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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Harvard University Library
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HAITI


I ANNUAL REPORT
C,-
OF THE

FINANCIAL ADVISER-GENERAL

RECEIVER

FOR THE FISCAL YEAR

OCTOBER, 1925-SEPTEMBER, 1926


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


THE EVENING POST JOB PRINTING OFFICE. INC.
154 FULTON STREET. NEW YORK. N. Y.


























MAR 2 1927
%C.; 4-JL-










CONTENTS
PAGR
Imports ............................................................... 1
Exports ............................... ............ ........... 2
Balance of trade..................... ............... ................ 2
Origin of imports....................... .................................... 4
Destination of exports ................................................ 5
Ports of entry of imports ................................................ 8
Ports of embarkation for exports................ ......................... 9
Shipping ................................................... 11
Foreign commerce by months and by ports................................ 16
Commodities imported...................... ............................ 18
Commodities exported................... ............................... 23
Imports and exports of currency ........................................ 28
Customs administration .............................................. 30
Tariff revision ......................................................... 30
Commercial conventions .............................................. 32
Customs operations.................................... ............... 33
Internal revenue service ............................................... 44
Customs receipts...................................................... 48
Internal revenue receipts ............................................... 59
Miscellaneous receipts................................................. 61
Non-revenue receipts ................................................... 62
Governmental expenditures............................................. 63
Treasury position................................. ..................... 76
Public debt ............................................................ 79
Accounting ......................................... ..... ........ 85
Disbursing office...................................................... 86
Supply bureau........... ............................................ 86
Budget and finance law .................. ............................ 87
Currency .......................................................... 88
Banking and credit .................................................... 90
Claims commission.................. ................................... 92
National Railroad of Haiti.............................................. 95
Emigration ...................................... ...... ............ 96
Personnel ............................ ... ............. ............. 99
Conclusion .............................................. ............ 99
Annex: Internal revenue service...................... ................... 103
Collections .................................. ..................... 105
Receipts by sources. .............................................. 105
Receipts by sources and financial districts............................ 107
Internal revenue receipts according to sources and months............. 108
Receipts of rural communes ......................................... 111
Administrative and operating costs.................................... 114
Administrative organization.......................................... 118
Personnel ........................................ ............ 118
Quarters and equipment..................................... .. 118
Digest of chief taxes collected................. .................... 119
Emigration taxes............................................. ... 119
Stam p service ..................... ............................ 121
Income tax.................................................... 121
III





IV CONTENTS

PAGE
Annex: Internal revenue service-Continued
Digest of chief taxes collected-Continued
Stock and bond tax ............................................ 122
Occupational taxes on foreigners ................................ 122
Public land rentals .......................................... 122
Recording fees and property transfer tax......................... 124
Consular receipts............................................ 125
Steamship passage tax................................. ..... 126
Irrigation tax................................................ 127
Appendix: Schedules ...................................... ........ 129









STATISTICAL EXHIBITS
PAGE
1. Value of imports and exports, and excess of imports or exports 1916-17
to 1925-26........................................................ 4
2. Value of imports, showing countries of origin, in percentages, 1916-17
to 1925-26.................... .... ..................................... 5
3. Value of exports, showing countries of destination, in percentages,
1916-17 to 1925-26 ............................................... 6
4. Value of total foreign commerce, by countries, in percentages, 1916-17
to 1925-26....................................................... 7
5. Value and percentage of value of imports, exports, and total foreign
commerce, by countries, fiscal year 1925-26......................... 8
6. Value of imports, by ports of entry, 1916-17 to 1925-26 .............. 9
7. Value of exports, by ports of shipment, 1916-17 to 1925-26 .............. 10
8. Value and percentage of value of imports, exports, and total foreign com-
merce, by ports, 1925-26........................................... 11
9. Net tonnage of steam vessels in foreign commerce entered and cleared by
registry and months, 1925-26.................. .......... ........ 12
10. Net tonnage of sailing vessels in foreign commerce entered and cleared,
by registry and months, 1925-26................................... 13
11.'Value of imports, by registry of carrying vessels, 1925-26.............. 14
12. Value of exports, by registry of carrying vessels, 1925-26................ 15
13. Value of imports, by months and ports of entry, 1925-26, compared with
1924-25 .................................... ...................... 17
14. Value of exports, by months and ports of shipment, 1925-26, compared with
1924-25 ................................................ ......... 19
15. Value of imports, by commodities, 1916-17 to 1925-26 ................... 21
16. Quantity of imports, by commodities, 1916-17 to 1925-26 .............. 22
17. Value of exports, by commodities, 1916-17 to 1925-26 .................. 23
18. Quantity of exports, by commodities, 1916-17 to 1925-26 ................ 24
19. Quantity and value of five principal exports, by ports, 1925-26, compared
with 1924-25 ................................. ................. 25
20. Percentage of value of exports, by commodities, 1916-17 to 1925-26...... 26
21. Quantity and value of exports, by commodities and months, 1925-26..... 27
22. Imports and exports of currency.................................... 29
23. Receivership fund, 1916-17 to 1925-26 ................................. 34
24. Expenses of Financial Adviser-General Receiver, by objects of expendi-
ture, 1916-17 to 1925-26....................................... .... 35
25. Repairs and improvements to customs plant and equipment, 1925-26.... 36
26. Expenses of administration, office of Financial Adviser-General Receiver,
by objects of expenditure and by months, 1925-26 .................... 38
27. Expenses of customs operation, by objects of expenditure and by months,
1925-26 ......................................... ................ 38
28. Distribution of expenditures from receivership fund, 1925-26 ............ 40
29. Costs of customs operation, by ports, and costs of administration, perma-
nent improvements and treasury commission, 1919-20 to 1925-26..... 41
30. Total cost of collecting each gourde of customs receipts, 1919-20 to 1925-26. 42
31. Total disbursements from receivership fund, by months, 1925-26......... 45
32. Operating allowance of internal revenue service ......................... 46
33. Costs of internal revenue service, by objects of expenditure, 1923-24 to
1925-26 ......................................................... 47




STATISTICAL EXHIBITS


PAGE
34. Revenues of Haiti, by sources, 1889-90 to 1925-26...................... 48
35. Relation between import and export values and customs receipts, 1916-17
to 1925-26........................................................ 50
36. Customs receipts, by months, 1916-17 to 1925-26....................... 52
37. Customs receipts, by ports, 1916-17 to 1925-26 ......................... 54
38. Customs receipts, by sources and ports, 1925-26........................ 55
39. Customs receipts, by sources and months, 1925-26 ...................... 56
40. Distribution of customs receipts, 1916-17 to 1925-26.................. 57
41. Total receipts of Haitian government, by sources, months and ports,
1925-26 ......................................................... 58
42. Internal revenue receipts, by sources, 1919-20 to 1925-26 .............. 59
43. Miscellaneous receipts, by sources and months, 1925-26................... 61
44. Revenue and non-revenue receipts, by ports or financial districts, 1925-26. 62
45. Expenditures of Haitian government, by services, 1916-17 to 1922-23.... 64
46. Revenues and expenditures, 1923-24, 1924-25 and 1925-26 .............. 65
47. Source and disposition of revenues, in percentages, 1925-26.............. 71
48. Reimbursements to appropriations, 1925-26............................ 72
49. Revenues and expenditures and excess of revenues or expenditures, 1916-17
to 1925-26.................................. 73
50. Receipts and expenditures, 1925-26 ................................... 75
51. Assets and liabilities................................................ 76
52. Public debt, September 30, 1926 ..................................... 80
53. Expenditures from revenue for the public debt and relation of such
expenditures to revenue receipts, 1924-25 and 1925-26.............. 83
54. Required and actual debt reduction, 1924-25 and 1925-26 .............. 85
55. Notes of the Banque Nationale in circulation, by months, 1919-20 to
1925-26 .......................................... ...... ........... 89
56. Loans and deposits of banks in Haiti, by months, 1925-26............... 91
57. Activities of claims commission, calendar years 1923 to 1926.......... 94

ANNEX: INTERNAL REVENUE SERVICE
1. Internal revenue receipts, 1911-12 to 1925-26 ........................... 105
2. Internal revenue receipts, by sources, 1919-20 to 1925-26................. 106
3. Internal revenue receipts, by collection districts, 1919-20 to 1925-26........ 108
4. Internal revenue receipts, by sources and districts, 1925-26.............. 109
5. Internal revenue receipts, by sources and months, 1925-26 ............... 110
6. Internal revenue receipts by months, 1919-20 to 1925-26 ............... 111
7. Internal revenue receipts of rural communes, 1925-26 ..................112-113
8. Operating allowance of internal revenue service ....................... 115
9. Expenses of internal revenue service, by objects of expenditure......... 115
10. Costs of internal revenue service, by objects of expenditure............ 115
11. Expenses of administration and operation of internal revenue service by
districts ......................................................... 116
12. Expenses of internal revenue service by objects of expenditure and by
months, 1925-26.. ........................................... ...... 116
13. Expenses of administration and operation of internal revenue service, by
districts and months, 1925-26 ..................................... 117
14. Cost of collecting one gourde of internal revenue, by districts and months,
1925-26 ................................... ... .... .... .......... 117
15. Classification of personnel.......................................... 118
16. Emigration statistics................................................ 119





STATISTICAL EXHIBITS vII

PAGE
17. Receipts from foreigners' occupational tax, 1925-26 .................... 123
18. Public land rentals, 1925-26 ......................................... 123
19. Value of sales and mortgages of real property, 1925-26 ................. 125
20. Consular fees accruing to the state, 1924-25 and 1925-26............... 126
21. Receipts from steamship passage tax, by ports, 1925-26................ 126
22. Receipts from steamship passage tax, by months, 1925-26 ............... 127
23. Receipts from irrigation taxes, 1925-26.............................. 127

APPENDIX: SCHEDULES
1. Quantity and value of imports into Haiti, by countries of origin, October,
1925-September, 1926 .................. .........................131-155
2. Quantity and value of exports from Haiti, by countries of destination,
October, 1925-September, 1926................................... 156-160
3. Customs receipts, by sources, ports and months, 1925-26 ............. 161-164
4. Internal revenue receipts, by sources, districts and months, 1925-26...... 165-172























HAITI


ANNUAL REPORT OF THE FINANCIAL ADVISER-
GENERAL RECEIVER FOR THE FISCAL YEAR
OCTOBER, 1925-SEPTEMBER, 1926











HAITI

ANNUAL REPORT OF THE FINANCIAL ADVISER-GENERAL
RECEIVER FOR THE FISCAL YEAR OCTOBER, 1925-
SEPTEMBER, 1926


OFFICE OF THE FINANCIAL ADVISER-GENERAL RECEIVER,
Port-au-Prince, Haiti, December 81, 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 tenth annual report of
the commerce and finances of Haiti, which summarizes and extends the
monthly reports stipulated in article 7 of the treaty of September 16, 1915,
between the United States and the Republic of Haiti.
No fiscal year since the conclusion of the treaty has been so generally
satisfactory as 1925-26. Unmistakable progress was made in commercial
and financial development, but of more importance was the equally pro-
nounced progress in social amelioration. There is strong probability that
in 1925-26 a peak was reached in Haitian financial administration which
will not again be equaled for several years. All contributing factors were
favorable toward making the fiscal year 1925-26 an unqualified success from
the financial point of view, but prospects for immediately following years
are not correspondingly brilliant.

IMPORTS
Foreign commerce from October 1, 1925, to September 30, 1926, had a
value of Gdes. 195,177,055.1 This roughly equaled but was slightly inferior
to the total of Gdes. 198,206,635 which was attained in the previous fiscal
year. Imports were valued at Gdes. 94,257,030, a decline of Gdes. 6,930,795
or 6.85 per cent from the level of the previous year. This decline may
largely be attributed to two facts. During the latter portion of 1924-25
numerous importers were of the opinion that a new customs tariff would
come into force on the first day of the succeeding fiscal year. Accordingly,
I 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 five gourdes for one dollar
(United States currency). Accordingly, the value of Haitian currency, as measured in dollars,
does not fluctuate.





2 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

they placed large orders for such merchandise as they supposed would be
more heavily taxed under the new import schedules. This merchandise was
delivered during the final months of 1924-25 and was considerably in excess
of normal consumptive requirements. As a result, inventories were exces-
sive, and considerable recession occurred in placing further orders.
In the second place, price levels of several principal articles of import
declined moderately during 1925-26, this being reflected in smaller values
although the volume of imported merchandise was equivalent to that of the
previous year. No disappointment need be felt over the fact that Haiti
was called upon to make smaller disbursements abroad to obtain equal or
greater quantities of merchandise than were imported in previous years.
On the whole, price levels remained reasonably stable, though with a
declining tendency, and there was thus no incentive toward speculative
purchases of merchandise and toward inflation of inventories. As a result
of the painful lesson from the abortive attempt to anticipate the revised
customs tariff at the close of 1924-25, equally extensive attempts were not
repeated during the summer of 1926, when the new tariff regime actually
became effective.
EXPORTS
As a result of a bumper coffee crop, the value of exports in 1925-26
was Gdes. 100,920,025, an increase of Gdes. 3,901,215, or 4.02 per cent
over the previous year. While it is permissible to take a certain degree of
satisfaction in this return, there would have been far more cause for grati-
fication if greater diversity had developed in the export trade. The
increase in export values, as noted above, proceeded exclusively from an
abnormally large coffee crop, and repetition of the yield or prices of 1925-26
cannot be expected in the immediate future. In fact, as the volume
and price of coffee recedes toward more normal levels, not only will smaller
export totals be reported, but the value of imports into Haiti will undoubt-
edly be correspondingly affected through restricted purchasing power.
It is disappointing to have to report that no definite progress was made
during 1925-26 toward removing Haiti from its dangerous situation as a
"one crop country."
BALANCE OF TRADE
As general features of Haitian commercial and financial life under-
went no decided changes in 1925-26, it is apparent that the balance of
payments, as well as the balance of trade, was in favor of Haiti. In addi-
tion to the debit and credit items due to export and import operations,
there are credits of considerable importance arising from remittances from
Haitian emigrants to Cuba and by savings brought to Haiti by returning
emigrants. Furthermore, expenditures of the American forces in Haiti
are substantial and are not offset by corresponding debits in international
account.





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 3

Foreign investments in Haiti are not large, and few Haitians live
abroad except emigrant laborers. On the other hand, Haiti possesses no
merchant marine, with the result that freights on both imports and exports
are payable to foreign shipping companies, thus constituting an interna-
tional debit of some magnitude. But customs statistics are computed to
show values of imports laid down in Haiti, prior to payment of customs
duties. Such values therefore include all amounts which have been paid
for maritime freight, insurance and other incidental charges. Export sta-
tistics represent the value of Haitian products aboard vessels destined for
foreign ports, after payment of such export duties as are in effect. There-
fore net purchasing power derived from the sale of exports is reflected.
Such export value represents both the sums which accrue to the govern-
ment in the form of export taxes and to exporters in the form of net prices
from the sale of Haitian products.
In short, items which form part of the invisible balance of trade in the
case of certain other countries are reflected in the computed values of
Haitian imports and exports. As the visible balance of trade was in favor
of Haiti and as invisible debits were certainly inferior to invisible credits,
the total balance of payments was decidedly in favor of Haiti. This is a
continuance and accentuation of the trend of the two previous years. With-
out question this credit balance contributed toward the marked improve-
ments in the standard of living of the Haitian population which occurred
in the fiscal year under review. Increased- welfare has taken the form of
more adequate food, larger per capital consumption of clothing and more
extensive purchases of comforts and luxuries. Housing arrangements were
also improved, this being one of the principal evidences of advancing wel-
fare as well as one of the principal uses of increased purchasing power.
Though the balance of international payments was in favor of Haiti,
too much importance should not be ascribed to this factor in explaining
the improving standard of living of the Haitian population. Undoubtedly
the principal contributing factor was increased production of useful com-
modities which at no time appeared in the international balance sheet.
Indeed enhanced welfare could have characterized the year 1925-26 even
if the balance of payments had been adverse. Better housing, better cloth-
ing and better food, all of which are to a greater or less extent attainable
without resort to foreign commerce, constitute the basis of improved stand-
ards of living. It is a common economic fallacy that foreign trade and
national welfare are brought into too close a causal relationship.
In spite of the fact that the balance df payments during 1925-26 must
be regarded with satisfaction, there is every reason to desire that such credit
balance may be further expanded. Under present conditions, with labor
inadequately employed and many national resources unutilized, sound
public policy dictates an aggressive policy of increased national production.
In the first stages of this process, imports would probably exceed exports,





4 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

as Haitian resources can be speedily developed only with the assistance of
foreign capital. Imports of capital initially appear as imports of machinery
and supplies and tend toward an adverse commercial balance. This stage
in the cycle of foreign investments is later succeeded by an excess of exports
over imports, as and when foreign investments begin to make a return to
their owners in the form of interest or dividends. The ultimate stage is
when the nationals of the country in which foreign investments have been
placed gradually repurchase the equities within their own country, again
tending to diminish the export balances which must be forwarded to cover
interest and dividend disbursement for foreign account.
Table No. 1 reflects the general features of Haitian foreign commerce
from 1916-17 to 1925-26. With the exception of those years during which
commerce was disturbed by war influences, it is evident that close adjust-

TABLE No. 1
VALUE OF IMPORTS AND EXPORTS, AND EXCESS OF IMPORTS OR EXPORTS
FISCAL YEARS 1916-17 TO 1925-26

Year Imports Exports Excess imports Excess exports

Gourdes Gourdes Gourdes Gourdes
1916-17 .................. 43,030,428 44,664,428 ................... 1,634,000
1917-18................... 50,903,468 88,717,650 12,185,818 ...................
1918-19.................. 85,588,041 123,811,096 .................... 38,223,055
1919-20 .................. 136,912,055 108,104,639 28.887,416 ....................
1920-21 .................. 59,786,029 32,952.045 26,83,984 ...................
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 ..................
1925-26................... 94,257,030 100,920,025 ................... 6,662,995
Total................ 777,766,686 743,686,413 82,865.568 48,685,295


ment exists between imports and exports of merchandise. During the last
four years, or subsequent to the termination of most war and post-war
adjustments, imports have almost exactly equalled exports, the latter being
fractionally superior.
In spite of the fact that it would be most desirable to increase produc-
tion of export commodities, there is no evidence that either imports are
expanding more rapidly than exports or vice versa. Apparently both ele-
ments of foreign commerce are in unusually stable equilibrium.

ORIGIN OF IMPORTS

Imports into Haiti proceed in large measure from the United States.
Though the percentage of Haitian imports supplied by that country has
shown a declining tendency for several years, the United States still
accounts for some three-quarters of the total. In Table No. 2 statistics are
assembled which show the distribution of Haitian imports. So outstand-
ing is the dominance of the United States that the second country, France,





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


furnished but 7.27 per cent of total imports during 1925-26. Great Britain
was the only other country which supplied as much as five per cent.
As the percentage of imports supplied by the United States declined
during 1925-26 it follows that other countries increased their participa-

TABLE No. 2
VALUE OF IMPORTS, SHOWING COUNTRIES OF ORIGIN, IN PERCENTAGES
FISCAL YEARS 1916-17 TO 1925-26

Average Average
Country of origin 1916-17- 1921-22 1922-23 1923-24 1924-25 1925-26 1916-17-
1920-21 1925-26

Per cent Per cent Per cent Per cent Per cent Per cent Per cent
United States............. 87.09 83.87 81.40 80.41 76.93 74.22 83.23
France .................... 4.71 5.21 4.65 6.02 6.72 7.27 5.34
United Kingdom........... 5.85 6.18 7.84 6.70 8.52 7.24 6.57
BahamaIslands............ .04 .02 .01 .02
Belgium .................... .01 .02 .13 .60
Canal Zone................. .04 .08 .23 .22
Cuba ....................... .06 .03 .04 .05
Curacao..................... .25 .28 .37 .70
Denmark ................... .18 .43 .29 .29
Dominican Republic ..... .96 1.06 .36 .47
Germany ....... ........ 2.85 4.74 2.62 3.05 3.97 4.63 4.86
Italy ....................... .87 .45 .65 1.42
Jamaica.................... .10 .07 .05 .07
Netherlands................ .79 1.06 1.32 2.10
Porto Rico ................. .05 .02 .20 .32
Switzerland ................ .11 .03 .03 .03
Virgin Islands.............. .43 .18 .02 .01
All other.................... .10 .09 .16 .34
Total.................. 100.00 100.00 100.00 100.00 100.00 100.00 100.00


tion. This was true of France, Belgium, Curagao, the Dominican Republic,
Germany, Italy, the Netherlands, and Porto Rico. The only country of
importance, in addition to the United States, which showed a declining
percentage, was Great Britain.
Geographical considerations undoubtedly dictate that Haiti will con-
tinue to obtain its principal requirements from the American market. Yet
there is no reason to believe that the present high degree of concentration
will indefinitely continue. There is an unmistakable trend toward wider
distribution of sources of supply for the Haitian trade.

DESTINATION OF EXPORTS

High concentration also characterizes Haitian exports. Some two-
thirds of such exports find their market in France, though an indetermin-
able portion which is classified as sold in France is later transshipped to
other European countries. This is because Havre has for many years been
the clearing house for the Haitian coffee ciop.
During 1925-26, the proportion of Haitian exports purchased by France
increased from the previous year, and there is no apparent tendency toward
decentralization of exports, a phenomenon which is gradually taking place
in imports. Other countries which purchased a larger percentage of
Haitian products during 1925-26 than in the previous year were the United





6 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

Kingdom, Belgium, Denmark, Italy, Norway, Porto Rico, Spain and
Sweden. Countries which showed moderate declines were Canada, Ger-
many and the Netherlands. Very sharp declines characterized the propor-
tion of Haitian exports marketed in the United States and Cuba. The
percentage of total exports sold in the United States was 11.95 in 1924-25,
and this declined to 6.82 in 1925-26. Haitian products which are exported
to the United States consist largely of logwood and cacao. During the last
fiscal year total exports somewhat increased, whereas the value of logwood
declined. Consequently, this sharply affected the percentage of total ex-
ports marketed in the United States.
As in the case of imports, less concentration of exports may be expected
over a series of years. This result will occur by reason of natural causes,
but efforts should be exerted to obtain new outlets for Haitian commodi-
ties. No country is in a sound economic position if its prosperity is
dependent upon conditions in a single foreign country. World wide condi-
tions of prosperity on the one hand or of depression on the other affect all
countries, though to different degrees. But for Haiti to be as closely
dependent upon conditions in France as is now the case can only be
regarded as a source of economic weakness.
Exports from Haiti, classified according to countries of destination,
appear in Table No. 3. The situation there presented must be regarded as
badly balanced. Statistics have also been prepared showing combined im-

TABLE No. 3
VALUE OF EXPORTS, SHOWING COUNTRIES OF DESTINATION, IN PERCENTAGES
FISCAL YEARS 1916-17 TO 1925-26

Average Average
Country of destination 1916-17- 1921-22 1922-23 1928-24 1924-25 1925-26 1916-17-
1920-21 1925-26

Per cent Per cent Per cent PePer center cent Per cent Per cent
United States.............. 52.85 13.44 13.55 9.88 11.95 6.82 81.94
France..................... 85.98 56.18 60.58 66.10 63.45 65.82 49.15
United Kingdom........... 1.45 5.50 4.95 5.10 2.86 3.29 2.90
Barbados................... .20 .86 ..................
Belgium.................... 6.18 3.59 3.62 5.25
Canada .................... ..... .......... 1.05 .80
Canal Zone ................ .08 .0 .18 .22
Cuba........................ 1.57 .26 .57 .03
Denmark................... 4.84 5.98 6.74 7.99
Dominican Republic .... .07 .05 .06 .08
Germany.................. 9.72 24.88 4.70 4.60 2.74 2.44 16.01
Italy ........................ 2.77 2.07 1.86 2.25
Netherlands................ 1.60 1.59 8.12 2.67
Norway .................... .03 .19 .58 1.23
Porto Rico................. .12 .06 .10 .16
Spain....................... .01 .17 .46 .89
Sweden..................... .08 .02 .43 .47
All other................... .17 .45 .23 .14
100.00 100.00 100.00 100.00 100.00 100.00 100.00

ports and exports by countries of origin and of destination, respectively.
These are presented in Table No. 4. While the United States is still the
leader, that country now accounts for some two per cent more of total




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 7

imports and exports than is the case for France, whereas in 1925-26 the
United States controlled 45.12 per cent of Haitian foreign commerce, com-
pared with 34.48 per cent in the case of France. Over a series of years
there has been a definite tendency for the proportion of total trade with the
United States to decline and with France to increase. This is emphasized
by the fact that the average from 1916-17 to 1925-26 was 59.09 per cent
for the United States, compared with 39.47 per cent in 1925-26. Similar
percentages for France were 26.12 for the ten-year average and 37.31 for
the last fiscal year. If the present tendency continues, the year 1926-27
will return France as the principal factor in the commercial life of Haiti.

TABLE No. 4
VALUE OF TOTAL FOREIGN COMMERCE, BY COUNTRIES, IN PERCENTAGES
FISCAL YEARS 1916-17 TO 1925-26

Average Average
Country 1916-17- 1921-22 1922-23 1923-24 1924-25 1925-26 1916-17-
1920-21 1925-26

Percent Percent Percent Percent Percent Percent Percent
United States .............. 72.53 51.12 46.97 45.53 45.12 89.47 59.09
France..................... 18.89 28.88 83.04 35.52 34.48 87.31 26.12
United Kingdom........... 4.03 5.86 6.37 5.92 5.75 5.20 4.92
Bahama Islands.......... .03 .02 .01 .02
Barbados................... .13 .18 ....
Belgium................... 2.63 1.77 1.84 8.01
Canada.................... .01 .18 .52 .48
CanalZone ................ .06 .06 .20 .28
Cuba...................... .84 .14 .30 .04
Curacao .................... .11 .15 .23 .89
Denmark................... 2.26 8.15 3.45 4.28
Dominican Republic....... .51 .56 .22 .24
oermany................... 8.69 3.81 8.87 8.50
Germany................... 5.05 14.14 1.99 1.8 1.2 1.67 9.87
Italy.................. 1.59 1.25 1.25 1.67
Jamaica................. .05 .04 .03 .03
Netherlands ............... 1.21 1.32 2.21 2.88
Norway.................... .02 .09 .80 .64
Porto Rico..................09 .04 .15 .23
Spain........................ .01 .11 .27 .52
Sweden................... .04 .01 .21 .24
Switzerland .............. .05 .05 .04 .02
Virgin Islands............. .21 .09 .01
All other................... .08 .01 .04 .10
Total................. 100.00 100.00 100.00 100.00 100.00 100.00 100.00


As the United States and France controlled three-quarters of Haitian
foreign commerce, the participation of other countries was not of great
importance. Those which accounted for more than one per cent were, in
order, Great Britain, Denmark, Germany, Belgium, the Netherlands and
Italy.
In Table No. 5, not only are percentages of imports and exports shown,
classified according to countries of origin and destination, but the monetary
equivalents of such percentages are also presented. The outstanding fea-
ture of this statistical exhibit is the dominance of the United States in the
import trade of Haiti and the preponderance of France in the export trade,
the latter merely being somewhat less pronounced.





8 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


TABLE No. 5

VALUE AND PERCENTAGE OF VALUE OF IMPORTS, EXPORTS, AND TOTAL FOREIGN
COMMERCE, BY COUNTRIES, FISCAL YEAR 1925-26


Country Imports Exports Total

Gourdes Per cent Gourdes Per cent Gourdes Per cent
Austria ...................... 3.290 ............ ............ ............ 3,290
BahamaIslands............... 22,235 .02 15,085 .01 87,320 .02
Belgium.... ................ 564,425 .60 5,304,615 5.25 5,869,040 3.01
Canada..................... 123.250 .13 809.500 .80 932,750 .48
CanalZone.................... 220,955 .22 220,030 .22 440,985 .23
China ........................ 4,220 .................................. 4,220 ...........
Cuba .......................... 54,325 .05 21,565 .03 78,890 .04
Curaao ..................... 661,250 .70 98,450 .10 759,700 .39
Czechoslovakia ............... 54,550 .05 ............ ............ 54.550 .03
Denmark..................... 275,930 .29 8,069,805 7.99 8,345,735 4.28
Dominican Republic.......... 441,405 .47 25,760 .03 467,165 .24
Ecuador ..................... 4,870 .................................. 4,870 ..........
Egypt ............ .......... 145 ........... ........................ 145 ..........
Finland ............. ............................... 8,720 ............ 8,720 ..........
France ....................... 6,888,910 7.27 65,931,830 65.32 72,820,740 37.31
French Africa ................. 20 ............ 13,430 .01 13,450 .01
French Guiana ................ 15 ............ ............ ............ 15 ..........
FrenchIndo-China ............ 10 ........................ 1.......... 10 ...
Germany..................... 4,366,245 4.63 2,467,635 2.44 6,833,880 3.50
Hungary ...5 ................. 15 ...................... 15 ........... 135
Italy....................... 982,550 1.42 2,279,280 2.25 8,261.830 1.67
Jamaica...................... 65,120 .07 975 ............ 66.095 .03
Japan ........................ 43,630 .04 6,010 ............ 49,640 .03
Madeira Islands............... 1,795 .................................. 1.795 ...........
Martinique.............. ............ ............ 18,005 .02 18,005 .01
M exico ........... ..... .... 25 ........ .... ........... ........ ... 25 .........
Netherlands.................. 2,006,350 2.10 2,652,690 2.67 4,659,040 2.39
Norway ...................... 6,585 ............ 1,241,420 1.23 1,248,005 .64
Palestine...................... 70 ...................... ....... ..... 70 ..........
Peru........................... 3,825 ............ ........................ 3,225 .........
Porto Rico.................. 295,825 .82 164,485 .16 460,310 .24
Russia......................... 15 ....................... ..........15.......... 15
Spain ...................... 118,830 .12 903,675 .89 1,022,505 .52
Sweden........................ 280 ............ 475,035 .47 475,315 .24
Switzerland .................. 35,045 .03 10 ............ 35,055 .02
Syria.............. ..... .... 95 ............ .. .......... ............. 95
ited indom............ 6,845,045 7.24 3,299,555 8.29 10,144,600 5.20
United States .............. 70,150,790 74.22 6,888,885 6.82 77,039,625 39.47
Trinidad ..................... 6,000 ........... ............ ........... 6,000 ..........
Venezuela.... ........ ........................ 625 ............ 625 ..........
Virgin Islands ............... 9,470 .01 ............ ............ 9,470 ...........
94,257,030 100.00 100,920,025 100.00 195,177.055 100.00



PORTS OF ENTRY OF IMPORTS

As many classes of foodstuffs, practically all clothing and ordinary
comforts and luxuries of the Haitian population are imported, the extent
of imports in each district rather accurately measures the relative pros-
perity of that district. Material for such an analysis is assembled in Table
No. 6.
During 1925-26 total imports somewhat declined from the level of the
previous year, largely due to surplus stocks which were accumulated at the
end of 1924-25 and distributed to ultimate consumers during the following
fiscal year. Of secondary importance was a moderate decline in the price
level, thereby permitting equal or greater volumes of merchandise to be pur-
chased with less expenditure of money. Accordingly, the import trade as
a whole may be considered as roughly equivalent to that of the previous
year, but the distribution, both geographically and as to commodities, un-




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 9

derwent considerable alteration. For example, the steamship lines decided
to omit Aquin as a port of call, with the result that imports virtually
ceased. Those ports which approximately maintained their previous posi-
tion were Cap-Haitien, Gonaives, Jacmel, Miragoane, Ouanaminthe and
St-Marc. Cayes, Petit-Goave and Port-au-Prince suffered a greater decline
in imports than that which characterized such trade as a whole. In the
case of Cayes, emigration was undoubtedly the cause. As to Port-au-Prince,
the decrease can largely be attributed to overstocking of merchandise at
the close of the previous year, as such surplus stocks were largely concen-
trated at the capital.
TABLE No. 6
VALUE OF IMPORTS, BY PORTS OF ENTRY, FISCAL YEARS 1916-17 TO 1925-26

Average Average
Port of entry 1916-17 1921-22 1922-23 1923-24 1924-25 1925-26 1916-17-
-1920-21 1925-26

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Aquin ........... 156,514 790 46,005 289,810 260.620 4,900 138,470
ellad re................ ............ 605 2,065 1,325 28,415 3,241
Cap-Haitien .... 9,987,651 7.321,065 7,600,360 7,630,340 9,779,755 9,133,525 9,140,330
Cayes............ 6,443,055 4,373,525 6,447,030 8,494,785 9,561,205 8,324,560 6,941,638
Fort Libert6..... 257 1,125 1,085 880 ........................ 438
Glore................... .......... 57,915 99,110 96,995 153,815 40,784
Gonalves........ 3,922.744 3,637,565 3,416,765 3,286,855 4,320,425 3.992,775 3,827,411
Jamel .......... 3,457,767 3,000.005 4,465.095 4,533,280 6,835,830 6,188,200 4.181,125
J6remie......... 1,942,796 829.695 1,177,630 1,862,780 1,950,200 2,579.320 1,761,854
Miragodne........ 518,426 752,890 1,029,310 930,490 1,110,265 957,895 737,298
Ouanaminthe... 27.035 139,285 507,940 545,540 113,050 129,265 157,025
Petit-Goave...... 2,674,944 1,025,645 1,465,705 1,648,995 3,471,400 2,795,930 2,878,239
Port-au-Prince.. 41,712,019 86,751.465 40,611,930 39,904,450 58,422,670 53,754,525 43,800,513
Port-de-Paix..... 2.087,026 1,686,240 1,548,620 1,654,995 2,399,755 3,006,280 2.073,102
Saint Marc ...... 2,329,771 2,232,060 2,413,820 3,096,325 3,358,330 3,207,625 2,595,701
Total ........ 75,260,005 61,751,355 70,789,815 73,480,640 101,187,825 94,257,030 77,776,669


A more pleasant picture is presented by the commerce at BelladBre,
Glore, Jer6mie and Port-de-Paix. Traffic across the border with the
Dominican Republic is gradually increasing, explaining the activity at
Belladere and Glore, whereas Jer6mie and Port-de-Paix exhibited a grati-
fying development of commerce during 1925-26. For J6r6mie, this pro-
ceeded from an excellent coffee crop and from improved prices for cacao.
In the case of Port-de-Paix no one cause can explain the increase, general
expansion of activity being evident. Moreover,, returning emigrants intro-
duced additional purchasing power into the Port-de-Paix district.

