Financial Adviser-General Receiver for the fiscal year… (run is from 1923/24 to 1932/33)

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Annual report of the U.S. Financial Adviser-General Receiver for the fiscal year… (run is from 1923/24 to 1932/33)
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Mixed Material
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Wash., GPO, 1925-

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4-trUS-1923-33
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HLL-D HAI 772; Hollis 005938270

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HAITI


ANNUAL REPORT
OF THE

FINANCIAL ADVISER-GENERAL

RECEIVER

FOR THE FISCAL YEAR

OCTOBER, 1924-SEPTEMBER, 1925


SUBMITTED TO THE SECRETARY OF STATE FOR FINANCE
AND COMMERCE OF THE REPUBLIC OF HAITI, AND
THE SECRETARY OF STATE OF THE UNITED
STATES OF AMERICA THROUGH THE
AMERICAN HIGH COMMISSIONER


W. W. CUMBERLAND
Financial Adviser-General Receiver
E. A. COLSON
Deputy General Receiver
W. E. DUNN
Director General of Internal Revenue


WASHINGTON
GOVERNMENT PRINTING OFFICE
1926




























NOV 19 1926
k k^L ?- .











CONTENTS
I Page
Imports ---------------------------------------------.........--------------........ 1
Exports--------------------- ----------_---------------------- 3
Balance of trade ---_------_ .------------------------ ------__
Origin of imports--------------------------------------
Destination of exports --------------------------------------------
Ports of entry of imports ------------------------------------------- 11
Ports of embarkation for exports------------------------------------ 14
Shipping ---------------------------------- ----15
Foreign commerce by months and by ports --------------------------- 21
Commodities imported ---------------- -- -------------------- 24
Commodities exported --..- -----------------.--------- 30
Customs administration --------- ----------------------37
Tariff revision -------.------------.--.----.---- ------------------ 37
Customs operations.. ---- ---------------------- ---- 40
Internal revenue service------------------------------------------- 51
Customs receipts. -------------- ---------------------- 54
Internal revenue receipts------------------------------------------ 63
Miscellaneous receipts--------------------------------------------- 65
Nonrevenue receipts --..------------------.----_---------------- 66
Governmental expenditures ---------- -------------------------- 67
Treasury position -------------- ----------------- ------- 78
Public debt----------------------------------------------------- 81
Accounting ------------ ---- ------------- 87
Disbursing office------------------------------------------------- 89
Supply bureau-------------------------------------------------- 89
Budget and finance law-------------------------------------------- 90
Currency-------------------------------------------------------- 91
Banking and credit------------------------------------------------ 93
Claims commission ----------------------------------------------- 95
National Railroad of Haiti----------------------------------------- 98
Personnel ------------------------------------------------------- 99
Conclusion.---.--.-------------------------------.--------------- 99
Annex: Internal revenue service------------------------------------ 101
Collections-------------------------------------------------- 103
Receipts by sources------------------------------------------- 103
Receipts by sources and by financial districts -------------------- 105
Internal revenue receipts according to sources and months ---------- 107
Receipts of rural communes .-- ---------------------------- 10&
Administrative and operating costs ------------------------------ 112
Administrative organization --------- ----------- --- 115
Personnel -------------------------------------- 115
Quarters and equipment----------------------------------- 116
Office routine------------------------------------------- 117
Digest of chief taxes collected_ -------------------------- 117
Emigration taxes ----------------------------------- 117
Income tax -- --------------------------------- 117
Stock and bond tax------------------------------------ 118
Occupational taxes on foreigners ---------------------------- 118
Public land rentals --------------------------------------- 119
III






IV CONTENTS

Annex: Internal revenue service-Continued.
Digest of chief taxes collected-Continued. Page
Recording of deeds, mortgages, and other documents- --------_ 120
Stamp service ------------------------------------- 120
Vital statistic fees----------------------------------------- 122
Steamship passage tax ---------_---__ ---_-----------___ 122
Consular receipts---------------------------------------- 123
Irrigation tax -------------------------- 123
Court fees--------------------------------- --- 124
Auctioneers' fees---------------------------------------- 124
Penalties and fines ------------------------------------_ 124
New legislation __------------------_----- ------- --------- 125
Appendix: Schedules--------------------------------------- 127










STATISTICAL EXHIBITS
Page
1. Value of imports and exports, and excess of imports or exports 1916-17
to 1924-25-------------------------------------------------- 6
2. Value of imports, showing countries of origin, by percentages, 1916-17
to 1924-25----- --- -------------------------- 7
3. Value of exports, showing countries of destination, by percentages,
1916-17 to 1924-25.-------------------------------- ---- 8
4. Value of total foreign commerce, by countries, in percentages, 1916-17
to 1924-25 ......------------------- -------------- --- 10
5. Value and percentage of value of imports, exports, and total foreign
commerce, by countries, fiscal year 1924-25--------------------- 10
6. Value of imports, by ports of entry; 1916-17 to 1924-25------------ 13
7. Value of exports, by ports of shipment, 1916-17 to 1924-25--------- 13
8. Value and percentage of value of imports, exports, and total foreign
commerce, by ports, 1924-25 _-------------------------------. 15
9. Net tonnage of steam vessels in foreign commerce entered and cleared,
by registry and months, 1924-25------------------------------ 17
10. Net tonnage of sailing vessels in foreign commerce entered and cleared,
by registry and months, 1924-25------------------------------ 18
11. Value of imports, by registry of carrying vessels, 1924-25----------- 19
12. Value of exports, by registry of carrying vessels, 1924-25_---------- 20
13. Value of imports, by months and ports of entry, 1924-25 compared
with 1923-24------------------------------------------------ 22
14. Value of exports, by months and ports of shipment, 1924-25 compared
with 1923-24----------------------------------------------- 23
15. Value of imports, by commodities, 1916-17 to 1924-25------------- 28
16. Quantity of imports, by commodities, 1916-17 to 1924-25---------- 29
17. Value of exports, by commodities, 1916-17 to 1924-25------------- 33
18. Quantity of exports, by commodities, 1916-17 to 1924-25- -------- 33
19. Quantity and value of five principal exports, by ports, 1924-25 com-
pared with 1923-24 .------ ---------------------------------- 35
20. Percentage of value of exports, by commodities, 1916-17 to 1924-25- 35
21. Quantity and value of exports, by commodities and months, 1924-25- 36
22. Receivership fund, 1916-17 to 1924-25--------------------------- 41
23. Expenses of Financial Adviser-General Receiver, by objects of expendi-
ture, 1916-17 to 1924-25-------------------------------- 43
24. Repairs and improvements to customs plant and equipment, 1924-25_ 44
25. Expenses of administration and of civil pay clerks, by objects of ex-
penditure and by months, 1924-25----------------------------- 45
26. Expenses of customs operation, by objects of expenditure and by
months, 1924-25------------------------------------------. 45
27. Distribution of expenditures from receivership fund, 1924-25 .------- 47
28. Costs of customs operation, by ports, and costs of administration and
treasury commission, 1919-20 to 1924-25 _--------------------- 49
29. Total cost of collecting each gourde of customs receipts, 1919-20 to
1924-25 .......--------------------------------------- 49
30. Total disbursements from receivership fund, by months, 1924-25 ---- 50
31. Operating allowance of internal revenue service-------------------- 52
32. Costs of internal revenue service, by objects of expenditure, 1923-24
to 1924-25------------------------------------ --- 53





IV CONTENTS

Annex: Internal revenue service-Continued.
Digest of chief taxes collected-Continued. Page
Recording of deeds, mortgages, and other documents_ --------- 120
Stamp service-------------------------------------------- 120
Vital statistic fees----------------------------------------- 122
Steamship passage tax------------------------------------- 122
Consular receipts----------------------------------------- 123
Irrigation tax ------- -------------------- 123
Court fees---------------------------------------------- 124
Auctioneers' fees---------------------------------------- 124
Penalties and fines---------------------------------------- 124
New legislation _----- ---- ----------------------------- 125
Appendix: Schedules ------------------------------------------- 127



















HAITI


ANNUAL REPORT OF THE FINANCIAL ADVISER-
GENERAL RECEIVER FOR THE FISCAL YEAR
OCTOBER, 1924-SEPTEMBER, 1925










HAITI
ANNUAL REPORT OF.-THE FINANCIAL ADVISER-GENERAL
RECEIVER FOR THE FISCAL YEAR OCTOBER, 1924-
SEPTEMBER, 1925
OFFICE OF THE FINANCIAL ADVISER-GENERAL RECEIVER,
Port au Prince, Haiti, January 8, 1926.
THE SECRETARY OF STATE OF THE UNITED STATES OF AMERICA,
THE SECRETARY OF STATE FOR -FINANCE AND COMMERCE OF THE
REPUBLIC OF HAITI.
GENTLEMEN: There is presented herewith the ninth annual report
of the commerce and finances of Haiti, which summarizes and extends
the monthly reports provided for in article 7 of the treaty of Sep-
tember 16, 1915, between the United States and the Republic of
Haiti.
It is gratifying to record that the fiscal year 1924-25, was one of
the best from the commercial and financial standpoints of any in
the history of Haiti. Distinct progress was evident in all aspects of
the economic life of the Republic, and the sound financial position
of the previous year was maintained and even improved. Finally, the
prospects for the fiscal year 1925-26 are unusually favorable, and
there are strong reasons for believing that the progress which has
been achieved in the past is of a permanent rather than of a transitory
nature.
IMPORTS
Total foreign commerce from October 1, 1924, to September 30,
1925, was valued at gdes. 198,206,635.1 Of this total imports have
accounted for gdes. 101,187,825, as opposed to gdes. 73,480,640 in
the fiscal year 1923-24. Thus there was an increase of imports of
gdes. 27,707,185, or 37.71 per cent. In fact imports were materially
greater than in any year since the American intervention, with the
exception of the totally abnormal year of 1919-20, when war prices
and the termination of the scarcity of shipping which characterized
the latter part of the war dnd post-war periods permitted the exporta-
tion 'of virtually two coffee crops within a single year. Characteristic
of the year 1924-25 was also the sustained activity of imports in
1 One gourde equals 20 cents (United States currency) and the gourde is, by
law, exchangeable on demand and without expense at the fixed rate of 5 gourdes
for 1 dollar (United States currency). Accordingly, the value of Haitian currency,
as measured in dollars, does not fluctuate.


95618-26--2





2 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

comparison with excessive imports alternating with periods of stag-
nation, a situation which had been only too prevalent in previous
years. Thus, subject to the expected differences between the active
and the dull seasons, the import trade was evenly distributed through-
out the year, as indicated in Table No. 14, showing a maximum
value of gdes. 11,213,540 in December 1924, and a minimum of
gdes. 5,307,025 in June 1925, with an average of gdes. 8,432,319.
One of the principal reasons for both expanding and, relatively,
evenly distributed imports throughout the year is that continued
maintenance of law and order has permitted the peasants to go to
the markets at frequent intervals whereas before the American inter-
vention such trips were made as rarely as possible due to the danger
of roving bands seizing products brought to sell or commodities
purchased in the markets. Frequently also when men ventured to
the cities they were seized for the so-called revolutionary armies.
As a consequence, trade with the peasants was conducted chiefly
through the women, but it is easy to perceive how adversely the con-
ditions just described reacted on commercial activities.
Although there was no overstocking of merchandise, so also there
was no scarcity, and the consuming public was at all times enabled
to satisfy its requirements up to the extent of the modest purchasing
power which exists in Haiti. There was, however, some indication
of excessive importations during the final months of the fiscal year
with the result that the year 1924-25 did not close quite as auspi-
ciously as it opened.
In view of the serious fluctuations in the general level of prices
which seem to be characteristic of post-war economic conditions, the
presentation of statistics of values is without particular significance
if it be established that values have been the plaything of unstable
prices and do not represent definite trends in the physical volume of
trade. In the year under review, however, price levels have been
relatively constant, and therefore the 37.71 per cent increased
imports represented an approximately equivalent increase of the
necessities, comforts, and luxuries of life for the consumption of the
Haitian people. It is hardly necessary to add that the Haitian
people could not have enjoyed this increased consumption had they
not also enjoyed increased purchasing power due to material ameliora-
tion in the economic conditions of the Republic.
Due to the growing importance of the Haitian market the steam-
ship companies have found it to their advantage to give better
service, and this has been evidenced by additional sailings, and in
some instances by decreased rates. At no time in its history has the
commerce of Haiti enjoyed more satisfactory steamship service than
at present.





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 3

EXPORTS
Expansion of exports was approximately equal to that of imports,
both in actual value and proportionately. From a value of gdes.
70,881,610 in 1923-24, exports increased to gdes. 97,018,810 in
1924-25, an expansion of'gdes. 26,137,200, or 36.87 per cent. On the
surface this improvement of the export trade should seem highly
gratifying, but, as will be shown later in more detail, analysis of the
export statistics indicates that the apparent growth was almost
exclusively due to the high price of coffee which prevailed during the
fiscal year in question and neither represented an appreciably in-
creased volume of coffee, nor of. exports in general. As the total
value of imports increased gdes. 27,707,185 in 1924-25, it is also
apparent that the abnormally profitable coffee trade was responsible
for the increased value of imports as well as of exports. Under
these circumstances the commercial situation is more perturbing
than gratifying, and there is every reason to believe that a sharp
decline in the price of coffee would unbalance the economic equilib-
rium of Haiti. And as it is universally admitted that coffee prices
in 1924-25 can hardly be expected to continue permanently, it
follows that the commercial and financial situation does not possess
such elements of strength and stability as would be highly desirable.
Indeed, there is considerable danger in permitting commercial policies
and financial commitments to be posited -on the continuance of
bonanza prices for one principal article of export. A "one-crop
country" is always in a precarious condition, but the danger is
accentuated when that one crop is experiencing considerable price
inflation.
BALANCE OF TRADE
Until practically the end of the fiscal year it had been hoped that
1924-25 would present an excess of exports over imports. The hope
was not realized, as there was an excess of imports of gdes. 4,169,015,
as compared with gdes. 2,599,030 in 1923-24. While it is true that
the percentage of imports over exports was low, amounting to but
4.30 per cent, it is easily demonstrated that the particular economic
situation in which Haiti now finds itself would strongly recommend
the desirability of an excess of exports rather than of imports.
It should not be implied from the foregoing that this office is
imbued with the old mercantilistic fallacy that large exports and small
imports measure the wealth of a given country. Just the opposite
may be true. For example, if a country is heavily in debt to foreign
creditors, and if the period of capital expansion has terminated with
the result that additional funds are not being received from abroad,
it obviously follows that such country must show an excess of exports
over imports so long as its obligations are being punctually performed.




4 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

This so-called favorable balance of trade, however, does not indicate
the wealth of the borrowing country but merely represents the
extent of its foreign indebtedness, provided such investments are
productive of a return in excess of interest and amortization charges.
If the borrowed capital is not profitably employed, as is sometimes
the case and as is particularly true of borrowing on Government
account, the excess of exports indicates an actual deduction against
the consumptive power of the borrowing country and is proof of
relative poverty rather than of relative wealth.
At the present time Haiti is supporting a rather heavy foreign
debt in relation to the per capital wealth and income of the population,
and also ownership by foreigners of productive property and com-
mercial establishments is relatively extensive when compared with
the total of such property and establishments. Under these circum-
stances a merchandise surplus of exports might reasonably be ex-
pected, if there be absent invisible items in the balance of payments
which might more than compensate for remittances on account of
the foreign debt and foreign owned property. However, as pointed
out in the annual report of this office for 1923-24, the invisible items
in the balance of payments are of material importance, chief among
which are funds brought or sent to Haiti by emigrants who have
sought employment in Cuba and disbursements of the American
forces of occupation.
For the fiscal year just closed it is estimated that values intro-
duced by the United States Marine Corps and by emigrants have
certainly amounted to gdes. 15,000,000, whereas payments abroad
for interest and amortization of the public debt and as return on
properties in Haiti which are foreign owned are estimated at gdes.
10,000,000. If these estimates be correct it follows that the balance
of payments, as opposed to the balance of trade, was slightly in favor
of Haiti.
As a matter of economic theory it is probably true that undue
stress is laid upon calculations of both balances of trade and balances
of payments and that for any single year or short series of years it
is at best futile and at worst misleading to attempt to calculate
balances of trade and of payments and to draw conclusions from such
calculations. Although almost any combination of these two classes
of balances may occur, in that a country with a so-called favorable
balance of trade may have an adverse balance of payments and vice
versa, and also that a given country may have both a favorable
balance of trade and of payments, or vice versa, for periods extending
even to several years duration, there can be little question that over
long periods of time the balance of payments must be in equilibrium,
i. e., that foreign credits are equal to foreign debits, account being
taken of all visible and invisible items. Any other conclusion would




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 5

imply either that the country in question is receiving from abroad
values for which it does not pay or else that the country is sending
abroad values for which it does not receive payment. As long as
economic and financial processes proceed in normal fashion such a
situation is chimerical. It would appear that an effective balance
of payments can only be prevented over a long series of years by
means of repudiation of governmental obligations or disregard of
commercial debts on the part of a debtor nation, or else by the cancella-
tion of such public or private indebtedness on the part of a creditor
nation.
During the fiscal year 1924-25 there were no important accessions
of foreign capital, with the exception of funds from sources connected
with emigration. On the other hand,.there were no important with-
drawals of foreign capital from Haiti, with the exception of the con-
siderable amortization payments which were made upon the public
debt. Moreover, there were no important failures on the part of
Haitian debtors of Haiti. It is therefore altogether probable that
during the fiscal year just closed the value of imports plus remittances
on account of the public debt and on account of foreign owned enter-
prises, including steamship freights, were very closely offset by the
value of exports and by funds introduced into Haiti by emigrants.
In brief, it is the belief of this office that the balance of payments was
real and that Haiti went forward into the present fiscal year with
neither an unliquidated balance of debits or credits on foreign account.
As a matter of fact, the foregoing situation of stabilization is prob-
ably more desirable than a rapid increase of credits abroad, and
it is certainly far more advantageous than an increase of foreign
obligations.
Certain students attempt to establish a causal connection between
the trend of the international balance of payments of a given country
and increases or declines in standards of welfare of that country.
Such causal relationship is not believed to be existent. The obvious
increase in the standard of living in Haiti is not due to the presence
or absence of excess export values as such, but principally to the
fact that peace and order have been maintained, that legitimate labor
has received its proper reward, and that, fortuitously, the principal
export product of Haiti has recently commanded an attractive price.
Of far more significance in the enhanced comfort of the population
than the increased value of exports was the substantial expansion in
production of food supplies. In past years the population of Haiti
has been decidedly undernourished, due to the fact that production
of foodstuffs above the bare necessities of subsistence was an invita-
tion to confiscation. Food animals and permanent sources of sup-
plies of fruits, vegetables, and cereals were therefore not produced -
on a scale sufficient to provide even as much as would be recognized




6 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

as bare necessities of life in more highly developed countries. With
the continuance of several years of peace, however, the rural popula-
tion has cautiously begun to throw off its fear of producing supplies
only to have them swept away in revolutionary activities, and has
gradually been extending production of its principal food supplies,
such as bananas, corn, beans, and food animals. Even yet the
population of Haiti consumes only a small fraction of the foodstuffs
which are desirable for healthy growth on the part of children and
vigorous existence on the part of adults.
Though it is impossible to speak with scientific certainty, there is
considerable indication that the increased nourishment of the popu-
lation due to more adequate food supplies has been reflected in addi-
tional economic activities. That is, the population has had more
energy to expend and a part of that energy has been directed toward
the construction of better housing facilities and toward the prepara-
tion of additional lands for cultivation. Moreover, a considerable
proportion of the added energy has been utilized by the Government
in its far reaching program of productive public works.
Table No. 1 is a resume of Haitian commerce from 1916-17 to
1924-25, showing the value of imports and of exports, and the excess
of imports and of exports for each fiscal year. It is evident that,
aside from the disturbing* circumstances due to the world war, the
foreign commerce of Haiti has shown gratifying improvement since
the inauguration of the American intervention. With continuance
of the policy of devoting an important part of public revenues to
productive improvements, of ameliorating the conditions of public
health, of encouraging agriculture and of maintaining peace and
security of life and property, it is to be expected that the rate of prog-
ress which has characterized the past few years may be maintained
and perhaps exceeded. At least such a result is possible if the Haiti-
ans systematically and vigorously utilize the productive resources
which their country offers, thereby expanding in quantity and in
variety commodities both for domestic consumption and for export.
TABLE NO. 1
VALUE OF IMPORTS AND EXPORTS, AND EXCESS OF IMPORTS OR EXPORTS, FISCAL
YEARS 1916-17 TO 1924-25

Year Imports Exports Excess i- Excess ex-
ports ports

Gourdes Gourdes Gourdes Gourdes
1916-17--...--....------------------ --------------- 43,030,428 44,664,428 ...---. 1, 634,000
1917-18 -...-.....------ ----------------- -- 50,903, 468 38,717,650 12,185,818 .............
1918-19..-....... ------------ ------------ 5. 85,583,041 123,811,096 ...---. 38,223,055
1919-20..-..------------------------ 136, 992,055 108,104,639 28, 887, 416 -
1920-21.... -------------- ----- --------- 59, 786,029 32,952, 045 26, 833,984 ...........
1921-22..--..----------------------- -- 61, 751,355 53,561,050 8,190,305..---
1922-23 ------ --- -------...-- -- --- ---- 70, 789,815 72,955,060 .............. 2,165,245
1923-24 ...- -...---- -------------------.------- 73,480,640 70,881,610 2,599,030 ..... ...
1924-25.........----------------------------- 101, 187,825 97,018,810 4,169,015 ......
Total.. ............................-- 633,509,656 642,666,388 82,865, 568 42,022,300




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 7

ORIGIN OF IMPORTS
As there is considerable danger in a "one-crop country," a desig-
nation only too descriptive of the situation in Haiti, so also there is
added danger in a "orie-market country," which also only too
accurately applies to Haiti, both as to imports and exports. Table
No. 2 presents imports-by countries of origin, indicating the per-
centage of total imports-which-was purchased in each of the principal
countries of supply. It is quite evident that merchandise from the
United States dominates the Haitian market, and has so dominated
it for the past nine years. -Nevertheless, there is a tendency for
the share of the Haitian import trade controlled by the United
States to decline, and during the past fiscal year that trend has
been maintained. Total imports from the United States declined
from 80.41 per cent in 1923-24 to 76.93 per cent in 1924-25. Even
yet the percentage of imports from that country is so great that
Haiti is somewhat dependent upon business conditions in the United
States. In particular, increasing or declining price levels in that
country are promptly reflected in Haiti.

TABLE NO. 2
VALUE OF IMPORTS, SHOWING COUNTRIES OF ORIGIN, BY PERCENTAGES, FISCAL
YEARS 1916-17 TO 1924-25

Country of origin 1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25

Per ent Per cent Per cent Per cent Per cent Per cent Per cent Per ct Per cent
United States.-......-- ..... 86.89 92.48 93. 12 83. 12 79. 82 83. 87 81.40 80.41 76.93
France-.................... 4.57 2.14 2.02 5.30 9.51 5.21 4. 65 6.02 6.72
United Kingdom.......---- 6.88 3.92 3.22 8.35 6.84 6.18 7.84 6.70 8.62
Bahama Islands ...-......-- .04 .02 .01
Belgium ---.....------ ---- .01 .02 .13
Canal Zone.................. .04 .08 .23
Cuba ---------------.. .... .06 .03 .04
Curacao............... .25 .28 .37
Denmark ........... .18 .43 .29
Dominican Republic------- .96 1.06 .36
Germany.........--------.. 1.66 1.36 1.64 3.23 3.83 4.74 2.62 3.05 3.97
Italy -----.---------------- .37 .45 .65
Jamaica ----................. 10 .07 .05
Netherlands....-.....------. .79 1.06 1.32
Porto Rico.------......... .05 .02 .20
Switzerland................. .11 .03 .03
Virgin Islands.....---.....-- .43 .18 .02
Allother -----....----...... .10 .09 .16
Total.................-------- 100.00 10000 0 100 100.00 100.00 100. 00 100.00 100. 00 100.00


As might be expected, the declining percentage of imports from
the United States was counterbalanced by increasing percentages
for most other countries. For example, from 1923-24 to 1924-25
imports from Great Britain advanced in percentage from 6.70 to
8.52, those from France from 6.02 to 6.72, Germany from 3.05 to 3.97,
Netherlands from 1.06 to 1.32, with similar increases for most of
the other countries. The only country which showed a marked
-decline in its participation in Haitian imports was the Dominican
Republic where the percentage fell from 1.06 to 0.36.





8 HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER

As currency disturbances subside and as commercial transactions
resume their former channels there will probably be a continuance
of the trend toward diffusion in the sources of Haitian imports, and
this tendency will enable Haiti to conduct its economic life with
greater independence of the business fluctuations of any single
country.
DESTINATION OF EXPORTS

Although the export trade of Haiti is not so concentrated as is the
import trade, nevertheless a considerable degree of concentration
exists as is shown by Table No. 3. However, in the- same manner
as decentralization of imports has proceeded in the recent past so in
1924-25 there was at least some indication of a decentralization of
exports, although the tendency was by no means so clearly defined.
Moreover, a high degree of centralization of exports is more dangerous
than in the case of imports, as it is far easier to arrange for purchases
in other countries if conditions of purchase at accustomed sources of
import supply become disadvantageous than it is to arrange new
market outlets for exports when the usual market becomes unsat-
isfactory. Thus the decline of Haitian exports to France from
66.10 per cent in 1923-24 to 63.45 per cent in 1924-25, can only be
regarded with satisfaction, although the percentage in the latter
year was greater than during any other year from 1916-17 to date.
In order to establish the export trade on a sound basis it should
be hoped not that France will take smaller values of Haitian com-
modities in the future, but that other countries will purchase
increased values. Such a tendency was indicated during 1924-25,
though the tendency was somewhat more mixed than in the case
of imports.
TABLE NO. 3
VALUE OF EXPORTS, SHOWING COUNTRIES OF DESTINATION, BY PERCENTAGES,
FISCAL YEARS 1916-17 TO 1924-25

Country of destination 1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25

Per cent Per cent Per cent Per cent Per cent Per cent Per cent Per cent Per cent
United States ..--....---.. 54.39 80.83 44.49 52.15 32.38 13.44 13.55 9.38 11. 95
France......-------------- 41.87 .48 52.44 34.39 50.70 56 18 60.58 66.10 63.45
United Kingdom---...- .85 -..... 1.11 1.68 .3.62 5.50 4.95 5.10 2. 86
Barbados.--..- --- .20 .36 ---
Canada..--................ ------ 1.05
Canal Zone....-..------.--- .08 .03 .18
Cuba ....---......-------... 1.57 .26 .57
Denmark -........... --.... 4.34 5.98 6.74
Dominican Republic-.... .07 .05 .06
Germany..........-------- 2.89 18.69 1.96 11.78 13.30 24.88 4.70 4.60 2,74
Italy --...--.......-- 2.77 2.07 1.86
Netherlands ........-..-- 1.60 1. 9 3.12
Norway .--------- 03 .19 .58
Porto Rico..........--------- .12 .06 .10
Spain ....01 .17 .46
Sweden ......---------. 08 .02 .43
All other.........--------.. I .17 .45 .23
Total-----------......... 100.00 100.00 100.00 100 0 .00 100.00 100.00 100.00 100.00




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 9

The United States increased purchases from 9.38 to 11.95 per cent,
Denmark from 5.98 to 6.74 per cent, and the Netherlands from
1.59 to 3.12 per cent. On the other hand there was an abrupt
decline in British purchases of, Haitian products, the percentage of
such purchases falling from 5.10 to 2.86. Another drastic decline
was in the case of Germany where the respective percentages were
4.60 and 2.74.
There is much evidence to the effect that international competition
is likely to converge upon manufactured articles of various kinds and
that markets for such merchandise will be sought with ever increasing
diligence. On the contrary, there are substantial reasons for believ-
ing that a sellers' market for the important raw materials of commerce
will persist for many years to come.. If the foregoing analysis is
correct, it is evident that countries such as Haiti which are primarily
producers of raw materials and which import practically their entire
requirements of manufactured articles will be in an increasingly favor-
able situation. Under such circumstances they would be in the
fortunate position of having a buyers' market for their imports and a
sellers' market for their exports. Business men in Haiti can well
afford to give careful consideration to the implications and possibil-
ities which have just been suggested. If full advantage is taken of
the opportunities both for advantageous buying and advantageous
selling the welfare of this country should be proportionately advanced.
When the percentage distribution of Haiti's foreign commerce by
countries of origin for imports and countries of destination for exports
is aggregated, results are obtained which appear in Table No. 4.
In accordance with precedent the United States occupied the premier
position, participating as it did to the extent of 45.12 per cent of total
foreign commerce during 1924-25. This percentage was only frac-
tionally less than during the preceding year, but also the year in
question represented the sixth successive year of decline in the pro-
portion of total foreign commerce of Haiti handled by American
importers and exporters. France, as second most important factor
in Haitian foreign commerce, also had proportionately smaller deal-
ings with Haiti, the percentage in this case declining from 35.52 in
1923-24 to 34.48 in 1924-25. The foregoing countries together
represented almost 80 per cent of Haitian foreign commerce, and the
volume of trade with all remaining countries was therefore of minor
importance. Great Britain, Belgium, Denmark, Germany, and
Italy all approximately maintained their previous positions in the
trade of Haiti, and the only considerable important increase was the
percentage of the Netherlands which rose from 1.32 to 2.21.





10 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVERl


TABLE NO. 4

VALUE OF TOTAL FOREIGN COMMERCE, BY COUNTRIES, IN PERCENTAGES, FISCAL
YEARS 1916-17 TO 1924-25


Country


United States....-..........
France ...................
United Kingdom............
Bahama Islands.......-- ....
Barbados....................
Belgium ..................-.
Canada--...........-------..
Canal Zone....---------------
Cuba..........-----......----------.......----
Curacao....------------------
Denmark..... ....-----------
Dominican Republic-.......
Germany..-----.------------
Italy--.....................-
Jamaica....................
Netherlands..-...-..........
Norway.-....--.............
Porto Rico-..................
Spain...-..-..-........ .....-
Sweden ..-...............
Switzerland --.............
Virgin Islands -.............
All other-.....--.........
Total..................


1916-17 1917-18 1918-19 1919-20


1920-21 1921-22


Per cent Per cent Per cent Per cent Per cent Per cenm
72.07 88.16 66.06 70.44 65.92 51.12
21.59 1.52 30.06 17.21 21.58 28.88
4.13 2.43 2.05 5.62 5.90 5.86


2.21


1.83


6.73 6.60


14.14


100.00 100.00 100.00 100.00 o100.00 100.00


1922-23 1923-24 1924-25


Per cent Per cent Per cent
46.97 45.53 45.12
33.04 35.52 34.48
6.37 5.92 5.75
.03 .Q2 .01
.13 .18 ...
2.63 1.77 1.84
.01 .18 .52
.06 .06 .20
.84 .14 .30
.11 .15 .23
2.26 3.15 3.45
.51 .56 .22
3.69 3.81 3.37
1.59 1.25 1.25
.05 .04 .03
1.21 1.32 2.21
.02 .09 .30
.09 .04 .15
.01 .11 .27
.04 .01 .21
.05 .05 .04
.21 .09 .01
.08 .01 .04
100.00 100.00 0 100.00


TABLE NO. 5

VALUE AND PERCENTAGE OF VALUE OF IMPORTS, EXPORTS, AND TOTAL FOREIGN
COMMERCE, BY COUNTRIES, FISCAL YEAR 1924-25


Country Imports Exports Total


Gourdes Per cent Gourdes Per cent Gourdes Per cent
A u s t r i a ..-- --.. . ..-- - 3 5 3 0 .- - - - -3 5 3 0 .
Bahama Islands.....-----... .. 6,225 0.01 11,060 0.01 17,285 0.01
Belgium....-------- ---------. 132, 385 .13 3,512,645 3.62 3,645,030 1.84
Canada----.... -------- 4,060 .------. 1,017,730 1.05 1,021,780 .52
Canal Zone..--------..... ---. 228,525 .23 173,025 .18 401,550 .20
Chile---....----...........------ 2,140 ...--------............. .---------- 2,140
China.--...........-----------. 2,175 ....--------. ..----------...------ 2,175
Colombia-........... .-------. 10 .......... 100 .......... 110
Cuba---..--...... ---------... 39, 685 .04 553, 290 .57 592, 975 .30
Curacao-------... ----------. 373, 715 .37 88,360 .09 462,075 .23
Czechoslovakia---.......------- 28,480 .03 -..---------.--..----- 28,480 .01
Denmark--..---.----. --------. 292, 630 .29 6,536, 275 6.74 6,828,905 3. 45
Dominican Republic- ----.. --- 367,085 .36 59,845 .06 426,930 .22
Egypt------------------------ 235 --------------------------------- 235 -
Finlnd----------------------------- --------------- 21,870 .02 21,870 .01
France---... ----- ----------- 6, 797,730 6. 72 61,546,835 63.45 68,344,565 34. 48
French Africa--..-- -----. -- 55 -.... 3,200 ....... 3,255
Germany-------~.----.. --- 4,01, 010 3.97 2,656,880 2.74 6,675,890 3. 37
Guiana, Dutch--..--....... ------------------------ 3,000 30...- 3,000
Honduras.---........- ------- 6,370 .01 ...........---------.... 6,370 -
Hungary--------------- ------- 1,150 .-----............----................-- ------.... 1,150
Italy.......------------ ------- 658,680 .65 1,807,390 1.86 2,466,070 1.25
Jamaica...-------.-----------..52,940 .05 2,645 ...----- 55,585 .03
Japan-......------------- -2,710 -. 2,525 ..... 5, 235
Madeira Islands-..---... --- ...3, 450 -.--....--- ..----------I-------. 3,450 .
Martinique....... --------- 15 45,695 .05 45, 710 .02
Mexico....-----------540 ................-------- -------- 540
Netherlands. ----------- 1,337,150 1.32 3,029,695 3.12 4,366,845 2.21
Norway-.....----------- ---. 32,760 .03 558,055 .58 590,815 .30
Palestine....-------------- 215 ..--- -- -------- ----- --- 215 .
Porto Rico----.. --- ---------- 196,685 .20 97,840 .10 294,525 .15
Spain ...-.-------. ----- ----. 86,860 .09 443,450 .46 530,310 .27
Syria..---... -------.. -------- 25 ..---..----------------------- 25 ..-
Sweden -----. ~~.....---........................ 412,470 .43 412,470 .21
Switzerland .--.-..... .. 33,075 .03 51,650 .05 84,725 .04
United Kingdom..---.-..--. 8,616,615 8.52 2,779, 475 2.86 11,396,090 5. 75
United States..... --------- 77,839,345 76. 93 11,593,095 11.95 89, 432, 440 45. 12
Venezuela ---.... ----.-------- 10, 720 .01 10,720
Virgin Islands -............... 21,565 .02 .---..- I --- 21,565 .01
Total..............--------. 101,187,825 100.00 97,018,810 100.00 198,206,635 100.00




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 11

On the whole, therefore, not only was foreign commerce of satis-
factory value and volume during 1924-25, but the distribution of
that commerce both for imports and for exports showed improve-
ment over previous years. ,
Distribution of imports according to countries of origin, of exports
according to countries 6f destination, of combined imports and
exports by countries, indicating both values in gourdes and also
percentages, is presented for 1924-25 in Table No. 5.

