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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Title:
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-

Notes

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

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Harvard University Library
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Harvard University Library
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LLMC31885
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x HAITI




ANNUAL REPORT

OF THE


FINANCIAL ADVISER-GENERAL

RECEIVER

FOR THE FISCAL YEAR

OCTOBER, 1926-SEPTEMBER, 1927



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

J. S. STANLEY
Director General of Internal Revenue























Imprimerie du Service Technique
PORT-AU-PRINCE
HAITI



/., I












CONTENTS
PAGE
Im ports ........................ ....... ................................... .... I
E exports ......................... ............................ ........... .................... ......... .. 2
B balance of trade .............................................................................. .. .. 2
Origin of imports .... .... .---..................................................................... 4
D destination of exports ...................................................................................................... 5
Ports of entry for imports .- ......................................... ............... 8
Ports of embarkation for exports .................................... ............................... 9
Shipping ......................................... ................ .......................................................... II
Foreign commerce by months and by ports ............................ ................................... 6
Com m odities im ported .................... .... : ....................... .............. ............................. 18
Commodities exported ............................................................................................-. 23
Imports and exports of currency .................................................... .................... 28
Custom s adm inistration ..................................................... .......... ........................... 3
T ariff revision ........................................ .......................... ......................... .......... 3
Commercial conventions ........................................... ............................ ................... 32
Customs operations ........................................ ...... ............................................. 33
Internal revenue service ....................................................................................................... 47
Custom s receipts .................................................................. .. ............................... 50
Internal revenue receipts .......... ........................................ .................................... 64
Miscellaneous receipts ................................................................................................... 66
N on-revenue receipts ..................................................................... ................................... 68
Governmental expenditures .................................................................................. ..... 7
Treasury position ........................ .... ....................................................................... 85
Public debt .................................................. ..... .................................... 9o
A accounting ......... ............. ........................................................................................ 95
Disbursing office ....................................................................... .. .................. 96
Supply bureau ........ ......... ..................................................................................... 96
Budget and finance law .................................... ................. ... ....... 97
C currency ........... ..................... ............................................ ..... ........................... .......... 99
Banking and credit ........................................................ Ioo
Franco-Haitian Court of Appeal ............................................................ 102
P personnel ....................... .. ...... .......................................................................... 102
C conclusion .......... ... ............................................................. 103
Annex : Report of the Director General of Internal Revenue .................................. 11
Receipts by sources ... .... .................................................. .........13
Receipts by financial districts ..............................1... 7....
Receipts by financial districts and sources ................................................ 9
Internal revenue receipts according to sources and months ......................... II9
Receipts by rural communes ............................ ............................................... 21
Administrative and operating costs ....................... -...-------. ------------- 125
Administrative organization --- ---------.................... -. ........ 13
Personnel ---------..................................---------------.................................. ...................................-------............ -----3o
Quarters and equipment .--................................... ----------131
Digest of chief taxes collected ...-- 132
digest of chief taxes collected .....................--.........----..32................................................. 32
Emigration taxes
E m migration taxes ............................................................................................................ 132
Stamp service -- -----------------133
Income tax ..-...--.... .... .13.................. 3............................... 133

fir







IV CONTENTS

PAGE
Annex: Internal revenue service-Continued
Stock and bond tax ................................................................................................... 134
Occupational taxes on foreigners ........................................................................ 34
Public land rentals ........................................................... ............................ 135
Recording fees and property transfer tax ............................................................ 137
Consular fees ......................................................................................... ........................ 139
Steamship passage tax .............................................................. .............................. 39
Irrigation tax ..................... ............. .... ........................ ......................... 141
Conclusion ........................................................................ ............................................... 141
Appendix : Schedules ....................................................................................... ................. 143







STATISTICAL EXHIBITS
PAGE
I. Value of imports and exports, and excess of imports or exports, fiscal
years I916-17 to 1926-27 ............................................. ......................................... 2
2. Value of imports, showing countries of origin, in percentages, fiscal years
1916-17 to 1926-27 .......................................... .......... ................ .................- 4
3. Value of exports, showing countries of destination, in percentages, fiscal
years 1916-17 to 1926-27 .----------......................... ... ......... ............................... 6
4. Value of total foreign commerce, by countries, in percentages, fiscal years
I916-17 to I926-27 .............. .............................................. ....... ................... 7
5. Value and percentage of value of imports, exports, and total foreign
commerce, by countries, fiscal year 1926-27...................................................... 8
6. Value of imports, by ports of entry, fiscal years 1916-17 to 1926-27................ 9
7. Value of exports, by ports of shipment, fiscal years 1916-17 to 1926-27.......... IO
8.Value and percentage of value of imports, exports, and total foreign
commerce, by ports, fiscal year 1926-27......................................................... ..... II
9. Net tonnage of steam vessels in foreign commerce entered and cleared,
by registry and months, fiscal year 1926-27 ..................................................... 12
Io. Net tonnage of sailing vessels in foreign commerce entered and cleared,
by registry and months, fiscal year 1926-27 ........................................................ 13
II. Value of imports, by registry of carrying vessels, fiscal year 1926-27 ....... 14
12. Value of exports, by registry of carrying vessels, fiscal year 1926-27 ............ 15
13. Value of imports, by months and ports of entry, fiscal year 1926-27
compared with 1925-26 ................. ......................................... ...................... 17
14. Value of exports, by months and ports of shipment, fiscal year 1926-27
com pared w ith 1925-26 ....................... ................. ..... ................................. ... 18
15. Value of imports, by commodities, fiscal years 1916-17 to 1926-27 ................. 20
16. Quantity of imports, by commodities, fiscal years 1916-17 to 1926-27 ............ 21
17. Value of exports, by commodities, fiscal years 1916-17 to 1926-27 .............. 24
18. Quantity of exports, by commodities, fiscal years.I916-17 to 1926-27 ............ 25
19. Quantity and value of five principal exports, by ports, fiscal year 1926-27
compared with fiscal year 1925-26 ...................................... ...... 26
20. Percentage of value of exports, by commodities, fiscal years 1916-17
to 1926-27 ...... .... ........................................................... ....................... 27
21. Quantity and value of exports, by commodities and months, fiscal year
I926-27 ...................._............................... ... ....................................... ..... ...... 29
22. Imports and exports of currency, fiscal years 1922-23 to 1926-27 ................... 30
23. Receivership fund, fiscal years 1916-17 to 1926-27 ................................... .... 34
24. Expenses of Financial Adviser-General Receiver, by objects of expenditure,
fiscal years I916-I7 to 1926-27 ......................................................................... 36
25. Expenses of administration of office Financial Adviser-General Receiver,
by objects of expenditure and by months, fiscal year 1926-27 .................... 37
26. Expenses of customs operation, by objects of expenditure and by months,
fiscal year 1926-27 ......................... .............. ...... ...... ........ ......... ... ... 38
27. Repairs and improvements to customs plant and equipment, fiscal year
1926-27 ..................................................................................... 39
28. Distribution of expenditures from receivership fund, fiscal year 1926-27.... 42
29. Costs of customs operations, by ports, and costs of administration,
permanent improvements and treasury commission, fiscal years 1919-20
to 1926-27 ........................... ................ AA







vi STATISTICAL EXHIBITS
PAGE
30. Total cost of collecting each gourde of customs receipts, fiscal years
1919-20 to 1926-27 ........................................ .......... .---- 45
31. Total disbursements from receivership fund, by months, fiscal year 1926-27 46
32. Operating allowance of Internal Revenue Service ....................................... 48
33. Costs of Internal Revenue Service, by objects of expenditure, fiscal years
1923-24 to 1926-27 .................................................... ......... ........ ..................... 49
34. Revenues of Haiti, by sources, fiscal years 1889-90 to 1926-27 ..................... 51
35. Relation between import and export values and customs receipts, fiscal
years 1916-17 to 1926-27 ....... ..................-.............-- 55
36. Customs receipts, by months, fiscal years 1916-17 to 1926-27 ......................... 56
37. Customs receipts, by ports, fiscal years 1916-17 to 1926-27 ............................. 59
38. Customs receipts, by sources and ports, fiscal year 1926-27 -----..........--- ....... 61
39. Customs receipts, by sources and by months, fiscal year 1926-27 ................- 61
40. Distribution of customs receipts, fiscal years 1916-17 to 1926-27 ...-............... 63
41. Internal revenue receipts, by sources, fiscal years 1919-20 to 1926-27 ............ 64
42. Miscellaneous receipts by sources and by months, fiscal year 1926-27 ....... 66
43. Revenue and non-revenue receipts, by ports or financial districts, fiscal
year 1926-27 ................................................... .......... .......................... .... .................. 68
44. Total receipts of Haitian government, by sources, months, and ports,
fiscal year 1926-27 .................. ........... ............ ........ .............. ..... 69
45. Expenditures of Haitian government, by services, fiscal years 1916-17
to 1922-23 .................................................................... ......................... .................. 70
46. Revenues and expenditures, fiscal years 1923-24 to 1926-27 ...................... 72
47. Source and disposition of revenues, in percentages, fiscal year 1926-27 ........ 81
48. Reimbursements to appropriations, fiscal years 1925-26 to 1926-27 ................. 83
49. Revenues and expenditures and excess of revenues or expenditures,
fiscal years 1916-17 to 1926-27 .......... ................. ....................................... 84
50. Receipts and expenditures, by months, fiscal year 1926-27 .............................. 86
51. A assets and liabilities ................................. .............. ................. ............. .. .... 87
52. Public debt ....... .............................. ...... .. .......... .. .... ............... .................... 90
53. Expenditures from revenue for the public debt and relation of such
expenditures to revenue receipts, fiscal years 1925-26 and 1926-27 ............ 94
54. Required and actual debt reduction, fiscal years 1925-26 and 1926-27 ............ 95
55. Income account of Bureau de Fournitures, fiscal year 1926-27 ..................... 97
56. Assets and liabilities of Bureau de Fournitures, September 30, 1927 ............ 98
57. Notes of the Banque Nationale in circulation, by months, fiscal years
1919-20 to 1926-27 ..................... ....................................................................... 00
58. Loans and deposits of banks in Haiti, by months, fiscal year 1926-27 ............ 1o

ANNEX : INTERNAL REVENUE SERVICE
I. Annual internal revenue receipts for the years 1911-12 to 1926-27 ............. 113
2. Internal revenue receipts by sources, fiscal years 1919-20 to 1926-27 .......... 114
3. Internal revenue receipts, by collection districts, fiscal years 1919-2,
to 1926-27 .. ... ........................................................ 117
4. Internal revenue receipts, by sources and districts, fiscal year 1926-27 ........ 118
5. Internal revenue receipts, by sources and months, fiscal year 1926-27 ............. 12
6. Internal revenue receipts by months, fiscal years 1919-20 to 1926-27 ............ 121
7.-Internal revenue receipts of rural communes, fiscal year 1926-27 ...................122-123
8. Operating allowance of Internal Revenue Service, 1924-25 to 1926-27 -...... 125
9. Expenses of Internal Revenue Service, by objects of expenditure 1924-25
to 1926-27 ... ............... ................................................................................. 125
10. Cost of Internal Revenue Service, by objects of expenditure, fiscal years
1923-24 to 1926-27 ..... ....................... ................................. 26







STATISTICAL EXHIBITS


PAGE
In. Expenses of administration and operation of Internal Revenue Service
by districts, 1924-25 to, 1926-27 ...................... ...................... ........................ 126
12. Expenses of Internal Revenue Service by objects of expenditure and by
months, fiscal year 1926-27 ....... ........................................................................ 127
13. Expenses of administration and operation of Internal Revenue Service,
by districts and months, fiscal year 1926-27 ..................................................... 128
14. Cost of collecting one gourde of internal revenue, by districts and months,
fiscal year 1926-27 .......................... ................. ................................................. 129
5. Personnel .................................................................... .................. 13
16. Emigration statistics 1922-23 to 1926-27.................................................................. 132
17. Receipts from foreigner's occupational tax, fiscal year 1926-27 ....................... 135
18. Public land rentals, fiscal year 1926-27 ............................ :..................................... 136
19. Value of sales and mortgages of real property, fiscal year 1926-27 ............... 137
20. Consular fees accruing to the state, fiscal years 1924-25 to 1926-27 ............... 138
21. Receipts from steamship passage tax by ports, fiscal year 1926-27 .............. 139
22. Receipts from steamship passage tax by months, fiscal year 1926-27 ........... 139
23. Receipts from irrigation taxes, fiscal year 1926-27 .................................. ... 141

APPENDIX : SCHEDULES
I. Quantity and value of imports into Haiti, by countries of origin, October,
1926 to September, 1927 ......................... ........................ ............................... 145-169
2. Quantity and value of exports from Haiti, by countries of destination,
October, 1926 to September, 1927 .............. ............................................. 170-174
3. Customs receipts, by sources, by ports, and by months, fiscal year 1926-27 175-178
4. Internal revenue receipts, by sources, districts and months, fiscal year
1926-27 ....... .................. .......... ................................................... 179-186





















HAITI
ANNUAL REPORT OF THE FINANCIAL ADVISER-
GENERAL RECEIVER FOR THE FISCAL YEAR
OCTOBER, 1926 SEPTEMBER, 1927.











HAITI
ANNUAL REPORT OF THE FINANCIAL ADVISER-GENERAL
RECEIVER FOR THE FISCAL YEAR OCTOBER, 1926-
SEPTEMBER, 1927


OFFICE OF THE FINANCIAL ADVISER-GENERAL RECEIVER

Port-au-Prince, Haiti, November 30, 1927.

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 transmitted herewith the eleventh annual report of the commerce
and finances of Haiti, which stlmmarizes and extends the monthly reports
required by Article 7 of the treaty of September 16, 1915, between the
United States and the Republic of Haiti.
Recession from the abnormally favorable results of 1925-26 was charac-
teristic of 1926-27. Foreign commerce and governmental revenues declined
substantially, but sufficient strength had been developed by the commercial
organism and by the public treasury that no serious consequences occurred.
At no time was the treasury embarrassed because of declining receipts,
and retirement of the public debt continued at a rapid pace.
Prospects for 1927-28 are favorable. Haitian finances may be regarded as
definitely established "on a firm and solid basis" as contemplated in the
treaty, and principal attention now needs to be directed toward developing
the economic resources of the country and to advancing the educational
standards of the population.

Imports
Foreign commerce was valued at Gdes. 155,252,042" in 1926-27 which
represented a decline of Gdes. 40,246,013 or 20.59 per cent from the pre-
vious year. Lessened quantities and lower unit prices of Haiti's principal
exports constituted the fundamental explanation of the decline in question,
although other causes contributed, as will later be indicated.
Table No. I shows imports valued at Gdes. 78,756,600, which was

*One gourde equals twenty 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

Gdes. 2,261,158 in excess of exports of Gdes. 76,495,442. Purchasing power
for imports in Haiti is largely derived from direct exports, as both invis-
ible debits and credits are not of outstanding importance. The decline in
imports amounted to 16.44 per cent, and the year in question returned
lower values than during four other years of the receivership. Undoubtedly
commercial equilibrium was affected by the introduction of a thorough-
going revision of the customs tariff. Effort was made to introduce excess
quantities of merchandise on which customs duties were to be increased
before such increases should become effective and to delay purchases of
merchandise on which reductions were proposed. Thus in both value and
classification of imports the year 1926-27 can hardly be regarded as
normal.

TABLE No. i
VALUE OF IMPORTS AND EXPORTS. AND EXCESS OF IMPORTS OR EXPORTS
FISCAL YEARS 1916-17 TO 1926-27

Year Imports Exports Total Excess Imports Excess Exports

Gourdes Gourdes Gourdes Gourdes Gourdes
1916-17 .... ... ....... 43.030428 44,664.428 87,694.856 ........... ...... 1,634.000
1917-18 .... ... ........ 50,90 468 38.717,650 89,621,1 18 12.185.818 .................
1918-19 .... ... ........ 85588.041 123,81 i,o96 209,399,137 ... ............ 38,223.055
919-20 ... ............ 136.992,055 108,104,639 245,096.694 28,8874 6 ................
92 -21 .... ... ........ 59.786,029 32.952,045 92.738.074 26,833,984 .................
9 1-22 ..... ........ 61.751355 53.56105 5,312,405 8,190,3 .................
1922-23 ... ... 70.789,815 72.955o6o 143,744.875 .................. 2,165,245
923-24 ...... .. ..... 73,48o,640 70.88 ,6 o 44,362,2 2,5 9 3 .................
1924-25 .... ........... ,87,825 97,o018810 198,206,635 4169 15 ................
1925-26 ....... ...... 94,257030 101.241,025 195,498,055 .... ......... 6,983,995
192 -27 ...... 78.756,600 76.495.442 155252.42 2,261,158 .................
Total .................. 856,525.286 820.402.855 1,676,926,141 85,126,726 49,oo6,295


Exports

Export values also declined from Gdes. 101,241,025 in 1925-26 to Gdes.
76,495,442, or by Gdes. 24,745,583 or 24.44 per cent. This was the most
unsatisfactory feature of the entire year in so far as commerce and finances
were concerned. Haiti is at a period of development in which the value of
exports should be constantly and sharply expanded.
To be sure, the decline in value of exports was largely explained by
smaller volume and lower unit price of the one commodity, coffee. As long
as Haiti continues as a one-crop country, similar extensive fluctuations in
the value of exports can be anticipated.


Balance of Trade

Haitian imports during 1926-27 were valued at Gdes. 2,261,158 more
than exports. Although fully recognizing the fallacy of mercantilism, this
office is of the opinion that Haiti's welfare will at present be served as well
as evidenced by a substantial excess of exports. Few manufacturing indus-
tries exist. Aside from increased production of certain classes of food-






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


stuffs, therefore, enhanced standards of living for the Haitian population
necessarily involve importation of merchandise from abroad. Clothing,
building materials, household equipment, machinery and the numerous
articles which connote modern existence must be purchased abroad if they
are to be consumed in Haiti. Such purchases cannot be effected unless cor-
responding values are produced and exported.
For the foregoing reason the balance of trade in a country such as Haiti
becomes of far more importance than in highly industrialized countries
like Great Britain and Belgium. Such countries can systematically improve
their standards of living and at the same time report recurrent excesses
of imports over exports. For a country like Haiti this is impossible.
A temporary excess of imports'would indeed be welcome if it repre-
sented improvements in the means of production. Many countries during
their developmental stage have reflected for a short time a balance of
imports, later to be succeeded by a large export balance as payments of
interest and principal on foreign borrowings came into force. To some
extent Haiti has improved its productive plant during 1926-27, possibly as
much as the unfavorable merchandise balance. There is also the probability
that if visible and invisible items of both debits and credits could be com-
puted it would be found that there was actually an excess of receipts over
expenditures on foreign account. Import values are computed on the basis
of foreign cost plus all charges for placing such merchandise in Haiti, ex-
ception being made of customs duties. Therefore statistics of imports ac-
curately reflect the total sums which must be paid abroad for import
account. In the case of exports, values are computed on the basis of mer-
chandise placed aboard vessel, duty paid. In short export statistics attempt
to set forth the net proceeds which Haiti receives for commodities shipped
to foreign countries.
As a consequence, invisible debits and credits are not great as concerns
ocean freight, insurance or other shipping charges. Expenses of foreign
tourists in Haiti or.of Haitians in foreign countries are also negligible, as
are Haitian investments abroad. In fact the only items of real importance
are, on the credit side, savings in the possession of returning Haitian emi-
grants and expenditures of the United States 'Marine Corps in Haiti.
Principal among the debits is the fact that numerous commercial houses
and certain industrial and agricultural enterprises are financed with
foreign capital, thus involving remittances abroad which are not directly
compensated by credit items. Another factor of the same nature is the
fact that Haiti's public debt is largely in the hands of foreigners, thus
involving constant remittances for interest and amortization account.
In all probability the credit items listed above were of more importance
than the debits. If this be true it would follow that the apparent excess of
imports should probably be replaced by a small excess of exports. At all
events, it is fair to conclude that there was an approximate equivalence of






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


foreign payments as well as foreign trade in 1926-27. This merely con-
tinued the experience of recent years. Aggregating the totals for the last
five fiscal years, there was only a difference of Gdes. 120,o37 between the
values of imports and exports. While it is evident, therefore, that great
stability has characterized the commercial balance, it must frankly be
stated that commercial progress is less than might have been desired.
Instead of a close correspondence between the value of imports and that
of exports it would have been far more desirable to report a large increase
in excess of exports, at least until advancement in the standard of living
of the population should involve a corresponding growth in the import
trade.

Origin of Imports

Few countries obtain such a large percentage of imported merchandise
from a single source of supply as does Haiti. Table No. 2 shows the value
of imports classified according to countries of origin and reduced to a per-
centage basis. For the entire period of the receivership 82.62 per cent of
total imports have been furnished by the United States. In 1926-27 this
percentage was 76.56, which was lower than the average, but also slightly
higher than 74.22 per cent which was reported in the preceding fiscal
year. Thus there was apparently little indication of decentralization in


TABLE No. 2

VALUE OF IMPORTS. SHOWING COUNTRIES OF ORIGIN, IN PERCENTAGES
FISCAL YEARS 1916-17 TO 1926-27


Average Average Average
Country of Origin 1916-17- 1921-22- 1925-26 1926-27 1916-17-
1920-21 1925-26 1926-27

Per cent Per cent Per cent Per cent Per cent
United States ............. 87.09 79.37 74.22 76.56 82.62
France ...................... 4.71 5.97 7.27 6.76 5.47
United Kingdom .......... 5,85 7.30 7.24 5.02 6.43
Bahama Islands ........... .c2 .02
Belgium .................... .60 .62
Canal Zone ............... .22 .14
Cuba ...................... .05 .or
Curacao .................... .70 .81
Denmark .................... .29 .18
Dominican Republic ...... .47 .71
Germany .................35 736 4.63 4.65
Italy ....................... 1.42 I.00 5.48
Jamaica ..................... .07 .25
Netherlands ................ 2.10 1.93
Porto Rico ................ .32 .96
Switzerland ............... .03 .04
Virgin Islands ............. .o ................
All other ....................34 34
Total ................. ioo.oo oo.oo loo.oo 1oo.oo 100.00


the source of Haitian imports. Only one explanation for this situation can
be advanced, namely, that American merchants are able to offer greater
advantages as to price, quality and time of delivery of merchandise.






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 5

Otherwise the import trade of Haiti would not be so uniformly directed
toward the United States.
Haitian imports are largely confined to foodstuffs, construction ma-
terials, and the cheaper forms of textiles. All of these commodities are
produced in large quantity in the United States, and even in distant
markets they are successfully placed in competition with European prod-
ucts. There is even more reason for a distinct advantage in favor of Ameri-
can merchandise in a country such as Haiti, which lies at the very door of
the United States and with the exception of Canada is practically the
closest foreign country to the great export center of New York.
Because of the dominating position of the United States, Haitian imports
from other countries were of relatively small importance, only five other
countries furnishing as much as one per cent of the total. These were in
order of importance, France, Great Britain, Germany, the Netherlands and
Italy. In each of these cases, except that of Germany, the percentage was
less than during 1925-26, and the percentage of Germany for the two years
was practically identical. On the other hand, imports from the Dominican
Republic, Jamaica and Porto Rico increased materially, though the total
in each instance was of little significance.
Renewed concentration of Haitian imports was in contrast with a tend-
ency toward decentralization which has been in effect for several years.
In fact the relative importance of the import trade with the United States
had declined in each successive year from the five-year average for 1916-17
to 1920-21 and including 1925-26. In the opinion of this office, therefore,
the year 1926-27 was probably exceptional, though abolition of the former
tariff preferential accorded to France on a wide variety of commodities
and the substitution of a smaller list on terms which are also available to
countries concluding most-favored-nation arrangements with Haiti may
have contributed to the result.

Destination of Exports

One of the most outstanding features of the foreign commerce of Haiti
for 1926-27 was the pronounced diminution in the concentration of exports.
For the years 1921-22 to 1925-26, inclusive, France absorbed 62.29 per cent
of Haitian exports, and-this increased to 65.13 in 1925-26, as indicated in
table No. 3. Therefore a decline to 47.51 per cent for I926-27 or 27.05 per
cent, was notable indeed and also connoted.definite improvement in the
fundamental soundness of the Haitian commercial situation. The foregoing
statement by no means implies that Haiti should fail to recognize the out-
standing importance of France as an outlet for its products over the course
of many decades. Even at present France purchases substantially half of
the exported values of Haiti. Nevertheless, it can hardly be argued that
France purchases Haitian commodities from any motive except the single







IAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


one of self-interest. In the absence of governmental control there is no
instance recorded in commercial history of the merchants of any country
purchasing merchandise from another except on the basis of advantage
in price, quality and delivery. With as much reason could it be argued that
France should be grateful to Haiti for producing coffee which especially
pleases the palates of its citizens as for pretending that gratitude is due
from Haiti to France because most Haitian products have found a market
in that country. It is a business proposition on each side, with attendant
mutual benefit, as is the case in every legitimate business operation.


TABLE No. 3
VALUE OF EXPORTS, SHOWING COUNTRIES OF DESTINATION, IN PERCENTAGES
FISCAL YEARS 1916-17 TO 1926-27

Average Average Average
Country of destination 1916-17- 1921-22- 1925-26 1926-27 1916-17-
1920-21 1925-26 1926-27

Per cent Per cent Per c P ent Per cent Per cent
United States ............. 52.85 I.o2 6.79 7.81 29.74
France ......................... 35.98 62.29 65.13 47-5I 48.?9
United Kingdom .......... 1.45 4.40 3-58 5.16 3.13
B arbados ..................................... .................
Belgium .................... 5.24 5.20
Canada o.............. ... 8o 2.48
Canal Zone ................. 22 .17
Cuba ................ ....... o 3.86
Denmark ................... 8.oo 8.13
Dominican Republic ....... .02 .04
Germany ................... 9.72 22.29 2.44 6.22 1 8.14
Italy ........................ 2.25 3.64
Netherlands ................. .62 3.09
Norway .................... 1.23 .78
Porto Rico ................ .16 .86
Spain ....................... .89 3.42
Sweden ..................... .47 .87
All other .................. .14 .82

Total ................. 100.00 1oo.oo0 oo.oo 1oo.oo loo.co


No doubt export outlets are more difficult of acquisition than the mere
transfer of import orders from one country to another. Particularly for
this reason it has been the opinion of this office that Haitian exports
should not be so extensively directed toward the one market, France. Po-
litical or financial disorders in a dominating market could seriously embar-
rass the Haitian situation, even though no fault in administration could
be attributed to Haiti. Accordingly, it is not because Haitian exports sold
in France have diminished in the year under review but because there
has been a relatively larger demand for Haitian products on the part of
other countries that this office considers the distribution of exports as
decidedly more favorable.
By reason of the sharp decline in the proportion of exports purchased
by France, the participation by practically all other countries increased.
It is rather surprising to note that the second country of importance as
regards exports from Haiti was Denmark, followed in order by the United







HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


States, Germany, Belgium, Great Britain, Cuba, Italy, Spain, the Nether-

lands and Canada. In. each case, with the one exception of Belgium, the

percentage was greater than during 1925-26. Increases of particular im-

portance occurred for Canada, which purchased considerable quantities of

Haitian sugar, for Germany and for Spain. Most important of all was the

increase of from 0.02 per cent to 3.86 per cent in the case of Cuba. This

country came on the market for considerable quantities of Haitian coffee,

and no pains should be spared in attempting to satisfy Cuban requirements.

Table No. 4 combines both imports and exports, so far as countries of

origin and of destination, respectively, are concerned. First place easily

went to the United States, with 42.68 per cent of the total, and France was

as easily second with 26.84 per cent. However, a tendency of several years

was reversed. For some time the percentage of the United States has de-

creased and that of France increased, until in 1925-26 they were not far

from equivalent. For 1926-27 the United States handled 59.01 per cent

more Haitian commerce than did France. It is also interesting to note that



TABLE No. 4


VALUE OF TOTAL FOREIGN COMMERCE, BY COUNTRIES,
FISCAL YEARS 1916-17 TO 1926-27


Country


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


Avera.ie
1916-17-
1920-21

Per 'ent
72-53
18.39
4.03








5.05


Average
1921-22-
1925-26

Per cent
45.63
33.83
5.85








| 14.69


Total ................. I oo.ool 1oo.oo


1925-26


Per cent
39.4I
37.25
5.35
.02

3.00
.48
.23
.04
.39
4.27
.24
3.50
1.67
.03
2.39
.64
-.24
.52
.24
.o2

.07

100.00


IN PERCENTAGES


I Average
1926-27 1916-17-
1926-27

Per cent Per cent
42.68 57.59
26.84 26.I8
5.08 4.95
.03

2.87
1.26
.16
1.91
.61
4.10
.38
5-42 II.2
2.30
.14
2.51
.40
.88
1.72
.43
.02

.26

100oo.oo roo.oo


the position of France in 1926-27 was almost identical with the eleven-year

average. For the United States, however, there was a decline from 57.59

per cent for the past eleven years to 42.68 per cent in 1926-27. This decline

was absorbed by distribution among the various countries which conduct

commercial relations with Haiti.









0 HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


For convenient summary, table No. 5 assembles the trade of Haiti for

1926-27 in accordance with the values of imports and of exports, as cor-

related with the countries of origin and destination, respectively, and also

the value of imports and exports combined, together with the appropriate

percentages.



TABLE No. 5

VALUE AND PERCENTAGE OF VALUE OF IMPORTS. EXPORTS, AND TOTAL FOREIGN
COMMERCE. BY COUNTRIES. FISCAL YEAR 1926-27


Country


Argentine ..................
Austria .....................
Bahama Islands...........
Belgium ....................
British Islands .............
Canada .....................
Canal Zone ..............
China ......................
Colombia ....................
Cuba ........................
Curacao .....................
Czechoslovakia ............
Denmark ...................
Dominican Republic .......
Egypt ........ ..............
Finland .....................
France .....................
French Africa .............
French Indo-China .........
Germany ...................
Guadeloupe .................
Hungary ...............
Italy .... ...............
Jamaica .....................
Japan .......... .............
Madeira Islands ............
Martinique .................
M exico ......................
Netherlands .............
Norway ....................
Palestine ...............
Peru ........................
Porto Rico ................
Spain .......................
Sweden ...........
Switzerland ............
Syria .......................
United Kingdom ...........
United States ...........
Venezuela .................
Virgin Islands .............

T total .................


Imports


Gourdes
2
2,771
11,831
488.005
68.265
62,565
113.965
2.187

10,052
639.357
11.307
146,266
558.923
107

5,329,008
2
441
3.659,245
135
49
783.393
199.724
54.643
803

30
1.520.572
7.165
r124
6.705
758,055
62,605
488
31,434
78
3.939,559
60,285.103
284
1.352


78.756,6001


Per cent


.02
.62
.09
.o8
.14


.01
.81
.02
.18
.71


6.76


4.65


1.00
.25
.07



1.93


............
.96
.08

.04

5.02
76.56

. ......


Exports


Gourdes


42.472
3.975.274

1.898.070
127,387

480
2.949.817
297.565

6.221.242
31.097

148.-93
36.340,605
24,962

4.753.743
40

2,786,136
7.496
41.,"15

12.570

2,367.467
599.850

38
606.924
2.613.415
663.490


3.948,823
5.974,275
61,896
.0ooo


Ioo.oo 76.495.442


Per cent
..............

.o6
5.20

2 48
.17


3.86
-39

8.13
.04

.19
47.51
.03
.......
6.22


3.64

.05

.02

3.09
.78

.............
.8o
3.42
.87


5.16
7.81
.o8
.............


I I


Total


Gourdes Per cent
2 ..........
2.771 ...........
54.303 .03
4,463.279 2.87
68,265 .04
1,960.635 1.26
241,352 .16
2.187 .............
480 ...........
2,959.869 1.91
936.922 .61
I 1.3 7 ...........
6.367,508 4.10
590,020 .)8
107 ...........
148,293 .10
41,669,613 26.84
24.964 .02
441 .........
8,412,988 5.42
175 ..............
49 ..............
3.569.529 2.5o
207.220 .14
95,658 .o6
803 ..............
12.570 ...........
30 ..........
3.888.039 2.51
607.015 .40
124 .............
0,743 ...........
1.364.979 .88
2.676.020 1.72
663.978 .43
31.434 .02
78 ............
7.888.382 5.o8
66.259.378 42.68
62.180 .04
2,352 .............


1oo.oo 155.252.0421


Ports of Entry for Imports


As the United States furnished the major portion of Haitian imports,

so Port au Prince stood in a dominating position as a port of entry. Out

of total imports in 1926-27 of Gdes. 78,756,600, Port au Prince received

46,488,467 or 59.03 per cent. Because it so far surpasses the other towns

of Haiti as a center of population and by reason of its added importance

as the capital of the government which is rather highly centralized imports


100.00






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


at that port will continue to take first place. That they will constitute
more than half of the total over a prolonged period of years is, however,
very doubtful.
As set forth in table No. 6, only a few ports of the republic showed
greater import values in 1926-27 than in the previous year, and these were
all minor ports. Declines of extensive proportions occurred for Cap Hai-
tien, Jacmel and Port de Paix, with smaller recessions for Cayes, Gonaives,
Jeremie, Petit Goave, Port au Prince and Saint Marc.
It so happens that total imports for 1926-27 were closely similar to the
average from 1916-17 to 1926-27, inclusive. Comparison of the commercial
trend in the several ports is therefore facilitated. There has been rather
uniform expansion in the case of Cayes, Jacmel, Jeremie, Miragoane, Port
au Prince and Saint Marc. Reductions' were recorded for Cap Haitien,
Gonaives, Petit GoAve and Port de Paix. For Cap Haitien, the coffee crop
of the year under discussion was quite unsatisfactory, and there is reason
to believe that no permanent recession of commercial activity need be
expected at that port. In fact certain agricultural developments are now in
course in the Cap Haitien district which should in due time make Cap
Haitien the second most important port of entry and of export of the re-
public. For Port de Paix a similarly optimistic statement cannot be made.
This port was formerly a heavy shipper of logwood, but logwood supplies
have been largely exhausted, and compensating industries have not been
developed. Thus purchasing power has diminished, and imports have
followed suit.