POQTS OF EMBARKATION FOR EXPORTS

Haiti is primarily an agricultural country. Therefore export statistics,
classified according to ports of embarkation, chiefly reflect the condition
of agriculture in the several districts of the republic. Such data appear
in Table No. 7.
As the total of export values increased, each of the ports should have
shown expanded export values, if its relative position had been maintained.
Considerable variation, however, occurred. Aquin, Cayes, Glore, Gonaives,




10 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

Miragoane, Port-au-Prince and St-Marc all showed smaller exports than in
the previous year. Cayes was adversely affected by the departure of a large
fraction of its productive population for the cane fields of Cuba, and Gon-
aives, Port-au-Prince and St-Marc were affected by the low price of cotton
and sugar.
On the other hand, exports from Cap-Haitien, Jacmel, J6r6mie, Petit-
Goave and Port-de-Paix increased, these increases more than counterbal-
ancing the losses at the other ports. Of particular significance was an ex-
pansion of exports of more than 100 per cent in the case of Jer6mie, due
largely to the fact that products from that region are now directly exported
to foreign countries, whereas formerly they were shipped coastwise to other
ports and therefore appeared in the export statistics of the latter.

TABLE No. 7
VALUE OF EXPORTS, BY PORTS OF SHIPMENT, FISCAL YEARS 1916-17 TO 1925-26

Port of Average Average
shi nt 1916-17- 1921-22 1922-23 1923-24 1924-25 1925-26 1916-17-
shpment 1920-21 19Z5-26

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
quin ........... 517,420 409,470 1,214,755 1,516,610 1,633,455 1,496,005 885,740
Belad re ........ ... .. .......................... 26
Cap-Haitien .... 10,601,902 7,016,280 8,860,835 6,953,290 11,764,710 14,876,545 10,198,117
Cayes............ 4.543,658 8,895,805 6,485,915 7,249,835 9,182,855 6,446,815 5,597,902
Fort Libert6..... 823,746 7,780 802,505 .............................. 192,902
Glore ................................. 22,255 17,740 10,670 4,410 5,507
Gonalves........ 4,934,835 4.189,240 5,860,60 6,448,700 8,825,055 7,770,470 5,776.860
Jacmel .......... 8,416,717 6,618,875 9,172,710 8,426,455 12,487,370 14,419,785 9,828,878
J6romle ......... 8,350,833 1,196,005 1,604,425 2,803,505 8,515,815 7,510,280 3.288,169
Miragoane ...... 1,009,265 862,785 1,993.345 1,714,615 2,471,460 2,814,775 1,440,325
Ouanaminthe ... 9,015 2,145 5,350 14,020 7,745 7,160 8,149
Petit-GoAve ..... 4.167,273 4,580.615 9,421.125 7 625 13,059,880 14,175,060 7,002,317
Port-au-Prince.. 23,557,718 17,840,805 18,609,045 17,464,075 21,055,790 18,571,020 21,182.930
Port-de-Paix..... 8, 030 2.268,255 3,464,500 4,026,665 4,756.695 6,489,605 8,994,587
Saint Marc...... 4,40,065 4,648,040 6,437,100 6,795,975 8,247,785 6.838,095 5,511,232
Total........ 69,649,972 58,561,050 72,955,060 70,881,610 97,018,810 100,920,025 74,358,641


Comparing the results of 1925-26 with those of the ten year average,
it is found that normal expansion occurred in the case of Aquin, Cap-
Haitien, Cayes, Gonalves and St-Marc. Exports from Port-au-Prince dur-
ing 1925-26 were actually lower than for the ten year average, while the
districts of Jacmel, Jeremie, Petit-Goave and Port-de-Paix were those in
which unusual expansion occurred.
Imports and exports, classified according to ports of entry and embar-
kation, respectively, are combined in Table No. 8. During 1925-26 the ports
of most importance for imports, in order, were Port-au-Prince, Cap-Hai-
tien, Cayes and Jacmel. Only these ports purchased as much as five per
cent of the total. For exports, the corresponding order was Port-au-Prince,
Cap-Haitien, Jacmel, Petit-Goave, Gonaives, Jer6mie, St-Marc, Port-de-
Paix and Cayes. Each of these ports shipped as much as five per cent of
total exports from Haiti. Combining the foregoing percentages, it is found
that Port-au-Prince was responsible for 37.06 per cent of total foreign com-
merce, the next ports, in order, being Cap-Haitien, Jacmel, Petit-Goave,





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 11

Cayes, Gonaives, J6r6mie and St-Mare. There was a tendency during the
year under review toward more even distribution of commerce among the
several ports, Port-au-Prince declining in importance, whereas most of the
other ports, except Cayes, improved their relative position.

TABLE No. 8
VALUE AND PERCENTAGE OF VALUE OF IMPORTS, EXPORTS, AND TOTAL FOREIGN
COMMERCE, BY PORTS, FISCAL YEAR 1925-26

Port Import Export Total

Gourdes Per cent Gourdes Per cent Gourdes Per cent
Aduin.......................... 4,900 0.01 1,496,005 1.48 1,500,905 .77
ellad re..................... 28415 .03 .............. ........ 28,415 .01
Cap-Haltien............... ... 9,133,525 9.69 14,876,545 14.74 24,010,070 12.30
Cayes.......................... 8,824,560 8.83 6,446,815 6.89 14.771,375 7.57
Glore............... ........... 153,815 .16 4.410 ......... 158,225 .08
Gonalves ...................... ,92,775 4.22 7,770,470 7.70 11,768,245 6.03
Jacmel........................ 6,188,200 6.57 14,419,785 14.29 20,607,985 10.56
JArdmie...................... 2,579,820 2.74 7,510,280 7.44 10,089,600 5.17
MiragoAne .................... 957895 1.02 2,814,775 2.80 8,272,670 1.68
Ouanaminthe.................. 19,265 .14 7,160 .01 186,425 .07
Petit-Goave.................... 2,795,930 2.97 14,175060 14.04 16,970 990 8.69
Port-au-Prince................. 53,754,525 57.03 18,571,020 18.40 72,325.545 37.06
Port-de-Paix.................. ,006,280 8.19 6,489,605 6.43 9,495,885 4.86
Saint Marc.................... ,207,625 3.40 6.838,095 6.78 10,045,720 5.15
Total .................. 94 257,030 100.00 100,920,025 100.00 195,177,055 100.00


SHIPPING

Haiti was adequately served by commercial vessels during 1925-26.
There was no shortage of cargo space, either for imports or exports, but
passenger accommodations were not altogether satisfactory. Even for
freight, though facilities are adequate, tariffs are extremely high, thus
tending to limit the movement of traffic.
Convincing evidence of the active commercial life of Haiti during
1925-26 may be derived from the statistics of steam vessels which entered
and cleared during that year. Such data may be found in Table No. 9.
The total number of such vessels was 565, with net tonnage of 1,123,486.
This compared with 503 vessels which touched Haitian ports during the
previous year, with a tonnage of 912,756. Thus the cargo space available
for freight to and from Haiti was considerably increased over previous
years.
As to the distribution of shipping engaged in foreign commerce, both
the number and tonnage of American, Dutch, French and German vessels,
as well as those under miscellaneous flags, increased, the only decrease occur-
ring in the case of British vessels, in which the number decreased but the
tonnage showed enlargement.
For sailing vessels, the declining tonnage indicated in the year 1924-25
was checked, entrances in Haitian ports during 1925-26 amounting to
30,883 tons and the number of vessels reaching 169 as shown in Table No.
10. This was an improvement in both number and tonnage over the










TABLE No. 9

NET TONNAGE OF STEAM VESSELS IN FOREIGN COMMERCE ENTERED AND CLEARED, BY REGISTRY AND MONTIIS, FISCAL YEAR 1925-26
Steam Vessels Entered


American British Dutch French German All other Total
Month
No. Tonnage No. Tonnage No. Tonnage No. Tonnage No. Tonnage No. Tonnage No. Tonnage

October, 1925............... 13 46."' 5 *' 10 12,062 8 8,58 4 6,505 7 6,746 42 83,569
November................. 18 ;.1,37 6 1 1 1 1,362 4 0,897 2 ,859 10 7,655 46 95,809
December ................... 15 52,672 4 ),O0 12 12,805 2 4,997 3 5,908 12 9,926 48 88838
January, 1926............... 13 t.i 6 15,301 8 8,165 6.901 2 8,59 7 8,087 89 103060
February................... 12 i;4 .1 3 20,620 9 9, 2 6.562 3 4,88 8 '"+ 37 92859
March.................... 12 I.\,l 9 20,776 10 12,029 4 8,059 1,938 11t u.: 47 101,478
April ....................... 14 56,371 6 5,085 11 13,77 5 16,345 4 5,901 8 (*,' 48 107,377
May ....................... 13 56,723 7 5,814 11 12,850 2 6,974 8 5,644 9 7,797 45 94,802
June........................ 12 45,275 9 5,257 10 11,851 3 7.146 3 5,185 17 10.597 54 84,811
July ....................... 14 50,958 6 4,048 13 15,863 3 6,273 3 5,931 17 12,078 56 94,646
August.................... 13 50,781 5 8,26 10 10,357 7,613 4 7,126 14 9,875 49 89,020
September................. 12 4,200 7 4,068 11 12,386 4 10,06 6,754 1 11,281 54 87,72
Total................. 156 612,978 78 96,928 126 140,787 38 100,326 87 62,943 155 109,579 565 1,12,486


Steam Vessels Cleared

October, 1925............... 13 4868 5 2,852 10 12,062 3 8,58 4 6,505 7 6,746 42 83,569
November................ 13 4,727 6 7,09 11 11,62 4 10,87 2 ,859 10 7, 46 95,809
December.................. 15 52,672 4 8,030 12 12,805 2 4,997 3 5,908 12 9,926 48 88,838
January, 1926............... 13 60,747 6 15,301 8 8,165 8 6,1 2 8,859 6 5,738 88 100,706
February .................. 12 45,510 8 20,620 9 9,00 2 6,522 8 438 9 8,423 38 94,713
March...................... 12 49,146 9 e.7.i 10 12.029 4 8,059 1 1933 11 9,530 47 101,473
April..................... 14 56,371 6 5.,"*' 11 13,737 5 16,345 4 5,901 8 9988 48 107,77
lay ....................... 13 56,723 7 5,314 11 12,350 2 6974 3 5,644 9 7,797 45 94,802
June...................... 12 45,275 9 5,257 10 11,851 3 7,146 3 5,185 17 I .* 54 84,811
July...................... 14 -i 6 4,048 13 15,63 3 6273 5,931 17 1:., 56 94,646
August.................... 1 ... 5 8,268 10 10,857 3 7.613 4 7,126 13 '*.1J 48 88,247
September.................. 12 6 ,* 6 8,051 11 12,356 4 10,063 4 5,487 16 12,054 58 86,161
Total.................. 156 612,97 72 95,911 126 140,737 88 100,326 86 61,626 135 109,579 563 1,121,152


0
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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


previous year. However, sailing vessels are suitable for only such com-
modities as lumber, petroleum products in cases or drums and similar bulk
cargo. There is no reason to expect that the tonnage of sailing vessels
will appreciably increase in the future.

TABLE No. 10
NET TONNAGE OF SAILING VESSELS IN FOREIGN COMMERCE ENTERED AND CLEARED,
BY REGISTRY AND MONTHS, FISCAL YEAR 1925-26
Sailing Vessels Entered

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

October. 1925................. 5 2,962 50 4 166 1 1,262 16 4,440
November .................. 1 888 2 18 5 211 1 1.152 9 1.769
December................ ...... ....... 4 30 2 47 2 1,163 8 1.240
January, 1926........ ...... 2 1,428 4 32 2 93 ............. 8 1,55
February................. 2 2,100 5 110 3 69 2 2,636 12 4,915
March..................... 1 849 10 77 8 76 4 1,444 18 1,946
April ............... 2 1,288 13 96 4 171 5 2.45 24 8,990
May..................... .......1... .. 1 87 8 124 4 2,508 20 2,719
June ...................... 1,696 5 42 2 114 2 1,235 12 8,087
July..................... ..... .............. 6 47 .............. 8 1.286 9 1.283
August................................. 2 19 1 68 1 125 4 212
September. ............... 2 1,837 4 40 2 78 1 1,774 9 3,729
Total ................... 18 12.048 74 648 81 1,217 26 16.970 149 80,883

Sailing Vessels Cleared

October, 1925................ 5 2,962 6 50 4 166 .............. 15 8,178
November.................... 1 888 2 18 5 211 2 2,414 10 8,031
December............... .... ...... ........ 4 80 2 47 2 1,163 8 1.240
January, 1926.............. ............... 4 32 3 125 ............... 7 157
February.................... 3 2,058 R 115 8 69 1 1,774 12 4,016
March....................... 2 1,819 10 87 8 76 4 1,190 19 8,172
April...................... .. .... 18 96 4 171 5 2,553 22 2,820
May ................ ...... 1 542 18 87 3 124 4 2,256 21 3,009
June...................... 2 1,08 5 42 2 114 8 2.485 12 3,949
July......................... 1 888 6 47 .............. 2 271 9 706
August.................................... 2 19 1 68 2 1,090 5 1,177
September .................. 1 542 4 40 2 78 1 1,774 8 2,434
Total................... 16 10,007 74 668 32 1,249 26 16,970 148 28,889


Imports into Haiti, proceeding mostly from the United States, were
naturally transported in large measure in vessels of American registry, as
shown in Table No. 11. Out of total imports of Gdes. 94,257,030, almost
one-half or Gdes. 45,677,545 arrived under the American flag. This figure
was inferior to deliveries by American vessels in 1924-25 by a percentage
somewhat greater than the general decline in imports.
Second in importance in the carrying,trade for imports were vessels
of Dutch registry. American and Dutch vessels transported about four-
fifths of total Haitian imports. The only flags which increased their
deliveries to Haiti were the French and German. On the contrary, imports
delivered in British ships declined by approximately fifty per cent.
For exports, vessels under British, Danish, Dutch and French registry
showed an improved position. These data appear in Table No. 12. Exports









TABLE No. 11

VALUE OF IMPORTS, BY REGISTRY OF CARRYING VESSELS, FISCAL YEAR 1925-26

Mer- Merchan-
Country chandise dise sub- Nor- All Per
Country c dfe d t American British Danish Dutch French German Haitian or Total e
duty duty


Austria ......................
Bahama Islands................
Belgium......................
Canada.........................
Canal Zone....................
China........................
Cuba ....... ...................
Curacao........................
Czechoslovakia..........
Denmark......................
Dominican Republic...........
Ecuador .......................
Egypt.......................
France..... ............
French Africa.................
French Guiana ................
French Indo-Chna.............
Germany.....................
Hungary ......................
Italy .......................
Jamaica...... ............
Japan ......... ..........
Madeira Islands................
Mexico..........................
Netherlands..............
Norway ......... ........
Palestine....................
Peru ......... ..........
Porto Rico..................
Russia .....................
Spain.......................
Sweden........................
Switzerland..............
Syria ...... ................
United Kingdom.............
United States............ ......
Trinidad ......................
Virgin Islands.................

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


Gourdes


5,470

114,455


107,915

39,475
159,655


49,935



41,405
..........
680
38,745


6,745



110,775





132,(80
3,040,240
945


Gourdes
3,290
22,235
558,955
123,250
106,500
4,220
54,825
553,335
54,550
236,455
281,750
4,870
145
6,838,975
20
15
10
4,324,840
135
981,870
26,375
43,630
1,795
25
1,999605
6,585
70
8,325
185,050
15
118,830
280
35,045
95
6,722,965
67,110,550
6,000
8,525


Gourdes


20,575
99,135
220,955
2,265
85

5
134,075
1,145
4,870
5
403,450
10


121,495
............
614,105

43,140
......... .
10
2,465
1,075
8,325
... 41,
15
41,770

4,245
5
2,912,545
41,037,135
1,675
7,965


Gourdes

15,945
10,395
..........

805




..........
..........
7,835
..........





22,450
... .
..........
..........

..........

..... ....






235
4,325


Gourdes


2,015





1.970
10,025


...... ..





..........
..........



..........
66,895













8...0,6.


Gourdes
3,290

2,695
20,315
.............
540
1,060
410,080
45,985
44,885
700
............
15

194,295
10


2,102,980
135
278,000
10,865
5
1,795

1,995,830
1,535




4,795
250
11,940
60
2,254,485
24,707,230

1,505


Gourdes


16,345
3,800
..........
1,415
40,100

8,560
225
25,670

125
6,283,315
15

10
4,925

90,355
7,080
485
..........

800









470
56,705

18,830
30
66,235
470

.. .. .


Gourdes

..........
..........


3,050
251,170
..........
78,935
90,170
..........





2,020,145
..........



.........
24,725


7,255
38,975
..........
..........


Gourdes

4,490


...7,150..

..........


..........


.......... ..........
15,560 ..........
.......... ........
80 .......

994,640 ..........
.......... ..........


8,838,520 90,418,510 45,677,545 598,530 161,505 82,095,870 6,625,610 4,018,640


Gourdes
..........

..........
..........
..........
..........
..........
..........
15,840
..........

...... .. .




..........




..........









3,780,995
..........


..........
..........

..........


..........
..........

..........
..........


Gourdes
..........
1,800
..........



2,075
..........
..........
..........
313,695



..........

..........





,55











624,725
..........


11,640 3,846,635 1,221,555 94,257,030


Gourdes
8,290
22,235
564,425
123,250
220,955
4,220
54,825
661,250
54,&50
275,930
441,405
4,870
145
6,888,910
20
15
10
4,366,245
135
982,550
65,120
43,680
1,795
25
2,006,350
6,585
70
3.825
295,825
15
118,830
280
35,045
95
6,845,015
70,150,790
6.000
9,470


0.02
.60
.13
.22

.05
.70
.05
.29
.47


7.27
.........


4.63

1.42
.07
.04


2.10



.32
.........
.12

.03

7.24
74.22

.01

100.00


I
















TABLE No. 12

VALUE OF EXPORTS, BY REGISTRY OF CARRYING VESSELS, FISCAL YEAR 1925-26


Country



Bahama Islands...........
Belgium..................
Canada .................
Canal Zone................
Cuba......................
Curacao ...................
Denmark ...............
Dominican Republic......
Finland ..................
France.....................
French Africa.............
Germany ................
Italy.....................
Jamaica .................
Japan...................
Martinique.................
Netherlands............
Norway....................
Porto ico................
Spain....... ..........
Sweden....................
Switzerland ...............
United Kingdom...........
United States..............
Venezuela.. ..........

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


American


Gourdes

754,515

220,030
17,760

1,807,365


3,306,680

74 085
1,084,995
200
6,010

88,000
834,935

373,285
241,535
10
191,970
3,189,415


British


Danish


Dutch


French


German


Haitian


Norwegian


All Other


IT IB I I INoI I .I-


Gourdes
14.845
2,103,950
809,500



2,717,400
1,500

15,008,615

'78.670
46,925
............

5.... ,8

159,485
206.765
145,990

758,375


12,190,790 22,607,895


Gourdes
............

............
............

.... .. .
..... .


269,895


Gourdes
100
1,759,270
............

81,710

2,851,790
3,905

18,047,905
13,430
805,860
991,440
............
.........

2,115,700
160,185

288,145
59,960


Gourdes

275,915
............

6.805
120
376,030
8,285

22,012,145
63,945
35,110
............


44,020
27,770
29,985
85,480
8,720


Gourdes

410,965


........ ....
16.620
317,220
500
8,720
6,924,680

1,145,575
19,060
750

6,985
149,095
59,045
18 ......830
18,8W0


Gourdes
140
..............


..............
..............
..............

..............

..............
.............


..............
..............
..... .

..............
..............
..............
..............
..............


Gourdes
..............
..............


.. ........ ..
..,..... o......
.. .. ........ o ,
..............

119,260
..............

....... ...



............
........... .
........... .
..............

..............


796,000 70,655 66,970 755,585 ........................
85,500 2,985.675 ............ ............. .............. 628,245
.. ..... .. 625 ............ ........ .... ............. ...............


1,150,895 0,895,855 22,991,300 9,833,630


Gourdes
..............o
..o...........


..............
.............
11,570

243.150


101,750
25

4,555

......... ...


....... .......
..............

..............
.** o*** ** .. .


753,970 495,550


Total


Per


W
1o




cent


0
0.01
5.25 11
0.80 a
0.22
0.03 8
0.10
7.99
0.03

65.32
0.01
2.44
2.25



2.67 I
1.23 a
0.16 W

0.47

3.29
6.82


100.00
15


Gourdes
15,085
5,304,615
809,500
220,030
24.565
98,450
8,069,805
25,760
8,720
65,931,830
13,430
2,467,635
2,279,280
975
6,010
18,005
2,652,690
1,241,420
164,485
903,675
475,035
10
8,299,555
6,888,85
625


100,920,025


~- -- -


'''''''






''''''


III


I I i I 495, 5W





16 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

by British vessels increased by more than 100 per cent. As in 1924-25,
Dutch vessels transported the greatest proportion of Haitian merchandise,
with France in second place. But exports in American vessels, which
amounted to Gdes. 20,333,555 in 1924-25, declined to Gdes. 12,190,790 in
1925-26. Exports in German and Norwegian vessels also decreased mate-
rially.
As France absorbs the bulk of Haitian exports, the values transported
to that country are of principal importance. French vessels carried about
one-third of the total, only exceeding exports in Dutch vessels by some
Gdes. 4,000,000. The outstanding features of exports to France were the
sharp increase in commodities transported under the British flag and a
decline of more than fifty per cent of exports to France in vessels of Amer-
ican registry.

FOREIGN COMMERCE BY MONTHS AND BY PORTS
Seasonal tendencies in the import trade of Haiti were again accentu-
ated during 1925-26, as contrasted with the apparent trend toward equal-
ization of imports which characterized the previous fiscal year. October
and November showed import values considerably in excess of those of the
similar months of 1924-25. Undoubtedly this was the conclusion of the
abnormal import movement designed to anticipate the new customs tariff,
which at one time was expected to become effective on October 1, 1925.
Beginning with December, imports during each month were smaller than
in the preceding year, with the exception of the months of April, June
and July. At the close of the fiscal year, the decline in imports exceeded
that which could be explained by the normal fluctuations of commerce,
and unquestionably was discounting the smaller crop and lower price of
coffee expected in 1926-27.
Although periodicity characterizes the commerce of all of the important
Haitian ports, it is most marked at Cap-Haitien, Cayes, Jacmel, Jer6mie,
Miragohne, Petit-Goave and Port-de-Paix. Imports at Port-au-Prince tend
to be more stable in amount throughout the year, due to the influence of the
capital and to its less intimate dependence on agriculture. The rural pop-
ulation, on the other hand, tends to accumulate sufficient supplies during
the so-called "active season" to make continued purchases unnecessary dur-
ing the remainder of the fiscal year.
Distribution of the import trade by months and by ports of entry is
shown in Table No. 13. The last two columns of that table demonstrate
that the only two ports where imports materially exceeded those of the
previous fiscal year were J6r6mie and Port-de-Paix, whereas from moderate
to substantial declines occurred at the other ports, particularly Cayes, Petit-
Goave and Port-au-Prince.
Sharp seasonal fluctuations, as usual, characterized the export trade
of Haiti. Some three-fifths of Haitian products were exported during the

















TABLE No. 13

VALUE OF IMPORTS, BY bMO?'THS AND PORTS OF ENTRY, FISCAL YEAR 1925-26, COMPARED WITH 1924-25


Novem-
ber


Gourdes
420
125
1,536,800
1,020,845
6.400
556,810
1,045,780
206 205
125,010
1,340
359,245
5,911,190
564,130
337,585
11,671,885
9,708 485
1,963,400
..........


Decem-
ber


Gourdes
555
180
954,365
1,277,790
18,915
480,450
959,355
387,915
111,490
1,320
875,105
4,98S,875
888420
240,745

10,160,430
11,213,5410

..........0
1,033,110


Janu-
ary


Gourdes
816
90
748,775
617,235
11,000
234,030
380,975
142,341
70.975
1,850
250,665
3,584,985
167.435
240,760
6,451,938
8,863,390

2,41ii,5


Fbru- March
ary


Gourdes
435
65
626,560
621,360
12,470
369.84C
391,375
169,105
80,425
1,055
216,470
4 435,820
161,410
346,260
7,432,650
9,292,415

1.859.761


Gourdes
520
105
422,335
628,180
11,595
294,585
463,920
153,835
52,730
1,825
235,475
4,324,255
240,240
568,240
7,392,340
9,014,455

1,622,115


April I May June July August


Gourdes
370
100
510,000
579,880
26,020
289,360
406.965
140,925
85,580
1.100
240.780
4,228,420
166,570
242,250

6,918.320
6,760,710
157,610
...... .


Gourdes
510
85
510,940
382,050
15,975
275,380
366,220
172,540
71,265
2,370
84,175
8,708.585
143,295
247,920
5,981,310
6,038,750

57,440


Gourdes
330
245
632,480
429,790
26,450
240,940
219,815
97,795
91,510
3,260
152,785
4,211,980
181,925
200,095
6.489,430
5,307,025
1,182,405


Gourdes
155
450
809,015
772.905
10,045
223.525
322,335
275,765
71,615
2.710
228.450
4,708,005
182.615
248,565
7,851,185
6,899,230
951,955


Gourdes
35
3.760
696,665
629,990
3,060
180,105
292,465
156,070
36,600
29,780
92.995
2,682,645
179,595
143,745

5,127,510
8,769,880

3,642,370


Septem-
ber


Gourdes
330
23,190
690,965
401,055
6,250
360,225
846,880
152,800
46,850
80,435
168,405
3,784,860
178,435
169,465

6,862,645
9,230,265

2,867,620


Total
1925-26


Gourdes
4,900
28.415
9,133,525
8,324,560
153,815
3,992,775
6,188,200
2,579,820
957.895
129,265
2,795.930
53,754,525
8,006,280
8,207,625
94,257,030


6,980,795


Total In-
1924-25 crease


Gourdes
260,620
1,325
9,779,755
9,561,205
96,995
4,326,425
6,335,830
1,950,200
1,110,265
113,050
8,471,400
58,422,670
2.399,755
3,358,330

101,187,825


Gourdes

27,090

56,820

629,120
16,215

606.525

1,3835,770


H






De-
crease


Gourdes
255,720
646,230
1,236,645 H
83',650
147,60
152,370
t67'470 0
4,668,145

150,705
8,266,565





0
crease.. .

I-


Port of entry



Aquin ..........
Belladere.......
Cap-Haitien...
Cayes...........
Olore ...........
Gonalves........
Jacmel..........
Je6rmie .......
Miragoane.....
Ouanaminthe ..
Petit-GoAve ....
Port-au-Prince.
Port-de-Paix....
Saint Marc......
Total 1925-26...
Total 1924-25...
Increase 1925-26.
Decrease 1925-26.


October


Gourdes
425
70
994,625
960,480
10,635
487,525
992,085
524,520
118,815
2,220
891,880
7,235,405
452.210
231,995
12,897,390
10,089,680
2,807,710
..........


_ __








18 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

first five months of the fiscal year, and in July, the month of smallest
exports during 1925-26, values were only about one-fifth of those during
the month of greatest export activity, November. This situation is far
less favorable than would be a uniform stream of exports throughout the
year.
Export values were smaller than those of similar months in the previous
year during four months. Eight months showed higher export returns than
during 1924-25. This situation can be regarded with limited satisfaction,
particularly as the unit price of the more important Haitian products was
less in 1925-26 than during the previous year.
As presented in Table No. 14, special activity in exports occurred at
Cap-Haitien, Jacmel, JRremie, Petit-Goave and Port-de-Paix. Ports with
less satisfactory export conditions included Cayes, Gonalves, Port-au-Prince
and St-Marc.
COMMODITIES IMPORTED
Details of imports and exports are assembled in schedules Nos. 1 and 2
at the close of this report. It is useful, however, to analyze the more im-
portant classes of imports, as from such analysis suggestive information
concerning economic and social conditions may be obtained. For this pur-
pose, Tables Nos. 15 and 16 have been prepared. The former shows the
value of the chief categories of imports from 1916-17 to 1925-26. All
classes except vegetable fibers and their manufactures, kerosene, soap and
textiles have had an upward tendency. In the case of the commodities just
mentioned, the explanation of their relative inactivity is somewhat obscure
in the case of vegetable fibers and kerosene. Increasing domestic produc-
tion of soap seems to be adequate reason why imports need not increase.
As for textiles, the climate is such that elaborate wardrobes are not as likely
to accompany expanding wealth as are increased expenditures in other
directions.
As a matter of fact, the year 1925-26 showed an expansion in the value
of imports of all principal classes of merchandise as compared with the
average from 1916-17 to 1925-26, except in the case of vegetable fibers and
their manufactures and textiles. Similarly, there was an improvement in
the year under discussion, as compared with the previous fiscal year, in
all principal classes except chemical and pharmaceutical products, vegetable
fibers and their manufactures, iron and steel and their manufactures,
leather, textiles and miscellaneous products. Declines in the foregoing
groups were moderate except in the case of textiles.
On the contrary, pronounced expansion over the previous year and over
the ten year average occurred in the case of cement, fish, wheat flour, meats,
rice, miscellaneous foodstuffs, lumber, liquors and beverages, gasoline,
other mineral oils, soap and tobacco. For commodities not otherwise classi-
fied the increase during 1925-26 over the ten year average was also of sub-
stantial proportions.














TABLE No. 14
VALUE OF EXPORTS, BY MONTHS AND PORTS OF SHIPMENT, FISCAL YEAR 1925-26, COMPARED WITH 1924-25

ship t October Novem- Deem- Janu- Febru. March April May June J A st e- Total, Total In- De-
shipment ber ber ary ary ay g tember 1925-26 1924-25 crease crease

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourde Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Suin ........... 6,145 260,55 211565 161,480 223,095 158,270 20,280 51,740 15,820 15210 87,865 1,500 1,496,005 1,633,455......... 137,450
ellad1 re ........ .......... t .......... 2 .......... .......... ..........i..........i......... i ..... .....i ......... ......... 25
Cap-Haitlen.... 2,214,345 2,514,915 1310,285 1,699,80 1,777,240 1,426,885 805,15 527,855 817,265 460.535 427,575 895, W 14,876,54 11,764,71 8,111,8 ...
Cayes........... 86,020 795,810 693,920 956,9 986,06 821.590 552,855 206,475 330,290 10,470 51,41 178,420 6,446,815 9,182,855.. 2,736040
Glore........... 165 250 405 50 200 200 165 1,810 390 755 10 1 4,410 10,670.......... 6,260
Gonalves........ 712,090 756,735 948,940 1,042,95 650,185 492,550 724,655 625,805 644,100 471,495 187.970 818,550 7,770,470 8,825,055 1,054,585
Jacmel ......... 835,125 1,21950 2,230925 1,925,765 2,170,690 1,608,1601,240,055 1,019825 702,765 874.11 260,975 829,435 14,419,785 12,487,370 1,932,41
J6r6mie......... 1,021,535 1,247,270 597,255 1.258,895 776,360 517,565 202,305 755.080 801,710 483,855 212.830 185,670 7,510,280 8,515,81 8,994,46
Miraone...... 21,7 281,140 89,67 251,0 414,825 1736 117.410 128,2 102,10 126,860 29,18 484 2,14,77 2,47146....... 156,685
Ouanaminthe... 710 1,050 900 450 1,925.......... .885 so 490 225 820 7,160 7,745........58
Petit-Gove..... 1,819,820 1,986,00 1,919,165 2,100.280 1,950,085 986,450 1270,895 1,10,880 72.570 202.255 212,950 97,410 14,15,060 1.05.88 1,115,680....
Port-au-Prince.. 1,231,57 2: 369,45 894,155,066 1... .. ...... 2,484,770
Port-au-Prince.. 1,231,570 2,610,145 1,164,810 2.141.715 2.542,405 2,243,465 1.403,5151,369,155 894,175 652,560 1,417.195 880,310 18,571,020 21,055,79.. 2,484,770
Port-de-Paix.... 675,555 1,046,110 960,415 1,000,355 679,445 776,665 458,420 227,815 201,650 117,560 117,980 227,635 6,489605 4.756,695 1,782910
Saint Marc...... 142,510 260,800 60,360 614,605 775,150 1,110,805 1,102,255 917:750 638,690 327,230 350,73 238,205 6,88,095 8,247,785.......... 1,409,690
Total 1925-26.... 9,344,300 13,502,510 10,788,515 18,154,210138,146,20510.316.905 8,080.625 6,938,760 5,371,555 3.243,800 3.856,400 8,676,740 100,920,025 ........... 11,887,305 7,986,090
Tota11924-25 .... 6,473,540 10,281,495 15,95,86514,086,37012,291,03510,087,96 8,977,240 5,849,745 3,80,575 2,963,545 2,676,665 4,204,770........... 97,018,810 ...........
Increase 192-26 2,870,76, 38,221.015 ........855 ......... 855170 ,940.. 1,089,015 1,540,960 279,755 679,73 ......... 8,901,21 ... ...................
Dcrese 265-2 .. ........ ..........1 89,615 ...................................5 M00 ............ ............. ......