PORTS OF ENTRY OF IMPORTS
Although Haiti is not a large country there has in the past been a
tendency for commercial activity-to be unevenly distributed. This
condition was principally caused by climatic influences, such as
deficient rainfall or the prevalence of plant or animal diseases in
certain sections and their absence in others. For it should be noted
that in spite of the relatively small area of Haiti, pronounced dif-
ferences in rainfall exist, drought and abundance sometimes existing
within a few miles of one another. And as, in general terms, crops
are in direct ratio with adequacy of rainfall it follows that drought
conditions in a given district are quickly reflected in foreign commerce.
In 1924-25 rainfall throughout Haiti was more copious than for
several preceding years, with the result that both exportproducts
and crops for local consumption were of larger quantity and better
quality. Furthermore, as all districts of the republic received rain-
fall which was normal or greater than normal for those districts, so
also did all districts show normal or greater than normal activity in
foreign commerce.
The foregoing statement is sufficiently demonstrated by examina-
tion of Tables No. 6 and No. 7, which present the value of imports by
ports of entry and the value of exports by ports of shipment. For
ports of entry of imports, Port au Prince continued to occupy a posi-
tion by itself, accounting, as it did, for gdes. 58,422,670 out of total
imports of gdes. 101,187,825, or 57.74 per cent. This was in com-
parison with imports in 1923-24 of gdes. 39,904,450, or 54.31 per
cent of the total. Thus Port au Prince even increased its predomi-
nance in import activities. Second in importance as a port of entry
was Cape Haitien, which increased its imports from gdes. 7,630,340
in 1923-24 to gdes. 9,779,755 in 1924-25, thus supplanting Cayes
which held second rank in the former year. Imports through the
port of Cayes also showed satisfactory expansion, with a total for
1924-25 of gdes. 9,561,205, or only slightly less than those of Cape
Haitien. The third group of ports, composed of Jacmel, Gonaives,
Petit Goave, and Saint Marc, all showed increased import activity,
and in the case of Petit Goave the increase amounted to well over




12 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

100 per cent, thus causing this port to exceed Saint Marc in the
importance of its import trade. Substantially similar statements
can be made regarding Port de Paix, J6r6mie, and Miragoane, in
which gratifying expansion of imports occurred. However, the
minor ports of Ouanaminthe, Aquin, Glore, and Belladere all showed
declining import trade, and particularly in the case of Ouanaminthe
imports fell from gdes. 545,540 in 1923-24 to the nominal figure of
gdes. 113,050 in 1924-25. Furthermore, the port of Fort Libert6,
which had always handled a negligible volume of commerce was dis-
continued as an open port at the close of the fiscal year 1923-24.
It is also interesting to note that the average of imports for the
nine years from 1916-17 to 1924-25, was gdes. 75,945,517, as com-
pared with the total of gdes. 101,187,825 for 1924-25, indicating that
the year under discussion was 33.24 per cent in excess of the average.
This is the best possible evidence of the favorable position of the
import trade.









TABLE NO. 6

VALUE OF IMPORTS, BY PORTS OF ENTRY, FISCAL YEARS 1916-17 TO 1924-25


Port of entry 1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25 Average

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Aquin--.-----... -----...........-- 87,232 25, 073 108,060 389,416 172,791 790 46,005 289,810 260,620 153,311
Belladre ....------------------------------------------------------------------------------------- ------60-------------- 605 2,065 1,325 444
Cape Haitien.......- --------.... 7,672,144 6,065,536 11, 509, 547 17, 378,455 7,312,575 7,321,065 7,600,360 7,630,340 9,779,755 9,141,086
Cayes........-- .......------..... -4,027,574 3,069,872 7,096,393 10, 996, 304 7,025,130 4,373, 525 6,447,030 8, 494,785 9,561, 205 6,767,980
Fort Libert -......................------------ ------........ .....- --... -.. 736 551 1,125 1,085 880 486
Glore ...------ .........-------.....----.. ....---- ------- --------------. ------------ --------- ------------ 57,915 99,110 96,995 28,225
Gonalves ---... .... ...... ------- 3,266,953 2,676,184 4,607,375 7,176, 843 1.886,363 3,637, 565 3,416,765 13,286,855 4,326,425 3,809,036
Jacmel-.-- ....------.------- ---- 2,483,709 1,964,129 4,159,438 6,676,565 2,004,993 3,000, 005 4, 465,095 4,533, 280 6,335,830 3,958,116
J6rmie---..............---- .... 1,754,176 1,145,982 1,981,255 3,719,167 1,113,398 829, 695 1,177, 630 1,362,720 1,950,200 1,670,469
Miragoane -...... ............ 694, 180 160,838 522, 137 898, C60 316, 314 752, 890 1, 029, 310 930,490 1,110,265 712,787
Ouanaminthe ...-..........-------------------. 15,382 18,699 91,856 9,239 139,285 507,940 545,540 \ 113,050 160,110
Petit Gove--...............--- ---- 2,552,032 1,728,617 2,906, 462 5,178, 888 1,008,721 1,025,645 1,465,705 1,648,995 3,471,400 2,331,829
Port au Prince .............-----. 16,931,366 31,344,929 47, 987, 498 75, 919, 898 36, 376, 402 36, 751,465 40, 611,930 39,9014,450 58,422,670 42, 694, 512
Port de Paix-... ......... ..--.. 1,803,793 1,362,151 2, 558,870 3,339,751 1,370,566 1,686,240 1,548,620 1,654,995 2,399,755 1,969,416
Saint Marc........----..........---- 1,757,269 1,344,775 2,132, 307 5,225,516 1,188,986 2,232,060 2,413,820 3,096, 325 3,358,330 2,527,710
Total.--.....................-- 43,030,428 50,903,468 85,588,041 136,992,055 59, 786, 029 61,751,355 70, 789, 815 73,480,640 101,187,825 75,945,517


TABLE NO. 7

VALUE OF EXPORTS, BY PORTS OF SIIIPMENT, FISCAL YEARS 1916-17 TO 1924-25

Port of shipment 1916-1191- 917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25 Average


Aquin-.......................
Belladlre -- .....--------
Cape Haitien ....------------...
Cayes-...--................
Fort Libert6.......-..........
Glore--....-...-.... --. -
Gonalves-.......................
Jacmel-..............-- ...- ......
J6remie-.........................
Miragone..--------............-------
Ouanaminthe..---------........-
Petit Goave-.....-.............
Port an Prince.----........-- .....
Port de Paix....................
Saint Marc ... .---------......---
Total-....-.............


Gourdes
403,951
--------------
8,642, 025
4,026, 883
55, 485

4,351,122
4,497, 937
3,461,339
569, 764
4,991
3,397, 701
8,911,260
3, 558, 447
2,783,523


Gourdes
57, 087
5, 516, 089
2,269, 946
21,760
1, 934, 839
4,193, 421
2,296, 234
184, 673
17, 253
1,642,875
15, 627,176
1, 931, 194
3,025,103


Gourdes
734,228
17, 142, 327
7,976, 838
376, 678
9,656,834
18, 888,836
6,417,782
1,937,748
6, 949
6, 794, 359
42, 344, 034
5,490,332
6,044,151


Gourdes
873, 309
14, 934, 693
6, 719, 206
1, 092, 445
6, 560, 104
10,841, 654
3, 736,135
1,227,594
14, 891
6,829, 078
40,613,084
5,973,403
8, 689, 043


44,664,428 38,717,650 123,811,096 108,104,639


Gourdes
518, 525
6, 774, 374
1,725, 416
72, 361
2,171,279
3, 661, 735
840,174
1,126,545
989
2, 172, 353
10, 293, 015
1, 986, 772
1,608, 507


32,952,045


Gourdes
409,470
7, 016, 280
3, 895, 805
7,780
4, 189, 240
6,648,875
1,196,005
862, 735
2,145
4, 580,615
17, 840, 805
2,268,255
4, 643,040


53, 561,050


Gourdes
1, 214, 755
235
8,360, 835
6,485,915
302, 505
22, 255
5,860, 960
9, 172, 710
1, 604,425
1, 993,345
5, 350
9,421,125
18, 609, 045
3,464, 500
6,437,100


Gourdes
1, 516, 610
6, 953, 290
7,249, 335
17, 740
6,448,700
8,426,455
2,303, 505
1,714, 615
14,020
7, 950,625
17,464,075
4,026, 665
6, 795, 975


72, 955, 060 70,881,610


Gourdes
1, 633, 455
25
11, 764, 710
9,182,855
10, 670
8,825,055
12,487,370
3, 515, 815
2,471,460
7,745
13, 059, 380
21,055, 790
4, 756, 695
8, 247,785
97, 018,810


Gourdes
817, 932
29
9,678, 298
5, 503, 571
214,335
5, 629
5, 555, 348
8,757,666
2,819,046
1,343,164
8,259
6,205, 346
21,417, 598
3,717, 360
5, 363,803
71,407,384


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.14 HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER

PORTS OF EMBARKATION FOR EXPORTS
Participation of all sections of Haiti in the prosperity which char-
acterized 1924-25 is even more forcefully indicated by analysis of the
export trade according to ports of shipment. As in the case of im-
ports, all principal customs districts reported an increase, and there
was a tendency for the ports other than Port au Prince to obtain an
increased percentage of the export trade. This is evidenced by the
fact that the exports of Port au Prince were approximately equal to,
but slightly less than, the average for the past nine years, whereas all
of the other principal ports showed increased values, and in the case
of Petit Gotve this increase amounted to more than 100 per cent. In
fact, Petit Goave took second place as a port of export, supplanting
Jacmel. Also Cape Haitien stood in fourth place instead of Cayes
as in 1923-24, and the fifth place in 1924-25 was occupied by Cayes
instead of fourth place as in 1923-24.
The distribution of the export trade can be regarded as most satis-
factory, but the diffusion of export activity as contrasted with the
concentration of imports at Port au Prince is a clear indication that
the rural districts are paying rather dearly for the support of the
capital. Perhaps the concentration of imports at Port au Prince is
less than might appear from casual examination of import statistics,
as the capital is utilized to some extent as a distributing center, mer-
chandise being entered at Port au Prince, and thus appearing in the
commercial statistics of Port au Prince, but later being distributed
to the provinces.
Total exports in 1924-25 amounted to gdes. 97,018,810, compared
with gdes. 70,881,610 for 1923-24, an increase of gdes. 26,137,200, or
37.01 per cent. Moreover, for the nine-year average the increase
was 35.86 per cent. This is approximately the same percentage as
the increase of imports over the nine-year average, and suggests the
validity of the hypothesis previously outlined that the total of foreign
debits and credits of Haiti over the past few years has been approx-
imately equal, and that neither a debtor nor a creditor position has
been established.
The data of Tables No. 6 and No. 7 have been combined in Table
No. 8, showing both in values and in percentages the import, export,
and total foreign commerce of each of the customs districts of Haiti.
For aggregate activity in foreign commerce, Port au Prince main-
tained and slightly increased its position of leadership, accounting
for 40.10 per cent of total trade in 1924-25, as against 39.74 per cent
in 1923-24. Cape Haitien moved from third to second place, and
Cayes fell from second to fourth place, third place in 1924-25 being
assumed by Jacmel. The largest relative increase was displayed by
Petit GoAve which took fifth place with an increase in percentage of
total foreign trade from 6.65 to 8.34. Other ports maintained





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 15,

approximately the positions which they occupied in previous years,
with the exception of Ouanaminthe where a drastic decrease in trade
occurred.
As in previous years, Port au Prince is in a class by itself, Cape
laitien, Jacmel, and Cayes constituting the second group, to which
group Petit Gotve should be added in the year under review. A third
group consists of Gonaives, Saint Marc, Port de Paix, and J6r6mie,
and the remaining ports are included in the fourth group.

TABLE NO. 8
VALUE AND PERCENTAGE OF VALUE OF IMPORTS, EXPORTS, AND TOTAL FOREIGN
COMMERCE, BY PORTS, FISCAL YEAR 1924-25

Port Imports Exports Total

Gourdes Per cent Gourdes Per cent Gourdes Per cent
Aquin ----.................... 260, 620 0.26 1, 63,455 1. 66 1,894, 075 0.92
Belladere.----------- ..---------- 1,325 .......... 25 .......... 1,350 ..........
Cape laitien ------... ----- 779, 755 9.67 11,764,710 12.02 21,544,465 10.87
Cayes........................- 9, 561,205 9.45 9,182, 855 9.46 18,744,060 9.46
Glore---.... .................. 96,995 .09 10,670 .01 107,665 .06
Gonalves..-.......-- ... 4,326, 425 4. 28 8, 825, 055 9.09 13,151,480 6.64
Jacmel........................ 6 633 0 6. 26 12,487,370 12.87 18, 823, 200 9. 50
Jr6mie -............. -....... 1,950,200 1.93 3,515,815 3.73 5,466, 015 2.76
Miragoa ne.................... 1,110,265 1.10 2,471,460 2.59 3,581,725 1.81
Ouanaminthe................. 113,050 .11 7,745 .01 120,795 .06
Petit GoAve..-.........-....- 3, 471, 400 3. 43 13, 059, 380 13. 46 16, 530, 780 8.34
Port au Prince---------------- 58,422,670 57. 73 21, 055, 790 21. 70 79,478,460 40. 10
Port de Paix ..---------... ... 2,399, 755 2.37 4, 756, 695 4.90 7, 156, 450 3. 62
Saint Marc-..--..........--- .. 3,358,330 3.32 8,247,785 8.50 11, 606, 115 5.86
Total.................... 101,187,825 100.00 97, 018, 810 100.00 198,206,635 100. 00

SHIPPING

As loadings of revenue freight by the railroads constitute one of the
best indices of economic activity in many countries, so in Haiti the
tonnage of vessels entered and cleared is a corresponding index, as
this Republic handles most of its traffic by sea rather than by land.
Expansion of the tonnage of steam vessels entering Haitian ports
from 743,580 in 1923-24 to 912,756 in 1924-25, an increase of 169,176,
or 22.75 per cent, is, when considered in connection with the increased
value of imports, incontrovertible evidence that the economic status
of the Haitian population is experiencing consistent amelioration.
To be sure, it is impossible to present proof that the additional
tonnage touching Haitian ports represented a proportional increase
of cargo delivered in Haiti and obtained from Haiti. The increased
volume of imports and exports may have been greater or less than
the increase in maritime shipping, but it is hardly probable that the
tonnage of steam vessels entering and clearing Haitian ports would
have shown so marked an increase unless cargoes to and from Haiti
had been available. As demonstrated in Table No. 9, steam vessels
under the American flag occupied the dominant position in the com-
merce of Haiti, constituting more than 54 per cent of the total.
_ For vessels entered, American tonnage increased from 402,652 in




16 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

1923-24 to 498,563 in 1924-25. Although Dutch shipping occupied
the second position in 1924-25 as well as in 1923-24, the tonnage
actually showed a slight decline. British, French, and German
tonnage all increased substantially, as did the shipping of other
maritime nations touching at Haitian ports.
The number of vessels as well as the tonnage participating in the
maritime commerce of Haiti increased from 449 vessels in 1923-24
to 503 in 1924-25. As in previous years, steamship companies
complained that the available tonnage incoming and outgoing was
often so small, particularly at the less important Haitian ports, that
it was hardly profitable. Nevertheless, steamship freight rates to
Haiti are high, both from foreign ports and for coastwise traffic.
In fact it is the belief of this office that commerce is impeded to an
appreciable extent by reason of the present steamship tariffs and that
a readjustment of some of those tariffs might well be considered.
Inability of sailing vessels to compete with modern steamships
was further demonstrated by the decline in the number and tonnage
of sailing vessels entering and clearing Haitian ports in 1924-25, in
comparison with the sharp advance in the number and tonnage of
steamships engaged in commerce with Haiti. In fact the number
of such sailing vessels entering and clearing Haitian ports was only
about half as large as in the previous year. American sailing vessels
continued to take first place, with the tonnage of any other single
country constituting only a minor fraction of the total. The appro-
priate statistics are found in Table No. 10.





_~_ ~_ __ __ __


TABLE NO. 9

NET TONNAGE OF STEAM VESSELS IN FOREIGN COMMERCE ENTERED AND CLEARED, BY REGISTRY AND MONTHS, FISCAL YEAR 1924-25

Steam vessels entered

American French British German Dutch All other Total
Month
Num Tonnage Tonnage um- Tonnage Num Tonnage Num Tonnage Num- Tonnage N Tonnage
ber ber T ber T ber ,ber ber ber

October, 1924...--........--- .......... -------------...... 11 31,875 3 8,673 9 3, 858 4 5,138 9 11,367 8 6,636 44 67,547 0
November -.. -- --------------------..... ----. 10 31,690 2 4,775 5 2,589 2 3,230 8 9,373 7 7,973 34 59,630
December----....--------------............. 13 35,126 4 7,978 6 5,249 4 6,085 8 9,107 9 7,259 44 70,804
January, 1925...................................... 13 34, 929 1 3,119 7 21,183 1 1,136 9 10,276 5 % 4,945 36 75,588
February----.. ---------.---........--------8 26,442 2 3,776 5 4,850 3 4,478 4. 4,600 9 8,278 31 52,424
March......----.......-..-........-------.....-- 12 36,869 4 11,568 7 22,078 5 7,438 10 '10,080 10 8,459 48 96,492 >
Aril......---- ----------------.................. 14 37, 453 3 10,053 11 4,263 3 4,258 12 12,561 8 6,403 51 74, 991 Z
May.........-------------....... -------............ 14 48,439 5 9,798 8 4,288 2 3,595 8 9,436 8 6,106 45 81,662 n
June---...........-- .......................... 12 50,553 1 1,888 5 2,848 3 5,912 9 8,499 8 5,169 38 74 869
July---- -- -----.- ---------------------- 14 58,941 2 4,715 6 3,492 2 2,500 10 11,837 16 10,097 50 91,582
August .....---------------....... --..-....... .. 12 52,722 4 7,513 5 2,601 3 5,746 8. 10,433 12 8,053 44 87,068
September --.. ---- --------.......... ---------... 13 53,524 2 4,775 7 4,643 1 2,950 8 8,268 7 5,939 38 80,099 .
Total....-------. ---.................... 146 498,563 33 78,631 81 81,942 33 52,466 103 115,837 107 85,317 503 912,756
------------------ -- --- -- -- -- -- -___ 03__ 5
Steam vessels cleared

October, 1924--....- ------ -...- ..--- ..... ------- 10 31,680 3 8, 673 8 3,617 4 5,163 9 11,367 8 6,636 42 67, 136
November.-------------------------------------- 10 31,690 2 4,775 7 3, 092 2 3, 230 8 9,373 7 7,137 36 59, 297
December----- -----......... -----------12 34,844 4 7,978 6 5,249 4 6,085 8 9,107 10 7,963 44 71,226
January, 1925 -...--.---..------- -------.-----.. 13 34,929 1 3,119 6 21,183 1 1,136 9 10,276 6 5,245 36 75,888
February---....-......----- ---... ---....---- 8 26,442 2 3,776 5 4,850 3 4,478 4 4,600 8 7,889 30 52,035
March....------ -------------------------- 12 36,869 4 11,568 7 22,078 5 7,438 10 10,080 11 8,459 49 96,492
April..---.. --------.-------------------- 14 37, 453 3 10,053 10 4,022 3 4,258 12 12, 561 8 6, 403 50 74,750
May-..- -------------. ---..... .. .. ------14 48,439 5 9,798 9 4,529 2 3,595 8 9,436 8 6,106 46 81,903
June -......-...------ ---.--- -------...... 12 50,553 ...-- ------- 5 2,848 3 5,912 9 8,499 8 5,169 37 72,981 N
July.....---....----.----. ..... .......-----. 14 58,941 3 6,603 7 3,733 2 2,500 10 11,837 16 10,195 52 93,809 0
August---....-------------------....-------. 12 52,722 3 6,785 5 2,601 3 5,746 8 10,433 12 6,768 43 85,055 M
September-----......------ -----------..--------... 13 53,524 2 4,775 6 4,402 1 2,950 8 8,268 8 7,524 38 81, 443
Total.-------------........-- ---.............. 144 498,086 32 77,903 81 82,204 33 52,491 103 115,837 110 85,494 503 912,015 "




18 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

TABLE NO. 10
NET TONNAGE OF SAILING VESSELS IN FOREIGN COMMERCE ENTERED AND
CLEARED, BY REGISTRY AND MONTHS, FISCAL YEAR 1924-25
Sailing vessels entered

American British Haitian All other Total
Month
Num- Ton- Num- Ton- Num- Ton- Num- Ton- Num- Ton-
ber nage her nage ber nage ber nage her nage

October, 1924....-...-......--- 1 693 1 63 8 263 2 112 12 1,131
November.------.. ----- 2 1,328 2 16 2 88 2 1,143 8 2,575
December.--...-... .......--. 4 2,839 2 13 3 129 4 1,844 13 4,825
January, 1925---.---....... 2 1,933 4 873 4 153 1 125 11 3,084
February... -------- 1 632 3 18 6 235 3 3,269 13 4,154
March.--...---..-...... .. ---1 576 2 20 3 96 1 77 7 769
April.. -----............... 1 602 3 29 2 101 4 3,298 10 4,030
May--....---------........ 1 562 4 547 3 80 1 56 9 1,245
June------.... ----..- 2 1,386 4 41 5 104 --......- ... 11 1,531
July-----...----...-..... --1 388 6 48 3 57 1 56 11 549
August--..-.. ..---...---..- ............ 4 25 4 206 3 2,186 11 2,417
September---.... ......... 1 607 2 11 1 14 1 1,268 5 1, 00
Total--....---... ..-.-- 17 11,546 37 1,704 44 1,526 23 13,434 121 28,210

Sailing vessels cleared

October, 1924...-------......- 1 693 3 75 6 206 2 112 12 1,086
November ---.-------....- 2 1,328 2 16 4 171 2 1,143 10 2,658
December---..---.....-..... -2 1,086 2 13 7 267 2 952 13 2,318
January, 1925-...-------.-- 1 862 2 21 3 146 3 1,017 9 2,046
February.---.........-------- 4 3,456 4 734 4 137 1 1,987 13 6,314
March--...---.---------------.------.---... 2 17 2 70 2 323 6 410
April ..-..---.--------------- 2 1,178 3 27 4 149 2 1,153 11 2,507
May----.....-----.---. 1 562 6 565 2 52 4 3,237 13 4,416
June .............---- --............ 1 688 4 39 4 125 ............... 9 852
July....--.......-----.....--- 1 698 7 60 2 82 .-.... 10 840
August--....----...-.......--- 1 388 3 18 3 127 3 275 10 808
September---..------.. ....... 1 607 3 18 2 151 2 3,235 8 4,011
Total...------..... ..-- .. 17 11,546 41 1,603 43 1,683 23 13,434 124 28,266

Additional shipping data indicating for the year 1924-25 the
value of imports and exports according to the registry of the carrying
vessels are found in Tables No. 11 and No. 12. For imports, Table
No. 11 shows the value of dutiable and nondutiable merchandise
introduced into Haiti in accordance with the nationality of the
vessels which carried such merchandise. Out of total imports of
gdes. 101,187,825, American vessels transported approximately one-
half, or edes. 50,467,010. Dutch vessels carried gdes. 34,542,615,
and the vessels of other countries participated in the import trade
only to a relatively small degree.
For exports, Dutch vessels were first in importance, increasing the
value of their cargoes from gdes. 19,801,870 in 1923-24 to gdes.
30,681,460 in 1924-25, thus supplanting American vessels as principal
factors in transporting Haitian exports, and in fact showing values
50 per cent greater than those consigned in American ships. French
and German vessels also materially increased their activities in
connection with Haitian exports. It is somewhat surprising to dis-
cover that exports from Haiti to France were carried almost as
largely in Dutch as in French vessels, and that even with the United
States, Dutch vessels carried values almost half as great as those
transported in American ships.








TABLE NO. 11

VALUE OF IMPORTS, BY REGISTRY OF CARRYING VESSELS, FISCAL YEAR 1924-25


Merchan- Merchan- I
Country dise free dise sub- American British Danish Dutch French German Haitian Norwegian All other Total Per cent
of duty ject to duty
x B ---- British Danish Dutch FGordes emn HiinNreis l te oa ecn


Austria------..-......
Bahama Islands --. .
Belgium-....--.......
Canada-...........--
Canal Zone-.......
Chile..........
China ..............
Colombia-...-......
Cuba--.............
Curacao--............
Czechoslovakia----...
Denmark -..-.......
Dominican Republic.
Egypt--......
France------...........
French Africa-......-
Germany.............
Honduras............
Hungary .......-..
Italy ---------.........
Jamaica -..-....- ..
Japan................
Madeira Islands-....
Martinique..........
Mexico-----..........
Netherlands ----...
Norway-......
Palestine--..-----
Porto Rico --..--..
Spain.----.. ......
Switzerland.-- .....
Syria --......---------
United Kingdom-....
United States........
Virgin Islands.---..

Total ........


Gourdes



163, 225



132, 490

25, 660
192, 055

471, 785

28, 135

8, 050
25, 960



8, 040
19, 660

79, 270
--.....-- .-



67, 2255
4, 252, 510
760


Gourdes
4, 480
1, 235
1,320


Gourdes
3,530
6, 225
132,385
4, 060
65,300
2,140
2,175
10
39,685
241,225
28,480
266, 970
175, 030
235
6, 325,945
55
3,990,875
6,370
1,150
650, 630
26, 980
2,710
3,450
15
540
1,329, 110
13, 100
215
117, 415
86,860
33,075
25
8,549,390
73,586,835
20,805


Gourdes

--1, 850


7,790
27, 480


Gourdes
3,275

4,435
60


16, 515
151,120
28,060
79, 735
12,000

261, 995

2, 454, 985


Gourdes
50
825
2,480


. '... ........... ... .............. 2,10.'i6 .. ,
--- -. .. .. ... .. ... .. .. 2, 105 ----- -----


16, 400

55"
35
59, 820
235
6,233,375
55
4, 590


Gourdes

90,-485
-- --


174 3 .. 5,515 ....
174,395 -- --. --


49, 4306
27,130
10 385

-0,"047, 770


Gourdes
205
8, 525
200
228, 525
2,140
70
10
200

365
132,265
2,480
218, 860

82, 160
6,370
45
S383,615
23, 695
2,680


8,310
20
::::--ii----

11,970
3,455
---- -- -
3, 539, 955
45,789,325
21,565


.... 5--









3, 4500
171, 070


1,045
215, 435
1,575

------------
3, 450
5

1, 304, 240
9,655

2,730
8,125

3, 106, 955
26,877, 215


60
44,725
35
30

10
540
1, 690
70
215
30
72,160
21,495
25
76,045
1,895


14, 295
15, 730



22, 910
3,400

4, 180
--......-4--


826, 360
47,355


Gourdes Gourdes

1,745 ..... ....
-- -.-- 23,430

---------- --------_----
-- -- I -- -- -- -


5,474,825 95,713,000 50, 467,010 1 ,133,960 211,640 34,542, 615 6,539,0501 2,323,8251 7,260


Gourdes


........i.-
1, 600




275
48,200


*31,165 -. ----
9,205 *256,;450

------------ ------------
339, 560 55, 415-
--------------------------------------- ------------ ------------oi
............ 610


..........-.. ...........


19, 615 -

192, 470


117,'795 199, 230
4,227,135 440,310
-- -- --- -- -


Gourdes
3,530
6,225
132, 385
4,060
228,525
2, 140
2,175
10
39, 685
373,715
28,480
292, 630
367,485
235
6, 797, 730
55
4, 019, 010
6,370
1, 150
658, 680
52,940
2,710
3, 450
15
540
1,337,150
32, 760
215
196, 685
86, 860
33,075
25
8, 616, 615
77, 839, 345
21,565


4,767,905 1,194,560 101,187,825


9W


0. 13


--------
.23 H


.04
.37
.03
29
.25 0
.36


3. 97
.01------
.01
65
.05
----------

1. 32
.03

.20
.09
.03 y

8.52 Q
76.93 M
.02
100.00 o


11,905









746, 825
285, 040


...------ I ---------- ------------ i


--------- ------- ---- ---~.--


780




75, 325

7, 050










TABLE NO. 12

VALUE OF ExPORTS, BY REGISTRY OF CARRYING VESSELS, FISCAL YEAR 1924-25


Country American


Gourdes
Bahama Islands-.............................
Belgium------........---. ..-.....-.. 1, 633, 830
Canada..................------------........... --------------------4,155
Canal Zone----...-- -- --------------- 173,025
Colombia---.. ------------... --......... 100
Cuba---...-...--.......... ------.. --- 119,150
Curacao-----------------.------------ .......
Denmark.--------.. .....---- ------- 1,253,115
Dominican Republic--.............. ......
Finland------ ---
lmd...... .................................. ..
France --..--....---.-..---- ......... 7,215,630
French Africa.......---.............. .. 3,200
Germany--..---.....-------------. ... -175,770
Guiana, Dutch.......................... ..
Italy-....-...--..-- -----........... -1, 072, 485
Jamaica......--------......--------..----... 2,345
Japan----.....--...--......-.....---- .. 2,525
Martinique-----....-----. ..-...-....... ...
Netherlands-...................................
Norway...------.. ---------... --. -- --- 237,975
Porto Rico ------.... --..........--......-- 11,300
Spain... .......---------- ------------. 313,440
Sweden ....----- -------. .--.. ..---- 255,400
Switzerland--------------------...----
United Kingdom...................... 397, 575
United States----....--- -----.------. 7,462,535
Venezuela--...--........... .............

Total... --------............... -- 20,333,555


British


Gourdes
7, 650
432,335
------------
--.----------
------------

876, 490
12.220

8,920,955


Danish


Gourdes










109ii,65'
----------
----------


------------ --------
187, 780 .........





56,490..... ....



------------ -----
------------ ---------- -
30,------ -----------
34,590 .

2, 600 .


294, 360 .-- --
261,590 .--- ..


Dutch


French


German


Haitian Italian Norwegian


All other


I I i i 1 1I


-
-


11, 117, 560 109,965 30, 681, 460 20, 401,800 11,416, 45


Gourdes
1,610
----------
----------
----------

---- -- -
-- -- -- -
----- -
...--..-..


1, 610


Gourdes
----------


----------


..........


Gourdes
1,800
642,540
261,140
-----------
-----------
16, 540
85,360
2,939,170
19,810
21,870
18,769,185

678, 740
3,000
565, 310
-----------
------.-----
1, 549, 895"
200,815

127, 410
58, 180
17, 705
1,155,430
3, 556, 840
10, 720


Gourdes
_ ----_-



Shiiii5ii.
-------..