TABLE No. 6
VALUE OF IMPORTS, BY PORTS OF ENTRY, FISCAL YEARS 1916-17 TO 1926-27

Average Average Average
Port of entry 1916-17- 1921-22- 1925-26 1926-27
1920-21 1925-26 1926-27

Gourdes Gourdes Gourdes Gourdes Gourdes
Aquin ...................... 156.514 120,425 4,900 24,739 128,130
Belladire ............ ..... ...... ...... 6.482 28.415 222.478 23,172
Cap Haitien ................ 9,987,651 8,293.009 9.133.525 6,937,571 8,940,079
Cayes ....................... 6,443,055 7.440,221 8,324,560 7.243,564 6.969.086
Fort Liberti ............... 257 6 8 ............. ...... .... 398
Glore ...................... .......... 81,567 153.815 0oo,181 46,183
Gonaives ................... 3.922,744 3.732.077 3.992.775 ,.309,762 3,780,351
Jacmel ...................... 3.457.767 4,904,482 6.188,200 4.414,352 4,202.327
Jerimie ..................... 1,942,796 1,579.913 2,579,320 2,073.507 1,789.732
Miragoane .................. 518.426 956,170 957.895 1,o69,166 767.468
Ouanaminthe ............... 27,035 287.016 129,265 15o,58o 156,440
Petit Goae ...... 2,74944 2,081.535 2,795.930 2,229,860 2.364,750
Port au Prince .............. 41,712,019 45.889,008 53.754,525 46.488,467 44,044,873
Port de Paix ....... 2.087026 2,059178 3.006.280 1,865.277 2 54.209
Saint Marc ................ 2.329.771 2.861.632 3.207.625 2,627.096 2.598.555
Total ................. 75.260,005 80.293.333 94.257,o 0o 78,756.600 77.865.753


Ports of Embarkation for Exports

Although export values sharply declined in 1926-27 there were certain
ports which gave a good account of themselves. These, as listed in table







10 HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER

No. 7, were Cayes, Miragoane and Port au Prince. In the first two cases
export values actually increased, and in the last they were practically
identical. In contrast, sharp declines characterized all of the other im-
portant ports, particularly Aquin, Cap Haitien, Gonaives, Jacmel, Jeremie,
Petit Goave, and Port de Paix, and to a less extent St. Marc. In each case
lessened quantity or price of the two commodities, coffee and cotton, was
the explanation.
Average export values for the receivership period, compared with those
of 1926-27, well illustrated the progress of the export trade for the years
in question. There was a decline in the case of Aquin, Cap Haitien, Port
au Prince and Port de Paix. For Cap Haitien the decline was undoubtedly
temporary. For Port de Paix it was permanent unless new industries be
developed. Satisfactory increases were reported for Cayes, Jacmel, Jere-
mie, Miragoane, Petit Goave and St. Marc. The export trade of Gonaives
was about the same for 1926-27 as for the entire period.


TABLE No. 7
VALUE OF EXPORTS. BY PORTS OF SHIPMENT. FISCAL YEARS 1916-17 TO 1926-27

Average Average Average
Port of shipment 1916-17- 1921-22- 1925-26 1926-27 1916-17-
1920-21 1925-26 1926-27

Gourdes Gourdes Gourdes Gourdes Gourdes
Aquin ...................... 517.420 1,254,059 1,496,005 718.469 870,533
Belladire ..................... .. ................ 5 7.014 661
Cap Haitien ............... 1,601902 9.794,332 14,876.545 8,092,752 10,006.720
Cayes ....................... 4.543,658 6,652,145 6,446.815 6,661.198 5,694.565
Fort Libert. ............... 323.746 62,057 ............... ... ........ 175.365
Glore ....................... ................. 11,015 4.410 723 5.073
Gonaivel ................... 4,934,835 6,618.885 7.770,470 5,829,061 5,781.606
Jacmel ..................... 8,416.717 10,231.039 14,419.785 11.093,943 9,484,793
Jiremie ..................... 3,350.333 3,226.006 7.510.280 4,054.186 3,357,807
Miragoane .................. 1.009.265 1.871,386 2,314,775 2.343,078 1,522,394
O ana inthe ............... 9.15 7,284 7,x6o 2,400 7,627
Petit Goave ................ 4,167,273 9.837,361 14,175,060 9.670,818 7,244,908
Port an Prince ............. 25,557,713 18,772.347 18.892.020 18,759,081 20,946,308
Port de Paix ............. 3,788,030 4,201,144 6,489.605 3.300oo,1 3,931,45
Saint Marc ................ 4,430,65 6.592.399 6,838,095 5,962.529 5,552,259

Total ................. 69.649.972 79.131,511 1oi.241,025 76.495,442 74.582,078


Import and export values have been combined in table No. 8 so as to
show the relative importance of each port. Both in imports and exports
Port au Prince took first place, its combined trade being 42.03 per cent of
the total. In the next group stood the three ports of Jacmel, Cap Haitien
and Cayes, ranging from 9.98 to 8.95 per cent. A third group consisted of
Petit Goave with 7.66 per cent, and including Gonaives, St. Marc, Jeremie,
Port de Paix, and down to Miragoane with 2.20 per cent. A fourth group
was composed of the minor ports.
As compared with 1925-26 the relative importance of Port au Prince
increased materially, while most of the other ports declined with the ex-
ception of Cayes, Miragoane and St. Marc.







HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


TABLE No. 8
VALUE AND PERCENTAGE OF VALUE OF IMPORTS, EXPORTS, AND TOTAL FOREIGN
COMMERCE, BY PORTS. FISCAL YEAR 1926-27

Port Imports Exports Total

Gourdes Per cent Gourdes Per cent Gourdes Per cent
Aquin ...................... 24.739 .03 718.469 .94 743,208 .48
Belladire ................... 222.478 .29 7,014 ..... 229,492 .15
Cap Haitien ................ 6.937.571 8.8r 8,092,752 10,58 15,030.323 9.68
Cayes ....................... 7243,564 9.20 6,661,198 8.71 13,904.762 8.95
Glore ....................... 100,181 .13 723 .. ... ... 100,904 .07
Gonaives ................... 3.309.762 4.21 5,829o061 7.62 9,138.823 5.89
Jacmel ..................... 4,414.352 5.60 11.093,943 14.51 15.5o8,295 9.98
Jeremie ..................... 73.507 2.63 4,054,186 5.30 6,127,693 3.95
Miragoane .................. ,o069,166 1.35 2.343,078 3.07 3,412,244 2.20
Ouanaminthe ............... 150,580 .20 2,400 .. ..... .. 152,980 .10
Petit Goave ................ 2,229,860 2.83 9,670,818 12.64 11.900oo,678 7.66
Port an Prince ........ .... 46,488,467 59.02 18,759,081 24-52 65.247,548 42.03
Port de Paix .............. 1,865,277 2.36 3,30ooi90 4.32 5.165,467 3.32
Saint Marc ................ 2.627,096 3.34 5,962.529 7.79 8.589,625 5.54

Total ................. 78,756,6o00 oo.oo 76,495.442 00oo.oo 55,252.042 100.00


Shipping

During 1926-27 Haiti was again adequately served by ocean-going car-
riers. At no time was there shortage of cargo space, although at certain
seasons of the year it was difficult to obtain passenger accommodations.
There was also stability in freight rates, which remained high.
Net tonnage of steamships entering Haitian" ports is tabulated in table
No. 9. Vessels entered totalled 635, against 565 in the previous fiscal year.
However, net tonnage was somewhat smaller, being I,I17,195, in contrast
with 1,123,486 in 1925-26. American vessels were the most numerous, and
the tonnage was 547,767 or 49.03 per cent of the total. Of second im-
portance both in number and tonnage were vessels flying the flag of the
Netherlands. German shipping made by far the greatest progress during
the year under consideration, increasing from 37 with net tonnage of
62,943 to 89 with tonnage of 142,288. This increase in German shipping
was at the expense of British, French, American and miscellaneous vessels.
Sailing vessels showed further decline in number and tonnage, as in-
dicated in table No. o1. For 1926-27 there were 98 such vessels with a
tonnage of 22,075 entering Haitian ports from abroad, as contrasted with
149 with a tonnage of 30,883 during the previous year. In the number of
such vessels, the British flag was in the lead with 33, though the tonnage
was but 443. These are for the most part small schooners entering Cap
Haitien from Turks Islands and the Bahamhs. In contrast, 16 American
sailing ships reported net tonnage of 7,803. Imports into Haiti by means
of sailing vessels are principally confined to lumber with occasional
cargoes of mineral oils. Export cargoes on sailing vessels are principally
confined to logwood.
Considerable interest attaches to the registry of vessels on which im-









TABLE No. 9

NET TONNAGE OF STEAM VESSELS IN FOREIGN COMMERCE ENTERED AND CLEARED, BY REGISTRY AND MONTHS. FISCAL YEAR 1926-27

Steam Vessels Entered


American British Dutch French German All Other Total -


No. Tonnage No. Tonnage No. Tonnage No. Tonnage No. Tonnage No. Tonnage No. Tonnage
October. 1926 ..... ...i. l 41.588 3 2.590 13 13.951 4 16.404 9 12,700 11 8,877 51 96.110 O
November .................... 13 43,210 6 5.194 II 12.354 4 7.391 6 11.003 9 5.234 49 84.386 3
December ..................... 15 50.769 10 8.156 14 14.607 3 5.982 II 18.704 16 9.175 69 107.393
January, 1927 ............. 13 49.183 8 16.o59 I 11.967 I 2,293 5 6,798 17 14,186 56 100,486 0
February ...................... 17 44.695 5 13.344 11 12129 3 4.504 5 10.577 8 7,631 49 92,880 o
March ......................... 12 43198 7 23.424 II 11.097 3 5.944 7 13.150 8 7.700 48 104.513 1
April .......................... 13 44.906 7 3.726 12 12.787 5 15,819 6 8,634 14 11,418 57 97.290 Z
May ........................... 13 44.252 7 7,206 II 12,662 2 3.154 7 11.202 23 14.274 63 92.75
June ........................... 12 43.189 5 4.528 12 14.509 1 2.790 To 15.642 15 8.341 55 88.999 '
July ........................... 12 55.119 5 4.062 9 10.019 2 3.776 6 1o.oo0 11 6,631 45 89,608
August ........................ 13 44.464 4 2.567 II 12,663 I 3.462 8 11.545 9 5.706 46 80.407 "
September ..................... 12 43,194 5 4.363 12 13,504 2 2,676 9 12,332 7 6,304 47 82,373

Total ................. 156 547.767 72 95.219 139 152.249 31 74.195 89 142,288 148 105.477 635 I.1 17.195


Steam Vessels Cleared
October. 1926 ......... .... 11 41,588 4 3,607 I2 12.827 4 16,404 10 14.017 II 8.877 52 97.320 o
November .................... 41,600 6 5.194 12 13.478 3 6.663 6 11,oo3 9 5.234 48 83.172 W
December ..................... 6 52.379 9 6.727 1I 1 .J32 4 6.710 II 18.704 15 8.471 66 104.923
January. 1927 ............. 13 49.183 8 15.380 15 14.642 1 2.293 5 6,798 17 14.643 59 102,939
February ...................... 17 44.695 5 13.786 o0 10.927 3 4.504 4 8.938 9 7.878 48 90.728 t
March ................. ... I 41.612 8 25,090 to 10492 3 5.944 6 9.744 8 7.700 46 100.582
April .......................... 13 44.906 6 3,228 13 13,491 4 15,091 7 11994 13 o1,265 56 98.975 t
May ... ..... ................ 14 45.838 8 7.704 12 13.765 2 2.305 7 11.526 24 15,427 67 96,565 <
June .... ........ 10 39.967 4 4.287 0 12,790 2 4.367 10 15.913 14 7.227 50 84.551 t
July ............. ........... 14 58.341 6 4,303 t1 11,098 2 3.776 7 11.091 12 7.745 51 96.354
August ........................ 13 44.464 4 2.567 11 12,663 I 3.462 8 11.545 7 5,o61 44 79.762
September ..................... 41.572 4 4.363 12 13.314 I 1,888 9 12.332 6 5,393 43 78.862

Total ................ 155 546,145 72 96.236 138 151.419 30 73.407 90 143.605 145 103.921 630 1.114.733







HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


ports from various countries were transported to Haiti. This is shown
in table No. II. Since most imports were purchased in the United States
it was to be expected that they would be principally transported on
American vessels. This was the case, as Gdes. 40,043,040 out of total
imports of American origin of Gdes. 60,285,Io3 were transported on
American vessels. The proportion was substantially two-thirds. But
American ships participated but slightly in transporting to Haiti merchan-
dise originating in other countries, since total imports into Haiti by
American vessels were Gdes. 42,997,602, or but Gdes. 2,954,562 greater than
exclusively American products handled by such ships.

TABLE No. Io

NET TONNAGE OF SAILING VESSELS IN FOREIGN COMMERCE ENTERED AND CLEARED,
BY REGISTRY AND MONTHS, FISCAL YEAR 1926-27

Sailing Vessels Entered

American British Haitian All Other Total
Month
No. Tonnage No. Tonnage No. Tonnage No. Tonnage No. Tonnage

October, 1926 ..................... 1.578 3 66 3 84 4 3.097 12 4.825
November ......................... I 661 2 19 3 34 4 1.358 10 2.072
December .......................... 1 653 2 19 i 14 2 1.963 6 2,649
January, 1927 .............. .... I 905 2 19 2 28 ........ ...... 5 952
February ........................... 708 3 6 2 78 2 2,120 9 2.932
March ........................... 646 3 2 2 24 3 2.239 1 2.934
April ............ ................. 1.186 3 28 ....... ........ 2 288 6 1,502
May .............................. 3 864 ............... 2 329 94 6 ,.287
June ............................... I 20 3 25 3 64 4 1.299 11 1,408
July ...........................: 2 582 6 52 5 686 ............... 3 1,320
A ugust ........................... ....... ........ 3 30 2 o0 ...... ....... 5 50
Septem ber ................. ...... .......... .... 3 134 2 10 ...... ......... 5 144
Total ..................... r6 7.803 33 443 27 .,371 22 12.4588 9 22.075


Sailing Vessels Cleared


October, 1926 ...... ................ 3 1.993 1 10 a 74 3 2.044 9 4,121
November ......................... I 880 4 75 3 34 4 2.253 12 3.242
December .......................... 2 1.314 2 I9 1 14 2 1.123 7 2.470
January, 1927 .................... I 905 2 19 3 38 I 998 7 1.960
February ....................... .. .. 688 3 26 2 78 ....... ......... 6 793
M arch .............................. 20 3 25 ....... .. ..... 4 2.404 8 2.449
April ............. ............ 3 1832 2 19 I to 3 2.243 9 4.104
May .............................. 2 o 9 3 343 1 94 7 556
June .............................. 2 774 2 18 2 50 a 231 1.073
July ............................... 582 7 59 4 353 2 1.o68 15 .,o62
August ................ .................... 3 343 .... ........ 5 364
September ....................... .. .. ......... 4 43 .....4.. ........ 6 163

Total ..................... i8 9.098 33 443 26 1,357 22 12,458 99 23.356


Dutch vessels carried Gdes. 21,234,499 of merchandise to Haiti, Gdes.
16,706,161 of which was of American origin. Ships of France and of
Germany were also of some importance in the import trade. Values trans-
ported by French vessels considerably declined, while German vessels
maintained their previous position. It is curious to note that German ships









TABLE No. I1

VALUE OF IMPORTS, BY' REGISTRY OF CARRYING VESSELS. FISCAL YEAR 1926-27


Country


Argentina ...............
A ustria ....................
Bahama Islands ..........
Belgium ....... .. ..
British Islands ...........
Canada ....................
Canal Zone ...............
China .....................
C uba ...................
Curacao ...................
Czechoslovakia ...........
Denm ark ..................
Dominican Republic .....
Egypt ................. .
France ....................
French Africa ............
French Indo-China .......
Germany ................
Guadeloupe .............
Hungary ..................
Italy ............
Jamaica ................
Japan ................. .
Madeira Islands ..........
M exico ....................
Netherlands .............
N orway ...................
Palestine ................
P eru ....................
Porto Rico ................
Spain ...................
Sw eden ....................
Switzerland ...............
Syria ..................
United Kingdom ..........
United States .. .......
Venezuela .................
Virgin Islands ..........


Merchandise
free of
duty


Gourdes
.............
...........-.
..... ...... 1
4,379


106,316


76,041

4.441
20.041

75.464

.............-
15.266







19
14,189
2,800


33,719




20.342
1.887.561


Merchandise
subject to
duty


Gourdes
2
2,771
11,831
483,626
68,265
62,565
7,649
2.187
I 0,052
563,316
11.307
141,825
538,882
107
5.253,544
2
441
3,643,979
135
49
783.333
199.724
54,643
803
II1
1,506,383
4.365
124
6,705
724,336
62,605
488
31,434
78
3,919.217
58,397,542
284
1.352


Total .... ... 2,260,638 76.495,962
Per cent ............ 2.87 9713


American


Gourdes

a

30,319
44,425
27,677
113,965
39
2.827
Ilo
27


32
256,729


86,60o
135
24
488,719
305
40,983
803

25.409


6,705
212,302
29,775
368
1,327
6
1,514,919
40,043,040

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


British


Gourdes

270
9,724


13


1,078
32,872




.6,86 6
6,866


Dutch


Gourdes
.......... .7
1,769
137
16,563
23.840
34,875

955
283
288.547
4,632
49.189
4,769
5
178,606


6;66; 9 48,62


.............
100,196








394.132


335.740
195,538


25
75.785
98.093
13,222


1,481.598
5.956


43,251


1 09 -*.4.
............ .
5 10.594
.. . .


1.245,385
16.706,161
284
1.352


42.997.602 1.083.116 21,234,499
54.6o 1.37 26.96


French


Gourdes
2
36o
.............
289



1.193
1,562
............
568
77
........... ..
65
4,877,648
2
441
3,862


182,254

438
. . ..

215

124

457
27.493
... ..... .. ..
6,937
72
15.199


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


German Haitian



Gourdes Gourdes
......... .. 5 '.'.'.'.'.'.'.'.'.'.'. .
265 ...........
........ ..... ,830
44 ,500o ........ ....



...... 5... .... ......

16 5 .............
27,868 66,771
5.794 .... ........
26,972 ...........
38,823 ...........

5,252 ....... I .


2,6o,999 .............


21,707
1,032
.............

30
13.339
783
............

57.718
3,358
T2o
12,571

826.881


Norwegian All Other


Gourdes









261









930












11,829





94520861
.............


Gourdes

5
140
334




3.876
223,189
286

515.331
5
3.907


1.566


14,928
98



I I



38,366
1.960



288
395.156

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


Total



Gourdes
2
2,771
11,831
488,005
68,265
62.565
113,965
2,187
10,052
639.357
11,307
146,266
558,923
107
5,329,008
2
441
3.659,245
'35
49
783.393
199,724
54,643
803
30
1,520,572
7.165
124
6,70o
758.055
62,605
488
31,434
78
3.939.559
60,285,101
284
1.352


1,199,446 78,756,6oo
1.52


68,6oi 2,959,801
.09 3.76


Per cent






.02
.62
.09
.08
.14

.ox
.01

.o2
.18
.71

6.76
.............

4.65


I.oo
1.00
.25
.07


1-93

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

.96
.o8

.04

5.02
76.56




100oo.oo


I


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


.... .
.... .

.... .


.. .. .




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


5.119.258 4.094.277
6.50 5.20









TABLE No. 12


VALUE OF EXPORTS, BY REGISTRY OF CARRYING VESSELS, FISCAL YEAR 1926-27


Country


Bahama Islands ........
Belgium ................
Canada ..................
Canal Zone ...........
Colombia .............
C uba ....................
Curagao ................
Denmark ...............
Dominican Republic ...
Finland ................
France ...............
French Africa ..........
Germany ..............
Guadeloupe ...........
Italy ............... ....
Jamaica .... ..........
Japan ..................
Martinique ............
Netherlands ...........
Norway .... ..........
Peru ......... ..........
Porto Rico .............
Spain ...................
Sweden ..................
United Kingdom .......
United States ..........
Venezuela ...............
Virgin Islands .........


Mer-
chandise
free of
Sduty


Gourdes



too






















945

::::... I


Merchandise
subject to
duty


Gourdes
42,472
3.975.274
1,898.070
127,287
480
2,949,.17
297,565
6,221.242
31,097
148,293
36,340,0o5
24,962
4.753.743
40
2,786,136
7.496
41.015
12,570
1,367,467
599,850
38
606,924
2,613,415
663,490
3,948,823
5.973,330
61,896
1,000


American



Gourdes

321,252
1,814.279
127,387
480
536.854

540,628

7,848
1.695,513
8.282
254.249

10b27,921

41,015
10,8o5
16,402
130.432

2o05692
1,700,991
282,398
102,128
2,629,402


British IDanish


Gourdes
38.445
1.083,707


Gourdes

572.975


1 ,229.226 ..........


5,o68.079 188.803

154,686
154,686 ...........

5.884 ..........



155. 583 .... .
8,174 ...

271.900 ...........

76,767 ...........
1,435,959 ........ ..
.. .... .. ... ..


....... 0001 .. ....


Dutch


Gourdes
3,094
1,029,643
83.791


1,303.761
180,425
2,340.941
460
95.337
12,040,812
i6,68o
1,292,1 6o


French


Gourdes

152,183
............


105,249

497.221
0o,000

10,979.530

276.129


4o0
1,384.553 20,353


1.765
2,008,019 49
179.306 32,874
38 ..
42.450 6,982
912,424 ..
164.738 24.876
1,055,929 320,497
2,814,397 ........ .
61. ,896 ...... ... ....


Haitian



Gourdes
933





20,395
..........


German



Gourdes

798,275.


.. .. ....
84,120
1,595.548.
2,6oo
45,108 .
6,350,896 .

2,759,836

128.579
7.460


157.414
249,017

41.450 .

114,71I
1.018,202


Norwegian



Gourdes

17.239





17,678


16.972

16,683






47


.........

16,108
530,476

...........


All Other



Gourdes





1.oo003,953
12,625

10,137

.. .. .



218,846
36





38.450



.......... .


Total


Gourdes
42.472
3.9752.74
1,898,07o
127.387
480
2,949,817
297.565
6,221,242
31,097
148,293
36,340,605
24.962
4.753,743
40
2,786,136
S7,496
41,015
12,570
2,367.467
599.850
38
606,924
2,613,415
663,490
3,948,823
5,974.275
61,896
1oo000


Per cent





.06
5.20
2.48
.17

3.86
39
8.13
.04
.19
47.51
.03
6.22

3.64
.... .
.05
.02
3.09
.78

.8o
3.42
.87
5.16
7.81
.08


Total ............. .o4 76.494,397 11.454.958 9.566,310 761,77 27,o ,854t12.427,748 13,353.216 21.328 615,203 1,284,047 76,495,442 100.00
Per cent .........0 0. 1497 12,$ 1.00 35.31 16,25 17.46 .02 .80 1.68


I I_ ~__






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


carried Gdes. 826,881 of British goods to Haiti, while similar merchandise
transported in British ships was Gdes. 335,740. French vessels almost ex-
clusively were loaded with French cargoes.
Haitian exports in largest proportion were transported by Dutch ship-
ping, but the concentration was not as high as was the case of imports by
American vessels. Of total exports of Gdes. 76,495,422 Dutch vessels carried
values amounting to Gdes. 27,010,854. Second in importance was German
shipping with Gdes. 13,353,216, closely followed by ships of French,
American and British registry. Exports transported by the vessels of vari-
ous countries were quite diversified in destination, with the exception that
French vessels transported few Haitian products to other countries than
France.
Table No. 12 contains the statistics just discussed. As compared with
the previous fiscal year, the importance of German transportation of Hai-
tian exports increased absolutely, that of American ships increased rela-
tively, that of Dutch vessels somewhat more than maintained its position,
while sharp declines were recorded for vessels of Danish and French
registry.

Foreign Commerce by Months and by Ports

Both the import and export trade of Haiti are subject to marked peri-
odicity. The first half of the fiscal year is decidedly the "active season,"
being succeeded by lessened commercial operations. However, the import
trade of 1926-27 was much more uniform than in preceding fiscal years, as
is evident by examination of table No. 13. For example import values were
greatest during October, at Gdes. 8,770,750 and smallest during April at
Gdes. 5,450,886, showing a fluctuation between the lowest and highest
months of 60.91 per cent. During 1925-26, however, there was a range from
the low month of August with Gdes. 5,127,510 to the high month of Oc-
tober with Gdes. 12,397,390 of 141.78 per cent. There was also a range of
more than Ioo per cent in the fiscal year 1924-25.
More uniform distribution of imports is desirable, and therefore this
feature of the commercial year 1926-27 was definitely favorable. No pre-
diction, however, can be made that the year just closed has established a
new tendency instead of the one of sharp fluctuations which has been
characteristic for much of Haiti's commercial history.
No better evidence of the decline of imports during 1926-27 need be
offered than the mere statement that in only two months did the value of
imports exceed those of the similar months of 1925-26. As these months
of increase were the final months of the fiscal year, there is considerable
evidence that 1927-28 may show marked improvement.
Not only does greater periodicity exist for exports than for imports, but
concentration in part of the fiscal year was more marked in 1926-27 than








HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


during the previous year. This is well demonstrated in table No. 14. Ex-

port values reached a maximum at Gdes. 10,284,719 in December and fell

to Gdes. 1,584,390 in August. Thus the range was 549.13 per cent. In 1925-

26 there was an increase from Gdes. 3,243,300 in July to Gdes. 13,502,510



TABLE No. 13

VALUE OF IMPORTS, BY MONTHS AND PORTS OF ENTRY,
FISCAL YEAR 1926-27, COMPARED WITH 1925-26


Port of Entry


Aquin ............
Belladre .........
Cap Haitien .....
Cayes ..........
Glore .............
Gonaives ........
Jacmel .........
JRrimie ....
Miragoane ........
Ouanaminthe ....
Petit Goave ......
Port au Prince ..
Port de Paix ....
Saint Marc .......

Total 1926-27
Total 1925-26

'Increase 1926-27
Decrease 1926-27


October


. Gourdes


141
23.139
898,881
999,475
3,436
258,722
624.339
146,684
II1,244
20,66o
271,813
4,968,722
246oo00
197.494


November December



Gourdes Gourdes
224 127


29,011
675,126
884,071
5.780
343,836
536,150
252,952
60,871
29,791
258.394
4,o61,923
247.593
171.792


12,078
644,078
6o6,o68
5,392
286,082
586,204
239.355
93,169
12,8o8
181,202
4,338,478
239,428
294.851


8.770.750 7,558,114 7.539.320
12.39739o 11.671.885 10,180,430


3,626,640 4,113,771 2,641,11


January February



Gourdes Gourdes
146 17,93C
29,143 15.615
429,426 524.195
394.053 369.420
6,66o 14,878
228.583 349,457
285,686 234.688
171,431 181,622
118,594 80.876
5,865 9,514
246,051 213,695
3,589,880 3,21o,655
155.451 10o.645
230.443 234,507

5,891,412 5,567.697
6,451.935 7,432,650


560,523 1.864.953


March April



Gourdes Gourdes
4,682 1
17,734 45,277
464.303 418,779
397,749 5o1,502
17.705 8,926
236,596 302,371
381,750 309,532
172.963 161,844
116,193 63.754
14,145 8.940
162,014 129,189
3,673,682 3,077,604
97.369 126,084
329.944 288,083


6,o86,829
7,392,340


1,305,511


5,450,886
6,918.320


1,467.434 88.922


TABLE No. 13 (Continued)


July


Gourdes
202
7.247
462,362
725.987
6.597
232,425
241.162
143,152
49.751
21,602
132.872
3.573.367
110,034
98.728


August


Gourdes
478
17,084
741,404
794,271
6,627
212,917
333.465
119.943
90.452
9,968
160,512
4.056,6o8
115.998
185,378


5.805.488 6.845,105
7,851.185 5.127.510

1.717.595
2.045,697


Total Total
September 92627 1925-26

-I--
Gourdes Gourde I Gourdes
218 24.739 4,900
.. ....... 222.478 28,415
761,094 6,937,571 9.133.525
580,685 7.243.564 8.324,560
6,980 oo0.181 153.815
321,126 3.309,762 3.992.775
379.5;7 4.414.352 6,188,200
189,319 2,073,507 2,579.320
102.224 1,069,166 957.895
6.587 150,580 129,265
194,795 2,229,8o60 2.795.930
4,657.711 46,488,467 53.754.525
113,918 1,865,277 3,oo006,280
178,214 2,627,096 3,207,625

7.492,428 78.756.6oo0
6,362.645 194.257,o3o

1,129,783
15.500,4301


in November of 316.32 per cent. July and August, 1926-27, returned smal-

ler export values than had been reported for several years. Moreover, only

one month in the year under review, namely April, showed an increase over

the same month of the previous year, and this increase was trifling.


May



Gourdes
363
13,643
,531,840.
479,828
8.802
316,414
229,293
177.422
68,16I
5,152
146,630
3.548,452
148,826
217,562

5,892.388
5,981.310


Port of Entry



Aquin ............
Belladire .........
Cap Haitien ......
Cayes ............
Glore .............
Gonaives .........
Jacmel ...........
Jirimie ..........
Miragoane ......
Ouanaminthe ....
Petit Goave ......
Port an Prince ...
Port de Paix ...
Saint Marc .......

Total 1926-27
Total 1925-26

Increase 1926-27
Decrease 1926-27


June


Gourdes
227
11,907
386,083
501,455
8.398
221,233
272,526
116,820
113,877
5.548
132,693
3,731.385
153.931
200,100

5,856,183
6,489,430


633.247


Increase


Gourdes
19,839
194,063





III.271
21.315

. :


346.488


Decrease


Gourdes


2,195,954
1,080,996
53,634
683.013
1.773,848
505.813


566,070
7.266.058
1.141,003
580.529

15,846,918


I


---


----


o


I


I








HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


TABLE No. 14

VALUE OF EXPORTS, BY MONTHS AND PORTS OF SHIPMENT
FISCAL YEAR 1926-27, COMPARED WITH 1925-26


Port of Shipment October


A quin ............
Belladire .......
Cap Haitien .....
Cayes ............
Glore ..........
Gonalves ........
Jacmel ..
J rimie .... .....
Miragoane ..
Ouanaminthe ....
Petit Goave ....
Port au Prince ..
Port de Paix ..
Saint Marc ......

Total 1926-27
Total 1925-26


Gourdes
23.724
1,075
1.212,361
843,652
8
643.219
864,975
541,995
130,789

1,o85s935
1,301,135
443,919
369,012


November


Gourdes
66,458
625
1,167,748
806,o26
5
489.988
1,216,533
527.737
168,856

947.098
1,665.295
613,122
309,240


December


Gourdes
100,685

1,102,894
928,283
13
747,545
1,786,931
615.271
342.621
64
1.489,140
2,216,905
393,514
560,853


January


Gourdes
60,262
350
932,393
705.419

548.941
1,531.585
318,057
334.949

1,209,669
1.945.305
305,019
233.214


7,461,799 7,978,731 10,284,719 8,125.163 9,745,848
9,344.300 13,502,510 10,788,515 13.154,210 13,146,205


Increase 1926-27
Decrease 1926-27 1.882.501 5.523,779


503.796 5,029,047 3,400,357


TABLE No. 14 (Continued)


Port of Shipment June July August September Total Tot Increase Dcrease
926-27 1925-26


Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourde,
Aquin .... .... 57099 4.547............ ............ 718,469 1,496oo005 ....... 777,536
Belladire ........ 500 ............. 225 450 7 4 ... 7, 14 .............
Cap Haitien ..... 160.980 342.425 273.341 485.784 8.092,752 14.876,545 ........ 6,783,793
Cayes ............ 44,123 115,834 117,795 298,087 6,661,198 6.446,815 214,383 .........
Glore ............. 47 ......... ... 50 ....... .... 723 4.410 ... ...... 3.687
Gonalves ........ 372.723 73,640 60,809 88,583 5,829.061 7,770,470 .......... 1,941,409
Jacmel ....... 437.750 234,936 138.854 155.315 11,093.943 14.419,785 ........... 3,325.842
Jirimie .......... 212,627 156,259 198,653 147oo006 4,054,186 7,510.28o ........... 3.456.094
Miragoane ........ 99.463 121,937 77,685 13,502 2.343,078 2.314.775 28,303 ..
Ouanaminthe .... 139 511 99 567 2.400 7,16 ............ 4.760
Petit Goave ...... 341,51o 97.282 132,300 153.955 9.670,818 14,175o6o ........... 4504.242
Port au Prince ... 900o.o68 456.715 320.870 1.362.472 18,759,081 18.892.020 ........... 132,939
Port de Paix 164,878 88,676 29,598 18o,227 3.300,190 6.489,605 .......... 3.189.415
Saint Marc ....... 452,386 420,325 234,111 127,962 5.962,529 6,838.095 ........... 875.566

Total 1926-27 3,544,293 2,313,087 1.584.390 3o013,910 76,495,442 249.700 24.995,283
Total 1925-26 5.371.555 3.243.300 3,356,400 3.676.740 101,241.025

Increase 1926-27
Decrease 1926-27 1,827,262 930,213 1,772.010 662,830 24,745.583




Commodities Imported


Some difficulty is encountered in connection with selecting commodities

in the import schedules for special consideration. Nevertheless this has

been attempted in table No. 15, in which 20 commodities of importance in

the import trade have been segregated, and the remainder combined in

the schedule under the heading of "all other."

