Haiti. Bureau de représentant fiscal; Annual report of the fiscal representative for the fiscal year ….: publ., 18th, 19...

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Title:
Haiti. Bureau de représentant fiscal; Annual report of the fiscal representative for the fiscal year ….: publ., 18th, 1933.34 to 24th, 1939-40; 7 vols.,
Physical Description:
Mixed Material
Publisher:
Port-au-Prince, Imprimerie de l’Etat, 1935-.

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General Note:
4-trUS-1933-40
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Hollis 005938280

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University of Florida
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ILLMC
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LLMC31883
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HAITI 0

ANNUAL REPORT #Vrm
OF THE

FISCAL REPRESENTATIVE
FOR THE FISCAL YEAR
OCTOBER, 1938 SEPTEMBER, 1939










HAITI



ANNUAL REPORT

OF THE

FISCAL REPRESENTATIVE


FOR THE FISCAL YEAR

OCTOBER, 1938 SEPTEMBER, 1939




SUBMITTED TO THE SECRETARY OF STATE FOR FINANCE,
AND THE SECRETARY OF STATE FOR COMMERCE OF
THE REPUBLIC OF HAITI, AND THE SECRETARY
OF STATE OF THE UNITED STATES OF AMERICA.






S. DE LA RUE
Fiscal Representative.

REX A. PIXLEY
Deputy Fiscal Representative.

J. C. CRADDOCK
Inspector General of Internal Revenue.






Imprimerie de I'Etat
PORT-AU.PRINCE, HAITI


/ /.('







CONTENTS



Foreign Commerce ......................................................... ................................ 7
Origin of Imports............................................................................................. 9
Destination of Exports.......................................................................................... 17
Balance of Trade and Some Observations on the Balance of Payments............... 20
Ports of Entry for Imports.................................................................................... 28
Ports of Shipment for Exports.............................................. ......................... 29
Shipping ......................................................................................................... 31
Tourist Trade...................................................................................................... 35
Foreign Commerce by M onths........................................................................... 37
Commodities Imported ...................................................................................... .... 39
Commodities Exported ............................................................... .......................... 46
Coffee ......... .... ....................................................................................... 47
Cotton ................................................ ............................................... 50
Sugar ............................................................ ....................................... 52
Sisal .......................................................... ....... ................................. 53
Bananas ........................................ ................ ....................................... 54
Other Exports ............................................................................ ....... 56
Commercial Conventions................................................. ................................ 57
Tariff M modifications ........................................................ ............................... 61
Customs Administration........................................................................................ 62
Internal Revenue Inspection Service....................................... ........................ 63
Government Revenues............................................................................................ 63
Total Revenues ........................................................ ............................. 63
Customs Receipts ................................................................................... 66
Internal Revenue Receipts......................................... ............................ 69
M miscellaneous Receipts ............................................................................... -72
Government Expenditures........................................ ........ ........... .... ............ 73
Public W orks Program.............................................. ........................... 78
Customs Service ........................................................................................ 88
Internal Revenue Service............................................. ........................ 88
Treasury Position....................................................... .................................... 89
Public Debt ................................................................................................... .... 91
Service of Payments.................................................. ................................... 93
Supplies ......................................... ................... ............................................. 94
The Budget and Financial Legislation............................................................. 95
Banking and Credit............................................................................................... 100
Currency ................................... ...................................................................... 101
Claims ............................................................................................................. 101
Personnel ......................................................................................................... 102
Conclusion ....................................................................................................... 102
Tables ............................................................ ............................................... 109
Annex: Report of the Inspection General, Internal Revenue Inspection Service.... 151
Expenditures .............................................................................................. 153
Personnel .................................................................................................... 154
Internal Revenue Receipts............................................................................ 154
Conclusion .................................................................................................. 157
Tables ..................................................................................................... 159
Appendix: Schedules ............................................... ........................................ 165