I~II~-I-mYIU ~_~ -




20 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

In short, the import trade of Haiti has shown sustained and normal
expansion with the one exception of textiles. During 1924-25 unprece-
dented imports had taken place. Purchases of textiles during that year
reached Gdes. 34,597,140, compared with Gdes. 20,985,675 during the
previous year and with Gdes. 22,488,606 for the ten year average. With
these facts in mind, less disappointment need be felt over the Gdes. 20,-
897,685 of textiles imported in 1925-26, although this figure was only
three-fifths of the value of such imports during the fiscal year immediately
preceding. Neither 1924-25 nor 1925-26 should be regarded as normal.
During the earlier year imports of textiles were unquestionably excessive,
and this fact was reflected in sub-normal business in this line during
1925-26.
Activity in new construction may be clearly inferred from enlarged
importations of cement and lumber. This is of great importance to Haiti,
as housing conditions are by no means satisfactory. Sharp expansion of
imports of gasoline indicates improved transportation, while expansion in
all of the food schedules shows that the Haitian population is being more
adequately nourished. Of particular significance is the increase in pur-
chases of miscellaneous foodstuffs from Gdes. 3,382,905 in 1924-25 to
Gdes. 8,023,060 in 1925-26, an advance of 137.17 per cent. This classifi-
cation includes the myriad articles of food which are not ordinarily
denominated as staples. Such items are not purchased unless requirements
for staples have been previously satisfied. No clearer evidence can be pre-
sented as to the improved economic status of the Haitian population.
Retaining in mind the record of imports into Haiti, as shown by values,
attention may now be directed to the volume of such imports. These data,
compiled in Table No. 16, show even more strikingly the progress in
developing Haitian foreign commerce. From the point of view of quantity,
every group which is classified separately showed from moderate to
remarkable expansion over the returns of 1924-25 and those of the ten year
average, with the single exception of textiles. It is apparent, therefore,
that some of the declines in value which have been noted in previous para-
graphs were due rather to lowered prices per unit of the commodity in
question than to decreases in the number of units imported. Such a situa-
tion is clearly to the benefit of Haiti, as it has been able to obtain equal or
greater quantities of merchandise for smaller expenditures of funds. In
numerous instances the volume of imports during 1925-26 was practically
double that of the ten year average. Such was the case as to cement, fish,
meats, rice and gasoline. When measured quantitively, as well as from the
point of view of value, the results of 1925-26 may be regarded with entire
satisfaction so far as imports are concerned. The one weak feature, namely,
textiles, was due rather to excess imports in the previous year and not to
permanent depression in the textile trade.
















TABLE No. 15

VALUE OF IMPORTS, BY COMMODITIES, FISCAL YEARS 1916-17 TO 1925-26


Commodity i


Cement............... ..........
Chemical and pharmaceutical products..
Fibers, vegetable and manufactures of...
Foodstuffs:
Fish..................................
Wheat flour..........................
M eats ................... ..............
Rice.................................
All other............................
Iron, steel and manufactures of..........
Leather....... ..................
Lumber.............................
Liquors and beverages...................
Oils mineral:
Gasoline.................... .........
Kerosene ..........................
All other.........................
Soap ................. ........ .........
Textiles ..........................
Tobacco............. ..................
All other...............................

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


Average
1916-17-1920-21


Gourdes
453,756
644,320
2,114,647

2,880,691
10,671,303
1.129,413
1,735,650
6,544,557
3,460,075
780,115
1,055,151
1,229,720

854,469
1,108,696
175,174
3,849.333
21,766,874
1,412.048
14,394,911

75,260,403


1921-22


Gourdes
283,505
775,110
1,472,715

2,910,150
7,799,585
1,160,460
676,990
6,700,770
2,139,475
601,550
909,865
1,255,080

442,255
970,395
165,725
8.195,070
16,878.280
1.765,430
11,649,495

61,751,855


1922-23


Gourdes
403,675
765,115
2,193,585

2,588,225
11,253,000
1,298 145
969,835
6,482,060
2,676,445
757,420
1,888,780
1,251,195
700,765
783,315
223,700
2,971,060
22,695,455
1,586,585
9,851.455

70,789,815


1923-24


1924-25


1925-26


S-I I1I


Gourdes
314.755
808,170
1,457,125
2,029,515
14,652,430
1.817,850
1,320,185
4,345,220
2,775,285
618,515
1,261.340
1,325,700
692,605
852,280
287.720
2,787,520
20,985,675
1,407.290
14,291,960

73,480,640


Gourdes
451,215
1.284,460
2,426,225
4.176,380
12,880,450
1,680,245
1.487,915
3 882,905
4,791,505
1.117,890
1.503,515
1,626,385

966,245
907,580
482,325
2,714,180
34,597,140
1,778,740
22,983.025

101,187,825


Gourdes
677,455
1.010,670
1,734,775
4,740,855
13,639,410
1.856.595
2,011,900
8,023,060
4,675,535
834,260
1,715,730
1,709,380
1,476,800
1.161,470
698,910
8,636,655
20,897,685
2,313.300
21,443,085

94,257,030


----
Average
1916-17--1925-26 o


Gourdes
439,938
786,512
1,985,766 t
2.834,858
11,858,139
1.290.986
1,514,507
6,165,680 0
8,435,862
782,971
1,200,448
1,331,684
605,052
1,021,852 H
268,425 t
3,455.115 M
22.488,606 W
1,591.159
15,219,358

77,776,868
88

u


C~ __~


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



















TABLE No. 16
QUANTITY OF IMPORTS, BY COMMODITIES, FISCAL YEARS 1916-17 TO 1925-26


commodity U t Average Average
Commodity Unt 916-17- -21 1921-2 1922-23 1923-24 1924-25 1925-26 1916-17-1925-26


Cement..................... Kilo............ 3,518,741 2,516,977 4,870,319 5,006,576 6,069,066 9,916,484 4,597,313
Foodstuffs:
Fish..................... Kilo............ 2,166,642 3,189,173 3,508,062 2,749,538 4,574,328 7,473,341 3,232,765
Wheat flour............ Kilo............ 12,854,104 14,874,210 30,971,819 41,329,095 25,579,598 28,052,052 20,257,679
Meats.................... Kilo............ 500,144 714,041 879,974 895,465 784,487 1,341,801 711,649
Rice..................... Kilo............ 675,744 1,263,508 2.586,167 3,275,894 8,118,540 4,070.069 1,767,490
Liquors and Beverages ..... Liter............ 686,337 813,806 811,096 1,043,330 1,824,142 1,637,869 906,193
Lumber ..................... Cubic meters... 6,769.43 9,114.04 14,764.00 14,277.23 16,052.82 17,398.84 10,545.36
Oils, mineral:
Gasoline................. Liter.......... 517,523 837,476 1,781,588 2,081,498 2,586,369 3,984,266 1,400,881
Kerosene................ Liter............. 2,894,769 3,077,366 3,338,010 3,454,020 3,590,164 4,658,022 8,259,143
Soap....................... Kilo............ 2,830,380 2,072,001 3,666,687 4,875,839 8,413,898 4.500,183 3,218,001
Textiles..................... Meter ........ 22,423,413 26,674,986 80,429,726 21,28,858 6,465,902 3,216,424 25,351,464
Tobacco..... ................ Kilo ............ 694,984 616,009 682,336 659,126 912,776 1,289,290 758,446

Kilos; estimated meters 23,558,101




HAITI: REPORT OF FINANCIAL 'ADVISER-GENERAL RECEIVER 23

COMMODITIES EXPORTED
Though the value of exports from Haiti during 1925-26 was the highest
in several years, as shown in Table No. 17, it is fair to state that no real
progress was made toward more satisfactory production and marketing of
Haitian products. On the contrary, an even higher degree of centraliza-
tion took place, coffee occupying a more dominant position than during the
preceding year. As a consequence the relative importance of other com-
modities declined, and in several instances actual as well as relative
decreases occurred. This was true in the case of beeswax, raw cotton, log-
wood, logwood extract, skins, sugar, turtle shells and miscellaneous exports.
The only commodities aside from coffee which showed higher values in the
year under review than during 1924-25 were cacao, cotton seed, honey and
lignum vitae.
TABLE No. 17
VALUE OF EXPORTS, BY COMMODITIES, FISCAL YEARS 1916-17 TO 1925-26

Average Average
Commodity 1916-17- 1921-22 1922-23 1923-24 1924-25 1925-26 1916-17-
1920-21 1925-26

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Beeswax.......... 59,995 4.855 2,435 4,405 6,560 1,980 32,021
Cacao............ 2.726.921 1,370,620 1,326,740 696.765 921,040 1,884.870 1,983,464
Coffee............ 46.999.359 87,436,560 54,321,045 51,808,880 76,999,495 81,621,600 53.718,438
Cotton, raw...... 5,595.881 7,073,035 9,140,510 10,343,140 9,961,320 9,416.535 7,891,395
Cottonseeds...... 428.686 584,860 985,035 1,012,900 498.615 724,610 594.945
Honey ........... 794.093 310,380 225,985 148,275 473,980 563.970 569,306
Lignum-vit4e.... 438,616 131,285 438,310 90,180 140,830 200,890 3 18,458
Logwood ........ 6,145.079 2,266,780 2,493.310 1,675.330 2,672,580 2,323.465 4,215,686
Logwood extract 193,882 267,985 889,730 528,020 780,520 498,415 343,408
Skins ........... 1,502,690 825,625 70,410 513,355 465,810 448,190 963,684
Sugar............ 1,876,976 2,687875 2,418,895 3.102,060 1,882.660 1,605,500 2.108,087
Turtle shells..... 61,149 66.550 50,595 134.520 117,055 107,805 78,177
All other exports 2,828,645 1,035,110 792,560 823,780 2,098,345 1,522,695 2,041,572
Total....... 69,649,972 53,561,050 72,955,060 70,881,610 97,018,810 100,920,025 74.358.641.

.In view of the well known dangers which centralization of exports
entails, there is every reason why the Haitian government and Haitian citi-
zens should exert all possible efforts toward expanding the quantity of
exports as a whole as well as diversifying the kinds of exports which are
prepared for foreign consumption. Particularly is this the case when it
is considered that Haiti is well adapted to the production of many products
beside coffee.
Another element of weakness in the export trade is that logwood, log-
wood extract and lignum-vitae, while important for many years, cannot be
expected to retain their relative positions, as supplies of those valuable
woods are not being replaced. In a comparatively short time there will
be little logwood or lignum-vitae for shipment, unless systematic reforesta-
tion is immediately commenced. As problems of considerable difficulty sur-
round reforestation, it is undoubtedly judicious to attempt the develop-
ment of other exports as well as to attempt to perpetuate the supplies of
logwood and lignum-vitae by means of reforestation.




24 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

Unsatisfactory value returns in cotton and sugar merely indicated low
prices for those commodities. Production has proceeded in rather satis-
factory manner, and further progress might reasonably be expected, were
it not for the price level, which certainly leaves little if any margin above
the cost of production. Extensive areas in Haiti are well adapted to sugar
and cotton, though in certain instances irrigation is necessary. This of
course requires important capital investments and is beyond the means of
the Haitian peasant and even of the ordinary foreign agriculturist.
Somewhat similar reasoning applies to exports of goat skins. Slightly
decreased values of exports were a reflection of lower unit prices. Though
the goat population of Haiti is rather extensive, it could be sharply
increased with no great effort. Experiments in the rearing of Angora goats
are proving encouraging, and it is hoped that not only the quantity but
the quality of goats in Haiti may be improved.
Some of the statements regarding exports in the preceding paragraphs
stand out in bolder relief when considered from the point of view of
quantity as well as value. Utilizing the data in Table No. 18, it is found

TABLE No. 18
QUANTITY OF EXPORTS, BY COMMODITIES, FISCAL YEARS 1916-17 TO 1925-26

Average Average
Commodity 1916-17- 1921-22 1922-23 1923-24 1924-25 1925-26 1916-17-
1920-21 1925-26

Kilos Kilos Kilos Kilos Kilos Kilos Kilos
Beeswax.......... 19,179 2,698 1.500 1,462 8,292 598 11,045
Cacao .......... 1,958,938 2,152,145 2,019,847 1,647,029 1,533.772 2,190,5q8 1,933,808
Coffee ........... 29,308,341 28,599,337 35,848.208 29,402.200 30,767,100 35,683,690 30,684,224
Cotton, raw...... 2,488,291 4,193,575 8,361,709 3,323,389 3,605,749 4,994,526 3.192,040
Cottonseeds...... 2,480,810 8,111.376 5,826.236 5,842.327 2,468,946 5,772,803 4,042,574
Honey........... 731,881 707,611 455,097 308,048 648.846 619,931 639,894
Lignum-vitae..... 4,036,786 2,027,384 5,210,157 2,254.632 2.460,663 1,601,543 3,373,831
Logwood ......... 54,889.414 29,350,604 84,278,658 21,563,005 32,303,035 21,587,180 41,852,955
Logwood Extract. 118.537 626.852 1,084,471 778,777 1,020,280 785.512 488,858
Skins............ 283.467 103.865 135.632 155,754 129.316 136.843 217,875
ugar............ 2,543,397 10,826,843 4,656,967 6,242,781 5,359,360 5,973,839 4,577,678
Turtle shells...... 1,65 749 1,274 1,972 1,973 1,423 1,557

that from 1924-25 to 1925-26 the volume of coffee increased 15.98 per cent,
exports being approximately at the high point during a long period of
years. But the value return to Haiti from marketing this bumper crop
increased only 6.02 per cent, or at a much smaller ratio than the quantity
exported.
Similar declines in unit prices took place in cotton, sugar and goat
skins. To be sure, the price of many important imports also fell, with the
result that lowered unit values for some of the principal Haitian exports
were at least partially compensated. However, declining prices do not tend
to encourage production, and pronounced hesitation toward the end of
1925-26, particularly in cotton production, was evident.
Commodities which showed advances in unit prices were cacao and log-
wood. In the case of the former, shipments increased from 1,533,772 kilos

















TABLE No. 19

QUANTITY AND VALUE OF FIVE PRINCIPAL EXPORTS, BY PORTS, FISCAL YEAR 1925-26, COMPARED WITH FISCAL YEAR 1924-25


Port Coffee Cotton Logwood Sugar, raw Cacao, crude

Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes
Aquin......................... 528,189 1,203.205 78,670 149,665 649,718 64,985 .......................... 760 660
Cap-Haltien.................. 5,318,087 12,163,815 81,038 140,725 11,591,860 1,237,800 ........................... 281,768 245,405
Cayes....................... 2,696.005 6,195,360 54,780 120.985 166,212 18,675 .............. .............. 2,680 2,25
Gonalres.................... 2,403,052 5,512.260 954.106 1,744,600 793,007 78,840 ............... ...................... .. ......
Jacmel.......................... 5,688,054 12.989,325 603,748 1,18,335 ................................................ ............ ...........
JIromie........................ 2,850.563 6,531,590 11,858 19,250 .............. .............. ......... .... .............. 1,015,143 873,610
M iragoane ..................... 942,883 2,189,895 ............................ 721,875 76,10 .............. .............. .............
Ouanaminthe....................... 53 100 ............................ ....... ............................ ..............................
Petit-GoAve.................. 6,140,026 14,021,240 4,143 8.245 .................... ........................ 8166 6925
Port-au-Prince ............... 6,036.548 13,768,015 805,301 1,518,330 .......................... 5,973,839 1,605,500 873,737 320.720
Port-de-Paix.................. 2,575.970 5,855,455 6,597 12.100 1,178,750 144,000 ........................... 432,844 372,825
Saint Marc.................... 504,815 1,191,840 2,394,790 4,564,300 6,486,263 702,855 .............. .............. .............. ...........
Total 1925-26 ............. 35,683,690 81.621.600 4.994,526 9.416,535 21,587,180 2,323,465 5,973.839 1,605,500 2,190,598 1,884,870
Total 1924-25.............. 30,767,100 76,999,495 3,605,749 9,961,320 32,308,035 2,672,580 5,359,860 1,882,660 1,533.772 921,040
Increase 1925-26................ 4,916,590 4,622,105 1,888,777 .............. ........ ................ 614,479 ............ 656,826 963,880
Decrease 1925-26.............. .............. ............................ 54,785 10,715,855 349,115 .............. 277,160 .............. ..............


j~yl~ ~





26 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

to 2,190,598 kilos, or 42.82 per cent, while the value of these shipments
more than doubled. For logwood, exports declined from 32,303,035 kilos
to 21,587,180 kilos, or 33.17 per cent.
Prospects for 1926-27 are distinctly unfavorable for the price of coffee
and cotton, and there is an undoubted downward tendency in the volume
of logwood which will be available for export. Of present industries,
improved conditions are anticipated for only sugar and cacao. Nevertheless,
increasing interest is being shown in introducing new products, particularly
sisal, tobacco and fruits, and possibly unsatisfactory conditions in the cof-
fee and cotton trades may at some future date be offset in other directions.
For comparative purposes the quantity and value of the five principal
exports of Haiti during 1924-25 and 1925-26 are classified by ports of ship-
ment in Table No. 19.
Table No. 20 reduces to percentages the value of Haitian exports, in
order to show the relative importance of the several staples. Not only
has coffee been the dominant feature throughout modern times, but that
dominance seems to be increasing, as indicated by the fact that 68.50 per
cent of Haitian exports was composed of coffee for the entire period from

TABLE No. 20
PERCELN'AGE OF VALUE OF EXPORTS, BY COMMODITIES
FIscAL YEARS 1916-17 TO 1925-26

Average Average
Commodity 1916-17- 1921-22 1922-23 1923-24 1924-25 1925-26 1916-17-
1920-21 1925-26

Per cent Percent Percent Percent Percent Percent Percent
Coffee............ 61.46 69.90 74.46 73.09 79.87 80.88 68.50
Cotton............ 8.73 13.21 12.53 14.59 10.27 9.33 10.36
Logwood......... 9.31 4.23 3.42 2.36 2.75 2.30 6.16
Sugar, raw....... 3.27 5.02 3.32 4.38 1.94 1.59 3.26
Cacao, crude..... 4.36 2.06 1.13 .98 .95 1.87 2.88
All other......... 12.87 5.58 5.14 4.60 4.72 4.03 8.81
100.00 100.00 100.00 100.00 100.00 100.00 100.00

1916-17 to 1925-26, while during 1925-26 this commodity alone consti-
tuted 80.88 per cent of the total, the highest ratio during any year of the
receivership. Of the other four principal exports of Haiti, each showed a
relative decline in 1925-26, except cacao. Miscellaneous exports, grouped
under the term "all other," also declined, the percentage in 1925-26 being
less than half that of the ten year average. In fact, coffee was the only
commodity which in 1925-26 constituted a larger percentage of total
exports than the average for the ten years since American intervention.
This is the opposite of a sound situation, and energetic measures should
be taken toward increasing the output of other staples beside coffee and
toward the introduction of new export crops.
In order to demonstrate the extremely seasonal character of several
export commodities, Table No. 21 was prepared. For example, during


















TABLE No. 21 o

S QUANTITY AND VALUE OF EXPORTS, BY COMMODITIES AND MONTHS
FISCAL YEAR 1925-26


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, 1925............ 3,688,445 8,768,460 13,069 34,220 310,742 81,815 ........................ 185,213 143.385 366,420 9.344,800
November............ 5,714.960 12.714,315 ............ ............ 2,51,764 240,220 ............ ............ 6,031 282,605 265,370 13,502,510
December. .............. 4,555,482 10,153.210 ........................ 2210,093 247,775 ............ ............ 326,249 283,260 104,270 10,788,515
January, 1926............ 5,070,135 12,495.350 18,214 33,745 1,299,769 146,015 ............ ............ 831,261 287,705 191,865 13,154,210
February ............... 4,956,852 11,718 215 436,414 936.125 668,449 75.105 ....................... 159,023 188,065 278,695 13,146,205
March .... ..... ..... ,051,696 6,825,515 941.829 1,955,340 3,249,579 878.875 3,062,833 796,000 70,020 60,785 800,890 10,316,905
April .................... 2,412,423 5,187,285 1,125,270 2,111,250 1,814,577 203.885 ........................ 171,311 148,740 429,465 8,080,625
May ................... 1945.851 4.258,350 974,079 1,755,675 1,120,171 125,860 ............ ............ 206,097 178,825 620,050 6,938,760 d
June.................. 1,336,692 8,044,270 715.384 1,280,435 2,537,528 285,090 ............ ............ 243,943 212.655 549,105 5,371,555
July..................... 783,324 1,754.250 446,700 768,985 2,187,646 231.450 ........................ 114.961 99,810 388,855 3,243,300
August.................. 795,430 1,750,245 197,985 331,045 880,883 81,005 2,911,006 809,500 28,131 24,415 360,190 3,356,400
September.............. 1,372,400 2,952,135 180,582 209,765 3,005,979 276,840 ........................ 28,358 24,620 213,880 3,676,740
Total.............. 35,683,690 81,621,600 4,994,526 9,416,535 21,587,180 2,823,465 5,973,839 1,605,500 2,190,598 1,884,870 4,068,055 100,920,025
.___________ __ ________V





28 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

November, the month of largest coffee shipments, such exports were more
than seven times as great as during July. Even greater fluctuation existed
in the case of cotton, the extremes being no exports at all in November and
December, compared with 1,125,270 kilos in April. Cacao also showed
sweeping fluctuations in quantities exported from one month to another.
Shipments of raw sugar, being dependent on the market policies of a single
company, were confined to only two months, but they cannot be regarded
as having a fixed periodicity. Less important seasonal fluctuations occurred
in the case of logwood and miscellaneous export products. Undoubtedly
the principal need of the export trade is the development of crops to swell
the activities of the second six months of the fiscal year. Fluctuations of
more than 400 per cent between the months of least and greatest export
trade are far from wholesome.

IMPORTS AND EXPORTS OF CURRENCY
For the first time there has been made an attempt to assemble statistics
of imports and exports of currency. The data apply to the years 1922-23
to 1925-26, inclusive, for gold, silver and paper currency and are included
in Table No. 22.
It will be noted that imports of all classes of currency have been prac-
tically nil, while exports reached figures of considerable magnitude. On the
face of it, such a situation is impossible in a country like Haiti in which
the precious metals are neither mined nor minted and in which facilities
do not exist for the manufacture of paper currency. The apparently
peculiar phenomenon is explained by the fact that currency, both specie and
paper, is introduced in large quantities by Haitian emigrants returning from
Cuba and to a less extent by persons visiting this republic. Competent
observers estimate that Haitian emigrants returning from Cuba bring
with them in actual cash an average of Gdes. 750, but obviously such per-
sonal funds do not enter into import statistics. As the number of such
returning emigrants runs into thousands, it is evident that currency is
introduced in large volume and that such currency must ultimately be
exported by the banks, as it consists principally of United States money.
Were this foreign money not exported, the circulation of Haiti would
rapidly become redundant and, furthermore the notes of the Banque
National de la RKpublique d'Haiti would be driven from circulation.
Distribution of exports of metallic money and of paper currency show
surprising fluctuations. For example, during 1922-23 exports of paper
currency were almost twice as great as the combined shipments of gold and
silver. In the following year, gold took first place with silver second, while
exports of paper currency were negligible. In 1924-25, also, transfers of
metallic money out of Haiti were surprisingly heavy, reaching approxi-
mately Gdes. 2,800,000. In the latest fiscal year, however, gold shipments
did not occur, while exports of silver reached Gdes. 2,277,500 and transfers










TABLE No. 22

IMPORTS AND EXPORTS OF CURRENCY, FISCAL YEARS 1922-23 TO 1925-26


Imports
October..... ........
November........ ....
December.................
January.................
February.................
March...................
April....................
May .......................
June......................
July......................
August.................
September................
Total ................

Exports
October..................
November.................
December.................
January ..................
February.... .........
March .....................
April.....................
May ......................
June......................
July......................
August..................
September................

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


1922-23


1923-24


1924-25


1925-26


Gold Silver Paper Gold Silver Paper Gold Silver Paper Gold Silver Paper


Gqurdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes

........... ........... ............ ........... ............ ..................................... ....................

...... .. .........1,000,000 ............ ........ .......... ................. .. ........... ............. ........................


. .. . . . . . . . . .. ... . . . . 0
............ ............ 00,000 ............. ..... ..... ....... ........ .......... .............. ... .. ............


............ ,000 ..... ... .... ........... ............ ............ . ............ .........
............ ............ ........... ... ......... ......... ... ............ .. ........... ..... .. ..... .. 50 0 ............' ...........


............ ............ 2,50 ,000 ............ ............ ......... ... ............ ............ ............ ............ ............ ............



............. 000 ........... ............ ..... .... ....... .. ......... ...... ... ........... .
............ ............ ............ ............ ...........
............. .................. .
............ ........ .... ............ ...... ........... ....... .....


............ 5 ,000 ............ ...... .... 21 ,00 ............ ............ ........ .. ......... ............
............ 1 5 ,000 ...... ....7 ........ ............ ............ ........... ...... ...... .......... .. ... ..... .....1S .O



.. ,80 ........... .... .... .................... ........... ......... .
.... ............ ............ .......... .18,500 ........................ .. ... ........... 146,000 ...........
26................ ..... ..... .. ......


........................ ............ 19.750 ............ 25,000 ............ .......... 2,105,000 515.000
1,025 22,800 .. ........ 1,036,155 500,000 ........... 1,50 1,003,500


Ilr_~~_l I


400,000 169,750 145,700


1,025 223,890


25,000 1,750,000 1,066,095 533,750 ............ 2,277,500 3,318,500





30 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

of paper currency reached the surprising level of Gdes. 3,318,500. As the
bulk of exports during 1925-26 occurred in the later months of that year, it
is apparent that diminution of Haitian commerce was beginning to be
reflected.
CUSTOMS ADMINISTRATION
In broad outline the administrative policies of previous years were con-
tinued in the Customs Service during 1925-26. Various regulations were
issued in the effort to clarify and simplify customs procedure and to estab-
lish greater uniformity of practices at the several ports.
Of most importance was the voluntary limitation of the Customs
Service in arriving at final liquidation of duties. In previous years,
merchants were sometimes embarrassed by receiving statements for insuf-
ficient duties at considerable periods after the shipments had been delivered
by the customhouses. If the merchandise had been priced on the basis of
the original assessment of duties and had been promptly distributed to con-
sumers, it is obvious that the importers incurred hardship. To remedy
this situation, the Customs Service limited the period in which additional
duties may be assessed to thirty days after payment of the original customs
bill. That is, the General Receiver's office had to receive and act upon
provisional liquidations within that period. This had the double advantage
of forcing the reviewing office to keep its work strictly up to date and of
indicating to the importer his exact financial position within a short period
of time. It should be noted in passing that the thirty days accepted by
the General Receiver's office for the issuance of statements for supple-
mentary duties was exactly equal to the period allowed to importers and
exporters for filing claims for reimbursement of overpayments. As the
United States, for example, accords to its customs service a period of one
year for final liquidation of duties, it is obvious that a period limited to
thirty days, which was put into effect by the Haitian customs receivership,
is very liberal.
During 1925-26 special efforts were made to improve the parcel post
service. This branch of the import trade has increased with great rapidity,
and has continually outgrown physical and administrative facilities. At
Port-au-Prince the situation is particularly unsatisfactory, due to the fact
that parcel post packages for the other ports are customarily landed at the
capital and have to be distributed to the provinces. As a result, plans have
now been formulated for the construction of a modern and adequate parcel
post office, and it is hoped that in the future the public will receive more
satisfactory service than has characterized the immediate past.

TARIFF REVISION
Of outstanding importance for the Customs Service was the enactment
into law, as of July 26, 1926, of a complete revision of the customs tariff





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


of Haiti. Such revision had been urgently needed not only for the entire
period of the receivership but for many years prior thereto.
After long and careful preparation revised tariff schedules, prepared in
large measure by the Deputy General Receiver, were made public in May,
1925. Active discussion of the proposed schedules took place during several
months, as interested parties had been requested to present their observa-
tions. As a result, many alterations were made to the schedules as orig-
inally proposed, and after further discussion the new tariff was voted by the
legislative body on July 26, 1926, and went into effect on August 9, 1926.
Under the preceding tariff articles of ordinary necessity were rather
heavily taxed, while many luxury articles escaped adequate taxation. This
situation arose from the fact that the rural masses were not properly repre-
sented in the legislative bodies which were responsible for the preparation
of previous tariffs. As most of the legislators came from the towns and
were also members of the upper groups in the economic scale it is not sur-
prising that the principal fiscal burdens were shifted from the so-called
upper classes and imposed on the agricultural masses. This situation the
revised tariff set itself to remedy.
Not only were taxes increased on items of luxury, like silk, liquors,
tobacco and perfumes, but many articles of first necessity, such as cheap
cotton textiles and materials of industry, such as coal, fuel oil, cement and
machinery, carried decreased duties.
Moreover, a conscious attempt was made to favor industries already
established in Haiti and those which were believed to be capable of suc-
cessful establishment. To illustrate, duties on tobacco, lard substitutes
and made up articles of clothing were increased. Already results are
beginning to appear. Of outstanding importance is the pronounced increase
in the production of tobacco in Haiti, such increase undoubtedly being
much greater than 100 per cent.
Sweeping changes in the tariff structure of a country always involve
commercial adjustments. The application of the revised tariff of July 26,
1926, caused a certain amount of hesitation in the import trade during
the latter part of August and for the month of September. Not only were
tariff rates of different categories of commodities considerably altered, but
in many instances the method of calculation was also revised. Effort was
made to base tax calculations on fixed units, such as kilos, meters, liters and
thread counts. Sufficient unpleasant experience had accrued under the
former method of utilizing trade names to make it most desirable to remove
tariff classifications from human appreciation and make them dependent
upon fixed units of weight and measurement.
For the purpose of taxing special grades of the various commodities,
while permitting ordinary grades to enter under more modest rates of duty,
specific taxes were frequently accompanied by ad valorem alternatives. The





32 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

specific tax would thereupon apply to the usual grades or qualities, whereas
the special grades or qualities would pay in accordance with value.
At the close of the fiscal year 1925-26 sufficient time had not elapsed
in the application of the new tariff to draw positive conclusions. A period
of grace was conceded during which merchants were not held responsible for
failure to declare their goods in accordance with the new tariff classifica-
tions. Moreover, anticipated and delayed purchases, due to the expected
adverse or favorable effect of the new tariff on various categories of mer-
chandise, disturbed the normal flow of commerce. Of even greater impor-
tance was the fact that at the very moment of placing the new tariff in
operation the import trade was beginning to be affected by the decreased
yield and lower price of the coffee crop of 1926-27. Attempts to calculate
the comparative tax burden of the new duties are therefore premature.
Furthermore, even under identical tariff legislation there exists considerable
fluctuation from year to year in the percentage which customs receipts con-
stitute of the value of imports. Probably the new tariff slightly increased
the general rate of import taxes, but it is believed that time will demon-
strate that such an increase was moderate.