Not only did imports in the fiscal year just closed decline materially


February


Gourdes
177.303
237
830,010
816,827
62
655,267
1,439,744
256,531
315,860
370
1,283,604
3,060,405
429,930
479,698


March


Gourdes
145,139
340
709.255
852,462
276
874,498
1,475,825
358,171
256,509
404
1.334.957
2,057.739
263,887
1,157.001

9,486,463
10,316,905


830,442


April


Gourdes
58.466
2,850
456.396
585,070
175
724,951
1,053,386
353.931
240.663
73
964,483
2,549,898
279,488
940,604

8,210,434
8,080,625

r29,809


May


Gourdes
24,786
362
419,165
347,620
87
548.897
758,109
367.948
140,244
173
430,885
922,274
107,932
678.123

4,746.605
7.259.760


2,513,155






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


from the level of 1925-26. They were also below the average for the five-
year period of 1921-22 to 1925-26, inclusive, but somewhat in excess of the
average for the receivership as a whole. It is therefore useful to compare
the distribution of imports not only with the previous fiscal year but to
trace the trend over a longer period.
As compared with 1925-26 declining values characterized imports of
chemical and pharmaceutical products, vegetable fibers and their manu-
factures, fish, wheat flour, meat, rice, miscellaneous foodstuffs, iron and
steel and their manufactures, leather, liquors and beverages, lumber, auto-
mobiles, trucks, unclassified mineral oils, soap, textiles, tobacco, and com-
modities not otherwise classified. Increases were reported for cement,
gasoline and kerosene.
In the case of leather, of liquors and beverages and of tobacco the de-
clines were severe and were due to the following causes. Duties on leather
were materially increased in the tariff of.1926 for the purpose of encour-
aging the domestic production of this commodity.
Under the previous Haitian tariff comparatively low duties were assessed
on liquors and beverages, whereas these commodities are universally re-
garded as well adapted to heavy fiscal charges, based on revenue con-
siderations. Therefore duties were sharply increased under the new tariff,
with the result that merchants and private individuals, prior to the date
when the new rates became effective, made an effort to import supplies
sufficient for the requirements of several months. The obvious result was
decreased imports during the first year of the new tariff, though there is
every reason to believe that in subsequent years Haiti will import its cus-
tomary quantity of liquors and beverages.
By far the sharpest decline occurred in imports of tobacco. From a value
of Gdes. 2,313,300 in 1925-26 there was a fall to Gdes. 89,992 in 1926-27.
This was also a tariff phenomenon. Duties on tobacco which were intended
to be practically prohibitive were imposed, due to the fact that ample'evi-
dence existed that Haiti could and should produce its own supplies. To-
bacco is one of the staple crops of Jamaica, Cuba, Porto Rico and the Do-
minican Republic. Haitian conditions closely approximate those in the
neighboring islands. Therefore it was considered expedient to offer a dis-
tinct incentive to tobacco culture in Haiti. That the policy was sound is
evidenced from the surprising interest which has taken place in tobacco
growing during the past-year. Hundreds of acres have been planted to this
crop, and at present Haiti is able to satisfy all ordinary requirements of
tobacco. As yet this tobacco is not of the best quality, but experience and
selection should undoubtedly result in improvement. In fact there appears
to be no reason why Haiti should not ultimately become an exporter of to-
bacco, just as is the case with all of its immediate neighbors. Probably no
policy in the new tariff has been more clearly justified by results than the
sharp increase in the rates of duty imposed on tobacco.














TABLE No. 15

VALUE OF IMPORTS, BY COMMODITIES, FISCAL YEARS 1916-17 TO 1926-27



Commodity Average Average Average
1916-17- 1920-21 191-22--1925-26 192526 1926-27 I 67 926-27


Gourdes Gourdes Gourdes Gourdes Gourdes
Cement ................... ...................................... 453.756 426.121 677,455 952,613 486,545
Chemical and pharmaceutical products ......................... 644,320 928,705 1,010,670 858,727 793.078
Fibers, vegetable, and manufactures of, other than
cotton and textiles ......................................... ,2114,647 1,856,885 1,734.775 1,280,368 1.921,639
Foodstuffs:
Fish .. ................................................... 2,380.691 3,289,025 4,740,855 4,033.060 .2,943.786
Wheat floor .............................................. 0,671,303 12,044,975 13.639,410 11,456.714 11.367,100
Meats .................................................... 1,129,413 1,452,559 1,856,595 1.509,395 1.310,841
Rice ..............................................735.650 1,293.365 2,o .900oo 1,850,807 1,545,080
All other ........................................... 6.544,557 5.786.803 8,023.060 7,030.371 6,244,289
Iron, steel and manufactures of.................................. 3,460.075 3,411,649 4.675,535 4.319.898 3.516.229
Leather .. ...................................................780,115 785827 83426 262635 735668
Liquors and beverages ........................................ 1,229,720 1,433,548 1,709380 913,320 1.293,605
Lumber ....................................................... ,054,752 1,345,746 1,715.730 1,701,620 1,245.828
Motor vehicles:
Automobiles, passenger .................................... 1,784.395 1,528.267
Trucks ......................... 770,735 446,360
Oils mineral:
Gasoline .................................................... 354.469 855.634 1,476.300 2,II5,890 742,400
Kerosene .................................................. 1,108,696 935.008 1,161,470 1,214.877 1,039,400
All other ................................................... 75,174 361,676 698,910 618.624 3oo,261
Soap .. ......................................................... 3.849.333 3,060.897 3,636,655 3.192,235 3.431,217
Textiles ........................................................ 21,766374 23,210,837 20,897.685 16,835,439 21,974.681
Tobacco ................................................. 2009210 .1770,269 2.313.300 89,992 1,726,126
All other .... .................................................. 13797749 16.043,804 18,887.955 6,545388 15,247980

Total ......................................... ....... 75.,60,oo4 80.293.333 94.257,030 78,756.600 77.865,753


rra --

















-i
0
X


TABLE No. 16

QUANTITY OF IMPORTS, BY COMMODITIES, FISCAL YEARS 1916-17 TO 1)26-27


Average Average Average
Commodity Unit 916-17- 1920-21 1921-2-1 925-26 1925-26 1926-27 1916- 7-1926-27


Cement .......................... Kilo ..................... 3,518,741 5,675,884 9,916,484 13,552,l17 5,411,386
Foodstuffs:
Fish ......................K. Kilo ..................... 2.166,642 4,298,888 7.473.341 7.486.565 3,619,474
Wheat flour ................ Kilo ..................... 12.354,104 28,161.255 28,052,052 25,058,159 2o,694,087
Meats ...................... Kilo ..................... 500o144 923.154 1,341,8o0 1,290,337 764,257
Rice ....................... Kilo ..................... 675.744 2.859,235 4,070,069 4,113,816 1,980.792
Liquors and beverages ........ Liter .................... 686,337 1,126.049 1,637,869 870,351 902,935
Lumber ................ .... Cub. Met............... 6,76943 14321.29 17,398.84 1555794 11,oo00.05
Oils mineral :
Gasoline ................... Liter..................... 547.523 2,254,239 3,984,266 5,546.920 1.777,794
Kerosene .................. Liter .... ..................... 2,894,769 3,623,516 4,658,022 4,658,299 3.386.339
Soap ........................ Kilo ..................... 2,830o380 3,605,622 4,500,183 4,076,929 3,296,085
Textiles ......................... Kilo .................... 3,063.308 3,862,943 3,216,424 3,071,724 3.427.544
Tobacco ........................ Kilo .................... 694,984 821,907 1,239,290 46,841 693.754






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


Declines in such commodities as chemical and pharmaceutical products,
vegetable fibers and their manufactures, fish, wheat flour, meats, rice, mis-
cellaneous foodstuffs, iron and steel and their manufactures, lumber, auto-
mobiles, trucks, miscellaneous petroleum products, soap and commodities
not otherwise specified may be regarded as normal. Purchasing power of
the Haitian population distinctly declined during the year under review.
This purchasing power is derived from exports, and as accumulated pur-
chasing power is not characteristic of the Haitian population, funds being
ordinarily spent practically as rapidly as received, the decline in export
values rendered it impossible to maintain the previous level of imports.
Declining import values in the commodities mentioned therefore had no
particular significance. Moreover, in the case of all the foregoing com-
modities, with the exception of vegetable fibers and manufactures thereof
and of soap, imported values during 1926-27 were in excess of those for
the receivership period considered as a whole.
Textiles, however, require further consideration. Values for 1926-27
totalled Gdes. 16,835,439, a recession of Gdes. 4,062,246 or 19.44.per cent
from Gdes. 20,897,685 in 1925-26. Even the latter total was below the
previous average, with the result that the value of textiles in 1926-27 was
23.39 per cent inferior to the average for the eleven-year period. Declining
purchasing power partly explained this phenomenon and lower unit prices
of cotton goods also had their effect. Of more importance was the fact that
textiles in abnormal amounts had been imported during 1924-25, resulting
in serious overstocking on the part of merchants and accumulation beyond
immediate need on the part of the population. Furthermore, there
was a tendency to devote available resources to other purposes rather than
the purchase of textiles. This was particularly true as to automobiles and
trucks, gasoline and kerosene and other commodities entering into a higher
standard of living. In subsequent years imports of textiles may be expected
to show normal increases, unless factories for the manufacture of cotton
clothing from domestic cotton should be introduced in Haiti. In the opinion
of this office such factories are practicable and their establishment should
be encouraged.
One of the outstanding commercial phenomena for 1926-27 was the de-
clining tendency of unit prices for the many products imported into Haiti.
This fact is brought into relief by comparison of tables Nos. 15 and 16.
In the latter imports by quantity are described. Out of twelve leading com-
modities, unit prices declined in the case of six, as compared with 1925-26,
were identical for two, and there were four increases. However, recessions
in unit prices concentrated around the most important commodities in the
import list, including such items as fish, wheat flour, meats, rice, soap and
textiles. These groups comprised Gdes. 38,877,650 or 49.36 per cent of
total imports for 1926-27. Rising prices, moreover, were small in propor-
tion. It is also difficult to explain why any increases occurred in the case






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 23

of gasoline and kerosene. Falling prices and overproduction have notori-
ously characterized 1926-27, so far as the petroleum industry was concern-
ed. Possibly the government would be warranted in inquiring the reason
why Haitian consumers have been compelled to pay higher prices for gaso-
line and kerosene during 1926-27 than was the case in the previous year.
Unit values of principal imports appear below:
1925-26 1926-27
Unit Gourdes Gourdes
Cement ..................... kilo ...................... 0.07 0.07
Fish ......................... ..................... 0.63 0.54
W heat flour ............... ..................... 0.48 0.45
M eats ...................... ..................... 1.38 .I7
Rice ......................... ..................... 0.49 0.44
Liquors ..................... liter .................. 1.04 1.04
Lumber ..................... cubic meter ......... 98.60 o9.37
Gasoline .................... liter .................... 0.37 0.38
Kerosene ................ ..................... 0.24 : 0.26
Soap ......................... kilo .................... .80 0.78
Textiles ................... ..................... 6.48 5.48
Tobacco ................... ..................... 1.87 1.92

Commodities Exported
In terms of value the export trade of Haiti during 1926-27 was disap-
pointing. As shown in table No. 17 not only was the total 24.44 per cent
below the level of the previous year, but only 2.57 per cent in excess of
the average for the entire receivership. It is therefore important to ex-
amine the specific commodities which constitute the principal exports of
Haiti for the purpose of ascertaining the difficulty.
Only five Haitian export commodities had a value of more than Gdes.
I,ooo,ooo. This in itself demonstrates the high degree of concentration
and suggests the danger to which the economic life of Haiti is liable if
some of these fundamental commodities are adversely affected. Even
more real is the danger when it is considered that one commodity, coffee,
constituted 74.41 per cent of total export values, during 1926-27. Com-
mercial welfare and prosperity in the coffee trade are practically synony-
mous in Haiti. From Gdes. 81,621,600 in 1925-26 coffee exports receded to
Gdes. 56,921,970 in the subsequent year. This decline was Gdes. 24,699,630
or 30.26 per cent. As total exports were inferior by Gdes. 24,745,583 it
is apparent that lessened values of coffee accounted for 99.81 per cent of
the total decline.
Two more of the five most important commodities were also below the
1925-26 level. These were cacao and raw cotton. The former receded
from Gdes. 1,884,870 to Gdes. 1,680,933. Cotton values declined more
rapidly, or from Gdes. 9.416,535 to Gdes. 7,334,573.






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


TABLE No. 17
VALUE OF EXPORTS. BY COMMODITIES
FISCAL YEARS 1916-17 TO 1926-27

Average Average Average
Commodity 1916-17- 1921-22- 1925-26 1926-27 1916-17-
1920-21 1925-26 1926-27

Gourdes Gourdes Gourdes Gourdes Gourdes
Beeswax .................... 59.995 4.053 1,980 13.783 30.366
Cacao ........................ 2,726,921 124oo007 1,884,870 1,680.933 1.955.961
Coffee ....................... 46,999,359 60.437.516 8x.621.6oo 56,921.970 54,009,668
Cotton, raw ................ 5.595.881 9,186,908 9.416.535 7.334,573 7.386,229
Cottonseeds ................. 428,686 761,204 724,610 591,465 594,629
Honey ....................... 794,093 344,518 563,970 751,149 585.837
Lignum-vitae ................ 436,6 6 00,299 200,890 100oo,o38 298.6o
Logwood ................ 6.145,079 2.286,293 2,323.465 2,589,206 4,067.824
Logwood extract ............ 193.882 492,934 498,415 ................. 312,189
Skins ........................ 1.502.69o 424,678 448,190 613,775 931.874
Sugar ........................ 1,876,976 2,403.398 1,926.500 3,402,735 2.254,964
Turtle shells .61.149 95,205 107,305 67,103 77,170'
All other exports .......... 2.828645 1,254,498 1.522,695 2.428,712 2.076.766

Total 69.649.972 79,131,511 101.241,o25 76.495.442 74.582,078


Two export products returned increased values, logwood rising moder-
ately from Gdes. 2,323,465 to Gdes. 2,589,206 and raw sugar showing a
substantial and gratifying increase from Gdes. 1,926,500 to Gdes. 3,402,735.
Exports not separately classified also showed welcome expansion from
Gdes. 1,522,695 to Gdes. 2,428,712.
Of the minor commodities which are separately listed advances took
place in beeswax, honey and skins. These were offset by declines in cotton-
seed, lignum vitae, logwood extract and turtle shells.
Although the comparison with 1925-26 is not favorable, that with the
average for the receivership is somewhat more satisfactory. The average
was Gdes. 74,582,078, compared with Gdes. 76,495,442 for 1926-27. This
expansion was more than covered by the one item, coffee, in which the
values were Gdes. 54,009,668 and Gdes. 56,921,970, respectively. Another
encouraging increase was that for sugar, while exports of cotton for the
year and for the eleven-year period were closely similar. A moderate
decline took place in cacao and one of more importance in the value of
logwood. Cacao culture in Haiti has been disappointing for several years,
partly because of poor methods of cultivation and preparation for the
market, partly because of increased competition from Africa and partly
because of depression in the world market for this commodity. In
the case of logwood, shipments are closely coordinated with styles
in women's clothing in the United States. As logwood dyes constitute
the basis for certain types of fabrics, particularly silks, there is no uni-
formity nor assurance in this branch of trade. Moreover, the logwood sup-
plies of Haiti are becoming more and more inaccessible and are also being
depleted much more rapidly than they are being replenished by natural
causes. Replanting of logwood trees has not been attempted in any system-
atic manner.







HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


Exports are more easily reported by quantity than is the case with
imports. Practically all Haitian exports consist of foodstuffs or raw
materials of industry and are properly classifiable by weight. Exports are
listed by quantity in table No. 18, where it is discovered that for the
principal crop, coffee, a decline occurred from 35,683,690 kilos to 28,692,984
kilos, being 6,990,706 kilos or J9.59 per cent. This volume of coffee was
below the average for both the first and second five-year periods of the
receivership and, consequently, for the eleven-year average. With this fact
in mind it is easy to comprehend why the commerce of Haiti during 1926-
27 was not altogether satisfactory, in view of the outstanding importance
of the coffee trade.

TABLE No. 18

QUANTITY OF EXPORTS, BY COMMODITIES
FISCAL YEARS 1916-17 TO 1926-27

Average Average Average
Commodity 1916-17- 1921-22- 1925-26 1926-27 1916-17--
1920-21 1925-26 1926-27

Kilos Kilos Kilos Kilos Kilos
Be.swax .................... 19179 2,910 598 4.095 10,413
Cacao ....................... 1,958.938 1,908.678 2.190,5, 8 1,629,979 1,906,188
Coffee .. .................. 29,30o8341 32,060,107 35,683,690 28,692,984 30,503.202
Cotton, raw ................ 2,488,291 3,895,790 4,994.526 4,900,945 3.347.395
Cottonseeds ....... .... 2,480,810 5,604,338 5,772,803 4.746,216 4.106,541
Honey ...................... 731.881 547.907 61.9,931 787,827 653.342
.ignum-vitae ................ 4,036,786 2.710,876 .601o.543 693,804 3,130,192
Logwood .................... 54.889.424 27,816,496 21587.180 28,084,183 40,146,712
Logwood extract ............ 118.537 859,178 785,512 ................. 444.416
Skins ............. ...... 283.467 132,282 136,843 182,180 205.539
Sugar ........................ 2,543.397 6,879,930 7,313,699 9.841,398 5,178,003
Turtle shells ............... 1.635 1.478 1.423 1.275 1.531


Although the value of raw cotton signally failed to keep pace with
the previous year, the volume was closely comparable. For cottonseed,
however, there was considerable decline, due to the fact that a larger
proportion of this commodity is now being utilized locally in the manu-
facture of lard substitutes and soap. Probably further diminution in ex-
ports of cottonseed will occur in subsequent years. Declining tonnage
also characterized cacao, lignum vitae and logwood extract. Increases
occurred in the case of beeswax, honey and skins, and particularly for
logwood and sugar.

Reduced unit prices occurred in exports as well as imports, at least for
three of Haiti's principal exports, namely, coffee, cotton and logwood.
This in itself was sufficient to induce depression in the export trade,
especially when combined with subnormal volume in the case of exports
of coffee. Increased prices for cacao and sugar were reported, and in
view of the price depression which has existed for many years this im-
provement was welcome.



















TABLE No. i9

QUANTITY AND VALUE OF FIVE PRINCIPAL EXPORTS, BY PORTS FISCAL YEAR 1926-27, COMPARED WITH FISCAL YEAR 1925-26


Port Coffee Cotton Logwood Sugar, raw Cacao, crude


Kilos Gourdes Kilos Gourdes Kilos Gourdue Kilos Gourdes Kilos Gourdes
Aquin ........................... 278,078 543,008 26,499 37,611 001oo00ooo 92,291 ......... .............. 267 287
Cap Haitien ..................... 2.761.o10 5455,824 43.422 63.938 11.381200 1.049.347 .............. ... ....... 465,707 494,807
Cayes ........................... 3.178,178 6,318,811 60,142 91.56o 954.859 88.o38............... ................. 2.120 2,177
Gonaives ........................ 2018.243 3.995,618 852,904 1,264.615 1867,034 172 140 .............. ............ ... .............
Jacmel ........................... 4,871.394 9.613.380 746,992 1,102,707 5500ooo 5071 ..... ...... ............... .............. ...............
JN rimie .......................... 1,644,985 3,348,188 635 I.o96 ............ ............................. .......... .... 625,770 627,828
Miragoane ........ ............ 4,7.............. ... .. 478 2,031,000 187,258 ................ .............. ......... ............... .
Ouanaminthe ..... ..................... ................ ................. ................ ............... ............... 36..............
Petit Goave ..................... 4.854,394 9.638,134 ................................. ............. .......... ..... .......... .......... .............
Port au Prince ................. 6.034,936 11.952.976 841.390 1,271.478 1.802.000 166,144 9.841,398 3.402.735 289,868 293,636
Port de Paix ................... 1471,263 2,87869o............. .. .... 232.760 21,460 ............................ 246.247 262,198
Saint Marc ....................... 555.263 1.0oio81 2,328,961 3.501,568 8.759.330 807.457 ............... ......... ...... .

Total 1926-27 ................ 28,692,984 56,921,970 4,90oo945 7.334.573 28,o84,183 2,589,206 9,841,398 3.402,735 1,629,979 1,680,933
Total 1925-26 ................ 35,683.690 8 .z62a .6oo 4,994.526 9,416,535 21,587,180 2.323,465 7.313,699 1,926,500 2.190.598 1,884,870

Increase 1926-27 ............. ..... ..... .. .... ... ........... 6.497003 265.741 2.527,699 1.476,235.......
Decrease 1926-27 .............. 6,990,706 24,699630 93,581 2,081,962 ....... ....................... ..........560,619 203,937







HAITI: REPORT OF FINANCIAL ADVISER---GENERAL RECEIVER


Unit prices of Haiti's principal exports were:

1925-26 1926-27

Gourdes Gourdes
per kilo per kilo
Beeswax ..................................... ........... 3.3 3 37
Cacao ........................ .. ..................... .86 1.03
Coffee ........................ .................... 2.29 1 .98
Cotton, raw ........................................... 1.89 1.50
Cottonseed ..................... ..................... 3 o. 2
Honey ................................................... o.9 0.96
Lignum vitae ..................................... 0.13 0.14
Logwood ...................... .................... 1 o.09
Logwood extract ................................. .64
Skins ........................ ................. 3.27 3.37
Sugar .......................... ....................... o.26 0.35
T urtle shells .......................................... 75.4 52.63


For convenient reference the quantity and value of five principal Haitian
exports for 1926-27 are presented in table No. 19, together with the com-
parative data for the previous fiscal year. From this table it appears that
Port au -Prince was the most important port for exports of coffee, followed
in order by Jacmel, Petit Goave and Cayes. For 1925-26 the order was
considerably different, being Petit Goave, Port au Prince, Jacmel and
Cap Haitien. About half of Haiti's cotton crop was exported through
the single port of St. Marc, and one-sixth at each of the ports of Gonaives,
Port au Prince and Jacmel. Logwood and sugar exports were also highly
concentrated, the former at Cap Haitien and St.,Marc and the latter at the
single port of Port au Prince. Jeremie was the most important outlet for
cacao, followed by Cap Haitien, Port au Prince and Port de Paix.
Haitian exports are reduced to percentages of the total in table No. 20.

TABLE No. 20
PERCENTAGE OF VALUE OF EXPORTS, BY COMMODITIES
FISCAL YEARS 1916-17 TO 1926-17

Average Average Average
Commodity 1916-1i7- 1921-22- 1925-26 1926-27 1916-17-
1920-21 1925-26 1926-27

Per cent Per cent Per cent Per cent Per cent
Coffee ........................ 61.46 75,49 80.62 74.41 69.01
Cotton ....................... 8.73 11.98 9.30 9.59 10.29
Logwood ............... .. 9.31 3.o1 2.29 3.39 5.9'
Sugar, raw .............. .. 3.27 3.31 1.90 4.45 3.40
Cacao, crude ................ 4.36 1.40 I 86 2.ao 2.81
All other .................. 12,87 4.81 4.03 5.96 8.58

Total .............. 00oo00oo oooo 10o,oo 100.00 0oo.oo






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


There is but one outstanding feature, namely, the predominance of coffee
in the economic life of this country. For 1926-27 this one commodity
amounted to 74.41 per cent of total exports, and the eleven-year average
was 69.01 per cent. Cotton, while standing in second place in each of the
last two years, did not equal the eleven-year average. In fact "but one
important commodity improved its relative position in 1926-27 over that
for the period of 1916-17 to 1926-27, inclusive. This was sugar.
Finally, exports are classified according to the month in which they
were embarked for shipment abroad. These data are collected in table
No. 21. Most coffee was embarked in the first six months of the fiscal year,
cotton tended to be concentrated from February to June, inclusive, log-
wood was well distributed throughout the year, and this was also true
of cacao, though to a less extent. For sugar no regularity can be traced,
this commodity being controlled by one company and shipments being
adjusted to its marketing policy.
Detailed statistics relative to the foreign commerce of Haiti are included
in schedules Nos. I and 2, which are appended to this report.


Imports and Exports of Currency

Imports and exports of currency are shown in table No. 22. As was
the case in recent years, imports appeared as non-existent. This was
obviously incorrect, as appreciable exports of currency could not continue
from year to year unless such currency was first introduced into Haiti.
All that is implied is that currency was not shipped into Haiti as an
article of commerce. On the contrary it was largely brought by emigrants
returning from Cuba.
Imports of metallic money were only a fraction of those of previous
fiscal years, and it is improbable that important shipments of metallic
money will occur in the future. For paper money, chiefly United States
currency, exports were about equal to those of 1925-26. It is impossible
to estimate the ratio which exports of currency bear toward the amount
introduced by emigrants. Assuming that the total circulation of Haiti is
remaining about constant and that the proportion between gourde notes
and United States paper money is also uniform, there would be the expect-
ation that currency introduced by returning emigrants would ultimately
find its way into the banks and be shipped out of Haiti. Yet the amount
of currency exports is by no means as great as the sums which are believed
to have been brought to Haiti by Haitians returning from Cuba. An
interesting problem therefore remains to be solved.
















TABLE No. 21

QUANTITY AND VALUE OF EXPORTS, BY COMMODITIES AND MONTHS
FISCAL YEAR 1926-27

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


Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes Uourdes Gourdes
October, 1926 ........... 3,223,643 6.492,981 51,041 72.0 4 5,219,810 481,267 ............. ............. 141.571 122,866 292661 7,461,799
November ................ 3563.254 7,370.968 405 559 1.704,000 157,109 ......... ..... ... .... 230,832 218,319 231,776 7,978,731
December ................. 4.902,971 9,225,035 10,748 14,011 4,914,930 453.155 .... ......... '292.967 302,484 290,034 10,284,719
January, 1927 .......... 3,847.772 7.532,964 ............. .......... 1,357,695 125,179 ............. ...... 165144 179,053 287,967 8.125,163
February .................. 3.880,851 7.477,731 354,o32 497.767 1,746,000 160,980 2,945.521 1,153,000 134,102 143,955 312,415 9,745,848
March ..................... 3373.625 6.758,826 1,401,827 1.987,840 1,331,249 122,741 ............. ............ 109,268 117,299 499,757 9,486,463
April ..................... 2,136,514 4,382,027 1,308,048 1.845.650 1,672,000 154,205 3.345.120 1,127.475 186,436 200,127 500.950 8,210,434
May .......... .......... 1,204,824 2,387,836 904.953 1,410,828 2.307,500 212,752 ......... 175.340 188230 546,959 4,746,605
June ..................... 942,638 1.872,009 585.773 967,693 2,637,499 242,978 22 o 101,015 108,437 353.166 3.544,293
July ...................... 563,073 1,236,354 147,953 263,209 3,886,00o 358.289 ............. ............. 59938 64,345 390.890 2.3130,87
August ................... 391,238 841,367 87.440 165,388 1.150,00 106,030. ............ ............. 15,546 16,689 454,916 1,584,390
September ................ 662,581 1,343,872 48,725 109,604 157,500 14,521 3,550.735 1,122,250 17,820 19,129 404,534 3,013.910

Total ........... 28.692,984 56,921,970 4,900.945 7.334.573 28,084,183 2.589,206 9,841,398 3.402.735 1.629,979 1.680,933 4,566,025 76.495.442















TABLE No. 22


IMPORTS AND EXPORTS OF CURRENCY FISCAL YEARS 1922-23 TO 1926-27


Month


Imports
October, ..............................
N ovember ..............................
December ......... ..................
January, ............................
February ..............................
M arch ........ .......................
April .............................. ...
M ay ....................................
June ............... ... ...............
July ... ...........................
August .............. ... .. ..........
September ..........................

T otal ......................


Exports
October, ................... .............
N ovember .............................
December ...........................
January ..............................
February ................................
M arch .................. .............
A pril .......... ...... ...............
M ay ....................................
June ....................................
July ...................... .............
A ugust .................................
September........................

T total ..........................


Average
I 922-23-1924-25


1925-26


_________ ____ ________ I -


Gold Silver


Gourdes
S.............


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


333.333
50,000



250,000



6,583
342

640.258


Gourdes

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


41.767
5,000
15.813
22,333
I9.084



5.133
10,113
6.167

352.985

478,395


Paper Gold


Gourdes

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

133.333
333,333


416.667





883.333


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

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


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


133.333 .. .
II.25 ..........




8.333 ...........

166.667.............

319.583 ...........


1926-27


Silver Paper Gold Silver Paper Nickel


Gourdes



..* ....... ..
..* .. .. .
.. .. .. .. .


25........000
.... ... ...


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


300,000
,o000,000
500,000


Gourdes

... .. .. ..


15,015


146,ooo000.......
2,105,000 515,000 ..............
1.500 1003,500 ...........

2,277,500 3,318,500 15,015


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


122,090
53,060
25,000



34.930

80,530
72,500

388,110


Gourdes




.............' '


Gourdes






i..,. .........
............. '

..............' '

.............. '' '
............. ` `


1.000,000 .............


1,000ooo,ooo000

505,000
. . .





619,250
275,000

3,399,250


4,250

4.250


Copper
O
0

Gourdes ,-
......... .. .

...... ....... r












..... ...... -
............. >



I-



















350

35o
350

350


I






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


Customs Administration
On October I, 1926, the beginning of the fiscal year 1926-27, a new
system of collecting export duties was placed in effect. These duties are by
law collectable in American currency on the basis of the old French
weights and are increased by various surtaxes and wharfage and weighing
charges. Under present arrangements the old units are converted to metric
units and all duties, surtaxes, and other charges unified in a single duty
per kilogram. This change has resulted in considerable simplification of
the collection machinery and has been well received by shippers.
The customs administrative law was amended by a law of February 9,
1927, whereby the limitation of one year during which the General Re-
ceiver was given discretion to reduce or remit penalties was removed, and
discretion to reduce or remit penalties was extended to cases of differences
in weight, provided the customs administration is convinced of the absence
of fraudulent intent. Under this authority collectors were instructed to
impose no penalty where excess weight found at verification is not greater
than five per cent. In other cases the matter of reduction or remission of
penalties is decided by the General Receiver, on application by the importer
and after recommendation of the collector at the port of importation.
Internal revenue and postal laws impose various stamp taxes on docu-
ments relating to imports and exports and on packages received by parcel
post. The necessity of obtaining various stamps and affixing them to dif-
ferent documents was a cause of considerable annoyance to merchants and
others, and control of placing and cancellation of proper revenue or post-
age stamps involved an amount of care on the part of customs agents
wholly disproportionate to the revenue collected. Instructions were issued
on May 4, 1927, in accordance with which the amount of the stamp duties is
shown separately but as a part of each bill for customs duties and the en-
tire amount is paid to the public treasury in one transaction.
Various regulations were revised, including those relating to bills of
lading, storage dues, and parcel post importations, and numerous decisions
on the customs classification of specific articles were communicated to
collectors in order to assure uniformity of procedure at the different ports.

Tariff Revision
After operating under an antiquated tariff for many years, a thorough-
going revision, devised along modern principles, went into effect during
August, 1926. Therefore the year 1926-27 was' the first full year of ex-
perience under that instrument. Change is always difficult, and particularly
in Haiti revision of methods of long standing is approached with reluc-
tance. Not only was there organized opposition to any practicable tariff
revision, but melancholy predictions as to the effect of the new instrument
were numerous.






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


After the new tariff came into force, there was, of course, a certain period
during which importers were unfamiliar with the revised classification,
and the customs personnel was also unable to apply the new tariff with ac-
curacy and dispatch. However, the office of the General Receiver attempted
to facilitate operations by granting a reasonable period within which fines
would not be imposed for failure to conduct customs operations in strict
conformity with the new tariff.
After the expiration of a year it is believed that very few would wish
to return to the former procedure. Complexities have been replaced by
simplicity, and there is also general recognition that the new rates of duty
are more equitable and that the protective features in the tariff have been
beneficial.
Experience of a year, however, under the new tariff indicated that sever-
al schedules needed adjustment. Accordingly, there occurred a revision of
136 paragraphs and the addition of nine new paragraphs which went into
effect by virtue of the law of July 25, 1927. Among the most important
changes were reductions of duties affecting building and fencing materials,
tinware, aluminum ware, newsprint, wrapping and book paper, evaporated
milk and certain other varieties of canned foods. Duties were abolished on
drums used as containers for gasoline and similar products, as these contain-
ers are ordinarily reexported from Haiti. Additional paragraphs were inser-
ted in the tariff to provide for various articles of importation which experi-
ence showed should be classified separately, and several alternative ad
valorem duties were created, to complement specific duties already in effect.
Possibly further adjustments will be necessary from time to time, but
in a general way the tariff structure of Haiti may now be regarded as
quite satisfactory.

Commercial Conventions
During the fiscal year 1926-27 several commercial conventions became
effective. Haiti continued the policy, adopted the previous year, of placing
its commercial relations on the basis of most-favored-nation treatment for
all countries which enter into reciprocal agreements. It is true that the
commercial convention with France offers a tariff preferential of one-third
on a short list of commodities. However, the same tariff privileges are
granted to any nation which concludes most-favored-nation arrangements
with Haiti. Among the countries which entered into such relations during
the fiscal year under discussion or else with which such arrangements
came into force were:
United States: Commercial modus vivendi signed July 8, 1926; ef-
fective October I, 1926;
The Netherlands: Commercial convention signed September 7, 1926;
effective fifteen days after exchange of ratifications, which has not
yet occurred;






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


Italy: Commercial convention signed January 3, 1927; effective one
month after exchange of ratifications, which has not yet occurred;
Germany: Commercial modus vivendi signed July 28, 1927; effective
October I, 1927;
Dominican Republic: Automobile traffic convention signed May 21,
1927; effective May 21, 1927.
As a result of the foregoing arrangements the commercial structure of
Haiti has been considerably improved. Other commercial and parcel post
conventions are in course of negotiation, and eventually Haiti should have
a satisfactory group of treaties covering commercial matters.

Customs Operations
In view of the recession in foreign commerce, there naturally occurred a
decrease in the sum available for financing the operations of the office of
the Financial Adviser-General Receiver. It will be recalled that Article VI
of the treaty of September 16, 1915, provides that five per cent of customs
receipts are available for the expenses of the Financial Adviser-General
Receiver, and that further sums may be authorized by mutual agreement
between Haiti and the United States. Thus far the receivership has not
been under the necessity of requesting financial support beyond that de-
rived from five per cent of customs receipts. This is in spite of the fact that
shortly after the establishment of the receivership one-fifth of its oper-
ating fund was taken away and assigned to the Banque Nationale de la Re-
publique d'Haiti as compensation for its services as fiscal agent of the
Haitian government. Thus in reality the Customs Service and the opera-
tions of the office of the Financial Adviser have to be financed from four
rather than five per cent of customs revenues.
Table No. 23 presents a summary of the receivership fund for the
elapsed portion of the treaty period. It will be noted that five per cent of
customs receipts constituted Gdes. 1,683,093.81 during 1926-27, in contrast
with Gdes. 2,029,741.59 in the previous fiscal year. This was a decline of
17.07 per cent, which in reality was somewhat smaller than the reduction
in the value of imports and exports. That the percentage decline in the
receivership fund was not as great as that in imports and exports was due
to the fact that many import commodities and all export commodities are
upon a specific basis and therefore do not reflect declining price levels,
whereas the value of the-taxable commodities is so affected.
It was explained in the report of this office for 1925-26 that certain
available surpluses in the receivership fund had been invested in Series B
bonds of the Haitian government. The wisdom of this policy became
evident during the course of the year under discussion, as interest receipts
on such securities added Gdes. 43,707.15 to the five per cent fund of the
General Receiver and also because the market price of the securities ad-
vanced substantially.






J54 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

On September 30, 1927, Series B bonds of the Haitian government were
carried in the name of the General Receiver in the amount of Gdes.
803,783.85. This sum was in excess of the balance in the five per cent fund,
but arrangements have been made with the Department of Finance by
which interest credits above those which properly appertain to balances in
the five per cent fund will be carried to miscellaneous receipts of the
Haitian government. This arrangement permits fluctuations which neces-
sarily occur in the five per cent fund without the necessity and the expense
of temporary transfer of title to the securities between the General Receiver
and the Haitian government.