IV STATISTICAL EXHIBITS
TABLES Pages
1. Value of Imports and Exports, and Excess of Imports or Exports, fiscal
years 1916-17 to 1938-39................................................................ 111
--2. Value of Imports showing countries of origin in percentages, fiscal years
1916-17 to 1938-39......................................................................... 111
3. Value of Exports showing countries of destination in percentages, fiscal
years 1916-17 to 1938-39...................................................................... 112
4. Value of Total Foreign Commerce by countries in percentages, fiscal years
1916-17 to 1938-39 ................................................................................ 112
:5. Value and Percentages of Value of Imports, Exports and Total Foreign
S Commerce by countries, fiscal year 1938-39......................................... 113
*-6. Value of Imports by Ports of Entry, fiscal years 1916-17 to 1938-39........ 114
*7. Value of Exports by Ports of Shipment, fiscal years 1916-17 to 1938-39.. 114
-.8. Value and Percentage of Value of Imports, Exports and Total Foreign
Commerce by ports, fiscal year 1939............. ...................... 114
* '9. Net tonnage of Steam and Motor Vessels in Foreign Commerce Entered by
Z*, Registry and Months, fiscal year 1938-39................................................ 115
*10. Net Tonnage of Sailing Vessels in Foreign Commerce Entered by Registry
S and Months, fiscal year 1938-39............................................................ 116
L11. Value of Imports by Registry of Carrying Vessels, fiscal year 1938-39.... 117
;12. Value of Exports by Registry of Carrying Vessels, fiscal year 1938-39.... 118
*13. Value of Imports by Months and Ports of Entry, fiscal year 1938-39
S compared with 1937-38... ....................................... 119'
:14. Value of Exports by Months and Ports of Shipment, fiscal year 1938-39
-. com pared w ith 1937-38........................................................................... 120
1:5. Value of Imports by Commodities, fiscal year 1916-17 to 1938-39............ 121
.16. Quantity of Imports by Commodities, fiscal years 1916-17 to 1938-39........ 122
17. Value of Exports by Commodities, fiscal years 1916-17 to 1938-39........ 123
18. Quantity of Exports by Commodities, fiscal years 1916-17 to 1938-39.... 123
19. Quantity and Value of Five Principal Exports by ports, fiscal year 1938-39
compared with 1937-38............................................................................. 124
-.20. Percentage of Value of Exports by Commodities, fiscal years 1916-17
: to 1938-39 .................................................................................................. 126
'21. Quantity and Value of Exports by Commodities and Months, fiscal year
1938-39 .................................................................................................... 126
:22. Operating Fund of the Fiscal Representative, fiscal years 1916-17 to
1938-39 ................................................................................................... 127
:-23. Expenses of Fiscal Representative, fiscal years 1916-17 to 1938-39........ 127
24. Classification of Total Expenditures ofthe Fiscal Representative, fiscal
year 1938-39 .......................................................................................... 128
25. Classification of Administration and Operation Expenditures of the Fiscal
S Representative, fiscal year .1938-39....................................................... 128
26. .Distribution of Expenditures form the Operating Fund of the Fiscal Re-
presentative, fiscal year 1938-39............................................................ 129
*27. Cost of Customs Operations by Ports and Cost of Administration, Repairs
and Maintenance, Acquisition of Property, and Fixed Charges, fiscal
year 1938-39 .......................................................................................... 130
28. Total Cost of Collecting each Gourde of Customs Receipts, fiscal years
1919 -20 to 1938-39.................................................................................. 131
29. Operating Allowance of Internal Revenue Service, fiscal years 1923-24
to 1938-39................................................................................................ 131
30. Revenues of Haiti by Sources, fiscal years 1889-90 to 1938-39............. 132
31. Relation between Import and Export Values and Customs Receipts, fiscal
years 1916-17 to 1938-39........................................................................ 133





STATISTICAL EXHIBITS V
Pages
32. Customs Receipts by Months, fiscal years 1916-17 to 1938-39.............. 134
33. Customs Receipts by Ports, fiscal years 1916-17 to 1938-39.................. 135
34. Customs Receipts by Sources and Ports, fiscal year 1938-39................... 136
35. Customs Receipts by Sources and by Months, fiscal year 1938-39............ 136
36. Distribution of Customs Receipts, fiscal years 1916-17 to 1938-39........... 137
37. Miscellaneous Receipts by Sources and Months, and Ports, fiscal year
1938-39 .................................................................................................. 137
38. Total Receipts of Haitian Government by Sources, Months and Ports,
fiscal year 1938-39................................................. .......................... 13
39. Ordinary, Supplementary and Extraordinary Appropriations from Revenue,
fiscal years 1934-35 to 1938-39............................................................ 139
40. Revenues and Expenditures, fiscal years 1934-35 to 1938-39................... 140
41. Functional Classification of Expenditures, fiscal year 1938-39.............. 141
42. Classification of Total Expenditures by Departments and Services, fiscal
year 1938-39 .............................................................................................. 142
43. Classification of Administration and Operation Expenditures by Depart-
ments and Services, fiscal year 1938-39................................................ 143
44. Reimbursements to Appropriations, fiscal year 1933-34 to 1938-39............ 144
45. Receipts and Expenditures, fiscal year 1938-39..................................... 145
46. Revenues and Expenditures and Excess of Revenues' or Expenditures,
fiscal years 1916-17 to 1938-39............................................................ 146
47. Treasury Assets and Liaoilities............................................................... 146
48. Public D ebt ................................................................................................ 147
49. Expenditures from Revenue for the Public Debt and Relation of such
Expenditures to Revenue Receipts, fiscal years 1936-37 to 1938-39.... 147
50. Profit and Loss Statement, Bureau of Supplies, fiscal year 1938-39...... 148
51. Balance Sheet, Bureau of Supplies......................................................... 148
52. Notes of the Banque 'Nationale in Circulation, by Months, fiscal years
1919-20 to 1938-39................................................................................. 149
53. Loans and Deposits of Banks in Haiti by Months, fiscal year 1938-39.... 149
CHARTS
1. Value of Total Imports and Total Exports, by Months, fiscal years 1930-31
to 1938-39 ...................................................... ............................... 3
2. Quantities of Leading Commodities Exported and Imported, fiscal years
1916-17 to 1938-39............................................. ........................... 42
3. Average Coffee Prices, F.O.B. Haitian ports, fiscal years 1916-17 to
1938-39 ........................................................... ................................ 49
4. Quantities of Bananas Exported, by Months, fiscal years 1931-32 to
1938-39 .......................................................... ................................ 55
5. Total Revenue Receipts ol Haiti and Expenditures from Revenues, fiscal
years 1916-17 to 1938-39..................................................................... 64
ANNEX: INTERNAL REVENUE SERVICE
TABLES
1. Internal Revenue Receipts by Sources, fiscal years 1935-36 to 1938-39.... 161
2. Internal Revenue Receipts by Collection Prefectures, fiscal years 1935-36
to 1938-39................................................................................................ 162
3. Internal Revenue Receipts by Sources and Prefectures, fiscal year 1938-39 163
4. Internal Revenue Receipts by Sources and Months, fiscal year 1938-39.... 164
APPENDIX: SCHEDULES
1. Quantity and Value of Imports into Haiti by Countries of Origin........... 167
2. Quantity and Value of Exports from Haiti by Countries of Destination.... 197
3.. Customs Receipts by Sources, by Ports and by Months, fiscal year 1938-39 206





