137, 500









78,250




63, 750
----------


Gourdes
11, 060
3, 512, 645
1,017,720
173,025
100
553,290
88,360
6, 536, 275
59,845
21,870
61, 546, 835
3,200
2,656,880
3,000
1,807,390
2,645
2,525
45,695
3,029,695
558,055
97, 840
443, 450
412, 470
51,650
2,779,475
11,593,095
10,720


07, 920 2,398, 600 459, 895 97, 018, 810





-I- I-


Gourdes

394,890
.------------
------------
------ -- -
255, 645
------------
221, 840
8,975
----- -
19,255,920

24, 105
-----------
19, 520
------------

550
39,310
......------
8, 290

--72,'755

.......------


Gourdes

409, 050
------------
------------


3, 000
1, 149, 505
400

6, 478, 970

1, 357, 785

152, i55"
300
--------- --
1, 270, 865



98, 890
33,945
561,580
.---- -- -


Gourde8
....--------

752, 425
------------



96, 155


658, 710

232, 700




14, 645
113, 135
84, 675




197, 775
248,380


I


Per cent



0.01
3.62
1. 05
.18
.57
.09 o
6.74
.06
.02
63.45

2.74

1.86 Q
-----.---
-------
.05
3.12
.58
.10
.46
.43
.05
2.86
11.95
.01 t

100.00

td




80




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 21

FOREIGN COMMERCE BY MONTHS AND BY PORTS
As stated above there was a tendency in 1924-25 for commercial
activities to be somewhat more uniform than in previous years,
although the periodicity between the active and dull seasons was of
course maintained. December was the largest month for imports,
in place of November ag in 1923-24. Perhaps the most surprising
feature, however, of the distribution of the import trade during the year
was that February and March-both showed higher imported values
than did January. Apparently the reason for this alteration in the
usual procedure was that importers had failed accurately to cal-
culate the extent of the purchasing power of the population, which
was caused by the exceptionally high price of coffee, and it therefore
became necessary during the spring of 1925 to replenish stocks to a
greater extent than customary. Details of the distribution of
imports by months and by ports of entry are assembled in Table
No. 13. Each month of 1924-25 showed an increase over the cor-
responding month of the previous year, and in some months very
material increases were shown. For example, in February 1925,
imports were more than double those of February 1924. There
were also substantial increases during the last three months of the
fiscal year, and for this reason the belief is current among many
observers that some overstocking of merchandise existed at the
close of the fiscal year 1924-25.
Seasonal distribution of the exports of Haiti, as presented in Table
No. 14, showed much more change from the former year than did
that of imports. For example, in 1923-24, as well as in 1922-23,
March showed the heaviest exports. In 1924-25, however, Decem-
ber was the peak month for exports, with January second. In fact,
March 1925, though a month of substantial export activity, reported
smaller values than in the previous year. All other months reported
increases and the increases during November, December, January,
and February were especially noteworthy.
One of the important problems which Haiti should solve is the
equalization of export activity throughout the year. At present the
concentration of exports in the first half of the year often leads to
erroneous conclusions both on the part of the commercial community
and on the part of the Government in regulating its expenditures.
Of more importance is the fact that .the population, which is seri-
ously underemployed, needs to obtain remunerative work throughout
the year rather than merely during the so-called active season. A
proper balance of Haitian agriculture would not only obviate present
dependence upon one crop, coffee, for the prosperity of the country
but would also increase the total of exported commodities. In
other words, the contention of this office is not that less coffee should
be produced and marketed, but that the productive energies of the








TABLE NO. 13
VALUE OF IMPORTS, BY MONTHS AND PORTS OF ENTRY, FISCAL YEAR 1924-25, COMPARED WITH 1923-24

Port of entry October Novem- Decenm Febru- Septem- Total Total D-
Port of entry October N beve- D January March April May June July August ber 1924-2. 1923-24 crease r

Gourdes Gourdes Gourrdes Gourdes GoGordess ourdes Gourds GoGordes Goourdes GourdesGordes Gourdes Govrdes Gourdcs Gourdes Gourdes Govrdes
Annin ... ...... R 4?, 7 0 37 No1 '. 7 1j lf. "10 111 4f 1 Y r, c ", 7, ? 289,810 -.....- .... 29,190
I ri 1, 1 I '. '. I. i 2,065. -------~ 740
1, r -...: 33. .. 6 -0 I''1 "" -. 7,6 30,3 0 2, 14.. ,41. 5 .. .
:... I "'+ ". ,.. 8 ,494 ,7 8 ,CC 0 ,4 20
.. . .
......... .... .. .. ..... 8"1 ----- --- 88 ,
I : . ,. .
........ ..... .. ...".... ..
. '. . .
. .. .... .....
.. ... 1 ,,.


L6 n.,,_ .....3 3,, 82, 175 225 115 214,075 8 245 13 0 ...
Samt Marc ~*


Total1924-25--... 0,089,6809,708,' II. .5i. ,-. .',,. 41*. ,i .
Total 1923-24....i 8,800,208,934, .
Increase 124-25 ...-.. 1, 283,475 774, 500 3,01, 6552,435,134 5,122,2803,667,66


. ... l '- I


1,761,0601 514,4701 251,70512849, 38513,647,275 2,319, 80 27, 707, 185--...--


I I I I I I l I


I I I I 1 I I I I


I


I








TABLE NO. 14

VALUE OF EXPORTS, BY MONTHS AND PORTS OF SHIPMENT, FISCAL YEAR 1924-25, COMPARED WITH 1923-24


I t-1 1 !-I


Gourdes
1,80(

1, 324, 965
763, 365
1,880
935,875
855, 455
463,820
91, 195
655
801, 880
782,030
406,700
43, 920


Gourdes
140,405
10
1,567, 665
959, 09C
275
683,915
1,916, 19
S435,245
157, 58
185
1,331, 620
2,244, 230
680,345
164,736


Gourdes
330, 506

1, 70, 745
1, 836,435
115
1,567,240
2, 374, 45C
334,82C
595, 925
810
1, 959, 545
3, 307, 350
800, 550
497, 380


Gourdes
271,835

1, 085, 920
1,592, 555
1,100
1,402, 15;
2, 603, 07
629,445
551,455
300
1,899, 03
2,838, 000
671, 73C
489, 770


Gourdes
173, 100

1, 663, 075
1, 176, 77C
145
1,474, 730
1,458, 950
346, 780
336,820
255
1, 910, 510
2,275,465
653,720
820,715


Gourdes
259, 935

781,485
901, 650
1,685
602, 620
925, 775
192, 090
100, 705
275
1, 180,285
3,223,595
358,165
1, 509, 700


-


April May June


Gourdes Gourdes Gourdes
141,285 167,095 84,470

845,855 405,760 305,210
1,096,305 243,020 235,755
635 845 340
775,455 482,415 227,610
676, 670 479, 770 573, 600
245,690 218, 080 37, 825
48,765 190,400 105,920
30 1,225 420
1,293,850 838, 610 506,895
2, 034, 600 1, 377,490 1, 008, 170
201, 290 157,4651 188,725
1,616,810 1,287, 570i 455, 635


July


Gourdes
43,125

289,625
52,170
765
186,215
174,515
173,085
169, 965
835
430,000
612, 680
100,110
730,455


August


Gourdes


333, 085
177. 740
2,685
161,560
205,790
287, 475
101,390
1,310
371,175
860, 535
24,300
149,620


Total
1924-25


Gourdes
1, 633,45&
2;
11,764, 710
9, 182, 855
10,67(
8, 825, 05!
12,487, 37(
3, 515, 81;
2, 471, 46(
S7,745
13, 059, 3S(
21,055, 79(
4,756, 696
8, 247, 786


Total
1923-24
I
Gourdes
1, 516, 610
----------
6, 953, 290
7,249,335
17,740
6,448,700
8, 426, 455
2, 303, 505
1, 7M, 615
14,02
7,950,621
17,464,075
4,026, 665
0, 795, 97


De-
crease


Gourdes



7,070



6,275


Aquin ..-------
Belladere ...--
Cape Haitien .....--
Cayes....----------
Glore..------.------
Gonalves-......---
Jacmel---.... ..----
Jertmie-....... .--
Miragoane-.....--
Ouanaminthe-....--
Petit Goave -.....-
Port au Prince-.....
Port de Paix_._...-
Saint Mare--...---

Total 1924-25..
Total 1923-24..

Increase 1924-25.....
Decrease 1924-25 ..--


485,815 2,580,965 6, 638,220 5,652,865 3,282,23 ..-.
......... ...... .. .................. 716,60


2,409,410 615, 155 631, 1801,462,3201,233,705
------------------------- --- ------ ---------


1,861, 980 26,137,200 ----
----..---.----.----------------


October Novem-
ber


Decem- January
bert


February March


Port of shipment


5,473, 540 10, 281,495 15,395,865 14.036, 370 12, 291,035 10,037, 9658,977,240 5,849,7453, 830,572,963,545 2, 676, 665 4,204, 77 97, 018,810 26,10, 40 13, 345
5, 987,725 7,700,530 8,757,64 8,383,505 9,008,80 10,754, 616,567,830 5, 234, 5903, 199, 395 1, 501, 220442, 90 2,342,790 -------- 70, 881,610 ...


::::::::::j::::::::


II`--- F II--. I ~- ---~-- __


Septem-
ber


Gourdes
19, 905
15
1,371, 32(
148, 000
20C
225, 265
243, 125
151, 46C
21, 335
.1,445
535, 980
491, 645
513, 595
481, 480


Increase


Gourdes
116,845
25
4, 811,420
1,933, 520

2,376, 355
4,060, 915
1,212,310
756, 845

5, 108, 755
3, 591, 715
730, 030
1,451, 810


-




24 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

population should be turned to remunerative employment in other
directions during the period when the coffee industry does not require
particular attention. Industries which readily suggest themselves
as supplementary to coffee growing are cotton, tobacco, sisal, manioc,
cashew nuts, poultry raising, and bee-keeping. All of these industries
are well adapted to Haiti and should amply repay time, energy, and
capital spent upon them.

COMMODITIES IMPORTED
While total values and volumes of imports are of significance in
determining the economic and commercial situation of a given country,
much information may also be obtained by carefully studying the
specific commodities of which the import trade is composed. For
example, increased import of foodstuffs in a country which is accus-
tomed to produce its own supplies is either an indication of poor
crops, or a change from agriculture to industry, or increased pur-
chasing power which permits greater consumption than customary.
To enable persons interested in the economic and social position of
Haiti to reach their own conclusions, Table No. 15 has been prepared
showing the value of the principal commodities imported during the
course of the past nine years. The data as a whole is convincing
proof that the Haitian people are better fed, better clothed, and better
housed than in former years. There is also proof that the sick
receive better medical attention and that there is a greater margin
over the bare necessities of life available for expenditure in comforts
and luxuries. Finally, there is proof that productive industry is being
-extended.
Turning to specific imported commodities, it is found that in
1924-25 increases occurred in virtually all schedules with the exception
of foodstuffs. Since it can hardly be argued that the population would
forego sufficient food in order to purchase clothing, chemicals and
pharmaceutical products, beverages, tobacco, building materials, and
automobiles, the decline in the value of foodstuffs imported is excellent
,evidence of prosperity rather than of adversity. In other terms,
unusually abundant crops of foodstuffs in Haiti obviated the necessity
-of purchasing foreign food supplies and permitted available purchasing
power to be expended in other directions. It is to be hoped that the
tendency of declining importations of foodstuffs which characterized
the year under consideration may be continued and that ultimately
Haiti can supply its own food requirements and perhaps enter the
markets of the world as a purveyor of food supplies.
That construction activity characterized the year 1924-25 was
,demonstrated by increased importations of cement from gdes.
314,755 in 1923-24 to gdes. 451,215 in the subsequent year, and of
lumber from gdes. 1,261,340 to gdes. 1,503,515. Importations of




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER .25

cement and of lumber were also well above the average of the nine-
year period from 1916-17 to 1924-25.
The Haitians as a people are not well housed. Fortunately the
climate is such that protection from the elements is by no means
an essential to reasonable physical well-being, but as long as the
population principally resides in unattractive and insanitary homes
there can not be as rapid-development as might be wished in public
health, public esthetics, and national pride. Therefore it is desirable
that importations of building material be continued on a large scale
during many years, in so far as.such local building materials as stone
and local woods do not provide for the total construction necessities
of the Republic.
One of the most abrupt increases in imports during the past nine
years has been in chemical and pharmaceutical products from a total of
gdes. 444,800 in 1916-17 to gdes. 1,284,460 in 1924-25. Such im-
ports demonstrate that the Haitian people are now able to supply
themselves with at least part of the remedies which are required in
case of sickness as well as with the various other facilities which are
readily suggested under the chemical and pharmaceutical schedules.
Expansion of imports of vegetable fibers and their manufactures
from gdes. 1,457,125 in 1923-24 to gdes. 2,426,225 in 1924-25 was
caused by increased production of cotton, sugar, cacao, and coffee.
All of these commodities require sacks for their manipulation, and
jute for such sacks occupied an important position in the import trade
of Haiti. Whether jute could be produced locally is well worthy of
determination.
Turning to the foodstuffs schedule it is found that fish, meats, and
rice were imported in greater quantities than during the previous
year, and in the case of fish the increase was more than 100 per cent.
As imported fish, particularly herring in various forms and dried
codfish, are considered as a great luxury by the country population,
their increased importation can be expected when the peasants are
prosperous and vice versa. On the other hand, articles made of wheat
flour, though enjoyed by the peasants, are not regarded as necessities,
and flour was not imported in as large quantities as in 1923-24, when
crops of locally produced foodstuffs were deficient.
Considerable progress has been made in Haiti in the manufacture
of lard substitutes from-cottonseed, with the result that lard and
lard substitutes no longer play as important a part as formerly in the
import trade of the country. Nevertheless, the per capital consump-
tion of fats is surprisingly small, and undoubtedly greater consumption
of lard and lard substitutes would result in increased physical energy
available for productive application. It is to be hoped, therefore,
that both the manufacture of lard substitutes will increase in Haiti
and also that importations of lard will expand.
95618-26---3




26 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

Industrial activity characterized 1924-25, as shown in increased
imports of iron and steel and their manufactures from gdes. 2,775,285
in 1923-24 to gdes. 4,791,505 in 1924-25. A considerable proportion
of this iron and steel went into new construction, and the remainder
was absorbed in the multiplex uses which are necessitated by vigorous
economic life.
The importation of leather and manufactures of leather also showed
a sharp expansion from gdes. 618,515 to gdes. 1,117,390 from 1923-24
to 1924-25. A considerable part of imports of leather goods consisted
of shoes, and the increased use of shoes by the population is one
further evidence of rising prosperity. It is also probable that imports
of leather goods will continue to expand, as the manufacture of leather
and leather articles in Haiti is only carried on in a desultory and
primitive fashion.
As was to be expected during the prosperous fiscal period, receipts of
liquors and beverages shared in the general expansion. Perhaps
part of the increase in this schedule represented purchases in antici-
pation of the revised tariff which at one time was expected to go into
effect on October 1, 1925.
Increasing numbers of automobiles and trucks, as well as of kero-
sene lamps for domestic illumination, resulted in decidedly larger
imports of gasoline, kerosene, and other mineral oil products. Auto-
mobiles can now penetrate with comparative ease into most districts
of the Republic, and their use is becoming more and more frequent.
As roads are completed, bridges constructed, and the purchasing
power of the people improved, it can confidently be predicted that
the use of motor transportation with the consequent importation of
mineral oils will be extended. In some respects Haiti is admirably
adapted to the use of motor transportation, as distances are short
and as the country is broken by many ranges of hills and mountains,
making railroad transportation especially difficult.
Of most importance in the import trade of Haiti are textiles,
and the trade in textiles during 1924-25 was particularly active.
From total imports in 1923-24 of gdes. 20,985,675, they expanded in
1924-25 to gdes. 34,597,140, an increase of gdes. 13,611,465, or 64.95
per cent. In all parts of the country the population was obviously
purchasing new articles of clothing, with the result that at the end
of the period under review the population presented a much more
tidy appearance than at the beginning. In fact there is a certain
degree of fear in the mercantile community that sufficiently large
stocks of textiles were purchased by the peasants in 1924-25 to meet
requirements during a considerable portion of 1925-26. This belief
is based on the theory that the peasants are accustomed to very
simple habits of dress and that additional new clothing will not be
purchased until the supplies acquired in 1924-25 are completely worn




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 27

out. Observers with the foregoing views admit that the country
population is likely to have purchasing power above normal during
1925-26, but they fear that such purchasing power will be expended
for other purposes than for textiles.
This office does not view with particular gratification the increased
imports of tobacco. Haiti's neighbors are all tobacco exporters, and
Dominican tobacco is favorably known in many important markets.
That natural conditions for tobacco culture exist in many portions
of Haiti is not open to dispute,but neither the capital nor the enter-
prise has thus far been forthcoming to place Haiti even upon a self-
supporting basis so far as tobacco is concerned. However, there are"
several promising experiments in tobacco culture now being developed,
and it may be hoped that there will be no necessity in future years for
increased imports of tobacco, and possibly in time exports of this
commodity may exceed imports.
In the schedule in which have been aggregated all commodities
not otherwise classified in Table No. 15 are included those multitudi-
nous articles the presence or absence of 'which is so determining a cause
of satisfactory or unsatisfactory standards of living. Accordingly, it
is pleasant to record that this miscellaneous group of commodities
increased from gdes. 14,291,960 in 1923-24 to gdes. 22,983,025 in
1924-25, an expansion of gdes. 8,691,065, or 60.81 per cent.
Thus analysis of the various commodities constituting the import
trade of the Republic as indicated by values is convincing evidence
of the favorable commercial situation of Haiti. All that is necessary
to perpetuate the favorable situation is a pronounced development
in agricultural production.
As in previous years, the volume of imported commodities has been
tabulated where possible and is presented in Table No. 16. As in
the case. of values, the quantity of imports materially increased in
all important schedules with the exception of foodstuffs and soap.
Of most importance was the decline in the volume of wheat flour
from 41,329,095 kilos in 1923-24 to 25,597,598 kilos in 1924-25, thus
confirming previous statements in regard to the available supply of
foodstuffs in Haiti during the past year. On the other hand, the
most significant increase in imports was in textiles, from 24,268,858
meters in 1923-24 to 36,465,902 meters in 1924-25.
Comparison of quantities of imported commodities in relation to.
values also demonstrates that the price levels over the past two,
years were approximately identical, as, in practically all cases, quan-
tities and values increased or declined in roughly similar proportions.









TABLE NO. 15
00
VALUE OF IMPORTS, BY COMMODITIES, FISCAL YEARS 1916-17 TO 1924-25


Commodity 1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25 Average

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Cement--..----.....-..-..-...--- 233, 825 356, 335 412,730 749,165 516, 725 283, 505 403,675 314, 755 451, 215 413, 548
Chemical and pharmaceutical
products-........-...-...-.. ---444, 800 267, 810 535, 315 1,183, 830 789,845 775, 110 765, 115 808, 170 1,284,460 761, 60 0
Fibers, vegetable, and manufac-
tures of- ---..-----........ --1,060,390 2,489,080 2,311,885 4,162, 480 549,400 1,472,715 2,193,585 1,457, 125 2,426, 225 2,013, 654
Foodstuffs:
Fish....-------......---.............. 2,501,915 1,794,440 2,287,290 3,236,650 2,083,160 2, 910,150 2,588,225 2,029, 515 4,176, 30 2,623,081
Wheat flour------------............. 4,217,865 899,140 13, 543, 870 25, 452, 250 9,243,390 7,799, 585 11,253, 000 14, 652, 430 12,880, 450 11,104,604
Meats--.. -................. 1,055,185 1,492, 390 959, 260 1, 230,870 909,360 1,160,460 1,298, 145 1,317,350 1,630,245 1, 228,140
Rice................-...-... --341, 275 354,950 6,191, 700 1, 340,580 449,715 676,990 969,835 1,320,185 1,487, 915 1,459,242
All other..---..-.....- ....... 4,588,545 3,930,730 6,840,915 11,775,850 5, 586,745 6,700, 770 6,482,060 4,345, 220 3,382,905 5,959,304
Iron, steel and manufactures of..- 605,825 4, 224, 060 3, 656,140 4,787, 525 4,026,825 2,139,475 2,676, 445 2,775,285 4, 791, 505 3,298,120
Leather.--.-- .................. 544, 620 796, 335 474, 880 1, 450,880 633,860 601,550 757,420 618, 515 1,117,390 777, 272
Lumber-...----.......----... -- -759,205 1,029,800 930,310 1,708, 285 846,155 909, 365 1,338, 780 1,261,340 1, 503,515 1,142, 973
Liquors and beverages-..--------. 838,070 711,920 646, 065 2, 525,535 1,427,010 1,255,080 1,251,195 1,325, 700 1,626,385 1,289,662
Oils, mineral:
Gasoline.....-.....-.......--. 137, 435 192,460 341, 560 692, 395 408,495 442,255 700,765 692,605 966,245 508,246
Kerosene....----.---. --- -----. 718, 180 1,046, 715 1,416, 795 1,303,340 1,058,450 970,395 783,315 852,280 907,580 1,006,339
All other--....----------.... 21,440 175, 625 231,220 277,145 170,440 165, 725 223,700 237,720 482,325 220, 593
Soap-----.. -------.... 2,471,315 4,634,180 4,198,900 4,864,620 3,077, 650 3,195, 070 2,971,060 2, 787,520 2, 714,180 3, 434,944
Textiles......-..-- ........------. 13, 322, 695 15,646,850 23, 49, 075 45, 100,185 10,813,065 16,878,230 22,695,455 20,985,675 34,597,140 22,665,374
Tobacco--..~.--- -.... --------- 1,145,945 1,279,120 1, 909,420 2,685,450 3,026,115 1,765,430 1,586,585 1,407,290 1,778,740 1,842,677
All other..----.................. 8,021, 900 581, 525 14, 750, 710 22,465,020 14,169,590 11, 649,495 9, 851,455 14, 291,960 22, 983,025 14, 196, 076
Total................. ... 43, 030,430 50,903,465 85,588,040 136,992,055 59, 786,025 61,751,355 70,789,815 73,480,640 101,187,825 75,945, 15
T otal -------------------------------5--------------------- 5

td

99

99









TABLE NO. 16

QUANTITY OF IMPORTS, BY COMMODITIES, FISCAL YEARS 1916-17 TO 1924-25

Commodity Unit 1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25 Average

Cement---...........-- ......------ Kilo---....-- 2,138, 500 4,902,545 2, 414, 364 5,441,068 2,697, 228 2,516, 977 4,870,319 5,006, 576 6,069,066 4,006,294
Foodstuffs:
Fish.-- ... -- ------------.. Kilo...------ 2,653,324 2,317,790 1,580,695 2,231,683 2,049,719 3,189,173 3,508,062 2,749,538 4,674,328 2,761,590 t
Wheat flour.---... -------. Kilo -----.--- 5,917,580 1,058,899 15,284,421 27,221,200 12,288,419 14,874,210 30,971,319 41,329,095 25,579,598 19,391,638 0
Meats....----- -----.---- .------ Kilo----........ 430, 809 453,290 582, 874 550, 837 482,909 714, 041 879,974 895, 465 784,487 641, 632
Rice..---...--...... .--------- Kilo-------- 450, 136 297,283 1,121, 984 825, 281 684, 033 1,263,508 2, 568,167 3,275, 894 3,118,540 1, 511, 648 H
Liquors and beverages---.....-----.. Liter....-------- 752, 756 552,975 400, 796 1,065,022 600, 138 813, 806 811,096 1,043,330 1,324,142 824, 896
Lumber....... ... ---- ------------- Cubic meter_- 7,096.02 6,890 6,714.02 8,785.07 4,362.05 9, 114.04 14,764 14,277.23 16,052.32 9,783.86
Oils, mineral: i
Gasoline. --- ---------- -- Liter..------.. 156,030 321,127 441,720 1,200,971 617,767 837,476 1.71i '" 2,081,498 2,586,369 1,113,838 Ij
Kerosene---...........----------. Liter..----- -- 3,091,807 3,401,486 2,639,242 2,949,602 2,391,708 3,077,366 *1 l 3,454,020 3,500,164 3,103,712
Soap...------- ---------------- Kilo ---. ...-- 2,802,800 3,004,456 2,726, 266 3,256,239 2,362,139 2,072,001 3,666,687 4,375,339 3,413,898 3,164,425
Textiles ----------------- -- Meter- -- 23,015,802 18,727,69 23,993,601 32, 430,919 13, 919, 047 26,674,986 30,429,726 24,268,858 36, 465,902 25,550, 726
Tobacco----........... ----------- Kilo...------- 54, 151 452,098 524, 650 961, 364 992, 659 616, 009 682,336 659,126 912,776 705, 019
--------------------------------------------------__------- ****------2__




30 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

COMMODITIES EXPORTED
The export trade of Haiti is confined to a small number of rela-
tively simple commodities. In fact 12 articles constitute some 97
per cent of total exports, and all of these products are of a simple
nature involving little or no manufacture. As for the large number
of complicated products which constitute the export trade of indus-
trial countries, it is unlikely that for many years, if ever, Haiti will be
in an analogous position.
As in previous years, coffee remained the backbone of Haitian
export trade, accounting for gdes. 76,999,495 of total exported values of
gdes. 97,018,810. Thus the relative importance of coffee in 1924-25
was almost four-fifths of total exports. Due to many causes which
need not be described at this time the price of coffee during the past
fiscal year was exceptionally high, with the result that the returns on
the Haitian crop were practically without precedent, with the excep-
tion of the year 1918-19 when virtually two coffee crops were shipped
in a single year. Export values of the 1924-25 crop exceeded those
of the previous year by gdes. 25,190,615, or 32.71 per cent. Although
Haiti may well be pleased at the price obtained for the 1924-25 crop,
false hopes and policies should not be based on a situation which is
unquestionably transitory. There is no more reason to suppose that
coffee can remain at abnormally high prices than that rubber, sugar,
and other commodities which certain circumstances have raised to
fictitious values can continue to command exceptional prices. It is
also probably worth noting that abnormally low prices can equally
continue for no considerable period of time. For that reason the
producers of cacao and sugar should take such cold comfort as may
be possible.
Other products of Haiti which showed increased export values in
1924-25 were beeswax, cacao, honey, lignum-vitoe, logwood, and log-
wood extract. While some of the increases were substantial, such as
that in logwood, the general export situation of Haiti can not be
regarded with particular satisfaction. Numerous additional products
should appear in the export schedule, and also such articles as honey,
cotton, skins, and sugar should be produced and exported in much
larger amounts than at present.
After the unusual depression of 1923-24 it was not surprising that
the value of cacao exported from Haiti should show some recovery
in 1924-25, but even in the latter year the exports of this commodity
did not equal half of the average over the nine-year period from
1916-17 to 1924-25. In spite of the somewhat better situation in
the cacao industry it is reported that cacao gardens are being aban-
doned, and it is almost certain that no additional planting is taking
place. Consequently, in the absence of materially altered conditions,
it is probable that the cacao industry will not maintain the relative
importance which it had in the past.




HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER 31

Some slight falling off in the exported value of raw cotton and
a 50 per cent decline in the value of exports of cottonseed are ex-
plained in the first case by lower prices and in the second by the fact
that increasing quantities of cottonseed are being utilized locally in
the manufacture of lard substitutes. For raw cotton the volume
exported was greater than in the previous year, although the value
was somewhat less. Exports of cottonseed, however, declined from
5,842,327 kilos in 1923-24 to* 2,468,946 kilos in 1924-25, or 57.74
per cent.
An auspicious indication in -the export trade was the sharp increase
in the value of exported honey. Bee-keeping is an industry peculiarly
adapted to conditions in Haiti, and the great abundance of logwood
blossoms should render possible a flourishing trade in honey, as log-
wood honey is of excellent quality.
Another minor export industry which showed improvement was
lignum-vitse, but this industry is of slight importance at best and
must be expected gradually to decline as time goes on.
Revival of the logwood industry was reflected in export values
of gdes. 2,672,580 in 1924-25, as compared with gdes. 1,675,330 in
1923-24. The quantity of logwood exported showed a corresponding
expansion from 21,563,005 kilos to 32,303,035 kilos. Nevertheless,
even these larger volumes and values of logwood in neither case
approached the levels of the nine-year average. Unfortunately, the
logwood industry is one which may also be expected to decline in
importance in the course of years, as replanting and natural growth
in no way compensate for the wood which is consumed.
Conditions existing in Haiti are well adapted to the raising of
goats, and the exportation of goat skins might be expected to increase.
This expectation was not realized, as during the last five years the
average has been less than half that of the entire period of the Ameri-
can intervention. Even the unsatisfactory showing of 1923-24
was not equaled in 1924-25.
Similar comments are required in connection with sugar. The value
of exports of this commodity was only gdes. 1,882,660 in 1924-25,
as compared with gdes. 3,102,060 in 1923-24, and the nine-year
average of gdes. 2,163,930. Apparently sugar production has not
made rapid progress in Haiti though there are certain mitigating
circumstances such as the inordinately low price of sugar in 1924-25,
and the considerable increase in local consumption, thus diminishing
exports to a corresponding extent. In fact, though the value of
sugar exports was inferior to the nine-year average, the quantity
was, superior, and indeed in quantity the exports of 1924-25 were
only exceeded twice in the previous nine years. As importations of
refined sugar somewhat declined, and as it is certain that the con-
sumption of sugar increased by a considerably greater amount than




32 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

the decline in sugar imports, it is entirely possible that Haitian
production of sugar during 1924-25 equaled or exceeded that of
recent previous years.
Perhaps the most encouraging feature of Haitian exports during
the fiscal year under review was the expansion of miscellaneous
items grouped together under the title "All other exports." These
increased from gdes. 823,780 in 1923-24 to gdes. 2,098,345 in 1924-25.
The only conclusion which can be drawn is that at least some diver-
sification in Haitian products is occurring, and it can only be hoped
that this policy will be vigorously pursued.
Tables No. 17 and No. 18 present details of the value and volume
of exports for the period of the intervention. Of particular signifi-
cance in the analysis of the entire export situation is that the in-
creased values in 1924-25 above the previous year and above the
nine-year average were attained almost exclusively from higher
prices and not from greater physical volume of exports. As to coffee,
which accounted for practically the entire increase in value, only
1,364,900 kilos were exported in excess of the previous year, the in-
creased quantity amounting to but 4.68 per cent, while the increased
value was 48.62 per cent. Furthermore, the exports of coffee during
1924-25 were but slightly in excess of the nine-year average. In
fact, from the point of view of physical volume of exports, 1924-25
showed a decline from the nine-year average in beeswax, cacao,
cottonseed, lignum-vitoe, logwood, and skins, and the only product
which showed marked expansion was logwood extract, which is a
relatively unimportant export. At the risk of undue repetition it
should once more be emphasized that increased volume and increased
diversification of exports are essential if Haiti's economic position is
to be assured. Without the bonanza price of coffee during 1924-25
exports would have made an unsatisfactory showing in value as well
as in volume, which immediately would have been reflected both in
the value of imports and in receipts of the Government.








TABLE NO. 17

VALUE OF EXPOrTS, BY COMMODITIES, FISCAL YEARS 1916-17 TO 1924-25


S Commodity


Beeswax.........................
Cacao.---.....---....-... --
Coffee..------.. .............
Cotton, raw ....-.-............
Cottonseeds.....................
Honey......----- ..
Lignum-vitBe.....................
Logwood ----.----- ..--- ..._.
Logwood extract........... .....
Skins ------ - -



Total .......................


1916-17 1917-18.

Gourdes Gourdes
117,515 54,905
2,893,135 2,656, 400
30,043,810 21,617,905
1,803,275 3,479,205
423,225 136, 600
965,165 879,165
621, 320 203, 985
3,820,695 2,001,390
75,315 ---. --
1, 625,520 874, 780
...... 325
*1, 3,440
1,567, 010 6,809,550


1918-19 1919-20 1920-21 1921-22 1922-23 1923-24


Gourdes
88,175
3,801,090
96, 813,545
9,370,550
448, 895
1,313,135
386,410
3,758,550
62, 865
2, 736, 440
2, 60,140
109, 565
2,361, 735


Gourdes
25,155
3,542,450
65,156,410
11,44, 840
674,685
663,685
630,845
16,824,060
131,230
1,863,000
4,507,050
145,155
2,396, 075


I


Gourdes
4,855
1, 370, 620
37,436, 560
7,073,035
584,860
310, 380
131, 285
2,266,780
267, 985
325, 625
2,687,375
66,550
1,035,110


Gourdes
2,435
1,326,740
54,321,045
9,140,510
985,035
225,985
438,310
2,493,310
389, 730
3;,,. !,j
2, 41 .
'=~ -


Gourdes
4, 405
696,765
51,808,880
10, 343,140
1,012,900
148,275
90,180
1,675,330
528, 020
513, 355
3,102,060
134,520
823, 780


1924-25

Gourdes
6, 560
921,040
76,999,495
9,961,320
498,615

2, 672, 580
780, 520
465,810
1,882,660
117,055
. 2,098,345


44,664,430 38, 717, 650 123,811,095 108, 104,640 32,952,045 53,561, 00 72,955, 060 70,881,610 97,018, 10


TABLE NO. 18

QUANTITY OF EXPORTS,' BY COMMODITIES, FISCAL YEARS 1916-17 TO 1924-25


0






M
W
Q
06
C
i

w
06

0l3
03&


Commodity 1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25 Average


Kilos Kilos Kilos Kilos Kilos Kilos Kilos Kilos Kilos Kilos
Beeswax.--..........-- ........... 29,963 17,164 27, 417 7,585 13, 766 2,698 1,500 1,462 8, 292 12, 20
Cacao---........................ 1,905,134 2,162, 691 2,395,479 2,178,429 1,152,959 2,152,145 2, 019,847 1,647,029 1, 533, 772 1, 905, 2
Coffee -....--... ~~.--.......... 22, 705, 009 19,151,342 48, 889,215 33, 429, 063 22,367,077 28,599,337 35,848,208 29,402,200 30,767,100 30,128,728
Cotton, raw------...............- 1,232,502 1,563,351 4,408,067 3,287,687 1,951,847 4,193,575 3,361, 709 3,323,389 3,605, 749 2,991, 76
Cottonseeds .........- ........... 1,826,694 1,156, 910 2, 622,446 2,874, 769 3,923, 232 8, 11, 376 5,826, 236 5, 842, 327 2,468, 946 3,850,326
Honey-----.-................... 862, 009 776, 216 916, 926 668,265 435, 990 707, 611 455, 097 308, 048 648,846 642,11
Lignum-vit .................-.... 7. Pf?, 32" 1,963,455 2,873,425 5,004,351 2,710,364 2,027,384 5,210,157 2,254,632 2,460,663 3, 570 752
Logwood-......--................... l 1, .. 24,958,773 37,884,038 129,566,275 36,426,625 29,350,604 34,278,658 21, 53,005 32,303,035 43, 549, 16
Logwood extract.................. 193, 095 ............ 135, 859 283, 733 ... 626, 852 1, 084, 471 778, 777 1,020, 280 455, 89
Skins................ .. ....... 348,159 200,405 466,027 281, 220 121, 524 103, 865 135, 632 155, 754 129, 316 215, 76
Sugar--- -----............. ------------ 236 4,134,495 3,437,117 5,145,136 10,826,843 4,656,967 6,242,781 5,359,360 4,433,659
Turtle shells..-................... 476 116 5,971 837 777 749 1, 274 1,972 1,973 1, 57





Gourdes
14,255
741, 530
21, 365,125
1,781,535
460,025
149, 315
340, 520
4,320,700
----- -
413, 710
2,317,365
39,140
1,008,855


Average


Gourdes M
35,362 *d
1,994,419 O
;,,3,; ,,'
:, !, ,, ,:'
580,538
569,898
331,521
4,425, 933 06
326, 185 '
1,020, 961
2,163,930
74,941
2, 099, 224
71, 407, 377
--


II -


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34 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

Inasmuch as the 'exports of Haiti are composed of but a few
principal items, it is possible to present data for those items classi-
fied according to the port of shipment. Such data is assembled in
Table No. 19. For coffee, Port au Prince was the leading export
port, followed in order by Petit Goave, Jacmel, Cape Haitien,
Cayes, and Gonaives. Saint Marc handled approximately one-half
of the exports of cotton, with Port au Prince in second place and
Gonaives third. Cape Haitien was the principal export point for
logwood, with Saint Marc second, Cayes third, and Aquin fourth.
The only port which reported shipments of sugar was Port au Prince.
More than half of the value of cacao exported from Haiti was dis-
patched through J6r6mie, and the next ports in importance were
Port de Paix and Port au Prince. Thus it is evident that there is
considerable diversity of emphasis of export products, with one
district adapted to one product and other districts to other products.
The five principal exports, together with a schedule entitled,
"All other," are presented in Table No. 20, in accordance with the
percentage which each constituted of total exports. During 1924-25
the predominance of coffee was maintained and even increased, as
the proportion for the year was 79.39 per cent in comparison with
73.09 per cent in 1923-24. In fact coffee in 1924-25 constituted
the largest proportion of total exports during any year since the
treaty of September 16, 1915. Consequently the relative importance
of most other commodities declined, and this was particularly true
in the cases of cotton and of sugar. If and when the price of coffee
reverts to more normal levels the economic life of Haiti will be
seriously affected, unless the volume of coffee and of other exported
products is sharply increased.
In order to show the seasonal distribution of the export trade of
Haiti Table No. 21 has been prepared. For coffee, the months of
chief activity in 1924-25 were November, December, January, and
February; for cotton, March, April, May, and June marked the peak
of activity; exports of logwood were fairly evenly distributed through-
out the year, and the same was true of miscellaneous exports included
in the designation, "All other." However, miscellaneous exports
showed a tendency to be concentrated in the latter months of the
fiscal year which correspond to the "dead season" for coffee-and
cotton. This, obviously, is highly desirable.
As in previous years, full details for imports and exports, showing
countries of origin for imports and countries of destination for exports,
have been assembled and are presented in Schedules No. 1 and No. 2,
appended to this report.'
1 See post, pp. 129-151 and 152-155.