COMMERCIAL CONVENTIONS
During 1925-26 the contractual relations between Haiti and foreign
countries, so far as foreign commerce is concerned, underwent considerable
changes. Of greatest importance was the abrogation of the commercial
convention of January 30, 1907, between Haiti and France. This con-
vention was distinctly favorable to France, as Haiti granted special tariff
preferences and received in return only most-favored-nation treatment for
Haitian products entering France. In view of this situation, Haiti saw
fit to abrogate the convention during the spring of 1926. Prior to the
expiration of the three months' notice of abrogation, negotiations resulted
in the conclusion of a new commercial convention, dated July 29, 1926.
Under this instrument tariff preferences in favor of France are greatly
restricted and are made uniform, such preferences amounting to one-third
of nominal taxes. In return, Haiti continues to enjoy most-favored-nation
treatment for its products exported to France. Finally, the new conven-
tion is considered as a provisional rather than as a permanent arrangement,
expiring by limitation at the end of three years unless renewed by the
affirmative action of both parties. Under this policy Haitian exporters
are virtually given to understand that they should seek outlets for the
principal exports of Haiti in countries which are willing to accord uncon-
ditional, most-favored-nation treatment in return for similar treatment.
Thus the undue dependence of Haiti on the French market will probably
be relieved.
By an exchange of notes, dated July 8, 1926, Haiti and the United
States concluded a commercial modus vivendi, providing for universal, un-




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 33

conditional, most-favored-nation treatment so far as commerce between the
two countries is concerned. This arrangement became operative on the first
day of the fiscal year 1926-27 and is to continue indefinitely, subject to
specified notice of termination by either party. In all probability this
modus vivendi will be superseded by a permanent treaty of friendship,
commerce and navigation.
In accordance with the precedent established in the modus vivendi
between Haiti and the United States, a similar convention was concluded
between Haiti and the Netherlands, dated September 7, 1926, and to be-
come effective fifteen days after the exchange of ratifications. Reciprocal
and unconditional most-favored-nation treatment is guaranteed for the
commerce of each party, as in the modus vivendi with the United States,
and in addition a clause granting most-favored-nation treatment in regard
to navigation and industry is also included.
Certain other countries have also intimated that they would be glad
to enter into most-favored-nation commercial relations with Haiti, and this
is the basis which is believed to be most appropriate for the development
of commercial relations. The system of special tariff preferences has not
been satisfactory and has been provisionally continued merely because of
the special relations which exist between Haiti and France.

CUSTOMS OPERATIONS
In view of the outstanding revenues of Haiti during 1925-26, mostly
consisting of customs receipts, it follows that the receivership operating
fund was materially larger than during any previous year. This fund, it
will be recalled, was established by the treaty of September 16, 1915, by
which the activities of the Financial Adviser and General Receiver were
to be supported by a first charge of five per cent on all customs revenues.
This levy of five per cent was expected to cover necessary expenses, but pro-
vision was made by which it could be increased by affirmative action of both
governments.
Shortly after establishing the receivership on the basis of operating
costs of not to exceed five per cent of amounts collected, twenty per cent
of the operating allowance was withdrawn by the terms of the transaction
of 1916 under which the commission which the Banque Nationale de la
R6publique d'Haiti receives as payment for its services was made payable
from the receivership fund. There is little need of stating that the com-
mission of the bank for various sorts of fiscal services could with difficulty
be classified as a cost of operating the Customs Service. Moreover the
arrangement by which the bank commission is paid out of the receivership
fund substantially reduces the relative funds available for the activities of
the Financial Adviser-General Receiver below the amounts which are au-
thorized for similar purposes in such countries as the Dominican Republic
and Nicaragua.





34 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

It should be recalled, furthermore, that in the countries just mentioned
five per cent of customs receipts is allowed for customs purposes alone,
whereas in Haiti this allowance, diminished by twenty per cent which
must be reserved as commission of the bank, is further diminished by the
fact that all activities of the Financial Adviser's office, as well as facilities
for effecting payments of all government employees and those facilities
concerned with the central accounting system are supported by the five
per cent account.
During 1925-26 accruals to the receivership fund were Gdes. 2,038,-
696.24, thus passing the two million gourdes mark for the first time.
Expenditures, on the contrary, were smaller than during either of the two
previous fiscal years, with the result that a surplus of Gdes. 340,316.38 was
shown at the end of the period. As explained in the annual report of this
office for 1924-25, the bank commission for two years was discharged dur-
ing that fiscal period. When allowance is made for paying in 1924-25
the bank commission of two years, it is evident that expenditures of the
Financial Adviser-General Receiver closely compared with those of the
previous year.
With the exception of the year 1918-19 the surplus of receipts over
expenditures was the greatest for any year of the intervention. This sur-
plus added to those accumulated in previous years gave to the receivership
an unobligated balance of Gdes. 693,778.52 on September 30, 1926. A work-
ing balance of this magnitude not only protects the receivership from sud-

TABLE No. 23
RECEIVERSHIP FUND, FISCAL YEARS 1916-17 TO 1925-26


September 1916.......
1916-17...............
1917-18.................
1918-19................
1919-20.................
1920-21..............
1921-22.................
1922-23................
1928-24...............
1924-25................
1925-26................


Five per Interest
cent o Total Expendi-
on Series tues Surplus Deficit
receipts

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
60.211.85 ............ 60,211.85 89.850.15 .............. 29,638.80
914,794.70 ............ 914,794.70 796,625.70 118,169.00 ........
755464 80............ 755.464.80 741,055.80 14,409.00 .......
1,452 176.60 ............ 1,432,176,60 700,035.60 72,141.00 ..........
1,603,639.95 ............ 1.603639.95 1,380,460.60 223,179.35 ........
882.854,05 ............ 882.854.05 1,452.073.10 .............. 569,219.05
1.377,811.70 ............ 1,377,811.70 1,279,142.25 98,669.4. ........
1.555,057.00 ............ 1,555,057.00 1,438.506.15 116,550.85 ..........
1.607.569.51 ............ 1,607,569.51 1,896.332.08 .............. 288,762.57
1,787,500.90 ............ 1,787,500.90 1,F49,537.49 ............. 62,036.59
2,029,741.59 8.951.65 2,038,696.24 1,698,379.86 840,316.88 ...........


Total.............. 14,006,822.65 1 .954.65 14,015,777.80 13,321.998.78 1,643,435.03 949,656.51
Average.............. 1,394,661.08 895.47 1,395,556.55 1,823,214.86...........
949,656.51 ............
Surplus for period.... .......... ...... ........................ ....... 693,778.52 ............

den fluctuations in its income but also demonstrates the prudence with
which operations have been concluded. Table No. 23 assembles the details
of the receivership fund for ten years and a fraction of an additional year,
and shows that during the period deficits were incurred during four fiscal




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 35

periods, while surpluses characterized the others. The table also demon-
strates that a strong financial position in the five per cent account should
be maintained, both for the purpose of effecting from time to time needed
improvements in the Customs Service and for providing against deficits
which are apparently likely to recur.
During the year under discussion an innovation was made in handling
the receivership fund, unexpended portions being invested in Series B
bonds of the Haitian government. As of September 30, 1926, bonds to
the par value of Gdes. 621,772.65, costing Gdes. 492,678.70, had been pur-
chased from the five per cent fund, and the interest from those bonds, as
received, was added to the fund. Thus productivity, as well as protection,
has been obtained in the administration of the finances of the receivership
account. The bonds in question are readily marketable and in fact could
be sold at a considerable profit. If at any time the receivership fund is in
need of cash the bond account can be liquidated as necessary.
In Table No. 24 the expenditures of the Financial Adviser-General
Receiver are classified by objects of expenditure. From the data presented in
that table it is evident that the considerably increased volume of revenues

TABLE No. 24
EXPENSES OF FINANCIAL 'ADVISER-GENERAL RECEIVER, BY OBJECTS OF EXPENDITURE
FISCAL YEARS 1916-17 To 1925-26

Adminis- Civil pay Customs .Permanent Bank Total
tration clerks operation improvements commission

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
September, 1916... .............. .............. .............. ................. ........ 89,850.15
1916-17...... .............. ......... 796,25 70
1917-18....... .............................................. ..................... 741,05580
1918-19............................................................. ........ ............. 700,035.60
1919-20........ 829,634.00 .............. 508,57075 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............ 481,672.40 19,825.00 600,627.10 ............... 333,881.65 1,438,506.15
1923-24............. 485,347.21 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
1925-26............. 467,996.66 .............. 669,394.41 155,040.47 405,948.32 1,698,379.86
Average .... 421,848.11 19,241.00 607,716.57 206,821.47 409,141.13 1,332,199.88


was administered without appreciable increase in expenditures. In this
connection it should be recalled that the enlarged activities of the Haitian
government, due to the prosperity which characterized 1925-26, involved
more extensive payrolls and purchases of supplies, and the work of the
accounting section and disbursing office of the organization of the Financial
Adviser-General Receiver naturally reflected.the foregoing expansion.
Costs of administration, which included all of the expenses of the cen-
tral office, such as those connected with the preparation and supervision of
the budget, the accounting section, the disbursing office, the section of
customs control and the legal section, were approximately equal to those of
the three preceding years. Especially is this the case when it is considered





36 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

that the civil pay clerks, who were appointed in 1920-21 at the expense
of the receivership, were discontinued during the year under review and
that their principal functions were performed by the personnel of the
head office.
Similarly, there has been great uniformity in the cost of actual opera-
tion of the custom-houses, that for 1925-26 actually being inferior to the
cost of the previous year, in spite of materially increased customs revenues.
Since 1921-22 operating costs of the custom-houses have been surprisingly
stable. Probably those costs will somewhat increase during 1926-27 in
view of certain adjustments which were called for under the new tariff,
such as the abolition of pilotage charges, which were formerly paid direct
to pilots and by placing the several pilots on the payroll of the Customs
Service.
Continuance of the program of permanent improvements characterized
1925-26. Expenditures of Gdes. 155,040.47 exceeded those of any previous
year with the exception of 1923-24, when the finance office building was
constructed out of the surplus in the five per cent fund. Details of dis-
bursements for permanent improvements which were paid from the five
per cent account are assembled in Table No. 25.

TABLE No. 25
REPAIRS AND IMPROVEMENTS TO CUSTOMS PLANT AND EQUIPMENT
FISCAL YEAR 1925-1926

Repairs and
Permanent Im- Improvements to
provements paid plant and equip- Total
Port from 5 per cent ment paid from
fund* general funds of
the Government

Gourdes Gourdes Gourdes
Aauin ................. ............ 19,722.03 ....... .............. 19,722.03
Bellad4re.............................. 4.674.43 ...................... 4.674.43
Cap-Haitien ........................... 8,913.58 ......................8,913.58
Gonaives ................................. ......... ........ 3,.183.07 3.13.07
Jacmel..........................30,646.17 51,652.90 82,299.07
J6r6mie................ ...............50.00 172.50 222.50
Ouanaminthe........ ........ .. 18,558.35 ..................... 18.58.85
Petit-Goave............................ 14,572.50 75.00 14 647.50
Port-au-Prince ........................ 22,257.88 134,806.02 157.063.90
Port-de-Paix...... ... .................. 5,283.25 7,763.26 43.046.51
Saint Marc ................ .......... 362.28 116,930.61 117,292.89
Total............................ 155,040.47 814,583.36 469,623.83
*Repairs, 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.
By reason of the unprecedented customs receipts, the one per cent com-
mission of the bank, based on such receipts, also exceeded all previous
records since the present rate of commission was established, amounting to
Gdes. 405,948.32. Therefore it may fairly be said that costs of all operat-
ing activities of the Financial Adviser-General Receiver, strictly considered,
were almost identical with those of the two previous years, and that the
apparent increase in expenditures was in great part explained by the enlarged




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 37

program of permanent improvements for the Customs Service and the
increased commission which the bank received under its contract.
As in previous years, the Haitian government devoted certain funds to
the maintenance, repair and improvement of customs facilities. Such
expenditures from the treasury, as opposed to those from the five per cent
fund, amounted to Gdes. 314,583.36 during 1925-26. This compares with
Gdes. 282,554.12 for similar purposes during the previous year. Thus total
expenditures for repairs and improvements to customs plant and equipment
provided both from the receivership fund and from the public treasury,
amounted to Gdes. 469,623.83, as contrasted with Gdes. 340,299.53 during
the previous year.
In this connection it should be stated that ordinary repairs which are
charged to the five per cent fund are included in the cost of customs opera-
tions rather than shown as permanent improvements. Therefore actual
expenses for the upkeep of the customs plant were somewhat greater than
the foregoing figure.
Of principal importance in the construction program were the follow-
ing, which were paid for from the five per cent fund:
Aquin-custom-house
Belladere-custom-house
Cap-Haitien-concrete floor in warehouse
Jacmel-residence for collector
J4r4mie-residence for collector
Ouanaminthe-custom-house
Petit-Goave-residence for collector
Port-au-Prince-drainage canal; raising floor of warehouse
Port-de-Paix-custom-house
St-Marc-residence for collector

Of principal importance among the projects for the benefit of the Cus-
toms Service which were financed from general treasury funds may be
mentioned the following:
Gourdes
Wharf- St-Marc ...................................$113,022.13
Pile driver barge .................................. 73,679.42
New customs warehouse, Port-au-Prince. ............. 40,929.39
New wharf, Jacmel ............................... 38,995.05
Warehouse drainage, Port-au-Prince ............... 15,122.84
Repairs to wharf, Jacmel .......................... 10,555.95
Customs office building, Port-de-Paix ................ 7,558.21
Parcel post addition, Port-au-Prince ................ 4,834.37
Cargo discharging platform, St-Marc ................ 3,759.02

Expenditures of the central office for 1925-26 are classified in Table
No. 26. Salaries closely approximated those of the two previous years.
Materials and supplies and transportation absorbed materially smaller sums,
while miscellaneous expenditures were more than double those of the previ-





38 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


TABLE No. 26

EXPENSES OF ADMINISTRATION, OFFICE OF FINANCIAL ADVISER-GENERAL RECEIVER
BY OBJECTS OF EXPENDITURE AND BY MONTHS, FISCAL YEAR 1925-26

Materials Trans- Mscel Permanent
Month Salaries and rain ln improve Total
supplies aeous ments

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
October........... 80.184.15 3.513.29 754.60 1,618.26 .............. 36.070.30
November......... 80,493.48 4,858.83 88.50 7,128.55 .............. 42569.86
December......... 32,985.15 2,121.80 .............. 5,862.60 .............. 40,969.55
January.......... 30,476.65 1,210.45 367.22 1,131.52 .............. 33.185.84
February ......... 31,277.48 2,672.90 722.71 1,282.13 ............. 35,955.22
March............. 6.356.65 2,426.24 57.41 11,941.66 .............. 50.781.96
April............. 29,956.65 687.30 496.62 2.899.94 .............. 33,540.51
May .............. 82,403.55 2,031.00 1,017.83 3,976.49 .............. 39,428.87
June .............. 29,112.90 742.08 92.17 7,265.41 .............. 37.212.56
July.............. 37,126.22 2,427.05 535.99 6.271.37 .............. 46,360.63
August........... 30,972.89 1.800.94 341.89 1,248.36 .............. 33,861.08
September........ 34,168.31 1,616.15 561.10 1,712.22 .............. 38,077.78
Total.......... 385,514.08 25,608.03 5,036.04 51,838.51 .............. 467,996.66
Total 1924-25.. 375,608.58 47,034.28 17,075.81 21,597.40 ............ 461,316.07


ous year. The latter class of expenses was incident to establishing the cen-
tral office in the new finance office building, which occurred in November,
1925. Administrative expenditures may be regarded as under satisfactory
control.

Table No. 27 presents similar details of expenditures for operating the
custom-houses. Salaries in this case were slightly less than in the previous
year, as were expenditures for materials and supplies and transportation.
Miscellaneous expenditures were considerably greater, and disbursements
for permanent improvements increased by almost 200 per cent. Total
expenses of operating the custom-houses increased by somewhat less than
Gdes. 100,000, an amount more than covered by the enlarged program of


TABLE No. 27

EXPENSES OF CUSTOMS OPERATION, BY OBJECTS OF EXPENDITURE AND BY MONTHS,
FISCAL YEAR 1925-26

Materials Trans- Miscel- Permanent
Month Salaries and portation laneous improve- Total
supplies ments

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
October........... 50,034.20 2.713.96 342.80 4,058.53 13,500.87 70.650 36
November......... 48,687.52 2,606.32 357.43 3,087 27 5,996.75 60,735.29
December......... 47,84902 2,096.36 2,319.29 3,263.97 21,054.08 76,582.72
January.......... 49,585.71 2.493.86 1,095 20 2,398.81 14.983 08 70,556.66
February........ 47,125.54 3,065 25 207.65 6,183.20 17,712.55 74,294 19
March............. 47,247.80 2,327.70 446.60 4,238.61 23,906.86 78,167.57
April.............. 46,759.22 1,891.98 188.29 3,795.35 31,922.52 84,557.36
May .............. 51,214.53 1,463.80 1,563.16 8.811.47 6,125.88 64,178.84
June.............. 52,354.71 1,629.90 1,152.85 7,887.40 5,049.24 68,07410
July.............. 42,849 55 2.275.50 629 71 2,801.57 6,262.61 54,818.94
August............ 47,322.30 1.512.90 350.55 5.721.60 5,164.67 60,102.02
September........ 47,657.42 2,312.88 808.15 7,547.02 3,861.36 61,716.83
Total.......... 678,67.52 26,450.41 9,461.68 54,794.80 155,040.47 824.434.88
Total 1924-25.. 586,281.77 35,944.92 13,423.77 37,845.50 57,745.41 731,241.37




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 39

permanent improvements in several ports which were installed at the
expense of the five per cent fund.
Percentages are usually more informative than are other forms of data.
Thus in Table No. 28 the relative importance of the several ports is strik-
ingly illustrated, and comparisons can readily be made of the costs of
operation at each port. It is clearly unfair to classify the cost of an
important permanent improvement as an ordinary operating charge.
Accordingly there has first been computed the percentage cost of current
operations at each port, which is the ratio that operating expenses bear to
customs receipts collected at that port. These percentages reveal that the
most economically operated port was Petit-Goave, followed by Port-de-
Paix, Cap-Haitien and Miragoane in the order named. Of the principal
ports of entry, Gonaives showed the highest operating ratio. The data
under discussion indicate that the three border custom-houses of Ouana-
minthe, Glore and Belladere were again unprofitable, from the fiscal point
of view, operating expenses in the former absorbing almost one-fifth of
revenues, whereas at the latter custom-house the costs of operation were
actually greater than revenues collected. There is no immediate prospect
of improving the foregoing situation, as the three custom-houses are located
on the Dominican border and are maintained for administrative rather
than financial purposes. However, it is interesting to note that in each
case the ratio of costs was materially reduced during 1925-26, and there
is reason to believe that the new tariff, which. imposes a customs duty on
live stock, may result in the profitable operation of Glore and Belladere,
as considerable imports of Dominican cattle are likely to cross at the points
served by those custom-houses.
As customs receipts during 1925-26 exceeded those of the previous
year while operating expenses remained practically constant, it follows
that the percentage cost of customs operations sharply declined from .0188
in 1924-25 to .0165 in 1925-26. In contrast, expenditures for permanent
improvements increased from Gdes. .0016 in the previous year to Gdes.
.0038 in the year under review. Thus total expenditures for the custom-
houses constituted 2.04 per cent of customs revenues collected during
1924-25 and 2.03 per cent in 1925-26, in spite of increased expenditures
on permanent improvements during 1925-26.
As the costs of the central office of the Financial Adviser-General
Receiver approximated those of the previous year while customs receipts,
upon which percentage costs are computed, substantially increased, it fol-
lows that the relative cost of administration 'declined, the operating ratios
being Gdes. .0129 per gourde collected in 1924-25 and Gdes. .0115 in
1925-26.
Therefore total expenditures for administration and customs operation,
including the cost of permanent improvements, constituted 3.18 per cent
of customs receipts in the year under review, a figure which compares with
















TABLE No. 28

DISTRIBUTIOtr OF EXPENDITURES FROM RECEIVERSIIIP FUND, FISCAL YEAR 1925-26


Ratio Cost per Cost per Cost per
Custom to total Customs Cost per Permanent Cost per Cost per
Port receipts customs operation gourde improvements guide Total gourde
receipts collected improvements collected collected


Gourdes Per cent Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Port-au-Prince...................................... 17,746,065.95 48.72 309.650.96 .0174 22,257.88 .0013 331,908.84 .0187
Cap-Haitien .................................... 6.098,458.19 12.56 70,841.95 .0139 8,918.58 .0017 79,755.53 .0156
Cayes ........................................ 3,603,179.70 8.88 60,917.11 .0169 .................. ............ 60,917.11 .0169
Jacmel............................................... 3,5.83.43 8.78 53,749.11 .0151 80,646.17 .0086 84,895.28 .0287
Petit-Gorve......................................... 2,718,263.98 6.70 30,921.21 .0114 14,572.50 .0053 45,493.71 .0167
J4r6mie............................................ 2,043,194.41 5.03 86,791.45 .0180 50.00 .0000 36,841.45 .0180
Gonalves............................................ 1,913,612.80 4.71 40,127.43 .0210 .............................. 40.127.43 .0210
Port-de-Palx......................................... 1,797.636.15 4.43 21,856.60 .0122 35,283.25 .0196 57,139.85 .0318
Saint-Mare......................................... 1,829,706.76 8.28 26,203.56 .0197 362.28 .0003 26,565.84 .0200
Miragoane......................................... 584,132.72 1.44 8,836.14 .0143 .................. ............ 8,356.14 .0143
Aquin............................................ 180,928.53 .44 3,477.88 .0192 19,722.03 .1090 23.199.91 .1282
Ouanaminthe................................... 14,229.77 .03 2,616.05 .1838 18,558.35 1.3042 21,174.40 1.4880
Glore................................................. 1,553.49 .00 1,859.95 1.1973 .................. ............ 1,859.95 1.1973
Belladere............................................. 1,485.86 .00 2,025.01 1.3629 4,674.43 3.1459 6,699.44 4.5088
Total customs operation...................... 40,594,831.74 100.00 669,394.11 .0165 155,040.47 .0038 824,434.88 .0203
Adm inistration ...................................... ........................................................... .............................. 467, 6.66 .011
Total administration and customs operation... .................. ............ .................. ............ .................. ............ 1,292,431.54 .0318
Bank com m ission.................................... ............... ...... ............................................................ 405,948.82 .0100
Total expenditures from five per cent fund......... ............ ....... .......... ............ .................. ............ 1,698,879.86 .0418


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HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER 41

3.33 per cent in 1924-25. This is the lowest cost of operation since expendi-
tures have been classified as at present, with the exception of the fiscal
year 1919-20.
Inasmuch as payments of the bank commission were brought up to date
during 1924-25, by liquidating the commission of two years during that
fiscal period, commission during the year under discussion absorbed exactly
one per cent of customs receipts. All deductions against the receivership
fund therefore amounted to Gdes. .0418 for each gourde of customs receipts.
This operating result was well within the five per cent authorized by the
treaty, even though considerable expenditures were made for permanent
improvements. Probably the latter category of expenditures was not envis-
aged by the treaty as a charge against the five per cent account.
This organization takes real gratification in the operating results of
the office of the Financial Adviser-General Receiver during 1925-26. Not
only was routine business carried on expeditiously and economically during
1925-26, but an operating reserve was created which will be available either
for such unfavorable contingencies as may arise or for additional improve-
ments to the service during subsequent years.
For purposes of comparison, actual expenditures of conducting the
services of the Financial Adviser-General Receiver from 1919-20 to date
are assembled in table No. 29. This table shows that in spite of sharply
TABLE No. 29
COSTS OF CUSTOMS OPERATIONS BY PORTS, AND COSTS OF ADMINISTRATION
PERMANENT IMPROVEMENTS AND TREASURY COMMISSION
FIsoAL YEARS 1919-20 TO 1925-26

Average Average
Port 1919-20 to 1924-25 1925-26 1919-20 to
1923-24 1925-26

Gourdes Gourdes Gourdes Gourdes
quin .......................................... 4,144.35 3,473.83 3.477.88 3,953.85
Bellad re........................................ 898.96 2,000.30 2,025.01 1.217.15
Cap-Haitien................................. 73.190.96 85,065.19 70,841.95 74,551.70
ayes .......................................... 50.932.83 60,765.24 60.917.11 53,763.79
lore............................................ 80.12 2,021.85 1,859.95 1,168.91
Gonalves........................................ 7,507.43 36.831.10 40,127.43 37,785.10
Jaemel ...................................... 48,404.08 48,431.19 53,749.11 49,171.53
Jeremle..................................... 29.439.82 83.749.14 36.791.45 81,105.67
Miragone ............................. ....... 6,098.56 7,615.28 8,356.14 6.637.75
Ouanaminthe................................ 4,180.33 3.481.29 2,616.05 8,857.00
Petit-Goove .................................. 26,449.52 34,106.17 30,921.21 28,182,14
Port-au-Prince ................................ 256,158.43 805,140.81 809,650 96 270.797.63
Port-de-Palx ................................... 17,548.24 19,687.95 21.856.60 18.469,89
Saint Marc.................................... 22,074.54 31.127.12 26,201.56 23,957.63
Total Customs operation.................. 577,888.17 673,495.96 669,394.41 604,618.74
Administrationandcivilpayclerks............ 423,965.80 461,316.07 467,996.66 435,591.68
Total administration and operation....... 1,001,853.97 1,134,812.03 1,137.891.07 1,040,210.42
Permanent improvements................... 122,900.00 57.745.41 155,040.47 118,183.70
Bank commission ......... ....................... 360,211.91 656,980.05 405,948.82 409,141.13
Total expenditures from 5 per cent fund.. 1,484,965.88 1,849,587.49 1,698,379.86 1,567,535.25

increased revenues, involving equal enlargement of the five per cent fund,
the cost of the central office and of the custom-houses has remained rela-
tively constant. Although total deductions from the five per cent account





42 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

in 1925-26 as compared with the average of previous years has somewhat
increased, the greater part of such expansion is accounted for by enlarged
expenditures for permanent improvements and for commission to the
Banque Nationale.
Total deductions against the five per cent fund for the last seven years
have averaged Gdes. 1,567,535.25, and such deductions during 1925-26 were
Gdes. 1,698,379.86, an increase of Gdes. 130,844.61. This is an expansion
over the average of 8.35 per cent, and was much smaller than the expan-
sion in average revenues. To be sure, operating economies should result
from more extensive operations, the general business principle holding true
that operating costs per unit of revenue collected tend to increase at a
smaller ratio than government revenues. Adequate customs facilities do
not, however, bear any definite relation to the volume of business which is
handled, and even the custom-houses on the Haitian-Dominican border
require a certain staff and equipment, although receipts are only nominal.
In Table No. 30 the data presented in the previous table are reduced
to percentages. Whereas the former table presents total expenditures for
various activities of the organization of the Financial Adviser-General

TABLE No. 30
TOTAL COST OF COLLECTING EACH GOURDE OF CUSTOMS RECEIPTS,
FISCAL YEARS 1919-20 TO 1925-26

Average Average
Port 1919-20 to 1924-25 1925-26 1919-20 to
1923-24 1925-26

Gourdes Gourdes Gourdes Gourdes
Aquln....................................... .0209 .0128 .0192 .0192
Belladre. .................................... 4.1225 2.8871 1.8629 2.6063
Cap-Haiten.................................. .0230 .0213 .0139 .0209
Cayes......................................... .0195 .0165 .0169 .0185
Fort Libert6................................. .0975 .............. ............... 0975
Glore............................. ......... 1.8248 3.0370 1.1973 1.7881
Gonalves. ...................................... .0251 .0192 .0210 .0234
Jacmel........................................ .0209 .0158 .0151 .0189
J r6rmie...................................... .076 .0276 .0180 .0803
Miragoane.................................... .0137 .0127 .0143 .0136
Ouanaminthe..... ............................ 1.1820 .4073 .1838 .6673
Petit-GoAve ................................... .0163 .0134 .0114 .0148
Port-au-Prince................................ .0217 .0190 .0174 .0205
Port-de-Paix.................................... .0167 .0161 .0122 .0156
Saint-Marc.................................... .0222 .0248 .0197 .0222
Total customs operation.................... .0217 .0188 .0165 0.203
Administration and civil pay clerks........... .0161 .0129 .0115 .0146
Total administration and operation........ .0878 .0317 .0280 .0349
Permanent improvements.................... .0046 .0016 .0038 .0089
Bank commission............................ .0136 .0184 .0100 .0137
Total expenditures from 5 per cent fund.. .0560 .0517 .0418 .0525


Receiver, the latter shows these operations as the portion of each gourde
collected which was consumed in conducting them. Of most interest is the
constant and considerable reduction in operating ratios. For the Customs
Service this fell from Gdes. .0217 for the average of the years 1919-20 to




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 43

1923-24 to Gdes. .0188 in 1924-25 and Gdes. .0165 in 1925-26. This rep-
resents a total decline of 23.96 per cent. Administrative expenses also
absorbed a relatively smaller proportion of revenues, the figures being Gdes.
.0161 on the average from 1919-20 to 1923-24, Gdes. .0129 during 1924-25
and Gdes. .0115 during the year under review. This was a decline of
28.57 per cent. Total operating expenses of Gdes. .0280 may be regarded
as entirely satisfactory, when it is recalled that the treaty of 1915 con-
templated that five per cent of customs receipts might reasonably be
required for operating purposes.
By reason of certain innovations which were introduced into the method
of accounting for expenditures from the five per cent fund, particularly in
connection with the commission paid to the bank, by reason of the relatively
small sums which accrued to the five per cent fund during the years follow-
ing the European war and by reason of the construction of the finance
office building, total expenditures from the receivership fund were in excess
of five per cent of customs revenues both for the average of the five years
from 1919-20 to 1923-24 and for the fiscal year 1924-25. However, in
1925-26 expenditures were brought well within the operating limit, being
but 4.18 per cent of total customs receipts.
During the fiscal year 1926-27 it is expected that the five per cent limit
will again be exceeded, because of the large construction program which
will be undertaken. This will not signify that expenditures are out of
control, but merely that balances in the receivership fund, derived from
economies of previous years, will be drawn upon for improving the plant
and facilities of the Customs Service. Of particular importance will be
extensive improvements at Port-au-Prince.
There is one additional feature in connection with receivership opera-
tions which deserves attention. After adequate internal revenue legislation
shall have been voted and placed in satisfactory operation this office will
propose the reduction and eventual abolition of export taxes. Export duties
of consequence are imposed on coffee, cacao and logwood, commodities
easily controlled by the Customs Service. Accordingly the cost to the Cus-
toms Service of handling exports is relatively small, and is much more than
covered by the five per cent of export receipts which accrues to the receiver-
ship fund. With the abolition of such taxes, however, there will remain
the necessity of controlling export activities without the receipt of income
from that source. This costs of the entire Customs Service will remain
the same while its operating allowance will sharply decline. Under these
circumstances it may be necessary for the governments of the United States
and Haiti to consider the propriety of providing for the cost of the activities
of the Financial Adviser-General Receiver a somewhat greater amount than
five per cent of import receipts. Nevertheless, if the economic life of Haiti
shows satisfactory development during succeeding years, the import trade
should correspondingly improve without an equal increase in costs of operat-




44 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

ing the Customs Service. Under such circumstances the present operating
allowance, even with the loss of five per cent of present export taxes, should'
be sufficient for the needs of the service.
For completing the record of operations under the five per cent account,
Table No. 31 has been prepared, showing by months and by ports deductions
against the receivership fund. The data also have been reduced to per-
centages, thus permitting a comparison of operating costs in the several
months of the fiscal year. In a general way expenses have little seasonal
variation, although there is a marked cyclical movement in Haitian foreign
commerce. In other words, costs are not appreciably greater in the most
active month nor less in the month of least activity. This is well demon-
strated by average operating costs of Gdes. .0232 for each gourde collected
during the active months of October, November and December, while costs
during the other months averaged Gdes. .0373, reaching Gdes. .0451 in
June, which is the height of the so-called "dead season".