HAITI
ANNUAL REPORT OF THE FISCAL REPRESENTATIVE
FOR THE FISCAL YEAR
OCTOBER, 1938-SEPTEMBER, 1939.








HAITI

ANNUAL REPORT OF THE FISCAL REPRESENTATIVE

FOR THE FISCAL YEAR

OCTOBER 1938 SEPTEMBER 1939


OFFICE OF THE FISCAL REPRESENTATIVE

Port-au-Prince, Haiti, December 30, 1939.

THE SECRETARY OF STATE OF THE UNITED STATES OF AMERICA.
THE SECRETARY OF STATE FOR FINANCE OF THE REPUBLIC OF HAITI.
THE SECRETARY OF STATE FOR COMMERCE OF THE REPUBLIC OF
HAITI.

Sirs:
I have the honor to transmit herewith the twenty-third annual report on
the commerce and finance of the Republic of Haiti. The report covers the
fiscal year ending September 30, 1939, supplementing and enlarging upon
the monthly reports required by Article VIII of the Agreement of August
7, 1933, between the United States of America and the Republic of Haiti.
Government revenues for the fiscal year amounted to Gdes. 31,145,584.29.
In the preceding fiscal year government reveni:es totalled G. 28,109,488.87.
Expenditures from revenues during the fiscal year 1938-39 were Gdes.
29,584,799.38. In the fiscal year 1937-38 expenditures from revenues had
been Gdes. 28,940,782.51. Thus, wh;le Government receipts increased
by Gdes. 3,036,095.42 over the previous year, government expenditures
froTi revenue only increased by Gdes. 644.016.87.
Revenue receipts' during the fiscal year compare favorably with the
preceding year, but it should be quickly added that receipts in the year with
which comparison is made were at a lower level, with one exception, than
in any year during the last seventeen. If any satisfaction were felt with
the results obtained in the way of increased revenues, it would disappear
upon comparison of revenues for the year with revenues previously
considered normal; or comparison with the amount of revenue necessary
to finance all ordinary functions of the government including full service
of the public debt. The satisfaction which can be derived from the year's
result is that which comes from the fact that there was improvement, and
the inference to be drawn from such improvement, supported as it is by





2 HAITI: REPORT OF FISCAL REPRESENTATIVE

other evidence, that measures have been put into operation which, should
in due course of time, and barring unforseen circumstances, slowly restore
commerce, trade, and government revenues to the necessary level. Further,
it must be admitted that at least one million gourdes of these revenues
represent customs duties on importations of goods bought in anticipation
of higher war-time prices. To this extent we may anticipate lowered receipts
in the first part of the new fiscal year.
Receipts being Gdes. 31,145,584.29 and expenditures Gdes. 29,584,799.38
an operating surplus of Gdes. 1,560,784.91 for the fiscal year was recorded.
Included in expenditures was full payment of interest on the public debt
but in accordance with the arrangements made concerning the partial
moratorium on 'sinking fund service only Gdes. 102.657.55 were paid for
amortization of Series A and C bonds.
As the government of Haiti receives over 80 per cent of its revenues from
customs duties, the explanation for the relatively better financial showing
is of course to be found in the improved condition of foreign trade. Total
foreign commerce values for the year reached Gdes. 77,241.858 as compared
with Gdes. 72,705,841 in the preceding year.
While the total value of Haitian exports did not by any means approach
the level attained before the decline of the last few years in commodity
prices, considerable satisfaction is nevertheless to be found, in the fact that
exportation of bananas, sisal, and sugar reached record volume during the
fiscal year; while the volume of coffee exported exceeded the quantity
exported in either of the two previous fiscal years; and the decline in the
volume of cotton exported was slight.
SSince world commodity prices are beyond Haiti's control, increasing the
volume of its exports is the only means open to effect economic recovery
and to attain again a position which will' permit Haiti to make full amorti-
zation payments on its public debt. From the new records in volume of
exportation established during the fiscal year it cannot be denied that in
the direction of increased exports Haiti is meeting with some measure of
success. Unhappily substantial increase in volume can be and in recent years
has been, offset by declining commodity prices.
SIn volume coffee exportation reached 29,283,933 kilos. Approximately
twenty-five million kilos were exported in each of the two previous years.
Despite this comparative increase it is nevertheless striking that, after two
years during which the volume of coffee harvested was far below normal,
the crop in the third year should still be below the average attained only a
few years ago. Prior to the last three years a coffee crop between thirty-one
and thirty-two million kilos was considered to be a normal harvest, in fact
coffee exports averaged 31,311,467 kilos per year from 1926-27 through
1935-36, that is to say, over the ten year period preceding the low crops
of the last three years. During the five years from 1921-22 to 1925-26 the
average had been 32,060,107 kilos.