TABLE NO. 19
QUANTITY AND VALUE OF FIVE PRINCIPAL EXPORTS, BY PORTS, FISCAL YEAR 1924-25, COMPARED WITH FISCAL YEAR 1923-24


Port Coffee Cotton Logwood Sugar, raw Cacao, crude

Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes
Aquin ------..... -......... 457,339 1,119,650 69,208 187,085 3,263,268 252,170 --....... ---. --. --........... 151 65
Cape lHaitien----....-.......- .. 3,668,432 9,160. 610 79,168 215,505 12,476, 653 1,040,010 .......... ------------- 151,776 58,675
Cayes...---- ---------------- 3,445,238 8, 639, 685 56,867 156,870 3, 296, 718 265,095 ..................-. ......................
Gonalves--..----------...--..-- 2,954,777 7,435, 640 375, 768 1,023,730 399, 432 30,600 .................... --- -------- --- ----.
Jacmel-..---..-..- -----~.--- 4,551,759 11,533,170 262, 452 711,325 213,860 17, 715 .......................................
Jermie.---......---..--- ------..- 1,161,032 2, 836,375 2,934 7,550 1,168,024 90, 970 -...-..-...... ..-.......... 688,107 500, 825
MiragoAne.--......--..- ...... 901, 748 2, 235,750 --....---.....- ----....--- 1,680, 786 129,265 .....-.......................... .. ..
Ouanaminthe--.....--------...--.---------.. 116 170 .......... ........ .----------- .... --------. --- --
Petit Goave---......----------....... -------- 5,257,326 12,991,700 231 510 --- ----------- -- ---..-- ----27,019 16,895
Port de Paix..-.... ---- 1,689,536 4,241,295 11,150 30,710 798,864 65,280 ................ ...... 30),300 192,215
Port au Prince--..- --.. ...-. 5,991,463 15,011,070 983,048 2,791,720 ......----------.------... 5,359,360 1,882,660 365,419 152,365
Saint Marc.--..-.................. 688,284 1,764,380 1,764,923 4,836,315 9,005,430 781,475 .......--- ----
Total, 1924-25..... -------... 30,767,100 76,999,495 3,605,749 9,961,320 32,303,035 2,672,580 5,359,360 1,882.660 1,533,772 921,040
Total, 1923-24--.....---..........-- 29,402,200 51,808,880 3,323,389 10,343,140 21,563,005 1,675,330 6,242,781 3,102,060 -' 1,647,029 96,765
Increase, 1924-25 ..---..------ 1, 364,900 25,190,615 282,360 ---...---.. 10,740,030 997,250 .------ .-- .--- --- --- 224,275
Decrease, 1924-25--..---......------------------ ----- 381,820 --------------- 883,421 1,219,400 113,257 ...


TABLE NO. 20

PERCENTAGE OF VALUE OF EXPORTS, BY COMMODITIES, FISCAL YEARS 1916-17 TO 1924-25

Commodity 1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25 Average


Per cent Per cent Per cent Per cent Per cent Per cent Per cent Per cent Per cent Per cent
Coffee------------ ----............----.------------- 64.00 50. 15 76.41 57.97 58. 79 69.90 74.46 73.09 79.37 67.13
Cotton ...-- ..-- .......--- ...............---------- -. 4. 92 10. 98 8. 65 12. 08 7.04 13. 21 12. 53 14. 59 10. 27 10. 47
Logwood............--- .......... ----- -----........... 852 5.08 2.93 14.98 15.03 4.23 3.42 2.36 2.75 6.59
Sugar, raw--............-- ...............---------------.......... .------ 2.36 4.73 9.23 5. 02 3. 32 4. 38 1.94 3.44
Cacao, crude.......-...-.......-...... --------------- 6.78 6.86 3.02 3.25 1.91 2.06 1.13 .98 .95 2.99
All other......................------------------- -- 15.78 26.93 6.63 6. 99 8.00 5.58 5.14 4.60 4.72 9.38

100. 00 100. 00 100. 0 100. 00 100.00 100.00 100. 1000 100.0 00 100.00


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TABLE NO. 21
QUANTITY AND VALUE OF EXPORTS, BY COMMODITIES AND MONTHS, FISCAL YEAR 1924-25

Month Coffee Cotton Logwood Sugar, raw Cacao, crude All other All exports

Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes Gourdes Gourdes
October, 1924 ...-----.--..- 2,433,264 6,138,840 16, 734 3, 750 1,551,225 118,840 ---23, 723 9, 220 169,890 6, 473, 540
November ------------........ ---... --- 3,769, 042 9,934,875 419 920 1,811,10 138, 750 ------------------------ 1,294 49, 195 157, 755 10,281,495
ecember ....------------......... 5,640,358 14,475,000 26,789 58,835 6,146,633 474,970 1-------- --------- 240,314 39, 345 247,715 15,395,86
January, 1925-----.......----------.. 4,949,894 13,319,710 2,567 5,735 4,140, 711 317,220 ------------------------- 270,143 236, 130 157,575 14,036,370
February--.....--------------..............-- 4,539,274 11,190,175 191,036 513,385 2,540,602 197, 875 ------------------------ 23, 214 104, 510 285,090 12,291,035
March....................... 2,459,256 5,951,325 828,388 2,416,600 203,143 16,600 3,062,430 1,130,235 204,088 112, 280 410,925 0, 037, 96
pril.....-----------------....... ----- 1,98,653 4,677,640 941, 114 2,728,375 0, 994,84 562, 80 1,421,701 477,000 160,101 86,415 445,230 8,977,240
May ------...... ...-.... 1,445,443 2,980,735 711,841 1,848,395 1,443,967 117, 995 ------------ 50,815 29, 645 872, 975 5, 849, 74
Juno......................... 919,287 2,085,910 422,252 1,127,875 520,728 42,560 ------------ -- 127,400 73,515 500,715 3,830,575
July.-------------------.....---........ ------........ 722,117 1,562,775 315,771 836, 655 1,046,061 85,480 ------------ -- 74,378 46, 625 432, 010 2,963,545
August .....................----------------------- 611,647 1,514,560 100,905 265,390 206, 570 17, 725 875, 226 27, 42 10, 547 5,815 597, 750 2,676,66
eptembr ................ 1, 288,865 3,167, 950 47, 933 122,405 5,697, 661 581,985 ... .......-- 45, 755 28, 345 304, 085 4,204, 770
Total-............. ----- 30,767,100 76,999,495 3,605,749 9,961,320 32,303,035 2,672,580 5,359,360 1,82,660 1,533,772 921,040 4,581,715 97,018,810


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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 37

CUSTOMS ADMINISTRATION
No important changes in the operation of the custonis service
were instituted during 1924-25. There was an effort to render
prompt and courteous service, and it is believed that in a general
way the incoming and outgoing commerce of Haiti was handled in an
expeditious and satisfactory manner. Further efforts were made
toward establishing uniformity.of practice at the several ports, both
in connection with the classification of merchandise and the various,
elements of customs procedure. For this purpose numerous district
circulars were issued, and.it is believed that at the present time prac-
tices of the several customhouses are identical and also in accordance
with the provisions of the tariff.
A problem which had been creating considerable difficulty between
the customs service and shippers was that of conducting customs
operations outside of regular office hours. This problem was thor-
oughly studied, and appropriate regulations issued establishing regu-
lar office hours which are now uniform in all ports. "Overtime" at
the expense of importers, exporters, and shipping companies was also
defined, and the charges which are to be paid for such supplementary
services were established.
It has also been the policy of the administration to furnish the va-
rious customhouses and the central office such equipment and facili-
ties as would enable operations to be handled in an expeditious and
convenient manner. For this purpose, office furniture, typewriters,
calculating machines, filing cabinets and other standard, modern
equipment have been purchased and installed. Better work should
be done under pleasant surroundings, and with proper facilities, and
the application of the foregoing principle in the customs service of
Haiti has, as expected, yielded encouraging results.
TARIFF REVISION
The most important work prosecuted by the customs administra-
tion during 1924-25 was continuation and completion of a thorough-
going revision of the import tariff. Undoubtedly Haiti is at the
present time laboring under one of the worst tariffs in existence. The
schedules are badly constructed and incongruous, and there are
innumerable opportunities and even invitations for controversies.
Although there has bien general agreement about the desirability
of tariff revision, there have also been approximately as many ideas
on the exact nature of such revision as there have been individuals
who considered the problem. Unfortunately, much of the comment
on the proper method of tariff revision has clearly been motivated by
personal interest, other discussion has been sincere but uninformed,
and the problem has been further complicated by the meagerness of
accurate information available to those responsible for the prepara-
tion of the new tariff.




38 HAITI: REPORT OF FINANCIAL ADVISE--GENERAL RECEIVER

In a general way, however, commercial experience has demon-
strated that certain tariff principles are applicable to given economic
and social situations. Thus a different system is required for a highly
industrialized country from that which is appropriate for an undevel-
oped agricultural state. In the latter case, it is clear that questions of
tariff protection are relatively unimportant and that revenue con-
siderations are paramount. Yet even for a country with a simple
economic life tariff schedules and the rate structure should be so
constructed as to encourage local industry and also support agri-
culture. Finally, where total imports are relatively small, as in Haiti,
and where the infinite articles which constitute present day commerce
result in small and infrequent importations of many of those articles,
it follows that the customs authorities are not enabled to be closely
informed as to the current values of all items. Therefore, a tariff
based upon specific rates should be adopted, though it is entirely
practicable to take account of unusually valuable grades of any
given article by means of alternative ad valorem duties.
In accordance with the foregoing principles the revision of the
Haitian tariff was planned and executed, and the tariff is at present
ready for enactment into law. Unquestionably its adoption will
stimulate commerce by avoiding the uncertainties and inconveniences
which have been too characteristic of the past.
Existing tariff schedules are also in many instances out of har-
mony with accepted theory in regard to the incidence of taxation.
Articles of luxury pay rates which, when reduced to an ad valorem
basis, are less than those paid by standard articles and articles of
first necessity. Thus the urban population has not borne its proper
share of the burden of supporting the Government, although the
major portion of governmental revenue was expended in the cities
or for purposes principally beneficial to the urban population. Un-
der the revised tariff the tax burden will be somewhat equalized,
although there will still be room for improvement in adjusting the
costs of government between the urban centers and the country dis-
tricts. For it must be recalled that the contribution of the cities to
the economic life of Haiti is of a minor nature, as manufactures are
almost nonexistent, as commerce is of simple character and propor-
tions, and as organized transportation is negligible. Thus it is evi-
dent that practically the entire wealth of the Republic is derived
from agriculture and from forestal products, and it is obvious that
the productive classes should not be burdened with taxation for the
purpose of expending the revenues derived from agricultural sources
on the comparatively unproductive urban dwellers.
In previous reports it has been stated that in theory an export tax
is of no greater economic burden than an equal import duty, provided
each amount is collected from the same individual. To give practi-




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 39

cal application to the foregoing proposition it may be said that an
export duty of 15 centimes on a pound of coffee produced by a peas-
ant is no greater burden than an equivalent import duty on a yard of
cotton cloth which the peasant* purchases. But when the peasant
has to pay both export and import duties, while the city dweller
pays only the import duty, it is clear that a disproportionate burden
is placed on the agriculturist, and the result is that he is discouraged
from increasing his output of export products. There is considerable
evidence to the effect that the export duties of Haiti have had a re-
tarding effect on Haitian agriculture, partly because the average tax-
payer does not appreciate that the Government requires a certain
amount of revenue in order to function and that it is of relative indif-
ference to a given individual whether his proper contribution is taken
as an export tax or an import tax or in increased internal revenue
taxes. In addition, the principal export tax of Haiti is the duty on
coffee, and in this instance Haitian coffee growers have to compete
with those of other countries who pay smaller export duties or none
at all. To be sure, the coffee growers of Haiti fail to recall that the
growers of competing countries often have heavier taxes of other
kinds, such as import duties, land taxes, and the like. They only see
that coffee produced in Haiti has to pay a duty of 15 centimes per
pound when it leaves the country, and they feel that their industry
is unduly burdened. In short, though the export duties constitute
more of a psychological than a fiscal problem, it must be admitted
that the problem exists, and if production is being hampered by ex-
port taxes it may well be considered how those taxes may be reduced
or abolished, provided equal revenue can be obtained from other
sources.
Thoroughgoing revision of the customs tariff has necessitated
careful consideration of the broader aspects of commercial policy.
One of the characteristics of Haitian tariff practice has been the
granting of preferential rates to numerous products of French origin.
These tariff favors were granted ostensibly in exchange for corre-
sponding favors from France in the form of minimum duties on the
principal Haitian products entering that country. Apparently the
Haitian authorities overlooked the fact that products from prac-
tically all of its principal competitors were entering France with
the same tariff treatment as products from Haiti received and in
most cases without the concession of any special favors on the
part of those competitors. In short, the arrangement was dis-
tinctly a one-sided affair.
In formulating plans for the revised tariff it seemed desirable to
depart from the former system of bargaining by reason of giving and
receiving special favors and to construct the commercial policy of
Haiti upon the principle of universal and reciprocal, most-favored-




40 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

nation treatment. Such a course of action involves the abolition of
important privileges at present accorded to France and certain
minor privileges accorded to the United States. In some quarters
it has been feared that the termination of the tariff preference for
French merchandise may react unfavorably on the exports of Haiti.
That such a result is not probable is clearly evident from the fact
that France at present gives no special favors to Haiti and can
therefore not be expected to put Haiti in a definitely unfavorable
tariff situation while Haiti is granting to France full most-favored-
nation treatment. Secondly, the French market is as eager to
obtain certain Haitian products as is Haiti to retain the outlet in
France for those products. As the advantage is mutual the French
Government is not likely to injure both its own citizens and the
government of a friendly state merely in a spirit of vindictiveness
because Haiti has withdrawn disadvantageous preferences for which
it received no adequate compensation.
Incidentally it may be stated that the withdrawal of the present
preferences is most desirable from the point of view of customs
administration, as it is difficult to obtain and verify certificates that
merchandise subject to tariff preferences originated in the countries
entitled to such preferences. Furthermore, the Government is ex-
pected to pay regular customs duties on its own importations under
the new tariff, and customs exemptions now granted under various
contracts with the state will gradually expire. Thus in time the
operation of the customs service should be greatly facilitated, and
some of the principal causes of controversy should eventually be
removed.
CUsToMs OPERATIONS
Under the treaty of September 16, 1915, the costs of the activities
intrusted to the Financial Adviser-General Receiver are to be met
by a first charge of 5 per cent against customs revenues. For many
years the proceeds of this 5 per cent deduction have been known as
the receivership fund or the 5 per cent fund. During former years
of the receivership the policy was adopted of enlarging the receiver-
ship fund, so as to avoid the necessity of requesting the Haitian
Government to assume possible operating deficits. By the year
1923-24 the fund had grown to such proportions that it was deemed
desirable to authorize the construction of a finance office building to
house the administrative offices of the customs service, the auditing
and accounting services, the internal revenue service, and also pro-
vide office space for the Ministry of Finance and the registry service.
In the year 1924-25, 5 per cent of customs receipts amounted to
gdes. 1,787,500.90, and was the largest of any year during which the
treaty has been in effect. Against this fund disbursements of gdes.
1,849,537.49 were made, leaving a deficit of gdes. 62,036.59. How-
ever, the deficit was much more apparent than real, as it had been
the practise in previous years to pay the treasury commission of 1





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 41

per cent to the Banque Nationale de la R6publique d'Haiti after the
close of the fiscal year, whereas in the year under review the policy
was adopted of paying the commission of the bank as of the last day
of the fiscal year. Thus during 4924-25 the treasury commission
for two years was paid and charged against the 5 per cent fund. As
the treasury commission in the latter of these years for customs
account amounted to gdes-357,500.18, it follows that if the method
of former years in handling the bank commission had been continued
there would have been a surplus of gdes. 295,463.59. Hereafter
the treasury commission accruing to the bank during a given year
will be charged to the receivership expenses of that year.
For the entire period of the receivership the 5 per cent fund showed
a surplus of gdes. 353,462.14, as indicated in the asset aid liability
account presented in Table No. 47,
General features of the income and outgo of the 5 per cent fund
are presented in Table No. 22, and it is there indicated that during the
first years of the American intervention the operations of the Finan-
cial Adviser-General Receiver were conducted on a very economical
scale, thus permitting a considerable surplus to accumulate which
would be available in years of adversity. Happily but one year of
adversity occurred, the year 1920-21, but during that single fiscal
period the deficit was two-thirds as large as the receipts of the 5 per
cent fund. Thus the wisdom of preparing for an emergency was
clearly evidenced.
TABLE NO. 22
RECEIVERSHIP FUND, FISCAL YEARS 1916-17 TO 1924-25
Receipts Expenditures Surplus Deficit

Gourdes Gourdes Gourdes Gourdes
September, 1916-.............------------ 60,211.85 89,850. 15 .. ...-- ...-- 29, 638. 30
1916-17..............-------- ----........ 914,794.70 796,625. 70 118,169. 00 .............
1917-18.......-----..... --------....... 755,464.80 741,055.80 14,409. 00 ..............
1918-19-------.. -----.... --- -----.. 1,432,176. 60 700,035.60 732,141.00 ...........
1919-20........ -----...............-- ----- 1,603,639.95 1,380,460. 60 223,179. 35 .............
1920-21 ----------------------------------- 882,854. 05 1,452,073.10 ..--------------- 69, 219. 05
1921-22.--------------------------------- 1,377,811.70 1,279,142.25 98,669.45 --.............-----
1922-23------------... -----------..----------... 1,555,057.00 1,438,506.15 116,550.85 -----
1923-24--------------------------------- 1,607,569.51 1,896,332.08 -----.. ----.-------.....288,762.57
1924-25--------------------------------- 1,787,500.90 1,849,537.49 --..--...----------- 62, 036. 59
Total................----------..- 11,977,081.06 11,623, 618. 92 1,303,118.65 949, 656.51
Average (9 years) ........ .--------- 1,324,096.58 1,281,529.86
Deficit for period..------.. ---....... ....------..... ... ... ------- 949,656.51
Surplus for period..--...----.-....- ----......... --... .... .-------. 353,462.14

At present, however, revenues are apparently on a more stable
basis than during the war and post-war period, and accordingly the
policy has been adopted of merely retaining a comfortable working
balance in the 5 per cent fund and of expending the remainder for
much needed capital improvements in the customs service. The
most expensive of these improvements was the finance office building,
which was charged against operating expenses of 1923-24 and was
practically constructed in the fiscal year 1924-25, though the building
was not occupied until shortly after the close of that year. The





42 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

building has proved itself to be well designed and substantially and
economically built and reflects great credit on the public works
service, which was in charge of plans and construction.
Other important permanent improvements for the customs service,
such as warehouses and docks, have been paid for in part from the 5
per cent fund and in part from the general funds of the Government.
The most important of such improvements which have been under-
taken or completed during the year 1924-25 were as follows:


Permanent improvements initiated or com-
pleted in customs service, fiscal year
1924-25
Construction of warehouse------
Repairs to wharf-----------
Construction of customhouse
and residence for collector.
Concrete floor in principal cus-
toms warehouse.
Improvement of loading and un-
loading facilities.
Construction of new wharf.----.
Remodeling of residence of col-
lector.
Construction of addition to cus-
toms office building.
Reroofing of warehouse ......--
Construction of residence for
collector.
Rearranging of customs office
building.
Construction of new dock _____
Construction of customhouse
and residence for collector.
Construction of customs office
building.


Port au Prince..-- Enlargement of parcel post office-


Port de Paix -_--

Saint Marc------


Construction of additional ware-
house.
Raising floor of one warehouse_ -
Construction of drainage works
to prevent flooding in ware-
house.
Purchase of port launch .......
Improvement of water front ---
Extension of wharf for coastwise
traffic.
Construction of finance office
building.
Construction of customs office
building.
Building of new dock----......
Building of new warehouse .---
Construction of new loading
platform.
Construction of new scale house.
Enlargement of customs office
building.
Purchase of land and construc-
tion of residence for collector.


Contemplated improvements


Construction of new dock.


Construction of additional
warehouse.



Construction of dock.

Construction of dock.
Construction of residence
for collector.


Construction of dock.
Purchase of residence for
collector.
Construction of customs
office building.
Construction of residence
for collector.
Improvement of water
front.


Aquin.----------
Belladere--------

Cape Haitien----


Cayes-----------

Gonaives .-------


Jacmel.--------.

J6remie-.------. -

MiragoAne -----.
Ouanaminthe..---
Petit GoAve-----


~





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 43

It is obvious that the foregoing program was rather extensive, and
the satisfactory progress which has been made was principally due to
the energy and interest of the public works service, under the direction
of which the work was conducted: All construction is of permanent
character, so that repairs and replacements should, after the comple-
tion of the entire program, be a diminishing charge against the re-
ceivership fund.
Although considerable progress in the construction of necessary
permanent improvements has taken place there is still much to be
done, and it is estimated that the entire surplus of the 5 pe cenrt
fund above ordinary operating expenses will be necessary for a
period of several years in order to obtain fully satisfactory plant and
equipment.
Under the treaty of September 16, 1915, it is apparently contem-
plated that 5 per cent of customs revenues is available merely for
operating expenses of the Financial Adviser-General Receiver.
However, it has been the constant aim of the Financial Adviser-
General Receiver to maintain operating expenses within such limits
as were consistent with efficient service, and there has consequently
been no objection to paying the treasury commission of the Banque
National out of the 5 per cent fund and to expending such surplus
as might remain in the fund for capital improvements for the benefit
of the Haitian Government. In this connection it should be noted
that ordinary operating expenses in 1924-25 have been maintained
at approximately the same level as during prior years, although the
volume of commerce has materially increased and although the activi-
ties of the office of the Financial Adviser-General Receiver have con-
siderably expanded. This is well illustrated by examination of
Table No. 23, which shows that administrative expenses in 1924-25
were greater by less than gdes. 5,000 than in 1923-24, and were less
by more than gdes. 44,000 in comparison with 1922-23. Moreover,
the expenses of operating the customhouses increased only from
gdes. 648,959.62 to gdes. 673,495.96, an increased expenditure of
3.69 per cent in comparison with an increase of 19.36 per cent in
customs revenues.
TABLE NO. 23
EXPENSES OF FINANCIAL ADVISER-GENERAL RECEIVER, BY OBJECTS OF
EXPENDITURE

Administra- Civil pay Customs Permanent Bank cor- Total
tion clerks operation improve- mission
opera ion ments
Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
September, 1916...--------.....-- --------....-- ......---..-.......--- ------ 89,850. 1
1916-17---..---------...... ----. ----- -------- -------------- ----------------------------- 796,625.70
1917-18 ----------------------------------------------------.... ...... ----------- -------------- 741,055.80
1918-19 .--.----------------------...---------------------------------..---------------- --- 700,035.60
1919-20-----------. 329,634.00 .......------- 508, 70.75 114,500.00 427,755.85 1,380,460.60
1920-21 -----.... 408,798.70 17, 700. 00 547, 194. 55 .. .----- 478,379.85 1,452,073.10
1921-22-......----- 386,326.70 17, 925. 00 605, 773. 60 .---.. ---.... 269,116.95 1,279,142.25
1922-23----. ----. 484,672. 40 19, 325.00 600, 627.10 ..---.. --.... 333,881.65 1,438,506.15
1923-24-......----- 435,347.21 20, 100. 00 648, 959. 62 500,000.00 291,925.25 1,896,332.08
1924-25....------.. 440,161.07 21, 155.00 673, 495. 96 57, 745.41 656,980.05 1,849,537.49
Average ..- 414,156.68 16, 034. 17 597, 436. 93 112,040. 90 409,673.27 1,549,341.95





44 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

An innovation has been adopted in the presentation of expenditures
of the 5 per cent fund during 1924-25 in that disbursements for per-
manent improvements out of receivership funds are shown separately.
As time goes on this record of expenditures for permanent improve-
ments paid for from the 5 per cent fund should be increasingly inter-
esting and valuable.
As stated elsewhere only part of the cost of permanent improve-
ments for the customs service was met from the 5 per cent fund
during 1924-25, the remainder consisting of appropriations by the
Haitian Government. Expenditures for all permanent improvements
from both the receivership fund and from general funds of the Haitian
Government are shown in Table No. 24, and also repairs to'the plant
and equipment of the customs service which were paid for from the
general funds of the Government are included.

TABLE NO. 24
REPAIRS AND IMPROVEMENTS TO CUSTOMS PLANT AND EQUIPMENT, FISCAL
YEAR 1924-25

Repairs and
Permanent improvements
Port improvements to plant and
Porpaid from 5 per equipment paid Total
aid from5per Total
cent fund from general
funds of the
Government

Gourdes Gourdes Gourdes
Aquin--.......---------------------------------------- 2,113.55 3,766.20 5,879.75
Belladfre .......--------- --- ...... ... .....
Cape Haitien.....------------------------------- 3,938.06 ......... 3,938.06
Cayes................--------------------- --- ............. -----. 84,731.26 84,731.26
Fort Libert~ -..-....-------- --------- ---- ....... .... ............... ......
Glore...----..............--- --------................-.. .....................- ........
Gonalves.--- --------------------------------------- --------------- 6,665.14 6,665.14
Jacmel.......---....----- -------------------------- ------------ 27,342.15 27,342.15
Jeremie..--.----------- ----------------------------------------- 1,827.50 1,827.50
MiragoAne...---------------------------- -----5, 000.00 754.65 5,754.65
Ouanaminthe --............ ----------------... .. ................ ...
Petit GoATve------------------------------------------.. 19,500.00 19,500.00
Port au Prince---.......--------------------------. 12,402.85 115,126. 93 127,529.78
Port de Pai--..--.......---------------------------. 4, 773. 25 4, 794.95 9,568.20
Saint Marc..------------------------- --- ----- 29,517.70 18,045.34 47,563.04
- Total..-------.------------------------------- 57,745.41 282,554.12 340,299.53-

SRepairs, the cost of which is charged to the 5 per cent fund, are included in the cost of customs operation
and are not charged to permanent improvements.

Table No. 25 analyzes by objects of expenditure as well as by
months the administrative expenses of the office of the Financial
Adviser-General Receiver, including the cost of civil pay clerks and
the treasury commission paid to the Banque Nationale during
1924-25. Similar data on the operation of the customs service are-
found in Table No. 26.





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 45

TABLE NO. 25

EXPENSES OF ADMINISTRATION AND OF CIVIL PAY CLERKS, BY OBJECTS. OF
EXPENDITURE AND BY MONTHS, FISCAL YEAR 1924-25

Materials Permanent
Month Salaries and rpor- MiIe-
Month Salaries station lanes improve- Total
supplies ments

Gourdes- Gourdes Gourdes Gourdes Gourdes Gourdes
October, 1924 ..--.....--- ....-- 30,680.25 747.50 a 1,084.35 1, 548. 65 ......-- .. 31,892.05
November --------.---- 30,996.65 14,060.40 1,497.33 1,174.85 ............ 47,729.23
December--............----- 31,052.94 1, 832, 50 371.95 1,277.45 .......... 34, 534.84
January, 1925... -- --------- 31,093.73 2,611.40 10,374.35 974.75 .........-- 45, 054.23
February..----------------. 31,473.62 4, 568. 60 691.75 1,286.25 .......----- 38,020.22
March..--- -....------------ 31,856.70 5,710.40 1,290. 90 1, 289. 55 ......... 40,147.55
April .............----------- 30,866.70 3,062.65 720.98 1,095.50 --- 35,745.83
May----- ---------- 31,066.65 4,019.90 3,427.85 1,525.90 --- 4 0,040.30
June--.......--...- .----. .. 31,266.65 .1,739.79 565.60 1,526.35 -----------. 35, 098.39
July--..--...--... --------... 31,225.05 4,846.05 3,971.79 1,774.00 ---....----- 41,816.89
August--............---------- 31,345.49 1,102.90- 2,363.46 2,377. 05 .......---- 37,188.90
September .----.... --...... 32,684.15 2,732.19 7,115.80 5,747.10 ---------- 34,047.64
Total, 1924-25.....----. 375,608.58 47,034.28 17,075.81 21,597.40 .....-----.. 461,316.07
Total, 1923-24..........-- 389,020.21 39,314.79 3,459,64 23,652.57 500,000.00 955,447.21

Credit.
TABLE No. 26
EXPENSES OF CUSTOMS OPERATION, BY OBJECTS OF EXPENDITURE AND BY
MONTHS, FISCAL YEAR 1924-25

Materials Transpor- Miscella Permanent
Month Salaries and improve- Total
supplies on neous ments

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
October, 1924.....--- .-------. 47,650.26 2,052.18 95.80 3,024.70------------ 52,823.94
November .....- ----------. 48,029.41 2,797.74 252.30 3,745.37 -------. 54,824.824
December--- --- 48, 010.51 3,467.60 488.64 1,945.07 ------ 53,911.82
January, 1925--...--------. 48,142.77 2,289.20 699.45 2,490.91 5,000.00 58,622.33
February--------- 48,984.30 4,497.83 290.55 2,261.95 ---------- 56,034.63
March.-------------------- 53,606.25 3,471.20 2,133.18 5, 539.93 ----------- 64,750.56
April... -------------- 48,072.20 2,539.43 5,918.38 2,466.50 -..-..---.. 58,996.51
May ---------- --------- 51,041.77 3,462.38 801.80 2,360.71-------- 57,666. 66
June.. --------------------- 48,407.93 2,383.30 237.88 2,031.46 8, 695.91 61,756.48
July ----- -------------- 48, 630.02 2,304.38 264. 95 3,253.40 39,049.45 93,502.20
August....---- -------------. 48, 007.94 2,053.50 140.42 4, 655.70 1,641.45 56,499.01
September.--..------------ 47,698.41 4,626.18 2,099.42 4,069.80 3,358. 30 61,852.41
Total, 1924-25--- .- 586,281.77 35,944.92 13,423.77 37,845.50 57,745.41 731.241.37
Total, 1923-24-----... 572,130.73 53,216.15 1,099.00 22,513.74 ......... 648,959.62


In Table No. 27 are presented for the first time statistics showing
the relative importance of the Haitian ports based on customs re-
ceipts and also showing actual operating costs of the customhouses
as well as expenditures for permanent improvements. The fore-
going data are also reduced to percentages in order to show the com-
parative cost of operations and improvements in the several ports.
A customhouse with a large volume of trade well distributed through-
out the year should have a lower operating cost than a smaller custom-
house or one in which foreign commerce is decidedly seasonal in
character. In accordance with the foregoing principles it might be
expected that Port au Prince would show the lowest operating cost,
but there are certain activities which are required at Port au Prince
and are not required elsewhere. For example, shipping is of such




46 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

an extensive character that special arrangements and supplementary
costs are necessary for its proper handling. Furthermore, the number
of parcel-post packages is far greater than in other ports, as a con-
siderable proportion of such packages is originally delivered to Port
au Prince and thereafter distributed to the other districts. Finally,
imports are much more expensive to handle than exports, and Port
au Prince is primarily an import center.
The lowest operating ratio was at Petit Goave where each gourde
of customs revenue required but 1.3 centimes of a gourde as cost of
collection. Petit Goave was closely followed by Jacmel, where the
cost was 1.6 centimes for each gourde collected. Other ports with
low operating costs were Cayes, Gonaives, and Port au Prince. At
the other extreme stood BelladBre and Glore with costs of gdes. 2.89
and gdes. 3.04, respectively, for each gourde which entered the public
treasury. From the financial point of view this would seem like
unprofitable business, but it should be recalled that total costs of each
of these ports were only some gdes. 2,000 and that the customhouses
at Belladere and Glore are for the control of traffic across the frontier
of the Dominican Republic rather than for strictly revenue purposes.
During 1924-25 the average cost to the customs service for opera-
tions and for permanent improvements was 2.04 per cent of each
gourde collected. This compared with 2.16 per cent in 1923-24 and
with 2.24 per cent for the six-year period from 1919-20 to 1924-25.
Thus the expenses of the customs service may be regarded as on a
satisfactory basis, particularly when it is recalled that an appreciable
part of the operating costs was for permanent improvements rather
than for ordinary operations.