TABLE No. 23

RECEIVERSHIP FUND
FISCAL YEARS 1916-17 TO 1926-27

Five per Interest
Year cent of eresurpl Defic
customs on ds Total Expendi- Surplus Deficit
B bonds receipts ttres
receipts

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
September 1916 .. 60,211.85 ............ 60,211.85 89,850.15 ........... ... 29,638.30
1916-17 ....... 914.794.70 ........... 914,794.7o 796,625.70 1 8,I69.o 0 ......... ......
1917-18 .. ..... 755,464.80 ............. 755,464.80 741,055.80 14,409.00.............
I918- 9 .......... 1,432,176.6 0 ... .. ,432,176.6 700,035.60 732.141.00 ...............
919-2o ... 1. 603 639.95 ........... .. 603,639.95 1,380,460.60 223,179.35 ........ .....
1920-2 .......... 882.854.o5 ..... ....... 882,854.05 1,452,o73.10 ........ ... ... 569,219.05
1921-22 .......... 1.37781 1.70 ............. 377,81 1.70 1,279,142.25 98,669.45 ............ ..
1922-23 .......... .5.057 o ............. 555.057.o0 1,438.506.15 116,550.85 -. ....
923-24 .......... 1,607.569.51 ............ 1,607,569.51 1,896,332.08 ........... 288.762.57
1924-25 .. ........ ,787.500.9o ............. ,787.500.90 1,849,537.49 .......... 62,036.59
1925-26 .......... ,029,741.59 8,954.65 2,038.696.24 1.698.379.86 340,316.38 ....... ....
1926-27 .......... 1,683,o93.81 43,707.15 1,726,800.96 2.278,241.30 ............. 551,440.34
Total............ 5,689.916.46 52.661.8o 15,742,578.26 15,600,24o.o8 1.643,435.03 1,501,096.85
Average ....... 1,420,882.23 4,787.44 1,425,669.67 1.410,035.45 ..............
I,50o ,o96.85 ..........-.
Surplus for period .................. ......................... ................. 42 338.18 .............


It should also be borne in mind that the securities themselves will
eventually become the property of the Haitian government and will be
available for amortization requirements of the Series B loan. In the
meantime, interest receipts from the bonds in question amount to the sub-
stantial figure of Gdes. 53,816.40 annually, and the distribution of this
sum as between the five per cent fund and the general receipts of the
treasury is of little importance, since in either case disbursements there-
from will be for the benefit of Haiti.
Thus total receipts of the five per cent fund for 1926-27 amounted to
Gdes. 1,726,8oo00.96. In only two fiscal periods was this amount exceeded.
Furthermore, it was Gds. 301,131.29 or 21.12 per cent above the average of
Gdes. 1,425,669.67, which obtained from 1916-17 to 1926-27, inclusive.
Last year's report announced rather elaborate plans for improvements
of the physical equipment of the Customs Service. These were to a






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


considerable degree effected during 1926-27, with the result that total
expenditures from the five per cent fund amounted to Gdes. 2,278,241.30.
This was Gdes. 551,440.34 in excess of receipts entering the fund. In only
one previous fiscal year, namely 1920-21, was a greater deficit reported.
During that year the deficit was to cover expenses of ordinary operation,
whereas during the year under review it was exclusively for permanent
improvements and was financed by previously accumulated surpluses.
However, the surplus which amounted to Gdes. 693,778.52 on September
30, 1926, was reduced to Gdes. 142,338.18 on September 30, 1927. So far
as the five per cent fund is concerned, therefore, a further ,program of
permanent improvements in physical facilities for tie Customs Service
cannot be financed until such fund is again strengthened. As a matter of
fact, even the apparent surplus of Gdes. -142,338.18 must be reduced by
obligations of Gdes. 81,593.31, leaving an unobligated surplus of but Gdes.
60,744.87.
Presumably there will be no difficulty in meeting necessary expenditures
of the Financial Adviser-General Receiver for the year 1927-28, although
it must be admitted that the organization is not as fully protected as when
considerable surpluses were in the fund and available for contingencies.
On the other hand, the customs plant is gradually being brought into
satisfactory condition, and further expenditures for permanent improve-
ments of a magnitude equal to those of 1926-27 will not be necessary in
the immediate future.
Total expenses of the office of the Financial Adviser-General Receiver
are not very enlightening. Only when these disbursements are subdivided
is it possible to obtain a proper appreciation of the administrative efficiency,
or lack of it, which characterized the organization. Consequently, such dis-
tribution is presented in table No. 24. Examination of this table furnishes
sufficient indication of how the entire fund is administered. It appears that
costs of the central office were Gdes. 523,192.77 and those of operating the
custom-houses were Gdes. 712,154.94. These were the real costs of the office
of the Financial Adviser-General Receiver'and equaled Gdes. 1,235,347.71.
Under the terms of the arrangements between Haiti and the United States
the commission of the Banque Nationale de la Reptrblique d'Haiti as fiscal
agent should be added, as it is payable, when possible, from the five per
cent fund. During 1926-27 this commission was Gdes. 336,618.76. Therefore
total deductions from the-five per cent fund for ordinary operations, in-
cluding the commission of the bank, were Gdes. 1,571,966.47. This compares
with Gdes. 1,543,339.39 for the same items in 1925-26 or an increase of 1.85
per cent.
Moderate increases occurred in the cost of administration and in that of
customs operation. These were caused in the first instance by certain in-
creases in compensation and also by extending the work of the accounting
section and the section of customs statistics. There is no doubt that these







36 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

TABLE No. 24
EXPENSES OF FINANCIAL ADVISER-GENERAL RECEIVER,
BY OBJECTS OF EXPENDITURES,
FISCAL YEARS 1916-17 TO 1926-37


Year Administration Customs Permanent Bank Total
operation improvements commission

Gourdes Gourdes Gourdes Gourdes Gourdes
Septem ber, 1916........... ........ ..... ...................... ........................... 89,850.15
1916-17 ....... ...... .. ...................... ....... .... .. .......... .. ... ............ 796,625.70
1917-18 ........ ... ......... ... ......... .. ................ .... ....... ....... 741,055.80
1918-19................... .................. ................ ................ ........... ...... 700.0 35.6
1919-20..... ............... 329,634.00 508,570.75 114,500.00 427,755.85 1,380,460.60
920-21 ..................... 426,498.70 547,194 55 .................. 478.379.85 1.452,073 10
1921-22 ..... ....... ... 404,,251.70 605.773.60 .................. 269,116.95 1,279,142.25
1922-23..... .. ........ .... 503,997.40 600.627.10 .......:........ 333,881.65 1,438,506.15
1923-24 ........... ... .. 455,447.21 648,959.62 500,000.00 291,925.25 1,896,332.08
1924-25................... 461,316.07 673,495.96 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
1926-27..................... 523,192.77 712,154.94 706,274.83 336,618.76 2,278,241.30
Average 1919-20
to 1926-27........... 446,541.38 620.771.37 191,695.09 400,075.83 1,659,084.I1


added disbursements have justified themselves, as there is closer audit over
the financial transactions of the Haitian government and as commercial
statistics are now presented to the public within three weeks after the
close of the month to which they apply.
During preceding years payrolls in the custom-houses have been carried
at a particularly conservative level in order to obtain as large a surplus as
possible in the five per cent fund for utilization in the construction of per-
manent improvements at the several ports. As the unobligated balance of
the five per cent fund became approximately adequate for the purpose in
question, it was considered equitable slightly to increase the compensation
of certain employees in the custom-houses. Moreover, comparison of aver-
age salaries in the Customs Service with those paid in other departments
of the Haitian government is sufficient demonstration that even with the
increases of pay accorded in 1926-27 the salary scale in the Customs Serv-
ice is by no means inflated.
As the treasury commission paid by the Haitian government to the Ban-
que Nationale de la R6publique d'Haiti is a flat rate of one per cent of
customs and internal revenue receipts, it follows that the amount paid to
this institution varies directly with customs and internal revenue collec-
tions. Accordingly, customs receipts during 1926-27 of Gdes. 33,661,876.23
involved payment to the bank from the five per cent fund of Gdes.
336,618.76. This is only the second fiscal year in which the bank commission
has been paid as of the fiscal year in which it accrued. Such procedure is
decidedly useful, as it is possible to tell at a glance the commission due to
the bank. Previously the practice was in effect of paying the bank com-
mission for any given year during the next subsequent year. Therefore
actual disbursements from the five per cent fund on account of the bank






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


commission never constituted exactly one per cent of customs collections
for the year in question, and the manner by which the amount of each pay-
ment was determined appeared puzzling to persons not familiar with the
details of accounting procedure then in effect.
Finally, consideration should be given to the sums from the five per cent
fund which were expended during 1926-27 in permanent improvements.
These totalled Gdes. 706,274.83 and were far in excess of those of any pre-
vious fiscal year. In fact the only near approach was in 1923-24 when an
appropriation of Gdes. 500,000 was made for the construction of the finance
office building. Even more striking is the comparison of expenditures for
permanent improvements during 1926-27 and the average for the receiver-
ship period. The latter was Gdes. 191,695.09, thus demonstrating that for
the fiscal year under review disbursements for permanent improvements
were 268.44 per cent greater than the average.
Further subdivision of disbursements from the receivership fund has
been made in accordance with objects of expenditure as well as by months
of the fiscal year 1926-27. Such disbursements have also been subdivided
as between expenses of administration and expenses of customs operation.
The former are reflected in table No. 25. There it appears that salaries
accounted for Gdes. 426,276.16, an advance of 10.57 per cent from Gdes.
385,514.o8 which were expended for the same purpose in the previous year.
As already stated, both salary promotions and added personnel for improv-
ing the services of the administrative office were responsible for the in-
creases in question.

TABLE No. 25

EXPENSES OF ADMINISTRATION. OFFICE OF FINANCIAL ADVISER--GENERAL RECEIVER, BY
OBJECTS OF EXPENDITURE AND BY MONTHS.
FISCAL YEAR 1926-27


Month Salaries Matelss Transportaton Miscellaneous Premet Total
and supplies improvements

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
October, 1926 ......... 32.51 1.67 2.129.02 1,268.04 7,088.61 ........... ... 42.997-34
November .............. 33.598.34 2,409-31 425.11 617.18 ............... 37,04994
December .............. 36,004.16 5,238.14 263.03 462.85 228.00 42,196.18
January, 1927 ........ 37,525-83 4,956.08 811.96 619.21 ,r861.oo 45,774.08
February .............. 36,940.00 1541.55 485.60 674.55 2.257.25 41,898-95
March .................. 36.125.83 22.356.05 874.06 1,658.60 3,173.88 64,188.42
April ................... 35,458-33 5,979.20 426.39 1,189.52 2,414.88 45,468.32
May .................... 47,964.17 I ,033.57 460.21 475.50 485.00 60.418.45
June .................... 29790.83 4,505.24 6,627.06 704.35 193.57 41,821.05
July ............. 28,277.50 1,719.85 855.60 705.93 ........... .... 31.558.88
August .............. .. 39,702.00 1.205.74 3.481.50 716.55 ............... 45,10579
September ............. 32.377.50 1012.71 1.311.99 626.75 ............... 35,32895
Total .......... 426.276.16 64086.46 17,290.55 15.539.6o 10,613.58 533,806.35
Total 1925-26 .... .. 385.514.08 25,608.03 5036.04 5183851 ............... 467,996.66


Expenses for materials and supplies were also substantially greater. This
was due to the fact that certain rather expensive equipment was purchased






38 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

during 1926-27, and the acquisition of this equipment has materially improv-
ed the efficiency of the central office. Expenses for transportation were
some three times as large as those of the previous year, but were still well
within reasonable limits. On the other hand, miscellaneous expenses total-
ling Gdes. 15,539.60 were only one-third as great as those during 1925-26,
while the cost of permanent improvements in the central office was Gdes.
10,613.58 as compared with no similar disbursements during the previous
year.
In the Customs Service, salaries absorbed Gdes. 601,938.79, an increase
of 4.02 per cent from the Gdes. 578,687.52 of 1925-26. As in the central
office, special supplies of materials and equipment were purchased for
certain of the customs offices. thus causing expenditures under this
category of Gdes. 50,669.85 to be approximately double those of the pre-
vious year. Transportation expenses were also twice as great as in 1925-26.
In contrast, miscellaneous expenses declined from Gdes. 54,794.80 to Gdes.
37,756.49.
Finally, deductions from the five per cent fund for permanent im-
provements at the custom-houses amounted to the substantial total of
Gdes. 695,661.25, or an increase of 348.70 per cent from Gdes. 155,040.47
during 1925-26. All of the foregoing data are assembled in table No. 26.

TABLE No. 26
EXPENSES OF CUSTOMS OPERATION, BY OBJECT OF EXPENDITURE AND BY MONTHS.
FISCAL YEAR 1926-27


Month Salaries a als Transportation Miscellaneous Permaent Total
and supplies r n improvements

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
October, 1926 ......... 50,469.09 6,295.02 3,449.97 3,335.10 12,041.77 75,590.95
November .............. 50,404.85 4,556.29 1,924.60 2.277.79 5,850.99 65,014.52
December ............... 50,339.83 10,019.85 z,317.29 5.702.55 8,173.07 75.552.59
January, 1927 ........ 50.517.90 2,546.64 1,963.62 6,991.78 425-40* 61,594.54
February ................ 48,974.30 4,582.37 1,458.22 5.793.54 11,165.64 71,974.07
March .................. 50,470.20 2,946.96 1,896.00 2,881.62 26,268.13 84,462.91
April ................... 53.396.55 1.793.42 2,276.43 1,134.09 52,052.84 o10.653.33
May .................... 49,556.07 2,109.75 1,433.72 4,521.34 95,697-52 153,318-40
June .................... 48,460.96 2,135.61 1,179.70 757.64 93,232.03 145,765.94
July ................... 50.734.06 3.900.97 1,313.42 58877 160.687.79 217,225.OI
August .................. 48,516.85 4.736.o2 1.593.26 894.60 117,258.34 172,99907
September .............. 50,098.13 5,046.95 1,983.58 2.877.67 113,658.53 173,664.86
Total ......... 601,938.79 50,669.85 21,789.81 37,756.49 695,661.25 1,407,816.19
Total 1925-26 ... 578,687.52 26,450.41 9,461.68 54-794.80 155,040.47 824,434.88
-Credit.

If the cost of permanent improvements is deducted during both 1925-26
and 1926-27 it is found that total expenses of administering the office of
the Financial Adviser-General Receiver were Gdes. 523,192.77 in 1926-27
and Gdes. 467,996.66 in 1925-26, an increase during the latter year of Gdes.
55,196.11 or 11,79 per cent. For the Customs Service, operating expenses
other than for permanent improvements were Gdes. 669,394.41 in 1925-26
and increased to Gdes. 712,154.94 in 1926-27. This represented an expan-






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 39

sion of Gdes. 42,760.53 or 6.39 per cent. There is no reason to anticipate
that similar expansion in.expenditures will be required during the next fis-
cal year. Nevertheless, every effort is being made by this office to obtain
permanency of tenure among satisfactory employees in the belief that
such a policy tends toward efficiency and stability. It logically follows.
moreover, that employees of mature experience in their several tasks
deserve increased compensation from time to time up to a maximum which
represents the potential value of their services. This office is of the opinion
that financial reward for work well and faithfully done is as essential as is
strict economy and careful administration of public funds.
Permanent improvements for the Customs Service are financed from
two sources, namely from the five per cent fund of the General Receiver
and from budgetary, supplementary and extraordinary credits for public
works. Relevant data appear in table No. 27, where expenditures for per-
manent improvements from the five per cent fund and from the general
funds of the government are presented for the central administration and
for the several ports. Of the total of Gdes. 706,274.83 derived from the five
per cent fund, Gdes. 615,794.77 were employed at Port au Prince, for the
most part in the construction of a customs office building, a parcel-post of-
fice and two modern warehouses. Of second importance was the expendi-
ture of Gdes. 36,382.89 at J&remie, principally for a residence for the Col-
lector of Customs. Other expenditures from the five per cent fund in excess
of Gdes. Io,ooo were at Belladre for a custom-house and platform scale,
at Port de Paix for a customs office building and at the central office for
improving the grounds of the finance office building.


TABLE No. 27

REPAIRS AND IMPROVEMENTS TO CUSTOMS PLANT AND EQUIPMENT
FISCAL YEAR 1926-27


Repairs and
Permanent improvements to plant
Port improvements and equipment Total
paid from paid from
5 per cent fund* general funds
of the government

Gourdes Gourdes Gourdes
Administration ............................... 10,61358 2,655.17 13,268.75
Aquin ........................................ 47.58 .. ... .... ..... ... 47.58
Bellad re ...................................7... 18,17 .54 .8.... .. .. 8,170.54
Cap H aitien ................... ................ 443.17 ................ 443.17
Jacmel ........................................ 2,172.55 103.088.28 1o5.26o.83
Jirimie ........ ........................... .. 36,382.89 1,554.21 37.91 7.10
Ouanaminthe ................................... 2.691.65 2.691.65
Petit Goave .............................. .. 532.00 4',820.89 42,352.89
Port au Prince ............................... 615.794.77 20,823.56 636.618.33
Port de Paix ..................... ......... 14 798.86 3.789.29 18,588.15
Saint M arc ................................... 4,627.24 6.620.24 21.247.48
Total ................... ................. 706,274.83 190o 351.64 896,626.47

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






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


Expenditures for permanent improvements from the five per cent fund
were largely confined to the last five months of the fiscal year, during
which they ranged between a minimum of Gdes. 93,425.60 in June and a
maximum of Gdes. 160,687.79 in July.
Projects financed with general funds from the treasury absorbed Gdes.
190,351.64, and were devoted to the following purposes:

W harf, Jacmel ...................... ................... Gdes. 103,088.28
W harf, Petit Goave ...................... .................. 41,820.89
Sea wall. Port au Prince ................................. 19,691.56
W harf, Saint Marc ......................................... 16,620.24
Customs office building, Port de Paix ................. 3,789.29
Improvements to grounds, Finance office building.
Port au Prince ..................... ................ 2,655.17
Repairs to wharf, Jeremie ............................... 1,554.21
Repairs to custom-house, Port au Prince............... ,132.00
Gdes. 190,351.64

Thus total expenditures for permanent improvements in the organization
of the Financial Adviser-General Receiver were Gdes. 896,626.47, a far
greater sum than has heretofore been utilized and substantially double
those of the previous year. As a consequence, the improvement program
was rapidly advanced toward conclusion during 1926-27, and expenditures
of equal magnitude will not be necessary in future years. In fact they will
not be possible, as the reserve in the five per cent fund has been practically
exhausted and as customs facilities are now in sufficiently satisfactory
condition that general funds of the treasury should principally he devoted
to other purposes.
Those projects which are still necessary to place rhe Customs Service
upon a thoroughly satisfactory basis and which have not already been
authorized and financed are:
Wharf, Cap Haitien
Warehouse, Cap Haitien
Wharf, Gonaives
Warehouse, Gonaives
Residence for Collector, Gonaives
Port office, Port au Prince
Warehouse, Jeremie
Warehouse, Cayes
Residence for Collector, Cayes
Office, Jacmel
One or more of these projects should be completed each year, and before
many years the customs plant of Haiti will be entirely adequate for the
volume of commercial transactions which at present exists.
Operating results have little significance unless reduced to a comparative
basis. Accordingly, table No. 28 has been constructed in the following
manner: the several ports of the republic have been classified in accord-






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


ance with the importance of their customs receipts; opposite the percentage
of total customs receipts received at each port is placed the expenditures
for customs operations; in another column the cost of customs operations
is shown as a percentage of expenditure to total receipts at each port.
Those ports which showed collection costs below the average of 2.11 per
cent were, in order of most economical collection, Petit Goave, Miragoane,
Jacmel, Cayes, Port de Paix and Port au Prince. All of the others showed
collection costs above the average, rising to a maximum of 135.17 per cent
in the case of Glore. Of course in this case the port is merely a border
station and operated for the purpose of preventing contraband rather than
because of any expectation of commercial traffic of importance.
In a general way collection costs should be correlated with the amount
of traffic moving through each custom-house. As is the case with many
types of business, unit costs tend to decline as volume of business increases.
For customs operations, however, there is a limit to the application of this
principle. Verification and taxation of imports is a complicated process,
and costs tend to mount rapidly when great diversity of products is com-
bined with small unit shipments, as is the case in Haiti. On the other hand,
export products are easily classified and taxed when they are confined to
staples which are usually forwarded in large shipments. Thus costs of cus-
toms operation tend to advance in what may be termed the import ports
and to decline at the export ports. For this reason costs at Petit Goave,
Miragoane and Jacmel tend to remain low. In spite of the fact that almost
fifty per cent of customs receipts is collected at Port au Prince, its cost
of operation is but little below the average, because of the dominating
position which imports assume and because certain supplementary expend-
itures are necessary, particularly in connection with the control of ship-
ping.
Cayes passed Cap Haitien during 1926-27 as the second port of the re-
public for customs receipts. The relative importance of the other ports was
maintained, except that Gonaives passed Jeremie, St. Marc exceeded Port
de Paix, and Belladere moved ahead of both Ouanaminthe and Glore.
Undoubtedly the most striking fact exhibited in the table is the paramount
importance of Port au Prince in the commerce and finance of Haiti.
Permanent improvements have no relation to ordinary operating dis-
bursements. Such improvements are authorized in accordance with the
respective needs for enlargement of commercial facilities, and when im-
provements are undertaken the requirements of several years are usually
anticipated.
In summary, customs operations absorbed 2.11 per cent of customs re-
ceipts, permanent improvements at the several ports and at the central
office involved almost equal disbursements, or 2.1o per cent of customs
receipts, while supervision of customs operations, costs of operating the
accounting and auditing services and expenses connected with preparation
















TABLE No. 28

DISTRIBUTION OF EXPENDITURES FROM RECEIVERSHIP FUND. FISCAL YEAR 1926-27


Ratio Cos pr Prmant Cost per Cost per
Port Customs to total Customs C Permanent
Cutm gourde gourde Total Gourde
receipts customs operation collecrd improvements collected collected
receipt?

Gourdes Per cent Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Port au Prince ......................................... 15.698321.56 46.63 320,947.55 .0204 615.794.77 .o392 936,742.32 .0596
Cayes ............................................. 3.408,107.55 1o. 58,437.89 .017 .. ....... ....... .... .... 58 437.89 .0 71
Cap Haitien ....................................... ...... 254.525.83 9.67 86,410.14 .0266 443.17 .0ooo 86,853.31 .o267
Jacmel .............................................. 2.973.165.49 8.83 50,329.94 .o169 2,172.55 .0007 52,502.49 .o176
Petit Goave ......................... ... ......... 2147.929.25 6.38 32,070.93 .0149 532.00 .ooo02 32,602.93 .0151
Gonaives ............................................. 1,668,692.47 4.96 50,683.85 .0304 .. .... .... 50,683.85 .0304
Jri(mie ............................................... 1,365,664.38 4.06 34.338.97 o251 36.382.89 .0266 70,721.86 .0517
Saint Marc ............................................ I,174.073.69 3.49 27,663.03 .0236 4,627.24 .oo39 32.290.27 .0275
Port de Paix .......................................... 1,123,445.51 3.34 21,604.51 .o192 14,798.86 .0132 36,403.37 .0324
Miragoane ............................................. 705.299.97 2.10 1 1,625.03 .o165 ................... ............. 11,625.03 .oz65
Aquin ................................................. 113,122.24 .34 3,669.21 .0324 47-58 .0004 3.716.79 .0328
Belladlre ................................ ... .......... 13,458.33 .04 4,762.06 .3538 18,170.54 1.3501 22,932.60 1.7039
Ouanaminthe ........................................... 12,516.45 .04 4,808.54 .3842 2,691 65 .2150 7,5oo.19 .5992
Glore ...................................... ........ 355351 .01 4,803.29 1.3517.. .. ..... 4,803.29 1.3517

Total ........................................ 33,661,876.23 0oo.oo 712,154.94 .o211 695,661.25 .0207 1,407,816.19 .0418

Administration ............................. ............. ................ ....... .............................. 0o,613.58 .000oo3 533,806.35 .0159

Total administration and customs operation ..... ................................................ ....... ......... 706,274.83 .0210 1,941,622.54 .0577

Bank commission ..336,618.76 .oroo
BankTotal ndiur from fiv pssr nt fund ............................ ....................... ... .................. ............. 2,278,2418. .0677
Total expenditures from five per cent fund .......................... 2,278,241.30 .0677


----------.- -----n~~--~------*--- ---------------- Ilrl(l~~S-i~--TI-----5~.~---~ .~_ .I~--~-----FI1~-~C~sI_ .~I*__1~


0
3:










z

n














;Q
ta

mo






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


and administration of the budget and the numerous miscellaneous activities
of the office of the Financial Adviser-General Receiver required 1.59 per
cent of customs receipts. To the foregoing costs must be added one per
cent of such receipts as treasury commission to the Banque Nationale de la
Republique d'Haiti for its services as receiving and paying agent of the
government. Thus total deductions from the five per cent fund of the
General Receiver during 1926-27 were 6.77 per cent, compared with re-
ceipts of five per cent as contemplated under the treaty between Haiti and
the United States. If, however, the cost of permanent improvements
of 2.10 per cent is deducted there remains a charge for actual administra-
tion of 4.67 per cent. This figure is the one which should receive attention
in considering the efficiency of operation of the receivership. As it is well
within the five per cent allowed by the treaty, even after the commission of
one per cent to the bankis included, there would appear to be sufficient
evidence that operating arrangements are on a sound basis and can con-
tinue to be maintained within five per cent of customs collections.
Most of the permanent improvements effected in 1926-27 were financed,
moreover, from balances accumulated in the five per cent fund in previous
years. In fact these balances had been purposely enlarged to a level capable
of financing some expensive permanent improvements which had long been
under consideration. These were particularly the construction of new office
quarters and new warehouses for the custom-house at Port au Prince.
Comparative data for costs of administration, customs operations, per-
manent improvements and treasury commission during the period of the
receivership from 1919-20 to date appear in table No. 29. Previous to
1919-20 operating expenses of the receivership were not segregated in ac-
cordance with their object. For 1926-27 customs operations cost Gdes.
712,154.94 and were well above those of the previous year and of the eight-
year average. A similar statement applies to costs of administration. Total
operating expenses of Gdes. 1,235,347.71 were 16.04 per cent in excess of
the average from 1919-20 to 1926-27 of Gdes. 1,064,602.58.
Activity in improving the plant and equipment of the Customs Service
and of the administrative office was undoubtedly the distinguishing fea-
ture of the receivership during 1926-27. Total expenses in this connection
were Gdes. 706,274.83, an amount 355.54 per cent in excess of Gdes. 155,
040o.47 during 1925-26 and an increase of 268.44 per cent over the average
of Gdes. 191,695.09 for the last eight years of the receivership.
For 1926-27 the commission paid to the Banque Nationale was exactly
one per cent of customs receipts, and this was true also during 1925-26.
In the years between 1919-20 and 1924-25, inclusive, the average paid to
the bank as treasury commission substantially exceeded one per cent of
customs revenues, as this commission had for a time been allowed to ac-
cumulate, or at least to be paid in the year subsequent to the one in which
it was earned. Therefore the average sum paid as commission to the Banque







HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


TABLE No. 29

COSTS OF CUSTOMS OPERATIONS, BY PORTS, AND COSTS OF ADMINISTRATION,
PERMANENT IMPROVEMENTS AND TREASURY COMMISSION,
FISCAL YEARS 191p-20 TO 1926-27

Average Average
Port t919-20o 924-25 1925-26 1926-27 t1920
1923-24 1926-27

Gourdes Gourdes Gourdes Goul des Gourdes
Aquin ....................... 4 144.35 3,473-83 3.477.88 3,669.21 3,917-83
Belladre .................... 898.96 2,000.30 2,025.01 4,762.o6 1.660.27
Cap Haitien ................. 73,19o.96 85,065.19 70,841.95 86,410.14 76,034.01
Cayes ....................... 5o,932.83 60,765.24 60.917.11 58.437.89 54.348.06
Glore ........................ 860.12 2,021.85 1.859.95 4,803-29 1.623.22
Gonaives ................... 37,507.43 36,831.10 40.127.43 50,683.85 39.397-44
Jacmel ....................... 48,404.08 48,431.19 53.749.1 50,329.94 49,316-33
Jirimie ...................... 29,439.82 33,749.14 36,791.45 34,338.97 31,509-83
Miragoane ................... 6,o98.56 7,615.28 8,356.14 1 ,625.03 7,261.15
Ouanaminthe ............... 4,180.33 3.481.29 2,616.05 4,808.54 3,975.94
Petit Goave ................. 26,449.52 34,1o6.17 30.921.21 32,070.93 28,668.24
Port au Prince .............. 256,158.43 305,140.31 309,650.96 320,947.55 277,o66.37
Port de Paix ............... 17.548.24 19.687.95 21.856.60 21,604.51 18,861.28
Saint Marc .................. 22,074.54 31,127.12 26,203.56 27,663.03 24.420.80

Total customs operation 577,888-17 673,495.96 669,394.41 712,154.94 618.o6o.77
Administration and civil
pay clerks .............. 423.965.80 461,316.07 467,996.66 523.192.77 446,541.81
Total administration and
operation ................. 1,001,853.97 1.134,812.03 1.137.391.07 1,235,347.71 1,o64,602.58
Permanent improvements.... 122,900oo.oo 57.745.41 155,040.47 706,274.83 191.695.o0
Bank commission ........... 360,21 .91 656.98o.o5 405,948.32 336,618.76 400,075.83
Total expenditures from
5 per cent fund .... 1,484,965.88 1,849,537.49 1,698,379.86 2,278.241-30 1,656,373.50


National during the period 1919-20 to 1926-27 was Gdes. 400,075.83
and was not an accurate reflection of the amount properly accruing under
that account. Accordingly, average expenses for the eight-year period
of Gdes. I, 656,373.50 appear slightly greater than should be the case.
With this explanation, it may be stated that total expenditures from the
receivership fund of Gdes. 2,278,241.30 during 1926-27 were 37.32 per cent
above the average. As pointed out before, most of the excess was due
to increased disbursements for permanent improvements.
Costs of customs collection, as well as other deductions against the
receivership fund, are reduced to percentages in table No. 30 for the period
during which comparisons are possible. Thus for the past eight years
the lowest operating cost was at Petit Goave and the highest at Glore.
The average was 2.04 per cent, which compared closely with the average
for 1926-27 of 2.12 per cent. There was also similarity between the average
cost of administration for the eight-year period of 1.47 per cent and that
for 1926-27 which was 1.56 per cent. In short, total administration and
operation during 1926-27 of 3.67 per cent of customs receipts was but 4.56
per cent in advance of the average from 1919-20 to 1926-27 of 3.51 per cent.
A very different situation appeared for permanent improvements. Here
2.10 per cent of customs receipts was disbursed for new construction
during 1926-27 as compared with an average of 0.63 per cent from 1919-20







HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


to 1926-27, inclusive. Furthermore, because of delayed payments of the
commission to the bank the average for the entire period under review was
1.32 per cent, whereas exactly I.oo per cent should have been expected.
The latter, however, was the amount so paid during 1926-27.
Total deductions from the receivership fund, accordingly, amounted
to 6.77 per cent of customs receipts or 23.99 per cent in excess of the
average of 5.46 per cent for the eight-year period for which receivership
expenditures have been segregated in accordance with their objects. This
appears to be excessive, but is explained largely by special activity in
connection with customs improvements. These are of a non-recurrent
character, and there is every reason for assurance that under present con-
ditions ordinary operations of the office of the Financial Adviser-General
Receiver can be efficiently conducted within five per cent of customs


TABLE No. 30
TOTAL COST OF COLLECTING EACH GOURDE OF CUSTOMS RECEIPTS.
FISCAL YEARS 1919-20 TO 1926-27

Average Average
Port 199-20 1924-25 1925-26 1926-27 1919-20
to to
1923-24 1926-27

GGourd e ourdes Gourdes Gourdes Gourdes
Aquin ................... .... .......... ....... .0209 .0128 .0192 .0324 .q2ol
Belladire .......................................... 4.1225 2.8871 1.3629 .3538 .7940
Cap Haitien ...................................... .0230 .o213 .o 39 .0266 .0215
Cayes ...... ................ ... ..... ........ .0195 .ox65 1o 69 .0171 .0183
Fort Libert ....................................... .0975 ......... ... ..... .. ....... o975
Glore ............................. ............ .. 1.8248 3.0370 1.1973 1.3517 1.5974
Gonaives ................................... ..... .0251 .0192 .o21o .0304 .0243
Jacmel ........... ............................... 209 .0158 .o151 .0169 .o 86
Jirimie ........................................ .0376 .0276 .ol8o .0251 .0295
Miragoane ............... ... ....... ............ .0137 .0127 .o143 .oi65 .o140
Ouanaminthe ..................... ........ i.182o .4073 .1838 .3842 .6004
Petit Goave .........................0163 .0134 .0114 .o149 .o148
Port au Prince ...... ........... ............ .0217 .019 .0174 .0204 .0205
Port de Paix ... ........................... .0 67 .o161 .0122 .0192 .OI6i
Saint Marc ......................................... .0222 .0248 .0197 .0236 .O224
Total customs operation ..................... .0217 .o188 .0165 .0211 .0204
Administration ...... .......................... .oz61 .0129 .0115 .0156 .0147
Total administration and operation .......... .0378 .0317 .o28o .0367 .o351
Permanent improvements ...................... .0046 .oo16 .oo38 .0210 .oo63
Bank commission ......................... .. .0136 .0184 .oioo .oroo .0132
Total expenditures from 5 per cent fund .. .0560 .0517 .0418 .o677 .0546


receipts. If and when export receipts are reduced or eliminated, however,
there may be some difficulty in maintaining operations within the fore-
going limit, especially when it is remembered that twenty per cent of the
receivership fund is earmarked as commission df the Banque Nationale.
Most of the data in connection with the administration of the receiver-
ship fund are aggregated in table No. 31 where total disbursements from
the fund are presented by months, by ports, and in part by objects of
expenditure. Because of the fact that the bank commission is paid 'during
the last month of the fiscal year expenditures during that period are decid-

















TABLE No. 31

TOTAL DISBURSEMENTS FROM RECEIVERSHIP FUND, BY MONTHS,

FISCAL YEAR 1926-27


October November


Gourds Courde.
Administration 42,997.34 37,049.94
Bank Commission ............
Permanent
improvements 12,041.77 5,850.99
Aquin .............. 386.57 293.78
Belladere ......... 305.45 165.00
Cap Haitien ....... 10,009.42 7,924.53
Cayes ............... 5,486.79 5,638.26
Glore ............... 283.00 150o.oo
Gonaives ...... 706.30 3,504.61
Jacmet ........ 4,799.03 4,312.77
Ji.rmie ............ 2,859.57 2,849.61
Miragoane .......... 894.92 954.00
Ouanaminthe .... 325.4 186.75
Petit Goave ........ 2,586.12 2,615.70
Port au Prince ..... 27,41933 26,611.59
Port de Pai ...... 1,78157 1,668.95
Saint-Marc ...... 2,705.69 2,287.98

Total ..... 118,588.29 1o2,o64.46


Cost per gourde
of customs receipts:
Administration
Bank Commission
Permanent
improvements
Customs operation

Total .....