HAITI: REPORT OF FISCAL REPRESENTATIVE


Statements regarding annual coffee production must be made with the
greatest caution since the yearly crop is subject to such wide fluctuation
that one abnormal crop or several successive abnormal crops can easily
change what would have previously appeared to be the normal level of
production. Nevertheless, the increasing frequency of crops below previous-
ly established averages, and the infrequency of crops previously considered
normal, or above, leave no doubt that for some time past production of
coffee in Haiti has been declining. A satisfactory explanation of the exact
cause or causes of the decline cannot be set forth with accuracy. The
effect of long term climatic cycles on the yield of coffee tree has been
mentioned as being important, but this cannot be convincingly established.
The uncertainty which existed a few years ago whether future coffee crops
could be marketed'had its unfortunate influence upon production. The
increase in population considered in connection with the pronounced de-
crease in importation of foodstuffs during recent years points to' the,
probability that the interest of peasant cultivators in increased, food crop
cultivation is partially at the expense of coffee.
Banana cultivation is increasing and although necessarily there need be
no competition between bananas and coffee, since the best crops of each are
produced in different altitudes and there are sufficient areas of land available
and suitable to the cultivation of each crop in its proper altitude, still it is
quite possible that the small farmers may be looking more and more to
bananas as their pay crop. in those overlapping areas where both crops can
and: do grow.
Unfortunately, there are no statistics available on coffee acreage which
would help to fix the importance of ihese various considerations with any-
thing approaching mathematical precision. It can be said safely that the
most immediate causes of the decline stem from the consistently downward
trend in price over the last fifteen years. The high point in prices for
Haitian coffee was reached in 1924-25. In that year average monthly prices
for Haitian coffee ranged from Gdes. 2.25 to Gdes. 2.70 per kilo. Since then,
interrupted by a few unimportant upward swings here and there, the general
trend has been consistently downward. The price decline which followed-
the change by Brazil in November 1937 in its valorisation policy was not
the most extensive decline of recent years, as for instance the decline of
1929-30. but it was the most disastrous because with a price trend down-
ward from 1928, the sudden decline of 1937 struck at market levels already
near to minimum production costs. Preceding declines had repeatedly cut
the margin between production cost and selling price.
This price decline supplied the logic for a movement away from coffee
production. But so far as Haiti is concerned there is a better solution to
the problem. The quality of Haitian coffee has lpng been obscured by faulty
preparation, whereas its intrinsic characteristics entitle it to occupy a high
rank among quality coffees. Rapid progress is being made in correcting





HAITI: REPORT OF FISCAL REPRESENTATIVE


coffee preparation and as production is .directed more and more towards
the higher altitudes where the best Haitian coffee is grown, the premium
Haitian coffee can enjoy will place coffee producers here in an enviable
position from a competitive point of view. Particularly is this true since
the costs of production under the Haitian peasant system of cultivation are
lower than the plantation system of other countries can be.
Convinced that the downward trend in coffee production can be reversed
and that a substantially .higher yearly average of annual production can be
reached without sacrificing banana development, or infringing in any way
upon the production of food or any other crops, the government in recent
years has undertaken and is pursuing with increasing vigor, a campaign
with the following aims: (1) to make secure a market for Haitian coffee
which will be at all times as free from interruptions, as -it can be made;
(2) to educate coffee growers and the industry in general to prepare their
products to meet the market requirements and obtain the best prices;. and
(3) to increase coffee acreage in those high altitude areas not now under
cultivation, and which can produce the best quality coffee.
The results already obtained by the introduction of better methods of
harvest and preparation will be noted in greater detail in the section of this
report on coffee. In that section also the success obtained in the solution
of the marketing problem will be dealt with.
Results from the measures taken to increase the volume of production by
expanding coffee acreage will only become apparent later. It takes coffee
trees five years to mature from seed. Naturally in planting seedlings one
to two years are saved at the plantations. Haiti has land in high altitudes
which produces a quality coffee commanding a preferred place in coffee
markets. Large areas .of such land are still undeveloped. Among the
Government's measures directed towards planting coffee in these areas was
the establishment during the year of seven new nurseries widely distributed
throughout the best coffee producing areas of the country.
Lessened activity of the boll weevil permitted cotton exports to reach a
total of 4,671,839 kilos. Cotton was Haiti's second export crop in im-
portance for many years, but in the fiscal year just ended the value of sugar
exported exceeded the value of cotton exports. Since the coming of the
boll weevil to Haiti the volume of cotton exportation has been declining
at a rate averaging about fifteen per cent each year. It is therefore cause for
satisfaction that the decline this year was only 10,000 kilos, an amount
which represents a trifle over one fifth of one per cent of the quantity
exported in the previous year. Cotton prices, however, have continued to
drop and although the quantity of cotton exported decreased by the small
percentage mentioned, the export value dropped by sixteen per cent.
World sugar quotas were relaxed during the latter part of the fiscal
year and the result was the shipment of the arrestt quantity of sugar
ever exported from Haiti in a single fiscal year. Unfortunately the larger