TABLE NO. 27

DISTRIBUTION OF EXPENDITURES FROM RECEIVERSHIP FUND, FISCAL YEAR 1924-25


Cost of customs operation and permanent improvements
Ratio
Port Customs to total
receipts customs Customs Cost per Permanent Cost per Cost per
receipts operation gourde improve- gourde Total gourde
operate collected ments collected collected


Gousrdes Per cent Gourdes Gourdes Gourdes Gourde Gourdes Gourdes
Port a Prince...............----------------------... .................................. 15,986,578.64 44.72 305,140.31 0.019 12,402.85 .000 317,543.16 0.019
Cape Haitien ....----- --... --.. -------..-......... .......... 3, 982, 286. 77 11.14 85, 065.19 .021 3, 938. 06 .000 89, 003.25 .022
Cayes.... ------------------------------.......................... 3,87,849.55 10.32 60,765.24 .016 ...................... 60,765.24 .016
Jaemel-.........--- -..............-...-..........----..............-........ 3, 064, 238. 65 8.58 48,431.19 .016 ...................... 48, 431.19 .016
Petit GoAve-----------... -----.--------------...-......------. 2,532,358.86 7.09 34,106.17 .013 .................. 34,106.17 .013
Gonalves ......--------------- ................... ....................... 1,915,949.58 5.36 36,831.10 .019 ---- ----- 36,831.10 .019
Saint Mar....------------.............................................-..... 1,255.850.84 3.52 31,127.12 .025 29,517.70 .023 ..60, 644.82 .048
Port de Paix.............---------------------............................................ .. 1,223,773.34 3.43 19,687.95 .016 4,773.25 004 24,461.20 .020
Jeremie --------------------------....... ................................ 1,220,315.09 3.41 33,749.14 .028 ---.......... 33,749.14 .028
Miragoane-------..........------... --..-------......... .......... 599,504.35 1.67 7,615.28 .012 5,000.00 .009 12,615.28 .021
Aquin....... ..................------------------------------------------................................ 271,407.86 .76 3,473.83 .013 2,113.55 .0Q8 5,587.38 .021
Ouanaminthe.--.---..-.......-..........................................-... -. 8, 546. 24 .00 3, 481.29 .407 .................. 3,481 29 .407
Belladere....-------------...................................................... 692.84 .00 2,000.30 2.887 ...................... 2,000.30 2.887
Glore..---.........- ----- ----------........... ....----------------.. ------ 665.73 .00 2,021.85 3.037 ...................... 2,021.85 3.037

Total customs operation.-----..----.. -..--..............-......... 35,750,018.34 100.00 673,495.96 .0188 57,745.41 .0016 731,241.37 .0204
Administration and civil pay clerks--------------.------------------... ----................-.......... ----... ...........- ............-.......... 461,316.07 .0129

Total, administration and customs operation-..-..-................--...................-...... ....---------------------.-- 1,192, 557. 44 .0333
Bank commission---.............-- ..................- ....................... ......................................... ............................... 656,980.05 .0184

Total expenditures from 5 per cent fund--..................- -..............-- --......... -....................... .......... ...................... 1, 849, 537.49 .0517


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48 HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER

Reduced to percentages the administrative expenses of the office
of the Financial Adviser-General Receiver constituted 1.29 per cent
of customs receipts during 1924-25, compared with 3.19 per cent in
1923-24 and a six-year average of 1.83 per cent. Moreover, included
in these costs were certain expenses in connection with the internal
revenue service although no portion of the cost has been allocated
to that service.
Total actual operating costs of the office of the Financial Adviser-
General Receiver and of the customhouses were therefore 3.33 per
cent of customs receipts, and to this item should be added 1.84 per
cent which represented the treasury commission on such receipts paid
to the Banque Nationale de la R6publique d'Haiti during 1924-25.
Ordinarily, the Banque Nationale commission would be exactly 1 per
cent of receipts, but during the year in question the bank commission
for two years was liquidated so as to bring up to date this charge
against the receivership fund. Thus all charges against the 5 per
cent fund, including administrative expenses, operation of custom-
houses, permanent improvements and the commission of the Banque
National represented 5.17 per cent of collections, compared with
6.33 per cent in 1923-24 and a six-year average of 5.53 per cent.
If the treasury commission for but one year had been paid and if it
be recalled that the program of permanent improvements can be
adjusted to available income it should be evident that the costs of
the receivership are well under control and that the 5 per cent of
receipts allowed under the treaty of September 16, 1915, is quite
adequate to cover all reasonable operating expenditures, including
the commission of the Banque Nationale.
There are assembled in Table No. 28 the comparative costs of
operating the customhouses, from 1919-20 to 1924-25, and in this
table are also shown the costs of administration and the amount of
treasury commission paid to the Banque Nationale. In Table No.
29 the expenditures from the 5 per cent fund are reduced to percent-
ages, and comparative data are presented for the period from 1919-20
to 1924-25, inclusive. From that table it appears that 1924-25 com-
pared very favorably with the averages of previous years, in spite of
the fact that additional burdens on the 5 per cent fund were assumed
during the period in question.
Details of operating charges against the receivership fund, by
months, are assembled in Table No. 30. Actual costs, distributed
according to administrative expenses, bank commission, permanent
improvements, and operating costs of the customhouses are presented
both in actual disbursements and as percentages of receipts for each
month of the year and for the year as a whole.





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 49


TABLE NO. 28

COSTS OF CUSTOMS OPERATION, BY PORTS, AND COSTS OF ADMINISTRATION AND
TREASURY COMMISSION, FISCAL YEARS 1919-20 TO 1924-25


1919-20 1920-21 1921-42 1922-23 1923-24 1924-25 Average


Gourdes Gourdes' Gourdes Gourdes Gourdes Gourdes Gourdes
Aquin ........-- 1,800.00 3, 009.0 3,784.35 7,602.75 4, 525.65 5,587.38 4,384.86
Belladre---..--. 2,490. 00 .........-- ....--. ---. .-- --- 2,004.80 2,000.30 1, 082. 52
Cape Haitien.... 73,490.95 73,495.20 71, 184. 30 74,898.15 72, 886.22 89,003. 25 75,826.34
Cayes .....-- .... 41,619. 3 47, 702.70 51,711.45 56, 478. 30 57,152.35 60,765. 24 52,571.57
Fort Libert ...... 5,433.70 4,863. 1 3,490.00 3,833.00 4,064.85 .......-..-- 3,614.12
Glore------------- 2,460.00 ------------------------------------ 1,840.60 2,021.85 1,053.74
Gonaves ---------.. .... 31,430.90 32, 159.85 41,800.20 40, 678.75 41, 467.46 36,831.10 37,394.71
Jaemel..-----. ..-- 47, 370.85 52, 710. 0 46;634. 50 45,211.25 50,093.32 48,431.19 48, 408.60
Jeremie ......---- 35, 721. 45 33,104.80 25,749.90 22,581.35 30, 041.60 33, 749.14 30,158.04
Miragone........ 5, 349.90 5,093.95 5,489. 05 7,482.35 7, 077. 55 12,615.28 7, 184. 68
Ouanaminthe-.... 5,437.95 5,102.60 3,443. 3,310. 00 3,607.83 3,481. 29 4, 063. 82
Petit Gove...... 27,035.50 29, 249. 1 24,730.40 24,518. 55 26,714.07 34,106.17 27,725.63
Port au Prince-.. 308,180.70 227,612.05 289,393.60 269,059.15 301,046.66 317,543.16 285,472.55
Port de Paix--.. 16, 11 55 17,493.80 16, 554.00 19,240.45 18, 334. 40 24,461.20 18,700.40
Saint Marc-... 19,130.95 15, 597.8 21, 808. 60 25,733. 05 28,102.26 60, 644.82 28, 502.92

Total customs
operation-. 623,070.75 547,194.55 605,773.60 600,627.10 648,959.62 731,241.37 626,144.50
Administration
and civil pay
clerks.........-- 329,634. 00 426,498.70 404,251.70 503,997.40 955,447.21 461,316.07 513,524. 18

Total adminis-
tration and
operation---.. 952, 704. 75 973, 693. 25 1, 010, 025. 30 1,104,624. 50 1, 604, 406. 83 192, 557. 44 1,139,668. 68
Bank commission. 427,755.85 478,379.85 269,116.95 333, 881.65 291,925.25 656,980.05 409,673.26

Total expendi-
tures from 5
per cent fund. 1,380, 460. 601,452, 073. 10 1, 279,142. 25 1,438, 506. 15 1,896, 332. 08 1,849,537.49 1, 549,341.94


TABLE NO. 29

TOTAL COST OF COLLECTING EACH GOURDE OF CUSTOMS RECEIPTS, FISCAL
YEARS 1919-20 TO 1924-25


1919-20 1920-21 1921-22 1922-23 1923-24 1924-25 Average


Aquin..-..-- ---- -.....- .
Belladtre-- ..------
Cape Haitien ...............
Cayes----....-.-.-------------
Fort Libert6 .............
Glore......------------------
GonaIves ......................
Jacmel ---------------------
Jeremie ..--..------------
Miragolne.-...................-
Ouanaminthe .................-
Petit Goave.............. --
Port au Prince ....--..........
Port de Paix ------------------.......
Saint Marc ......-..........---
Total customs operation.......
Administration and civil pay
clerks------ ------
Total administration and oper-
ation.........................
Bank commission.............
Total expenditures from 5 per
cent fund.................


Gourdes
0.0081
0177
.0123
.0413
.0194
.0193
.0332
.0176
3.8796
.0154
.0203
.0126
.0136

.0194
.0127
.0297
.0133
.0430


Gourdes
0.0270
.0281
.0270
.2660
.0372
.0366
.0654
.0165
2.1478
.0359
.0272
.0240
.0320

.0304

.0236
.0540
.0265

.0805


Gourdes
0.0457
.0236
.0276
1.0950
.0278
.0221
.0454
.0151
1.0053
.0194
.0268
.0189
.0229

.0259

.0173
.0432
.0115

.0547


Gourdes
0.0286
.0229
.0188
.0553
.0236
.0156
.0296
.0110
.7397
.0106
.0221
.0178
.0258
.0205

.0173
.0378
.0114
.0492


Gourdes
0. 0145
2.8162
.0253
.0147
4.5209
2. 0471
.0235
.0187
.0297
.0122
.6007
.0135
.0241
.0148
.0239

.0216
.0319

.0535
.0098
.0633


Gourdes
0.0128
2. 8871
.0213
S.0165
3. 0370
.0192
.0158
.0276
.0127
.4073
.0134
.0190
.0161
.0248

.0204

.0129
.0333
.0184

.0517


Gourdes
0.0208
3.6425
.0228
.0188
.0975
2.0917
.0239
.0198
.0352
.0153
.9296
.0156
.0229
.0173
.0274
.0224

.0183

.0407
.0146
.0553









TABLE NO. 30

TOTAL DISBURSEMENTS FROM RECEIVERSHIP FUND, BY MONTHS, FISCAL YEAR 1924-25


1924 1925
Total
October November December January February March April May June July August September

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Administration........ 31,892.05 47,729.23 34,534.84 45,054.23 38,020.22 40,147.55 35,745.83 40,040.30 35,098.39 41,816.89 37,188.90 34,047.64 461,316.07
Bank commission .-.. 299,479.87 -------- -----357,500.------------ ------- ------------ ------------------------------------------------------357,00.18 656,980. 05
Bank commimron.o-.. 299,"479.87 ............................................... ........................ ................ ....... 500.18 656 980.05
Permanent improve-
ments.......-----------------------------............ 5,000.00 ---- ----------- -- 8,695.91 39,049.45 1,641.45 3,358.60 57,745.41
Aquin....-----------. 486.68 374.00 350.60 201.90 193.15 28 5.0 268.00 174.00 354.00 264. 50 265. 50 256.00 3,473.83
Belladire----......... 165.00 165.00 165. 00 165.00 165.00 165.00 176. 50 165.00 165.00 172.50 166. 30 165.00 2,000.30
Capellaitlen.......... 5,647.65 6,129.55 6,005.65 5,872.35 5,876.60 13,585.02 11,533.16 6,553.55 5,639.41 6,371.00 5,781.71 6,069.54 85,065.19
Cayes.--..--.......... 5,576.35 4,515.00 4,958.09 4,874.85 4,993.20 3,424.65 3,951.07 8,168.36 4,867.31 4,599.35 5,611.40 5,226.61 60,765.24
Glore..---............--- 300.50 161.95 166.05 150.00 147.75 154.00 150. 00 181.30 156.55 150. 00 153.75 150.00 021.85
Oonalves.............. 3,424.21 5,048.73 2,827.22 2,641.52 3,037.92 2,773.85 2,923.12 2,930.27 2,801.41 2,848.00 2,807.25 2,767. 60 36,831. 10
Jacmel.----------..... 3,893.23 3,841.28 4,022.14 4,280.28 3,685.33 4,614.28 3,852.50 3,974.30 3,644.60 3,956.85 3,898.07 4,768.33 48,431.19
J mie..-------------.............. 2,512.55 2,733.75 2,649.58 2,784.33 3,112.18 2,934.51 2,844.23 2,720.09 2,637.83 2,832.50 3,197.80 2,789.79 33,749.14
Miragotne............ 539. 10 689.15 634. 03 646. 65 561. 00 563.00 543.65 1,054.00 569. 40 596. 15 539. 85 679. 30 7,615. 28
Ouanaminthe........ 280.00 324. 10 344. 60 280.00 286.00 341. 47 340.25 333. 10 280.00 304. 70 174. 32 192. 75 3,481. 29
Petit Goaye........... 2,064.52 2,226.34 3,556.69 2,427.98 2,850.18 2,389.54 2,560.18 2,780.38 2,361.68 2,688.30 3,491.11 4,709.27 34,106.17
Port au Prince.-.... 24,413.05 24,741.17 24,599.42 25,188.72 25,622.08 28,035.33 24,606.16 25,008.43 25,723.13 25,776.12 24,914.67 26,512.03 305,140.31
Port d Pai.......... 1, 330.00 1,773.80 1,472.20 1,467.90 2,468. 70 1, 798 15 1, 609. 60 1, 455.00 1,652. 30 1, 592. 75 1, 477.00 1,590.55 19, 687.95
Saint Marc............ 2,192.10 2,101.00 2,160.55 2,640.85 3,035.54 3, 686.26 3,638.09 2,168.88 2,207.95 2,300.03 2,378.83 2,617.04 31,127.12
Total............ 384,195. 86 102, 554.05 88,446.66 103,676. 56 94,054.85 104,898.11 94,742.34 97,706.96 96,854.87 135,319.09 93,687.91 453,400.23 1,849,537.49
Cost per. gourde of
customs receipts:
Administration .... 0.0093 0.0135 0.0079 0.0108 0.0110 0.0123 0.0136 0.0186 0.0185 0.0210 0.0179 0.0120 0.0129
Bank commission... .0880 ---. .-----.---. ..-.. ----. ....-- .............. ------............--...-----.... ----- -------------- -. ..- ... 1265 .0184
Permanent improve-
ments.-----.-----------------------.......--------------------............... .0012 ----------------------------- ----------------. 0046 .0195 .0007 .0013 .0015
Customs operation- .0156 .0155 .0123 .0130 .0163 .0198 .0223 .0268 .0281 .0273 .0264 .0207 .0189
Total-----------........... .1129 .0290 .0202 .0250 .0273 .0321 .0359 .0454 .0512 .0678 .0450 .1605 .0517


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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 51

INTERNAL REVENUE SERVICE
During 1924-25 the-internal revenue service completed its first
full year of operation. As stated in the previous report, the bureau
of internal revenue is operated under the supervision of the General
Receiver by virtue of the stipulations in the several loan contracts
to the effect that all revenues, both customs and internal, are pledged
as security to the authorized loan of 200,000,000 gourdes, and that
such revenues, both customs and internal, shall be administered under
the direction of a person nominated by the President of the United
States and appointed by the. President of Haiti.
The bureau of internal revenue was in operation for only the two
final months of the fiscal year 1923-24, and during that period it
was principally engaged in creating the necessary organization and
in obtaining the necessary personnel and equipment for administering
the internal revenues of the Republic. During the year 1924-25,
however, the service proved itself to be a going concern, as receipts
from internal taxes were by far the greatest in the history of Haiti.
Perhaps the most baffling problem of the internal revenue service
is to obtain competent personnel for such salaries as are warranted
by reason of the small receipts in a considerable number of the reve-
nue districts. Obviously, the solution of this problem is a drastic
increase of internal revenues so that operating costs will not absorb
an unduly large proportion of collections.
Unfortunately, however, direct taxation is but slightly developed
in most Latin American countries, and Haiti is no exception to the
rule. As a result, the revenue structure of Haiti is badly balanced,
since 88.30 per cent of the total income of the state in 1924-25 was
obtained from customs duties. This unsatisfactory situation should
promptly be replaced by a more even balance between customs and
internal revenue receipts, or fluctuations in foreign commerce will
continue to be too dangerously reflected in the revenues of the state.
In fact the time should be foreseen when internal revenue receipts
should equal or perhaps exceed those from customs.
Another important class of difficulties which faced the internal
revenue service was the establishment of rules of interpreting the
vague and at times inconsistent legislation establishing such internal
taxes as at present exist. During the course of the year many prece-
dents were established, and the public has gradually become informed
as to the methods of application of the internal revenue laws. More-
over, the public has also come to realize that the internal revenue
legislation is on the statute books for the purpose of being enforced
and not evaded, and that taxes are due at the time stipulated in the
law and not at some later time convenient to the taxpayer. In a
word, the foundation has been laid for an internal revenue service
which is capable of broad expansion and which could handle effi-
ciently far greater responsibilities than are now entrusted to it.
During 1924-25, the collectors of customs at the several principal
ports, with the exception of Port au Prince, also continued to act as





52 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

collectors of internal revenue, while at the capital the administra-
tive office of the internal revenue service directly handled collections
for the Port au Prince district.
TABLE NO. 31
OPERATING ALLOWANCE OF INTERNAL REVENUE SERVICE
15 per cent
allowance Expenses
Gourdes Gourdes
August and September, 1924..--......----- .....--- ....--.................. 110,195.90 75,254.27
1924-25---.................---- ---- --.-----------.-----------....... ----613, 488. 92 350,274.56
723, 684. 82 425,528. 83
425, 528. 83
Surplus-------...--............--- ----...... .... ---............-- ..... 298,155.99

Table No. 31 shows the operating allowance of the internal revenue
service since the date of its organization as well as the distribution of
expenditures out of that allowance. It should be recalled that the
law contemplates as costs of collection possible expenditures of 15
per cent of receipts, including the 1 per cent treasury commission to
the bank. During the two closing months of 1923-24, the operating
allowance amounted to gdes. 110,195.90, and total expenses to gdes.
75,254.27. In 1924-25, the operating allowance was gdes. 613,488.92,
while expenditures amounted to but gdes. 350,274.56. Thus costs
were carefully controlled, and as large a proportion as possible of the
sums taken from taxpayers was returned as net revenue to the public
treasury. In this connection, moreover, it is pertinent to state that
unexpended balances of the 15 per cent allowance of the internal
revenue service revert to the public treasury at the end of each fiscal
year, and are not carried forward as a trust fund as is the case with
the 5 per cent allowance of the General Receiver. For the total life
of the internal revenue service, therefore, expenditures have aggre-
gated gdes. 425,528.83, and gdes. 247,506.36 have been returned to
the treasury as expendable funds of the state. The balance of the
total allowance of gdes. 723,684.82 was placed in a reserve to meet
obligations of the internal revenue service which had not been pre-
sented for payment before the close of the fiscal year 1924-25.
Operating expenses of the internal revenue service by objects of
expenditure are summarized in Table No. 32. Other operating data
of the bureau of internal revenue appear in the report of the Director
General of Internal Revenue which is annexed to the present report,1
and to which attention is particularly invited. It is well worthy of
note, however, that for 1924-25 the cost of the internal revenue
service for each gourde of revenue collected was but 8.56 per cent,
whereas costs of 15 per cent are contemplated in the law. It is prob-
able that as the scope of the internal revenue service is broadened
costs of collection will not increase as rapidly as receipts and that the
creditable operating ratio of the past fiscal year will even be surpassed.
1 See post, p. 101.






TABLE NO. 32

COSTS OF INTERNAL REVENUE SERVICE, BY OBJECTS OF EXPENDITURE, FISCAL YEARS 1923-24 TO 1924-25

Administration and operation Cost per gourde collected
Administra-

Salaries Materials Transporta- Miscella- ank co- Total ini com- Total
and supplies tion neous mission operation mission


Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
August and September, 1924--...---............. 36,518.54 31,285.55 1,463.74 5,986.44 ............. 75, 254.27 0.1024 -----0. 1024 0
1924-25 ----------------......................... 208,655.92 26,196.65 12,414.39 54,761.94 48,245.66 350,274.56 .0739 0.0117 .0856
Total-------........- -----------------........... .......... 245,174.46 57,482.20 13,878.13 60,748.38 48,245. 60 425,528.83 .0782 .0100 '.0882





54 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

CUSTOMS RECEIPTS

Undoubtedly the most outstanding feature of the financial year
1924-25 was the almost unprecedentedly large income of the Govern-
ment, which totaled gdes. 40,487,667. As indicated in Table
No. 33 such receipts have been exceeded only once in the history of
the Republic, the exceptional year of 1890-91, when revenues were
approximately gdes. 400,000 greater. In no other year, however, from
1889-90 to date, with the exception of 1890-91, have revenues reached
even gdes. 35,000,000, and in several years the total did not reach
one half of that amount. Total revenue receipts for 1924-25 of
gdes. 40,487,667 compared with gdes. 32,902,321.33 in 1923-24, an
increase of gdes. 7,585,345.66, or 23.55 per cent. Nothing but
encouragement could be derived from such a showing, were it not
for the fact, as explained in earlier pages, that the source of practically
the entire increase was the abnormally high price of an approximately
normal coffee crop.
TABLE NO. 33

REVENUES OF HAITI, BY SOURCES, FISCAL YEARS 1889-90 TO 1924-251

Customs receipts
Year Internal iscel- Total
Imports Exports Miscella- Total revenues receipts receipts
neous

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
1889-90--..-.. ---..........---------------------------------..............---....................--------------------..........-- 31,533,254. 85
1890-91 -.....--....--------....... ... ----------...... ..........-.. 40,868,026.30
1891-92.--.--......----------------.. ........................... .. 34,799,016.95
1892-93.. ............. -------..------- --------------...... ------ ...... 34,880,361.45
1893-94-----............-...---.. -.....--------------.... ............ -----------.............. --..------........ -------- .......... 33,853,640.75
1894-95...----. ....--------------------------------..... ---- --...-------... 34,917,258.60
1895-96-----.------------------------------. ................................. 28,047,666.65
1896-97 -.. -..--- -------------- ---------............................... ...... 30,665,202.15
1897-98-..... .------. ---------------- --------- --- .............. ............. ... 23,753,709.25
1898-99........---------------------------------------- --..............-----------.......--............ 19,467,977.35
1899-1900..---......- ---- ----------------------...... ...---..---...... ---- 24,416,719.00
1900-1..--...--...---------------------- ----- --. ---- --------.....--- ..-----.-.. 21,986,480.60
1901-2- -------- -------- ------------ ------- .... -------... ---------- 18,834,716.35
1902-3..---....----- -------- -------------- ------------------------.... .... ---- -.. 17,517,062. 85
1903 ------- ---------- ............ -------- .............. .......-------------- ------------- ---------- 20,087,928.90
1904-5 ----- ---------- ------------ ------. ------ ..............----.....- 13, 741,365.95
1905-6.--- -------------- --------- -- ---..-...-----.... ...........------ 16, 695, 679. 00
190-7 ......... ----------------------- -- ---....------- -------------................. --......------ 11,077,500.00
1907-8 --... .----------- ------------------------------------ -------------------... 10,524,189.40
1908-9....--. ------------- ----------... ............ ------- -- ....- .......... 15,044,393.45
1909-10 ...........-------- ------------ --.......... .............. ..... .......... 23,014,530.50
1910-11 .....---- --------- -------------- --------."." --- --------- ------------- ----...... 20, 520, 595.90
1911-12-... 13,652,334.70 19, 814, 906.75 -------- 33,465,243.45 912,014.55 34, 377, 2058. 00
1912-13-... 15,176,348.80 10,280,211.40 .-.....---.. 25,456,560. 20 670,522.20 ...... 26,127,082.40
1913-14-... 10,637,856.40 13,413,711.10 .... ...-24, 051, 567.50 70709.70 ------ 24,758,277.20
1914-15-.... 8,668,408.45 6,441,318.45 262,538.80 15,372,265.70 353,533.40 -------15,725,799. 10
1915-16--... 12,970,092.55 9,201,376.30 ---- 22,171,468.85 543,610.05 ..--- 22,715,078.90
1916-17... 9, 736,057.28 8,473,752.35 5,897.52 18,215,707.15 717, 005. 60 1,971.95 18, 934, 684.70
1917-18.... 7,784,253.80 7,331,366.55 13,665.10 15,129,285.45 911 203.40 7,901.90 16, 048, 390. 75
1918-19..... 12,264,105.80 16,503,370.20 13,611.90 28,781,087.90 1, 159974. 0 14,871. 55 29,955,933.45
1919-20...- 18,898,013.74 13, 143,137.45 31,877.91 32,073,029.10 1,886, 174.99 38,246.70 33,997,450.79
1920-21-. 9,816,687.88 8,184,194.70 29,982.42 18,030,865.00 1,897,171.70 18,059.00 19,946,095.70
1921-22-.... 13,247,038.18 10,077,988,15 41,543.37 23,366,569.70 1, 580, 246. 77 17,979.25 24,964,795. 72
1922-23 ..- 16,815,500.17 12,312,916.60 64,169.58 29,192,586.35 2,69443.24 58,071.65 31,950,101.24
1923-24-. 19,415,707.84 9,984,701.92 550,497.38 29,950,907.14 2,795,870. 53 155,543.66 32,902,321.33
1924-25-.. 23, 452, 328. 71 10,617,525. 631,680,164.00 35, 750,018.34 4, 089, 926.19 647, 722. 440, 487,667. 00

I Fluctuations in the gold value of the gourde prior to its stabilization May 2, 1919, have been calculated
and are reflected in statistics of revenue before 1919-20.




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 55

For purposes of record, all moneys reaching the treasury, both as
revenue and nonrevenue receipts, are shown in Table No. 34 by
ports and by months for the fiscal year 1924-25. Such receipts are
classified in accordance with their derivation from customs sources,
from internal revenue taxes, from miscellaneous sources of revenue
receipts and from nonrevenue sources.
Customs receipts during 1924-25 were gdes. 35,750,018.34, as
contrasted with gdes. 29,950,907.14 in 1923-24. Thus the expansion
was gdes. 5,799,101.20, or 19.36 per cent. Analyzing customs re-
ceipts, it is found that imports returned gdes. 23,452,328.71, as com-
pared with gdes. 19,415,707.84 in 1923-24, an increase of gdes.
4,036,620.87, or 20.79 per cent. Exports furnished gdes. 10,617,525.63,
as contrasted with gdes. 9,984,701.92, an increase of gdes. 632,-
823.71, or 6.34 per cent. Miscellaneous customs receipts amounted
to gdes. 1,680,164, an expansion of gdes. 1,129,666.62, or 205.21
per cent, as compared with gdes. 550,497.38 received in 1923-24.
Thus the tendency observable in previous years for receipts from im-
ports to constitute the major reliance of the State for its income was
continued in the past fiscal year. In fact the trend would have been
even more marked had a considerable portion of customs revenues now
classified as miscellaneous customs receipts been credited to imports
as was formerly the case.
When comparison is made between receipts from imports and the
total value of imports, it is found that in 1924-25 duties averaged
23.18 per cent in comparison with 26.39 per cent in the previous year.
In contrast, export duties in 1922-23 averaged 16.88 per cent of the
value of exports, 13.96 per cent in 1923-24, and 10.94 per cent in the
past fiscal year. It is apparent, therefore, that in spite of the fact
that export duties have not been abolished nor the rates reduced, the
relative burden has become considerably lighter. This is due to two
principal causes, first, the increasing importance of certain exports,
such as cotton and sugar, upon which export duties are not imposed
and, second, the increased price of coffee which is the principal source
of export duties, so that the fixed rate of 15 centimes per pound has
constituted a smaller proportion of the value of each pound of coffee
exported from Haiti. Obviously, if the price of coffee should decline
the export duties on this commodity would become relatively heavier,
and the producers of coffee would be hampered by the twofold dis-
advantage of lower prices and of a greater relative proportion of such
prices which would be taken by the Government in export duties.









TABLE NO. 34

TOTAL RECEIPTS OF HAITIAN GOVERNMENT, BY SOURCES, MONTHS, AND PORTS, FISCAL YEAR 1924-25


1924


October November December January February March April


Customs
receipts
Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Aquin-......... 8,814.08 22,557.87 56,313.17 51,929.33 28,145.98 34,101.96 13,999.56
BelladIre....... 42.05 63.79 70.85 48.35 50.35 58.41 53.42
Cape Haitien... 534,449.62 507,385.69 434,500.36 370,875.35 365,759.31 368,010.81 243,261.36
Cayes---........ 329,083.67 331,630.42 624,760.46 436,999.61 319,376.77 309,097.78 349,830.84
Glore........... 13.28 37.90 4.53 7.53 18.59 149.42 114.62
Gonalves....... 211,171.05 233,294.13 301, 210.11 227,578.71 269,523.07 171,351.62 114,767.87
Jacmel.--....... 280,655.98 390,820.42 435,490.72 524,945.91 364,817.26 250,960.20 172,544.48
Jeremie......... 125,411.9j 131,788.86 153,329.25 153,860.77 116,201.29 93,863.61 83,837.04
MiragoAne..... 33,547.19 42,480.42 117,889.47 98,234.30 68,485.49 31,721.86 16,103.67
Ouanaminthe... 206.12 210.90 362.99 738.98 1,164.41 201.94............
Petit Gove.... 174,148. 59 222,390.80 344, 657.36 321,31& 66 334,633.09 227,041. 04 234,771.82
Port au Prince.. 1,479,991.63 1, 374,624.48 1,734,036.831,664,729.051,308,404.67 1,561,429.12 1,210,873.61
Port de Pai.... 139,356.60 146,146.47 154,222.41 138,931.11 149,508.32 83,426.54 61,384.06
Saint Marc..... 85,150.17 122,744.59 120,828.59 168, 590.92 119,776.81 151,308.58 130,939.70
Total..... 3, 402,041.96 3, 32,376.74 4,377,676. 904,158, 786.583,445,665.41 3,252,219.08 2,632,532.07
Internal rev-
enue receipts
(Administration
Generate)
Port au Prince.. 358,460.63 235,156.63 383,794.06 253,796.27 224,153.01 259.726.28 226,570.59
Aquin-..--..... 1,594.37 1,945.54 751.64 1,508. 79 1,436.20 1,522.59 2,345.22
Cape Haitien.. 43,006.41 14,815.00 14,677.37 17,882.21 19,761.59 20,557.50 33,310.36
Cayes.......... 45,996.41 9,929.18 5,197.76 14,891.39 9,279.25 8,063.91 33,158.48
Gonalves....... 18,077.54 4,728.71 6,159.94 11,759.75 9,055.23 9,487.55 17,953.81
Jacmel-..--..... 19,543.98 6,242.95 9,369.07 11,084.54 9,217.60 13,888.01 26,707.46
Jeremie--..-.... 18,001.28 4,132.86 4,495.30 6,754.35 5, 334.68 3,605.56 9, 907.98
MiragoAne-..... 3,937.63 1,616.93 2, 524.82 2, 525.96 1,778.41 1,924.20 4,760.04
Petit Goave.... 21,898.72 6,623.61 2,593.41 7,228.64 5, 892.05 5,435.33 19,962.94
Port de Paix ... 13,279.03 2,033.09 4,056.58 7,839.00 3,469.11 5,180.38 8,846.74
Saint Marc.... 19,005.67 3,786.6 4,314.77 4,940.13 7,019.66 8,943.41 17,170.34
Total..... 562,881.67 311,019.27 437,934.72 340,213.03 296, 396.69 348,132.72 400, 701.96


1925
s- Total
May June July August September
_____________ I.T _________________________, ~ T o t


Gourdes
27,925.18
53.40
200, 645.63
206,188.78
88.74
71,747.63
132, 597.10
75,757.23
56, 666.42
723.24
199,587.43
1,040,020. 50
50,159.18
87,329.17


Gourdes
5,373.52
76.51
185,760. 10
193,426.80
33.33
83,139.23
148,008.68
36,757. 22
31,113.96
740.12
124,504. 51
942,400.42
68,394.50
71,627.00


Gourdes Gourdes
9,363.79 6,394.41
42.36 86.15
181,294.98 178,205.47
212,638.39 234,858.14
126.85 36.58
66,949.67 68,409.10
102,593.34 127,773.79
67,858.22 71,785.42
46,359.36 32,495.60
1,126.21 74.47
112,830.64 86,822.82
1, 077,171. 58 1,190,832. 50
57,298.62 40,216.88
58,028.75 41,279. 50


Gourdes
499.01
47.20
412,140. 07
239,957.89
34.36
97,007.39
153,030.77
109,864.25
24,426.61
3,400.74
149,652. I1
1,401, 864.18
134,728.65
98,297.26


Gourdes
271,487.86
692.84
3,982,286.77
3,687,849. 55
665.73
1,916,949.58
3,064,238.65
1,220,315.09
599, 504.35
8,546.24
2,532,358.86
15,986, 578. 60
1,223,773.34
1,255,850.84


2,149,489. 63 1,891, 355.90 1,993,652.76 2,079,270. 83 2, 824,950.48 35,750,018.34





171, 594.21 237,708.79 203,653.15 170,029.44 212,509.92 2,967,164.98
1,267.05 2,096.86 1,080.72 1,157.08 1,863. 27 18,370.13
11,462.90 11,241.33 11,576.27 10,789.99 16,345.90 225,434.83
27, 847.75 23,447.77 34,171.02 19,515.61 18,496.75 249,995.28
10,173.47 9,755.87 8,492.76 8,020.18 8, 006.67 21,671.48
10,002.48 8,201.16 7,834.03 7,021.28 10,523.21 139,635.77
5,268.98 4,134.09 5,619.72 4,190. 76 5,695.22 75,138. 68
2,416.22 1,994.85 1,669.70 1,673.84 1,563.91 28,384.63
5,601.63 3,990.09 4,329.96 1,022.52 5,841.67 90,420.57
4,757.41 4,815.91 9,694.63 3,426.75 4,925.40 72,324.03
8,454.70 8,425.01 8,173.10 5,459.39 5,612.98 i01,385.81
258,846.80 315,811.73 294,295.06 232,307.64 291,384.90 4,089,926.19






Miscellaneous
receipts
Port auPrince..
STotal fiscal
receipts..... .
SNonfiscal re-
ceipts, Port
Sau Prince....--
Grand to-
tal......
CT


46,200.18 8,980.29 9,194.24 10,369.40


i20, 492.46


30,897.50 33,28. 25


81,989.85 26,820. 15 i20,377.95 i03,685.43 54,786.77


647,722.47


4, 011,123.81 3, 852,376.30 4, 824,805.86 4, 09,369. 01 3862, 54.56 3, 641,249.30 3,067,162.28 2,490, 326. 28 2,233,987.78 2,408, 325.77 2 41 263.903, 171 122. 40,487,667.