.oo03
.o068

.0314


December January


February March


April May


Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
41,968.18 43,913.08 39,641.70 61,o04.54 43,053.44 59,933.45


8,401i.o7
250.00
1,520.75
5,554-21
6,158.53
1.505-75
4,968.63
4,249-79
2,717.47
1,320.43
1,435.60
2,980.92
30,062.96
2,222.74
2,431.74


1,435.60
274.00
172.50
6,279.19
5.1 1o.o5
157o00
8,058.85
4,198.6o
3,032.52
1,167.87
438.95
2,716-70
26,581.36
1,722.25
2.1 ,o.10


1117,748.77 107,368.62


13,422.89 29,442.01
443.20 271.60
174.01 i66.8o
9,496.57 8,089.32
4.413.95 4,605.65
150.00 151.80
1 9 -' o 5,123.6r
4 23i '5 4,053.85
2,963.60 2,767.30
981.92 906.52
199.28 717.77
3,169.23 2,534.30
25,755.79 24,236.30
1,648.00 2,142.85
3.191.75 2,427.11

1 13.873.02 148,651.33


54,467.72
309.40
156.75
6,570.36
3,364.16
158.59
3.227.75
4,216.03
3.824.90
1.108.55
199.12
2.457.20
29,199.41
r,645.00
2,163.27

156,121.65


.0105 .oro7 .0148 .01371 .02071 .0176
... ... .... .. ... I .. ..... ... ... I ... .. .......... .... .... ... ....

.0017 .oo0021 .0005 .0047 .oioo .o223
.0167 .or72 .0209 .0211 ,0197 .0240

.0289 .0300o .0362 .0395 .5o04 .0639


96,182.52
262.00
18o.oo
9,563.66
3,860.75
150.00
4,145.25
3,972.18
2,486.70
1,123.28
523.75
2,485-35
24,880.64
1,812.05
2,175.27

213,736.85


June July


Gourdes
41,627.48


93,425.60
256.oo
199.50
5,592.04
3,860.30
157-50
3,454-35
4,016.74
2.593-40
726.07
182.50
2,421.50
25.130.36
.,645,00
2,298.65

187.586.99


.0267 .0194
.. ... .... .... .

.0428 .0435
.0256 .0244

.0951 .0873


August


Gourdes Gourdes
31,558.88 45,105.79


160,687.79
368.o6
370.5
5,230.97
5,213.20
15o0.00
3,282.50
3,881.23
2,77o.4o
751.44
176.35
2,730.62
27.443.83
1,842.35
2,326.77

248,783.89


.0151


.0768
.0270

.1189


117,258.34
304.60
1,163.80
5,763.55
5.445.85
150.00
3,244.89
4,410.75
2,516.5o
969.00
210.10
2,835.29
26.117.70
1,663,15
945.55

218,104.86


September Tot


Gourdes G
35.328.95 523,1
336,618.76 336.6


113,658.53
250.00
187.00
6,336,32
5,280.40
1,639.65
3,978.06
3,987.89
2,957.00
721.03
212.95
2,538.00
27,508.28
,81ro.6o
2,599.15

545,612.57


706,2
3,6
4,7
86,4
58,4
4.8
5o,6
50.'
50,3
34.

4.,
32,.
320,.
221,
27,.

2,278,


____________


.0206 .0140
........... .1338

.0537 .0452
.0255 .0238

.0998 .2168


al

o
ourdes
92.77
18.76 O

74.83
6.21
62.o6
10-14 Z
37.89 Q
03.29 >
683 85
329.94 >
138.97
625.03
808.54
070.93
947.55
604.51
163.03
0241.3o



.0156 O

.0210 g
-- Xi


.0211

.0677


~


----'-----'-----' '---'






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


edly out of line with the average. In fact the last five months of 1926-27
showed operating costs for the Financial Adviser-General Receiver of
some nine per cent of customs receipts. Not only was this caused by
payment of the bank commission but by the fact that expensive permanent
improvements were largely confined to that period. Ordinarily there
should not be wide deviation of monthly disbursements from the receiver-
ship fund, with the exception of the final month of the fiscal year. The
foregoing statement takes account of the fact that approximate similarity
in total expenditures for each month does not represent equal costs of col-
lection. As customs receipts decline in the so-called dead season percentage
costs correspondingly rise.

Internal Revenue Service

Normal operations characterized the Internal Revenue Service during
1926-27. This was evidenced by receipts almost identical with those of
the previous year and by the fact that the composition of those receipts
was also closely analogous to that of the prior fiscal period. Gradually
the internal revenue organization has been placed on a reasonably effi-
cient operating basis, as the agents in the smaller districts have become
more familiar with their tasks and with the laws governing internal taxes.
As a matter of fact, the selection and retention of competent personnel
for the local offices of the Internal Revenue Service is one of the most
difficult problems which it confronts. Because of insignificant receipts
from internal taxes throughout most of the rural districts it is out of the
question to pay salaries which would attract educated and experienced
officers. On the other hand, low salaries often imply either inexperience or
lack of responsibility. There is hardly need of emphasizing the fact that
either of these defects entails unfortunate consequences to the service.
No remedy for this situation is in sight until a land tax of general
application is in effect, at which time the receipts of the local branches
of the Internal Revenue Service will justify salaries which will attract
a higher grade of personnel.
The law of June 6, 1924, which created the Internal Revenue Service,
also provided that for an indeterminate period" the service would be
authorized to spend in operating expenses not more than fifteen per cent
of its receipts. For the year 1926-27 the "fifteen per cent fund,"
as it is commonly called, amounted to Gdes. 622,993.20 from internal
revenue receipts and to Gdes. 4.905.22 from interest on Series B bonds.
For the surplus in the internal revenue fund was also in part applied to
the purchase of securities of the Haitian state in order that such surplus
should not lie in the bank and be unproductive of interest.
Thus total receipts in the fifteen per cent fund were Gdes. 627,898.42,
a sum slightly larger than during the previous year. Current expenses
of Gdes. 302,713.49 were also slightly greater, but expenses carried over






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


from the previous fiscal year of Gdes. 3,595.19 were materially less than
the same item during 1925-26. As a result, total disbursements from the
internal revenue fund were Gdes. 306, 308.68, or practically identical with
total expenditures of Gdes. 304,198.76 during the anteceding year. As
available funds for expenditures were slightly greater, it also follows
that the unexpended balance of Gdes. 321,589.74 was moderately greater
than the similar balance of Gdes. 319,408.83 during 1925-26. All of the
datq in question may be found in table No. 32.

TABLE No. 32
OPERATING ALLOWANCE OF INTERNAL REVENUE SERVICE

Fifteen per Interest Expenses
cent of nt t Total Current from Total Surpl
Year internal onseries receipts expenses previous Expenses
revenues year

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
August and
September, 1924 ..... 110,195.90 ............. 1z ,195.90 75,254.27 ....... 75.254.27 34,941.63
1924-25 ............. 613,488.92 ............ 613.488.92 320,388.02 29.886.54 350,274.56 263,214.36
1925-26 ............. 623,607.59 ........... 623,607.59 273.904.56 30,294.20 304,198.76 319,408.83
1926-27 ........... 622,993.20 4.905.22 627.898.42 302.713.49 3,595.19 306.308.68 321.589.74


In table No. 33 the costs of the Internal Revenue Service are segregated
in accordance with objects of expenditure from its inception as a department
of the General Receiver's office. Salaries accounted for Gdes. 218,689.17
or 71.40 per cent of the total, and were moderately in excess of those
of the previous year. Materials and supplies cost little more than half as
much as in 1925-26; transportation was twice as expensive, largely due
to more adequate inspection of the outlying offices. Miscellaneous expenses
were sharply reduced.
Summarizing total disbursements in the form of ratios, it is found that
administration and operation of the Internal Revenue Service absorbed
6.38 per cent of revenues collected. As in the Customs Service, one per cent
must be paid as commission to the Banque Nationale de la R6publique
d'Haiti for its services as fiscal agent. Hence total costs were 7.38 per cent
of receipts, or slightly less than half of the fifteen per cent contemplated
by law. Furthermore, the percentage was closely analogous to that of the
previous year which was 7.32 per cent.
At the close of each fiscal year the unobligated balance in the fifteen per
cent fund reverts to the treasury as cash available for general purposes.
Refunds from the fifteen per cent account which the treasury has received
in such substantial measure for the last three fiscal years has materially
assisted in establishing the unobligated cash balance of the treasury at its
present satisfactory level.
There is no doubt, moreover, that as the responsibilities of the Internal
















TABLE No. 3

COSTs OF INTERNAL REVENUE SERVICE, BY OBJECTS OF EXPENDITURE,
FISCAL YEARS 1923-24 TO 1926-27


Administration and Operation Cost per Gourde Collected

Materials T Bank Adminis- Ban
Salaries Miscllaneou Commision Total traction Commissin Total
supplies and operation

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
August and September, 1924 36,518.54 31,285.55 1,463.74 5,986.44 ................ 75.254.27 .0to 4 ............... .024
1924-25 .......... ...... 208,655.92 26,196.65 12,414.39 54,761.94 48,245.66 350,274.56 .0739 .0117 .0856
19a5.26 ... ............. 191,084.2 41,059.28 6,775.04 23,728.47 41.551.70 304,198.76 .0632 .0100 .0732
926-27 .................... 18,689.17 23748.29 13.83141 8,506.93 41.532.88 306,308.68 .0638 .o0 oo .0738






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


Revenue Service are increased by the institution of such revenue measures
as a tax on land the percentage cost of operating the service should decline.
In the initial years of applying a land tax, however, there will be non-
recurrent expenses for surveys and for adjudication and registration of
titles. Therefore it would not be judicious to diminish the operating al-
lowance of the Internal Revenue Service at the present time. The entire
amount may be needed in the course of placing a land tax in operation,
though after it is once in effect there should be no necessity of allowing
to the Internal Revenue Service a substantially greater margin for ex-
penditures than experience has shown to be necessary. Human nature can-
not always be relied upon to effect necessary economies when the oppor-
tunity is present for extravagance. There is no assurance that more than
half of the amount available for the support of the Internal Revenue Serv-
ice would as in the past be permanently returned to the treasury, even if
this were possible.

Customs Receipts
Table No. 34 is one of the most important presented in the present
report. It visualizes the vicissitudes of Haitian finances from 1889-90 to
the present. It illustrates the extreme variation in the income enjoyed by
the government. It also demonstrates that both stability and progress
have characterized Haitian finances since the conclusion of the treaty with
the United States.
For years prior to the stabilization of Haitian currency on the basis of
five gourdes for one dollar, United States currency, the statistics in table
No. 34 have been reduced to a comparable basis. Monthly exchange rates
were computed, these were assembled in yearly averages and such averages
were applied to governmental receipts in Haitian currency. Accordingly, for
practical purposes it may be considered that the governmental income from
1889-90 to date is reflected in terms of present-day Haitian currency. To
be sure, no attempt has been made to take account of the purchasing power
of the currency unit, which has also fluctuated widely during the period
under consideration. All that can be studied is the number of gourdes
reaching the Haitian treasury, together with the sources from which such
income was received.
Total receipts during 1926-27 were Gdes. 38,861,534.79. This was a
decline of 14.34 per cent from Gdes. 45,364,648.10 which were received in
the preceding fiscal year. The latter, however, were by far the largest in
the history of the republic. Furthermore, total receipts during 1926-27
were slightly inferior to those of 1924-25 and of 1890-91. With these ex-
ceptions total receipts were greater than during the previous years. There
is no reason for not admitting that a government, like an individual or a
corporation, is gratified to see its income expand from year to year. Re-
cession of total receipts during the year under discussion must therefore








TABLE No. 34

REVENUES OF HAITI, BY SOURCES* FISCAL YEARS 1889-go TO 1926-27


Year





889-90 .......... ...... ........ .
1890-91 .................. ........
1891-92 ................ ............
1892-93 ................... ........
1893-94 ................... ........
1894-95 ................... ... .. .
1895-96 ............. ..... .........
1896-9 7 ................. ...... .....
1897-98 ............... .. ......... i.
1898-99....................
1899-o0 .............. ..........
19goo-o l............................
1901-02 ............... .........
1902- 3 ............ ..... ..........
1903-o4 ................... ........
1904- 5 ................... .........
1905-o6 ................. ..........
igo6-o 7 ... .... ..................
o907-o 8 .... ........ .............
o908- ......... ................
1909o-o..........................
1910-11 ..........................
1911-12 .............. ........
1912-I3 .3.......... ...........
19 13-14 .......... ...... ........
1914-15 ... ....... .. ........
19 15-16 ........ .................
1916-17.. ......... .. ........
1917-18............ ...... ....
1918-19 ......... .... ............
19 19-2 0 ............ .... ...........
1920-21 ............. .......
1921-22 .......... ... ..........
1922-23 ............................
1923-24 ............ ..... ..........
1924 -25 ..... .................... ...
1925-26 ............... ........
19 26-27 ........................ .


Imports


Gourdes












.............65 ..334..70












15,176.348.80
0.,637,856.40
8,668,408.45
12,970.092.55
9.736,057.28
7,784,253.80
S2,264,105.8o
18.898.013.74
9.816,687.88
13,247.038.18
16,815 ,Soo17
19,415.707.84
23,452,328.71
26,169,o088.58
23,572,181.41


Customs receipts


Exports Miscellaneous


Gourdes Gourdes












f ............


19,814,908.75
10,280,2 11.40
13.413,711.10
6.441,318.45
9,201,376.30
8.473.752.35
7,331.366.55
16,503,370.20
13,143.137.45
8,184.194.70
o1,077,988.15
12,312,916.60
9.984.701.92
o0,617.525.63
12,660,447.87
10.015.913.41


262,538.80

5.897.52
13,665.10
13,6 1.90
31,877.91
29,982.42
41,543.37
64,169.58
550,497-38
1,68o,164.00
1,765,295.29
73,781.4I


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


Total


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























33,465,243.45
25,456,560.20
24,051,567.50
15.372.265.70
22,171,468.85
18,215,707.15
15,129,285.45
28,78 1,o87.90
32.073.029.10
18,o3o,865.oo
23,366,569.70
29,192,586.35
29,950,907.14
35.750,018I34
40,594.831.74
33,661,876.23


Internal
revenues


Gourdes
............ .I .........
.......... ............
. . .. .. .



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


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


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










912,014.55
670,522.20
706.,709.70
353,533-40
543,6Io.o5
717,005.60
911,203.40
1.159,974.00
1,886.174.99
1,897,171.70
1,508,246.77
2,699.443 24
2,795.870.53
4,089,926. I9
4,155,170.28
4.153,287.97


Miscellaneous
receipts


Gourdes
.. .........
.........'............
.....................
.......................
.......................
.......................
......................
............ ..........
.. ............


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



.. .. -..


1,971.95
7.901.90
14,871.55
38,246.70
18,059.00
17-979.25
58,071.65
155,543.66
647.722 47
614,646.o8
1,046,370.59


Total receipts




Gourdes
31,533,254.85
40,868,026.30
34.799,o16.95
34,880,361.45
33.853,640.75
34,917,258.60
28,047,666.65
30,665,202.15
23.753.709.25
19.467.977.35
24.416.719.00
21,986,480.60
18,834,716.35
17,5 17,062.85
20,087.928.90
13,741,365.95
i6,695,679.o0
I 1,977,500.00
o10524,189.40
15,044,393.45
3,o014,530.50
20,520,595.90
34.377,258.0oo
26,127,082.40
24,758,277.20
15.725.799.10
22,715,078.9o
18,934,684.70
16.048,390.75
29,955.933.45
33 997.450.79
19,946,095.70
24.964,795.72
31,950.101.24
32,902,321.33
40,487,667.00
45.364,648.10
38,861,534.79






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


be regarded with no great enthusiasm. On the other hand, financial ex-
perience is to the effect that uninterrupted progress never occurs, and par-
ticularly abnormal advances, such as took place in Haiti during 1924-25
and 1925-26, can only be followed by recessions which cannot be less than
moderate and may be drastic. A decline of 14.34 per cent from the maxi-
mum of governmental receipts cannot be regarded with alarm, particularly
as the financial outlook for 1927-28 is reasonably encouraging.
Customs receipts for t916-17 which was the first full year of American
participation in the administration of Haitian finances were Gdes. 18,215,
707.15. Such receipts have therefore increased by 84.80 per cent in order
to arrive at the total of Gdes. 33,661,876.23 in 1926-27. For the eleven-year
period this is an average expansion of 7.71 per cent per annum. There can
be no doubt that progress of this magnitude is the best indication of order-
ly procedure in administering the Customs Service and of systematic de-
velopment in the economic life of I laiti. These receipts were distributed
among imports, exports and miscellaneous sources as follows:

Imports ...................... ........ Gdes. 23,572,181.41
Exports ................................ 0,015,913.41
M miscellaneous ...................... 73,781.41
Total ............................ Gdes. 33,661,876.23

As compared with the immediately preceding year receipts from imports
declined by Gdes. 2,596,907.17 or 9.92 per cent. This was due to two causes.
In the first place, relative dullness characterized the import trade for the
year in question as demonstrated by the pronounced decline in the value
of imported commodities. In the second place, numerous commodities en-
tering Haiti are taxed upon an ad valorem basis, with the result that cus-
toms receipts on such articles decline proportionately with price levels of
those commodities. During 1926-27 the prices of many leading imports into
Haiti were decidedly lower than during preceding years. There is no pos-
sibility of determining the exact degree to which this phenomenon affected
customs receipts, but there is also no doubt that its effect was substantial.
In the export schedules, governmental receipts declined from Gdes.
12,660,447.87 to Gdes. 10,015,913.41. This constituted a decrease of 20.89
per cent. For such diminution there is but one explanation, namely, a de-
clining volume of exported commodities which are subject to duty. As re-
gards exports all duties are on a specific basis, with the result that the in-
come of the government varies in exact proportion with the volume of tax-
able exports. Perhaps one refinement to this statement should be made.
On coffee, cacao and logwood Haitian export taxes represent a consid-
erable proportion of the market value of the articles on which they
are levied. Other exports are taxed at a very low rate. Consequently, there
is considerable difference to governmental receipts whether an increase
or decrease of exports occurs in the groups which are taxed at relatively






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


high rates, as contrasted with those taxed at nominal rates. As a I:matter
of fact, the decline in the volume of exports during 1926-27 principally
occurred in connection with coffee, cacao and logwood, the very articles
which constitute the principal sources of export receipts. On the contrary,
there was moderate increase in the volume of exports for other articles
which are not subject to substantial export taxes.
There is the temptation to argue that the foregoing statistics are suf-
ficient evidence that burdensome export taxes tend to diminish the vol-
ume of exports of commodities on which they are placed. As this office is
not an advocate of export taxes, such a contention is tempting. But inti-
mate knowledge of methods of production in Haiti would not support such
a conclusion. Both coffee and cacao are grown in Haiti without much at-
tention or cultivation. Higher or lower yields are more a matter of provi-
dence than the result of human foresight and effort. It happened that the
coffee trees failed in 1926-27 to yield as heavily as during the previous
year. No evidence exists that a diminution or abolition of export taxes on
coffee would have affected exports for the year in question.
At once the thought is suggested that relieving coffee from present fis-
cal contributions would over a period of years tend to encourage produc-
tion. This is theoretically true, but when applied to Haiti can be accepted
only with misgiving. In other countries there would be no doubt of its ac-
curacy. Although Haiti is one of the world's largest exporters of coffee
there cannot be found in the republic a single systematic coffee plantation.
On the contrary, the substantial production of this crop is distributed
among small and badly cultivated patches. In short, coffee grows in a
manner not far removed from the wild state.
During recent years coffee has been selling at extremely attractive prices.
compared with those which were current before the European war. Never-
theless, these attractive prices have failed to stimulate the peasants of Haiti
to increase their production of coffee, though abundance of land is avail-
able for such purpose, and other natural conditions are favorable. Evidence
is plentiful that the Haitian peasants merely pick such coffee as nature pro-
vides when the price is low and do the same thing when prices are above
the average. In the former case there is no abandonment of such minimum
cultivation of coffee as has traditionally been in vogue, and in the latter
case there is little impetus toward planting additional areas or of attempt-
ing to improve the yield or quality of coffee already in production.
By reason of the fact that customs duties were unified by the new tariff
act of July 26, 1926, miscellaneous customs receipts have declined almost
to the vanishing point. From Gdes. 1,765,295.29 in I925-26 they shrank to
Gdes. 73,781.41 in 1926-27. This latter sum was principally composed of
receipts from tonnage dues. pilotage fees, sanitary charges, lighthouse fees,
storage of merchandise in custom-houses and navigation taxes.
There is no doubt that both importers and the government have bene-






54 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

fited materially from simplification of customs procedure. Instead of some
twenty charges which formerly were imposable on a vessel or its cargo the
list has now been reduced to ten, and most of the latter have no general
application. Two only are now important, storage charges on merchandise
in custom-houses and navigation taxes imposed on foreign vessels engaged
in coastwise traffic. A merchant can quickly and accurately compute the
cost of laying merchandise down in Haiti, including all customs charges.
In fact the principal source of error in making comparisons between the
fiscal effects of the previous and existing tariffs is based on failure to
include some or many of the various surtaxes or miscellaneous charges
with which merchandise entering Haiti was formerly burdened. Only per-
sons with specialized knowledge were competent to arrive at accurate con-
clusions as to the total amounts which merchandise or vessels entering
Haiti might be called upon to pay. Under the existing tariff no special
knowledge of customs procedure is required to arrive at a sound opinion
relative to the cost of importing any ordinary commodity into Haiti.
No doubt can be entertained that total customs charges on either imports
or exports should be unified in one easily understandable rate. Not only
is administration more simple but far less opportunities exist for subter-
fuge and collusion. Therefore it is the expectation of this office that
miscellaneous customs receipts will in future years continue to occupy
an unimportant position in revenue arrangements, in contrast with the
constantly increasing significance of this item from 1916-17 to 1926-27,
inclusive.
During the closing months of 1925-26 a thorough-going revision of
the customs tariff was put into effect. While the proposed tariff was being
considered there were many predictions that the suggested rates on imports
would enormously increase the fiscal burden of Haitian consumers. Alleged
authorities even presented computations to show that the burden would
be double that imposed by the tariff of 1905. There is considerable inter-
est, therefore, in comparing actuality with prophecy.
In table No. 35 are collected for the years of the receivership the value
of imports and of exports and duties collected on both imports and exports.
Finally, the several series are converted into percentages in order to show
the fiscal burden imposed by the customs tariffs of Haiti. During 1926-27
duties of Gdes. 23,572,181.41 were collected on imports valued at Gdes.
78,756,600.00. Thus 29.93 per cent of such imports were absorbed as cus-
toms receipts. The entire year 1926-27 was under the operation of the new
tariff. For 1925-26 the similar percentage, largely under the old tariff,
was 29.50 per cent.
Thus there was an apparent increase in import charges of 1.46 per cent.
Two qualifications are necessary properly to understand this merely nom-
inal increase. In the first place, merchandise imported for government
account now pays regular customs duties, whereas under the old tariff







HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


TABLE No. 35
RELATION BETWEEN IMPORT AND EXPORT VALUES AND CUSTOMS RECEIPTS,
FISCAL YEARS 1916-17 TO 1926-27

Imports Exports
Year
Value Duty Per cent Value Duty Per cent

Gourdes Gourdes Per cent Gourdes Gourdes Per cen,
1916-17.............. 43,030,428 9,741.954.80 22.64 44,664,428 8,473.752.35 r8.97
1917-18... ............ 50,903,468 7.797,918.90 15.32 38,717,650 7,331,366.55 18.93
1918-19............... 85.588,041 12,277,717.70 14.35 12381 ,o096 16,5o3,370.20 13-33
919-2 ............... 136992,055 18,929,891.65 13,82 108,104,639 13,1'43,137.45 12.16
1920- I................ 59,786,029 9,846,670.30 16.47 32,9520,45 8, 84,194.70 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,o6o 12.3129.16.60 16.88
1923-24................ 73,480,640 19,966,205.22 .7.17 70,88r,610 9.S34,701 92 14.09
1924-25................ 101187,825 25.132,492.71 24.84 97,018,810 1O.61/.525.63 10.95
1925-26................ 94,257.030 27,808,486.25 29.50 101,241.025 12,660,447.87 r2.51
1926-27 ............... 78.756.600 23.572,181.41 29.93 76,495,442 10,015.91 ).41 3.09
Average................ 77,865,753 16.840,160.93 21.63 74,582,078 o0,848.342.26 14.55


such importations were exempt. Secondly, the comparison is only accurate
if other classes of merchandise not subject to duty are also deducted in
each year for which comparison is made. So the prediction of this office
that fiscal burdens under the old and new tariffs would be substantially
equivalent has been amply fulfilled in fact. Indeed if importations exempt
from duty be deducted from the value of imports in both 1925-26 and
1926-27, customs receipts from imports amounted to 30.75 per cent in
1925-26 and to 30.82 per cent in 1926-27, which is virtual equality.

Unit prices for many staple imports of Haiti declined during 1926-27.
If adjustment for this factor be made, there is every reason to believe
that the fiscal burden of the new tariff is slightly less heavy than the old.
Furthermore, during the earlier months of 1926-27 customs duties consti-
tuted a larger percentage of the value of imports than for the later months,
thus indicating that the fiscal burden of the tariff was tending to decline.

Since export taxes are all assessed on a specific basis and therefore
have no relation to unit prices of exported merchandise it follows that
declining price levels are reflected in an increasing percentage which
export duties constitute of the value of exported commodities. As is well
known, unit prices of Haiti's principal crops declined during 1926-27.
Therefore an increase in the percentage which export receipts comprised
of the value of exports was to le expected. From 12.51 per cent in 1925-26
the ratio rose to 13.09 per cent in 1926-27. This compares with an average
of 14.55 per cent from 1916-17 to 1926-27, inclusive.
Actual receipts from export taxes were Gdes. 10,015,913.41, and these
were also moderately smaller than the average of Gdes. 10,848,392.26 for
the receivership period. In contrast, export values of Gdes. 76.495,442.00
were somewhat in excess of the average for the same period of Gdes.
74,582,078oo.0 This forces one conclusion, namely, that the volume of Hai-






56 HAITI: REPORT OF FINANCIAL ADVISEk--GENERAL RECEIVER

tian exports has increased whereas the unit value of exported commodities
has shown a declining tendency.
Fiscal burdens imposed by Haiti on imports and exports are admittedly
heavy. This office does not believe that either import or export taxes
should be increased. On the contrary, relief to both producers of com-
modities for export and consumers of imported merchandise should be ac-
corded as soon as adequate internal revenues are developed. Particularly
in the case of exports there is difficulty for Haitian producers to hold their
place in the world market so long as they have to pay export taxes, while
their competitors are not faced with similar fiscal burdens. As stated else-
where, the commodities chiefly affected are coffee, cacao and logwood,
although less important export taxes are levied on all merchandise for-
warded from Haiti.
Foreign commerce in Haiti follows a rather distinct periodicity. As a
result, customs receipts also fluctuate widely between various months of
the fiscal year. For the purpose of illustrating the seasonal tendencies of
customs receipts table No. 36 was prepared. During 1926-27 the month of
greatest collections was December, which returned Gdes. 3,923,268.01.
This compares with lowest receipts during July, which were Gdes. 2,o91,
505.76. Thus the spread was 87.58 per cent.
TABLE No. 36
CUSTOMS RECEIPTS. BY MONTHS
FISCAL YEARS 1916-17 TO 1926-27

Average Average Average
Month 1916-17 to 1921-22 to 1925-26 1926-27 1916-17 to
1920-21 1925-26 1926-27

Gourdes Gourdes Gourdes Gourdes Gourdes
October ............. ...... 1518,p 26.o8 3 037.492.87 4.416,779.02 3.770,458.42 2,413,868.47
November .............. ... .8. 13,232.97 3.538.557-92 4,693,002.47 3,534,435.74 2.753,944.56
December ................... 2,195,593.43 3854.936.o7 5,012.369.58 3.923.268.01 3.106.901.41
January .................... 2.308,150.90 3.214,619.05 3,667.244.92 2,966.878.06 2,780,o66.16
February .............. 2,078,966.06 2,870.412.10 3.633,241.41 2,886,093.61 2.512.089.49
March ......... ...... .... 2,o77,327.60 2,968,218.94 3.565.430.99 2.949.459.94 2,561,562.97
April ........................ 109,6 6.72 2429,607.04 2,664.665.97 2,443,025.84 2285.372.24
May ......................... 1.763.034.48 2.140,627.99 2,695,871.80 2.246.828.72 1,978.649.19
June ......................... 942,219.96 1.871.308.14 2.330,906.59 2.149.413.19 1.928.823.06
July .......................... ,444,162.30 1.743.104.o7 2,657.772.01 2.091.505.76 1,638.894.33
August ..............1...... .,610.259.38 1.8o6.235.o6 2.286.530.28 2,184,434.62 1,751,536.98
September ................ .1.569.o5o.83 2,295,863.38 2.971,016.70 2.516.074.32 1.985.513.21
Total .............. 22.430.530.71 31.770.982.63 40,594,831.74 33,661,876.23 27.697.222.07

Little further evidence is necessary to indicate that under such circum-
stances the financing of governmental operations has to be calculated on
a basis of widely fluctuating monthly income, as contrasted with approxi-
mately uniform monthly expenditures. Even the latter statement should
be clarified by the fact that payments against the public debt, both as
concerns interest and principal, tend to be concentrated during the first
month of the fiscal year and during one or two additional months when
market fund operations are conducted. It also happens that October,
which is ordinarily the month of greatest governmental expenditures,






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


immediately follows the months of smallest treasury receipts. This is
somewhat inconvenient, as it necessitates carrying unnecessarily large cash
balances for considerable periods in order promptly to meet the heavy
financial requirements of October.
In so far as concerns the periodicity of receipts, the year 1926-27 was
quite similar to previous financial experience. Both for the year in question
and for the entire period of the customs receivership December has been
the month of highest customs revenue and July the month of lowest
customs receipts. However, for the entire period January is the second
month in importance, whereas in 1926-27 customs receipts in January were
substantially exceeded by those of October and November. Moreover, the
next to the lowest month for customs revenues is usually August, whereas
that month in 1926-27 was June.
Due to promising receipts during the first three months of the fiscal year,
there was some reason to believe that the entire fiscal period would make
a better showing than was actually the case. But sharp declines in customs
receipts as compared with the two previous years began to characterize
the months subsequent to December. Therefore the encouraging beginning
was soon superseded by increasing evidence that smaller yields and lower
prices for some of the most important Haitian products were going to cause
customs receipts in 1926-27 to fall materially below immediately preceding
levels. Such miscalculation as may have occurred was due to the fact that
the coffee crop of 1926-27 came upon the market several weeks in advance
of normal expectations. This fact favorably influenced export receipts
during the early months of the fiscal period and also caused importers to
overestimate the probable demand for merchandise. As a result, there was
the usual excess of imports in the fall, followed by dullness in the winter
and spring, the very period in which Haitian commerce is normally most
active.
There seems to be an inevitable tendency for Haitian importers to over-
load the market with merchandise at some season of the year. This phe-
nomenon has occurred annually for many years, though there have been
differences in the season in which the congestion of ,markets has taken
place. In a country of low per capital purchasing power, such as Haiti, it is
particularly difficult to liquidate inflated inventories even at substantial
price recessions. Furthermore, merchants in Haiti are not inclined to follow
modern practice in the matter of excessive inventories. Rather than absorb
an inventory loss they will for months maintain their supplies of old and
shop-worn materials, and even at times gradually increase the price of
such merchandise by the amount of accumulated carrying charges. There
results a struggle of attrition between merchants who are unwilling to move
redundant stocks by means of price concessions' and consumers who re-
luctantly purchase shelf-worn merchandise as more acceptable articles
become unavailable. Unfortunately, when the foregoing process is complete






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


and liquidation has finally absorbed the surplus, there is the tendency to
overpurchase and to bring about difficulties similar to those from which
the commercial community had just emerged.
Both local and foreign banks and foreign exporters must in part share
the responsibility for the foregoing conditions. Credits are not sufficiently
scrutinized, and it therefore may occur that an irresponsible merchant, al-
though unable to obtain large credits from a given bank or exporter, finds
it possible to aggregate a series of small credits from various banks and
exporters until the total becomes surprisingly large. Sound business prac-
tice dictates that credits in favor of a merchant should not exceed ioo per
cent of the capital of the merchant in his own enterprise. In short, the
creditor should be protected by the capital of the borrower in an amount
which in no case should be less than the sum borrowed. However, in Haiti
there are instances where merchants have been able to borrow ten and even
twenty times the amount of their own capital. Provided business is active.
this enables such merchants to obtain abnormal profits from their own
capital commitments, and therefore there is a natural tendency for less re-
sponsible merchants to adopt the practice, provided they can induce
bankers or merchandising houses to extend excessive credits.
With the arrival of business difficulties of any character, those merchants
who have but a small stake in their business as compared with the com-
mitments of their creditors, are inclined to let matters take their course, as
they are usually able to salvage most if not all of their own capital, leaving
losses to be absorbed by their creditors.
Probably the foregoing condition is in large measure responsible for the
periodic accumulation of excessive inventories in Haiti, which are invariably
followed by stagnation, bankruptcies and considerable credit losses. Un-
doubtedly the most effective remedy for such a situation would be the re-
quirement on the part of lenders, whether bankers or foreign exporters, that
the borrower submit a financial statement acceptable to the local banks,
which may be presumed to have accurate credit information regarding the
commercial community, before any credit whatever should be extended.
Under such circumstances it would be possible for the bank or export house
not only to compare its own prospective commitment with the capital and
prospects of the proposed borrower but it would also know what other
financial obligations of the borrower would be outstanding.
Moreover, it is the opinion of this office that the extension of credits
should be left to local banks and that financing should not be arranged
in large measure either by foreign banks or by merchandising concerns.
The latter in particular are inclined to accord unjustifiable advances.
The economies of mass production combined with continuous output
are so great that manufacturers are tempted to accept certain credit risks
to the end of filling their order books. They argue rather plausibly that
the possible loss through badly secured credits will probably be less than






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


from diminished production or shutdown of their plants. From the poilit
of view of the manufacturer this may be good business. But it has an
unfortunate effect upon sound merchandising in such a country as Haiti.
Due to various historical causes, Haitian importers are far too ready to
borrow money and pay too little attention to their ability to meet financial
obligations. Such a condition would be overcome by adoption of a credit
policy which would not permit a merchant to borrow total amounts in excess
of his own unimpaired capital. With this arrangement excessive inventories
would become more difficult, and the commercial community would also
become more responsible, as losses to creditors could hardly take place
without corresponding losses to the borrower.
Table No. 37 differentiates customs receipts in accordance with ports.