INTERNAL REVENUE SERVICE
The year 1925-26 may be regarded as the first during which the Internal
Revenue Service operated on a normal basis. As the previous year was the
first full fiscal period of the organization's existence, it is obvious that
attention was in great measure devoted to becoming familiar with its new
duties, liquidation of old accounts and the establishment of administrative
precedents. During 1925-26, however, the work of organization was, while
not complete, on a sufficiently satisfactory basis that greater attention could
be given to day to day operations. Furthermore, the personnel of the service
was more familiar with its duties and responsibilities, with the result that
both the treasury and the public were more efficiently served.
Appended to the present publication is the report of the Director Gen-
eral of Internal Revenue for the fiscal year under discussion. This interest-
ing document outlines in detail the problems which the service encountered,
its operating results and its recommendations as to future policy and
practice.
At this point, nevertheless, it is pertinent to state that the financial
situation of Haiti will not be satisfactory until the fiscal policies which have
characterized the past have been radically altered. Though direct taxation
is never pleasant it is quite effective. Tax payers are conscious, even pain-
fully conscious, of the amounts paid into the public treasury and are there-
fore more interested in the manner in which public funds are expended.
There is also less insistence on increased expenditures for needless projects
when it is realized that such projects can be accomplished only by the
imposition of heavier direct taxes.
In previous reports it has been pointed out that the balance between
direct and indirect taxes is not satisfactory, and statements were made to
the effect that direct taxes would be expanded. During the year 1925-26








TABLE No. 31
TOTAL DISBURSEMENTS FROM RECEIVERSHIP FUND, BY MONTHS,
FISCAL YEAR 1925-26


October November December January February March April May June July August te p Total

iGourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Bdministration...... 36,070.80 44,323.20 39,215.71 83,185.84 35,955.22 50,781.96 33,540.51 39,428.87 37,212.56 46,360.63 33,864.08 88,057.78 467,996.66
Bank commission ... ....... ..... t [ I A.. Q Q A I >
Permanent Immipronv. **............ .. ....... .............................. ..................... 405,948.82 405,948.82
meets............. 13,500.8 5,996.75 21,054 08 14,988.08 17,712.55 23,906.86 31,922.52 6,125.88 5,049.24 6,26261 5,164.67 8,861.86 155,040.47
Aquin....... .... 256.00 45.25 26500 276 90 274.15 300.25 286.00 268.00 167.00 47750 269.00 292.83 3,477.88
elladre............ 165.00 168.96 166.25 182.35 165.00 165.00 165.00 165.00 187.45 165.00 165.00 165.00 2,025.01
Cap-Haitien......... 6242.21 5,965.98 5,196.90 5,396.48 5,351.48 5,229.75 4,777.93 6,092.40 9,701.54 4,674.90 4,748.37 7,464.06 70,841.95
Cayes ............. 5,545.25 5,014.65 4,924.00 5,053.45 4,961.50 5,032.70 5,449.88 4,808.15 5,161.35 4,796.55 4,938.80 5,231.33 60,917.11
lore .... .......... 152.80 150.00 155.85 150.00 152.40 156.25 157.50 155.85 150.00 162.25 150.00 167.05 1,859.95
Goalves ........... 4,15523 4,23856 2,440.91 2,872.90 3,138.45 8,122.65 3,262.96 2,997.80 4,323.98 1,855.05 8,690.15 4,028.79 40.127.43
Jacmel............. 4.342.35 4,155.48 4,463.71 4,592.21 5,004.88 4,249.85 4,280.93 4,170.85 4,213.45 8.971.85 6,416.55 3,887.50 53,749.11
J6rmie .............. 2,641.60 2,457.94 2,562.98 2,657.40 2,730.49 2,463.90 3,959.98 6,624.55 2,254.52 2,928.41 2,575.50 2,934.18 86.791.45
lMragofne .......... 598.85 68445 623.20 671.70 825.25 590.05 591.11 622.65 556.40 626.00 654.00 1,362.48 8,35614
Ouanaminthe...... 182.90 175.00 192.78 190.78 175.00 179.50 188.15 170.83 175.00 175.00 458.55 352.61 2,616.05
Petit-Gove ......... 2,64755 2,492.35 3,025.98 2,293.30 2,668.10 2,266.25 2,327.00 2,320.95 ,407.60 1,188.05 2250.00 4,034.0 80921.21
Port-au-Prince...... 26,283.97 25,177.37 27.520.65 27,515.76 27,544.89 26.743.18 23,368.81 24,81.21 30,257.34 23,955.91 22,855.83 24,046.04 309,650.96
Port-de-Paix ........ 1,619.45 1,613.75 1490.45 1,562.60 1,455.00 1,505.00 1,700.75 1,673.75 1,619.50 1,635.25 3,800.40 2,180.70 21,856.60
Saint-Marc .......... 2,316.33 2,148.80 2,499.98 2,157.80 2,135.10 2,256.38 2,118.84 3,601.47 849.73 1,944.61 1,965.70 2,208 82 26,203.56
Total.......... 106,720.66 105,058.49 115,798.43 103,742.50 110,249.41 128,949.53 118,097.87 103,607.71 105,286.66 101,179.57 938966.10 505,722.93 1,698,879.86
Cost per gourde of
customs receipts:
Administration ... .0082 .0095 .0079 .0090 .0099 .0143 .0126 .0146 .0159 .0174 .0148 .0128 .0115
Bank comm ission............. ............ ................ ........ ...................... ......................... ........... ........... ......... .1367 .0100
Permanent Im-
provements..... .0030 .0012 .0041 .0041 .0048 .0067 .0120 .0022 .0022 .0024 .0023 .0011 .0088
Customs operation .0130 .0117 .0110 .0152 .0156 .0152 .0198 .0216 .0270 .0183 .0240 .0196 .0165
Total .......... 0242 .0224 0.280 .283 .0303 .062 .0444 .084 .0451 .0381 .0411 .1702 .0418


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46 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

customs receipts were of such generous proportions, even without changing
the charges on imported and exported commodities, that additional levies
against the population in the form of increased taxes were not regarded as
justifiable. In short it was believed that sufficient deductions from the
income of the population were already being made by the government.
However, plans toward the inauguration of a more adequate and better
balanced tax system were advanced, and it is expected that in either
1926-27 or 1927-28 a comprehensive internal revenue system may be put
into effect. As soon as its productiveness is demonstrated exports will be
relieved of part, if not all, of their present burdens.
Internal revenue receipts in 1925-26 were Gdes. 4,155,170.28, the highest
figure which has been reached in the history of Haiti. Under existing
legislation the Internal Revenue Service is authorized to utilize fifteen per
cent of its collections as costs of administration and operation. Thus
accruals to the operating allowance during 1925-26 were Gdes. 623,607.59,
as appears in Table No. 32. Costs of operation, on the other hand, were
only Gdes. 304,198.76, or less than half of the operating allowance. This
is a very favorable record and reflects credit on the economy and efficiency

TABLE No. 32
OPERATING ALLOWANCE OF INTERNAL REVENUE SERVICE

Fifteen per Expenses
cent of Current from Total
internal expenses previous expenses Surplus
revenues year

Gourdes Gourdes Gourdes Gourdes Gourdes
ust and september, 1924.... 110,195.90 75,254.27 ............ 75,254.27 34.941.63
19 d ............er....... 618,488.92 820,388.02 29,886.54 350,27456 26321486
1925-26........................... 623,607.59 273,904.56 30,294.20 804.198.76 319,408.83


of the Internal Revenue Service. On the first day after the close of the
fiscal year the unutilized balance of the fifteen per cent operating fund was
covered into the treasury. Like other unexpended budgetary credits, this
refund will appear in the next financial statement as unobligated cash.
Details of operating costs of the Internal Revenue Service are presented
in Table No. 33. and percentages of collection costs are also included. It
appears that the Internal Revenue Service was operated at less cost than
during the previous year, and since receipts were slightly greater the
percentage of receipts required for maintaining the service declined con-
siderably. During 1924-25 it cost Gdes. .0856 to collect one gourde of
internal revenue, while in the year under discussion the similar cost was
Gdes. .0732, a decline of 14.48 per cent. If internal revenue receipts
increase there is every reason to expect that the percentage costs of collection
will become progressively less.



















TABLE No. 33
COSTS OF INTERNAL REVENUE SERVICE, BY OBJECTS OF EXPENDITURE, FISCAL YEARS 1923-24 TO 1925-26

Administration and operation Cost per gourde collected

Materials and Transpor- Bank Adminis- Bank
Salaries M ris r Miscellaneous Total traction and Total
supplies station commission operation commission


Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
August and September, 1924 36,518.54 81,285.55 1,463.74 5,986.44 ................ 75,254.27 .1024 ................ .1024
1924-25.................. 208,655.92 26,196.(5 12,414.89 54,761.94 48,245.66 350.274.56 .0789 .0117 0856
1925-26....................... 191,084.27 41,059,28 6,775.04 23,728.47 41,551.70 304,198.76 .0632 .0100 .0782


~_I_____________*______I^ _~ll~r _~___~~_1II~1____I___~;----~?--II.----- _Ip.-~ll





48 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

CUSTOMS RECEIPTS

Customs receipts for 1925-26 reached a figure unapproached in all prior
fiscal periods of Haiti. The total of Gdes. 40,594,831.74 was actually
greater than receipts of the government from all sources during 1924-25.
As that year was unusually favorable in the financial history of Haiti it
follows that the utmost satisfaction can be taken in the income derived from
customs sources during 1925-26. Distribution of customs receipts, as well
as of the other income of the government, is portrayed in Table No. 34.

TABLE No. 34
REVENUES OF HAITI, BY SOUwCES, FISCAL YEARS 1889-90 TO 1925-26

Customs receipts iscella
Revenues receipts
Internal eousea- Total
Imports Exports cea- Total revenues recent

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
1889-90. .................. ... ....... ......... .......................... ........... 31,533,254.85
1890-91............. .............. .............. ..........I....... ..................... 40,868,026.80
1891-92............ .... ..... ......... ............ ...... ..................... .......... 384,799.016.95
1892-93. ............. ............. ............................ ............. ........... 84,880,861.45
1893-94. ........................... ............ ............ .............. ........... 83,853.640.75
1894-95............... ................ ......................... .......... ... 34,917,258.60
1895-96.......... ....... ......... ................................... 28,047,666.65
1890-97. .............. ............. .............. ............. .. ................... 80,665.202.15
1897-98 ............................ ............. .............. ................ .. ...... 2 .7 ,709.25
1898-99 ........... ........................... ....................................... 19,467,977.85
1899-00................ ....................... ......... ............. ........... 24,416,719.00
1900-01. .............. ......................... .......... ............... ........21,986,480.60
1901-02............... .............. .............. .................................. 18,834,716.35
1902-0.. .. ........ .................................................... ....... 17,517.062.85
1903-04. ........................ .............. ........................ .......... 20,087,928.90
1904-05 ................***.***** .......... .................. .. ................. 18,741,365.95
1905-06. ........................ ....................... .........................16,695,679.00
1906-07. ................................. ... ................. 11,977,500.00
1907-08 .............................. ................... ........ 10,524,189.40
1908-09. .................... .................. 15,044,393.45
1909-10.. ....................... ......**** ***............ ........... 23,014,530.50
1910-11........... .. ......... ................ .............. ......................... 520,595.90
1911-12. 18,652,834.70 19,814908.75 .............. 33.465.243.45 912,014.55 .......... 34,877 258.00
1912-13. 15,176.848.80 10,280,211.40 .............. 25,456.560.20 670,522.20 ......... 26127082.40
1913-14. 10,637,856.40 13,413.711.10 .............. 24,051,567 50 706.709.70 ....... 24.758 277.20
1914-15. 8.668,40845 6,441,318.45 262,588.80 15.872.265.70 853533.40 ....... 15725.799.10
1915-16. 12,970,092.55 9.201.376.80 .............. 22,171.468.85 543.610.05 .........22,715,078.90
1916-17. 9,736,057.28 8,473.752.35 5,897.52 18,215,707.15 717.00.60 1.971.95 18,934 684.70
1917-18. 7.784,253.80 7,831.366.55 18,665.10 15.129,2'5.45 911203.40 7,901.90 16,048,390.75
1918-19. 12.264,105.80 16,508,870.20 18,611.90 28.781,087.90 1,159 97400 14,871.55 29,955,933.45
1919-20. 18.898.013.74 18,143,187.45 81.877.91 82,073,029.10 1,886,174.99 38.246.70 83,997.450.79
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. 18,247,038.18 10,077,988.15 41,548.37 23,366.569.70 1,580,246.77 17979.25 24.964,795.72
1922-23. 16,815,500.17 12,812,916.60 64.169.58 29,192,586.35 2,699,443.24 58,071.65 31.950,101.24
1923-24. 19,415.707.84 9,984,701.92 550.497.88 29.950,907.14 2,795,870.53 155.543.66 82,902,821.83
1924-5. 23,452,328.71 10.617,525.63 1,680,164.00 35,750,018.84 4,089926.19 617,722.47 40,487,6700
1925-26 26,169,088 58 12,660,447.87 1,765,295.29 40,594,831.74 4,155,170.28 614,646.08 45,864,648.10

(Fluctuations In the gold value of the gourde prior to its stabilization May2, 1919, have been
calculated and are reflected in statistics of revenue before 1919-20.

This table has been constructed with great care, so as to show the financial
progress of Haiti for a long series of years. Prior to the stabilization of the
currency of Haiti in 1919, exchange fluctuations have been calculated and
adjustments made so as to reduce all values to gourdes of the equivalence
of five to the United States dollar.
The record was carried back sufficiently far to determine the greatest
income which the government had ever enjoyed. Prior to the fiscal year




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 49

1925-26 maximum revenues were attained in 1890-91, and the records show
that during that year a large part of the coffee crop of two years was
exported, thus abnormally increasing governmental income. Thereafter
governmental receipts remained reasonably satisfactory until 1896-97. Then
transpired a period of relatively unsatisfactory revenues which continued
until two years after American intervention, which occurred in 1915. Suc-
ceeding years were materially affected by war conditions, as well as by the
deflation and general commercial disruption which followed the termination
of actual hostilities. Not until 1922-23 may commercial and financial con-
ditions again be regarded as reasonably normal. From that date, and in
fact from 1920-21, revenues have consistently and sharply increased, with
the result that from total revenues of Gdes. 19,946,095.70 in the former
year, the year 1925-26 produced receipts of Gdes. 45,364,648.10, an increase
of 127.44 per cent.
From the first full year of the customs receivership, which was 1916-17,
customs revenues have increased from Gdes. 18,215,707.15 to Gdes.
40,594,831.74 in 1925-26. This was an increase of 122.86 per cent, or on
the average an increase of 13.65 per cent per annum. Most of the expan-
sion occurred in receipts from imports. Such receipts in 1916-17 were
Gdes. 9,736,057.28, while in 1925-26 they had risen to Gdes. 26,169,088.58,
an increase of 168.79 per cent. In contrast, receipts from exports increased
from Gdes. 8,473,752.35 to Gdes. 12,660,447.87, or by 49.41 per cent. Export
taxes are principally imposed on coffee, cacao and logwood at fixed rates
per unit of weight, and the moderate increase in governmental revenues
from exports indicates some increasing diversification in the principal
products of Haiti. That tendency has been clearly evident during several
fiscal years prior to 1925-26, but in the latter year an unusually large coffee
crop temporarily arrested the trend. For example, receipts from imports
increased 11.58 per cent from 1924-25 to 1925-26, while receipts from
exports improved by 19.24 per cent. In the opinion of this office the year
1925-26 was not normal, so far as revenues from exports were concerned,
and it is expected that subsequent fiscal years will more nearly approximate
the tendency which has been evident from 1911-12 to 1924-25.
Thus receipts from imports furnished 57.69 per cent of total govern-
mental income during 1925-26, as compared with 57.92 per cent during the
prior year; receipts from exports amounted to 27.91 per cent in contrast
with 26.22 per cent in 1924-25. Therefore the proportion of receipts derived
from export taxes was somewhat increased. Miscellaneous customs charges
also increased from Gdes. 1,680,164.00 to Gdes. 1,765,295.29. Therefore
total customs receipts of Gdes. 40,594,831.74 constituted 89.49 per cent
of the total income of the government as compared with 88.30 per cent
in the prior year. It is apparent that the importance of customs revenues
was maintained and even increased during the fiscal period under review.





50 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

Under the new tariff practically all miscellaneous customs charges have
been absorbed into a single tax on imports, this unification of duties con-
stituting one of its most outstanding features. Accordingly, in subsequent
years miscellaneous customs receipts will sharply decline. There is no
logical reason why numerous and perplexing charges should be imposed
on the various types of customs operations rather than the assessment of one
charge against imports, that charge to include all revenue which the
government deems it expedient to obtain from imports.
It is always useful to calculate the relative burden which is placed upon
the foreign commerce of a country. Such calculations have been made in
Table No. 35. For purposes of comparison, miscellaneous customs receipts
have been included in receipts from imports. Thereupon total receipts from

TABLE No. 35
RELATION BETWEEN IMPORT AND EXPORT VALUES AND CUSTOMS RECEIPTS,
FISCAL YEARS 1916-17 TO 1925-26

Imports Exports
Year
Value Duty Value Duty

Gourdes Gourdes Per cent Gourdes Gourdes Per cent
1916-17.................. 43.030,428 9,741,954.80 22.64 44,664,428 8,473,752.35 18.97
1917-18................. 50,903,468 7.797,918.90 15.82 38.717.650 7,331,366.55 18.93
1918-19................. 85.588.041 12,277,717.70 14.35 123,811,096 16.503,370.20 13.33
919-20................. 136,992,055 18.929,891.65 13.82 108,104,639 13.143,187.45 12.16
1920-21.................. 59,786.029 9,846,670.30 16.47 82,952.045 8,184,194.70 24.84
1921-22.................. 61,751,355 13.288 581.55 21.52 53,561,050 10,077.988.15 18.82
1922-23................. 70.789,815 16.879,669.75 23.84 72.955,060 12.312,916.60 16.88
1923-24................. 73.480.640 19,966,205.22 27.17 70.881,610 9,984.701.92 14.09
1924-25................. 101,187,825 25,132.492.71 24.84 97,018,810 10.617.525.63 10.95
1925-26................. 94,257,030 26,169,088.58 27.76 101,187,825 12,660,447.87 12.51
Average......... 77,776,669 16,003,019.11 20.57 74,85,421 10,928,940.14 14.69


imports and exports have been computed as a ratio of the value of imports
and exports, respectively.
Though significant by themselves, the data attain greater value when
correlated with the economic and other considerations which explain them.
For example, the proportion which customs duties constituted of the value
of imports was only 13.82 per cent in 1919-20, as compared with 27.76 per
cent in 1925-26. In fact the radical differences in the apparent burden of
import duties is somewhat puzzling until it is remembered that many of
the Haitian duties are specific, and therefore the ratio between duty collected
and value of imports varies in accordance with fluctuating price levels. In
1919-20 maximum prices prevailed, with the result that duties were but a
small fraction of the value of imports. Since that time there has been a
declining tendency in price levels, with a corresponding tendency of customs
duties to reach a greater percentage of import values. Furthermore, in the
fiscal year 1923-24 taxes on imports into Haiti were somewhat increased
by raising the so-called visa tax from one per cent to four per cent of the





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 51

value of imports. This innovation was reflected in part of the year 1923-24,
during 1924-25, and until the revised tariff went into effect in the latter
part of 1925-26.
Under existing conditions this office believes that the government should
obtain as import duties about twenty per cent of the value of imports as a
general average for staple merchandise, with higher rates on articles which
can be produced in Haiti and a somewhat greater percentage on specialty
and luxury articles. Of course if price levels continue to fall the ratio
of duties to values of imports will rise though the actual burden on the
Haitian population will decline. This phenomenon has actually taken place
during 1924-25 and 1925-26.
Financial needs of the government could not be served if duties on
imports and exports should be appreciably reduced, unless alternative taxes
should be developed. In fact the government could productively spend
considerably larger sums than are now available, but the limited financial
resources of the population make the imposition of heavier fiscal burdens
undesirable until the aggregate income of the population has been mate-
rially extended through the better utilization of the natural and human
resources of Haiti. At such time the rather high import taxes would be
less burdensome, and indeed a sharp advance in the total value of imports
through increased purchasing power of the population might make it pos-
sible to reduce existing rates of duty.
All export taxes are on a specific basis, having no relation to the value
of exported commodities. Under these circumstances, the ratio of such
taxes to the total value of exports fluctuates in accordance with the volume
of commodities subject to export taxes and also in accordance with the dis-
tribution of outgoing commerce among the commodities which are subject
to heavy or light export duties. The most striking illustration of the
principle just enunciated was the increase by more than 100 per cent in the
proportion which export taxes constituted of the value of exports between
1919-20 and 1920-21. In the latter year the value of exports was less than
one-third as great as in the former, thus sharply increasing the ratio
between export duties and the value of exports. Subsequent to 1920-21
each year showed a declining ratio until 1925-26. During the latter year
the ratio somewhat increased, due to the fact that a very large coffee crop
was exported, on which a specific fiscal charge per kilogram is imposed,
while lower prices per unit of coffee did not permit the value of exported
coffee to increase as rapidly as did the volume. In view of a further decline
of coffee prices it is anticipated that the percentage of receipts from export
taxes as compared with the value of exports will further increase during
1926-27.
For purposes of comparison customs receipts by months for the period
of the American intervention have been computed in Table No. 36. Such
statistics permit an analysis of the periodicity of commercial movements in





52 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

TABLE No. 36
CUSTOMS RECEIPTS, BY MONTHS, FISCAL YEARS 1916-17 TO 1925-26

Average Average
Month 1916-17 to 1921-22 1922-23 1923-24 1924-25 1925-26 1916-17 to
1920-21 1925-26

Goourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
October... 1.518,926.08 2,266.419.11 2.334,333.47 2,767.890.81 3,402,041.96 4,416,779.02 2278,209.48
November 1,813,232.97 2,746.774.92 3,046,438.97 8,674.196.52 3.532.376.74 4 693,002.47 2.675,895.45
December. 2,195,593.43 2,614.327.78 8,476.350.92 8,793,955 15 4,377,676.90 5,012.369.58 3,025.264.75
January.. 2,308.150.90 2,221.222.54 2.708,034.39 3,317,806.82 4.158,786.58 3,667,244 92 2,761,884.98
February. 2,078,966.06 1,727.043.30 8,069,606.76 2,476,503.60 3.445,665.41 3.633,241.41 2,474,689.08
March .... 2,077.327.60 2,474.184.54 2,840,105.23 2.699.204.86 8.262,219.08 3,565,430.99 2.522773.27
April..... 2,109,606.72 1,952.743.17 2,696,799.51 2.201.294.48 2,632.532.07 2,664,665.97 2,269 606.88
May....... 1.763,034.48 1,734,81582 2.057,070.13 2,065.892.60 2,149,4A9.63 2.695.871.80 1.951,881.24
June...... 1,942,219.96 1,508,16649 1,812,552.83 1813,558.87 1,891.355.90 2,330,906.59 1,906.764.05
July....... 1,444,162.30 1.106,10832 1,437.358.58 1.520.628.69 1,993,652.76 2,657,772.01 1,593.633.19
August.... 1,610.259.38 1,404.575.36 1,661,708.87 1.599.089.95 2,079,270.83 2,286.530.28 1,708.247.22
September 1,569,050.83 1,610,238.35 2,052,226.59 2,020,884.79 2.824,950.48 2,971,016.70 1.932.457.11
Total.. 22,430,530.71 23,866,569.70 29,192,586.25 29,950,907.14 35,750,018.34 40,594,831.74 27,100.756.70

Haiti and permit certain hypotheses to be formulated in regard to condi-
tions governing commercial operations. That the foreign commerce of
Haiti tends to concentrate in the first six months of the fiscal year is at
once apparent. During the ten years from 1916-17 to 1925-26, inclusive,
the first six months has furnished 58.07 per cent of total customs receipts,
leaving but 41.93 per cent as the contribution of the second half of the
average fiscal period. This tendency toward concentration was even more
accentuated during the year 1925-26, during which the months of October
to March, inclusive, accounted for 61.55 per cent of customs receipts for
that year.
Several reasons may be suggested in explanation of the foregoing
phenomenon. In the first place the coffee crop was estimated as coming on
the market some two weeks earlier than is normal. Secondly, in view of
the currency difficulties of France, there was a tendency to hasten the sale
of coffee, most of which is marketed in France, at the very favorable prices
existing in the fall of 1925, rather than to run the risk of a depreciating
franc and a declining general market for coffee. In the third place, certain
members of the commercial community erroneously concluded that the
revised customs tariff would go into effect on October 1, 1925. Accordingly
they placed large orders for merchandise which arrived in Haiti during
the late summer of 1925, and a considerable proportion of these excessive
imports was reflected in swollen customs receipts during the early months
of the fiscal year 1925-26. Needless to say, this latter condition cannot be
repeated in the future. It is useful to note, also, that the merchants who
adopted the shortsighted policy just described lived to regret their action.
As a result of their dearly bought experience there has been less tendency
in subsequent months to inflate inventories and to resort to excessive
employment of credit for commercial operations.
As in 1924-25, the month in which greatest customs receipts were
obtained was December, but the second and third months in importance





HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER 53

were November and October, respectively, whereas during the previous year,
as well as for the ten year average, the second month was January and the
third November. The month of lowest customs revenue was August, differ-
ing from the previous year, in which June was the low month. But for the
entire period of the receivership the month of least customs receipts has
been July, while next to the lowest receipts have been returned by August.
Customs receipts by ports during the receivership accurately reflected
the economic progress which has taken place in the several sections of the
republic. Requisite data for comparing the different districts are found in
Table No. 37. In a general way it may be stated that all of the major
ports have increased their commercial operations since 1915, such develop-
ment being reflected in enlarged customs receipts. Of outstanding import-
ance has been the expansion of commerce at Cap-Haitien, Cayes, Gonaives,
Jacmel, J6r6mie, Miragoane, Petit-Goave, Port-au-Prince, Port-de-Paix and
St. Marc. In the case of Jeremie the increase was approximately 100
per cent.
Compared with the previous fiscal year customs receipts also substan-
tially increased in Cap-Haitien, Jeremie, Jacmel, Petit-Goave, Port-au-
Prince and Port-de-Paix, and a small increase was shown at St. Marc.
Declines appeared at Aquin, Cayes, Gonaives and Miragoane. It is difficult
to state with assurance the reasons for the diminutions in question, but
general information makes it possible to suggest the following considera-
tions. In the case of Aquin, undoubtedly the reason for declining com-
mercial activity was the decision of the steamship companies during 1925-26
to omit that port from their schedules. For several months practically no
ships from foreign ports have touched at Aquin, its commerce being there-
fore confined to deliveries of commodities by coastwise vessels. Conse-
quently, even if the quantity of merchandise originating in Aquin or
destined for that port had remained normal, import and export receipts
arising from such commodities would not be credited to Aquin but to the
ports of entry or of embarkation where the merchandise arrived or was
shipped from Haiti. However, there are good reasons for believing that the
commerce of that port actually did decline, even including merchandise
received or dispatched by means of coastwise vessels.
That the commerce-of. Cayes was reasonably satisfactory, and indeed
only slightly inferior to that of the previous year was somewhat unexpected.
This was partly due to the fact that Cayes handled the bulk of foreign
commerce previously credited to Aquin. For several years Cayes has been
the center of the emigration traffic to Cuba, with the result that a con-
siderable proportion of the productive population of the district has dis-
appeared. Declining commerce has therefore occurred. In fact, were it not
for the considerable purchasing power introduced into the region by return-
ing emigrants, an even more drastic recession would have occurred.




















TABLE No. 37

CUSTOMS RECEIPTS, BY PORTS, FISCAL YuBAS 1916-17 To 1925-26


A q u ia ... ....... ... ............ ..... ....
Belad~re ..................................
Cap-Haiten .......... ............
Cayes...............................
Fort Libert6.......................
Glore............. ...... .........
Gonlves...................... ...........
Jacmel...................... .........
J6rtmie............ .......... ...........
MiragoAne...............................
Ouanaminthe.............................
Petlt-o&ve.............................
Port-au-Prince......................
Port-de-Pax ........... ...........
Saint-Marc..............................
Total.. ...............................


Average 1921-22
1916-17 to 1920-21 1921-22


Gourdes
124,805.62
3,280.13
8,179 095.89
1,910,474.91
62,108.75
501.73
1.372,395.15
2,076,404.15
925,748.72
275,744.84
10.260 12
1,221,660.24
9.540.425.27
925,723.20
799,520 56


Gourdes
82,730.86
227.17
3,009,051.87
1,868.756.88
8.187.12
389.24
1,503,659.07
2,109,611.22
563,893.16
361,735.59
3,425.04
1,274.805 87
10,759,378.67
874,426.15
951,791.84


1922-23 I 1923-24


Gourdes
265,202.82
151.24
8.262,065.03
2,995,875.03
69,268.22
1,068.42
1,723.047 33
2,886,990.06
761.453.75
678,225.83
4,474 59
2,300,136.29
12,150,442.85
1,127,215.90
966,969.49


Gourdes
811,694.14
711.89
2,879.275.29
3,870,369.87
205.85
899.12
1,758.531.05
2,668,272.62
1,010,686.47
576,871.77
6,005.98
1,978,187.51
12,477,230.83
1,238,443.17
1,174,021.58


1924-25


Gourdes
271,407.86
692.84
3.982,286.77
3,687,849.55
665.73
1.915,949.58
3,064,238.65
1,220.315.09
599,504.85
8,546 24
2,532,358.86
15,986,578 64
1,223.773.34
1,255,850.84


1925-26


Gourdes
180.928.53
1,485.86
5.098,458.19
8,603,179.70
. ......... ... .
1,553.49
1,913,612.80
3,562,383.43
2,043,194.41
584,182.72
14,229.77
2.718.263.98
17.746,065.95
1,797,636.15
1,829,706.76


22,428,148.78 23,866,569.70 29,192,586.35 29,950,907.14 35,750,018.84 40,594,831.74


0
Average
1916-7 to 1925-26


Gourdes
173.599.23
1,966.97
3,412,661.66
2.557,840.55 t
47,900.62
708.47
1,567,677.56 .
2.467.851.67
1,022.826.15
417,869.19 8
8,798.22
1,691,155.35
11,682,182.28
1,089,011.07
967,594.83
27,109,143.34 .
848


I- -- I -. -I----





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 55

Customs receipts at Gonaives and St. Marc were affected by less satis-
factory prices for cotton, one of the chief exports from those ports. Mira-
goane also failed to record increasing commercial activity, as reflected by
customs receipts, but adequate reasons for this situation cannot be
suggested.
As to Cap-Haitien, Jacmel, Jer6mie, Port-au-Prince and Port-de-Paix
gratifying increases in customs revenues occurred. At all of the ports men-
tioned the outturn of coffee was particularly satisfactory, and at J6remie
cacao was also considerably in excess of normal. In addition, the general
effects of sustained law and order and productive public improvements are
being felt to a continually greater extent. Little argument is required to
demonstrate that as the standard of living advances above the minimum of
subsistence and as economic reserves are created both for individuals and
the state, a more uniform flow of business may be expected.
Customs receipts are classified according to sources in Table No. 38.
This presentation of financial data is interesting because it shows the
relative importance of the import and export trade and because from study

TABLE No. 38
CUSTOMS RECEIPTS, BY SOURCES AND PORTS
FISCAL YEAR 1925-26

Port Imports Exports Miscellaneous Total

Gourdes Gourdes Gourdes Gourdes
Aquin......................... 1,785.11 175.814.30 8,829.12 180,928.53
Bellad4re....................... 1,485.86 ................................... 1,485.86
Cap-Haitien.................... 2,839.254.04 2,050.679.30 208,524.85 5,098,458.19
Cayes ....................... 2,430.324.62 982,891.95 189,963.18 3,603,179.70
lore........................... 1.468.49 85.00 .................. 1,558.49
Gonalves....................... 950.576.60 877,210.30 85,825.P0 1,913,612.80
Jacmel....................... 1,65.,972.07 1,747,951.40 128.459.96 8,562,383.43
J6r6mie........................ 837,728.29 1,146,072.40 59,893.72 2,043,194.41
MiragoAne............... ... 254,522.23 300 845.05 28,765.44 584,182.72
Ouanaminthe................... 18,19.50 569.77 520.50 14,229.77
Petit-Goave.................... 768856 69 1,882,092.50 67,314.79 2,718,263.98
Port-au-Prince................. 14,782 439.86 2,122.002.60 841,62399 17,746,065.95
Port-de-Paix................. .. 774,960.79 951,268.70 71,406.66 1,797,636.15
Saint Marc.... .............. 826,574.93 422,964.60 80,167.23 1,329,706.76
Total........................ 26,169,088.58 12,660,447.87 1,765,295.29 40,594,831.74


of such statistics certain conclusions as to the type of commerce in the
several districts of the republic may be derived. From the point of view
of fiscal significance Port-au-Prince far outranked other ports, contributing
43.71 per cent of total customs receipts in 1925-26. Some five-sixths of
such receipts were obtained from imports. Export duties received through
the custom-house at Port-au-Prince, though the largest in the republic,
exceeded those obtained from Cap-Haitien, from Petit-Goave and from
Jacmel by only relatively small sums.
On the whole it may be stated that Port-au-Prince, Cayes and St. Mare
tend to be ports of import and Cap-Haitien, Jacmel, Jer6mie, Petit-Goave





56 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

and Port-de-Paix ports of export. However, the foregoing statements must
be modified by the fact that such ports as Petit-Goave, Jacmel and Jer6mie
ship large quantities of coffee and cacao on which substantial export duties
are paid, whereas at Gonaives, Port-au-Prince and St. Marc an appreciable
portion of exports is composed of cotton and sugar, on which the export
duties are negligible. Thus strict comparisons are impossible.
Table No. 39 presents customs receipts by sources and also by months
for the fiscal year 1925-26. The figures in the table are useful to demon-
strate those periods in which imports and exports tend to be concentrated.
From the point of view of revenue there is far less fluctuation in imports

TABLE No. 39
CUSTOMS RECEIPTS, BY SOURCES AND BY MONTHS, FISCAL YEAR 1925-26

Month Imports Exports Miscellaneous Total

Gourdes Gourdes Gourdes Gourdes
October ....... ........... 2,971.983.05 1,250.630.75 191,16522 4,416,779.02
November...................... 2.703,106.15 1,799.670.85 190,225.47 4.693.002.47
December ..................... 2.943,549 20 1,863,048.80 205,772.08 5.012.369.58
January.... ............. 1,899,548.16 1.685.348.15 132,348.61 8,667,244.92
February...................... 1.892,375.85 1,596.36455 144.501.51 3.633,241.41
March....................... 2,131.614.46 1,208.437.24 225,379.29 3.565,430.99
April ............ ... 1,647,076.69 849,602,62 167,986.66 2.664,665.97
May................... ....... 1,901,189.87 656,155 36 138.527.07 2 695,871.80
June .......................... 1,586,52.86 603 828.85 140.124.88 2.330.906.59
July.......................... 2,171,357.41 346,018.85 140.395.75 2,657.772.01
August......................... 1.918,536.74 293,563.85 74,429.69 2.286,530.28
September...................... 2,401,799.14 557,778.50 11.439.06 2,971,016.70
Total..................... 26,169,088.58 12,660,447.87 1,765,295.29 40,594,831.74


than in exports. For example, during 1925-26 the month of highest import
receipts was October, with Gdes. 2,971,983.05. June produced the smallest
receipts from imports, or Gdes. 1,586,952.86, a decline of somewhat less than
fifty per cent. As to exports the month of greatest governmental receipts
was December, with Gdes. 1,863,048.30, with lowest receipts during August
with Gdes. 293,563.85, or approximately one-sixth as large as during the most
active month. Though export values do not show as wide fluctuations as
customs receipts from exports, the statistics are sufficient to indicate the
great importance of a better balance in the export activities of Haiti. Crops
should be developed which would provide a continuous flow of purchasing
power throughout the year and thus eliminate the present very decided
"dead season". Full prosperity cannot attend the country as long as the
population is relatively idle for several months of the year. Among indus-
tries which would seem to complement those such as coffee, cotton and
sugar, which tend to be concentrated in the first eight months of the fiscal
.year, there might be mentioned sisal, cassava, bee-keeping, live stock pro-
duction, rubber production and the growing of certain types of fruits and
vegetables. Development of this diversification of production is being con-
ducted by the Agricultural Service, and there are sound reasons for believ-




HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 57

ing that a better balance in both the types of products and in the seasonal
distribution of those products will ultimately be accomplished.
On the basis of total customs revenues the distribution of receipts from
imports, exports and miscellaneous sources is reduced to percentages in
Table No. 40. Revenues obtained from imports during 1925-26 furnished
a smaller proportion of the total, and the same was true of receipts from
miscellaneous customs sources. Export taxes, on the contrary, were rela-

TABLE No. 40
DISTRIBUTION OF CUSTOMS RECEIPTS, FISCAL YEARS 1916-17 TO 1925-26

Receipts Receipts iscel-
Year from from slos Total
Year customs
Imports exports receipts

Per cent Per cent Per cent Per cent
1916-17 ........................ ............. .. ..... 58.45 46.52 .03 100.00
1917-18............................................. 51.45 48.46 .09 100.00
1918-19.................................................. 42.61 57.34 .05 100.00
1919-20 ................................................. 58.92 40.98 .10 100.00
1920-21 ...................................... .......... 54.44 45.69 .17 100.00
1921-22................................................ 56.69 48.13 .18 100.00
1922-23................................................ 57.60 42.18 .22 100.00
1923-24 ................................................ 64.83 33.34 1.83 100.00
1924-25 .................................................. 65.60 29.70 4.70 100.00
1925-26....................... ..................... 64.46 81.19 4.35 100.00
Average .............................. ....... 58.14 40.32 1.54 100.00


tively more important. As most countries do not consider it expedient to
tax exports, it is undoubtedly sound policy for Haiti to reduce governmental
receipts from exports, ultimately leaving customs revenues to be derived
from imports alone.
For the sake of convenience, total receipts of the Haitian government,
classified according to sources from which derived, months in which col-
lected and geographical distribution are analyzed in Table No. 41. From
this table it is possible to ascertain not only the chronological sequence of
revenues throughout the fiscal year, but also to determine whether a given
district is equally important from the point of view of customs receipts,
internal revenues and miscellaneous receipts. It appears that Port-au-
Prince is relatively more important from the point of view of internal
revenues than from that of customs. Some two-thirds of internal revenues
were credited to the Port-au-Prince district, chiefly because all emigration
fees are payable at Port-au-Prince and also because of the leading position
of that district in connection with such important items as hydraulic
receipts, telephone and telegraph receipts, stamp receipts and income taxes.
Second in rank was Cayes, with Cap-Haitien third, and the other ports
of rather minor importance. Undoubtedly the fiscal prominence of the dis-
tricts other than Port-au-Prince will be greatly increased at such time as
taxation on land may be introduced as a vital part of the revenue system
in Haiti.




S HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

















TABLE No. 41

TOTAL RECEIPTS OF HAITIAN GOVERNMENT, BY SOURCES, MONTHS AND PORTS, FISCAL YEAR 1925-26


Ports


Customs receipts:

A in .................................

GBlore..... ........................
Conalves..........................
Jacmel ...............................
J6rme.................................
Miragon ne.............................
Ouanaminte .........................
Petit-Gove...........................
Port-au-Prince.... ......... .........
Port-de-Paix .......................
Saint Marc...................
Total customs receipts............
Internal revenue receipts:
Administration-Port-au-Prince.....
Aqun .............................
Cap-Haitien........................
Cayes ........... .....................
Gonalves.........................
Jacmel............................
Jr6mie .........................
Miragoane ......................
Petit-GoAve.......................
Port-de-Paix.......................
Saint Mar...................
Total internal revenue receipts....
Miscellaneous receipts:
Port-au-Prince........................
Total revenue receipts..............


October


Gourdes
9,970.02
52.39
622,810.03
411,265.23
19.58
221,893.45
397,510.67
234.605.18
63,724.63
880.56
297,257.01
1,849,920.14
228,47-.56
78,397.57


November December January February


Gourdes
36,187.49
73.00
687,066.38
518,164.46
6.00
232,188.58
519.998.78
285,899.12
70,441.85
563.40
890,030.80
1,649,453.25
211.066.16
92,363.20


Gourdes
28,551.91
49.56
619,738.57
483,295.20
8.50
246,168.64
557,492.45
257.855.41
79,782.94
319.81
311,951.47
1,971,113.72
805,881.83
150,155.57


Gourdes
21,527.97
69.72
498,194.86
369,198.32
7.09
194,742.58
375.919.79
223,508.39
59,242.77
298.36
325,397.62
1,315,824.35
158,481.49
125,331.61


Gourdes
28,664.87
25.84
463,425.39
817,108.06
218.28
195,771.59
386,261.54
188.912.43
69,089.84
34700
316,494.66
1,410,144.77
135.685.38
121,092.26


March April May


Gourde8
15,054.70
57.17
385,779.46
839,778.41
420.50
155,419.71
322,284.03
131,148.76
89,756.84
506.30
801,828.66
1,516,449.43
192,831.42
164,116.10


Gourdes Gourdes
17,356.40 3,913.15
41.20 41.79
297,029.11 226.108.75
216,347.60 156,930.04
368.45 73.66
137,365.86 95,731.89
203,545.45 209.517.29
125,617.36 135.218.23
87,276.68 40,622.23
321.75 357.76
230,194.72 125,559.92
1,096,018,62 1,517,990.72
154,854.06 80,742.43
148,328.71 103,063.94


June July


Gourdes
1,278.30
62.50
300,574.20
173,864.10
33.72
114,143.38
154,230.34
96,583.03
45,574.08
2,154.34
133,761.14
1,121,893.04
90,475 01
96,279.41


Gourdes
423.32
162.69
364,368.34
226,162.81
25.68
82.809.12
144,395.97
120,585.95
29,290.42
682.04
95,894.21
1,424.006.96
62.642 80
106.8321.70


August September Total


Gourdes
12,288.84
307.75
244,674 37
146,304 49
148.14
75,157.75
107,946.24
101,041.92
16,248.45
4.615.70
79,920.62
1,360,517,68
69,894.86
67,463.47


Gourdes
5,707.56
542.25
388,688.73
244,760.98
223.89
162.220.25
183.280.88
142,718.63
33,082.99
8.182.75
109,973.15
1,513,233.27
106.608.15
76,793.22


Gourdes
180.928.53
1,485.86
5,098.458 19
3,603,179.70
1,553.49
1,913,612.80
3,562,383.43
2.043.194.41
584,132.72
14,229.77
2,718,263.98
17,746,065.95
1,797,636.15
1,329,706.76


4,416,779.02 4,693,002.47 5,012,869.58 3,667,244.92 3,633.241.41 3,565,430.99 2,664,665.97 2,695,871.80 2,330,906.59 2.657,772.01 2,286,530.28 2,971,016.70 40,594,831.74


380,462.08
3,227.37
49.963.44
52,494.08
26,300.60
26,713.90
24,821.39
6,121.44
26,238.62
20,536.58
22,396.60


503,278.60
1,665.87
25.498.05
18,870.20
9,855.84
11,884.69
9,108.60
2.394.34
7,808.70
8,051.51
6,818.71


196,921.76
1,135.66
27,695.65
21,814.83
18,239.76
11.973 86
10,783.51
8.288.74
9,241.28
11,090.65
9,284.28


249,969.39
951.67
19,182.87
13,754.86
11,110.42
13,141.66
8,728.17
2,682.40
8,730.17
5.882.74
7,706.51


197,388.86
933.20
19,309.96
14,912.33
9,828.36
11,732.70
7,773.63
2,187.39
8,462.03
7,701.02
9,733.45


164,006.25
956.95
19,346.11
16,455.75
12,592.67
12,690.99
6,484.68
2,633.27
7,169.64
6,650.80
11,792.94


183,337.50
2,159.27
31,670.00
31,146.36
15,831.85
20,570.63
8.539.88
3,607.62
16,237.44
9,548.84
15,256.38


124,860.77
844.61
14,829.83
25,016.36
9,147.54
9,653.99
5.054.10
2,268.62
6,03043
6,041.25
7,919.32


154,829.22
844.29
15,094 36
26,708 40
9,062.53
16.908 55
5,065.10
2,712.48
4,788.46
8,259.92
8,082.55


247,810.64
1,031.64
16.43387
80,617.33
8,416.99
8,400.53
6,863.54
2.086.04
15,123.68
6,447.92
7,143.95


179,430.42
2,161.16
15.167 21
19,393 33
8,025.83
8,001.97
6,384.21
2,233.44
5,378.37
6,035.33
5.834.77


220,708.00
1,705.79
18,633.21
15,004.44
8.446.43
9,394.26
5.759.82
1,630.34
5,692.30
5,062.29
5,218.75


2,803,002.99
17,617.48
267,824.56
286,188.27
141,358.82
161,067.73
104.866 13
33.846.12
120,901.12
101,308 85
117,188.21


639,276.10 604,735.11 316,469.98 841,840.86 289,962.43 260,780.05 337,905.27 211,666.82 252,355.86 349,876.13 258,046.04 292.255.63 4,155.170.28

20,734.54 61,902.00 42,737.90 58,605.10 47,623.80 63,767.70 89,051.68 27,571.55 32,855.40 93,975.25 64,387.85 61,433.31 614 646.08
5.076,789.66 5,359,639.58 5,371,57746 4,067,690.88 3,970,827.64 3,889.978.74 3,041,622.92 2,935,110.17 2,616,117.85 3,101,62339 2,608,964.17 3,324,705.64 45,364,648.10


Non-revenue receipts................. .............. .............. 400.00
Total receipts....................... 5,076,789.66 5,359,639.58 5,371.977.46


1,000.00
4,068,690.88


200.00
8,890.178.74


200.00
2,935,310.17


800.00
3,325,505.64


2,600.00
45,367,248.10


8,101,623.39


........ 1....
2,608,964.17


.3,0,82............
3,970,827.64


3,041,622.92


2,616,117.85






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 59

Full details of customs receipts by sources, by months and by ports of
entry for imports and of expedition for exports are presented in schedule
No. 3, appended to the present report.*


INTERNAL REVENUE RECEIPTS

Internal revenue receipts, and their relation to the total income of the
government have already been presented in Table No. 34. Sources from
which such receipts were derived and their comparison with similar collec-
tions in previous years are shown in Table No. 42. Receipts from emigra-
tion continued to constitute the largest single source of internal revenues,
equalling 24.30 per cent of the total.
In fact the relative importance of* emigration taxes slightly increased,
as compared with the previous fiscal year and with the average from
1919-20 to 1925-26. Though this source of revenue has shown a high degree

TABLE No. 42

INTERNAL REVENUE RECEIPTS, BY SOURCES, FISCAL YEARS 1919-20 TO 1925-26

Average Average
Sources 1919-20 to 1924-25 1925-26 1919-20 to
1923-24 1925-26

Gourdes Gourdes Gourdes Gourdes
Circulation tax on bank notes......... ......... 34,615.93 53.827.22 44,221.75
Consular fees.......................... 81,728.11 152,914.40 157,080.30 102,662.18
Court fees............................. 7,147.06 7,919.87 8.293.60 7,421.26
Diploma fees........... .......... .................. 574.75 2,650.00 1,612.87
Documentary recording fees........... 252,579.03 288 784.19 304.868.31 265,149.66
Emigration taxes................... 599,710.50 945.022.90 1,009.867.50 707.66.12
Fines and penalties................... 1.886.00 24,77082 4,222.25 5,489.01
Income tax............... ......... 352.263.18 625,086.64 503,20-.81 412.800.76
Irrigation tax......................... 6.995.20 8,543,14 11,027.95 7,792.44
Occupational tax on foreigners....... 175,397.55 208.445.27 243,207.51 189.805.79
Official gazette................ .. 1,071.89 1,220.20 1,02500 1,086.97
Sale of official publications........... ....... ........ 344.35 355.25 349.80
Patent and trade mark fees............ 6,884.50 5,700.00 15,982.50 8,015.00
Post office box rentals .............. 7521.61 11,34890 12,12925 8,726.60
Public auction fees............... .. 5.09512 1.463.34 2,612.06 422.14
Public land rentals.................... 74,668.87 177,919.02 191,390.71 106,093.08
Exchanges of land............ .... ............ ............... 825.00 325.00
Stamp receipts:
Bank checks......................... 7.987.74 15,91540 18,280.80 10,590.62
Commercial account books.......... 2,90872 4,643.20 6,043.89 8,604.38
Documentary stamps.............. 185.179.25 871,795.54 403.171 62 242,980.48
Postage stamps.......... .......... 128547.81 195.755.00 197,485.43 147,997.06
Stamped paper...................... 107,518.78 55.620.51 52,565.15 92.254.22
Stock and bond taxes ................. 2.956 23 55,090.40 63,089.91 40,424.85
Telegraph and telephone service....... 176,774.07 541,103 31 580,979.77 286,564.77
Visas of manifests .................... 5.932 95 5.237.50 3.680.00 5.511.75
Vital statistics fees.................... 55,347.h2 04,034.03 90.531.14 65.900.61
Water service.......................... 179,807.97 240,553.54 216,222.78 193.330.88
Miscellaneous.......................... 175,381.22* 15.495.04* 1,5%5.17 127,707.75
Total................................. 2,630,790.68 4,089,926.19 4,155,170.28 8,086,506.20

*Includes steamship passenger tax which was replaced by documentary stamp tax in January,
1925.

of stability and productivity for several years, in the very nature of the
case it cannot be regarded as either a proper or a reliable source of govern-
mental income. Its preeminence in the internal revenue system merely

See post, pages 161-164.





60 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

accentuates the unsatisfactory condition of the entire internal revenue
structure of Haiti.
Second in importance were telephone and telegraph receipts, though in
1924-25 second place was occupied by income taxes. Encouragement can be
obtained from the persistent and rapid growth of the telephone and tele-
graph system, as exemplified by revenues obtained from that service. Not
only does such increase indicate added prosperity in Haiti, but the service
itself is a civilizing and modernizing factor of primary utility. Receipts
from the income tax declined during the year under review, but this was
largely technical and without special importance, as during the previous
year income taxes in arrears for considerable periods of time had been
collected. There is, nevertheless, a possibility of further decline in income
tax receipts because of the fact that numerous foreign business men, par-
ticularly Syrians, are becoming naturalized as Haitians. In this manner
they escape the income tax of four per cent which is imposed on foreigners
and are required to pay but two per cent, which is the rate for Haitians.
It should be noted that the income tax on corporations, either Haitian or
foreign, is the same, namely four per cent.
Third in magnitude in the internal revenue structure were receipts from
documentary stamps, which yielded Gdes. 403,171.62, a slight increase
from the previous year, and well above the seven year average. Documentary
stamps are, at best, a poor source of revenue as they are difficult to control,
vexatious in effect and relatively unproductive. Rather than to attempt to
increase the revenues from this source, many existing requirements as to
documentary stamps should be abolished. Of a slightly different nature
are documentary recording fees, which were fourth in importance among
Haitian internal revenues. Such fees represent a service performed and are
accordingly justifiable, provided that the fee and the service are reasonably
commensurate.
Other internal revenues of moderate importance were the occupational
tax on foreigners, which should be abolished, receipts from the Hydraulic
Service, which are likely to expand, particularly with the introduction of
water meters, receipts from postage stamps, which should develop in accord-
ance with the improvement of economic and social conditions, rentals from
public lands, which might easily be doubled as soon as present incongruous
legislation and impractical procedure for administering such lands is
replaced by well considered policies, and consular fees which are, perhaps,
a necessary evil and a venerable part of the fiscal arrangements of most
countries.
Considered as a whole there are too many varieties of internal revenues
in Haiti, and existing revenues are not sufficiently productive. Many
existing internal taxes should be repealed, and certain new imposts should
be inaugurated, the latter being of a productive and general character.
Particularly is this the case because several existing internal revenues are





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 61

not of a nature to expand with the growth of economic resources of the
republic. On the contrary, such fiscal charges as a tax on land and the
production and sale of alcohol would almost certainly reflect increased pur-
chasing power and, consequently, tax paying ability on the part of the
Haitian population.
It is the hope of this office that Haiti may within a short time become
a model so far as its revenue structure is concerned. At present that struc-
ture is not so soundly devised as are those of many Latin-American coun-
tries, though in most all such countries the proportion of total income
obtained from internal taxes is inadequate.

MISCELLANEOUS RECEIPTS
Miscellaneous receipts constituted a pleasant surprise during 1925-26,
as shown by Table No. 43. During the previous year unusually large inci-
dental receipts had been covered into the treasury, and it was the expectation
of this office that such receipts during 1925-26 would be sharply inferior.
This was not the case. Due to attention in the distribution of the cash

TABLE No. 43
MISCELLANEOUS RECEIPTS BY SOURCES AND BY MONTHS
FIscAL YEAR 1925-26

Interest on Converst
tMonth g rnmna Cnv o0n Miscellaneous Total
Month governmental of Francs
deposits

Gourdes Gourdes Gourdes Gourdes
October ........................ 20,652.85 .................. s81.9 20.734.54
November..................... 22,549.50 89,341.25 11.25 61.90200
December ..................... 25,681.65 17,005.00 51.25 42.737.90
January....................... 28,794.15 17.741.25 12,069.70 58,605.10
February...................... 29,868.80 17.69375 61.25 47,623.80
March......................... 23.713.10 89,992.40 62.20 63,767.70
April ......................... 28,798.60 5,041.25 5,211.83 89,051.68
May............... ... ... 27,540.65 .................. 0.90 27571.55
June ........................... 2,121.85 .................. 74.05 32.855.40
July............................ 43.221.40 50,71785 86.00 93.975.25
August......................... 50,332.90 13,990.80 64.65 64,887.85
September ..................... 45,156.05 18,281.45 2,995.81 61,433.31
Total..................... 878,431.00 214,804.50 21,410.58 614,646.08

balances of the treasury receipts of interest on deposits continued upon a
productive basis, amounting in 1925-26 to Gdes. 378,431.00, as compared
with Gdes. 394,725.01 in the previous year. As considerable treasury bal-
ances have now been'invested in obligations of the state, on which interest
will be regularly received and accounted for as miscellaneous income, it is
probable that interest on governmental deposits will be greater in 1926-27
than in any previous year, as, obviously, the rate of return on such securities
is considerably greater than the interest allowed on cash and time balances
by the depositaries of government funds.
During 1925-26 few holders of the loan of 1910 presented their bonds
for payment, with the result that funds in francs for the redemption of






62 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

that loan remained on deposit with the paying agent. Consequently, the
income of the Haitian government from interest on those deposits con-
tinued in substantial volume, amounting in 1925-26 to Gdes. 214,804.50,
more than double similar receipts in 1924-25.
As various decisions in the French courts on similar points have com-
pletely sustained the position of the Haitian government to the effect that
tender of notes of the Bank of France constitutes a proper liquidating
medium for the 1910 loan, it would appear that the holders of those securi-
ties are not following their own best interests in continued failure to accept
payment for their bonds which have been called in accordance with the
terms of the issue.
In 1924-25 certain non-recurrent items of considerable magnitude
accrued to the treasury, the total amounting to Gdes. 151,562.01. These
items explained the unprecedented figure for miscellaneous receipts which
was recorded in that fiscal period. During 1925-26 such incidental receipts
were unimportant, and will probably continue to be negligible in future
years.
NON-REVENUE RECEIPTS
Non-revenue receipts during 1925-26 were insignificant, consisting prin-
cipally of deposits by notaries. Therefore such receipts are not classified in
detail, either as to source or as to time of receipt.
In Table No. 44 are summarized by ports for customs receipts and by
financial districts for internal revenue receipts, the total income of the
TABLE No. 44
REVENUE AND NON-REVENUE RECEIPTS, BY PORTS OR FINANCIAL DISTRICTS
FiISCAL YEAR 1925-26

Ports Customs Reene Miscellaneous Total
Ports Revenue

Gourdes Gourdes Gourdes Gourdes
Aquin........................ 180,928.58 17,617.48 ................ .. 198. 46.01
Bellad re ...................... 1,485.86 .................. .................. 1,485.86
Cap-Haitien................... 5,098,458.19 267,824.56 ................. 5.366,282.75
Cayes........................... 8,603,179.70 286,188.27 ................. 8,889,367.97
Glore........................... 1,558.49 ................................... ..1,53.49
Gonalves ..................... 1,913.612.80 141,858.82 ...................... 2,054,971.62
Jaemel....................... 8,52,383.43 161.067.783 .................. 3,723,451.16
J6r6mie ........................ 2,043,194.41 104.866.13 .................. 2,148,060 54
Miragoane.................... 584,132.72 33,846.12 ................. 617,978 84
Ouanaminthe ................ 14,229. 7 ........... ...... .................. 14229.77
Petit-GoAve ..................... 2,718.263.98 120,901.12 .................. 2.839.165.10
Port-au-Prince....... .......... 17,746,065.95 2,803,002.99 614,646.08 21,163.715.02
Port-de-Paix................... 1,797,636.15 101,808.85 .................. 1,898,945.00
Baint-Marc..................... 1,829,706.76 117,188.21 .................. 1,446,894.97
Total revenue receipts. ... 40.594,831.74 4,155,170.28 614,646.08 45,864,648,10
Total non-revenue receipts. ................................. ................... 2,600.00
Total receipts .............. .................. .......... ......................... 45,367,248.10

Haitian government during 1925-26. The principal fact of importance
reflected by this table is the outstanding prominence of the capital in the
financial structure of Haiti. It presents excellent evidence that continued
attention should be given to developing the other districts of the republic.





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


GOVERNMENTAL EXPENDITURES
Correct concepts of the trend of expenditures of the government can
be obtained only by following such expenditures through a series of years.
Unfortunately this is impossible in the case of the disbursements of the
Haitian government. Even during the period of American intervention
expenditures in the earlier years are not comparable with the accounts
which are at present carried. Details for the years 1916-17 to 1922-23
appear in Table No. 45. This table indicates that funds in increasing
amounts were being devoted to public works and to public health. Aside
from this tendency, little can be said as to the financial policy which was
being pursued.
Beginning with the year 1923-24 expenditures were classified according
to governmental functions, and operating costs from that year to date are
strictly comparable. Data for the years in question are included in Table
No. 46. Receipts of the government by sources are summarized, and
expenditures are itemized, thus bringing into relief financial operating
results for the years in question.
In the first place it is important to note that since the accounts of the
government have been carried in their present form, revenue receipts have
exceeded expenditures out of revenue by Gdes. 4,390,214.39. During
1923-24 there was a small deficit, which was practically covered by the
surplus of the following year. Consequently the surplus of Gdes. 4,433,-
923.02 of 1925-26 was almost exclusively a net excess of receipts over
expenditures, taking the three year period as a whole.
Expenditures have risen in each year from 1922-23 to 1925-26, inclu-
sive. During the latter year operating costs of the government exceeded
those of the previous year by Gdes. 1,712,523.06, or 4.37 per cent, whereas
revenue receipts increased Gdes. 4,876,981.10 or 12.04 per cent. Thus the
position of the treasury was considerably improved. Even increased expendi-
tures would have been favorably considered had it not been the opinion
of this office that the fiscal year 1926-27 will not equal the previous year
and possibly will not equal that of 1924-25. Prudence therefore dictated
that the financial resources of the treasury be conserved so as to be available
for such unfavorable contingencies as may occur.
An analysis of objects of expenditure is always indicative of the policies
which a given government is seeking to pursue. Thus in the case of Haiti,
it is instructive to study the distribution of the enlarged expenditures of
the government and from such apportionment to consider whether funds
are being expended in a manner best designed to promote public welfare
and progress.
Because of the priority accorded by the treaty of September 16, 1915,
to the operating expenses of the Financial Adviser-General Receiver, those
expenditures are properly classified as part of the public debt. Though


















TABLE No. 45
EXPENDITURES OF HAITIAN GOVERNMENT. BY SERVICES
FISCAL YEARS 1916-17 TO 1922-23

Public Pu c Guaranteed Financial
Year Gendarmerie works health Public debt interest Haitian Extra- Adviser- Miscel- Total
and ministries ordinary :General laneous
service service subsidies credits Receiver


Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes GourJes Gourdes
September, 1916............... 11,309.91 '690,284.08 .... .......... 1,905,047.50 .............. 89,850.15 A.&, 8,751,525.12
1916-17........................ 4,792,16.10 8,288,031.60 .......................... 92,44.55 .. ............. 796,625.70 l. Ir.. 15,884,177.80
1917-18..................... 4,565,288.75 2,700,853.70 889,870.75 .............. ............. J,- ... 741.055.80 1, r 14,614.97.45
18-19..................... ....... 4.594,938.80 2,721.41.50 958,756.70 497,140.00 175,099.15 .............. 700.03560 45,297.90 15,499,480.45
1919-0O................... .. 5,415,377.45 3,199,680.25 1,338,591.30 245,000.00 461,241 15 ."1~.,l.'|i .............. 1,80,460.60 116,268.80 20.646.866.25
1920-21....................... 5,114,593.80 2,634,628.15 1,541.482 30 18.170.880.95 406,771.30 7,005,503.45 ..... .... 1,452,073.10 1,463,022.85 32,788,455.90
1921-22..................... 5,104056.45 2.451.720.30 1,244.506.25 21,663,345.05 293.995.55 7.1 .3.153" i I- '.'T~ 1 -".112 67,181.60 39,775,908.40
1922-23....................... 5,226,550.60 5,019,229.60 1,485,106.25 9,057,374.50 206,40000 ,- I 1,9 : 1 .0. 1,4 ,.. .15 82,822.80 30,560.113.15
Total ................. 35,524,221.36 22,705,769.18 7,458,813.55 44,633,240.50 1,685,941.70 49,182,830.70 421,181.70 7,877,749.85 4,082,526.48 173,521,524.52

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






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 65


TABLE No. 46

REVENUES AND EXPENDITURES, FISCAL YEARS 1923-24, 1924-25 AND 1925-26


1923-24 1924-25 1925-26


REVENUES
Customs.........................................
Internal revenue .............................
Miscellaneous....................................
Total revenue.......................
EXPENDITURES
Public debt:
Financial Adviser-General Receiver..........
Internal Revenue Service..................
Series A loan........ .....................
Series B loan.................................
Series C loan........... ......................
Interior consolidated debt...............
Fiduciary currency......................
Commissions paid to Banque Nationale......
Haitian Construction Co., notes..............
Roberts, Dutton & Co., claim................
Stamp sales, discounts and expense..........
P. C. S. Railroad subvention..................
Wharf Company subvention.................
Cable Company subvention..................
Total .............. .................
Gendarmerie ............... .................
Foreign Relations..............................
Finance ........................ ........
Commerce......................................
Interior .... ........ ......................
Public Health Service...........................
Public Works..................................
Public Works Service..........................
Justice ............ .........................
Agriculture.............................
Agricultural Service..............................
Labor ......................... .... ....
Public Instruction............................
Religion..........................................
Total expenditures from revenue ....
Revenues over expenditures......................
Expenditures over revenues....................


Gourdes
29,950,907.14
2,795,870.53
155,643.66
32,902,321.33


1,118,917.23
73.478.H8
5,589,861.50
1,695,970.86
928,174.00
.................."
828,227.51
433,915.00
277,872.35
13.285.42
206.400.00
524,564.28
480,000.00
12,170,669 53
5,322,449.22
784,199 47
1,620,866.84
1,363,403.06
1,529,057.91
961,836.20
5.895.159 05
1,373.533.28
148.288.24
434,445.89
2,806.194.25
457,893.00
34,215,495.94


Gourdes
35,750,018.84
4,089,926.19
647,722.47
40,487,667.00


1,849,587.49
342,928.16
7,836.491.75
2,453,151.14
1,209,067.55
195,839.01
420,000.00
27,958.63
..................
8,191.31
206,400.00
268,888.26
120,000.00
14,433,403.80
5,579,242.54
619,953 31
1,197.945.96
230,051.46
1,208,067.76
2.223,059.14
703.416.57
7,533,943.51
1,833,638 31
44,258.88
1,526.891.70
274 893.63
1,942,599.20
367,136.75
39,218,202.02
1,26a,464.98


1,813,174.61 ......... .....


Gourdes
40,594,831.74
4,155,170.28
614,646.08
45,364,648.10


1,698,87986
304,198.76
6,908,047.60
2,148,625.00
1,141,421.00
420,000.00
..................