4, 189.01 161.10 166.84 13,972.93 156.31 25,926.41 901.08 19. 19 332.67 36,440.73 60,292.69 ...- ...-- 69,855.47


1,015,312.82 3,852,637.404,824, 972.70 523,341.94 3,862,710.87


, 667,175.713,06, 063.33 2,490, 523.47 2,234,320.45 2, 37, 085. 04 2, 475, 556. 59 3,171, 122. V


*Debit.


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22
22


tO, 557, 522. 47


Debit.


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10,557,522.47 0




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58 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

Considered as a whole revenues obtained from customs sources
may be considered as relatively high in Haiti. Many other countries
assess as customs duties a smaller proportion of the value of imported
commodities and in addition have no taxes whatever upon exports.
However, conclusions based upon such facts are likely to be erroneous,
and the revenue system of a country as a whole rather than receipts
from customs alone must be considered in order to estimate its fiscal
burdens. In Haiti, for example, while receipts through the custom-
houses are relatively high in comparison with the value of foreign
commerce, other receipts of the Government are of such minor im-
portance that total taxes per capital are exceedingly light. For ex-
ample, total income of the central government in 1924-25 was approx-
imately gdes. 20 per capital, and receipts of the minor political divi-
sions amounted to less than 1 gourde per capital.
Approximate contributions for the support of the central govern-
ment of other selected countries'are of such magnitude as to demoi-
strate that Haitian per capital taxes are probably the lowest in the
Western Hemisphere. Per capital taxes paid to the central govern-
ments of certain countries at the latest available dates were:
Gourdes Gourdes
Colombia ------------------ 21.00 France_---------- -------- 130.00
Costa Rica ---------------- 115. 00 Haiti --------- ..----------. 20. 00
Cuba ---------------------- 130.00 Jamaica -------------------- 60.00
Dominican Republic--------- 67. 00 United States--------------- 175. 00
Per capital contributions to a given government are, however,
without special significance unless correlated with the wealth and
income of the- taxpayers. It need hardly be said that no statistics
of wealth and income have ever been compiled for Haiti, and the
following speculations in regard to the wealth and income of Haiti
do not even merit the dignity of being designated as estimates.
They are merely guesses. Nevertheless, they may be useful for the
purpose of stimulating guesses from other persons in order that in
time something which might be classified as an estimate may emerge.
The suggestion is ventured that the total wealth of Haiti may
approximate gdes. 600,000,000, and that the income of the popula-
tion may be in the neighborhood of gdes. 200,000,000. The estimate
of income includes not only the money income of the population,
which is certainly much inferior to the foregoing figure, but also
includes the monetary value of such products as are produced and
consumed directly by the producers. If the approximations of wealth
and income which have just been suggested are anywhere near reality,
it follows that the per capital wealth of Haiti is only gdes. 300 and the
per capital income only gdes. 100 per annum. This compares with
per capital wealth in the United States of some gdes. 15,000 and per
capital annual income of gdes. 2,750. The difficulties of conducting
a modern and progressive government in Haiti where revenues have





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 59

to be derived from such pathetically meager wealth and income should
be evident. In fact, many legitimate objects of expenditure will have
to be foregone until both wealth and income of the population are far
in excess of present levels. Nevertheless, the very absence of gener-
ous expenditures for schools, public health, public works, and agri-
cultural development results in retarding the growth of capital and
income. Thus an unfortunate chain of cause and effect binds the
Republic which will require united and sustained effort to destroy.
If the productive resources of Haiti, which compare favorably with
those of neighboring states, were properly developed there is no
reason why the accompanying increase in wealth and income with the
resulting ability to pay taxes might not eventuate in income for the
state comparable to that obtained in neighboring countries, thereby
permitting such productive expenditures as would further augment
wealth and income. /Little effort, however, is made to utilize exist-
ing resources, Haitian capital and enterprise being apparently apa-
thetic and foreign capital and enterprise being as yet deficient.
Unfortunately it has not been possible to obtain reliable statistics
in regard to the wealth and income of most countries. Certainly
the suggestions just made as to the wealth and income of Haiti are
unreliable in the extreme. Nevertheless, accepting them for what
they are worth, it would follow that the sums collected by the cen-
tral government for public purposes amount to about 6.6 per cent
of wealth and 20 per cent of income. Both of these ratios are high,
particularly when it is remembered that the margin of the Haitian
population above the necessities of existence is discouragingly small.
In the absence, therefore, of the development of additional sources
of wealth and income no attempt should be made to increase the
revenues of the Government, except the institution of such fiscal
charges as will stimulate production, in spite of the fact that finan-
cial resources for supplying the real needs of the state are wofully
inadequate.
Under the revised tariff, which it is expected will be put into effect
during the present fiscal year, receipts from imports should be approx-
imately similar to those of the past, provided the volume of the
import trade is as large. In other words, the attempt was made to con-
,struct tariff schedules which would take for governmental purposes
approximately the same proportion of the value of imports as does
the present tariff. Furthermore, as time goes on existing tariff rates,
both on imports and exports, should not be increased and possibly
they should be reduced, provided that equally productive internal
revenues are created. Under such circumstances, the increased
financial requirements of the Government would be met by a normal
growth in the wealth and income of the people as represented both
in foreign commerce and in .domestic production and consumption.





60 IAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER

During 1924-25 the same periodicity as observed in previous years
continued to characterize the distribution of customs receipts through-
out the year. This inequality in monthly receipts from one period
of the fiscal year to another is somewhat embarrassing, as the months
of greatest income are during the earlier months. There is therefore
constantly the tendency toward undue optimism, with pressure for
extensive expenditures. If, however, the financial program of the
fiscal year were permitted to be adjusted to the ordinary revenues
of the.first four months of such year the results would be disastrous.
In Table No. 35 are presented customs receipts by months for
the receivership period. It appears that in 1924-25 December showed
the greatest customs revenues, closely followed by January. This
was also in accordance with the average for the receivership period,
since during all of this time December was the most important
month from the point of view of customs receipts, with January in
second place. However, during 1924-25 the low point of customs
revenues was reached during June, whereas, normally, minimum
customs revenues are obtained during July.
Customs receipts by ports for the period of the American inter-
vention are tabulated in Table No. 36, from which it appears that
Port au Prince furnished some 44.74 per cent of total custom rev-
enues, with Cape Haitien in second place with 11.14 per cent. Dur-
ing the year just closed Cape Haitien reestablished its position as
the second port of the Republic, a position which had been assumed
by Cayes in the previous year. In fact revenues collected at Cayes
were actually less in 1924-25 than in 1923-24, while the increase
at Cape Hatien was more than gdes. 1,100,000. Other significant
increases occurred at Gonaives, Jacmel, J6remie, and Petit Goave.
It is also of considerable interest to indicate the relative im-
portance of the several ports from the point of view of governmental
income from imports, exports, and miscellaneous customs sources.
This is done in Table No. 37 for the year 1924-25. Thus it appears
that Port au Prince was primarily an import point while Petit
Goave was of most relative importance from the point of view of
receipts from exports. Other important ports in which revenue
from exports was comparatively large in relation to that from im-
ports were Aquin, Cape Haitien, Gonaives, Jacmel, J6r6mie, Mira-
goAne, Port de Paix, and Saint Marc. In fact at Aquin, Miragofne,
and Port de Paix customs receipts from exports were actually greater
than those from imports, though for the Republic as a whole export
receipts were considerably less than one-half as great as those from
imports.






TABLE No. 35
CUSTOMS RECEIPTS, BY MONTHS, FISCAL YEARS 1916-17 TO 1924-25

Month 1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25 Average

Gourdes Gourdes Gourdes Gourdes Gourdes Gord Gors Gourdes Gourdes urdsrdes Gourdes
October.---...- ....---- .. 1,264,221.79 826,407.95 1,271,795.50 2,203,830.11 2,028,375.05 2,266,419.11 2,334,333.47 2,767,890.81 3,402,041.96 2,040,590.63
November............... 2,010,951.00 1,265,103.67 1,950,378.86 2,237,639.58 1,602,091.76 2,746,774.92 3,046,438.97 3,674,196.52 3,532,376.74 2,451,772.44
December....------...-- 2,250,253.90 1,108,042.42 2,397,726.40 4,062,883.07 1,159,061.37 2,614,327. 78 3, 476,350. 92 3,793,955.15 4,377, 676.90 2, 804,475. 32
January.-----.... ..-- .. 2,103,407.80 1,159,289.36 2,864,815.95 4,018,532.95 1,394,708.45 2,221,222.54 2,708,034.39 3,317,806.82 4,158,786.58 2,660,733.86
February....---------- 1, 570,591.70 1,325,368.69 3,201,073.21 3,010,886.53 1,286,910.21 1,727, 043.30 3,069, 606. 76 2,476, 503.60 3,445,665.41 2,345,961.04
March-..---..---.--- 1,773,146.93 995,440.77 3,138,914.75 3, 030,207.61 1,448,927.95 2,474,134.54 2, 840,105. 33 2,699,204.86 3.262,219.08 2,406,922.44
April ----------- 1,015,109.83 1,305,495.57 3,693,411.06 2,757,579.78 1,776,437.36 1,952,743.17 2,696,799.51 2,201,294.48 2, 632, 532.07 2,225,711.42
May.--...-- --------- 1,369,610.14 1,590,270.61 2,403,774.18 2,413,281.91 1,038,235.59 1,734,815.82 2,057,070.13 2,065,892.60 2,149,489.63 1,869,160.06
June..-----..........--- 1,738,944.20 1,021,526.03 2,986,722.26 2,427,149.04 1,536,758.28 1,508,166.49 1,812.552. 83 1,813,558.87 1,891,355.90 1, 85 637.10
July..--......... ....... 1, 193,955.14 1,049,494.82 1,442,038.29 2,019,142.40 1,516,180.89 1,106,108.32 1,437,358.58 1,520,628.69 1,993,652.76 1, 475, 395. 54
August ..--- -------... 1,020,064.66 1,723,993.91 1,802,429.64 2,003,331.80 1,501,476.91 1,404,575.36 1,661,708.87 1,599,089.95 2.079,270.83 1,643,993.54
September ...--- -------. 985,594.96 1,738,862.45 1,490,531.25 1,888,564.32 1,741,701.18 1,610,238.35 2,052,226.59 2,020,884.79 2,824,950.48 1, 817,061.66
Total--........--- 18,295,852.05 15,109,296.25 28,643,611.35 32,073,029.10 18,030,865.00 23,366,569.70 29,192,586.35 29,950,907.14 35,750,018.34 25,601,415.03


TABLE NO. 36
CUSTOMS RECEIPTS, BY PORTS, FISCAL YEARS 1916-17 TO 1924-25

Port 1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25 Average

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Aquin--......--------- 94, 114. 64 20, 656. 45 177,269.95 220, 749. 69 111,237. 41 82, 730. 86 265, 202.82 311, 694. 14 271, 407.86 172,784.87
BelladBre....----- -------. 3,088. 45 6,622.60 129.34 ...-------- -- ------- 227.17 151.24 711.89 692.84 1,291.50
Cape IIaitien-....--- .- 3,124, 863.83 2,019,320. 27 4, 002, 279.90 4,142, 743. 20 2,606, 272. 26 3,009,051. 87 3, 262, 065.03 2, 879, 275. 29 3,982, 286. 77 3, 225, 350.94
Caycs.-... ---.. .. .. 1,709,564. 19 1,242,512.83 2, 266,004.67 2,573, 887.56 1,760,405.30 1,868,756.83 2,995,875.03 3, 870,369. 87 3,687,849.55 2,441,691.76
Fort Libert....------ 57, 486. 39 22,146. 18 81,062.11 131, 568. 75 18, 280.36 3, 187. 12 69, 268. 22 205. 85 ..--------.. 42, 578. 33
Glore........----- ------- 696. 75 306.72 ------------- ----------89. 24 1,068.42 899.12 665.73 447.33
onalves...-...--- ...... 1,726,990.98 783,318. 18 1,869,691. 57 1,618,892.01 863,083.05 1,503,659.07 1, 725, 047. 33 1,758, 531. 05 1,915,949. 58 1, 529, 240.31
Jacmel ------................... 1,702,657.92 1,563,905.42 3,225,948.63 2,442,530.79 1,466,978.00 2,109,611.22 2,886,990.06 2,668,272.62 3,064,238.65 2,347,903.70
Jremle.... ...----.-- 1, 047, 356. 57 722, 388. 49 1, 277,581.17 1,075,735.78 505,656.61 563, 893. 16 761,453. 75 1,010,686. 47 1, 220, 315. 09 909,451.89
Miragon..-------- 290,566. 43 63,990. 66 413, 976.94 303, 277.00 306,910.71 361, 735. 59 678, 225. 83 576, 371. 77 599,504.35 399, 395. 48
Ouanaminthe....------ -- 22,614.81 21, 474.98 3, 433. 40 1,401.67 2, 375.76 3,425.04 4,474. 59 6,005.98 8,546.24 8, 194. 72
Petit Gove....---....--- 1, 272,103.61 698,727.67 1, 580,478. 41 1,744, 348.82 812,642.72 1, 274,305.87 2,300,136. 29 1,978,187.51 2, 532, 358.86 1, 577,032.20
Port au Prince------.... 5,564,664.39 6,833,939.30 11,800,911.09 15, 139,101. 58 8, 363, 510. 00 10,759,378.67 12,150,442.35 12,477,230.83 15,986,578. 64 11, 008,417.43
Port de Paix ..-.---.-.. 1, 001, 265. 03 518, 137. 17 1, 103, 826 53 1,279, 22. 26 726, 125. 04 874,426.15 1, 127, 215.90 1, 238, 443. 17 1, 223, 773. 34 1,010, 274. 95
Saint Marc-..---------. 677,818. 06 591, 849. 33 841,017.64 1, 399,529.99 487, 387.78 951,791. 84 966,969.49 1,174, 021.58 1, 255,850.84 927, 359. 62
Total.-......... ---- 18,295,852.05 15, 109, 296. 25 28,643,611. 35 32,073,029. 10 18,030,865.00 23, 366, 569.70 29, 192,586.35 29,950,907. 14 35,750, 018. 34 25, 601, 415. 03







62 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


Distribution of customs receipts by sources and also by months
is shown in Table No. 38 from which it appears that the relatively
heavy months for import revenues were October, November, De-
cember, January, March, and September. For exports the principal
months were November, December, January, and February.

TABLE NO. 37

CUSTOMS RECEIPTS, BY SOURCES AND PORTS, FISCAL YEAR 1924-25


Port Importation


Aquin............--------------------...-----
Belladere..-------------------------
Cape Haitien....----------------------
Cayes.-....------------ ------------
Glore.-...--...--...------- ---------
Gonalves--------------------------..
Jacmel............--------............--------------
Jeremie---.......------....---------------..
Miragoane................-------------
Ouanaminthe.--..........------- ......
Petit Goove..---............---- ----
Port au Prince.....-... ...-- ..---.
Port de Paix......---.....---.....----.
Saint Marc........-----------------------...
Total...--..--..--------------. --


Gourdes
61, 665. 56
691. 50
2,316, 058. 74
2,379, 963. 19
535.23
943, 459. 91
1,561, 647. 91
631, 593. 16
262, 419. 72
7,987. 39
826, 539. 00
13, 208, 782. 22
548, 932.32
702,052.86


Exportation

Gourdes
200, 226.00
1. 34
1, 474,846.39
1,107,914.05
128.50
893, 526. 90
1,384,687.80
543,961. 75
309,415. 55
558.85
1, 636, 738. 55
1,993, 730. 50
620,930. 15
450,859.30


23,452, 328. 71 10,617,525.63


TABLE NO. 38

CUSTOMS RECEIPTS, BY SOURCES AND MONTHS, FISCAL YEAR 1924-25

Month Importation Exportation Miscellaneous Total

Gourdes Gourdes Gourdes Gourdes
October, 1924....-------..---- ---- 2,382,980.60 854,062.95 164,998.41 3,402,041.96
November .... ----- ---------- -..-. 2,193,131.32 1,197,281.59 141,963.83 3,532,376.74
December....---- ------------------- 2,417, 999.17 1,787,466.25 172, 211.48 4,377,676.90
January, 1925 --......-- ----------. 2,315,151.40 1,671,561.00 172.074.18 4,158,786.58
February .-------------------- ------- 1,846,680.42 1,466,192.90 132,792.09 3,445,665.41
March .-------------- ----- 2,213,886.66 917,119.35 131,213.07 3,262,219.08
April ... -----.......------ -. 171,721,679.09 767, 956. 60 142, 896.38 2,632,532.07
Maypi --......l............---- -- 1,476,502.15 555,402.45 117,585.03 2,149,489.63
June -... .------------------------- 1,388, 540.36 395,793.50 107,022.04 1,891,355.90
July .---------.------ ---------------- 1, 576,708.41 281,205.50 135,738.85 1,993,652.76
August ....---- --------------. ------- 1,757,667.13 194,814.94 126,788.76 2,079,270.83
September ..-...--.----------- 2,161. 402.00 528, 668. 60 134,879.88 2,824,950.48
Total--........------------------ 23,452,328.71 10,617,525.63 1,680,164.00 35,750,018.34


Reduced to percentages, customs revenues in the last two fiscal
years were derived as follows:

1923-24 1924-25

Per cent Per cent
Imports ------------------------------------------ 64.80 65. 60
Exports ----------------------------------------- 33.30 29.70
Miscellaneous-------------------------------------- 1.90 4.70

Total---------------------------------------- 100. 00 100. 00


The foregoing percentages are merely additional evidence that the
relative burden of export taxes is gradually becoming lighter.


Miscellaneous

Gourdes
9, 516.30
191, 381.64
199,972.31
2.00
78,962. 77
117,902.94
44, 760. 18
27, 669.08
69, 081. 31
784, 065. 92
53, 910.87
102, 938.68


1,680, 164.00


Total

Gourdes
271, 407. 8
692. 84
3, 982, 286. 77
3, 687,849.55
665. 73
1, 915, 949. 58
3, 064,238. 65
1,220, 315. 09
599, 504.35
8, 546. 24
2,532,358.86
15,986,578.64
1,223, 773.34
1,255, 850. 84


35, 750,018.34


i I


I





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 63

A problem of real importance is to create industries for the so-called
"dead season" of Haiti, not only to keep the population gainfully
employed throughout the year but also to regularize the income of
the Government. As in the previous year, full details of customs
receipts by sources, by months, and by ports are presented in Schedule
No. 3 appended to the present report.'

INTERNAL REVENUE RECEIPTS
As indicated in Table No. 33, internal revenue receipts for 1924-25
amounted to gdes. 4,089,926.19, an unprecedented figure in the history
of the Republic, and gdes. 1,294,055.66, or 46.28 per cent greater
than the gdes. 2,795,870.53 collected in 1923-24, which was the
previous maximum. This record amply justifies the creation of the
internal revenue service and also is the best demonstration that the
service was operated in an aggressive and efficient manner. It is true,
however, that in the early months of the fiscal year 1924-25, taxes
due in previous years were collected in considerable volume, with the
result that there is a possibility that internal revenues will not
maintain the level reached in the year under discussion.
Table No. 39 indicates the sources of internal revenues from
1919-20 to 1924-25, and also demonstrates that many of the present
-taxes are so unproductive that they should be abolished. Further-
more, the present large number of taxes which are not based upon
sound economic principles should be replaced by a few carefully
selected and productive taxes designed to stimulate rather than
depress economic activity.
Undoubtedly a tax on landed property is the most needed reform
in the revenue structure of Haiti. Although land constitutes the
principal form of wealth, it is at present virtually untaxed, while
improvements in the municipalities and agricultural production in
the country districts are burdened with fiscal charges. Such a
situation is stultifying. The result is that land can be indefinitely
held without the necessity of rendering it productive or of disposing
of it. Persons who wish to purchase land and put it to profitable
use find themselves unable to do so at prices consistent with the
return which can be expected, and meanwhile the entire country
suffers because of the considerable areas of territory which are only
partially developed or are unutilized altogether. If a moderate
land tax existed production would have to proceed at least to the
extent of enabling the owner to pay the taxes, or else the land would
have to be sold to other persons who would be willing to utilize it.
Also land values would become correlated with earning possibilities
instead of calculated in accordance with the whims of persons who
happen to believe that their land is desired for purchase by others.
1 See post, pp. 156-160.







TABLE NO. 39

INTERNAL REVENUE RECEIPTS, BY SOURCES, FISCAL YEARS 1919-20 TO 1924-25


Source 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25 Average

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Circulation tax on bank notes ------------------------- ------------------------ 34,615.93 5,769.33
Consular fees-.....-- .........------..------...... ....-- 48,937.60 93, 136.10 83,190.85 82,9585.'00 100,79O 00 152,914.40 93,592.49
Court fees--......-........................................... 9,064.35 6,828.02 6,267.27 6, 966.20 6,609.48 7,919.87 7, 275. 87
Diploma fees.---......---------..... ---------------.------ ---------------- ---- -- 574.75 95. 79
Documentary recording fees-..-.....-- ....................... 386,906.59 199,419.60 228,488.75 227,656.90 220,423.31 288,784.19 258,613.23
Emigration taxes--..-..-------------- -----------------............................................ 330, 560. 00 868, 861. 00 945,022.90 357, 407.32
Fines and penalties------------.. ..................... .... -----659.15 1,347.95 1,374.00 3,722.62 2,326.32 24,770.82 5,700.14
Income tax. .....----------------------.... ........... ......... ............. 211,246.77 156,140.38 745,139.33 296,526.26 625,086.64 339,023.23
Irrigation tax................................................. 1,878.70 15,406.88 3, 583.27 5,753.58 8,353. 61 8,543. 14 7,253.20
Occupational tax on foreigners-.......-........--..... ......... 170, 424.40 170,298.80 177,130.75 185, 769. 95 173,363.88 208,445.27 180,905. 51
Official Gazette................................................ 1,889.95 1,086.50 1,240.48 115.50 1,027.05 1,220.20 1,096. 61
Official publications, sale of ...........--------- -------------------....... ------------------------------...... ............... .... ...... ...... 344. 35 57.39
Patent and trade-mark fees --...---..................... ----2,887.5 0 3,517. 50 3,247.50 13,845.00 10,925.00 5,700.00 6,687.08
Post-office box rentals--.............-.........................- 6,814.14 -7,882.25 7,928.25 6,249.30 8,734.15 11,348.90 8,159. 5
Public auction fees --.................-........................ 13,142. 52 3,824. 01 2,718.38 2,115.97 3,674.74 1,463.34 4, 489.83
Public land rentals............................................ 120,335.24 49,693.36 66, 621.36 65,783.13 70,908.77 177,919.02 91, 876. 82
Stamp receipts:
Bank checks-..-........ ----.......... --.-----...-- ........ 7,869.40 5,063.20 6,607.30 10,799.20 9,599.60 15,915.40 9,309.02
Commercial account books....--..--.----.... ...---.... ----3,939.40 2,650. 60 3,262.10 2,528.40 2,163.10 4,643.20 3, 197.80
Documentary stamps--...-.....--..............-----. ..-- 213,799.80 207, 736. 71 184,322.15 151,522.01 168,515.58 371,795.54 216,281.97
Postage stamps---....-..--...........---...... .-----....- 148,481.08 122,342.31 122,118.53 130,649.21 119,147.96 195,755.00 139,749.01
Stamped paper ---...................-- ....-...-- ..-..-.. 189,773.70 137,028.07 73,072.30 87,773.10 49,946. 73 55,620. 51 98,869.07
Stock and bond taxes-.....-..-..-..---..---------- ..-- .......... --...-----1,880.00 22, 601.30 35,181.40 72,162. 25 55,099. 40 31,154.06
Telegraph and telephone service-..-......--......------- ...... 158,686.30 130,604.70 157,867.70 209,970.00 226,741. 65 541,103.31 237,495.61
Visas of manifests ---..................-....-...----...--- ...-- 3,476.79 2,475.00 12,434.00 7,250. 0 4, 029.00 5,237.50 5,817.05
Vital statistic fees-..............---- ..-- ...--...--.---- .. -----12, 507. 25 --------- ----------- 82,541.45 70,994.77 94,034.03 43,346.25
Water service.-....--- ........--....------- ............--- 76, 231.10 207, 843.57 203,750.90 209,336. 62 199,377. 67 240,553.54 189,515. 57
Miscellaneous --.........-......-- --...- ----. .....-- ... 308, 470. 03 315, 859. 80 56, 279. 25 95,629. 37 100,667.65 15,495.04 148,733.53
Total..-.........-......-................... ........ ...... 1,886,174. 99 1,897,171.70 1,580,246.77 2,699,443.24 2,795,870. 53 4,089,926. 19 2,491,472.28


- Miscellaneous includes steamship passenger tax which was replaced by documentary stamp tax January, 1925.


_ __I


05





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08





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 65

A second tax which is desirable from the revenue point of view
*and also from that of public welfare is a substantial tax on the pro-
duction and consumption of alcohol. Practically all countries recog-
nize the production and consumption of alcohol and alcoholic
beverages as a legitimate source of revenue, and in Haiti even a
moderate tax on alcohol would permit the removal of many fiscal
charges which are at present ill-considered and unproductive.
More extended discussion of present internal revenues and their
administration in the several financial districts of the Republic is
presented in the report of the director general of internal revenue,
annexed to the present report.

MISCELLANEOUS RECEIPTS
Reverting again to Table No. 33, it is found that during the past
fiscal year miscellaneous receipts reached the considerable figure
of gdes.. 647,722.47. This also was by far the largest income from
miscellaneous sources in the history of the Republic, and compared
with gdes. 155,543.66 in 1923-24 showed an increase of gdes.
492,178.81, or 316.43 per cent. Miscellaneous receipts during
1923-24 also far exceeded the maximum figure of previous years
which was gdes. 58,071.65. In large measure miscellaneous receipts
represented interest paid on deposits of the Government, and indicate
the value of careful administration of the funds of the Government
which are not immediately required for expenditure. Nevertheless,
it can not be expected that in succeeding years interest on govern-
mental deposits will equal the showing of 1924-25, because in that
year important balances from the Series A loan were in interest-
bearing accounts, and obviously these balances will no longer be
Available upon the completion of the work of the claims commission.
Furthermore, as soon as the remaining holders of the bonds of the
1910 loan accept the principle laid down by the courts of France
that there is but one currency in that country, namely, francs, rather
than gold francs or paper francs, miscellaneous receipts of the Haitian
Government will be further diminished, since at present interest on
funds carried for repayment of the 1910 loan amounts to more than
fr. 90,000 a month.
During the year under review cash balances of the General Receiver
in Haiti were carried at the lowest point consistent with ability
promptly to meet all payments as due, and other current assets
of the Government were carried as New York funds so that interest
could be received on such deposits. Inasmuch as it is the policy
of this office to maintain substantial cash balances it follows that
interest on deposits will continue to constitute a source of miscel-
laneous income of no negligible importance.
Table No. 40 shows the sources of miscellaneous revenue receipts
for the fiscal year 1924-25, as well as the months in which such
'miscellaneous receipts were received.
95618-26---6






66 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

TABLE NO. 40

MISCELLANEOUS RECEIPTS, BY SOURCES AND MONTHS, FISCAL YEAR 1924-25

Interest on
Month governmental ofron Miscellaneous Total
deposits ancs

Gourdes Gourdes Gourdes Gourdes
October, 1924----........-.....-- ....- .....- ... 46,200.18 ...-..-...- -- 1,666.60 47,866. 78
November---..--.......----.....--- ...- ---. 8,980. 29 .....--......----- .......-.. 8,980.29
December--..---...........---------.. ----..-- 9, 194. 24 -......-...- ------------...- 9,194.24
January, 192......---------------------------------- 8,702.80 -------------- 11,666. 60 20,369.40
February .---....----..... .....-.-------- 117,992.40 ---...--- 2, 500.06 120,492.46
March------------..............-..--------------------------.. 30,897.50 --------------.............. 25,000.00 55,897.50
April---------------..--..------------------------ 33,928.25 ---------....-----.--------------.. 33,928.25
May...------- -.........................--- 26, 355.75 .....---..... 55,634. 10 81,989. 85
June-...--..-..-..----...- ---......----- ... --26,820.15 -.....----............----- .. 26,820.15
July ..---------...... -- ---......-- ........--- 26,323. 45 57,387. 90 .....------.. 83,711.35
August-...........--- ~........-.........------ 27,254.30 22,334.55 54,096. 58 103,685.43
September---......----....---.......-- -- .---. 32,076. 70 21, 712. 00 998. 07 54,786. 77
Total-......------.....----......------. 394, 726.01 101,434. 45 151,562.01 647,722.47


NONREVENUE RECEIPTS

During the year 1924-25 there was an attempt to consolidate
all funds of the Haitain Government so that both assets and liabilities
could be reflected in one set of controlling accounts. These were
obviously the accounts carried by the General Receiver. Therefore,
during the course of the year certain miscellaneous deposits in con-
nection with cash bonds were placed in charge of the General Re-
ceiver. Also during the year 1924-25 an effort was made to bring the
administration of the pension system into harmony with the laws,
and to that end it became necessary to collect pension deductions in
considerable amounts which were due and unpaid. The sources of
nonrevenue receipts, as well as the months during which such funds
were received, are shown in Table No. 41.
As a matter of record total revenue and nonrevenue receipts
by ports or financial districts are tabulated in Table No. 42.

TABLE NO. 41

NONREVENUE RECEIPTS, BY SOURCES AND MONTHS, FISCAL YEAR 1924-25

Month Cash bonds Miscel- Total
deposited laneous

Gourdes Gourdes Gourdes
October, 1924-..-.....-------..... ..-.......-----..------------ ....... 2,522.41 2,522.41
November.....-........------------.-- -------------.-.. ......-..... 161. 10 161.10
December.-------..... ...--- .---...-----.. ...----... ---- ---------..... 166. 84 166.84
January, 1925--------...---.......................----------.. .---..-- 3,972.93 3,972. 93
February.----------.----------------------------------------............ 156.31 156.31
March-----------------------------.... ---------------------------------.. 926. 41 926.41
April .--- ------------ -------------- -------... 901.05 901. 05
---------------------------------- ---------------- ----........ 197. 19 197.19
June..--........-----. -------------------------------..------ ..--------- 332. 67 332.67
July..--------------------------------------------------------- ------- 225. 87 225.87
August---.....---...--.....--------------------------- 60,164.10 128. 59 60,292.69
September......... ..-- .........------------- ....... _...
Total..........----------.... ------------------------- 60,164.10 9,691.37 69,855.47





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 67

TABLE NO. 42
REVENUE AND NONREVENUE RECEIPTS, BY PORTS OR FINANCIAL DISTRICTS,
FISCAL YEAR 1924-25

Port or district Customs internal Miscellaneous Total
revenue

REVENUE Gourdes Gourdes Gourdes Gourdes
Aquin-- .................------- -..... 271,407.86 18,370.13 .--. --......... 289,777.99
Belladlre-------------....----...............--------.... ------692.84 ------......---.........-----..--.............. ----------------692.84
Cape Haitien--------------------.... .----- 3, 982, 286. 77 225, 434. 83 ---------------- 4, 207, 721. 60
Cayes-..........-- ..-...------- ... .... 3,687,849.55 249, 995. 28 .....----- ...... 3,937,844. 83
Glore---------------------------------.......... 665.73 ................................ 665.73
Gonalves..... ----- ... .......-------. 1, 915, 949. 58 121, 671.48 ................ 2,037,621.06
Jacmel--.......-...-..-................ 3, 064, 238. 65 139,635. 77 ......--------- 3,203,874.42
JYremie.---......------ .............. 1,220,315.09 75,138. 68 ............... 1,295, 453.77
Miragone --------.........---- 599, 504. 35 28, 384. 63 ......--..... 627, 888. 98
Ouanaminthe---.....-...- --. ---.. 8, 546. 24 ...............-.... 8, 546. 24
Petit GoAve-- ------...... ------- 2, 532, 358. 86 90, 420. 57 .--- ---- 2,622, 779. 43
Port au Prince.-----..--.. -----.. ... 15, 986, 578. 64 2,967,164. 98 647,722.47 19, 601, 466. 09
Port de Paix--------.. -------.... 1,223, 773.34 72,324. 03 -----.....----- 1, 296, 097. 37
Saint Marc---------------------...---. 1,255,850.84 101,385. 81 ..---........... 1, 357, 236. 65
Total revenue receipts.----...... 35, 750,018.34 4,089,926.19 647, 722.47 40,487, 667. 00
Nonrevenue receipts ............-------------..----- ...------ .------... ---------- 69, 855.47
Grand total---.--.......--- .. ...---.....-- --------.......-----.... ............ 40, 557, 522. 47


GOVERNMENTAL EXPENDITURES

It is impossible to construct statistical tables showing expenditures
of the Haitian Government prior to the American intervention.
Considerable efforts have been made to do so, but the results were
so incomplete and inconclusive that they are not even presented.
However, beginning with the latter part of 1916 expenditures have
been carefully recorded, although some of the former classifications
of expenditures are not altogether satisfactory. From the beginning
of the receivership until the end of the fiscal year 1922-23 disburse-
ments of the Haitian Government according to objects of expendi-
ture are shown in Table No. 43.
At the end of the latter year the form of presentation of expendi-
tures was radically changed so as to correspond with the govern-
mental organizations as classified in the budget of expenditures. For
1923-24 and 1924-25, Table No. 44 shows the comparative costs of
operating the several branches of the Government, including pay-
ments on account of the public debt. Costs of operating the re-
ceivership and the internal revenue service have already been fully
discussed and require no further comment, and discussion of expen-
ditures on the funded debt of the Republic is postponed to the para-
graphs describing the handling of the public debt during the past
fiscal year.