TABLE No. 37
CUSTOMS RECEIPTS, BY PORTS
FISCAL YEARS 1916-17 TO 1926-27

Average Average Average
Port 1916-17 1921-22 1925-26 926-2791617
to to to
1920-21 1925-26 1926-27

Gourdes Gourdes Gourdes Gourdes Gourdes
Aquin ............ 124,805.62 222,392.84 180,928.53 113,122.24 168,1o1.32
Belladire ......... 3,28o.13 653.80 1,485.86 13,458.33 3,011.63
Cap Haitien ..... 3,179,095.89 3,646.227.43 5,098.458.19 3,254,525.83 3.398,285.68
Cayes ............ 1,910,474.91 3,205,206.2o 3,603,179.70 3.408,107.55 2,635,137.55
Fort Liberti ..... 62,108.75 14,532.22 .......... ....... 30,291.35
Glore ............ 501.73 915.20 1.553.49 3,553.51 967.1
Gonaves ......... 1,372,395.15 1,762,959.97 1,913,612.80 1,668,692.47 1,576,860.73
Jacmel ........... 2,076,404.15 2.858,299.20 3.562,383.43 2,973,165.49 2,513.334-75
Jr ie ......... 925.743.72 1,119,908.59 2,043,194.41 1,365,664.38 1,o53,993.26
Miragoane ....... 275,744.34 559,994.05 584,132.72 705.299.97 443,999.27
Ouanaminthe .... 10,260.12 7,336.32 14,229.77 12,516.45 9,136.24
Petit Goave....... 1,221,660.24 2,160,650.50 2,718,263.98 2,147.929.25 1.732,680.27
Port an Prince... 9,540.425.27 13,823.939.29 I7.746.o65.95 15,698,321.56 12.047,285.85
Port de Paix .... 925,723.20 1,252,298.94 1.797,636.I5 1,123,445.51 1.092,141.47
Saint Marc... .... 799,520.56 1,135,668.10 1,329,706.76 1,"174,073.69 986,365.18
Total 22,428.143.78 31,77o,982.65 40,594,831.74 33,661,876.23 27,691,591.66


Analysis of the data in this table is quite instructive. For the fiscal year
1926-27 the only custom-houses which returned larger customs collections
than during 1925-26 were Belladere, Glore and Miragoane all minor
ports. In the case of practically all of the other districts the decline in
customs receipts was material, amounting to 37.50 per cent for Port de
Paix, 37.48 per cent for Aquin and 36.17 per cent for Cap Haitien. The
average decline for the combined ports was 17.08 per cent.
When comparison is made with the eleven elapsed years of the receiv-
ership, however, the situation assumes a less discouraging aspect. For in
this case a decline below the average was only discovered in the returns
for Aquin and Cap Haitien, and the decline for Cap Haitien was only 4.23
per cent. That for Aquin is explained by the fact that ocean-going steamers
have decided to omit it as a port of call. Customs receipts of Gdes. 33,661,
876.23 for 1926-27 were 21.56 per cent in excess of average receipts of






60 ENTERED AND CLEARED, BY REGISTRY AND MONTHS,

Gdes. 27,691,591.66 for 1916-17 to 1926-27, inclusive. Considering the
ports separately, most progress can be noted at J&6rmie, Miragoane, Petit
Goave, Port au Prince and St. Marc. There are reasons for believing that
in subsequent years Cap Haitien will also be added to the ports in which
progress can be reported for imports and exports.
Port au Prince continued to dominate Haitian foreign commerce as
evidenced by customs collections at that port which constituted 46.64 per
cent of the total, compared with 43.71 per cent during 1925-26. Thus its
relative importance increased. This in itself is not desirable, as there
already tends to be undue concentration of political and economic life at
the capital, and initiative and enterprise seriously need to be developed in
other portions of the republic. Natural resources, at present undeveloped,
are available to practically each one of the Haitian ports. Labor power
is also on hand, and the only things that appear to be lacking are capital
and management. Such promising possibilities of development are to be
found in each of the districts tributary to the several Haitian ports that
it would be difficult to suggest which one offers the most attractions.
Nevertheless, actual developments are in contemplation or in progress only
in the districts which are tributary to Cap Haitien, Ouanaminthe and St.
Marc.
As the recession of customs receipts in the principal ports was more or
less uniform, there arises the supposition that such decline was due to
general causes rather than phenomena peculiar to each of the regions
affected. In fact, as means of communication are gradually being extended
there is less tendency toward variation among the several ports and the
districts tributary to them. The days are not likely to return when in the
various towns of the republic there might be a differential of more than
fifty per cent in the prices at which similar articles were purchased or sold.
Increasing uniformity in price schedules is distinctly to the advantage of
producers and consumers alike.
Of equal interest and importance with the distribution of customs receipts
by ports is that in accordance with sources. With the data assembled in
table No. 38 it becomes possible to determine which are the principal
producing areas of Haiti and which are the primary centers of consumption.
As import and miscellaneous receipts constituted 70.25 per cent of total
customs receipts as contrasted with 29.75 per cent for exports, it follows
that any port which returned a larger percentage than the average for
either import or export receipts should be classified. other things being
equal, as a port of import or of export. Applying this rule of thumb method,
it is discovered that exports tended to exceed what might be denominated
as the normal expectation at Aquin, Gonaives, Jacmel, Jeremie, Miragoane,
Petit Goave, Port de Paix and St. Marc. while only the two ports of
Cayes and Port au Prince may properly be designated as import points.
As might be expected, Port au Prince is by far the most important import







HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


TABLE No. 38

CUSTOMS RECEIPTS, BY SOURCES AND PORTS

FISCAL YEAR 1926-27


Port Imports


Gourdes
Aquin ........................ 7,315.19
Belladire ..................... 13,189.21
Cap Haitien ................. 2,1 12,376.17
Cayes ......................... 2,404,278.21
Glore ................. ... .. 3,468.31
Gonalves ..................... 968,824.85
Jacm el .............. .... ... 1,411 0, 45.02
Jerim ie .................... .. 694,092.97
Miragoane .................... 371,927.34
Ouanaminthe ........ 11931.23
Petit Goave.................. 665,64.51
Port au Prince................ 13.603,100o.3
Port de Paix ................ 589,950.73
Saint Marc.................... 715517.54

Total ............... 23,572,181.41


Exports


Gourdes
105,218.18
103.77
1.138.633.95
999,530.17
85.20
695,639.64
1,557.412.48
667,136.59
33o03o6.86
.247.22
1,477,994.85
2.059,239.o6
531,164.22
453.20122
O,015.9gr3.41


Miscellaneous


Gourdes
588.87
165.35
3,515.71
4,299.17

4,227.98
4,707.99
4.434-82
3,.65.77
338.00
4.769.89
35.982.37
2,330.56
5.354 93

73.781.41


center. The requirements of the capital are such that a considerable con-

suming population is inevitable and is probably desirable. Furthermore, a

considerable fraction of the import receipts which are credited to Port au

Prince should properly be allocated to other districts. This is due to two

principal causes. In the first place, one important steamship line makes
but one port of call in Haiti, namely, Port au Prince. Other lines also tend

to concentrate their attention on the capital, although not to the same extent.

Secondly, government supplies, though destined for the outlying districts,

are commonly imported through Port au Prince and pay duties at that port.

Another instructive distribution of customs receipts is by months as well
as by sources. Requisite data are found in table No. 39. Although there

is considerable fluctuation in import receipts from month to month, the

difference between the lowest receipts of the year. February, and those of


TABLE No. 39

CUSTOMS RECEIPTS, BY SOURCES AND BY MONTHS.
FISCAL YEAR 1926-27


Month Imports Exports


Gourder Gourdes
October, 1926 ........ 2.644.849.57 1, 18,874.28
November ..... ... ....... 2333.531.o01 x193,678.27
December ................... 2,243.126.46 1,671,624.97
January 1927 ............ 1,713,108.29 1,248.417.97
February ................... .1597.592.08 1.28o,891.74
March .......... 1,797,197.87 1,146.739.55
April ........................ 1.627.396.33 808.885.95
M ay ......... : ............... 1.737.055.o6 504,408.97
June ................ ........ 1,766,o069.07 378,6o01.15
July ......................... 1,821.987.32 265,517.41
August ...................... 2,026,o84.74 152.986.77
September .......... 2,264.183.61 245,286.38

Total 23.572,181.41 10.015,91 3.4E


Miscellaneous Total


Gourdes Gourdes
6,734.57 3.770,458.42
7,226.46 3,534.435 74
8,516.58 3.923.268.o
5.35 1.80 2,966,878.06
7,609.79 2,886.093.61
5,522.52 2.949.459 94
6.743-56 2,443,025.84
5,364.69 2.246,828 72
4,742.97 2.149.413.19
4,001.03 2,091.505.76
5,363. I1 2,184,434.62
6.604.33 2.516,074.32

73.781.41, 33,661,876.23


Total


Gourdes
113,122.24
13.458.33
3.254.525.83
3.408,107.55
3.553.51
1,668.692.47
2,973.165-49
1,365,664.38
705,299.97
12,516.45
2,147,929.25
15,698,32 1.56
1,123,445.51
1,174,073.69

33,661,876.23






62 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

the most productive month, October, was but 65.55 per cent. On the other
hand, export receipts amounted to but Gdes. 152,986.77 in August as
compared with Gdes. 1,671,624.97 in December, a variation of 992.66 per
cent.
Thus it is evident that one of Haiti's most pressing financial problems
is to increase export receipts during what is now called the "dead season."
This statement is, of course, subject to the understanding that export
receipts are not regarded as a desirable source of revenue for the govern-
ment. They have been in effect for numerous years, both before and
throughout the receivership. Unfortunately it has thus far been impracti-
cable to reduce or eliminate them.
With this reservation, it would be highly desirable to equalize export
traffic so that so far as possible receipts from this source should be evenly
distributed throughout the year. At present there is serious waste of labor
power, which continues over a period of several months. Many persons
in other countries are of the opinion that climatic conditions are such that
sustained labor is impossible in Haiti during the summer. Nothing could
be farther from the truth. Even among the foreign element there has been
practically no case of prostration from excessive heat, while the Haitians
themselves are apparently little affected by the undoubted warmth of the
Haitian summer.
Careful effort should therefore be devoted to the development of products
which would equalize employment throughout the year. In this connection
it should be remembered that Haiti is a small country and that the Haitians
are accustomed to travel for considerable distance in quest of employment.
There is little doubt, for example, that able-bodied men in the coffee
growing regions would be willing to accept work in other districts which
might be better adapted to crops which would require most attention in the
summer. Moreover, additional labor in the coffee gardens during what
is now known as the "dead season" would undoubtedly yield gratifying
results in the way of increased output and improved quality of coffee. There
is the further possibility of selecting additional crops which could be
successfully grown in the coffee regions, and there is no doubt whatever
that adequate unutilized land exists for wide extension of present coffee
production as well as for additional crops. Thus products which suggest
themselves as complementary to coffee, cotton and sugar, most labor on
which tends to be concentrated in the first part of the fiscal year, are sisal,
cassava, poultry, livestock, honey, rubber, tropical fruits, corn and rice.
Not only would progress in profitably utilizing the entire fiscal year
be of distinct advantage to the treasury, but it would undoubtedly tend to
discourage the active emigration of Haitians to Cuba and to the Dominican
Republic. For idleness during a considerable portion of the year is without
question one of the reasons why annual wages in Haiti are unattractive
and why per capital production and consumption are low.







IAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


Due to the fact that export taxes are on a specific basis the percentage
of total customs receipts derived from exports tends to decline with any
recession in the volume of exported commodities. During 1926-27 there
was pronounced diminution in Haiti's principal export commodity, coffee.
It was to be expected, therefore, that the ratio of receipts between imports
and exports would rise in favor of the former. Such was the case as evi-
denced in table No. 40. In fact the percentage of customs receipts from

TABLE No. 40
DISTRIBUTION OF CUSTOMS RECEIPTS,
FISCAL YEARS 1916-17 TO 1926-27

Receipts Receipt Miscel-
Year from from eos Total
imports exports cuoms

Per cent Per cent Per cent Per cent
1916-17 ........................ ... ......... ........ .... 53-45 46.52 .03 t0o.00
91g 7- 8 ...... ............. ..... ... .. ... .. .. 51.45 48 46 .09 1oo00
9t18- 9 ................................. ..................... 42.61 57-34 .05 .00.00
:919-20... .. ... ........... ........ .... ............ ....... ..... 58.92 40.98 .10 100.00
920-21 ....... ........... ......... .. ... 54-44 45-39 .17 o00.0
921-22 ... .......... ......... ............ 56.69 43.13 .18 oo.oo
1922-23 ............. ...... ................... ............ 57.60 42. 8 .22 100.00
923-24 .. ........... .......... .... ... .. 64.83 33.34 1.83 oo.oo0
1924-25 .......................... ........ .. ... 65.60 29-70 4.70 IOo.00
1925-26 ............. .. ........ ....... ... 64.46 31.19 4.35 100.o0
926-27 ................. .......... ................... ... 70.03 29 75 .22 1 oo.o
Average .................... ........... ........ 5945 39 5 1.40 100.00

exports fell to 29.75 per cent of the total, a figure practically identical with
the lowest percentage which has been reported during the receivership. In
contrast, the percentage of customs receipts which imports constituted rose
to a new high level of 70.03 per cent. This was partly due to the relative
decline in export receipts and partly to the fact that miscellaneous customs
receipts have now largely been absorbed in duties on imports.
Both Haitian and foreign commentators have often criticized the fiscal
system of Haiti because it includes a substantial income from export taxes.
As recently as 1918-19 export receipts composed 57.34 per cent of total
customs revenues and were also more than fifty per cent of the total income
of the government. Gradually this percentage has declined in spite of the
fact that no change has been made in the rate of export taxes. Such decline
therefore demonstrates either that the total value and volume of exports
have declined in comparison with imports or else that the proportion of
products on which export duties are moderate has increased at the expense
of those on which such charges are more onerous. The first alternative can
be rejected because there has been an approximate balance as between im-
ports and exports for a considerable number of years. The latter is the true
explanation, and is largely attributable to increased activity in the exporta-
tion of cotton and sugar. As other export crops are developed the tendency
just described will probably continue, as there is no intention on the part
of the Haitian government to add to the number of products which are
burdened with high export taxes.







64 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

Internal Revenue Receipts

Internal revenue receipts during 1926-27 were distinguished by close
approximation to those of the previous year, as shown in table No. 41.
In fact the total of Gdes. 4,153,287.97 was less than Gdes. 2,000 inferior
to similar receipts during 1925-26. For three years, indeed, there has been
variation in receipts from internal revenue sources of only 1.60 per cent.
Because of the pronounced decline of customs receipts and the sustained
level of the yield from internal taxes the latter constituted a considerably
greater proportion of total income of the government. The percentage
rose from 9.16 in 1925-26 to 10.69 in 1926-27. This is a development which
is keenly desired by the financial officers.

TABLE No. 41
INTERNAL REVENUE RECEIPTS, BY SOURCES,
FISCAL YEARS 1919-20 TO 1926-27

Average Average
Source 919-20 1924-25 1925-26 1926-27 1919-20
to to
1923-24 1926-27

Gourdes Gourdes Go Gourd Gourdes Gourdes
Circulation tax on bank notes .... .............. 34,615-93 53,827.22 21,142.80 13,698.24
Consular fees ........................ 81,728.11 152,914.40 157,080o30 8,798.05 105.724-34
Court fees .................... ....... 7,147.06 7.919.87 8,293.50 1,809.50 7,593.34
Diploma fees .................... ......... .. .. 574.75 2.650.00 127,984.45 629.28
Documentary recording fees .. .. 252,579.03 288,784.19 304,368.31 332,337.12 273,548,10
Emigration fees ...................... 239,884.20 945022.90 1,014012.50 960,933.75 514,997.78
Fines and penalties ................. 1,886.ot 24.770.82 4,222.25 5,309.00 5,466.51
Income tax ............................. 281,810.55 625,o86.64 503,202.81 533,757.96 383,886.18
Irrigation tax ........................ 6,995.21 8,543.14 11,027.95 0o,296.0o 8,105.40
Occupational tax on foreigners ...... 175,397.56 208,445.27 239,o62.51 245,150.50 196,128.53
Official gazette ....................... 1,071.90 1,220.20 1,025.00 960.00o 1,070.58
Sale of official publications ............ 344.35 355.25 12.oo 88.95
Patent and trade mark fees ........ 6,884.50 5,700.00 15,982.50 11,832.50 8,492.19
Post office box rentals ............ 7,521.62 11,348.90 12,129.25 12,529.26 9,201.94
Public auction fees .. ............... 5,095.12 1,463.34 2,612.o6 2,991.95 4,o67.87
Public land exchanges ............... 325.oo 450.00 96.87
Public land rentals ................... 74,668.37 177,919.02 191,390.71 213,851.77 119,562.92
Stamp receipts :
Bank checks ....................... 7,987.74 15,915.4o 18,280.30 18,737.00 11,608.92
Commercial account books .. ... 2,908.72 4,643.20 6,043.89 4,285.85 3,689.57
Documentary stamps ............... 185.179.25 371,795.54 403,171.62 368,841.38 258,713.10
Postage stamps .................. 1 28,547.82 195.755.00 197,485-43 210,119.85 155,762.42
Stamped paper .................... 107.518.78 55,620.51 52,565.15 65,301.25 88,885.10
Stock and bond tax ........... ...... 26,364.99 55,099.40 63,089.91 51,280.28 37,762.26
Telegraph and telephone service 176.774.07 541,1o3.31 580,979.77 574,002.81 322,494.52
Visas of manifests ................... 5,932.96 5,237.50 3680.oo00 1.95.00 4,962.34
Vital statistics fees ............ ... 33,208.69 94,034.03 90o531.14 78,949.43 53,694.76
W ater service ......................... 179,307.97 240.553.54 216,222.78 221,478.70 196,852.93
Miscellaneous .......................... 175,381.22 15495.04 1,553-17 69,049.71 120,376.52
Total ........................... 2 71,781.45 40,o89,926.19 4,155,170.28 4,153.287.97 2.907.161.46

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

A prominent American banking house recently prepared an elaborate
comparative compendium of the social-economic situation of the principal
countries of the world. Thirty-four countries were represented in the study,
and in only four did customs receipts exceed other forms of revenue. These
four countries were Cuba, the Dominican Republic, Haiti and Salvador. In
the case of Cuba and the Dominican Republic customs receipts were only
slightly greater than those from internal revenue. For Salvador customs
receipts constituted some two-thirds of the total, but in Haiti the treasury





HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


had the unenviable distinction of depending on customs receipts for almost
nine-tenths of its income. In short, it would appear that Haiti has one
of the worst balanced financial systems in the world.
For the thirty-four countries under consideration customs receipts aver-
age but 14 per cent of total governmental revenues, thus leaving 86 per
cent to be supplied by internal taxes and miscellaneous receipts. As customs
receipts are notoriously unstable the urgency of modifying the revenue
structure of Haiti is obvious. This office does not recommend, however,
that the proportion of revenue derived by the Haitian government from
customs sources should be reduced to the average of other countries. Con-
ditions in Haiti permit considerably larger dependence on customs receipts,
but they should not exceed fifty per cent of the total income of the govern-
ment. Undoubtedly the transition to a more acceptable basis will be a
matter of years, since the traditions of the Haitian population, as in most
Latin-American countries, are opposed to direct taxes, particularly to taxes
on landed property. Land, however, constitutes the principal source of
wealth in Haiti and should at the present stage of economic development
supply the principal resources of the treasury. Consequently, attention is
at present being devoted to the formulation of policies for expanding in-
ternal revenues by means of land taxes. In another portion of this report
the land problem of Haiti will be discussed more fully.
Many Haitian internal taxes return insignificant sums to the treasury.
During 1926-27 there were nine taxes, reported separately, on which treas-
ury receipts were less than Gdes. 10,000. Such receipts scarcely warrant the
expenses of collection and accounting, and many of them should either
be abolished or rendered productive. In fact the same reasoning applies
to other aspects of the internal revenue arrangements of Haiti. The per-
plexing diversity of present taxes, most of which yield but small amounts,
should be replaced by a few simple fiscal charges which are easily under-
stood, of general application and of substantial return.
No definite progress was made during 1926-27 toward extending the
taxes which should constitute a permanent internal revenue system. On
the contrary, most of the increases occurred in connection with services
rendered by the HIaitian government, such as municipal water supply,
telephone and telegraph and the post-office. Other items which were more
productive in 1926-27 than in the previous fiscal year were court fees,
documentary recording fees, fines and penalties, income taxes, occupational
taxes on foreigners, post-office box rentals, public auction fees, exchanges
ot state land, stamp charges on bank checks, docunientary stamps, stamped
paper and miscellaneous receipts. Those which represented a smaller yield
were circulation taxes on bank notes, consular fees, diploma fees, emi-
gration taxes, receipts from the official gazette, patent and trade mark
fees, stamp fees on commercial account books, stock and bond taxes, visa
fees for manifests and vital statistics fees.






66 HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER

Emigration fees continued to take first rank as a productive source of
internal revenue, accounting for 23.14 per cent of the total. This is obvi-
ously an undesirable and unstable form of governmental income, and steps
are under contemplation which may result in diminishing emigration of
Haitians laborers to neighboring countries, notably Cuba. Other forms of
internal revenue which yielded more than Gdes. 500,000 were telephone and
telegraph receipts and income taxes. The mere statement of this situation
is sufficient to indicate that the Internal Revenue Service is dissipating
its energy and should be relieved of the expensive necessity of administering
numerous unimportant revenues and given the opportunity of supervising
a modern tax system.
For the year 1926-27 internal revenues of Gdes. 4,153,287.97 were 42.86
per cent in excess of the average from 1919-20 to 1926-27, inclusive. Thus
the returns for the year in question made a relatively satisfactory showing,
except that in principle internal revenues should constitute a far more
important element in the public finance structure.

Miscellaneous Receipts

A customs service can collect duties only upon the amount of merchandise
imported and exported. An internal revenue service can only collect such
taxes as are authorized by law. Miscellaneous receipts, however, offer an
opportunity for a certain amount of financial ingenuity, and it is therefore
with undisguised pleasure that a total for 1926-27 of Gdes. 1,046,370.59
is reported, as shown in table No. 42. Such a total was 70.24 per cent
greater than during 1925-26 and 1,701.86 per cent in excess of the last
year before the present Financial Adviser-General Receiver assumed office.
Most of the sums credited to miscellaneous receipts were derived from
interest on governmental deposits. Not only were cash balances of the
Haitian treasury maintained in strong position throughout 1926-27, but

TABLE No. 42
MISCELLANEOUS RECEIPTS BY SOURCES AND BY MONTHS
FISCAL YEAR 1926-27

Interest on C n rsi
Month governmental Conern Miscellaneous Total
deposits

Gourdes Gourdes Gourdes Godres
October, 1926 ....................... 38.212.95 13,524.10 123-75 51.86o.80
November ............................ 26726.55 2667910 36.oo 53.441.65
December ......... ................ 49,1 10 40 19,693.95 84.588.00 153.392.35
January. 1927 .... ...... ..... 36455.2 18,498.30 5,048.25 6 oo00 .75
February ....... ..... ... ........ 56.983.6o ................ 5, 57.25 62,04o.85
M arch ................... .......... .. 34,427.10 37.843,40 156 77 72,427.27
April ...... ......................... 58.463.38 17.066.80 5,207.06 80.737.24
M ay .................................. 35.282.65 18,894.75 2o8.oo 54.385.40
June ................................... 63,052.33 x8,296.3o 58.07 81.406.70
July .................... .......... 140.424.70 31,326.85 12.70 l71.764.25
August ............................... 63.439.33 18,307.00 2,572.25 84.318.58
September ....................... .... 45.534.50 18,88l.oo 56.178.25 120.593 75
Total ................ ....... 648,112.69 239,011.55 159.246 35 ,o046.370 59





HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


the policy of investing a portion of such balances in the securities of the
Haitian state came more fully into effect. This resulted in interest credits
from both bank deposits and investments of Gdes. 648,112.69, in contrast
to receipts from the same sources in 1925-26 of Gdes. 378,431.oo. Thus
the increase was 71.26 per cent. There is the possibility that the liquid
resources of the government may not continue as large in subsequent
years as has been the case in the year under discussion. In such case the
interest item on governmental deposits will tend to decline, but experience
with carrying a moderate number of Haitian securities in the treasury as
assets has been so satisfactory that it might be judicious somewhat to
increase holdings of this character. At all events the incentive so to do
is strong, as a return of substantially six per cent is obtained on security
holdings, as compared with an average of two and one-half per cent on
deposits in New York and in contrast with no interest at all on deposits
in Haiti.
Of second importance in miscellaneous receipts were the proceeds from
conversion of French francs. These francs were received as interest on
funds which have been placed in escrow for repayment of the 1910 loan.
There is no present occasion to discuss the controversy between the Hai-
tian government and the holders of the 19Io loan. In substance it is that
the Haitian government borrowed "francs" and has made francs available
for repayment of the loan in accordance with its contractual obligations.
Certain of the bond holders, however, have pretended that payment should
be made in what they choose to call "gold francs."" French law does not
recognize any such currency unit, and on the contrary several decisions of
the French courts have held that notes of the Bank of France constitute
legal tender for all obligations expressed in francs.
Interest on the francs which are as yet unclaimed by holders of the 191o
loan is converted each month into dollars and accounted for as miscellane-
ous receipts. Obviously, as holders of the 190o loan become weary in wait-
ing for payment in "gold francs," which payment is not likely to be made,
and accept payment in accordance with the terms of the obligation which
Haiti assumed in the loan contract for these bonds the deposit of francs
will diminish and entail a proportional diminution of interest receipts. It
should be noted that the substantial recovery in the gold value of the franc
during 1926-27 has also increased the sums realized by the Haitian treasury
on interest from the franc account.
From the various items of miscellaneous receipts which are not readily
classifiable the Haitian government realized Gdes. 159,246.35 during 1926-
27. Of this amount Gdes. 131.oo2.75 proceeded from a payment to the
Haitian state by the Compagnie Francaise des Cables Tel6graphiques for
cable equipment which reverted to the state at the termination of the
contract with the company and which was thereupon :;old to the company.
Obviously such an item is non-recurrent.







OI HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


Non-revenue Receipts

Again during 1926-27 non-revenue receipts were unimportant, amount-
ing to Gdes. 3,988.oo. These sums principally consisted of deposits by nota-
ries.
A summary of all receipts of the Haitian government, segregated by col-
lection districts, and by months is found in tables Nos. 43 and 44. Of par-
ticular significance is the fact that the one district of Port au Prince
accounted for Gdes. 19,547,211.78 out of revenue receipts of Gdes.

38,861,534.79, or practically one half of the total. An unbalanced situation
is therefore apparent. There are, to be sure, certain reasons why the capi-
tal or principal city of a country tends toward concentration of both re-
ceipts and expenditures in that place. But Port au Prince does not represent

50.30 per cent of the financial power or economic importance of the republic
of Haiti. On the contrary, there is considerable evidence that undue em-
phasis has been given to developments in the district of Port au Prince
with the resulting relative neglect of other regions of the republic.


TABLE No. 43

REVENUE AND NON REVENUE RECEIPTS, BY PORTS OR FINANCIAL DISTRICTS
FISCAL YEAR 1926-27


Port


A q uin .............. .................
B elladere .. ........................
C ap H aitien ..........................
C ayes .. .... ........
G lore .................
G onaives .. ......... .. .
Jacm el ........... ..... .. ....
Jirem ie ... ... .....
M iragoane ... .. .. ....
O uanaminthe .. ...................
Petit Goave .. ........
Port au Prince ..................
Port de Paix .......................
Saint M arc ........................

Total revenue receipts ........
Total non revenue receipts .....
Total receipts .................. .


Customs


Gourdes
113,122.24
13,458.33
3.254.525.83
3.408.107.55
3.553.51
1.668,692.47
2.973,165.49
1,365,664.38
705.299.97
12.5 6.45
2.147,929.25
15.698.321.56
1123,445-51
1.174,073.69
33.661,876. 23


Internal
Revenue Misccllaneous


Gourdes Gourdes
17,478.o6 ....
278,561.02
255.307.38.

137.353*95 .. ......
178.679.13 .. ........... .....
110,577.26 ..
38.283.04 ....... ......
1 17.058.88 ..... .
2.8o2,519.63 1.046.370.59
94,873-44
122,596.18 ... ..

4,153.287.97 1,046,370.59
.. . . .
. 5 ... . . .


Total


Gourdes
130,600.30
13.458-33
3,533.086.85
3,663.414.93
3.553.51
1.806.046.42
3.151,844.62
1,476,241.64
743.583o01
12,5I6.45
2,264,988.13
19,547,211.78
1.218,318.95
1.296,669.87
38.861.534-79
3,988.00
38,865.522.79


Sufficient comment has already been made on the periodicity of customs
receipts. Much less variation is exhibited in internal revenue receipts,
although the first quarter of the fiscal year contributed 39.66 per cent of
the total. This is due to the fact that the law requires payment of income
taxes and certain other important taxes during the first month of the
fiscal year.
Further details in regard to customs and internal revenue receipts by
sources, by months and by ports are found in Schedules No. 3 and No. 4,
which are appended to the present report.





















HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


Customs receipts
Aquin ................................ ......
Belladire ..... .... ...........
Cap Haitien ...... .... ...........
Cayes .... .................................
Glore .... ..................................
Gonaives ............ ....... ... ...........
Jacm el .... ................................
Jeremie ........................................
Miragoane .................. ...............
Ouanam inthe ............ ................. ..
Petit G oave ................... ..............
Port au Prince .................................
Port de Paix ....................... ............
Saint Marc .....................................

Total customs receipts ................*-..

Internal revenue receipts
Administration Port au Prince ................
A quin ..................
Cap Haitien .. ............................
C ayes .... ..................................
Gonaives .. .....
Jacm el .....................
Jerem ie .... ................... ............
M iragoane .....................................
Petit G oave ...................................
Port de Paix .................................
Saint Marc.......................... .....

Total internal revenue receipts ............

Miscellaneous receipts
Port an Prince .... ........... ............


October


Gourdes
3.756.19
582.90
433.801.63
474.464.75
1or.9
186,517.87
350,199.96
166,141.76
62,244.82
938.57
249,560.57
1,580,996.84
150.885.65
S10,265.00

3,770,458.42


348.923.22
2,379.88
62,125.42
51,692.03
25,934.36
27,919.79
23,927.22
6.195-79
27,694.22
21,408.56
21,599-58

619,800.07


51.86o.8o


Total revenue receipts ...................... 4.442,19.29

Non revenue receipts .........................................