HAITI: REPORT OF FISCAL REPRESENTATIVE 5 -

part of the crop had been disposed of in the earlier months of the year and-
but little advantage was gained from the rise in price, which occurred,.
during the latter part of the fiscal year.
Sisal prices continued low and the value of the sisal crop was disappoint-.
ing. Particularly so, .since the volume of sisal shipped reached 7,492,062:
kilos, a quantity never 'before attained.
The progress of banana production was evidenced by the exportation of
2,029,767 stems valued at Gdes. 2,820,679. -A new record for exportation
of bananas was established both for volume and in value. In the preceding
year, 1,363,176 stems valued at Gdes. 2,001,128 had been exported.
During the fiscal period foreign goods valued at Gdes. 40,903,683 were"
imported into Haiti while Haitian exports were valued at Gdes. 36,338,175.
Imports exceeded exports in value for the third successive year. The last-
year in which there was an export balance was 1935-36. Since residuary pur-
chasing power, which in Haiti is never excessive, carried over from that
year must have been exhausted during the two intervening years of import "
balances, the purchasing power sustaining importation at a level above
exportation in the year just passed must be ascribed to invisible exports and
particularly to expenditures under the public works contract.
The yield from the import tariff was Gdes. 20,766,477.70 during the year'
while export duties returned Gdes. 4,789,876.20. There were no important
rate changes in either the import or export tariff schedules during the fiscal
year. It was, however, the first full fiscal period under the lowered rates of
export duties on coffee. This accounts for the fact that a higher proportion
of total customs receipts came from import duties and a correspondingly
lower proportion from export duties than recorded in any previous fiscal
year.
Internal revenues during the fiscal year reached Gdes. 5,022,019.59. The
amount collected in the previous fiscal year was Gdes. 4,990,787.28. Although
the increase over the preceding year was slight it is of interest to note that
it was the first fiscal year since 1933-34 in which internal revenues have
exceeded Gdes. 5,000,000. There have been but minor changes in internal
revenue legislation since the enactments of January 13, 1938, discussed in
the last annual report.
The estimate of revenues at the beginning of the year waz.s G. 29,189,000.
IZevenues exceeded these estimates by Gdes. 1,956,584. Of this amount
however as has been noted previously not less than one million gourdes
is to be considered as having been received from imports which were ordered
in anticipation of war-time prices and which under normal conditions would
not have been received until the first months of the next fiscal year.
For the fiscal year 1939-40 Haiti has again adopted a budget in the sum
of Gdes. 29,189,000. Since revenue estimates were made war has broken
out in Europe. There is no denying the serious effects of the last world war





HAITI: REPORT OF FISCAL REPRESENTATIVE


upon Haitian commerce. However in 1914 Haiti was almost entirely de-
pendent upon the European market for disposal of its coffee, and coffee at
that time represented a greater proportion of total exportation than it does at
present. During the world war of 1914-18 coffee piled up in the warehouses
for lack of buyers and for lack of ships to carry it to new markets had they
been opened. It is confidently believed the present war will have no such
disastrous effects upon Haitian exports. Foresight in developing export
products other than coffee and markets for them as well as new outlets for
coffee has put Haiti in a vastly changed position today. For example, none
ofHaiti's banana production, and but little of its sisal have been marketed
in Europe. The American market has been absorbing increasing quantities
of Haitian coffee. Nevertheless a not inconsiderable portion of Haiti's
products, particularly coffee, has still gone to Europe in recent years, and
upon successfully marketing that portion of Haiti's production, and of
course upon the commodity prices obtainable, will depend success in reach-
ing the estimates of revenue predicted in the budget.
Since it appeared uncertain that revenues would increase during The fiscal
year 1939-40 in an amount sufficient to balance receipts and expenditures.
and still service the public debt in the full amount provided in the loan
contracts, without curtailing essential government functions, a new accord
was entered into July 8, 1939, which continues the period of reduced amor-
tization payments to September 30, 1940, with a provision for setting aside
additional amounts if revenues exceed Gdes. 29,189,000 and such revenues
have not been used for emergencies recognized as such.
At the beginning of the fiscal year the gross public debt was Gdes.
43,950,094.29 and at the year-end stood at Gdes. 52,137,491.99. The increase
resulted from foreign borrowing over and above the amounts paid in amor-
tization of previously outstanding indebtedness. The occasion for the new
borrowing was the public works contract.
The progress made in providing Haiti with improved roads and trails,
bridges, wharves, irrigation and drainage systems, better municipal water
systems, and' other public works, under the J. G. White contract will be
reported upon in detail under Government Expenditures.
The program is making unmistakable progress towards supplying Haiti
with those public facilities considered indispensable to economic life in most
modern countries. Irrigation and drainage projects are opening up new areas
to agriculture, while better transportation facilities are making the develop-
ment of new areas more attractive from an economic point of view. In a
relatively short period of years the aid which the agricultural program is
bringing to the small farmers by providing them with seed, and properly
started seedlings of coffee, coconuts, limes, etc. will become manifest. To
cite one additional example of aid given the small planters under the
agricultural activities of the program 75,000 pounds of seed rice were