TABLE NO. 43

EXPENDITURES OF HAITIAN GOVERNMENT, BY SERVICES,a FISCAL YEARS 1916-17 TO 1922-23

Financial
Public Public Guaranteed Haitian Extraordinary Financial
Gendarmerie works health Public debt interest and mnt s reis de Miscellaneous Total
ministries credits General
service service subsidies Receiver


Gourdes Gourdes Gourdes Gourde Gourde Gourdes oourdes urGordes Gourdes Gourdes C rd
September, 1916-..-..--.. 711,309.91 690, 284.08 ..----..-.. -----------..... ----------. 1,905,047. 50 --......-- ...-- 89, 850.15 355, 033.48 3, 751,525.12
191-17................ 4,792,156.10 3,288,031.60 .............---------.............. 02, 434.55 5,131,819.90 ----- 796, 625.70 1, 783,109.95 15,884,177.80
1917-18..---............ 4,565,238.75 2,700,853.70 889, 870.75 .............-------- ..-- 5,547,888.85 ........... 741,055.80 170, 089.60 14,614,997.45
1918-19....-...........- 4,594, 5938.30 2,721,341. 50 958, 756.70 497,140. 00 175, 099.15 5,806,871.30 .......------. 700, 035. 60 45, 297.90 15, 499. 480. 45
1919-20..........--------... 5,415,377.45 3,199.680.25 1,338,591.30 245,000.00 461,241.15 8,490.246.70 ------------ 1,380,460.60 116, 268.80 20,646, 866.25
1920-21.................. 5,114,593.80 2,634,628.15 1,541,482.30 13,170,380.95 406,771.30 7,005, 503.45 -...-------.- 1,452,073.10 1,463,022.85 32,788,455.90
1921-22.--................ 5,104,056.45 2,451,720.30 1,244,506.25 21,663.345.05 293,995.55 7,483,538.25 168,422.70 1,279,142.25 67,181.60 39,775,908.40
1922-23...-...--........-- 5,226,550.60 5,019,229.60 1,485,106.25 9,057,374.50 206,400.00 7,811,914.75 232,709.00 1,438,506.15 82,322.30 30,560,113.15
Total............. 35,524,221.36 22, 705,769.18 7,458,313.55 44,633,240.50 1,635,941.70 49,182, 830.70 421,131.70 7,877, 749.35 4,082,326.48 173,521,524.52

The classifications of expenditure in this table are not satisfactory, but a reclassification according to objects of expenditure was found to be impossible.


----- ----------------- -------- ------------------ ~------- ----------------- ---- -----------------------------~c--- -.---1 ------.-1-~~-. I





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 69

However, an apparent discrepancy between the costs of the
Financial Adviser-General Receiver during 1923-24, as presented in
Table No. 22 and in Table No. 44, may well be explained at this
point. Obviously Table No. 44 reflects actual expenditures of the
Financial Adviser-General Receiver according to budgetary classi-
fications, while Table No. 22 represents deductions from the receiver-
ship fund. As a result, the cost of the Palais des Finances, or gdes.
500,000, was charged to the receivership fund during 1923-24, but
expenditures for construction were largely incurred only during the
course of 1924-25, and even in that year were shown not as expendi-
tures of the Financial Adviser-General Receiver but of the public
works service. This is due to the fact that the funds for the finance
office building were appropriated by an extraordinary credit, though
the receivership volunteered to make available from the 5 per cent
fund rather than from the general treasury sufficient sums to meet
the cost of construction. Moreover, in the budget of expenditures,
for 1923-24 the bank commission was carried as an appropriation,
with the result that it was necessary to account for the sum of gdes.
291,925.25 under budgetary credits for the public debt rather than
as expenditures of the Financial Adviser-General Receiver. Finally,
there were reimbursements to the 5 per cent fund of gdes. 14,510.40
derived from various sources. Thus expenditures of the Financial
Adviser-General Receiver of gdes. 1,118,917.23, as shown in Table
No. 44, plus gdes. 500,000, plus gdes. 291,925;25, give a total of gdes.
1,910,842.48. Deducting from this total, gdes. 14,510.40, leaves
gdes. 1,896,332.08, which is the amount shown as deductions from the
receivership fund in Table No. 22. In 1924-25, all difficulties of a
legal and accounting nature were removed so that the costs of the
Financial Adviser-General Receiver as shown in the general state-
ment of expenditures of the Government are exactly equivalent to
deductions from the receivership fund.
During the year 1923-24, certain important creditors of the Govern-
ment which had been exempted from the jurisdiction of the claims
commission were paid in full, and as a consequence payments of
equal magnitude do not appear in the public debt statement for
1924-25. By reason of the complete liquidation of many accounts of
long standing the treasury was relieved of considerable financial
burdens, and was thereby enabled to devote additional funds to new
objects of expenditure rather than to the liquidation of obligations
incurred in previous years. In spite of the liquidation of many
claims during 1923-24 total expenditures for the public debt were
approximately gdes. 2,260,000 greater in 1924-25 because of the fact
that the clauses of the loan contracts requiring additional debt
retirement came into operation, as revenues exceeded 35,000,000
gourdes for the first'time since the negotiation of those contracts.






70 IAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

TABLE NO. 44
RECEIPTS AND EXPENDITURES, FISCAL YEARS 1923-24 AND 1924-25

1923-24 1924-25

RECEIPTS Gourdes Gourdes
Customs.--.-----------......---..--.-..--.-...------ ..--..--- ... 29, 950,907. 14 35, 750, 018. 34
Internal taxes...-----... -...... -...------....-------............ 2, 795, 870. 53 4, 089, 926.19
Miscellaneous -..-...-..............-.......-- .......--.......--...... 155,643.66 647, 722. 47
Total revenue..---.......................----------------... 32,902,321.33 40,487,667. 00
EXPENDITURES
Public debt:
Financial Adviser-General Receiver.----....- -------.... --..... 1,118,917.23 1,849,537.49
Internal revenue service.....-- -........... ----..... --------....- 73, 478. 88 342,928.16
Series A loan........-....-- ...-- .......--- ...---................... 5,589,864.50 7,336,491. 75
Series B loan-......---....--....---....------.----...--- ..... 1,695,970.36 2,453, 151.41
Series C loan...---...-....--.........--...----.....--------.. 928, 174.00 1,209,067.55
Interior consolidated debt ................---------------------..----.- 195,839. 01
Fiduciary currency--------...........------------------.-----------------...... 420,000.00
Haitian Construction Co., notes--------.----.........---------------.... 433, 915. 00 ....---...--....--
Roberts, Dutton & Co., claim--.....---........ ----..--....... 277,872.35 ---...
Commissions paid to Banque Nationale...----------------........ 828,227. 51 27,958. 63
Stamp sales, discounts and expense.....................-------------... .... 13, 285.42 3,191.31
P. C. S. Railroad subvention---..--- ................----------... 206,400.00 206,400.00
Wharf company subvention--............... --------------.................. 524,564. 28 268,838.26
Cable company subvention-..............-------..-. --.--. 480, 000.00 120,000. 00
Total...................................................... 12,170,669. 53 14,433,403.30
Gendarmerie-----. ----. ---------------..-----------... -.....-.. -5, 322,449.22 5,579,242. 54
Foreign relations.-----------------.---.--......... ... 734,199.47 619,953.31
Finance--....-----......... -------.--..- ...- ... 1, 620, 366. 84 1,197, 945. 96
Commerce-...-- ....-...--- ....-..- ------------------------.------ --.......... 230,051.46
Interior..----......---------------------------- ---------...... 1, 363, 403. 06 1,208, 067. 76
Public health service.---------..------...------...............---- 1,529,057.91 2,223,059.14
Public works....-----.. ----------------------------.............. 961,336.20 703,416.57
Public works service.......-----..-----------............-------..-- 5,895,159. 05 7,533, 943. 51
Justice--...........------------------- -------------- --........ 1,373,533.28 1,333,838.31
Agriculture ...------------------ ----------------.............. 148, 288.24 44,258.88
Agricultural service...------------.-------------------.---------- 434, 445. 89 1,526,891. 70
Labor..................----------------- ---------------.....------ ......... 274,393.63
Public instruction--.......---....-- ---------------........ ---- 2,306, 194. 25 1, 942, 599. 20
Religion ................-------------------------------------... 457, 393. 00 367,136.75
Total expenditures from revenues--------------------------... 34,215,495.94 39, 218, 2020
Receipts over expenditures..-------..........----------------.----..-.. ------ 1, 269,464. 98
Expenditures over receipts.------ -... ------------------.--- -.. 1, 313, 174. 61 --.............


Costs of maintaining law and order in 1924-25 were approximately
the same as in previous years, but were somewhat increased by reason
of the transfer of the lighthouse service from the public works service
to the gendarmerie and by reason of the fact that the prisoners of the
Republic were given additional care, particularly along medical lines.
As the gendarmerie organization is at present upon a relatively satis-
factory basis it need not be expected that material increases in its
costs will occur in the immediate future, in the absence of drastic
changes in the general level of prices and provided that internal and
external peace continues to prevail.
Expenditures in the Department .of Foreign Relations were less
than during 1923-24, due principally to the fact that dues to various
international bodies were not liquidated within the course of the
fiscal year under discussion. Other costs of the Ministry of Foreign
Relations were approximately the same as in 1923-24.
In 1924-25 expenditures of the Department of Finance and the
Department of Commerce were listed separately for the first time.
Total costs of the two departments were somewhat less than in the





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 71

previous year due to the fact that payments of various sorts of claims
of long standing which are accounted for as expenditures in the
Ministry of Finance have been gradually settled, thus making possible
continually smaller disbursements in that department.
For some years the public health service has felt handicapped by
the lack of funds. Even yet funds are not adequate for the numerous
purposes to which they could be effectively devoted in ameliorating
the general health of the Republic. Persons who have not made a
careful study of health conditions in Haiti have difficulty in realizing
the extent to which illness, disease, and malnutrition affect the effi-
ciency and happiness of the Haitian population. It is therefore with
gratification that expenditures of gdes. 2,223,559.14 can be reported
for 1924-25, an increase of 45.41 per cent over similar expenditures
in the previous year. There is also considerable evidence that the
activities of the public health service are yielding productive results
in the capacity to work of the population and in diminishing the
number of persons who are unable to support themselves.
Vigorous prosecution of public works has characterized the policy
of the United States in various countries where administrative assist-
ance has been offered toward the solution of governmental problems.
For several years the public works service, created in pursuance of
Sthe treaty of September 16, 1915, has been particularly active in
establishing means of communication and other needed facilities-for
placing the economic, social, and governmental, activities of Haiti on
more modern bases. As a result, expenditures of the public works
service have tended to increase, and they should continue to increase
for many years to the extent that revenues permit. For Haiti is
still in a backward condition so far as roads, trails, bridges, munici-
pal water-supply, irrigation works, telephones and telegraphs, school
buildings and other public buildings, and port improvements are
concerned, and unless revenues expand at a much more rapid rate
than anticipated it will be many years until the deficiencies are fully
supplied.
During 1924-25 the agricultural service completed its first full
year as.a going concern, and it is therefore not surprising that expen-
ditures far exceeded those of the previous fiscal period. Agriculture
has been and is likely to be the backbone of the economic life of
Haiti. Consequently it is most discouraging for those persons who
are trying to construct an adequate government as a basis and
encouragement for a wholesome and well-rounded economic life to
realize that Haitian agriculture is conducted in an altogether primi-
tive fashion. Total production and production per capital are meager,
and both the income of the agricultural population and income of the
Government, which is largely a reflection of the income of the peas-
ants, are wofully inadequate. Too much emphasis therefore can





72 HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER

not be placed upon developing the agricultural possibilities of the.
Republic, and, subject to sound treasury considerations, the agri-
cultural service should receive such funds as can be expended eco-
nomically and constructively.
During 1924-25 a Department of Labor was organized for the-
purpose of administering certain technical and professional schools.
These schools were placed under the general supervision of the
director general of the agricultural service, and the entire organiza-
tion of the professional and technical schools is closely correlated
with that of the agricultural service. It is planned considerably to<
enlarge the scope of professional and technical education particularly
in the direction of training in useful arts and sciences, because Haiti;
is surprisingly deficient in the number of skilled workers.
Expenditures in the Department of Public Instruction declined:
from 1923-24 to 1924-25, but from this fact it should not be concluded.
that smaller funds were devoted to educational purposes. Just the
opposite is the case, as a considerable portion of the activities of the.
agricultural service and all of the activities of the Department of
Labor were concentrated on educational work. As yet results canm
not be shown from the program of agricultural education and instruc-
tion in various useful trades, but in the course of time undoubtedly
the present expenditures will be reflected in a more flourishing-
agriculture for the Republic as well as in availability of adequate.
numbers of artisans of acceptable skill. At such time the improved.
standards in agriculture and in the arts and industries will also be
reflected in increased purchasing power and higher standards of living
because of increased productivity of the population. In short, the
process is spiral in character: Improved education leading to increased
productivity; increased productivity assuring higher standards of
living; and higher standards of living permitting added expenditures
for the further development of education.
Total expenditures out of revenue in 1924-25 amounted to gdes.
39,218,202.02, an increase of gdes. 5,002,706.08, or 14.62 per cent,
over the previous year. Though this increase in expenditures was
considerable the extraordinarily favorable situation as regards income
made it possible to close the year with a surplus of gdes. 1,269,464.98
in comparison with a deficit of gdes. 1,313,174.61 in 1923-24. Thus
the sound financial position of the Haitian Government which was
accomplished and maintained during the receivership period was
further strengthened in the fiscal year just closed. Data for receipts
and expenditures for the entire period of the American intervention
are presented in Table No. 45. From 1916-17 to 1924-25 revenue
receipts were gdes. 5,983,743.32 greater than expenditures out of
revenue, and this amount was practically equivalent to, though
slightly less than, the unobligated cash balance at the end of the past.





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 73

fiscal year, thus indicating that when the intervention occurred the
Haitian treasury was completely empty. It also indicates that the
costs of all operating activities of the Government for the past nine
years have been met out of revenue and that resort to loans has been
for the exclusive purpose of liquidating obligations incurred prior to
American participation in Haitian affairs.

TABLE NO. 45
RECEIPTS AND EXPENDITURES AND EXCESS OF RECEIPTS OR EXPENDITURES,
FISCAL YEARS 1916-17 TO 1924-25

Year Receipts Expenditures Surplus Deficit

Gourdes Gourdes Gourdes Gourdes
1916-17................................. 18,934,684.70 15,884,177.80 3,050,506.90 ...............
1917-18-....-------------------.... ..-- -..------- 16,048,390.75 14, 614, 997.45 1,433,393.30 ..... --
1918-19------------------- ------------ 29,955,933.45 15,499,480.45 14,456,453.00 ------..........
1919-20.--.. --......... ------......... 33, 997, 450. 79 20,646,866.25 13,350,584.54 ...-
1920-21-----........------------. 19,946,095.70 32,788,455.90 ..........------ 12,842,360 20
1921-22-------.... .-----------------.. 24,964,795.72 39,775,908.40 ......-----.... 14,811,112.68
1922-23....-------.... .-------------.. 31,950,101.24 30,560,113.15 1,389,988.09 ---
1923-24....- -----------------.. 32, 902,321.33 34,215,495. 94 ....-----.... 1, 313,174.61
1924-25.--~............----------------- 40,487,667.00 39,218,202.02 1,269,464.98 ...........
Total -............------------ 249,187,440.68 243,203,697.36 34,950,390.81 28,966,647.49
Surplus for period- .................... .--------- ------------- 5,983, 743. 32

For the purpose of showing the distribution of the financial activi-
ties of the Government throughout the year Table No. 46 is presented,
showing receipts and expenditures in accordance with the sources of
receipts and the objects of expenditures for each month of the fiscal
year. Cumulative monthly totals of receipts and expenditures
together with the corresponding surplus or deficit are also presented.
Expenditures as well as revenues during 1924-25 were among the
largest in the history of Haiti, and analysis of the objects of expendi-
tures is the best evidence that funds were not dissipated but were
devoted to improving the interests of the Haitian people. During
periods of prosperity when treasury statements are showing current
surpluses is the easiest time for vigilance to be relaxed, for total
expenditures to get out of hand and for objects of expenditure to
become less carefully scrutinized. All of these dangers have been
avoided in the past year. Expenditures were held well within
receipts, and no appropriations were authorized unless it was believed
that expenditures under such appropriations were necessary and
proper in prosecuting the-program of economic and social development
which has been adopted for Haiti.
In this connection it should also be noted that ordinary budgetary
appropriations for 1924-25 were maintained at a most conservative
level and were several millions of gourdes below actual receipts.
Other expenditures were in the form of extraordinary credits which
can be permitted or refused in accordance with the position of the
treasury. Full budgetary control can therefore be regarded as in





TABLE NO. 46

RECEIPTS AND EXPENDITURES, FISCAL YEAR 1924-25

Receipts


1924 1925

October November December January February March April

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Customs-..--....................... ........-......... ...... 3,402,041.96 3,532,376.74 4,377,676.90 4,158,786 58 3,445,66& 41 3,262,219.08 2,632,532.07
Internal taxes....----... ----............---......--..... 62,881.67 311,019.27 437,934. 72 340,213.03 296,396.69 348,132.72 400,701.96
Mlscellaneous...........................................-..... 47,866.78 8,980.29 9,194. 24 20,369.40 120,492.46 55,897.50 33,928. 25
Total revenue.....---..............................-.... 4,012,790.41 3,852,376.30 4,824,805. 86 4,519,369.01 3,862,554. 56 3,666, 249.30 3,067,162. 28
Nonrevenue...---....... .....--...............- ...... 2,522. 41 161.10 166.84 3,972.93 156.31 926.41 901.05
Total receipts.......................................... 4,015,312.82 3,852,537.40 4,824,972.70 4,523,341.94 3,862,710.87 3,667,175.71 3,068,063.33


1925-Continued
Total
May June July August September

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Customs.-------.----- -----............ ----------------------------- 2,149,489.63 1,891,355.90 1,993,652.76 2,079,270.83 2,824,950.48 3". .'.,.," IIt
Internaltaxes-------------...----- ----------------... ------------- 258,846.80 315,811.73 294,295.06 232,307.64 291,384.90 1,'", I
Miscellaneous.-------. -- ... ..- ...--..---......-- ......------... 81,989.85 26,820.15 83,711.35 103,685.43 54,786.77 647,722.47
Total revenue..--------------.. ------.......... ---........ 2,490,32 628 2,233,987.78 2,371,659.17 2,415,263.90 3,171,122.15 40,487,667.00
Nonrevenue..--- ...-..----- ...---- ....-- ...-.....--- ......... 197.19 332.67 225.87 60,292.69 ----------- 69,855.47
Total receipts.... -- -------------........................... ..... ......... 2490, 523.47 2 234, 320. 45 2, 371,885. 04 2, 475,556. 59 3,171, 122. 15 40,557, 522.47


L re





Expenditures


Public debt:
Financial Adviser-General Receiver--....... .----....
Internal revenue service...-----...........................
Series A loan---....-..-.---.-.. .. ............. .. ...
Series B loan ...................................-..... _~..
Series C loan---....... .......----- ..........
Fiduciary currency.---------..-..-. .---------.----
Interest, consolidated internal debt---.............-.......
P. C. S. Railroad subvention.-..--...---...--- ..-..- ..
Wharf company subvention--.......................
Cable company subvention--------------.....-- ..........
Commissions paid to Banque Nationale.--------------
Stamp sales, discounts and expense ...------..... ----
Total.......... ----------..........
Gendarmerie-.-----....... ..........
Foreign relations-----...... --------------.. .
Finance----- ........---------------
Commerce .---...----------
Interior----------- ..... -------- --
Public health service-...-.......---------------------.....
Public works .........................-------...
Public works service------------...........................
Justice -............ ------....... ............
Agriculture ............--- --------............-
Agricultural service--...............----- .... ......
Public instruction....--............................
Religion..----.--.... ---.. ..... -----
Labor----...------..--.--- ......... ...
Total revenue payments..........-- ..................
Awards of claims commission...----....- -
National Railroad construction ....... .................


1924 1925


October November December


Gourdes
384,195.86
40,329.09
5,609,375.00
305,131. 90
145,353. 25


52,193.990
--."---------'--
...... -,--i-.--


6, 536, 579. 09
337, 866. 59
45,263.08
81, 747. 59
" 16,476. 99
94,874.64
155,798.34
54, 016. 35
416,899.91
102,538.87
3,348.15
167,929.42
152,259.78
25,962.46
10,134.90


January


February


March


- -- --- --------


(ourdes
102, 554. 05
28,091.42
6,250.00
184,308.45



35,648.30
12, 115.00
27,958. 63
3. 11.31


S400,117.16
441, 489. 70
64, 765.49
83,231.20
14,380.47
91,905. 77
149,954.11
67,547. 70
467,945.17
102, 562. 24
3,306.95
99,588.19
156,281.90
.31,785.92
20,091.23


Gourdes
88,446. 66
22,990.97
14,251.10
415, 654. 93



----7, 137.31---
- - -
- -


558, 400. 97
375, 972. 40
24,289.35
127, 762.15
22,434.35
107,996. 58
200,262.50
47,625. 45
440,738.29
101,041.52
4,039. 67
142,550. 57
156,581.99
30,000.95
17,437.93


Gourdes
103, 676. 56
28,532.04
1, 695,615. 00
834, 250. 00
281,433.00


206,400.00
25,068.29
18,508.70
................
----------------I


3,193, 483.59
464, 307. 65
82,373.90
144,202. 28
16,868.18
97,097.20
181,266. 28
69, 405. 30
410,851.64
106,200.06
3,465. 72
103, 966. 70
156,465.42
28,146.18
19.401.44


Gourdes
94,054.85
23,787. 67

146,000.00
---::--.--:--::-


25,217.32
52,133.35
- -


341, 193. 19"
479,212.83
49,855. 84
86,460.37
14, 564.25
95,075. 96
165, 504.44
58,243.25
451,627.44
101,380.03
3, 714. 05
134,627.93
160,245.27
31,158. 92
22,069.35


Gourdes
104,898. 11
20,585.89

146, 000. 00
391, 575. 50

173, 635.95

16,535.12
- - -


853, 230. 57
463,465. 81
43,966.21
82,846.29
21, 823. 76
97,615.82
284, 702. 40
53,126. 55
759,386.83
116,469.18
3,549.97
106, 377. 65
176,187.08
33,635.11
31,343.35


8,201,696.16 2,194,973.20 2,357,214.67 5,077,501.54 2,194,933. 22 3,127,726.58
128,342.60 136,460.60 179,501.60 127,998.75 117,507.05 231, 776.40
231,726.10 161,985.15 294,435.40 61,609.55 60,000.00 263, 00. 00


.--------------- -------------------------------------
Total payments ...---------------........... ........ 8,561,764.86 2,493,418.95 2,831,151.67 5,267,109.84 2,372,440.27 3,622,502.98 3,073,423.41
Pension and exchange deductions..... ... .... --------------14,662.02 16,570. 06 14, 559.87 18,140.46 16, 03. 88 16, 564.44 18,095.13
Net payments...........-------------.............. 8,547,102.84 2,476,848.89 2,816,591.80 5,248,969.38 2,356,436. 39 3,605,938. 54 3,055,328. 28
Cumulative revenue-----.. ------------ -.............. 4, 012,790.41 7, 865,166.71 12,689,972. 57 17,209,341.58 21,071,896. 14 24,738,145.44 27,805,307. 72
Cumulative payments from revenue....-- --..--............ 8,201,696.16 10,396,669.36 12,753,884.03 17,831,385.57 20,026,318. 79 23,154,045.37 25,956,383. 38
Difference-...........................----------..... ... -4, 188,905.75 -2,531,502.65 -63,911.46 -622,043.99 +1,045,577.35 1,584,100.07 1,848,924. 34


99
0
bd

!I
99
0'


I-


I'


April


Gourdes N
94, 742.34
18, 882. 33
937. 50
421,805. 88
--------------
--------------r
20,016.46
21, 218. 15
21, 927. 45
----------------

599,530. 09
469,164. 07
56, 280. 55
88,047.06
21,577. 75
127,645.11
239,911.30
61,091. 07
606,018.78
117, 306. 59
4,373. 37
194, 273. 32
160, 367. 21 '
32,077.79 "
24,673.95 j
2,802,338.01
199,085.40 L-
72,000.00








TABLE NO. 46-Continued

RECEIPTS AND EXPENDITURES, FISCAL YEAR 1924-25-Continued

Expenditures-Continued


1925-Continued


May June July August


Public debt:
Financial Adviser-General Receiver.----....-------------
Internal revenue service...
Series A loan.....---------------------------......... ..-
Series A loan........

Fiduciary currency ---....-------------------------................ -----------------------------
Series C loan
Fiduciary currency
Interest, consolidated internal debt. ..... ......------
P. C. S. Railroad subvention.........___
Wharf company subvention.........-- ..-- .-..".. .- :: -
Cable company subvention -------------.-..............
Commissions paid to Banque Nationale.............. .. ---------- -
Stamp sales, discounts and expense...--....-...........-....~_.... ~~-

Total....................................
Gendarmerie.--------------- ------------------------
Fondreig reat --------------------------------------------------------------
Foreign relations ------.............----------------------------
FinanCommce ------- ------------
Commercoe ----------------------------------------------------------------------
Interior ---------------.-----------------------------------------------...
Public health service...---------------------------------------
Public workssr
Public works service
Justice ---------------- ----..............--- ----
Agriculture ..------.............------------------------------------------------------
Agricultural service. -.-------------------........---------------------
Public instruction -------------------................------------------
Religion .. ----------------..... ........--------------------------- -----------
Labor .--.-..-.... ---. .... ...---................-----------------

Total revenue payments ---------------....................... ................. --....


Gourdes
97,706.96
18,505.76
----------------
--- -----------


1,405.65

17,885.29
15,315.50


150,819.16
428,141.79
49,646.14
143, 274.49
17,005.95
100,184.66
185,592.46
42,840. 55
730,955.20
119, 485. 55
3,361.02
117, 065. 69
169, 560. 21
33,749.52
30, 697.09


Gourdes
96,054.87
18, 436.39
3,813.15
----------------


--------- ------
780.95

-------7,384.08---------

_-- -----------


137, 269.44
506,366.18
41,869.14
89,258.46
22,136.16
98,876. 33
163,762.29
70,097.90
688,087. 50
115, 758. 18
4,023.27
120, 106.24
159,547. 42
29,513.60
18, 626.11


Gourdes
135, 519.09
26, 373. 22





14 571.-12
----------------
----------------
----------------

----------------
----------------
----------------


176,263. 43
470,224.72
47,729.59
85,665.62
22,243.53
94,911.00
169,998.28
57, 431. 30
901,517.89
119, 244. 62
3,163.55
104,138. 71
159,735.21
29,191.24
27,028.77


Gourdes
93,687.91
34,998.79
6,250. 00




1--- 6,-741.11-
----------------
----------------

----------------
----------------
----------------
--- -- -- ---
----------------


151,677.81
569,706.61
43,994.33
88,415.32
19,025.89
94,567.56
163,844.76
58,721. 10
848,936. 63
113, 350. 56
3,611.71
108,329.10
157,262.27
29,235. 36
22, 397.15


2,32, 379. 48 2, 65, 300. 22 2,468,487.46 2, 473,076.16


_______ -4


Total
September


Gourdes Gourdes
453, 400.23 1, 849, 537.49
61,414.59 342,928. 16
---------------- 7, 336, 491.75
2, 453, 151. 14 I
390, 705. 80 1, 209,067. 55
420,000.00 420,000.00
---.----------. 195,839.01
--------.---. 206,400.00 0
9, 238.18 268,838.26
--..-------------...... 120,000.00
--.---- ---.---. 27,958.63
... ... 3, 191.31
---------------- 3,191.31

1,334,758.80 14, 453, 403.30
575,524.19 5,579,242.54
69,899.59 619,953.31
97,035.13 1,197,945.96
21,512.18 230,061.46
107,317.13 1, 208, 067. 76
162,461.98 2, 223,059.14 0
63, 270.05 703,416.57 N
810,978.23 7,533,943.51 t
118,500.91 1,333,838.31 N
4,301.45 44,258.88
127, 938. 18 1,526, 891. 70
178,105.44 1,942,599. 20
32,679.70 367,136.75
30,492.36 274,393.63 t

3, 732, 575. 32 39, 218, 202.02 0

h26


I I


I


I I


I


I


~'~~~~*~"r~-i~"i--~I-c` .~~1~--~--~11~ -1.1^- `~~~~1----.I-n~-~~`-----""l.---""~c~..~ -- -----c"----------- ----- ------------------------- ------------------






Awards of the claim commission-..---------------------------...-------------. 20,268.55
National Railroad construction -.......-- ..---.... ------------------------74,500.00
M miscellaneous. ..... ......... ... .. ..... ...... ... ... ..
Total payments...---...------....... ........... ...... ----------2, 417,148 03
Pension and exchange deductions...--------------------...-.--.....--- ....--- 7,710.92
Net payments--...--------------------------.---.-----.--- 2, 409, 437.11
Cumulative revenue -------.--------------------------------- -.... 30,295,634.00
Cumulative payments from revenue...-------------.............--------------------. 28, 278,762.86
Difference.--------------...---..---------------.... ----------------..... 2,016,871.14


8,864.30 37,750.00 2, 739. 9 750.00 1,191,045.2
64,500.00 95,000.00 85,000.00 90,000.00 1,553,756. 20

2,338, 664. 52 2, 601, 237. 46 2,560,816.11 3,823, 325. 32 41,963, 003.42
6,875.69 7,128. 29 7,048. 14 8, 101.39 151, 460. 29
2,331,788. 83 2,594, 109.17 2,553,767.97 3,815, 223.93 41, 811, 54313
32, 529, 621.78 34,901, 280.95 37, 316,544. 85 40,487,667.00 40, 487, 667.00
30,544,063. 08 35,012, 550. 54 35, 485,626.70 39, 218, 202.02 39,218, 202. 02


1,985,558.70 1,888, 730. 41 1,830,918.15 1,269, 464.98


'-

H
66


1, 269,464.98

H





78 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER-

effect, and it is of the utmost importance to continue regular budg-
etary credits well within the limits of conservative estimates of
revenue. If this be done financial embarrassment can not arise,.
and the credit standing of Haiti will continue to make the gratifying
progress which has characterized the recent past.
TREASURY POSITION
Throughout the course of 1924-25 the strong asset position estab-
lished in previous years was maintained. In fact total assets of
gdes. 29,611,691.25 on September 30, 1925, were gdes. 1,147,005.72
greater than on September 30, 1924, but unobligated cash was less by
gdes. 630,690.91. As pointed out in the discussion of miscellaneous.
receipts, every effort was made to render productive the cash funds
of the Government, and at the end of the fiscal year under review
deposits of the General Receiver in New York were more than 1,000,-
000 gourdes greater than at the end of the previous year, while
noninterest bearing funds in Haiti had declined by approximately
gdes. 1,750,000. Funds of the Haitian Government carried in New
York also showed some increase, derived entirely from interest on
those deposits. It would have been perfectly proper to consider
such accruals of interest as revenue receipts, but it was considered
more conservative to permit such interest accruals to be credited
to the balance of the series A loan and thus be available for awards
of the claims commission, for retirement of the public debt and for
public works.
Asset and liability accounts of the Government are set up in Table
No. 47. Reserve against nickel currency in both the asset and lia-
bility accounts showed an increase during 1924-25 of gdes. 420,000.
This was the first action of the Government in several years toward
carrying out article 14 of the contract of April 12, 1919, with the
Banque Nationale de la R6publique d'Haiti, which stipulates that if
outstanding nickel currency is found to be in excess of demands of
commerce the Government will take proper steps to remedy the
situation. The agreement which was reached with the bank is to
the effect that reserve in gourdes will gradually be deposited with the
bank as trustee so that ultimately the bank will constantly hold
government funds equivalent to the excess nickel which may have
accumulated at any given time in the bank. Obviously the reserve
against nickel currency is not the property of the bank but of the
Government and is therefore properly carried as an asset of the state..
Nevertheless, as the state has agreed to care for any excess of nickel
currency above the demands of commerce the reserve for nickel
currency which has already been appropriated can only be regarded as.
reimbursable advances when all of such appropriated funds are
required to cover actually existing excesses of nickel. On the other
hand, when excess nickel currency in the bank declines below nickel





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 79

reserves already set up, surplus reserve funds can not be considered as
unobligated cash but must be carried as a contingent liability,
available at any time to be replaced in the reserve against nickel
currency. By reason of the agreements reached in 1924-25 it is
believed that the problem of nickel currency, which has been trouble-
some for many years, has been permanently and equitably solved.
TABLE NO. 47
ASSETS AND LIABILITIES

Sept. 30, 1924 Sept. 30, 1925

ASSETS
Deposits in Banque Nationale de la R4publique d'Haiti: Gourdes Gourdes
To credit of Haitian Government in New York funds-..-............ 9,313,741.70 9,573,492.30
To credit of General Receiver in New York funds-..--...--..--...- 14, 133, 080.84 15,164, 625.90
To credit of General Receiver in Haiti.---...-...-...........-----. 4,930,926.91 3,170,778.93
Cash in hands of disbursing officers----.....-.......-....... .------- 86, 936. 08 118, 103. 62
Fiduciary currency reserve-..-..-......-... .----------------- --------------- 1, 584, 690.50
Total -----........---............-------------------------. 28,464,685.53 29,611,691.25
LIABILITIES
Interest-internal consolidated debt ...---- ----------------- 200,788.25 442.55
Awards of claims commission, debt retirement, public works------..... 9,313,741.70 9, 573, 492.30
Extraordinary credits..----------------------------------------- 1, 750,476.84 4,01, 791.61
Liquidation accounts.-------------...........--- ------------------------- 1,602,905.48 1,412, 749.17
Nonrevenue credits..-----.....-.........-------.------------------7,254, 771. 15 4,506,031. 30
Cash bonds deposited......... --------- --------------------- --------------- 60, 164. 10
General Receiver's 5 per cent fund for customs service.....---------.- .. 415, 498.73 353, 462.14
General Receiver's 15 per cent fund for internal revenue service--..---. 34, 843. 28 298, 155.99
General Receiver's checks outstanding ----...--.......--------- --- 893, 125. SO 1,438,868.20
Fiduciary currency reserve-reimbursable----...-...----------- -- ---------- 1, 584, 690. 50
Net balance (cash working balance)---...--..--------------------- 6,998, 534.30 6,367, 843.39
Total .---------.---------------.---------------- 28,464,685.53 29,611,691.25

During 1924-25 it was unnecessary to transfer funds from the
balance of the series A loan for the purpose of meeting awards of
the claims commission. Therefore, the reserve for such awards,
for retirement of the public debt and for public works, not only
showed no decline but actually increased by almost gdes. 260,000.
Unexpended balances of budgetary credits no longer appear in the
liability account at the end of the fiscal year, as during 1924-25
the finance law was so changed as to terminate all ordinary budgetary
obligations as of the last day of the fiscal year and merely carry to a
liquidation account funds sufficient to cover the cost of activities
authorized by law which had actually been undertaken and for
which payment could not be effected by the end of the fiscal year.
Therefore, a new account entitled "liquidation account" appears in
the liability statement for the fiscal year just ended. This procedure
represents a considerable advance over past methods and tends to
force operations of the spending departments to be terminated at
the end of each fiscal year, thus giving effect to the principle that
ordinary budgetary credits are appropriated for one fiscal year and
no longer. Moreover, both the spending departments and the
treasury can obtain a clear picture of their positions at least once a year.