206 400.00
247,706.25
90,000.04
13,164,778.51
6,062,415.84
635 084.64
1,062,756.19
247,935.91
1,224.369.56
2,852,485.58
92,287.98
9.082.496.06
1,395.153.62
41,426.15
2,185,104.58
530,646.65
1,965,167.09
388,617.22
40,930,725.08
4,433,923.02


expenditures of the Internal Revenue Service are authorized by law rather
than by treaty and do not constitute a pledge of revenue, nevertheless the
fact that the Internal Revenue Service is under the supervision of the
General Receiver makes it convenient to classify the costs of the Internal
Revenue Service as also included in the public debt. As expenditures of the
Financial Adviser-General Receiver and of the Internal Revenue Service
together declined during 1925-26 by Gdes. 189,986.03, as compared with
the previous year, it follows that an excellent start was made toward
diminished disbursements on account of the public debt.
Turning to the service of the loans of Haiti the record shows that expen-
ditures for interest and amortization declined for each item of the funded
public debt. This occurred in spite of the fact that the fiscal agency agree-
ments call for slightly increasing payments by the state on Series A, B
and C loans during each successive fiscal year. The apparent contradiction
afforded by the contraction during 1925-26 was due to the fact that in the
previous year supplementary amortization of the debt was provided out of
revenue, in the amount of some Gdes. 650,000 in excess of the sums stipu-





66 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

lated in the several fiscal agency agreements. During 1925-26 supple-
mentary amortization of the debts, which is obligatory when revenues of the
Haitian government are more than Gdes. 35,000,000, was given full effect,
but additional budgetary funds were not devoted to amortization as in the
previous year. In this connection it should be recalled that considerable
sums, proceeding from interest on funds in the possession of fiscal agents,
were devoted to debt retirement. But those interest credits were not taken
up as revenue and therefore do not appear as expenditures.
During 1924-25 interest and amortization for the Series A, B and C
loans, costs of remitting funds to New York for the A and C loans and
service charges of the fiscal agents absorbed Gdes. 10,998,710.44 while dur-
ing the following year but Gdes. 10,198,093.60 were devoted to similar
purposes. The reduction amounted to Gdes. 800,616.84, or 7.28 per cent.
Part of the program for consolidating the public debt of Haiti was
refunding of the former interior debt. Payments under this category
amounted to Gdes. 195,839.01 during 1924-25, whereas nothing was spent
for the same purpose during the subsequent year, and expenditures for
that purpose will not be necessary in the future.
Reduction of unsecured nickel currency proceeded during 1925-26 at
the same rate as in the previous year, Gdes. 420,000 being devoted to that
purpose. Payments made to the Compagnie des Chemins de Fer de la
Plaine du Cul-de-Sac were identical with those of previous years. So many
perplexing problems surround the relations between the government and
this railroad, that in the opinion of this office there is no assurance that
the conditional subsidy accorded to the railroad was properly payable.
Accordingly, the payment for the fiscal year 1924-25, liquidated during the
fiscal year 1925-26, was made under reservation.
During 1925-26 payment of the final annual subvention by the govern-
ment to the French Cable Company was effected, thus terminating annual
charges which have continued for thirty years. Moreover, a contract
between the government and the company was negotiated, by which the
company will continue to carry on its operations in Haiti, and to that
end will utilize facilities which it has developed in the republic. As the
original contract will expire on May 14, 1927, and as under the terms of
the original contract all properties of the company in Haiti reverted to the
state, it became desirable for both ,parties to permit the Compagnie
Frangaise des Cables T416graphiques, to retain possession of its existing
lines. This will be accomplished by means of payment by the company to
the public treasury of Gdes. 175,000. Furthermore, after the expiration of
the old contract, the Compagnie Francaise des Cables T616graphiques will
no longer enjoy monopolistic privileges in respect to telegraphic communi-
cations between Haiti and other countries.
In view of the imminent termination of the concession of the Compagnie
Francaise des Cables Tel1graphiques, All America Cables, Inc., negotiated





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 67

a contract with the Haitian government, which was signed on March 16,
1926, and approved by the law of May 7, 1926. Under the terms of this
contract All America Cables, Inc. agreed to install certain facilities for
international communication which should considerably improve the tele-
graphic service with Haiti. Furthermore, competition is expected to reduce
the excessive cable rates between Haiti and foreign countries. Thus, from
every point of view, the facilities of communication with Haiti have enjoyed
marked improvement during 1925-26.
Total disbursements classified as public debt declined from Gdes. 14,-
433,403.30 in 1924-25 to Gdes. 13,164,778.51 in the subsequent year. This
was a decline of Gdes. 1,268,624.79, or 8.79 per cent. Thus expenditures
on the public debt were about midway between those of 1923-24 and those
of 1924-25. During subsequent years the service of the public debt should
somewhat decline, as payments into the fiduciary currency reserve become
unnecessary, as further disbursements to the Compagnie Frangaise des
Cables Tle1graphiques are no longer due, and provided that payment of
wharfage dues pledged to the Compagnie Haitienne du Wharf is effected
without appearing as a public debt operation.
Costs of operating the Gendarmerie d'Haiti in 1925-26 amounted to
Gdes. 6,062,415.34, an increase of 8.66 per cent over the previous year.
Undoubtedly the Gendarmerie is the most adequately staffed branch of the
public service and is now possessed of reasonably adequate personnel and
facilities. Haiti is not faced with the problem of protection from foreign
aggression and therefore must make arrangements only sufficient to assure
internal peace. Formerly this was menaced by recurrent revolutionary
activities. For several years not only have there been no outbreaks, but
revolutionary tendencies on the part of the population have sharply
diminished.
That the present Gendarmerie organization is well adapted to conditions
in Haiti is demonstrated by the unanimous esteem in which the organization
is held by both Haitian and foreign observers. Police supervision, while
not restrictive of personal liberty, is adequate to prevent disorder and to
minimize crime. As the Haitian people are not given to acts of violence
most police operations are concerned with petty'misdemeanors. Further-
more, the organization of the Gendarmerie along military lines decidedly
increases its effectiveness as a police force and is the best guarantee against
organized trouble making. Since the Gendarmerie constitutes the only
armed force in the republic and as its efficiency is generally recognized,
potential disturbers of the peace know that opposition is useless.
Three lessons of importance may be derived from the organization and
operation of the Haitian constabulary. First is the great advantage of
having a unified police force throughout the republic, which comprises all
police activities, both urban and rural. The second is the advantage of
having the police force organized and trained along military lines. The





68 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

third is the enormous advantage of preventing the free possession of arms
by the population. Observers are convinced that the absence of fire arms
in the hands of the population has contributed greatly toward the low
percentage of crime which characterizes the Haitian population.
Expenditures of the Ministries of Foreign Relations, Finance, Commerce
and the Interior closely approximated those of the previous year. There
is no reason to expect that in future years the costs of these activities will
fluctuate appreciably from present levels.
Operations of the Public Health Service, as indicated by expenditures,
were considerably greater in 1925-26 than in any previous year. Disburse-
ments were Gdes. 2,852,485.58, an amount 28.31 per cent in excess of the
previous year. Haiti is rather rapidly being supplied with adequate public
health facilities, including hospitals in the larger towns and rural clinics
in the country districts. Furthermore, the Public Health Service is now
more adequately furnished with funds for the purchase of those supplies
which are necessary in conducting effective health activities.
Undoubtedly Haiti spends an unusually large proportion of its total
budget in public health, but it is no less certain that abnormally large dis-
bursements for this purpose are more necessary than in most countries.
In few states is the incidence of disease higher and the population less able
to care for its own medical requirements. Therefore the situation which
faces the Haitian government is the continuance of an undue ratio of disease
in its population or else the financing of health campaigns out of the public
treasury. Neither individuals nor the minor governmental organizations
are able, either financially or technically, to undertake effective public
health programs.
About as large a proportion of total revenues is now being devoted to
public health as it would seem appropriate to spend. Yet many problems
remain to be solved. For example, systematic campaigns for the elimina-
tion of syphilis and malaria on a nation-wide scope are at present out of the
question. Probably intestinal parasites, particularly hookworm, could be
brought under control, provided it were possible to maintain the facilities
which would be required in such an enterprise. Furthermore, there are the
important problems of poverty, old age and misfortune and those for caring
for the orphan population, the solution of all of which is still to be effected.
In Haiti, where poverty and disease are little short of universal, it is
apparent that elaborate public health programs involve many political and
sociological factors, as well as purely financial considerations.
Unquestionably the Haitian population is more attached to the Public
Health Service than to any other governmental organization. It has won
the respect and confidence of the ignorant masses by means of real service
to persons who have long been accustomed to exploitation. Particularly the
rural clinics of this service give an opportunity for persons in remote





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 69

regions to receive skilled medical attention, who would otherwise be at the
mercy of disease and of the local dispensers of witchcraft or quackery.
Reduction in expenditures of the Ministry of Public Works was merely
due to transferring costs of electric lighting for the cities of Port-au-Prince,
Cap-Haitien and Gona'ves to the budget for the Public Works Service.
As to the Public Works Service itself, expenditures increased to Gdes.
9,082,496.06, a figure previously unapproached in public works operations.
It should also be recalled that certain funds appropriated to other services
of the government were transferred for expenditure to the public works
organization. Thus total expenditures for public works equalled Gdes.
10,781,748.88.
Undoubtedly an active public works program is of paramount necessity
under conditions as they at present exist in Haiti. Housing of government
activities is inadequate, except in Port-au-Prince, means of communication
are insufficient, both as to quantity and quality, municipal water supply
exists only for a few favored places, and irrigation is in its initial stages.
Expenditures several fold greater than those of 1925-26 could be continued
for many years without exhausting the possibilities of productive public
works activities. However, the record in the year under review is creditable,
as all public works operations were covered by revenue receipts and without
resort to loans. In this connection it should be stated that certain balances
of the loan of 1922, floated for the purpose of refunding the public debt
and for meeting the cash awards of the Claims Commission are now avail-
able for public works. Inasmuch as all of those funds, if necessary, were
pledged to satisfying claims against the government, it follows that loans
for public works have not as yet been contracted though certain loan funds
will not be employed for such operations. During 1926-27 a considerable
proportion of public works operations will be financed from the unexpended
balance of the Series A loan.
There is little doubt that the Public Works Service has been one of the
most useful organizations which has been established under the terms of the
treaty. The scope of its activities has systematically been extended, and the
utility of its operations is manifest in an increasing number of directions.
In view of certain increases in the salaries of judges the costs of the
Department of Justice were somewhat greater in 1925-26 than in the
previous year. Salaries of judges are still insufficient, but it is also true
that the number of judges is excessive. Probably adequate compensation
for the necessary number of judges could be obtained by reduction in the
present number of such officials.
Other activities which were stressed during 1925-26 were the develop-
ment of agriculture and vocational education. The Agricultural Service
is now rounding out its organization and is in a position to accomplish
increasingly useful results. That the field of its possibilities is extensive is
not open to question. Agriculture in Haiti is not only primitive but unsys-





70 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

tematic. Crops are in large measure left to the caprices of nature, with
little effort to assist favorable natural forces and to control or neutralize
those which are disadvantageous. For example, little attempt had been
made prior to the establishment of the Agricultural Service to control the
diseases of plants and animals and to ascertain the economic products, both
vegetable and animal, which are most appropriate to Haitian conditions.
Of equal importance is the proper marketing of such commodities as are
produced. At present Haitian commodities, though of excellent inherent
quality, are inefficiently prepared for market and standardization is absent,
both of which result in prices materially lower than those which could
otherwise be obtained. A wide field for the Agricultural Service is avail-
able in improving marketing practices, including both technical and com-
mercial operations. Experience in other countries has shown that careful
attention to the preparation of commodities for market has yielded unu-
sually profitable returns.
In earlier years public instruction in Haiti was of the so-called "classi-
cal" type. That the results of this educational policy were not entirely
satisfactory was recognized by most competent students. Accordingly,
attention is now being focused upon agricultural and industrial education.
As agriculture is the principal occupation of Haiti, most attention is
directed to this branch of education, including the establishment of rural
schools for instruction in agriculture and the operation of a technical school
in the capital for the training of agricultural teachers.
Too much emphasis cannot be placed on the importance of agricultural
and industrial education, agricultural experimentation and organization and
what is known in the United States as "county agent work". Through the
process of rehabilitating Haitian agriculture will unquestionably be pro-
longed, the attainment of satisfactory agricultural practices constitutes the
principal hope of this country for improved conditions in the future.
Persons not fully familiar with administrative arrangements in Haiti
sometimes complain that little has been done for public instruction. They
point to certain authorizations of credit which were carried in the budget of
public instruction in earlier years and jump to the conclusion that present
expenditures in the Department of Public Instruction do not constitute
adequate support of educational development. In the first place, budget
authorizations for the Department of Public Instruction were approximately
the same in 1914-15, the last year before American intervention, and during
1925-26. But in the earlier year treasury exigencies were such that pay-
ments by no means equalled budgetary authorizations. At present the
treasury is able to meet all appropriations. Secondly, in the earlier year
disbursements under that department constituted all expenditures for
public instruction, whereas now educational activities are conducted by
numerous other branches of public administration. For example, the work
of the Agricultural Service and of the Bureau of Vocational Education is






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 71


primarily educational in purpose and scope, and the larger part of dis-
bursements of those organizations should be classified as for public instruc-
tion. Furthermore, expenditures for the law school now appear in the
Department of Justice, those for the medical school in the Department of
the Interior, and the Gendarmerie d'Haiti also finances certain educational
work in connection with its members.
Thus it is fair to state that expenditures for public instruction are
probably more than twice as great as those prior to American intervention,
and, in addition, the present type of agricultural and vocational education
is believed to be far more constructive than was formerly the case.
Total expenditures out of revenue for all purposes were Gdes. 40,930,-
725.08, an increase of Gdes. 1,712,523.06, or 4.37 per cent from the previous
year. Although such expenditures were considerably larger than those of
any previous year for which records are available, they were not at the
expense of sound finance. On the contrary, the surplus of Gdes. 4,433,-
923.02, constituting 10.83 per cent of total expenditures, speaks for itself.
Even this satisfactory surplus could have been increased by considering as
revenue accruals of interest on funds for debt service deposited with the
fiscal agents, rather than permitting such receipts to be utilized in supple-
mentary debt retirement.
Receipts and expenditures of the Haitian government during 1925-26
are arranged in relative importance in Table No. 47. Outstanding features

TABLE No. 47

SOURCE AND DISPOSITION OF REVENUES, IN PERCENTAGES, FISCAL YEAR 1925-26


REVENUES
Customs.......................
Internal revenue..............
Miscellaneous................
Total..........................
EXPENDITURES
Public debt ...................
Public works service...........
Gendarmerie..................
Public health service.............
Agricultural service................
Public instruction................
General receiver...............
Justice..........................
Interior................ ..... .....
Finance.......... ..................
Foreign relations..............
Subventions..................
Labor...........................
Religion...........................
Internal revenue service..........
Commerce.........................
Public works.....................
Agriculture.......................
Total expenditures............
Surplus....... ..............
Total revenues...............


Gourdes
40,594,831.74
4,155.170.28
614,646.08
45,364,648.10

10,618,093 60
9 082,496.06
6,062.415.34
2,852,485.58
2,185,104.58
1.965,167.09
1.698,379.86
1,895,153.62
1.224,369.56
1,062,756.19
635.084.64
544.106.29
530.646.65
388,617.22
304.198 76
247,935.91
92,287.98
41,426.15
40,930,725.08
4.433,923.02
45,364,648.10


Percentage of
total expenditures
from revenue

Gourdes





25.94
22.19
1482
6.97
5.34
4.80
4.15
8 41
2.99
2.59
1.55
1.82
1.30
.95
.74
.61
.23
.10
100.00


Percentage of
total revenues


Gourdes
89.49
9.16
1.35
100.00

23.41
20.02
18.36
6.29
4.82
4.3388
3.74
3.08
2.70
2.34
1.40
1.20
1.17
.86
.67
.55
.20
.09

9.77
100.00





72 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

of this exhibit are the predominance of customs receipts so far as income
is concerned, the reasonable proportion of total income which is absorbed
in the service of the public debt and the prominent place which is accorded
to public works activities. Of equal significance is the percentage of total
receipts retained for surplus. This was only slightly inferior to ten per
cent, a most satisfactory finanical situation, especially in view of the import-
ant sums which were appropriated as extraordinary credits for productive
purposes during the year in question.
During 1925-26 a rather important innovation in financial procedure
was introduced. This was the establishment of reimbursable credits. Cer-
tain operating departments of the government which have business rela-
tions with the public were permitted to sell merchandise or services and to
devote the proceeds of such sales to enlarging their activities. For example,
moneys received from persons patronizing the hospitals of the Public Health
Service became automatically expendable for hospital purposes. Thus total
activities and expenditures of the government were considerably in excess
of those shown in Table No. 46. The nature and extent of the reimbursable
credits appear in Table No. 48.

TABLE No. 48
REIMBURSEMENTS TO APPROPRIATIONS, FISCAL YEAR 1925-26

Gourdes
General Receiver......................... .... ......... ......... ................... 1,102.15
Public Health Service
Administration........................... ....................................... 27,069.54
Sanitation and quarantine..................................... ................ 135,139.06
Hospitals....................... ............................................ 126,590.67
Gendarmerie
Rations.............................................................................. 63,711.37
Operation and maintenance............. .................................... 624,851 89
Medical supplies.... ................ ........................... ...............19,740.97
Prisons......................................... ............ 583.45
Light houses....................................................................... 9,093.20
Public Works Service
Streets and parks................................................................ 106,390.39
W ater service................................................................... 37,742,57
Agricultural Service
Administration .................... ............................................ 121.00
Breeding station................................................................. 493.50
Central experimental farm..................................................... 14,078.90
Sisal plantations .................................................................. 5,726.84
Rural farm schools............................................................... 2,271.09
Agricultural college ............................................................... 13,243.67
Labor
Reform school.................................................................. 9,299.80
Elle Dubois school........... .............................................. 2,018.85
J. B. Damier school............................................................... 9,279.00
Total........................................................................... 1,208,547.91

To be sure, interdepartmental sales accounted for a considerable portion
of the activities under reimbursable credits. As illustration, the Gendar-
merie d'Haiti has facilities for distributing gasoline and supplies gasoline to
several governmental departments. Accordingly, a considerable proportion
of the income of the reimbursable credits of the Gendarmerie d'Haiti under





HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER 73

"maintenance and operation" consisted of transfers of funds from other
departments. To the extent that income received under the several reim-
bursable credits represented payments from other branches of the govern-
ment, these credits did not represent an actual increase of governmental
activities.
It is interesting to follow the course of Haitian finances from the begin-
ning of American participation in Haitian affairs. This appears in Table
No. 49. On the whole, the record is satisfactory, as a surplus for the entire
period of Gdes. 10,417,666.34 is shown. This amount corresponds closely
to the present unobligated cash balance of the treasury, indicating clearly

TABLE No. 49
REVENUES AND EXPENDITURES AND EXCESS OF REVENUES OR EXPENDITURES
FISCAL YEARS 1916-17 TO 1925-26

Year Revenues Expenditures Surplus Deficit

Gourdes Gourdes Gourdes Gourdes
1916-17................... 18,934,684.70 15 884,177.80 8.050,506 90 ....................
1917-18.................. 16,048 390.75 14 614,997.45 1,433,93.80 ...............
1918-19.................. 29.955,933 45 15.499.480.45 14,456,453.00 ....................
1919-20.................. 33.997.450.79 20,646.866.25 18,850,584.54 .......... .....
1920-21................... 19.946,095.70 82,788.455.90 ................... 12,842,360.20
1921-22.................. 24,961,795.72 39.775.908.40 ........... ....... 14,811,112.68
1922-23 ................. 31.950,101.24 30.560,113.15 1,389,988.09 ......... .........
1923-24.................. 82,902,821.83 34.215,495.94 .................... 1,813.174.61
1924-25....... ..... 40,487,667.00 39,218.202.02 1,269,464.98 ....................
1925-26................ 45,364.648.10 40,930,725.08 4.433,923.02 ....................
Total............... 294,552,088 78 284,134.422.44 89,384,13 83 28,966,647.49
Surplus for period...... ..................... ................ 10,417,666.34 ....................


that the treasury was virtually empty at the time of the intervention.
There is also demonstrated in the table the buoyant effect of war conditions
during 1918-19 and 1919-20, followed by the drastic deflation of the two
subsequent years. From 1922-23 stabilization may be considered as effec-
tive, and financial administration can be regarded as proceeding normally.
In three of those years a surplus of receipts over revenues was achieved,
thus exhibiting a very healthy budgetary situation. As the position of the
treasury is now unusually well fortified against adversity, deficits of mod-
erate proportions would not now be embarrassing, though it is the purpose
of this office to keep the government from a deficitary situation.
One further feature of the Haitian budget may well be considered at
this time. This is the practice of authorizing budgetary appropriations
which are well within expected revenue receipts and of expending surplus
receipts, if any, by means of extraordinary credits. This device permits
the maintenance of a strong treasury position at all times, as extraordinary
credits are not approved unless actual receipts in excess of ordinary appro-
priations are already in the treasury or else their collection within the
course of the fiscal year is assured. For example, the budget of 1925-26
authorized expenditures of Gdes. 32,981,273.87, the difference between this





74 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

figure and actual treasury disbursements of Gdes. 40,930,725.08 being
Gdes. 7,949,451.21, or 24.10 per cent above the amount originally voted.
These excess expenditures arose from supplementary and extraordinary
credits, due to the fact that the fiscal year 1925-26 was extremely favorable
from the point of view of fiscal receipts.
That the foregoing practice is highly desirable in the case of Haiti
requires little argument. Because the approval of the President of the
United States must be obtained for each addition to the public debt, resort
to short term borrowing is practically out of the question, and arrangements
have to be made so that even temporary deficits shall not occur unless they
can be covered by unobligated surpluses. In short, the fixed charges of the
government, including service of the public debt and the support of the
permanent branches of administration, have to be maintained within con-
servative limits, and new projects and the prosecution of the adopted pro-
gram of development have to be financed from such surpluses of actual
receipts above budgetary estimates as may occur.
Table No. 50 carries the financial operations of the Haitian government
by months for the fiscal year 1925-26. These are the statistics which are
chiefly utilized from month to month in formulating the financial policies
of this office. They are combined with a financial forecast of receipts and
expenditures, by months, for the entire fiscal year. Joint utilization of the
two sets of data has permitted accurate adjustment between income and
expenditure, and has permitted treasury funds in excess of expected expen-
ditures to be rapidly and fully employed in a productive manner.
As in the previous year, heaviest financial activities occurred in October,
as ordinary service of the public debt was largely anticipated during that
month. The second month of the year, from the point of view of total
disbursements, was March, when supplementary amortization of the debt
was effected, also in anticipation of the requirements of the several loan
contracts, as such payments were not due until three months after the close
of the fiscal year. Thus interest on the amount of the loans which was
amortized during March was saved for approximately nine months, an
economy of no small importance to the state.
Aside from exceptional disbursements due to debt operations, expendi-
tures of the government were unusually uniform throughout the fiscal year.
That is, there was no tendency toward seasonal fluctuations, as was the
case with revenue receipts. This is an additional reason why payment of
the service of the public debt in anticipation of due dates is possible, but it
also is a considerable burden on the treasury to be compelled to accumulate
and retain in cash sufficient funds for government expenditures during the
latter months of the fiscal year, when revenues are not likely to be sufficient
to cover expenditures. As a matter of fact, revenues did not equal expen-
ditures in the months of October, March, May and June. Surprisingly
large receipts during the last five months of the fiscal year obviated the





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 75









TABLE No. 50

RECEIPTS AND EXPE'DITUIES, FISCAL YEAR 1925-26

Receipts


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


Gourdes Gourdes Gourdes Gourdes Gourdes Gure ourdes Gourdes Go urdes G ourdes Gordes Gourdes Gourdes Gourdes
Customs.......................:.... ...... 4,416,779.02 4.693,002.47 5,012,369.58 3,667,224.92 3,633,241.41 3,565,430.99 2,664,665.97 2,695,871.80 2,330,906.59 2,657,772.01 2.286,530 28 2,971,916.70 40,594,831.74
Internal revenue........................... .639,76.10 604,735.11 816.469.98 341,840.86 289,962.43 260,780.05 837,905.27 211.666.82 252,355.86 349,876.13 258,046.04 292,255.63 4,155,170.28
Miscellaneous.............................. 20,734.54 61,902.00 42,737.90 58,605.10 47,623.80 63,767.70 39,051.68 27,571.55 82,855,40 93,975.25 64,387.85 61,433.81 614,646.08

Total revenue...................... 5,076,789.66 5,359,639.58 5,371,577.46 4,067,690.88 3,970,827.64 3889,978.74 3,041,622.92 2,935,110.17 2,616,117.85 3,101,623.89 2,608,964.17 3,324,705.64 45,364,648.10
Non revenue ........................................................ 400.00 1,000.00 .... ........... 200.00 ................ 200.00 ................................................ 800.00 2,600.00

Total receipts .................... 5,076,789.66 5,359,639.58 5,371,977.46 4,068,690.88 3,970,827.64 3,890,178.74 3,041,622.92 2,935,310.17 2,616,117.85 3,101,623.89 2,608,964.17 3,325,505.64 45,367,248.10


Expenditures


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


Public debt:
Financial Adviser-General Receiver....
Internal revenue service.............
Series A loan..........................
Series Bloan...........................
Series C loan....... ...............
Fiduciary currency..................
P. C. S. Railroad subvention........
Wharf company subvention..........
Cable company subvention..............
Total public debt...................
Gendarmerie................................
Foreign relations .........................
Finance.......................... ...
Commerce..............................
Interior...................................
Public health service.......................
Public works................................
Public works service......................
Justice ......................................
Agriculture............................
Agricultural service ........................
Public instruction..........................
Labor.............................. ....
Religion....................................

Total revenue payments..............
Awards of the claims commission........
National railroad construction...........
Miscellaneous..............................

Total payments......................
Pension deductions........................
Net payments... .......... .....
Cumulative revenue....................
Cumulative payments from revenue......
Difference..................................


Gourdes
106.720.66
18,919.60
5,625,000.00
531,509.15
930,999.60


................

7,213,149.01
564,871.75
36,419.79
91,731.26
20,026.87
97,381.29
180,165.86
57,242.45
751.768 54
119,653.82
3,459.73
101,386.23
161,829.80
26.667.13
29,921.19


9,455,674.72
137,675.90
80,810.40

9,674,161.02
7,673.96

9,666,487.06
5,076,789.66
9,455,674.72

-4,378,885.06


Gourdes
105,058.49
36.924.39
5,625.00
295,544.90
................

26,446.01
18,525.49
469,598.79
450,265.24
40,479.09
73,357.09
15,375.00
92,547.02
169,807.58
8,341.87
532,530.63
113,441.56
3,163.55
133,093.41
161,720.13
25,867.23
26,736.35


2,311,324.54
89,443 80
108,875.30

2,509,643 64
6,324.20

2,503,319.44
10,436,429.24
11,766,999.26
-1,330,570.02


Gourdes
115,798.43
22,780.19
3,750.00
................
................
20,000.00
........ ",b....
21,308.32
............ ...
202,162.43
458,054.90
40,002.99
87,291.34
23.878.17
109,395.07
186,408.23
3,454.78
689,993.58
118,134.63
8,438.55
152,947.18
161.140,25
29,922.75
37,854.23


2,303.579.08
105,726.25
54,000.00

2,463,805.33
6,882.03

2,456.423.30
15,808,006.70
14,070,578.34

+1,737,428.36


Gourdes
103,712.50
20,634.51
10.837.90
145,000.00
1,250.00
120,000.00

30,433.90

431,898.81
494,246.98
89,817.45
100,188.28
20,092.72
93,036.68
354,406 26
8,277.80
659,040.09
113,444.17
3,519.39
133,811.41
160,160.71
27,995.92
29,340.85


2,664,277.02
24,231.60
90,165.15

2,778,673.77
7,104.93

2,771,568.84
19,875,697.58
16,734,855.36

+3,140,842 22


Gourdes
110,249.41
19,264.12
..............

75,833.75
35,000.00

17,466.30

748,379.68
404,415.75
43,619.39
86,035.30
16,323.90
89,255,84
231,173,06
3,217.65
774,193.84
115,779.92
3,341.07
166,526.48
162,363.89
27,209.70
35,178.79


2,907,013.76
183,550.45
19,000.00

3,059,564.21
7,985.55
3,051,578.66
23,846,525.22
19,641,869.12

+4,204,656.10


Gourdes
128,949.53
19,713.85
1,246,933.05
175,000.00
131,546.90
35,000.00
23,305.71

1,760,449.04
468,397.25
67,257.10
129,057.38
24,708.28
94,566.06
816,445.07
8,632.49
1,194,235.41
124,956.09
3,526.05
183,016.14
174,032.09
32,546.80
41,860.96


4,613,686.21
100,154.20
90,000.00

4,803,840.41
6,142.82

4,797,697.59
27,736,503.96
24,255,555.33

+3,480,948.63


Gourdes
, 118.097.87
25,596.75
6,191.95
75,000.00
431.85
35,000.00

29,730.68

290.019.10
557,397.01
45,069.05
86,282.87
22,182.42
91,795.88
262,692.55
3,335.05
580,221.36
115,228.22
8,507.20
154,169.42
161,153.93
42.181.08
30,776.63


2,446,041.77
213,294.00
30,000.00

2.689,335.77
7,722.85

2.681,612.92
30,778,126.88
26,701,597.10

+4,076,529.78


Gourdes
103,607.71
14091.54
9,037.20
200,000.00
1,358.90
85,000.00
206,400.00
20,794.03

590,289.38
550,519.25
80,280.08
106,724.17
20,288.04
118,262.50
195,152.18
8,071.97
982,838.07
114,080.49
3,263.55
161.226.90
162,242.32
40,116.24
33,610.63


Gourdes
105,286.66
15,010.34
47.50
.. .
.. ".. .. .. ..
35,000.00

20,593.82

175,938.32
541,754.53
69,610.05
95,488.36
29,293.83
162,273.66
217,752.94
2,966.25
790,654.17
113,342.59
3,438.55
198,956.94
187,231.65
60,967.55
28,511.69


3,161,965.72 2,678,181.08
401,257.05 446.858.15
57,500.00 15,644.20
................ 1,500,000.00


3,620,722.77
7,947.22

3,612,775.55
33,713.237.05
29,863,562.82

+3,849,674.23


4,640,683.43
9,932.11

4,630,751.32
36,329,354.90
32,541,743.90

+3,787,611.00


Gourdes
101,179.57
28,399.46
625.00
100,239.63
35,000.00

20,461.01

285,904.67
494,414.96
58,685.39
71,104.43
17,801.57
99,269.98
272,371.81
3.275,02
851529.98
117,976.70
3.536.30
218,058.62
161,374.17
98,955.09
80,241.89

2,784,500.58
3,805.00


2,788,305 58
7,955.87

2.780,349.71
39,430.978.29
35,326,244.48

+4,104,733.81


Gourdes
93.966.10
20,378.63
134,847.30

35,000.00
24,011.53

308,203.56
527,878.79
53,719.89
64,985.43
20,962.57
81,164.37
244,210.73
2,624.90
625,272.67
114,183.24
3,138.55
213,087.89
154,442.70
61,067.93
29,718.64

2,504,661.86
7,110.05
268,870.28

2.780,642.19
8,483.77

2,771,158.42
42.039,942.46
37.830,906.34

44,209,036.12


Gourdes
505,722.93
62,485.38
...............
917.92
35,000.00
13,154.94
71,474.55
688,755.72
555,198.93
60,124.37
70,510.28
17,502.54
95,421,21
221,899.36
2,847.75
650,217.72
114,932.19
4,093.66
868,823.96
157,475.95
57,149.23
34,865.87
8,099,818.74
7,966.40
73.377,27

3,181,162.41
7,275.61
3,173,886.80
45,364.648.10
40,930,725.08

-+4,433,923.02


Gourdes
1,698,379.86
304,198.76
6,908,047.60
2,148,625.00
1,141,421.00
420,000.00
206.400.00
247,706.25
90,000.04
13,164,778.51
6,062.415.84
635,084.64
1,062,756.19
247,935.91
1,224,869.56
2,852,485.58
92,287.98
9.082,496.06
1,395,153.62
41,426.15
2,165,104.58
1,965,167.09
530,646.65
388,617.22
40,930,725.08
1,671,072.85
545.995.05
1,842,247.55
44,990,040.53
91,430.92
44,898,609.61
45,364.648.10
40,930,725.08
+4,433,923.02


- -1 -






76 IHAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

deficits which may ordinarily be expected for that period. Thus the year
closed with revenues on a high level, but there were numerous indications
that a considerable decline was imminent for 1926-27.

TREASURY POSITION

Throughout 1925-26 the strong treasury position attained in previous
years was conserved, as appears from consideration of Table No. 51. In
fact assets were somewhat increased and liabilities considerably reduced,
leaving unobligated assets, or cash surplus, at a figure never previously
approached in the history of Haiti. One of the most interesting features

TABLE No. 51
ASSETS AND LIABILITIES

Sept. 30, 1924 Sept. 30, 1925 Sept. 80. 1926

ASSETS Gourdes Gourdes Gourdes
Deposits in Banque Nationale de la R6publique d'Haiti:
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 23,060,264.75
To credit of General Receiver in Haiti................ 4,930,926.91 3,170,778.93 4,867,166.97
Cash in hands of disbursing officers................... 86,936.08 118.103.62 300,079.91
Fiduciary currency reserve ...................... ............... 1,584,690.50 2,012,677.50
Advances by the government-reimbursable .......... ............................ 67,746.81
Total.......... ................................ 28,464,685.53 29,611,691.25 80,807,935.94
LIABILITIES
Interest-internal consolidated debt................... 200,788.25 442.55 ................
Awards of Claims Commission, debt retirement, pub-
lic works........... ..... .... ............ 9,813,741.70 9,573,492.30 3,267,693.50
Extraordinary credits............................... 1,750,476.84 4,015,791.61 2,795,828.57
Liquidation accounts ............................. 1,602,905.48 1,412,749.17 1,449,806.59
Non-revenue credits................................. 7,254,771.15 4,506,031,80 6,927,054.25
Cash bonds deposited.................................................. 60,164.10 61,964.10
General Receiver's five per cent fund for customs
service ............... .......................... 415,498.73 353,462.14 693,778.52
General Receiver's fifteen per cent fund for internal
revenue service.............. .................... 34,843.28 298,155.99 368,266.83
General Receiver's checks outstanding........... .... 893,125.80 1,438,868.20 1,003,674.60
Fiduciary currency reserve-reimbursable......................... 1,584,690.50 2,012,677.50
Advances by the government-reimbursable...................................... 67,746.81
Net balance (Cash working balance) ................ 6,998,534.80 6,367,843.39 11,659,445.17
Total...... ................................ 28,464,685.53 29.611,691.25 30,807,935.94


of the treasury position is its great liquidity. For some years the Haitian
government has been able to meet at any moment all outstanding liabilities
other than the funded debt and has in addition carried important cash
balances with its depositaries.
During 1925-26 the Claims Commission concluded its labors, and there-
upon the balance of the Series A loan carried in New York funds for meet-
ing the cash awards of the Claims Commission was transferred to the
account of the General Receiver so as to be available for supplementary
amortization of the public debt and for public works, as stipulated in the
several protocols and loan contracts governing the flotation and utilization
of the Series A loan. As a result, deposits of the General Receiver in New
York funds on September 30, 1926, had increased some Gdes. 8,000,000
over September 30, 1925.