HAITI: REPORT OF FISCAL REPRESENTATIVE


distributed to small farmers in the Artibonite valley. The planting was
supervised and planters were instructed and aided in the proper irrigation
and drainage of their rice fields.
Summary of the year's results would be incomplete without mention of
the developing prospects for improvement in the welfare of the population.
While the standard of living of the masses leaves much indeed to be desired,
it is nevertheless true that the outlook for general improvement is much
better .than it was a year and a half, or two years ago. The distressing
conditions which followed the November 1937 crash in coffee prices and
the return of thousands of Haitian emigrants and penniless refugees
threatened for a time to nullify such progress as had been achieved in recent
years towards better living conditions. The public works program has. not
only afforded opportunities of direct employment but has opened up new
opportunities for gainful employment and investment in those areas where
works have been executed.
The employment of many workers under the program has been an
important factor in the partial restoration of the purchasing power of the
country during the past year, and has played a very important part in
reviving business within the country and maintaining imports and import
revenues.
Foreign Commerce
In view of the political unrest and business uncertainty prevailing
throughout the world at the beginning of the past year, and the precarious
conditions surrounding foreign markets, more particularly in those countries
where heretofore Haiti had sold the greater part of its coffee, sugar and
cotton, a substantial increase in Haitian foreign commerce over that of the
previous year was not anticipated. However, a careful' survey of the situa-
tion and the economic development of the country at the beginning of
1938-1939, led to the hope that the low level of Haiti's foreign trade might
have been. reached in 1937-1938.
The fiscal year just closed has demonstrated the accuracy of this fore-
view. From Gdes. 72,705,841 in 1937-1938, the value of foreign commerce
increased to Gdes. 77,241,858 in 1938-1939. Imports accounted for Gdes.
40,903,683 of this amount, and exports for Gdes. 36,338,175.
Low prices throughout the year kept export values below the figures
which were reasonably anticipated from production volume which generally
had either increased or was at least equal to that of the previous year.
Coffee exports increased by 17 per cent in volume but their value only by
8 per cent. Exports of cacao rose in quantity by 15 per cent and diminished
in value by 12 per cent. Shipments of cotton were only 0.21 per cent less
than those of 1937-1938, yet there was a decrease of 16 per cent in the value
of that crop. In the case of bananas and sugar the increase in average value
for the year kept pace with the increase in quantities exported.





HAITI: REPORT OF FISCAL REPRESENTATIVE


.. The excess of import values over export values was Gdes. 4,565,508, and
import values for 1938-1939. exceeded those of 1937-1938 by Gdes. 2,929,794.
In the years 1936-1937 and 1937-1938, Haiti accumulated an unfavorable
trade balance of..Gdes. 4,463,147. Thus for three consecutive years the
balance of trade has been adverse.
.. As was the case last year the United States led all other countries taking
a larger share of Haiti's foreign trade than ever before. The United States
sold to Haiti in 1938-1939, goods valued at Gdes. 25,464,010, and purchased
Haitian products valued at Gdes. 12,511,033. This represents 62.26 per
cent of Haiti's imports, 34.43 per cen of its exports and 49.18 per cent of
its total trade.
- Second in Haiti's foreign trade this year was the United Kingdom whose
share of Haiti's foreign trade was 14.78 per cent. Commerce with that
country was valued at Gdes. 11,414,253. Of this amount Gdes. 4,552,097
was accounted for by imports, representing 11.13 per cent of the total import
values for the year, and Gdes. 6,862,156 were credited to exports, account-
ing for 18.88 percent of the total.
In third place stood France with 12.57 per cent of total, trade valued Gdes.
9,710,207. This country furnished 5.12 per cent.of all imports, valued Gdes.
2,095,663, and purchased 20.96 per cent of all exports, with a value of Gdes.
7,614,544.
Belgium took fourth place with trade valued at Gdes." 4,845,036 or 6.27
per cent of the total. Imports from Belgium valued at Gdes. 1,106,624
represented 2.71 per cent of Haiti's purchases abroad, and Belgium was
the country of destination of 10.29 per cent of exports, valued at Gdes.
3,738,412.
Exports from Haiti to the United States continued to. increase both. in
quantity, and in value.
Imports from the United States have been gradually rising-in value and
volume for the past few years. The outbreak of war in Europe on September
2. 1939, it is to be expected, will increase this trend in Haiti's.import trade.
As trade with Europe becomes more difficult because of war time restrictions
on imports, lack of cargo space, and higher freight rates, more and more
of Haiti's export products will be shipped to the United States. The wisdom
of the efforts made to develop .American markets for Haitian products is
becoming more and more apparent.
The ever increasing predominance of the United States in Haiti's foreign
trade is not due only to the geographical proximity of the two countries
but results inevitably from the fact that there is no exchange problem and
with the exception of sugar and cotton, it offers the most unrestricted
great market for the commodities Haiti now produces anid will produce in
the future.
Haiti is a semi tropical country and its export products are competitive
with those of similarly situated lands. As the tropical colonies of Haiti's