Total receipts ......................... 4.442.1 19.29

~'~~~~~1 -"-/==~


TABLE No. 44

TOTAL RECEIPTS OF HAITIAN GOVERNMENT, BY SOURCES, MONTHS. AND PORTS
FISCAL YEAR 1926-27


November


Gourdes
0.,612.81
1,407.83
409,677.35
393,778.33
201.05
t66,598-55
359,689.40
181,638.19
43,799.73
2,202.46
198,062.73
1,509,992.07
163,462.12
93,313.12

3.534.435.-74


238.963.97
1,517.51
23,119.94
15.963.65
9.480.43
12,430.49
9,095.98
2,825.11
8,734.72
5.382.72
7.316.72

334,831.24


53,441.65

3.922,708.63



3,922,708.63


December January


Gourdes Gourdes
17,802.82 9,480.38
6o5.95 1,477.50
357,186.16 288,940.53
376,751.71 243,829.42
179.70 161.oo
198,795.80 168,814.33
470,662.84 317,949.20
190,203.14 104,048.12
82,559.66 91,362.03
1,342.15 1,034.30
306,433.44 251,372.92
1.589.891.57 1,288,950.73
166,771.58 91,981.96
164,081.49 o107475.64

3,923.268.o0 2,966,878.06


573,154.43 259,867.99
1,446.91 1,458.70
23,982.52 25,346.40
21,219.40 14.788.33
14.621.32 14,995.45
14,694.47 15.930.20
S1,596.44 8.634.74
3,646.22 2,574.66
8.917.79 9,310.47
9.704.91 7.443,18
9.599.80 8.275.88

692.584.21 368.626.oo


153.392.35 60,0oo .75

4.769,244.57 3.395.505.81

200.00

4,769,244.57 3,395,705.81


February


Gourdes
32.559.39
742.33
282,137.60
236,396.06
270.00
164,828.56
284,511.14
93,891.23
76,570.22
596.19
268.570.44
1,240,445.82
110,045.67
94,528.96


March


Gourdes
19,784.76
1,099.51
243,161.57
263.904.40
552.05
S66,ooo.84
3o01930.51
116.902.59
6o,9i5.ob
1,585.34
252,210.02
1,320,769.08
73,206.47
127,439.24


2

6
4

6


9
0
o


o
4
6
7
8


April


Gourdes
7,375.24
752-72
191,696.26
254,372.41
540.15
152,360.60
226,401.30
I00,289.36
54,182.97
736o10
189,954.99
1,067,21 1.88
72,586.42
124,565.44


,.443,025.84


200,320.33
1.351.95
29.160.60
300,89.53
15,253.37
22,158.14
8,795.75
3.576.9o
15.474.84
7.098 64
14,802.32

348,982.37


80,737.24

2,872.745.45

200.00


May


Gourdes
2,406.66
643.01
221,049.42
213.118.25
268.85
1 18,040.62
155,699.70
116,046.89
44,865.05
535.85
Sro,567.40
1,097.010.93
66,909.05
99,667.04

2,246.828.72


124.592.64
3,624-13
16,198.40
31,173.48
8.178-75
16,040.44
7,897.1o
3,718 41
8.750.33
14,231.76
7,772.92

242,178.36


54.385.40

2.543,392.48

400.00


June


Gourdes
8.943.43
905.92
134,062.98
201,372.64
339.65
102,628.72
132,924.20
76,484.16
74,22o.o8
369.20
98,882.7 I
1,172.348.36
79,107.05
66,824.09

2,149,413.1 9


206,235.37
1.148.92
17,435.43
21,255-37
6,836.63
0.,257.03
4,981.54
2.168.45
5,816.78
4.942.66
7,863.05

288,941.23


81,406.70

2.519.761.12

700.00


,872.945.45 2.543.792.48 2.520.461.12


July


Gourdes
131.19
709.68
171,136.61
259.353.80
212.50
71,726.14
o09.390.93
68,729.81
32,305.07
1,265.45
81,672.04
1,169.304. 16
51,615.19
73,953.19

2,091,505.76


249,149.33
306.34
16.692.32
11.562.5 1
7.823.31
9.297.88
5.239.51
1,862.09
5.460.30
4.217.56
7.187.61

318,798.76


171,764.25

2,582,o68.77

6oo.oo

2,582.668.77


August
- 1


Gourdes
174.96
3,974.08
248,765.17
268,397.52
360.80
69,157.60
S16,250.32
61,115.87
40,754-87
1,034-33
65,065.68
1,212,665.28
35.964.20
60,753.94

2.184,434.62


165,717.49
712.81
i2,477.83
13,379.11
5,891.55
9,048.30
7,494.23
2,835.16
4.156.41
3,543.59
7,845.61

233,102.09


September Total


Gourdes Gourdes
94.41 113,122.24
556.90 13,458.33
272,910.55 3,254.525.83
222,368.26 3,408,107.55
365-85 3.553.51
103,222.84 1,668,692.47
147.555.99 2.973,165.49
90,173.26 1,365.664.38
41,520.41 705,299.97
878.01 12,516.45
75.576.3 2,147.929.25
1.448.734.84 15,698,321.56
60o91o.1 5 l,123.445.51
51,206.54 1.174,073.69

2,516,074.32 33,661,876.23


167,710.48 2,802,519.63
594-12 17,478.06
12,700.80 278.561.02
14.153.71 255,307.38
6,898.95 137.353.95
10,144.34 178,679.t3
6,402.74 1 .577.26
3,145.64 38,283.04
7,365.08 17,058.88
4,136.40 94.873.44
5,368.16 122.596.18

238,620.42 4.153.287.97


84.318.58 120,593.75 1,o46,370.59

2.501,855.29 2.875.288.49 38,861,534.79

........ ..... ......... .3.988.oo

2,501,855.29 2.875.288.49 38,865.522.79


I I I I I I I I


i I


2,886.093.61 2,949.459.94 2


141,558.15 126,326.23
1,314.60 1,622.19
19,728.93 19.592.43
14.723.29 15,306.97
o0,638.91 10,800.92
15,371.03 15,387.02
8,748.53 7.763.48
2,778.64 2,955.97
8,331.49 7,046.45
6,ooi.18 5,862.28
10.380.65 14,583.88

239,575-40 227,247.82


62,040.85 72,427.27

3,187.709.86 3249,135.03 2

400.00 1,488.oo
3,188.10o .86 3.250,623.03 2

















TABLE No. 45


EXPENDITURES OF HAITIAN GOVERNMENT, BY SERVICES*

FISCAL YEARS 1916-17 TO 1922-23


Public Guaranteed Financial
Public Health Pu c Interest Haitian Extra- Adviser- Miscel-
Year Gendarmerie Works Service ubc and Ministries ordinary General laneous Total
Service Subsidies Credits Receiver


Gourdes Go Gourd oourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
September. 91 6. 711.309.91 690.284.08 ..... .95,047.5 .......... 89,850.15 355.033.48 3,751,525.1
1916-17...... 4.792,156.i0 3.88.031.6 92.434.55 5.131.819.90 .............. 796,625.70 1,783,109.95 15,884177.80
1917-18.......... 4,56523875 2,700,853.70 889,87075 ................. 5,547,88885 ............. 741,055.8 170,89.60 4,614,997.45
1918-19........ 4,594,938.30 2,721,341.50 958.756.70 497.140.00 175,099.15 5,806,871.30 ............ 700,035.60 45.297.90 15,499,480.45
919-20......... 5,415,377.45 3.199,680.25 1,338,591.30 245,000.00 461.241.15 8,490,246.70 ............. 1,380.460.60 116,268.80 20.646,866.25
1920-21...... 4 5.114.593.80 2.634,628.15 1,541,482.30 13,170,380.95 406,771.30 7,005,503.45 .......... 452,073.I1 1,463,022.85 32.788,455.90
1921-22.......... 5,104,056.45 2.451,720.30 1,244,506.25 21,663,345.05 293,995,55 7,483.538.25 188,422.70 1,279,142.25 67,181.60 39.775,908.40
1922-23.......... 5,226,550.60 5,019,229.60 1.485,106.25 9.057,374.50 206,400.00 7,811,914.75 232,709.00 1,438,506.15 82,322.3o 30,560.113.15

Total ...... 35,524.221.36 22.705,769.18 7.458.313.55 44.633,240.50 1,635,941.70 49,182.830.70 421,131.70 7,877,749.35 4,082,326.48 173,521,524.52


*The classifications of 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


Governmental Expenditures
Present accounts of the government are carried on a functional basis.
That is, various organizations and activities of the Haitian state are
recognized, and the cost of supporting each activity or organization is
listed separately. This fact, in combination with further segregation of
accounts for each general activity or organization, permits to the Haitian
citizen or to the interested foreigner comprehensive knowledge of the
exact disposition of funds entering the treasury and appropriated by the
legislative body.
Prior to 1923-24 no adequate segregation and classification of expendi-
tures had been developed. Therefore the statistics presented in table No.45,
while reflecting disbursements from 1916-17 to 1922-23, inclusive, do not
afford full information as to the relative importance of many significant
objects of expenditure.
From 1923-24 to date both budgetary appropriations and governmental
accounts have been classified according to the several purposes to which
funds have been devoted, and it is therefore possible to obtain not only
a comprehensive but a comparative picture of the objectives of the Haitian
government, as evidenced by the activities and organizations which were
most generously financed. Table No. 46 includes the requisite data for
1923-24 to 1926-27. It will be noted that from 1922-23 to 1925-26, inclusive,
there was a gradual advance in total expenditures from Gdes. 30,560,113.15
to Gdes. 40,930,725.08. In 1926-27. however, total expenditures of Gdes.
.9,747,163.75 were Gdes. 1,183,561.33 less than those of the prior year. In
short, the rate of increasing public facilities and services was not quite
maintained during the year under review, though expenditures were larger
than those for preceding fiscal years, with the exception of 1921-22 and
1925-26. During 1921-22 revenues had advanced extraordinarily, as a con-
sequence of the post-war boom, and this good fortune was utilized by the
treasury for liquidating certain arrears of interest and amortization which
had accumulated in connection with the public debt. Therefore a consider-
able proportion of the expenditures of that year represented obligations of
previous years and also did not involve improvements in the productive
capacity or standard of living of the Haitian people.
On the contrary, maximum expenditures in 1925-26 were merely an
exemplification of the unequalled -revenues of that year. Prior debts and
claims had already been liquidated, with the result that the general mass
of Haitian citizens were the beneficiaries of the prosperity which charac-
terized that year. Much the same statement can be made for 1926-27.
Haiti is one of the countries in which objects of expenditure will admit
of close scrutiny. As the service of the public debt and costs of the military
and police are relatively moderate, an unusually large percentage of reve-
nue receipts is available for projects of social utility. For example, total dis.
bursements on public debt account for the fiscal year just closed were Gdes.









72 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


12,931,935.13. As a matter of fact, because of the special conditions exist-

ing in Haiti by virtue of the treaty of September 16, 1915, several items

are considered as portions of the public debt which under other circum-

stances would be carried as ordinary operating expenses of the government

rather than as public debt items. Such items are disbursements for the of-

fice of the Financial Adviser-General Receiver, for the Internal Revenue

Service, for certain international institutions of which Haiti is a member

and for payments to the wharf company of Port au Prince.

Sufficient comments have already been made in regard to the office of

the Financial Adviser-General Receiver and of the Internal Revenue Ser-


TABLE No. 46

REVENUES AND EXPENDITURES, FISCAL YEARS i9a3-24, 1924-25. 1925-26 AND 1926-27


REVENUES .
Customs .. ........ ... ................
Internal revenue ............................
M miscellaneous ........ .... .................

T otal revenue ........ .. ...............
N on revenue .... ........................

Total receipts .............. ........... .
EXPENDITURES
Public debt :
Financial Adviser-General Receiver .......
Internal revenue service ...................
Series A loan ............................
Series B loan .... ........................
Series C loan .........................
Interiror consolidated debt .............
Fiduciary currency ............ ..........
Commissions paid to Banque Nationale .
Haitian Construction Co., notes .........
Roberts, Dutton B Co., claim .........
Stamp sales, discounts and expenses ....
International Institutions ..................
P. C. S. Railroad subvention .............
Wharf Company subvention ..............
.oble Company subvention ...............

Total ............ ...............
Gendarm erie ............... ..............
Foreign R relations .............................
Finance .. ...............................
Commerce .............. .......... ......
Interior ..... ..........................
Public Health Service..................
Public Works .........
Public Works Service ...................
J justice .... ........ ........
A agriculture ................. ........
Agricultural Service .....................
L abor ..... ..............................
Public Instruction .................... ......
R religion .. ...... ........

Total expenditures from revenue .........
Awards of the Claims Commission .........
National Railroad Construction .............
M miscellaneous ................ .............


1923-24 1924-25


Gourdes Gourdes
29,950.907.14 35.750,018.34
2.795,870.53 4.089,926.19
155,543.66 647.722.19

32.902.321.33 40,487,667.00
. ....... 69,855.47


1.118,917.23
73.478.88
5.589.864.50
1,695.970.36
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
734,199.47
1,520,366.84

1,363,403.06
1,529.057.91
961,336.20
5,895.159.05
1.372.533.28
148.288,24
434,445.89

2,3o6.194.25
457.393.oo

34,215.495.94
.. .. .


1925-26 1926-27


Gourdes
40,594.831.74
4,155.170.28
614,646.08

45.364.648.10
2,6oo.oo


Gourdes
33,661,876.23
4.153,287.97
1,046.370.59

38,861,534.79
3,988.00


40,557.522.47 45.367.248.10 38,865.522.79


1,849.537.49
342,928.16
7.336,491.75
2.453.151.14
1,209,o67.55
195.839.01
420,oo0.00
27,958.63


3,191.31

206,400.00
268,838.26
120,00ooo.oo

14,433,403.30
5.579.242.54
619,953.31
1,197,945.96
230,051.46
1,2o8,067.76
2,223,059.14
703,416.57
7,533.943.51
1,333.838.311
44.258.8 8
1.526,891.70
274,393.63
1.942,599.20
367,136 75


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
6.062,415.34
635,084.64
I,062.756.19
247,935.91
1,224.369.56
2,852,485-58
92,287.98
9,082,496.o6
1.395,153.621
41,426.151
2,185,104 58
530,646.65
1,965,167.09
388,617.22,


2,278,241 30
306,308.68
6,637.370.05
2,065,682.40
1,099,239.70

420,000.00




57,629.15

67.483.85


12.931.935 13
6,496,006.55
555.375.62
827,576,63
255,o63.o6
1,229,080.99
3,444.30 r76
34,789.54
7.166,798 42
1.369,351.38
43.039 34
2,452.380.38
557,200.68
1,996,720o.o
387,544.26


39.2 i8,202.o2 40,930725.08 39.747,163.75
1.191,045.20 1.671.072.85 o 5
1.553,756.20 545.995.05:.
*.- .- -. -- i 8 2t 2it.T ir o ^


Peo tl p cents .......................... 34.215.495.94 41,963.O03.421 44,990,040.53 43.644.60o
Pension ded actions ......................... .. ... 151460.29 9 430.92] l'3.26

Net payments ............................. ............... 41,811.543.13I 44.898.609.6tI 43,541.3
Revenue over expenditures .......... ....... .............. .69,46498 4.433923.02
Expenditures over revenues .................. 1,313.174.61 .. .......... 885.628

647,722.19 under 1924-25, Miscellaneous, third line, second column, should read 647,722.47


1.o8
4 ,6

S02

8.96






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


vice. In the latter case, however, disbursements are shown under the cap-
tion "public debt" merely as a matter of convenience, as the Internal Reve-
nue Service is under the supervision of the General Receiver and expenses
on account of the General Receiver's office are by the treaty made a charge
against revenue, prior even to service of the public debt.
During 1926-27 several items disappeared as payments on public debt
account. These were the subvention of the Compagnie des Chemins de Fer
de la Plaine du Cul-de-Sac and the subvention of the Compagnie Fran-
caise des Cables Telegraphiques. Payments of the government to the
Compagnie Haitienne du Wharf de Port-au-Prince also sharply decreased.
As to the Compagnie des Chemins de Fer de la Plaine du Cul-de-Sac,
there is a difference of opinion between the Haitian state and the company
as to whether the subvention is due. The railroad was originally constructed
for developing the plain of the Cul-de-Sac, and for this reason the state
agreed to guarantee interest up to six per cent, based on a maximum
cost per kilometer. If the railroad should show net earnings of a portion
of six per cent on such maximum cost per kilometer, the subvention by the
state would be proportionately decreased, but in no case could the obli-
gation of the state exceed six per cent on such maximum cost per kilometer.
As the railroad from its inauguration was unsuccessful, not only did
it fail to earn six per cent on the agreed capital sum, but there was an
actual operating deficit. Thereupon the company assumed the rather naive
position that the state was responsible for all operating deficits as well
as for the guarantee of interest at not to exceed six per cent on a specified
capital sum. Furthermore, as deficits accrued from year to year the
company computed interest on such deficits and attempted to charge these
sums also to the Haitian treasury. Little financial experience is necessary
to realize the possibilities if the government should acquiesce in the con-
tentions of the railroad. Expenditures of any magnitude could be contracted
by the railroad and charged to the treasury. Naturally the treasury would
not submit to such an obligation, particularly when the contract with the
railroad was quite precise as to the maximum financial obligations of the
state.
After many years of controversy the railroad submitted its case to the
International Claims Commission and demanded an award of more than
2,000,000.00 dollars. There could -be little question as to the decision of
an unprejudiced and competent body, and the Claims Commission found
that the Haitian state had met all of its financial obligations toward the
railroad and that the claim of the railroad was completely unjustified.
That operating deficits had occurred was not denied. As such deficits
accumulated the financial position of the railroad became steadily worse,
and its possibility of repaying the subventions advanced by the state
became more and more remote. Furthermore, the railroad had largely
ceased to serve as a public utility and was little more than an adjunct






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


of a sugar company in the neighborhood of Port au Prince. In fact
the sugar company and the railroad were owned by the same holding
company. Under these circumstances it was possible for the railroad to
arrange for tariffs on sugar cane which would substantially diminish costs
of production for the sugar company. That such action would be taken
goes without saying if any deficit by the railroad could merely be charged
to the Haitian treasury.
Tariffs of the railroad were to be a matter of agreement between the
state and the company, as provided by the contract of concession, but in
actuality rates on sugar cane in effect on the lines of the Compagnie des
Chemins de Fer de la Plaine du Cul-de-Sac are drastically lower than
those in such a sugar producing country as Porto Rico. Had the rates of
the Compagnie des Clemins de Fer de la Plaine du Cul-de-Sac approxi-
mated those in Porto Rico there is reason to believe that no operating
deficits would have occurred, though the expenses of the sugar company
would have been correspondingly increased.
Under all existing circumstances the Haitian government did not con-
sider it appropriate to pay the subsidy to the Compagnie des Chemins de
Fer de la Plaine du Cul-de-Sac for 1925-26 which would normally have
taken place in the early days of the fiscal year 1926-27. Not only was there
serious question of the solvency of the road, but also there had been ap-
parent failure of the company to meet certain contractual obligations.
That the solvency of the railroad is a matter of concern to the state is
evident from the fact that its physical property reverts to the state at the
expiration of the concession. That non-performance of obligations in-
validates the contract is merely a matter of general knowledge. Therefore
relations between the state and the company are complicated and unsatis-
factory, and the outcome of the controversy is obscure.
No subvention was paid to the Compagnie Francaise de Cables T61egra-
phiques during 1926-27 as payments under its contract with the state ex-
pired during the previous fiscal year. Thus the treasury was finally re-
lieved of payments which have been in effect over a long period. There can
be reasonable certainty that no similar subvention will be accorded in the
future, as communications with Haiti are now quite satisfactory.
Payments from the treasury to the Compagnie Haitienne du Wharf de
Port-au-Prince were diminished during 1926-27 and will not appear during
1927-28 or thereafter because of an arrangement by which the company
will make direct collections of wharfage duties, whereas these had been
previously collected by the Customs Service.
As a matter of record it is useful to review recent relations between the
Haitian governmentand the wharf company. When the tariff of 1926 went
into effect in August of that year all fiscal charges on imports were com-
bined into a single rate either specific or ad valorem, and the laborious and
complicated computations formerly necessary were abolished. As wharf-






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


age duties at Port au Prince, which constituted part of the customs duties,
had been assigned by the contract to the wharf company of Port au Prince,
as the method of calculating these wharfage duties was also extremely
complicated and as the Customs Service received no compensation for
making collections for the wharf company, this office served notice that
when the new tariff became effective the wharf company would have to
make its own collections of wharfage duties. The wharf company mildly
protested against assuming direct collection of wharfage duties, but this of-
fice pointed out a possible interpretation of its contract by which collec-
tions could be effected through the steamship companies. Accordingly, the
Customs Service ceased wharfage collections at the close of August 8, 1926,
and the next day the wharf company began to effect collections through
the steamship companies in so far as concerned imports. At the request of
the wharf company this offic,- continued to collect wharfage duties on ex-
ports, as this involved no appreciable labor.
In a short time complaints began to occur as to the rates of wharfage
duties assessed by the wharf company, particularly in connection with
importations of flour. The wharfage tariff provided that basic duties of
12 centimes should be collected on each full barrel of 200 pounds, and the
unit of taxation for flour in the import tariff was the barrel of 200 pounds.
When it became the practice to import flour in bags containing 196 pounds
net weight rather than in barrels, proper wharfage charges were computed
by considering the bag as the equivalent of the barrel df 200 pounds, as
mentioned in the tariff. However, in billing the steamship companies for
wharfage on flour, the wharf company after a few weeks attempted to
apply to flour, when imported in bags, the rate for articles not otherwise
specified, and this rate was double the lawful rate for flour.
This office advised the wharf company that the tariff was being wrongly
applied, but the company did not refrain from its illegal practices. There-
upon the Haitian government passed a law which again placed the collec-
tion of wharfage duties under the Customs Service and specifically stipu-
lated the equivalent of 12 centimes per barrel of 200 pounds as the proper
wharfage charge on flour, whether imported in bags or barrels. Resump-
tion of collection of wharfage duties by the Customs Service occurred on
February I, 1927.
At once a suit attacking the constitutionality of the law just described
was instituted by the wharf company in the Haitian courts, and on June 3,
1927, a decision was rendered by the Court of Cassation which supported
the contentions of the company. This decision was so palpably unconscion-
able that it considerably accentuated the demand for reformation of the
Haitian judiciary.
Both before and subsequent to the decision in question negotiations
between the Haitian government and the wharf company had been progres-
sing, with the purpose of simplifying the assessment of wharfage duties






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


at Port au Prince. On August 19, 1927, a convention between the two
parties was signed which authorized direct collections of wharfage duties
by the company and specified a flat rate of Gdes. 11.25 for imports and
Gdes. 6.25 for exports in place of the multifarious rates which had pre-
viously been in effect. The flat rates in question were supposed to be the
equivalent of the amounts which were previously collected as wharfage du-
ties in accordance with the interpretation of the tariff by the Customs Serv-
ice, rather than those claimed by the wharf company. Thus in effect the
company admitted the validity of the interpretation of this office in regard
to legal wharfage charges. Furthermore, this office was relieved of the ex-
pense and trouble of making wharfage collections. Aside from the unde-
sirable feature of the decision of the Court of Cassation, the relations be-
tween the Haitian government and the wharf company are now upon a
much improved basis.
Both military and police functions in Haiti are combined in a constabu-
lary. This organization is now fully organized and under thorough disci-
pline. Furthermore, its facilities and equipment have been gradually im-
proved, until there is now little to be accomplished except continuance of
the policies already in operation. Total expenditures for this branch of the
government service were Gdes. 6,496,o06.55 during 1926-27, a sum of Gdes.
433,591.21 or 7.15 per cent in excess of those for the prior fiscal year.
There is no present indication that expenditures for the Gendarmerie
d'Haiti need be expected to increase substantially above those of recent
years.
Due to the transfer from the budget of the Department of Foreign Rela-
tions to the budget of the public debt of payments to international bodies
of which Haiti is a member, costs of the Department of Foreign Relations
declined from Gdes. 635,084.64 to Gdes. 555,375.62. While the latter sum
is not entirely adequate, it may be said that Haiti is reasonably well rep-
resented at the capitals of those countries with which political and com-
mercial relations are important. In any case, expenditures for the Depart-
ment of Foreign Relations do not need to be increased unless the revenues
of the republic become considerably more generous.
Included in the Department of Finance are pensions and payments for
miscellaneous claims. Because admitted claims vary widely from year to
year there is no regularity or continuity in expenditures for the Department
of Finance. Costs of operating this department in 1926-27 were Gdes:
827,576.63, an amount appreciably smaller than the Gdes. I,o62,756.19
during 1925-26. On the other hand, disbursements for the Department of
Commerce were substantially equivalent in the two years. A similar situa-
tion obtained in the Department of the Interior, which includes the payment
of the President and his cabinet members, the Councillors of State, the
Prefects and the members of the organizations, appertaining to these vari-
ous functionaries.






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


No branch of the Haitian government has shown more rapid growth
than the Public Health Service. Little or no attention was paid to public
health prior to the selection of an American official under the terms of the
treaty of September 16, 1915, to organize and develop public health meas-
ures. From no segregated expenditures for public health in 1916-17 the
item advanced to Gdes. 3,444,301.76 in 1926-27. As compared with the
previous year there was an increase of Gdes. 591,816.18 or 20.75 per cent.
As in the case of the Gendarmerie d'Haiti, the public health work in Haiti
is now becoming systematically organized and rather satisfactorily
equipped. Increased expenditures are, however, in prospect, as the popu-
lation of Haiti is notoriously affected with disease and is both too poor
and lacking in initiative to remedy present conditions without direct
assistance from the state.
Modern hospital facilities are now available in all of the principal towns
of Haiti, and rural clinics are accessible for the country population. Free
care and free medicine are available to persons who are not able to pay.
This is indeed in sharp contrast with the condition of a few years ago and
also as compared with the situation in many if not most countries of the
world. It is believed that the public health organization-of Haiti compares
very favorably in comprehensiveness and in the relative scope of its activ-
ities with any similar organization in existence.
Future developments in public health should, however, contemplate
more active participation by the communes and more individual responsi-
bility on the part of the citizens of Haiti. That the state should permanently
bear practically the entire cost of such distinctly local and individual matters
as municipal and personal hygiene is not believed to be sound policy. That
the state had to initiate the work and take the leadership during the
early stages is admitted. But the time is rapidly approaching when the
municipalities should more largely bear the costs of local sanitation and
when each Haitian citizen should be more largely responsible for meeting
the supplementary costs which illness entails. Socialized medicine may
be a pleasant theory, but development of initiative, resourcefulness and
personal responsibility is also of vital significance.
By reason of the transfer of part of the technical personnel from the
Ministry of Public Works to the Public Works Service, there was an
indicated decline in the costs ofthe Department of Public Works from
Gdes. 92,287.98 to Gdes. 34,789.54. In reality the same personnel was carried
at the same rates of pay.
As has been the case for several years, expenditures for public works
exceeded all other classes of expenditure except that for public debt.
Comprehensive organization is also characteristic of the Public Works
Service, with the supervisory office in Port au Prince and district engineers
in the outlying regions. Expenditures during 1926-27 of Gdes. 7,166,798.42
were apparently inferior by Gdes. 1.915.697.64 to those of Gdes. 9,082,496.06






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


in 1925-26. Here again the decrease was unreal and merely a matter of
accounting.
When the reorganization and refunding of the public debt of Haiti
was undertaken, a large number of claims against the treasury were in
existence. Obviously, it was impossible to know the exact amount which
Haiti should with propriety pay against these claims. This matter was
to be settled by an International Claims Commission, and the awards in
cash of such commission were to be satisfied from the proceeds of the
series A loan. There was also the provision that after awards of the
Claims Commission had been liquidated, any balance of the proceeds
from the loan should be utilized for public works and for supplementary
amortization of the public debt.
Although the Series A loan was floated in 1922, it was not until the
end of the fiscal year 1925-26 that all claims against the Haitian treasury
had been adjudicated, with the result that the balance was available for
expenditure. A careful program of productive public works was elaborated,
and most of this program was carried out during 1926-27. Funds for the
work in question were, by very definition, derived from non-revenue
rather than from revenue sources and amounted to Gdes. 3,889,422.08, as
shown in table No. 46. If this sum be added to expenditures from revenue
for public works a total of Gdes. 11,o56,220.50 is obtained. Thus the
public works program of Haiti was even more actively prosecuted in 1926-
27 than in any previous fiscal year. Indeed it is highly probable that
maximum expenditures may have been reached for several years to come,
partly because there will be no extraordinary non-revenue resources
for new projects and partly because Haiti is gradually becoming more fully
furnished with its urgent needs for such items as roads, bridges, trails,
telephone, public buildings and municipal water supply.
No unwarranted conclusion should be drawn from the foregoing state-
ment. In comparison with more developed countries, there is opportunity
for expenditure of scores of millions of gourdes for public improvements in
Haiti. Present revenues, however, are not sufficient to permit a more active
program than has been in effect during recent years. Nevertheless, as im-
provements already effected gradually augment production, there is no
reason to doubt that enlarged governmental income will also be obtained.
At such time productive projects of public works can properly be author-
ized.
Costs of the Departments of Justice, Agriculture. Public Instruction and
Religion closely corresponded with those of the preceding year and require
no comment, except that the present educational policy of Haiti is to main-
tain expenditures for classical education at about their present level while
devoting as large resources as are available to the extension of agricultural
and vocational training.
Consistent though less rapid progress in agricultural education and train-






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


ing in the practical arts was accomplished during 1926-27, when measured
by the financial yardstick. In reality it is probable that far greater advance
was made than is suggested by the moderate increases in expenditure. In
previous years the Agricultural Service and the Service of Vocational Edu-
cation were comparatively new, and under such circumstances given ex-
penditures do not yield as satisfactory results as can be obtained in later
years. Furthermore, the problem of developing scientific agriculture in
Haiti is exceptionally difficult, because of the fact that a large majority of
the population, possibly as much as ninety per cent, cannot read nor write
and are consequently unable to take advantage of the ordinary methods
which have been devised for the advancement of agriculture, such as ex-
periment stations, demonstration farms, county agent work and formal
instruction in agriculture.
For the Agricultural Service, expenditures increased from Gdes. 2,185,104.
58 in 1925-26 to Gdes. 2,452,380.38 in 1926-27 or 12.23 per cent. There was
a similar expansion in expenditures for vocational education or from Gdes.
530,646.65 to Gdes. 557,200.68 or 5.00 per cent.
That the Haitians are not unresponsive to opportunities supplied by the
government for increasing their productiveness and their possibility of earn-
ing a reasonable livelihood is demonstrated by the reception accorded to
agricultural and industrial schools. Their facilities are usually taxed to the
limit, practically as soon as they are open to the public.
Adequate education, properly adapted to the special conditions existing in
Haiti, is undoubtedly one of the most pressing problems to be solved by the
Haitian government. Lack of resources has heretofore prevented a system-
atic attack on the existing mass of ignorance and superstition. There is the
vicious circle of illiteracy, resulting in low production per capital, which in
turn signifies inadequate governmental revenue, and the latter is followed
by the inability of the state to furnish to. its citizens proper educational
media. As a consequence, ignorance and poverty continue to flourish. Only
a small beginning has been made toward dissipating the illiteracy which
has long been characteristic of Haiti. Many decades must elapse before the
task of enlightenment will be completed. Progress will probably be slow
and at times discouragement will be inevitable. But the government should
not for one moment hesitate in the policy of agricultural and vocational
development which has been adopted. The policy is correct; satisfactory
results will inevitably follow; those results, however, cannot be attained ex-
cept over the course of many years.
In table No. 46 are also shown pension deductions as a, reduction of total
disbursements. This charge might well be eliminated from the Haitian
fiscal system. Present pension arrangements are unfair to the employees of
the state who are supposed to be the beneficiaries, and are also unsatis-
Sfactory from the point of view of the treasury. In the opinion of this office
the existing pension system should be abandoned, to be replaced, if desired,
by a more modern and workable scheme.






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


Total net expenditures including disbursements from revenue and non-
revenue receipts, amounted in 1926-27 to Gdes. 43,541,337.02. This figure
was Gdes. 1,357,272.59 below that of the previous year which was Gdes.
44,898,609.61.
Small sums were disbursed during 1926-27 in payment of awards of the
Claims Commission. These amounted to Gdes. 8,015.25, and represented
items which claimants had neglected to present for redemption, those which
had previously not been payable because of legal attachments outstanding
against the holders of the awards, and unimportant awards by a Court of
Appeal which was convened to pass on certain French claims, in cases where
the claimants were not satisfied with the decisions of the Claims Commis-
sion.
Miscellaneous expenditures of non-revenue receipts were Gdes. 3,889,422.
08 and were solely for public works and derived from the proceeds of the
Series A loan. In the previous year miscellaneous expenditures of non-
revenue receipts were Gdes. 1,842,247.55, but Gdes. I,5oo,ooo.oo was ap-
propriated for supplementary amortization of the public debt, leaving Gdes.
342.247.55 as the amount expended on public works.
Total receipts, both revenue and non-revenue, were Gdes. 38,865,522.79 in
1926-27. as against Gdes. 45,367,248.10 in the preceding year. For expendi-
tures the comparative data were Gdes. 43,644,6o0.o8 and Gdes. 44,990,040.53.
When pension deductions were effected for each year, total net expendi-
tures were Gdes. 43,541,337.02 in 1926-27 and Gdes. 44,898,609.61 in 1925-26.
There is the possibility that disbursements of the Haitian state will not
approximate the foregoing figures for several years to come. This is be-
cause construction of the National Railroad has largely been completed, at
least so far as expenditures under the supervision of the Haitian state are
concerned, awards of the Claims Commission have been paid, and most
of the balances of the Series A loan have been utilized in reduction of the
public debt and the construction of public works.
As total, revenue receipts during 1926-27 amounted to Gdes. 38,861,534.79
and as expenditures from revenue reached Gdes. 39,747,163.75, there was
an excess of expenditures over receipts of Gdes. 885,628.96. No treasury
officer welcomes a deficit, even though treasury balances are larger than
necessary. In the present case, therefore, the deficit was Iot regarded with
pleasure, though unobligated cash at the close of the fiscal year stood at
such a high level that surplus expenditures in no wise impaired the
financial position of the government. Nevertheless such a deficit was in
striking contrast with the surplus of Gdes. 4,433,923.02 by which revenue
receipts exceeded expenditures from revenue in 1925-26.
Much can be learned about the economic and social policy of a govern-
ment by analyzing the objects to which revenue is devoted. Not only
are current policies reflected, but there is also strong indication of previous
concepts of government, as political and financial difficulties are almost







HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


invariably reflected in onerous public debt charges. Therefore revenue

receipts and expenditures from revenue have been classified in table No. 47

so as to show the percentage which each source of income constituted of

total revenue receipts and the relative importance both by absolute amount

and by percentage, which each of the objects of expenditure constituted of

total expenditures from revenue and of total revenue receipts.


TABLE No. 47

SOURCE AND DISPOSITION OF REVENUES, IN PERCENTAGES
FISCAL YEAR 1926-27


REVENUES


C custom s................. ................ .......
Internal revenue...............................
M miscellaneous ..... .................... .. ........

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

Expenditures

Public debt .... ..................... ....... .
Public works service...... ..................
Gendarmerie.. ..............................
Public health service...............................
Agricultural service.................. ..........
General receiver.. ............. ..........
Public instruction .... ....................
Justice ....... .........................
Interior..... ...........................
Finance. ....... ...........................
Labor
Foreign relations..... ......................
Religion........ .. ............ ................
Internal revenue service..........................
Commerce.. ..................................
Suoventions............................ ..
Agriculture .. ...................... ... ...
Public work ...............................

Total expenditures..........................
Deficit... ..................................

Total revenues.................. ...........


Gourdes
33,661,876.23
4.153.287.97
10,46,370.59

38,861.534.79


I0.279,921.30
7,166,798.42
6.496.006.55
3.444,301.76
2,452.380.38
2,278,241.30
1,996,720.01
1,369,351.38
1.229,080.99
827,576.63
557.200.68
555.375.62
387,544.26
306,308.68
255,063.06
67,463.85
43,039.34
34,789.54

39.747.l63.75
885,628.96

38.861.534.79


Percentage of
total expenditures
from revenue










25.86
18.03
16 34
8.67
6.17
5.73
5.02
3.45
3.09
.2.o8
1.40
1.40
.98
.77
.64
.17
.11
.09

100.00


It is found that customs receipts comprised 86.62' per cent of total re-

ceipts of the Haitian government. This indeed was inferior to 89.49 per cent

as reported in the previous year, but was still far too large to show a satis-

factory balance in the fiscal structure. Internal revenue receipts increased

from 9.16 per cent in 1925-26 to 10.69 per cent in the year under review. Al-

though this tendency was in the right direction it should be sharply acceler-

ated. Miscellaneous receipts advanced from 1.35 per cent to 2.69 per cent of

the total. While this is gratifying, there can be no expectation that this

ratio will permanently continue, particularly as internal revenue receipts

increase in importance.