80 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

Reserves for extraordinary credits markedly declined from Sep-
tember 30, 1924, to September 30, 1925. This was due to the divi-
sion of the reserve as carried in the previous year into two accounts
designated as reserve for extraordinary credits and reserve for non-
fiscal credits, respectively. In the latter category are carried the
funds immediately available for the cash awards of the claims
commission and for new construction of the National Railroad of
Haiti. As explained above, additional funds can be transferred as
necessary for meeting the cash awards of the claims commission.
A new reserve of considerable interest established in 1924-25 was
that to cover cash bonds and other cash deposits to ensure the faith-
ful performance of contracts and other duties. All such deposits are
now carried in the name of the General Receiver.
In view of the excess of expenditures over receipts of the 5 per cent
fund of the General Receiver, the unexpended balance as of the end of
the fiscal year was smaller than in the previous year. Although the
reserve of the internal revenue service as of September 30, 1925, was
gdes. 298,155.99, it should be remembered that on the first day of
the following fiscal year gdes. 247,506.36 of this amount was returned
to the general fund of the Government as expendable income, the
balance being carried to liquidation account for obligations of the
internal revenue service which could not be paid prior to the end of
the fiscal year.
As the surplus of a corporation is the most interesting single item
of its balance sheet, so in the case of the treasury position of the
Government the unobligated balance is of paramount importance
and interest. By reason of extensive authorizations of credits for
necessary and productive government activities during 1924-25, un-
obligated cash showed a slight decline from the previous year in
spite of exceptionally large receipts. Nevertheless, the cash balance
of gdes. 6,367,843.39 on September 30, 1925, was entirely satis-
factory and represented adequate protection against possible sharp
declines in revenues and possible abrupt increases in expenditures.
The cash balance on September 30, 1924, was gdes. 6,998,534.30,
from which it appears that the decline during the fiscal year under
discussion was gdes. 630,690.91. This office is of the belief that
working capital of not less than gdes. 6,000,000 should be maintained,
except under exceptional circumstances, as long as total govern-
mental activities are of approximately the present magnitude. If
the financial operations of the Government materially increase addi-
tional cash reserves would need to be carried in just the same manner
as is necessary when a corporation expands its business. Working
capital of 16.23 per cent of total annual expenditures and 21.50 per
cent of total assets may, however, be regarded as quite satisfactory,
and both ratios are certainly much higher than could be shown by
most governments.






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 81

PUBLIC DEBT
Probably the best showing in connection with the administration
of Haitian finances during 1924-25 was in the handling of the public
debt. As explained in previous reports, all actual and probable
obligations of the state were set up during 1923-24 so that present
public debt figures should be regarded as an overstatement rather
than otherwise of Haitian indebtedness. For example, it is incon-
ceivable that the entire amount of nickel currency will ever be re-
deemed. Much of the original issues has already been lost, and
most of the remainder is currently required for the conduct of busi-
ness. Nevertheless, the entire amounts of the issues, less actual re-
serves against excess nickel, have been included as part of the public
debt.
Table No. 48 shows the condition of the public debt at the end of
each fiscal year from 1915 to 1925. The table, however, while accu-
rate, is not particularly enlightening unless accompanied by con-
siderable explanation. For instance, it goes without saying that
Haiti did not redeem almost 55,000,000 gourdes of its public debt
from September 30, 1919, to September 30, 1920. The apparent
reduction merely meant that the gold value of the debt declined by
that amount due to the abrupt fall in the value of the franc, in which
currency the principal part of the foreign debt of the Republic was
at that time outstanding. In fact for several years prior to 1923
the debt of Haiti at any given moment was more dependent upon
the value of the franc than on the operations of the Haitian treasury.

TABLE NO. 48
PUBLIC DEBT, 1915 TO 1925

Series A Series B Series C Fiduciary Total

Gourdes Gourdes Gourdes Gourdes Gourdes
Sept. 30, 1915.......... 107,821,656.45 37,185,657.60 ..........--- .- 8,853, 754.80 153,861,068.85
Sept. 30, 1916........ 113,455,856.35 38,974,237.85 ....- ------- 8,352,663.15 160,782,757.35
Sept. 30.1917-......... 119,089,179.15 42,093,154.00 ...... ------ 7,786,974.80 168,969,307.95
Sept. 30, 1918.......... 124,722,501.95 45,014,560.65 ---------------- 7,510,837.75 177,247,900.35
Sept. 30, 1919-..---------....... 90,556,562.00 48,774,145.85 ................ 7,245,000.00 146,575,707.85
Sept. 30, 1920-...... .. 33,487,414.30 51,078,637.35 .........------ 7,245,000.00 91,811,051.65
Sept.30, 1921.....---- 32,225,464.30 53,090,682.40 .....-- ----. 6,080,362.50 91,396,509.20
Sept. 30, 1922.......... 33,505,429.95 52,945,770.25 ..--...----. 6,080,362.50 92, 531,562.70
Sept. 30, 1923---------.. 79,235,000.00 25,000,000.00---------------- 6,080,362.50 110,315,362.50
Sept. 30, 1924.......... 78,242,500.00 23,566,980.60 13,158,711.10 6,080,309.50 121,048,501.20
Sept. 30, 1925--....- ... 75,183,419.30 21,747,462.30 12,640,072.70 5,660,309.50 115,231,263.80

During the fiscal year 1922-23 arrangements were made to con-
solidate all debts of the Republic and to retire the French obligations
by means of a dollar loan. Since that time the form of the public
debt has been much improved, and at the end of 1924-25 it consisted
of but four items. Series A loan is of gdes. 80,000,000, bearing
interest at 6 per cent, running for 30 years and with amortization





82 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

requirements sufficient to retire the whole issue by maturity. It is
a first charge, together with the other series of the authorized issue
of gdes. 200,000,000, against all of the revenues of Haiti, subject
only to a deduction of 5 per cent of customs revenues which is
reserved to meet the costs of the organization of the Financial
Adviser-General Receiver. Series B loan is for a total of not exceed-
ing gdes. 25,000,000, but the amount which will ultimately, be out-
standing depends upon the awards of the claims commission, as the
bonds of this loan are being utilized to refund the former internal
debt and to meet those portions of the awards of the claims commis-
sion which are payable in obligations of the state rather than in cash.
While it is believed that the total authorization of gdes. 25,000,000
will be sufficient for the purposes mentioned there can be no certainty
on this point until the work of the claims commission has been com-
pleted. Series B loan carries the same security and other features
as series A loan, with the exception that interest payments are
subject to a local income tax of 10 per cent. Series C loan to the
amount of gdes. 13,290,804 was authorized for the purpose of refund-
ing the bonds of the National Railroad of Haiti, which bore the
guarantee of the state. The final item in the public debt statement
is the uncovered balance of nickel currency.
As all known obligations of the state were included in the public
debt during 1923-24, it follows that reductions from the amount
outstanding at the end of that fiscal year represented actual progress
in payment of national indebtedness. It is therefore gratifying to
note that some gdes. 2,775,000 were expended in reducing the series
A loan, some gdes. 1,360,000 for retiring bonds of the series B loan,
some gdes. 439,000 for purchase of series C obligations and gdes.
420,000 for additional reserve against excessive nickel currency.
More specifically, the total debt fell from gdes. 121,048,501.20 to
gdes. 115,231,263.80, a reduction of gdes. 5,817,237.40, or 5.14 per
cent.
Both actual expenditures for amortization purposes and the rate of
retirement of the public debt are without great significance unless
compared with total income of the Government. For this purpose
Table No. 49 was prepared, and it is found that during 1924-25 pay-
ments from the treasury for reduction of the public debt accounted
for 12.34 per cent of revenue receipts. This percentage is quite un-
usual in public finance, as is also the percentage of the total public
debt which was retired during the year in question. Table No. 49
shows conclusively that the Haitian debt is comparatively light, as
during the past fiscal year but 15.75 per cent of revenues was required
to cover all interest charges. When expenses of the fiscal agent and
exchange charges are added the percentage is only increased to 15.86.
As in 1923-24 interest charges absorbed 19.08 per cent of revenue





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 83

receipts, it follows that the relative burden of the public debt mate-
rially declined during 1924-25, due principally to the sharp improve-
ment in revenues of the Government.
Payments from revenue on account of the public debt during
1924-25 absorbed 28.20 per cent of revenue receipts in comparison
with 29.85 per cent in 1923-24. However, gdes. 3,525,544.96 from
the public treasury were expended for amortization in 1923-24, and
this was increased to gdes. 4,996,239.54 in 1924-25, an increase of
gdes. 1,470,694.58, or 41.68 per cent. Interest charges were also
somewhat greater and total debt service increased from gdes. 9,822,-
,098.47 to gdes. 11,418,710.44. Thus materially greater treasury dis-
bursements were made for public debt account, although the percent-
age that such expenditures constituted of total revenues appreciably
declined.
To avoid confusion it should be stated that in addition to expendi-
tures from revenue on debt account there were accruals to the sinking
fund in the form of interest on deposits for debt service in the amount
of gdes. 132,439.10 and this amount was also expended for debt
retirement during 1924-25, less a small unexpended balance remaining
in the sinking fund at the end of the fiscal year. As interest on
deposits for debt service was at no time taken up as governmental
-receipts, the expenditure of gdes. 132,439.10 does not appear as a dis-
bursement from either revenue or nonrevenue receipts. Finally it
should be stated that payments of arrears of interest on certain in-
ternal loans were virtually liquidated in 1924-25, disbursements for
this purpose amounting to gdes. 195,839.01 being covered from the
unexpended balance of the series A loan rather than from ordinary
revenues. With the foregoing explanation it will be found that the
statements of expenditures for the public debt, as shown in Table No.
44 and Table No. 49, respectively, are in harmony.
Under the several contracts for the A, B, and C loans it is provided
that if the revenues of the Government exceed gdes. 35,000,000 certain
percentages of the excess up to gdes. 40,000,000 shall be devoted to
additional debt retirement. In 1924-25, for the first time since the
conclusion of the loan contracts, the clauses for additional amortiza-
tion became effective, and in fact came into full operation, as reve-
nues exceeded gdes. 40,000,000. Consequently, it became necessary
to make additional purchases of the obligations of the state for amor-
tization purposes up to a total of gdes. 1,848,437.50. However, in
view of the fact that the year 1924-25 gave every evidence of being
unusually favorable it was decided in January to anticipate the
-additional amortization purchases which would only become obliga-
tory after the close of the fiscal year. In fact it was decided to exceed
'obligatory purchases and to devote gdes. 2,500,000 to additional debt
retirement.








TABLE NO. 49
EXPENDITURES FROM REVENUE FOR THE PUBLIC DEBT AND RELATION OF SUCH EXPENDITURES TO REVENUE RECEIPTS, FISCAL YEARS
1923-24 AND 1924-25

1923-24 1924-25

Expenses Interest Amortization Total Expenses Interest Amortization Total

Gourdes Gourdefs Gourdes oure ode Gourdes Gourdes Gourdes
Series A ----------------------------------------------------14,864. 50 4,691,475.00 83, 525. 00 5,589,864.50 45,876.75 4,515,975.00 2,774,640.00 7,336,491.75
Series B.....-----............... ------------..-------.. 1,561,85 768,91001 925,498.50 1,695,970.36 ......-..- 1,090,770.09 1,362,381.05 2,453,151.14
Series Clmn----- .----------------------------. ----------.. -- 3,616.50 797,135.65 127,421.85 928,174.00 1,089.15 768,759.95 439,218.45 1,209,067.55
Nickel money reserve ......--. ... --------------... ------------ --------------. --------------- ------------------------- 420,000.00 420, 000. 00
Haitian Construction Company notes......................................... ---------------------------------18,990.00 414,925.00 433,91 00 --------
Banque Nationale, arrears of commission --. -----------------------.. ... -------------- 536,302 26 536, 302. 26 --------------
Cable company, arrears of subsidy...............-------------------------------.............. 360, 000.00 360,0.00. .. .---- .- --------------.... ..
Roberts Dutton & Co., claim.---..... -..................... .. -......-....-. -.............. 277,872.35 277,872.35 ......................... ... .. .
Total expenditures ....................... .... ...-------. 20,042.85 6,276,510.66 3,525,544.96 9,822,098.47 46,965.90 6,375,505.04 4,996,239.50 11,418,710.44
Revenue receipts....-...-- .........------------------ ............-........--.....- ...... 32, 902, 321.33 ......------ .........----...... -........ 40, 487, 667.00
Ratio of expenditures from revenue to revenue receipts-............ 0.06 19.08 10.71 29.85 0.11 15. 76 12.34 28.20


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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 85

It is the policy of this office to reduce the public debt as rapidly as
possible, consistent with the proper conduct of the ordinary activi-
ties of the Government. In a word, when revenues are unusually
favorable and are in excess of estimates a part of such excess should
be devoted to the reduction of the debt as well as to the financing of
other functions of the Government. For making effective the fore-
going principle payments of interest and of both ordinary and extra-
ordinary amortization of the public debt were made by anticipation.
In other words, on the first day of the fiscal year 1924-25, funds for
interest and for ordinary amortization of the series A loan were placed
in the hands of the fiscal agent, and amortization funds were imme-
diately applied to debt retirement. Thus by effecting purchases of
obligations of the state at the first of the year, while the loan con-
tracts provide for ordinary amortization purchases during the fiscal
year, but only at the end of 6 and 12 months, respectively, interest
on obligations so purchased was also saved for 6 and 12 months.
Moreover, as under the loan contracts sinking fund purchases for
series A and series C loans can not be effected until interest for the
following 6 months is in possession of the fiscal agent, and as such
prepayments of interest while on deposit with the fiscal agent are
productive of interest it follows that by expedited sinking fund pur-
chases not only are interest charges on the public debt reduced but
also surplus cash funds of the Government become productive of
interest which can be applied to additional debt retirement. The
advantages of accelerated amortization operations are therefore
twofold.
By reason of the aggressive policy of reducing the public debt
which has been adopted, and because purchases of long-term bonds
during the earlier years that such issue is outstanding have a remark-
ably accelerating effect on the total period of debt retirement, it is
evident that the policy which has been put into effect will materially
shorten the period during which the bonds of the series A, B, and C
loans will be outstanding.
Finally, redemption of the public debt in advance of the date
stipulated in the several loan contracts is distinctly profitable for
the Haitian Government. For example, it is estimated that gdes.
375,000 were saved to the state during the fiscal year 1924-25. All
of this sum was devoted to supplementary debt retirement, and this
gave additional acceleration to the debt retirement process.
To illustrate how rapidly the Haitian Government is progressing in
reducing its public debt it should be noted that the loan contracts
in 1924-25 called for ordinary amortization of gdes. 1,739,510.36
and contingent amortization of gdes. 1,848,437.50, or a total
of gdes. 3,587,947.86. Actually, however, gdes. 4,996,239.50 were
expended from the public treasury, and this amount combined with
the expenditure for reduction of the public debt of additional sums





86 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

derived from interest on reserves for debt service in possession of
the fiscal agent, resulted in aggregate debt retirement of the face
amount of gdes. 5,817,237.40 during 1924-25. Of course this satis-
factory showing was in part due to the fact that the series A, B, and
C bonds could be purchased somewhat below parity. While it is
hardly possible that an equally favorable showing will be made in
the next two or three fiscal years, it is also true that debt retirement
will proceed at a continuously accelerated rate as the loan contracts
call for gradually increasing total payments for debt service, thus
leaving a rapidly expanding proportion of funds devoted to debt
service for amortization as interest charges decline.
Details of ordinary and contingent amortization requirements in
comparison with the face amounts by which the several items of the
public debt were reduced in 1924-25, are as follows:
Items Required debt Actual debt Debt reduction in
reduction reduction excess of require-
ments

Gourdes Gourdes Gourdes
Series A-------------------- 2, 190, 850. 00 3,059,080. 70 868, 230. 70
Series B------------------- 1, 051, 854. 91 1, 819, 518. 30 767, 663. 39
Series C .------------------- 345, 242. 95 518, 638. 40 173, 395. 45
Nickel currency reserve -------------------- 420, 000. 00 420, 000. 00
Total--------------- 3, 587, 947. 86 5, 817, 237. 40 2, 229, 289. 54

During 1924-25 definitive fiscal agency contracts for the series B
and series C loans were negotiated with the Banque Nationale de la
R1publique d'Haiti and the National City Bank of New York, re-
spectively, and the contracts were approved by appropriate legisla-
tion. Moreover, definitive bonds for the greater part of the series
B and series C loans were issued, in the first case as awards of the
claims commission were met, and in the second case as bonds of the
National Railroad of Haiti and certificates representing such bonds
were exchanged for definitive series C bonds.
As stated in previous reports, the unsecured nickel currency of
Haiti has presented a rather perplexing problem, particularly as
outstanding nickel has chronically been in excess of commercial re-
quirements. In the year under review definite progress toward
solving this problem was accomplished, as gdes. 420,000 were added
to the reserve for nickel currency on the understanding that if at
any time the accumulation of nickel in the Banque Nationale should
fall below total reserve deposited with that institution for support-
ing the nickel all excess above gdes. 1,164,690.50 should automatically
revert to the sight account of the General Receiver in Port au Prince.
It was necessary to exempt gdes. 1,164,690.50 from being subject to
the foregoing agreement, as that amount of reserve against nickel is
governed by special legislation, which, however, should be repealed.





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 87

There is the further understanding that if accumulations of nickel'
should again occur deposits equivalent to total appropriations for
nickel reserves should be transferred as necessary from the account
of the General Receiver to the account of the bank. Undoubtedly it
will be but a comparatively few years until the nickel currency prob-
lem is completely solved.
By reason of the various policies as outlined above which have
been pursued in connection with the public debt the credit rating
of Haiti, already high, has improved during the year under discussion.
In fact the obligations of few countries have a higher rating than those
of Haiti, partly because of the scrupulousness with which Haiti has
recently been meeting all of its obligations, partly because of the rapid
rate at which reduction of the public debt has been taking place,
partly because of the inherent strength of the security behind the
authorized loan of gdes. 200,000,000 and particularly because of the
fact that the United States Government, while in no wise guarantee-
ing the loans of the Haitian Government, has none the less agreed
to tAke a special interest in these loans until they shall be completely
repaid.
ACCOUNTING
Reorganization of the accounting system of Haiti was largely con-
fined to the fiscal year 1923-24, and in the following year attention
was merely devoted to refinements of the general system which had
been adopted. In a broad way the policy in developing the account-
ing service has been not only to record with promptness and accuracy
financial operations of the Government but also to predict and
prepare for financial operations in the future. That the first objective
was attained is demonstrated by the fact that in each month of
1924-25 all of the operating accounts of the Government were
completed by the middle of the succeeding month. Thereupon full
reports of both receipts and expenditures, of assets and liabilities and
of the public debt situation were given proper publicity, as it is the
belief of this office that citizens of a country should take personal
interest in the manner in which the funds contributed by them to
the government are expended and that citizens should be furnished
with adequate data for formulating intelligent opinions in regard to
the financial operations of their government.
For the purpose of attaining the second objective, not only were
full control sheets carried which reflected the general features of
financial operations but accounts were also set up for each authoriza-
tion of credit and were currently maintained in such fashion as to
show amounts immediately available for expenditures against such
appropriations at any given moment, amounts actually expended,
and amounts available for expenditure until the end of the fiscal year.
Furthermore, a rather elaborate financial forecast was prepared at




88 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

the beginning of the year in an attempt to estimate the financial
situation throughout the course of the year. This forecast was
corrected at the end of each month by actual operating results, and
its preparation was amply justified by the fact that at the end of the
year the percentage of error between the forecast and actual results
was not great. In the meantime this office had a guide to aid it
in considering requests for additional appropriations and in determin-
ing the disposition of cash balances between interest-bearing and
noninterest-bearing accounts.
As previously mentioned, a so-called period of liquidation at the
close of the fiscal year was discontinued in 1924-25, with the result
that the accounts of the Government were in large measure closed
at the end of the financial period. Both this measure and the
adoption of the method of charging the account of the General
Receiver for payments when checks were issued rather than when
such checks were paid by the bank permitted much closer control
over disbursements and also enabled the accounting office and the
bank frequently to reconcile their respective positions. As a matter
of fact, it was formerly impossible to make reconciliation at all.
During 1924-25 agreements were reached between the Minister of
Finance and the Financial Adviser as to traveling regulations for
government employees as contemplated in the finance law. These
regulations have long been needed, and their introduction has served
to systematize procedure in all branches of the Government.
Another weak feature of government accounting which was
remedied in 1924-25 was in connection with revolving funds and
reimbursable credits. There were in existence several revolving
funds, but their legal status as well as their control was not upon a
satisfactory basis. Authority was given by the finance law of 1924-25
for the Minister of Finance and the Financial Adviser to issue proper
regulations, and after considerable discussion agreements were
reached and the instructions put into effect. As a result, all opera-
tions under revolving funds and in connection with reimbursable
credits are as carefully reported and controlled as are specific expen-
ditures under ordinary appropriations.
It is believed that the accounting operations of this office are now
in accord with sound modern practice and that few if any adjust-
ments will be necessary in the immediate future. However, it must
be stated with regret that no progress was made toward establishing
a general audit of all financial operations of the Government during
the year under review.
Nevertheless, an audit of disbursements on account of the public
debt for several previous years was effected, and plans have been
made for the establishment of a systematic current audit of the
remaining financial operations of the Government which have not
heretofore been subject to proper financial control.





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 89

DISBURSING OFFICE
The activities of the disbursing office were both extended and
simplified in the fiscal year 1924-25. In the first place, automatic
machinery was purchased for the preparation of pay rolls and vouchers
so as to terminate the laborious process of preparing on the type-
writer the numerous checks which are made from month to month
in equal amounts for the same persons and for identical purposes.
In addition, the former system of having many classes of checks
prepared by civil pay clerks attached to the district offices of the
gendarmerie was curtailed and at the end of the year was terminated.
By such means not only were mistakes avoided but expenses of pre-
paring the pay rolls were considerably reduced.
Throughout the year payments of all obligations of the Govern-
ment were promptly effected, and measures were also taken to expe-
dite payment of supplies purchased abroad so that full cash discounts
could be obtained by the state. Much of the credit for assuring
prompt and accurate payment of salaries, pensions, rentals and
similar items throughout the Republic is due to the gendarmerie, as
the several district commanders are responsible for the distribution
of pay vouchers in their respective districts. It is therefore a pleas-
ure to record with appreciation the efficient and cordial cooperation
which this office at all times received from the gendarmerie.
SUPPLY BUREAU
So far as practicable the purchase of supplies for the several
departments of the Government is handled through a supply bureau
known as the Bureau des Fournitures. The working capital of the
supply bureau was advanced by the treasury and is gradually being
repaid to the treasury from operating profits. For example, during
the fiscal year 1924-25 reimbursements of gdes. 10,500 were effected.
Reimbursements of even greater amounts would be possible were it
not for the fact that increasing business also necessitates the main-
tenance of increasing inventories.
During 1924-25 sales of the Bureau des Fournitures amounted to
gdes. 206,465.71, and the cost of supplies thus soldwas gdes. 186,530.54.
Gross profits of gdes. 19,935.17 were therefore realized, from which
operating expenses of gdes. 7,500 must be deducted. Net profits of
gdes. 12,435.17 were ffirther reduced by gdes. 2,500 as estimated
depreciation. As a matter of fact, it is believed that the stock of the
supply bureau is worth the full book value at which it is carried, but
in the interest of conservatism the item of depreciation was included.
As of September 30, 1925, inventories of the supply bureau
amounted to gdes. 116,198, bills receivable were gdes. 15,567.49, and
cash gdes. 12,529.72. From total assets of gdes. 144,295.21, the depre-
ciation item of gdes. 2,500 was deducted, leaving net assets of gdes.
95618-26--7





90 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

141,795.21. Against such assets were obligations of gdes. 60,000
which had not as yet been reimbursed to the Haitian Government on
account of capital originally advanced to the supply bureau by the
treasury. Accordingly, assets surpassed liabilities by gdes. 81,795.21,
showing that the supply bureau was in a flourishing condition.
Of the problems of conducting the supply bureau the two foremost
are, first, to reduce the number of items which must be carried in
stock by means of standardizing practices in all of the branches of the
Government in regard to office supplies and equipment and, second,
to increase the annual rate of turnover of stock. At present
inventories are too heavy because of the diversity of items carried in
stock, and the turnover is too slow.
In the course of the year 1924-25 arrangements were made to pur-
chase many classes of supplies through a purchasing agent in New
York who also acts as purchasing agent for the Philippine Govern-
ment, the Manila Railroad, the Government of Porto Rico, and the
receivership of the Dominican Republic. The arrangements have
been advantageous to the Haitian Government, as supplies have been
purchased at lower rates then heretofore, in part due to the fact that
the purchasing agent can pay cash with order when necessary and
thus at all times take advantage of such cash discounts as are offered.
It is believed that if the services of a single purchasing agent were
extended to most if not all purchases of the Government additional
advantages would ensue.
BUDGET AND FINANCE LAW
Financial operations under the budget of 1924-25 were conducted
with reasonable facility, and as stated above the fiscal year ended
with a treasury surplus. As receipts were considerably in excess of
budgetary estimates, and as budgetary appropriations were in general
accurately adapted to requirements, it follows that considerable sums
were available for extraordinary appropriations for productive
purposes. Moreover, the law of finance governing both receipts and
expenditures had been radically revised for the fiscal year 1924-25,
and the success of the innovations was observed with great interest.
On the whole they were found to be well adapted to the specific
requirements of Haitian administration, with the result that only
minor adjustments were necessary for the law of finance governing
receipts and expenditures for the fiscal year 1925-26. Of principal
importance was the elimination of the so-called period of liquidation
and the suppression of the requirement that payments could not be
effected by the General Receiver until the publication of monthly
allotments in the official journal. The latter formality was merely an
annoyance, as delay in publication sometimes resulted in con-
siderable embarrassment.





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 91

Another innovation of more technical than financial significance
was including in the law of receipts the provision that cash bonds for
notaries and similar persons and guarantees stipulated in contracts
with the state should be deposited in the name of the General Receiver,
with the result that at present all funds of the Government are now
concentrated ih one account, whereas formerly a certain amount of
confusion resulted from carrying the principalpart of the funds of
the state in the name of the General Receiver' while certain minor
items were retained in the name of the Minister of Finance.
Much effort has also been expended in attempting to improve the
quality of justifying documents in support of expenditures, and the
finance law gave full authority for requiring the submission of proper
vouchers. In all countries it is difficult to support expenditures by
adequate receipts, and in such a country as Haiti it is particularly
difficult, but satisfactory administration and full financial control
are not feasible until the habit has been formed of submitting against
all expenditures such justifying documents as may be possible.
In the budget for the year 1925-26 receipts were estimated at
gdes. 32,998,999.70, and expenditures at gdes. 32,981,273.87, leaving
a nominal surplus. On the basis of receipts during 1924-25 the
estimates of revenue for 1925-26 may appear inordinately conserva-
-tive, but it should be recalled that 1924-25 was exceptional from
many points of view in so far as finances are concerned, and can not
reasonably be expected to be duplicated in the present year. Never-
theless, it is believed that estimates of revenue should easily be
realized, particularly as receipts during the first quarter of
1925-26 have been most satisfactory.' In fact it is most probable
that the financial situation will appear so encouraging that in addi-
tion to the budgetary credits already approved substantial sums
will be authorized for productive expenditures in the form of
extraordinary credits.
Sound financial administration is almost equally dependent upon
conservative budgeting and upon aggressive handling of the public
debt. It is believed .that in the year under review the financial
administration of Haiti met all reasonable requirements from both
points of view.
CURRENCY
Currency difficulties do not constitute a vital problem'for Haiti.
Fortunately the value of the national monetary unit was stabilized
at 20 cents (United statess currency) with the provision that gourdes
may be freely converted into American dollars and dollars into gourdes
at the option of the holder and without expense to him. The wis-
dom of establishing the present monetary situation has been amply
justified by the absence of currency troubles during the post-war





92 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

period when most governmental treasuries and business organiza-
tions throughout the world were finding fluctuating currencies their
principal problem.
During the fiscal year covered by the present report the currency
system of Haiti continued to give a good account of itself. There was
at no time the slightest question as to the solidity of the monetary
regime, and on this monetary structure was based a superstructure
of currency and credit adequate for the requirements of the Republic.
However, certain additional denominations of gourde notes are desir-
.able, as at present the note of 10 gourdes is the largest in circulation,
and is obviously too small to satisfy more important commercial
requirements. For such requirements United States currency is
ordinarily used. Under its contract with the state the Banque
National de la R6publique d'Haiti is charged with entire respon-
sibility for supplying the monetary requirements of the Republic,
and this obligation was satisfactorily met during 1924-25. Gourde
notes issued and outstanding at the end of each month of the fiscal
year were as indicated below, and plainly demonstrate the seasonal
character of commercial activities in Haiti.
1924 Gourdes 1925 Gourdes
October---------------- 9,727,340 May------------------- 14,129,579
November-------------- 11,886, 595 June------------------- 12, 475, 106
December-------------- 14,318,199 July --- ------------- 11,488,606
August---------------- 10, 624,353
1925 September-------------- 12, 571,319
January ------------- 15,451, 197 Avra 41 78
February------------ 16,783,913 Average 13,412,678
March ---------------- 16, 419, 219
April----------------- 15, 076, 717
Notes of the Banque Nationale outstanding in 1924-25 were
materially in excess of the circulation of such notes in any previous
year, and this fact is merely further evidence of the gradual im-
provement of economic conditions in Haiti. Indeed at one time it
was feared that currency demands were likely to be so extensive
that available notes of the Banque Nationale would be insufficient
to meet requirements. The bank, however, prepared and issued
gdes. 4,000,000 of additional circulation and all currency require-
ments were satisfied.
Inasmuch as the establishment of adequate reserves for excess
nickel currency has now been agreed to in principle, and as the
problem of adequate quantities of convenient denominations of notes
of the Banque Nationale has been solved or is in the way of solution,
there remains no currency problem of outstanding importance. It is
only necessary to continue to exercise proper discretion so that
currency inflation may be avoided. Clearly such inflation could only
be effected by excessive bank credits, since the gourde circulation is
covered by one-third in American dollars and two-thirds in com-