HAITI: REPORT OF FISCAL REPRESENTATIVE


SEuropean customers develop they produce more of the commodities now
,purchased from Haiti. The day is not far distant when most of Haiti's one
time principal markets in Europe will be closed by the present policy of
tariff barriers designed to protect the colonial products of the countries to
which Haiti now sells.
Haiti's future prosperity depends, therefore, in finding and keeping an
outlet for its products, in free competition with the other tropical countries
of the world.
Origin of Imports
The United States during 1937-1938 furnished 54.31 per cent of total
imports. During the fiscal year 1938-1939, Haiti imported from the United
States 62.26 per cent of its total imports, valued at Gdes. 25,464,010. The
United Kingdom furnished this year 11.13 per cent of ill imports, valued
at Gdes. 4,552,097. As was the case last year, Germany was third in order
of importance, supplying 5.65 per cent of imports, valued at Gdes. 2,311,611.
France this year took fourth place, following closely behind Germany with
5.12 per cent of total imports, valued at Gdes. 2,095,663. Other countries
furnishing over one per cent of total imports were: Belgium (2.71) ; Japan,
(2.38); Canada, (1.76); Curaqao, (1.74); The Netherlands, (1.58). The
remaining 8.05 per cent of imports was distributed between 65 other
countries.
The United States, the United Kingdom and Germany held the same
relative position this year in the Haitian import trade as they did in 1937-
1938, while Japan which was in fourth place during 1937-1938 fell to sixth
place. The percentage of Haiti's imports furnished by France this year
took a decided upward turn, placing France fourth in order of Importance
in the import trade.
SThere was a marked increase in imports from the United States as shown
by comparison with the 1937-1938 figures.. In 1937-1938, imports from that
country were valued at Gdes. 20,627,627. During the year under review
American sales to Haiti were valued at Gdes. 25,464,010. Import trade with
Britain declined from, Gdes. 5,879,615 in 1937-1938 to Gdes. 4,552,097 in
1938-1939, a. decrease of 22.6 per cent.
Germany's share of total imports was slightly below the value recorded
in 1937-1938. During that year purchases from Germany were valued at
Gdes. 2,441,699. In 1938-1939, the value was Gdes. 2,311,611. The decrease
in value was 5.3 per cent.
Imports from France in 1937-1938 amounted to Gdes. 1,260,719 in value.
During 1938-1939, the value of French sales to Haiti was Gdes. 2,095,663.
The increase over the 1937-1938 figures was 66.2 per cent.
While the percentage of total imports furnished by Belgium declined
from 2.87 per cent in 1937-1938 to 2.71 per cent in 1938-1939, the value of
Haiti's purchases rose for these two years from Gdes. 1,090,291 to 1,106,624.





HAITI: REPORT OF FISCAL REPRESENTATIVE


Imports from Japan declined in value from Gdes. 2,021,739 in 1937-1938
to Gdes. 972,768 in 1938-1939.
Trade with the British Commonwealth declined from 19.01 per cent of
total imports last year to 13.78 per cent in 1938-1939. Sales to Haiti by the
British Empire were valued in 1937-1938 at Gdes. 7,216,251, and in 1938-
1939, at Gdes. 5,639,115.
The United States furnished to Haiti during 1938-1939, agricultural
machinery, tools, and implements valued at Gdes. 225,110, representing 43.43
per cent of the total value of imports of this category. The United Kingdom
took second place with 30.72 per cent of the total of similar imports valued
at Gdes. 159,195, and Germany was third in importance as a source of supply
of goods under this category with 20.16 per cent, valued at Gdes. 104,495.
Imports of agricultural machinery, tools and implements in 1937-1938,
came largely from three countries, the United States, 36.55 per cent, value,
Gdes. 283,604; Germany, 28.77 per cent, value, Gdes. 223,261 and the United
Kingdom 25.96 per cent, value, Gdes. 201,400.
Passenger automobiles, as is usual were imported chiefly from the United
States. During the year under review 157 of these were imported from that
country, valued at Gdes. 704,104. This comprised 98.92 per cent of all auto-
mobiles imported. In 1937-38, 111 automobiles valued at Gdes. 509,561 were
imported from the United States. This was 98.96 per cent of total impor-
tations. A total of 176 motor trucks were imported during the year, one
valued at Gdes. 6,600 from Germany and the other 175, valued at Gdes.
846,883 from the United States. During 1937-1938, all but one of the 95
trucks imported were of American origin.
During 1938-39 the United States furnished 44.80 per cent of the cement
imported, with a value of Gdes. 347.814 Germany supplied 37.23 per cent,
valued at Odes. 289,046 and the remaining 17.97 per cent, valued at Gdes.
139,482, was purchased from Belgium. During the last fiscal year 87.04
per cent of the cement purchased, valued at Gdes. 280.322, was furnished
by Germany. The United States supplied 9.46 per cent, value, Gdes. 30,467,
and imports of this comnmtdity from Belgium accounted for 3.50 per cent,
valued at Gdes. 11,259.
Imports of patent medicines from the United States comprised 32.90 per
cent of the total, valued at Gdes. 27,453. Germany furnished 23.74 per cent,
valued at Gdes. 19,813, and France 22.28 per cent, with a value of Gdes.
18,597. During 1937-1938, the total value of imports of patent medicines
was Gdes. 75,901. Of this amount the United States supplied 38.66 per cent,
France 20.30 per cent, Germany 18.11 per cent, and 16.18 per cent came
from the United Kingdom.
Purchases of chemical and pharmaceutical products during 1937-1938
were made largely in the United States, 35.70 per cent (Gdes. 280,920),
Germany 31.24 per cent (Gdes. 245,846) and France, 27.99 per cent (Gdes.
220,287). During the present fiscal year France took the leading position