Interest and amortization of the public debt continued to take first rank

among expenditures and absorbed 25.86 per cent of expenditures from

revenue and 26.45 per cent of total revenues. In the first case the percentage


Percentage of
total revenues



86.62
10.69
2.69

Ioo.oo


26.45
18.44
16.72
8.86
6.31
5.86
5.14
3.52
3.16

1-43
1.43
1.00
.79
.67
.I7
.1I
.09

2.28

I00.00






HAITI REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


was slightly lower than in the previous year, and in the latter case it was
higher, because calculated on a smaller base. Substantially one-fourth of
governmental income should not be regarded as an unduly large proportion
to devote to the public debt, especially when it is recalled that 43.63 per cent
of total payments on debt account were for amortization rather than for
interest. Furthermore, service of the debt as a whole tends to absorb a
smaller percentage of total receipts as income of the state expands. Also the
amount paid as interest will gradually decline, thus increasing the amount
devoted to reducing the principal of the debt.
There is in fact some question as to whether these payments of the public
debt should be regarded as ordinary operating disbursements or shown
independently. This office is of the opinion that reducing the public debt in
normal times is as much an obligation of the state as is the support of educa-
tion or the maintenance of peace. Therefore no attempt is made to segregate
public debt repayments, but they are considered as ordinary expenditures.
Though public works continued to occupy second place among disburse-
ments the proportion of total expenditures from revenue for such purpose
declined from 22.19 per cent in 1925-26 to 18.03 per cent in 1926-27. Already
the explanation has been given. It lies in the magnitude of non-revenue
expenditures for public works during the year in question.
One other item accounted for more than ten per cent of total expenditures
from revenue. This was for the Gendarmerie and stood at 16.34 per cent in
1926-27. As the constabulary in Haiti represents both military, naval and
police power it is apparent that disbursements under this category were not
excessive. In fact there are few countries which show an equally small pro-
portion of the national income devoted to such purposes.
Other ratios of expenditure during 1926-27 which increased over the pre-
vious year were for public health, agriculture, the Departments of Public
Instruction, Justice and the Interior and for vocational education.
On the whole expenditures of the Haitian government are reasonably
well balanced, though those for education should gradually come to absorb
a larger proportion of the total. Local government in Haiti is not highly
developed. Revenues of the communes are insignificant. Therefore the
central government has to provide the facilities and services which in other
countries are usually furnished by the minor political divisions. Education
usually ranks first among expenditures of local governments. As a conse-
quence, the Haitian treasury should as rapidly as possible expand the
amounts devoted to education and should also exert pressure upon the mu-
nicipalities so that they might become more interested in supporting such
local facilities as schools, municipal sanitation, potable water and parks.
Reimbursements to appropriations were originally authorized during
1925-26. Many governmental organizations render specific services to defi-
nite individuals, and appropriately collect fees for such services. As typical
examples may be mentioned hospital care for persons able to pay, trans-







HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER 83

portation of refuse by the Public Health Service for the convenience of
citizens, repair of hydraulic installations, and sale of products produced by
the Agricultural Service. Legal dispositions now permit monies received
by certain organizations to be considered as additions to appropriations.
Therefore actual operations of those organizations governed by the princi-
ple of reimbursable credits are in some instances increased beyond those
contemplated in and financed by ordinary budgetary funds. For the year
1926-27 as shown in table No. 48, reimbursements to appropriations
amounted to Gdes. 1,442,443.47. This was a moderate increase over the pre-
vious year, when such reimbursements totalled Gdes. 1,208,547.91. Of the
important items to show increases were hospital fees in the Public Health
Service, a contribution from the Rockefeller Foundation of Gdes. 75,000
for the medical school, reimbursements in the Gendarmerie under "opera-
tion and maintenance" of Gdes. 674,066.14, contributions for streets and
parks to the Public Works Service, sales of products by the central experi-
ment station, sales by the Agricultural Service, sales of products of the
reform school and of the Damier Industrial School.
To some extent reimbursements to appropriations merely consisted in
transfers of funds from one department to another. For example, the
Gendarmerie d'Haiti purchases certain supplies in quantity and sells these

TABLE No. 48
REIMBURSEMENTS TO APPROPRIATIONS,
FISCAL YEARS 1925-26 TO 1926-27

1925-26 1 926-27

Gourdes Gourdes
generall Receiver .............. ...... .... ............. .... ............. 1102.15 3.445.9
Public Health Service
Administraton......................... ....... .... .......... 27,069.54 9.725.37
Sanitation and quarantine.............................................. 135.139.06 129,861 94
H hospitals ...................................... ... ... 126.590.67 146.525.91
M medical school......................... .............................................. 75,000.00
Gendarmerie
Rations....................... ... ........ 83.8452.34 49,084.84
Operatics and maintenance..................... ..................624,851.89 674,066.14
Prisons................................ ...... .......... ...... 583.45 129.48
Coast guid........ .................. ... ........ ............. 9093.20 28.829.35
Public Works Service
Streets ~nd parks ............. I..... ............. .....................06.939 127.573.1
W after se vice.... .......... ........................ ..... .. ....... 37,742.57 37.166.15
Materials and supplies ................................................................................
Agricultural Service
Administration..................... ...... ........ ...... ..... ... s21 .00 21 6.8o
Central experimental farm............................. ..... ....... 14, 78.90 29.452.16
Breeding station ................................... ......... ............ 493 50 4,478.70
Sisal plantations............................ : ......................... 5.726.84 8.731.40
Rural fa m schools ................. .... ..... ........................ 2.27 .o09 971.00
Agricultural college.... .................. ............................ 13,243 67 3 1.114.84
Labor
Reform school ............................... ........ ......................... 9.299 8 68,694.60
Elie Dubois school ..................................................... 2.018 85 2,oo00 .6o
J. B. Damier school .... ... .... .. .................. 9.279.00 4.365.88
Industrial school Gonaives..... ...... ...... ...... ........... ..... .. .. i 686.1
Industriji school Jacmel.... .. .. ............ ... ..... 322.20
Total ............... ............... ..... ..... .... ..... 1 .20 8.547.911 1,442.443 47


~ I







HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


supplies as needed to other branches of the Haitian government. Therefore
all reimbursements to appropriations do not represent increased operations
of the government beyond those which are reflected in the tabulation of
expenditures.
To summarize the record of financial administration in Haiti from the
establishment of the receivership, table No. 49 presents total revenues,

TABLE No. 49
REVENUES AND EXPENDITURES AND EXCESS OF REVENUES OR EXPENDITURES
FISCAL YEARS 1916-17 TO 1926-27

Year Revenues Expenditures Surplus Deficit

Gourdes Gourdes Gourdes Gourdes
1916-17.......189 68 70 15 17780 6............. 934,684,884,77.8 3.....
1917-18.............. ....... 6048.390.75 14.614,997.45 1,433.393.30. ....... ...
1918-19............. ....... 29.955.933.45 15.499,48o.45 14.456.453.00 ..
19 9-0 ....... .........3.. 3.997,450.79 20,646,866.25 13,350.584.54 ...............
9 0-21 ................ .... .. 19946,09570 32,788,455.90 ... ..... ..... .. ... 12.842.360.20
i9a1-a ...................... 24.964.795-72 39.775,908.40 ......... 14,811, 12.68
r922-23 .... ...... ....... 31.950,101.24 30,560,113.15 I.389,988.09 .......... ........
1923-24......................... 32,902 321.33 34,215,493.94 ..... 1,313 174.61
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 ..... ......... .
1926-27 ..................... 38.861.534.79 39.747, 6375 ........... 885,628.96
Total ............... 333,413.623.57 323,881.586.19 39.384.313.83 29,852.276.45
Surplus for period............. ........................... 9,532,037.38


total expenditures from revenue and the surplus or deficit from 1916-17
to and including 1926-27. Such receipts amounted to Gdes. 333,413,623.57
and disbursements therefrom reached Gdes. 323,881,586.19, leaving a cumu-
lative surplus of Gdes. 9,532,037.38. For the last five years revenues and ex-
penditures have been in close approximation, indicating that the financial
situation is fully under control. Should the income of the government
rapidly increase there are both the organization to administer larger
expenditures effectively and urgent needs which require satisfaction. Yet
financial arrangements are such that curtailment would be possible, though
not pleasant, in case revenues should fail to continue at the levels of recent
years. The treasury is fortunate to find itself in this position.
Mention may be made of the fact that actual revenue receipts of Gdes.
38,861,534.79 exceeded budget estimates by Gdes. 3,861,534.79. For many
years this has been the case, as estimates of revenue are conservatively
drawn, with the hope and even expectation that they will be exceeded. As
short-time borrowing is not desirable in the case of Haiti, and indeed
would be somewhat difficult because of technical considerations, the
financial authorities consciously plan that permanent charges for running
the government shall always be well within expected revenues, since it
is a simple matter to appropriate such surplus as may be realized for
various and urgent forms of productive improvements, while failure to
reach estimates would result in real embarrassment.
One of the most useful devices in administering the finances of Haiti






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


is what is known within the office as the control sheet of receipts and
expenditures. It is a cumulative record which is opened at the first of each
fiscal year and portrays from month to month the condition of the treasury
as well as the relative activity of the various spending departments of. the
government. The completed control sheet of I926-27 appears in table
No. 50.
Of total expenditures from revenue of Gdes. 39,747,163.75, it is seen
that Gdes. 9,184,486.47 or 23.11 per cent were disbursed in the single
month of October. This was due to the policy of discharging interest and
amortization obligations on account of the public debt at as early a moment
as possible within the fiscal year. Such a policy has resulted in pronounced
economies in debt administration, due to the fact that on each bond pur-
chased within the year prior to the time when its purchase is mandatory
under the several fiscal agency agreements interest of six per cent or more
is terminated. Furthermore, deposit of the entire annual requirements
of interest and amortization on the first day of the fiscal year instead of
by monthly installments as is permitted by the fiscal agency contracts
also results in interest accruals on such deposit. This is in addition to the
early termination of interest charges on the debt by means of amortization
purchases in anticipation of due dates.
Other monthly expenditures during 1926-27 were fairly uniform, ranging
between a minimum of Gdes. 2,377,355.72 during April and a maximum
of Gdes. 3,553,346.51 in September.
Because of the large disbursements for public debt account within the
first month of the fiscal year an important deficit was at once created,
which was decreased during each succeeding month until a surplus of
revenue receipts over expenditures from revenue appeared during April.
Beginning with June the slight surplus had turned to a deficit, this deficit
was almost eliminated during August, but September recorded expenditures
considerably above estimates with the result that there was a deficit of
Gdes. 678,058.02 in that month, and when this was added to the previous
cumulative deficit, the total of excess expenditures for the fiscal year of
Gdes. 885,628.96 was disclosed.

Treasury Position
Asset and liability accounts ir-the case of a government signify even
less than those of a corporation, although the latter are misleading enough
unless the basis for their construction is thoroughly understood. For
several years an attempt has been made to administer Haitian finances in
much the same manner as is adopted for the ordinary corporation. Indeed
it is believed that those business principles which are applicable to successful
corporate management when private capital is at stake are also appropriate
for the protection and utilization of public funds. To be sure, there are
certain exceptions to the foregoing principle. For example, certain irri-








TABLE No. 50

RECEIPTS AND EXPENDITURES, FISCAL YEAR 1926-27'

Receipts


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


Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Customs...... ... ............................. 3,770,458,42 3.534.435.74 3,923,268.01 2,966,878.06 2,886,093.61 2,949.459.94 2,443,025.84 54,385.40 2,149.413.19 2,091,505.76 2,184.434.62 2.516,074.32 33.661,876.23
Internal revenue.......... ...................... 619,800.07 334,831.24 692,584.21 368,626.00 239,575.40 227.247.82 348,982.37 242,178.36 288,941.23 318,798.76 233,102.09 238.620-42 4,153,287.97
Miscellaneous................................... 51,860.80 53,441.65 153,392.35 60,oo1.75 62,040.85 72,427.27 80,737.24 2,246.828.72 81,406.70 171,764.25 84,318.58 120,593.75 1,046.370.59

Total revenue........................... 4,442.119.29 3,922,708.63 4.769,244.57 3,395,505.81 3,187,709.86 3,249.135.03 2,872,745.45 400.00 2,519.761.12 2,582,068.77 2,501,855.29 2,875,288.49 38,861.534.79
Non revenue.................. .............. ...................... ....................... ...................... 200.00 400.00 1,488.00 200.00 2.543,392.48 700.00 6oo00.00 ............... ..................... 3,988.00

Total receipts................................ 4;442,1 19.29 3,922,708.63 4.769,244.57 3,395705. 81 3,188,o1 9.86 3.25o.623.03 2,872,945.45 2.543.792.48 2.520,461.12 2,582,668.77 2,501,855.29 2,875,288.49 38.865.522.79


Expenditures


Public debt :
Financial Adviser-General Receiver..........
Internal Revenue Service.....................
Series A Loan... ................ ....
Series B Loan...............................
Series C Loan........... ..................
Fiduciary Currency ...........................
International Institutions.................
P. C. S. Railroad subvention... ....... .....
Wharf Company subvention..................


October


Gourdes

118,588.29
21,538.64
5,656,918.25
15500000ooo.oo
936,419.35
35,000ooo.oo

6........ 6....


Total Public Debt ..................... 6,876,758.32
Gendarmerie................................... 529,357-73
Foreign Relations ............... ................ 52,267.60
Finance... ..... ............................... 1 8,056.36
Commerce ........................................ 24,521.1 1
Interior ............ ............................... 93,802.42
Public Health Service............................. 393,204.08
Public Works .................................. 3,065.20
Public Works Service........................... 561,.64.02
Justice................................ ...... .... 1 16,443.12
Agriculture............. ......................... 3,654.14
Agricultural Service............................. 195,836.04
Labor........................... .............. 21,489.06
Public Instruction............................... 164,620.89
Religion....................................... 30,246.38

Total Revenue Payments................ 9,184.486.47
Awards of the Claims Commission............. 2,995.00
National Railroad Construction.................. ............
Miscellaneous.................................... 94.994.91

Total payments............................ 9,282,476.38
Pension deductions.............................. 14,055.88

Net payments ............................. 9,268,420.50
Revenue receipts............................. 4,442.1 19.29
Expenditures from revenue...................... 9,184,486.47

Difference................... ................ 4742.367-18**

Cumulative revenue............................. 4.442,119.29
Cumulative payments from revenue............. 9,184.486.47

Difference ..................................- 4,742,367. 8**


November


Gourdes

102,064.46
20,335.40
.......... ......... .
134,562.61

35,000.00
2,340.75



294,303.22
533,266.89
48,575.42
56,859-36
18,713.33
104,871.93
248,015.04
2,538.00
676,878.98
11t ,685.o6
3,205.00
191,403.76
64,676.78
161,781.20
29,470. 16

2,546.244 13


December


Gourdes

117,748.77
23,137.65
.. ... ..........
827,218.95

35,000.00
33.444.30


January


Gourdes

107,368.62
20,533.03
639,000.00
138,708.40
1o6,156.25
35,000.00
5,896.35


384.49....... ......... 52.48
,---- I----~


1,o36,934.16
504.602.06
41,121.29
69,701.92
18,339-52
91,o6o.53
243,675.66
2,785.00
719,356.07
113,692.72
3,730.00
272,339.55
59,788.41
161.371.02
33,907.43

3.372,405.34


1,053,1 15.13
524.495.11
43,201.83
62,957-87
20,624.57
97,899 50
296,127.64
2,677.15
583,558.00
115,699.23
3,527.08
124,958.69
40,738.71
164,163.6o
35,782.53

3,169,526.64
420.00


.................. .................. .. ....
r33,676.48 221,364.oo 332,959.66


2,679,92o.61
9.988.44

2,669.932.17
3,922,708.63
2.546,244.13

+1.376,464.50

8,364,827.92
S173) ,73,30.60


3.593.769.34
9,625.10

3,584,144.24
4,769,244.57
3.372,405.34

+ 1.396,839.23

13.134,072.49
15,103,135.94


-- 3,365.9.2.68** .969.o63.45**


3.502,906.30
8,387.10

3.494.519.20
3.395.505.8
3,169,526.64

+ 225,979.17

16.529,578.30
18,272,662.58


February


Gourdes

S13,873.02
24,296.35



35.000.00
1,365.00

I,o49.51

175,583.88
576,795.43
44,433.09
67,360.82
20,031.63
02,421.o8
283,743.79
2,961.52
623,900.39
115,169.47
3,335-40
I89,101.61
40,290.71
168.359.90
31,716.78

2,435,205.50
4.065.25

519.693.93

2,958.964.68
9,695.75

2,949,268.93
3,187.709.86
2,435.205.50

+ 752,504.36

19.717,288.16
20.707,868.08


March


Gourdes

148,651.33
21,289.16
...... ... .... .. .....
250.548.40

35,000.00
2,977-55

521.28

458.987.72
499.862.61
59,398.62
61,967.75
20,545.04
95,495-97
248.558.63
2,759.85
603,o28.08
114,681.34
3,902.23
161,591-02
46,861.49
169,845.51
31,734-51

2,579,220.37


Gourdes

156,1 21.65
23,297.80
7,986.15
......... ..........
1,338.25
35,000.00
7.65*



223.736.20
551,982.05
43.434.29
74,010.18
19,21o.45
91,523.80
265,799.33
2,945.75
585,209.84
114,813.97
3,333.20
166,481.18
36,162.75
170,005.27
28,707.46

2-377.355.72


406,029.98 403,853.08


2.985.250.35
9,500.57

2.975.749.78
3,249,135.03
2.579,220.37

--669,914.66

22,966,423.19
23,287,088.45


2.781,208.80
9.989.72

2,771,219.08
2.872,745.45
2.377.355.72

+ 495.389.73


May


Gourdes

213,736.85
25,941.99



35,000.00
45.65



274,724.49
612,142.17
44,963.47
6o,135.43
21,727.18
92,491.47
228,488.36
2.678.30
530,169.99
112,942.43
3,698.75
214.812.98
37,148-56
167,911.43
39,157.70

2,443.,92.61


344.852.24

2,788,044.85
8,753.34

2.779.291.51
2.543.392.48
2.443.192.61

+100,199.07


25.839.168.64 28.382,561.12
25.664,444.17 28,10o7636.78

-+ -74.724.47 + 274.924.34


June


Gourdes

187,586.99
20,823.69

148,000.00

35,ooo.oo
35,000,00




391,410.68
576,322.03
45,613.68
58,561.98
19,015.55
94,882.40
253,925.13
2,759.05
582,074.98
I13,741.84
4,057.74
208.644.02
44,392.25
165,276.08
30,059.13

2.590,736.54


July


Gourdes

248,783.89
17,253.62
187,500.00
258,410.75
31,171.90
35.000.00
3,386.20



781,506.36
509,792.98
45,646.32
67,022.94
30.738.64
129,310.94
268,364.35
2,891.57
578,827.27
113,604.55
3.348-75
195,990.75
63,398.92
170,139.53
31,888.99

2.992,472.86


397.262.13 195,394.77

2.987-998.67 3,387.867.63
5.7 1.45 6,582.07

2.982,287.22 3,381,285.56
2.519.761.12 2.582,068.77
2.590.736.54 2,992,472.86

-70,975.42** -41o 4o4.0409

30.902.322.24 33.484.391.01
30,698,373.32 33.690.846.18

+- 203.948.92 --2o6.455.17**


*Credit.
**Deficit.


August


Gourdes

218,104.86
23,140.50
......................
20,574.20

35,000.00




296,819.56
551,663.26
45,126.36
67,847.95
19,271-34
151,918.72
320,294.07
2,615.oo
532,018.92
112,373.02
3,406.55
167.060.47
37,362.45
166,906.33
28,287.06

2.502,971.06


357.117.19

2,860,088.25
5,480.05

2,854,608.20
2,501,855.29
2,502,971.06

1,1 5.77"*

35,986,246.30"
36,193,817.24

297.570.94**


September


Gourdes

545,612.57
64,720.85
152,883.70
132,659.o9
25,416.90
35,000.00
.....................

111,761.3o

1,058,055.41
525,724.23
41.591.65
63,094.07
22,324.70
93,402.23
394.105.78
4,113.15
590,6 1.88
114,504.63
3,840.50
364,160.31
64,890.59
166,339.25
36,586.13

3.553,346.51
535.00

282,223.71

3,836,105.22
5.494.59

3,830,610.63
2,875,288.49
3.553.346.51

678,o58.02"

38,861,534.79
39,747,r63.75

885,628.96**


Gourdes

2,278,241.30
306,308.68
6,637.370.05
2,065,682.40
1.099,239-70
420,000.00
57,629.15

67.463.85

12,931.935.13
6,496.006.55
555,375.62
827,576.63
255,063.06
1,229,080.99
3.444.301,76
34,789-54
7.166,798.42
1.369.351.38
43.039.34
2,452,380.38
557,200.68
1.996,720.01
387.544.26

39,747.163-75
8,o15.25

3,889,422.08

43,644,6o1.08
103,264.o6

43.54 1337.02
38.861,534.79
39,747,163.75
- 885,628.96**

38,861.534.79
39.747.163.75

- 885,628.96"*


--1,743,084.28"* 990,579.92.*" --320,663.26**


I


I







HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


nation projects of great public utility are either too expensive or too slow
in returning a profit to attract private capital. The same is true of such
matters as reforestation and the construction of canals and harbor works.
For all of these purposes government funds are legitimately expendable
though such expenditures would be unattractive from the point of view
of private finance.
In the balance sheet as presented in table No. 51 only cash assets appear.
The state is owner of much valuable property, such as land, buildings and
equipment, and no systematic attempt has as yet been made to compute
the value of these assets. They are, of course, of far greater total than
strictly treasury assets.

TABLE No. 51
ASSETS AND LIABILITIES

ASSETS SepteSeptember 0, Septeber 30, September 30, September 30.
1924 1925 1926 1927
Gourdes Gourdes Gourdes Gourdes
Deposits in Banque Nationale de la Ripub-
lique d'Haiti:
To credit of Haitian government in New
York funds .............................. 9,31 3 741.7 9 573.492'3 .................. ..................
To credit of General Receiver in New
York funds .............................. 14,133.080.84 15,164,625.90 23,060,264.75 20,247,o87.1o
To credit of General Receiver in Haiti ... 4,930,926.91 3,170.778.93 4,867,166.97 3,164,566.17
Cash in hands of disbursing officers............ 86,936.08 118,103.62 300,079.91 158,568.36
Fiduciary currency....................... ..... ................. .584,690.50 2,012.677.50 2,432,677.5*
Advances by the government- reimbursable.. ................ .................. 67,746.81 140,500.00
Total ................................... 28,464.685.53 29,6 1,691.25 30.307.935.94 26,143,399.13
LIABILITIES
Interest internal consolidated debt ..... 200,788.25 442.55 .... .............................
Awards of Claims Commission, debt retire-
ment, public works ........................ 9,313,741.70 9.57349230 3,267,693.50 .................
Extraordinary credits....................... 1,750,476.84 4,o15,791.61 2,795,828.57 746,3A2-92
Liquidation accounts........................... 1,602,905.48 1.412.749.17 1,449,806.59 1,362,625.48
Non revenue credits .......................... 7.254.771.15 4.506,03t.30 6,927,054.25 6,292,363.24
Cash bonds deposited........................... ............ 6 ,164.10 61,964.10 64,664.10
General Receiver's five per cent fund for
customs service ............................ 415.498.73 363,462.14 693,778.52 142.338.19
General Receiver's fifteen per cent fund
for internal revenue service ............... 34,843.28 298,155.99 368,266.33 321,589.74
General Receiver's checks outstanding ......... 393,125.80 1,438,868.20 1,003,674.60 1,952,968.13
Claim unadjusted.............................. ......... .... .... ....... .. .. .... ......... 206,400.00
Fiduciary currency reserve reimbursable .................. 1,584,690.50 2,01o ,677.50 2,432,677.50
Advances by the government-reinmbursable. ........... .......... 67,746.81 140,5oo.oo
Net balance (Cash working balance) ....... 6.998,534.3o 6,367,843.39 11,659,445.17 12,48o,929.83
Total ............. ..................... 28,464.685.53 29,61i .691.25 30,307,935.94 26,143,399.13

Combined cash assets as of September 30, 1927, were Gdes. 26,143,399.13.
This was a decline of Gdes. 4,164,536.81 from September 30, 1926. Most of
the decline occurred in connection with funds in New York, and was due to
the fact that during the year considerable portions of the balance of the
Series A loan, which had .been carried in New York, were expended for
public works. Deposits in Haiti also declined from Gdes. 4,867,166.97 to
Gdes. 3,164,566.17. This was explained by the effort to render productive
as large as possible a proportion of treasury assets. The Banque Nationale
de la Republique d'Haiti pays no interest on deposits of the Haitian gov-
ernment in Haiti. Therefore it is desirable to maintain minimum working
balances in Haiti and to deposit the balance abroad.






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


Even those sums indicated as deposits in Haiti were to a considerable
extent composed of securities rather than cash. This was also true for de-
posits in New York funds.'As none of the securities of the Haitian state are
at present substantially above parity, it follows that six per cent or more
is earned on all sums placed in such bonds.
Funds in the hands of disbursing officers fluctuate widely from month to
month, and the total is of no particular significance, provided it is main-
tained within reasonable bounds.
Haiti formerly issued a considerable quantity of fiduciary currency with-
out creating a proper reserve for its redemption. For several years a reserve
has been in course of accumulation, and in recent years the annual amounts
so put aside have been Gdes. 420.000. The asset shown for fiduciary cur-
rency increased by the foregoing amount during 1926-27. It is entirely pro-
per to show the fiduciary currency fund as an asset, since the currency is
the property of the state, and is legal tender. Gradual diminution by loss
and wear and tear can confidently be predicted, and ultimately the fiduciary
currency reserve will become unobligated cash.
Finally there appears an item of Gdes. 140,500 entitled "Advanced by the
government-reimbursable." As stated elsewhere, the state is attempting to
induce the minor political divisions to take a more active interest in local
affairs. One form such interest may take is the provision of improvements
of local usefulness. However, most of the municipalities of Haiti are not
possessed of substantial financial resources, and their credit is also negli-
gible. Therefore the state has adopted the policy of using its own credit for
assisting municipalities in acquiring productive improvements. Advances
are made from the treasury to a municipality in an amount sufficient to
cover all or part of the cost of an approved project. Interest and repayment
are regulated by contract between the state and the municipality concerned.
In this manner it should be possible to encourage minor political subdi-
visions to proceed with local enterprises, while at the same time reckless
borrowing for useless purposes can be avoided. In all probability advances
by the public treasury to municipalities will substantially increase from
year to year, since the policy is at present in its initial stages.
Every effort is made to construct the balance sheet of the treasury on a
conservative basis. If an asset is of doubtful value it is eliminated. On the
other hand, all possible obligations are carried into liability accounts. There-
fore it is believed that the condition of the Haitian treasury is even more
favorable than appears from the data in table. No. 51.
Reserves for potential expenditures are the outstanding features of the
liability account. Thus the entire amount of extraordinary credits is at once
set up in reserves, although portions of the appropriations may permanently
remain unutilized and although in many instances expenditures from such
appropriations extend beyond the limits of a given fiscal year.






HAITI: REPORT OF FINANCIAL ADVISER---GENERAL RECEIVER


Extraordinary credits on September 30, 1927, were Gdes. 746,342.92, a
sharp reduction from Gdes. 2,795,828.57 at the close of the previous year.
Liquidation accounts in the two years were quite similar, lut reserves for
non-revenue credits declined from Gdes. 6,927,054.25 to Gdes. 6,292,363.24.
Because of extensive developments for improvements to the customs
plant, the General Receiver's five per cent fund fell from Gdes. 693,778.52
to Gdes. 142,338.19. There was also a slight decline of the General Re-
ceiver's fifteen per cent fund for operating the Internal Revenue Service.
Like funds in the hands of disbursing officers, the total of outstanding
checks of the General Receiver is a widely fluctuating figure, largely de-
pending on whether checks for salaries, rentals, and other fixed charges of
the government are promptly presented to the bank for payment. This is
sometimes not possible when the end of a month falls close to a Saturday
or Sunday. At such time outstanding checks on the final day of the month
are largely increased.
For the first time an item denoted "claim unadjusted" occurs in the lia-
bility account. It is Gdes. 206,400.00, and represents the amount which may
eventually be paid as subvention to the Compagnie des Chemins de Fer de
la Plaine du Cul-de-Sac. As explained elsewhere, the item is at present in
controversy.
The liability item for the fiduciary currency reserve and that for advances
by the government are obviously equivalent to similar items in the asset
account.
This office has particularly concerned itself with strengthening the cash
position of the treasury. In earlier years little or no reserve was carried
against such contingencies as disappointing revenues or unforeseen expendi-
tures. For several years, however, systematic attention has been devoted to
enlarging the unobligated cash carried in the treasury, with the result that
on September 30, 1927, such balance was Gdes. 12,480,929.83. a figure
hitherto unapproached at the close of a fiscal year. It compared with Gdes.
11,659,445.17 at the end of the previous year, and represented an increase
of Gdes. 821,484.66 or 7.05 perch ent.
Unobligated cash represented 31.40 per cent of total expenses from reve-
nue of the Haitian government during 1926-27. Few treasuries could present
a cash position which would be relatively as strong as that of Haiti. In fact
in most instances it would not be necessary. but for Haiti large cash reserves
are appropriate because of the undesirability and difficulty of short-term
borrowing. Under present conditions, however, there is no reason further
to strengthen unobligated cash reserves, and the government may properly
spend in productive purposes such revenue as may be received.






HAITI: REPORT OF FINANCIAL ADVISER--GENERAL RECEIVER


Public Debt
By far the best feature in the financial year under discussion was pro-
nounced reduction in the gross and net public debt as shown in table No. 52.
In no previous year has Haiti liquidated such a large proportion of its out-
standing debt, yet this was accomplished in a year when revenues were not
as large as in the two immediately preceding fiscal periods.
Gross debt on September 30, 1927, stood at Gdes. 99,706,855.09. When
compared with Gdes. 108,307,079.30 on September 30, 1926, there was a
reduction of Gdes. 8,600,224.21 or 7.94 per cent. Both in actual reduction
and the proportion of total debt which was eliminated, the year in question
considerably exceeded any previous accomplishment. This statement of
fact requires some explanation. Prior to the flotation of the Series A
loan in 1922, most of the public debt of Haiti was represented by securities
payable in francs. Both during the war and particularly between 1918
and 1922 when the franc loans were converted into dollar obligations the
extensive fluctuation of the gold value of the franc correspondingly affected
the amount of Haiti's debt, as expressed in gold. For example, the apparent
reduction of the debt from Gdes. 146,575,707.85 as of September 30, 1919,
to Gdes. 91,811,051.65 at the close of the subsequent year involved virtually
no repayment of the principal by the Haytian treasury but merely a sharp
recession in the gold value of the franc.

TABLE No. 52
PUBLIC DEBT.

Series A Series B Series C Fidcriary Total
Currency

Gourdes Gourdes Gourdes Gourdes Gourdes
September 30. 1915.. 107,821,656.45 37,185 5.657.6 ................ 8853.754.80 53.861,68.85
September 30. 1916.. 113.455,856.35 38.974237.85 ................. 8,352.663.15 160.782,757.35
September 30. 1917... I 9.o89.179.15 42,o93,154.00o ................ 7,786,974.80 168,969.307.95
September 30, 918.. 124.722.501.95 45,014,560.65 .... ... .. 7.510,837.75 177,247.900.35
September 30. 199... 90o556.562.00 48.774,145.85 ........ 7.245.000.00 146,575.707.85
September 30o 1920. 33,487,414.30 51.078.637.35 ................. 7.245,ooo.oo 9 ,811,o51.65
September 30, r921.. 32.225,464.30 53,oo90.682.40 ............... 6.080.362.50 91,396,509.20
September 30 1922... 33.505.429.95 52.945.770.25 ............ .... 6,o8o0362.50 92.531,562.7o
September 30, g923... 79.235.000.00 25,ooo.ooo.oo00.. ..... 6.080,362.50 o10,315.362.5o
September 30, 1924... 78,242.500.00 23,566,980.60 13,158,711.10 6.080309.50 121.048.501.20
September 30. g925.. 75.183.419.30 21,747,462.30 12,640o072.70 5,660,309.50 115.231.263.8o
September 30, 1926... 71.474.157.35 19.775o074.65 11.825.524.80 5.232,322.50 108,307.079.30
September 30, 1927... 68,939.916.15 14552,976.44 11.401.64o.00 4.812,322.50 99.706,855.o0

Beginning with 1923 all reductions in the nominal amount of Haiti's
public debt represent actual disbursements from the treasury or else the
cancellation of contingent obligations of the state which failed to be
validated.
Few countries present so simple a debt structure as Haiti. Total funded
debt is represented by three issues of securities, identical in counon
rate, period of maturity, security and administration. Two of the issues,
Series A and Series C, are payable in dollars in New York, whereas Series
B is payable in dollars in Haiti. Only one substantial difference exists be-






HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


tween the three issues. Nominal interest of six per cent on the Series B
bonds is subject to the Haitian income tax of ten per cent payable at
source.
Originally the Series A loan was issued in the amount of Gdes. 80,ooo,
ooo.oo. A novel method for its floatation was adopted. Sealed bids were
solicited, and these were opened by representatives of the Haitian govern-
ment under the auspices of the Departement of State in Washington. The
National City Company of New York deposited the most favorable bid,
which was 92.137. This loan was later sold to the public at 96.50. In view
of Haiti's financial history this price can only be regarded as surprisingly
favorable, especially when it is recalled that the loan was floated in 1922 at
a time when interest rates were particularly high.
Stipulations of the loan contract provide that equal miIonthly payments
shall be made to the fiscal agent, such payments to be adequate to meet
interest requirements and to create a sinking fund sufficient to repay the
loan by maturity. Since annual payments by the Haitian government for
debt service are substantially similar, though at a very gradually ascending
scale, it follows that the amounts available for amortization increase during
each successive year as interest requirements are diminished by purchase
of bonds for retirement.
An interesting feature of the loan contract for Series A, which in this
respect is identical with the Series B and C contracts, is to the effect that
when the revenues of Haiti exceed Gdes. 35.000,000 specific percentages
of the excess up to Gdes. 40,000,000 must be devoted to the establishment
of a market fund for additional amortization of the loans, provided bonds
may be purchased at not to exceed par and accrued interest. For the last
three fiscal years operations under the market fund provisions have largely
contributed toward the rapid extinguishment of the public debt, and have
resulted in debt retirement far beyond the proportional amount which would
be sufficient to repay each of the loans at the termination of thirty years.
In fact at the present rate of reduction Haiti will have no public debt within
twenty years.
It has been stated that market fund purchases are authorized only if bonds
can be purchased at not to exceed par and accrued interest. Haiti's credit-
has improved so rapidly that Series A bonds have already sold above par
and, are currently quoted at approximately par. The price of Series C
bonds is only one or two points lower. Therefore the possibility exists that
further increase in market appraisal for these securities will prevent the
utilization of funds which should be available under the fiscal agency con-
tracts, as revenues of the Haitian state are believed to be permanently in
excess of Gdes. 35,000.000.
From an original total of Gdes. 80,ooo,ooo.oo the Series A loan has been
reduced to Gdes. 68,939,916.15, and the reduction during i926.-27 was Gdes.
2,534,241.20 or 3.55 per cent from Gdes. 71,474,i57-35.