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


Balances of the General Receiver on deposit in Haiti also increased,
being Gdes. 3,170,778.93 and Gdes. 4,867,166.97, respectively. This increase
was in spite of efforts to maintain balances in Haiti at a reasonably low
point in order to receive interest payments from government funds when
deposited in New York accounts. However, as expenditures of the Haitian
government increase, it is necessary to maintain somewhat larger working
balances in Haiti. This explains the expansion of funds of the General
Receiver in Haiti.
Cash in the hands of disbursing officers fluctuates rather widely from
month to month due to local causes, and the relative magnitude of this
figure has little significance.
The reserve against fiduciary currency increased during 1925-26 by
Gdes. 427,987.00, and at the end of the fiscal year stood at Gdes. 2,012,-
677.50. This is at least two-thirds of the total amount which it will be
necessary for the government to set up as reserve against fiduciary cur-
rency. Gratifying progress in the last two years has been made toward
the permanent solution of what has been a rather unsatisfactory element
in the financial situation of Haiti.
Minor governmental divisions in Haiti are not well developed, and their
financial resources are meager. The communes and municipalities consider
themselves quite dependent on the central government for facilities which
are considered essential to convenience and progress.' This attitude of
dependence is not advantageous, either for the communes or for the state.
Accordingly, attempts are being made to induce the communes to increase
their interest in such matters as schools, the improvement and care of streets,
local beautification and similar activities. Usually the communes are unable
to finance capital expenditures, but can assume the obligation to repay the
state for advances made for expenditures of municipal concern. Thus in
1925-26 a form of contract was prepared, under which the state is willing
to consider advances to minor political divisions for purposes which may
mutually be agreed upon. Such advances are to be repaid over varying
periods of time, with interest at approximately the rate which the central
government has to pay for its borrowed funds. Therefore among the assets
of the state appear advances to communes, and probably these items will
tend to show expansion in future years.
Turning to the liability accounts of the government, it is found that
the reserve for awards, of the Claims Commission, debt retirement and
public works markedly declined, as the greater portion of the balance from
the previous year was appropriated and transferred to other obligated
accounts, upon the conclusion of the deliberations of the Claims Com-
mission. The sum of Gdes. 3,267,693.50 was reserved in connection with
an appeals commission which was agreed upon by the Haitian and French
governments for certain claims of French citizens and proteges. Adjudica-
tion of these claims, which are relatively few in number, will soon be com-





78 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

pleted, and thereupon Haiti will know its exact financial situation. Un-
doubtedly the reserve for meeting the cash awards of the board of appeals
is much greater than will be utilized, and when all claims shall have been
adjudicated, the balance in the reserve under discussion will be employed for
additional public works.
This office always attempts to consider assets from the most conservative
point of view and to treat obligations as liberally as possible. That is,
several items for various reasons could have been considered as income or
assets of the government, but they were excluded. On the contrary, every
known item of possible expenditure has been set up as a liability. In pur-
suance of this policy, the full amounts of extraordinary credits are imme-
diately deducted from unobligated cash and placed in reserve, though the
projects for which extraordinary credits are voted usually require pro-
tracted periods for their realization. Therefore at all moments the Haitian
government is aware of all possible financial claims which may be presented
to the treasury.
Reserves for extraordinary credits declined from September 30, 1925,
to September 30, 1926, but this decline was more than compensated by an
increase in non-revenue credits from Gdes. 4,506,031.30 to Gdes. 6,927,-
054.25. Such non-revenue credits in large measure represented balances
of the Series A loan which have now been appropriated for public works.
When these works shall have been completed, the reserve for non-revenue
credits will probably decline to a small figure.
Liquidation at the end of the fiscal year formerly created considerable
confusion and resulted in a certain laxity in financial control. Special
efforts have been made to bring liquidation accounts into proper order by
shortening the period in which accounts may be paid after the end of each
fiscal year and by introducing the principle that only items which have
been formally obligated prior to September 30 of any year may be placed
in liquidation account.
Unexpended balances in the receivership fund practically doubled dur-
ing 1925-26. This does not indicate, however, that the fund is excessively
large. It merely means that funds were purposely accumulated in order
to finance an extensive building program which has already been author-
ized for the year 1926-27. At the end of that year it is likely that the
five per cent fund will be of modest proportions.
As stated elsewhere the balance in the fifteen per cent allowance for
the Internal Revenue Service reverts to the treasury on the first day of
each fiscal year. Therefore the item of Gdes. 368,266.33 was transferred on
October 1, 1926, to unobligated cash, exception being made of a small
amount which was placed in liquidation account to cover certain bills pay-
able of the Internal Revenue Service.
Checks of the General Receiver, outstanding and unpaid, also fluctuate
over a wide range. At the end of each fiscal year such checks tend to be





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 79

particularly large, as the commission of the Banque Nationale de la REpu-
blique d'Haiti for its services as fiscal agent of the government is paid as of
the last day of the fiscal year but is not collected until subsequent business
days.
The final item which requires comment is the unobligated cash balance
of the treasury. On September 30, 1926, this amounted to Gdes. 11,659,-
445.17 and was Gdes. 5,291,601.78 or 83.10 per cent greater than on the
same date of the previous year. The financial administration takes con-
siderable satisfaction in the exceedingly strong treasury position of the
Haitian government. It will be noted that this unobligated balance con-
stituted 28.49 per cent of governmental expenditures for the fiscal year.
Such a ratio of net quick assets could be shown by few if any governments.
Attention for several years has been directed toward placing the finances of
Haiti in a position so that times of adversity and lowered revenues could
be encountered without curtailment of essential governmental activities.
There is reason to believe that unobligated cash resources are now sufficient
to care for all probable contingencies, and further enlargement of such
balances is not necessary at present. Of course as governmental expendi-
tures continue to expand, as may be confidently expected, an adequate ratio
between net quick assets and total expenditures should be maintained.
Taken as a whole, the asset and liability position of the Haitian govern-
ment is eminently satisfactory. Such elements of strength characterize the
balance sheet that Haiti may have reasonable confidence that financial
embarrassments will no longer occur.

PUBLIC DEBT
It is difficult to decide whether unprecedented revenues or unprecedented
reduction of the public debt constituted the outstanding financial feature of
the fiscal year under discussion. At all events no previous year in the
history of Haiti showed such progress in diminishing the indebtedness of
the state. Total public debt, including fiduciary currency, declined from
Gdes. 115,231,263.80 as of September 30, 1925, to Gdes. 108,307,079.30 at
the end of the following fiscal year. This reduction amounted to Gdes.
6,924,184.50 or 6.01 per cent. If the public debt of a country is diminished
by even one per cent, the rate is regarded as quite satisfactory. Conse-
quently, repayment of 6.01 per cent of the entire public debt in a single
year may be regarded with genuine gratification.
The recent history of the public debt of Haiti is presented in Table
No. 52. During the first years of the American intervention most of the
debt was in francs, and obviously its value in gourdes fluctuated widely in
accordance with the market position of the franc. In 1922-23 rehabilita-
tion of the Haitian debt was initiated by floating the Series A dollar loan
for the purpose of refunding the debt in francs as well as for providing
cash for meeting legitimate claims against the Haitian treasury. During






80 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

TABLE No. 52
PUBLIC DEBT

Series A Series B Series C Fiduciary Total
Currency

Gourdes Gourdes Gourdes Gourdes Gourdes
September 80,1915..... 107,81,656.45 37.185,657.60 ............... 8.853,754.80 153,861,068.85
September 80,1916..... 113,455,856.5 38,974,28785 ................ 8,852,663.15 160.782757.85
September 30, 1917..... 119,089.179.15 42.098,154.00 ................ 7,786974.80 168.969.807 95
September 80,1918..... 124,722,01.95 45,014,560.65 ................ 7,510.837.75 177,247,900.85
September 80.1919..... 0.56.562.00 48.774,145.85 ............... 7,245,000.00 146,575,707.85
September 80, 1920..... 33,487,414.30 51,078,637.35 ................ 7245,000.00 91.811.051.65
September 30,1921.... 82,225,464.80 53,090.682.40 ................ 6,080,862.50 91,396.5(9 20
September 30, 1922 ..... 3.505.429 95 52,945.770 25 ................ 68,080362.50 926531,562.70
September 0, 1923..... 79,25,000.00 25.000,000.00 .............. 6,080,362.50 110,315.862.50
September 80, 1924..... 78,242,500.00 23,566.980.60 13.158,711.10 6.080,809.50 121.048,501.20
September 80.1925.... 75,183.419.30 21,747,462.30 12,640,072.70 5,660,309.50 115,231,263.80
September 80,1926..... 71,474,157.85 19,775,074.65 11,825,524.80 5,232,322.50 108,307,079.80


the fiscal year 1923-24 funding operations were completed by exchanging
the former floating debt for Series B bonds, in a ratio established by the
international Claims Commission and by making such securities available
for claims which should be liquidated in securities by that Commission.
Finally, the bonds of the National Railroad of Haiti, which had consti-
tuted a long standing element of embarrassment in the financial position
of Haiti, were exchanged, in accordance with an agreement reached with
the bondholders, for direct obligations instead of contingent obligations of
the state. This exchange was effected by the issue of the Series C loan.
Thus at the end of 1923-24 the public debt reached its maximum dimen-
sion since refunding operations were initiated, and thereafter gratifying
progress in its reduction has been accomplished. From an original issue of
Gdes. 80,000,000, the Series A loan now stands at Gdes. 71,474,157.35.
This deduction has been effected by means of the regular amortization fund
provided in the loan contract which is sufficient to retire the entire issue
by maturity, and also by means of market fund operations, which have been
in effect during the past two fiscal years. As a result the Series A loan is
now being diminished at about double the rate which was originally con-
templated, and such acceleration in the early years of the loan will have a
cumulative effect in later years.
When the revenues of Haiti are between Gdes. 35,000,000 and Gdes.
40,000,000, twenty-five per cent of the proportion by which revenues exceed
Gdes. 35,000,000 must be set aside as a market fund for the Series A loan,
and percentages in proportion to their respective authorized amounts must
be made available for market funds for the B and C loans. However, such
market funds may be employed only if the bonds of the several issues may
be purchased on the open market at not to exceed par and accrued interest.
In the course of 1925-26 the Series A loan sold at 993/4, and therefore prac-
tically reached the point at which it would be impossible to effect supple-
mentary amortization by open market purchases. Under the terms of the
loan contracts bonds may only be drawn by lot for satisfying ordinary





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 81

amortization, but if the market fund cannot be expended for bonds at not
to exceed par, such fund reverts to the treasury as unobligated cash. In
view of the consistent strengthening of Haitian credit, there is strong
probability that in the near future the Series A and Series C loans will
reach or exceed par, and at such time progress in debt retirement will be
materially retarded by inability to effect supplementary amortization.
Foreseeing this contingency, a law was voted in the summer of 1926
which authorized the Minister of Finance and the General Receiver in
their discretion to employ treasury surpluses for the purchase of securities
of the Haitian state. In pursuance of such authorization approximately
Gdes. 3,000,000 of Series A bonds were purchased on the open market,
Gdes. 1,500,000 of Series B bonds were so obtained, and Gdes. 500,000 of
Series C bonds. These securities are held in the treasury as assets and
considered as cash. There are therefore available sufficient bonds to satisfy
the market fund for two or three years, even though the price of Haitian
securities should rise above par. In addition, the interest from such hold:
ings is covered into the treasury as miscellaneous receipts and is, of course,
at a much higher rate than could be obtained on sight or time deposits. *
Similar rapid reduction of the Series B loan was effected. Bonds of
this issue, which in 1924 sold in the low fifties, were difficult to obtain at
83 during the course of 1925-26. The discrepancy between the market
price of the Series A and Series B loans is due, first, to the fact that the
B bonds are payable in Haiti as to interest and principal and do not enjoy
so wide a market as the Series A bonds. So far as security goes, the B loan
rates equally with the A and C loans, all being payable in dollars and con-
stituting a first charge on the revenues of Haiti, subject to the deduction of
five per cent of customs revenues, which is, by the treaty of September 16,
1915, reserved for the costs of conducting the office of the Financial Adviser-
General Receiver. In the second place, the Series B bonds are subject as
to interest, but not as to principal, to the Haitian income tax of ten per
cent. In the opinion of this office, such a tax is without merit. But it
would be improper to abolish the tax on securities now outstanding. How-
ever, it is hoped that for possible internal loans in the future the income
tax will not be applied to issues of the Haitian state.
At the conclusion of the labors of the claims commission, there remained
unissued of the Series B loan Gdes. 3,836,290.30. At present this amount
is still carried as outstanding debt, in view of the fact that the protocol
between Haiti and France provided that certain French claims could be
submitted to a board of appeal. The value of claims so submitted was some
Gdes. 4,250,000. Though it is unlikely that awards of the board of appeal
will amount to any considerable figure, either in cash or in Series B bonds,
it was considered prudent to carry as outstanding debt the unissued portion
of B bonds, amounting to Gdes. 3,836,290.30, until the board shall have
concluded its deliberations. There is every likelihood, therefore, that dur-





82 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

ing 1926-27 outstanding Series B bonds will be drastically reduced by the
elimination of most of the unissued bonds, in addition to the regular sink-
ing and market fund operations. If this expectation be realized, out-
standing Series B bonds will be reduced to such an amount that regular
and supplementary amortization should be sufficient to retire the whole
issue in approximately half of its authorized life.
Ordinary progress in reducing the Series C loan can be reported.
Regular and supplementary amortization was effected, and the price of
these bonds, though unlisted on the New York Stock Exchange, is only
slightly inferior to that of the Series A loan.
There is some question as to whether outstanding and uncovered
fiduciary currency should be included as part of the public debt. It is non-
interest bearing and non-redeemable. But in the interest of conservatism
all nickel not covered by reserves of 100 per cent is included as public debt.
That considerable portions of outstanding issues of fiduciary currency have
been lost or worn out is beyond question. That any considerable proportion
of the fiduciary currency could be presented for redemption, even if it were
redeemable, is improbable, as most of such currency is required in the
ordinary conduct of business.
During 1925-26 the budgetary provision of Gdes. 420,000 was paid into
the fiduciary currency reserve, and an adjustment of some Gdes. 8,000
between the treasury and the Banque Nationale was effected, thus closing
a long standing question. As the result of additions to the fiduciary cur-
rency reserve of some Gdes. 420,000 in each of the past two years, and after
a similar budgetary appropriation is transferred during 1926-27, the
fiduciary currency reserve will presumably be sufficient to cover all subsi-
diary currency which may accumulate in the vaults of the Banque Nationale
de la R6publique d'Haiti during periods of inactive business.
Each item of the public debt, therefore, was on a substantially better
basis at the close of 1925-26 than at any previous period. There can be no
reasonable doubt that further rapid progress in reducing the public debt
will be made, unless additional loans for productive purposes be floated out
of the authorized loan of Gdes. 200,000,000, a considerable portion of which
is still unissued. At present there is no intention of resorting to further
loan operations.
Except as compared with governmental income, expenditures for debt
service are not particularly enlightening. Table No. 53 offers the requisite
data for such comparison. It appears that in 1925-26 Gdes. 10,618,094.20
were expended from revenue for interest and amortization of the public debt
and for the expenses incident to the debt service. This was Gdes. 800,-
616.24 less than the Gdes. 11,418,710.44 which were expended during
1924-25. The difference principally proceeded from the fact than in the
prior year Gdes. 2,500,000 were deducted from revenue and devoted to sup-
plementary debt retirement, whereas in the latter year only the amount speci-
















TABLE No. 53

EXPENDITURES FROM REVENUE FOR THE PUBLIC DEBT AND RELATION OF SUCH EXPENDITURES TO REVENUE RECEIPTS
FISCAL YEARS 1924-25 AND 1925-26


Fiscal year 1924-25 Fiscal year 1925-26

Expenses Interest Amortization Total Expenses Interest Amortization Total

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Series A................... 45,876.75 4,515,975.00 2,174.640.00 7,336.491.75 33,047.60 4,321.200.00 2,553800.00 6,908,047.60
Series B.... .............................. 1,090,770.09 1,862,381.05 2,453,151.14 .................. 911,742.21 1.236,882.79 2,148,62500
Series ..................... 1,089.15 768,759.95 439 218.45 1,209.067.55 2,608.90 716,806.50 422,006.20 1,141.421.60
Fiduciary currency reserve. ............................... .420,000.00 420,00000..................................420,000.00 420,000.00
Total expenditures..... 46,965.90 6,375,505.04 4,996,239.50 11,418,710.44 35,656.50 5,949,74871 4.632,688.99 10,618.09420
Revenue receipts.................................... ... ............. ................ 40,487,667.00 .................. .................................... 45,864,648.10
Ratio of expenditures from
revenue to revenue re-
ceipts................. ...... .11 15.75 12.84 28.20 .08 13.12 10.21 2341
.___________________________________________________________________________





84 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

fically stipulated in the fiscal agency contracts was used for such purpose.
These aggregated Gdes. 1,848,437.50.
In view of exceptionally large revenues during 1925-26 it might have
been supposed that equally important expenditures from revenue would
have been made for debt retirement. The explanation is as follows. In
that year the Claims Commission completed its work, and under the several
protocols and loan contracts it was provided that a part of the balance of
Series A loan, if all of that loan should not be required for satisfying the
awards of the Commission, should be devoted to supplementary amortiza-
tion of the public debt. In accordance with these requirements, Gdes.
1,500,000 out of such balance was utilized for debt reduction. This was
considered to be quite sufficient for the year in question. But the Gdes.
1,500,000 were not derived from revenue receipts, and therefore this amount
does not appear in Table No. 53.
Because of enlarged governmental receipts and because total expendi-
tures out of revenue for public debt purposes were inferior to those of the
previous year, the total percentage of receipts which was devoted to service
of the debt was 23.41 per cent, as compared with 28.20 per cent during the
previous year. Countries which need to employ no more than one-quarter
of their governmental income for debt purposes are both few in number
and fortunately situated. Such a ratio indicates that the debt is well
within the resources of the population.
When it is considered, furthermore, that interest charges absorbed but
13.12 per cent of total revenues, while 10.21 per cent was expended for debt
reduction, the relative burden of the public debt is even more strikingly
demonstrated. Prepayments of principal may well be regarded as capital
investments of Haiti in its own resources, rather than as current expendi-
tures. This type of investment will increase as interest charges on the
public debt rapidly decline, since slightly increasing payments on the Series
A, B and C loans are required during each succeeding year and since the
balance above interest is devoted to amortization. The rapidity of this
reduction in interest charges is evident by their decrease from Gdes.
6,375,505.04 in 1924-25 to Gdes. 5,949,748.71 in 1925-26. Subsequent
years will show progressive diminutions in interest payments. In fact in
but two or three years revenues devoted to amortization will exceed those
required for interest.
Aggregating all expenditures on the public debt which have been made
from revenue, from interest accruals on moneys in possession of the fiscal
agents and from balances of the Series A loan, and account being taken
of the fact that all of the issues purchased for debt retirement were obtained
below parity, it is found that during 1925-26 actual debt reduction
amounted to Gdes. 6,924,184.50. In contrast, required debt reduction only
amounted to Gdes. 3,586,091.82, thus leaving an excess amortization of
Gdes. 3,338,092.68.





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 85

Debt reduction almost 100 per cent greater than required under the
several fiscal agency contracts, as indicated in Table No. 54, has in con-
siderable measure contributed towards strengthening Haitian credit with
the result that several of the most prominent financial agencies in New
York now rate at "A" Haitian six per cent bonds, Series A.

TABLE No. 54
REQUIRED AND ACTUAL DEBT REDUCTION, FISCAL YEARS 1924-25 AND 1925-26

Fiscal year 1924-25 Fiscal year 1925-26

Debt Debt
Required Actual debt reduction in Required Actual debt reduction in
redebt t excess of debt excess of
reduction reduction require- reduction reduction require-
ments ments

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Series A Loan..... 2,190,850 00 3,059,080.70 868,230.70 2,363.900.00 8,709.261.95 1,345,361.95
Series B Loan..... 1,051.854.91 1,819,518.30 767,663.89 842,529.12 1,972,387.65 1,129,858.58
Series C Loan..... 345.242.95 518,638.40 173,895.45 879,662.70 814,547.90 434,885.20
Nickel currency
reserve.......... .. .... 420,000.00 420,000.00 .............. 427,987.00 427,987.00
Total.......... 3,587,947.86 5,817,237.40 2,229,289.54 8,586,091.82 6,924,184.50 8,888,092.68


ACCOUNTING
Only minor refinements in the accounting system were necessary during
1925-26. The accounts of the government are now carried in such form as
to present an immediate and accurate picture of Haitian finances. Approxi-
mately two weeks after the close of each month the accounts are completed
for the entire republic, reflecting the income of the government, detailed
operations of expenditure, the asset and liability position and the public
debt situation.
As to expenditures, Haitian procedure differs somewhat from that fol-
lowed in many other countries. Appropriations are not made available in
full at the beginning of each fiscal year, but become available in monthly
allotments of one-twelfth of each annual appropriation. Such allotments
cannot be exceeded except with prior written approval of the Council of
Secretaries of State. It therefore becomes necessary for the financial offi-
cers of the government to assure themselves not only that disbursements
are in accordance with legislative authorization but also that expenditures
under any given budgetary article do not exceed the monthly allotments.
It is equally important to know at any given time all funds which may have
become expendable under the allotment system but which have not been
employed. These data are assembled and published in a monthly financial
statement which carries separately each budgetary, supplementary and
extraordinary credit and indicates to the spending departments their exact
financial situation. This statement is the most important innovation in
accounting which was introduced during 1925-26.





86 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

Though prophecy is always dangerous, this office has believed that care-
fully considered estimates of future financial events are useful. Therefore
a detailed financial forecast is prepared at the beginning of each fiscal year
and is revised monthly as actual operating results become available. Guided
by such estimates, it has been possible to approve extraordinary credits and
supplementary amortization of the public debt even before actual revenues
for meeting the financial obligations which were involved had been received.
But the forecast so clearly indicated that the financial resources would be
available that there was no hesitation in undertaking the expenditures in
question. Results justified this reliance on prediction, since considerable
interest charges on the public debt were saved and necessary public works
and other improvements were accomplished at much earlier dates than
would otherwise have been possible.
Auditing in Haiti is not as yet upon a completely satisfactory basis.
During 1925-26, however, the principle of an audit was established, and
progress was made in making such audit effective. For the most part, what
might be called a pre-audit is practiced, as many types of expenditures are
only made after previous approval by the financial authorities.

DISBURSING OFFICE
Throughout the year 1925-26 the payment of governmental obligations
was promptly effected. In such a country as Haiti, where means of com-
munication with the remote districts are inadequate, there is considerable
difficulty in assuring government employees and other creditors that their
salaries, pensions and rentals will be promptly paid. Yet punctual payment
is most desirable, as employees and creditors are usually in modest circum-
stances and should not be compelled to suffer delay in receiving their com-
pensation.
In arranging for prompt payments throughout the republic, the Gen-
darmerie d'Haiti has been most helpful. Checks for payrolls, rentals and
other recurrent items are prepared by the disbursing office and are for-
warded to the district commanders of the Gendarmerie throughout the
republic in sufficient time that they may be distributed by the end of the
month during which payment is due. These checks are now prepared by
mechanical devices.
In order to prevent error, checks of the disbursing officer at Port-au-
Prince and of the several disbursing officers in the provinces are now num-
bered. There is always the possibility that checks may be improperly
utilized, but efforts have been made to minimize such danger.

SUPPLY BUREAU
Government supplies for the several departments, when ordered in large
quantities, are usually obtained through Mr. H. L. Hershey, purchasing
agent, at New York. Office equipment and supplies, however, are usually





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


furnished through the supply bureau attached to the General Receiver's
office, known as the "Bureau de Fournitures".
Supplies are warehoused and distributed on requisition to the various
organizations of the government at cost prices plus a moderate profit to
cover operating expenses and to repay the capital which was advanced from
the public treasury for the purpose of furnishing funds to organize the
supply bureau. During 1925-26 such sales amounted to Gdes. 262,641.18,
and the articles sold were obtained at a cost of Gdes. 236,125.05. Gross
profit of Gdes. 26,516.13 was therefore obtained. From this item operating
expenses of Gdes. 7,950.00 had to be deducted, leaving net profit of Gdes.
18,566.13. These figures compared with gross sales during 1924-25 of
Gdes. 206,465.71 and net profit of Gdes. 12,435.17.
Inventories of the Bureau de Fournitures were valued at Gdes. 127,-
010.62 as of September 30, 1926, as compared with Gdes. 116,198.00, less
estimated depreciation of Gdes. 2,500.00, as of the last day of the previous
fiscal year. During the present year depreciation was calculated in com-
puting the value of merchandise on hand, with the result that a separate
depreciation item was not necessary. Total assets were valued as Gdes.
178,366.97, against which liabilities of Gdes. 78,957.88 were deductible,
leaving a surplus of Gdes. 99,409.09, a figure which compares very favor-
ably with the previous surplus of Gdes. 81,795.21.
During 1925-26 only Gdes. 600.00 were reimbursed by the Bureau de
Fournitures to the treasury, as it was considered desirable somewhat to
expand working capital. At present, the financial position of the supply
bureau is such that substantial repayments on the Gdes. 59,400.00 still
owing to the treasury should from time to time be effected.

BUDGET AND FINANCE LAW
For the year 1926-27 the budget was prepared and duly voted as
required by law. Few novel features in either the budget or the law of
finance were introduced. Of most importance was the authorization of
expenditures which were within estimates of revenue. As it is believed
that the estimates of revenue were made upon a conservative basis, a surplus
of receipts over expenditures may again be expected'for 1926-27, unless
present cash balances, which are perhaps somewhat greater than circum-
stances justify, are drawn upon by means of extraordinary credits. At all
events, budgetary expenditures are under satisfactory control.
In the budget of 1926-27 new projects were eliminated, and appropria-
tions were voted only for the purpose of normal maintenance of existing
activities. This plan is believed to be sound in principle and should be
pursued in the future. New projects and additional activities should be
authorized only as funds for their establishment are available and only as
their continued maintenance would seem to be within the normal expecta-
tions of revenue.





88 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

Two years of experience have now been gained with the finance law in
substantially its present form, and results have been so satisfactory that
this law should now become permanent rather than annual legislation. If
this procedure should be adopted, it would then merely be necessary in
advance of each fiscal year to estimate receipts and proper expenditures
without the necessity of determining the rules and regulations which should
apply to financial operations.
In previous budgets many salaries of governmental officials were car-
ried in inconvenient denominations. There was also no uniformity in the
rates of pay which were authorized for approximately similar services. For
the budget of 1926-27 all salary rates were reduced to round figures, and
some equalization of compensation for governmental services was attempted.
There is no doubt that the compensation of many Haitian officials is
inadequate. Particularly is this true of school teachers. But the amount
and character of services rendered are not in many cases such as to justify
increased salary schedules, and at all events payments to teachers in rural
districts are not out of harmony with the general salary scale in such
regions. Furthermore, regular budgetary appropriations are now approxi-
mately equivalent to estimates of revenue, and it would obviously be inap-
propriate to prepare a deficitary budget. The improved financial position
of Haiti, with revenues greatly exceeding previous levels, has not continued
for sufficient time to demonstrate that such levels will be permanently
maintained. Therefore estimates of governmental income must be retained
upon a conservative basis and budgetary appropriations kept within esti-
mates if the satisfactory condition of Haitian finances is to continue.

CURRENCY
For several years Haiti has enjoyed a stable currency. That is, the
gourde has been on a gold basis, exchangeable on demand and without
expense for United States dollars at the ratio of five to one. This currency
stability has been a decided asset to Haiti, during the period in which many
other countries have been afflicted with violent currency fluctuations. Of
course changes in the general price level, as measured in gold, have been
supported by Haiti as well as by other gold standard countries. Since the
general level of prices has had a declining tendency for the last several
years, in so far as most commodities purchased by Haiti were concerned,
while the price of the chief export of this country-coffee-has been high
and even tending to advance, the relative economic position of Haiti has
been exceedingly strong. The inevitable reaction in the price of coffee
took place in the fall of 1926, and the prospect for additional bonanza years
is not bright. If, however, Haiti is induced to diversify and extend pro-
duction, present difficulties in the coffee trade may ultimately prove to
have been beneficial.





HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER 89

In spite of the unusual activities which characterized 1925-26 there was
no currency stringency. The Banque Nationale de la RWpublique d'Haiti,
which has the exclusive right of note issue in this country, supplied ade-
quate currency to meet all requirements. Nevertheless, a considerable por-
tion of the circulating medium in Haiti now consists of United States
currency, a condition largely induced by the fact that notes of the Banque
National are only issued in denominations of not to exceed ten gourdes.
It is the opinion of this office that the minimizing of American currency
in circulation in Haiti is desirable and that for this purpose the issue of
notes of higher denomination by the Banque Nationale is essential.
As of September 30, 1926, the total amount of money circulating in
Haiti was estimated as follows:
Gourdes
Notes of the Banque Nationale de la R4publique d'Haiti............ 12,275,000.00
United States currency-$1,500,000 ............................. 7,500,000.00
Subsidiary currency ........................................... 4,225,000.00
Total ................................. ........... 24,000,000.00

If the population of Haiti be estimated at 2,000,000, the per capital
circulation amounted to Gdes. 12, or $2.40. Such a modest circulation is
the best evidence of the undeveloped economic life of this country. It is
true that prices of local products are relatively low, and this may be
explained either as the result of low per capital circulation or else the low
per capital circulation may be considered the result of low prices and rela-
tively small supplies of consumable commodities. On this matter of inter-
pretation economic authorities are in sharp disagreement.
Though statistics are impossible to assemble, it is believed that the cir-
culation in Haiti of United States currency remains reasonably constant.
If so, the fluctuations in local monetary requirements are reflected by
changes in the outstanding notes of the Banque Nationale. Accordingly,
Table No. 55 shows such circulation at the end of each month, from 1919-20
TABLE No. 55
NOTES OF THE BANQUE NATIONAL IN CIRCULATION, BY MONTHS
FISCAL YEARS 1919-20 TO 1925-26

Month 1919-1920 1920-1921 1921-1922 1922-1923 1923-1924 1924-1925 1925-1926

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes (ourdes
October ........... 6,20.000 11,324,000 5,02.470 5,794,470 8,426,670 9,727,340 14,109,319
November........ 8.370,000 10,221,000 5.80,470 7.591,470 10,319,170 11,886595 15911,813
December........ 9,780,000 9.536,000 5,769.470 8,830 470 9,606,587 14.318.109 16.785,970
January .......... 10,80,000 7,471.000 5,704.470 9.698,470 9,283,005 15.451,197 16,886,779
February ......... 11,230,00 6,976 000 6,287470 10,191,470 10,850,646 16,783913 19,820089
March............ 11.485,0000 io 07i,470 11,775,470 10,460,471 16.419,219 18.811,338
April... .......... 11,505,000 6,8144170 6.22.470 10,257,470 9,975.243 15,076,717 16.966,038
lay .............. 12,05.000 5.584.470 6 195,470 8,746,470 9,158.500 14.129.579 15.418,497
June .............. 1220,000 5.284,470 6,182,470 8,097,170 8,360,691 12,475,106 13.916,500
July ..............12,800,000 5.19470 6.047.470 7,476.170 7.541,370 11.488.606 12,556,38
August ........... 12.750,C00 4,728,470 5.726,470 6,976,170 6,886,370 10,624.53 11,553.078
September ........ 1,240,000 4.571,470 5,726,470 6,979,170 6,975,310 12,571.319 12,277.158
Average...... 10,930,417 6,969,402 5,858,887 8,535,203 8.945,386 13,412,679 15,417,588





90 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

to the end of 1925-26. It will be observed that during the latter year out-
standing currency reached a new high level of almost Gdes. 20,000,000.
In no previous year had circulation attained Gdes. 17,000,000. An increase
in the amount of currency necessary to finance commercial activities is one
of the best evidences of the prosperity which characterized 1925-26. In
fact, during eleven months out of twelve, outstanding currency during
1925-26 was greater than during the corresponding month of the previous
fiscal year. During September, however, such circulation was inferior to that
of the last month of 1924-25. This is an excellent indication that 1926-27
will not be so commercially active as during the preceding year. But there
is no doubt that the commercial and financial life of Haiti is on a per-
manently higher plane than in previous years, with the exception of the
abnormally active fiscal periods which immediately followed the conclusion
of the European war.
On July 16, 1926, legislation was enacted sanctioning a contract
between the government and the Banque Nationale de la R1publique d'Haiti,
which is designed permanently to solve outstanding questions in regard to
fiduciary currency. In substance, the government undertakes to enlarge
the reserve against nickel and copper currency so that at all times such
reserve will cover subsidiary currency which may accumulate in the vaults
of the Banque Nationale. For many years the bank has undergone the
hardship of supporting the value of fiduciary currency, which was issued in
excess of commercial requirements during the period prior to 1915. If the
bank had not exchanged subsidiary currency on demand for its own notes
and for United States currency, there is no reasonable doubt that the minor
coins would have been quoted below parity.
On its side, the bank agrees to transfer from the subsidiary currency
reserve to the general funds of the government any sums by which such
reserve may exceed nickel and copper which has actually accumulated in
the vaults of the bank. It is therefore probable that in the course of time,
as commercial demands increase and present currency issues contract by
abrasion and loss, the reserve will gradually decline and finally disappear.
At all events, the fiduciary currency problem is now definitively solved.

BANKING AND CREDIT
Branch banking is well developed in Haiti, as in most other countries.
Only two financial institutions maintain organizations in this republic, the
National City Bank of New York through ownership of the Banque
National de la R6publique d'Haiti, on the one hand, and the Royal Bank
of Canada on the other. Operations of the former are regulated by a con-
tract with the government, by which this institution acts as receiving and
paying agent of the treasury. For such services a commission of one per
cent of all revenues is charged. As stated above, the Banque Nationale
also has the sole right of issuing gourde notes. In addition to its close