HAITI: REPORT OF FISCAL REPRESENTATIVE


as a source of supply for this import group with 37.80 per cent of total
imports, valued at Gdes. 356,686. The United States was in second place
with 30.57 per cent (Gdes. 288,421) and in third place was Germany with
sales of Gdes. 270,642, or 28.68 per cent of the total.
While total purchases of the more important class of cotton piece goods
increased by only Gdes. 20,549 over those of 1937-1938, the American share
in this trade increased by Gdes. 2,082,319. In the group comprising bleached
and unbleached plain woven cotton piece goods, 62.02 per cent of total
imports, valued at Gdes. 1,235,761 were credited to the United States. In
1937-1938, the American share in this class of goods was 53.61 per cent,
valued at Gdes. 1,015,067. China took second place in 1938-1939 with 13.32
per cent, valued at Gdes. 265,366, as compared with 5.03 per cent, valued at
Gdes. 95,225 in 1937-1938. The third largest participant in this trade this
year was the United Kingdom with a share valued at Gdes. 250,215 (12.56
per cent). During 1937-1938, the United Kingdom furnished 14.12 per cent
of this category of merchandise with a value of Gdes. 267,300. Japan during
the last fiscal year supplied 26.77 per cent of imports in this group valued
at Gdes. 506,948. In 1938-1939, Japan's share fell to 11.38 per cent, repre-
senting Gdes. 226,721.
From Gdes. 2,571,473 (48.14 per cent) in 1937-1938, American sales of
dyed and printed plain woven cotton piece goods rose to Gdes. 3,821,403
(70.77 per cent) in the year under study. Purchases from the United
Kingdom fell' from Gdes. 1,621,249 (30.35 per cent) last year to Gdes.
991,269 (18.36 per cent) during 1938-1939. Purchases from Japan took
a decided slump from Gdes. 1,066,336 (19.96 per cent) to Gdes. 531,750
(9.85 per cent) of total imports in this class.
Cloths, bleached or unbleached, twilled or figured in the loom were
obtained chiefly from the United States and the United Kingdom. The
American share of total imports of this commodity was 70.28 per cent
(Gdes. 375,108) and the British part 28.40 per cent, valued at Gdes. 151,600.
In 1937-1938, the United States furnished this type of cloth for a value of
Gdes. 229,140 (51.45 per cent) and purchases from the United Kingdom
accounted for most of the balance, 45.98 per cent, valued at Gdes. 204,774.
The United States furnished 71.53 per cent of the dyed and printed cloth,
twilled or figured in the loom, purchased. Imports from that country were
valued at Gdes. 1,759,006. This compares with a value of Gdes. 1,293,179,
representing 48.18 per cent of total imports in 1937-1938. The only other
important source of this class of merchandise was the United Kingdom
which supplied 16.17 per cent, valued at Gdes. 397,619 in 1938-1939, and
32.09 per cent, value Gdes. 861,217 in 1937-1938.
Other manufactures of cotton of lesser importance such as belts, hosiery,
clothing and knitgoods were purchased chiefly in the United States. How-
ever, Germany, Italy and Japan participated to some extent in sales of
this class of merchandise to Haiti. In only one of the lesser categories of





HAITI: REPORT OF FISCAL REPRESENTATIVE


manufactures of cotton, thread, the United States failed. to maintain its
leading position. Imports of thread came chiefly from the United Kingdom
which furnished 56.25 per cent of the total imports, valued at Gdes. 409,-
675. France was in second place with a share valued at Gdes. 90,981,
representing 12.49 per cent of the total imports. The United States took
third place with 10.57 per cent, valued at Gdes. 76.952.
As was the case for several years past, imports of earthenware, porcelain,
clay and pottery came chiefly from Germany, which supplied in 1938-1939,
48.05 per cent of total imports valued at Gdes. 85,350. In 1937-1938,
Germany supplied 49.70 per cent of all imports in this group with a value
of Gdes. 73,592. In both these years, United.States was in second place
with a share amounting to 21.95 per cent (Gdes. 34,423) in 1938-1939 and
19.98 per cent (Gdes. 29,579) in 1937-1938.
During the fiscal year just closed British India furnished 36.52 per cent
of the jute bags imported, with a value of Gdes. 188,823. Belgium was in
second place with 25.85 per cent (Gdes. 132,651) and the United States in
third place with 12.66 per cent (Gdes. 65,467).. During the fiscal year 1937-
1938, British India also participated to the greatest extent in this trade,
having furnished 36.71 per cent of all imports, valued at Gdes. 200,402.
Belgium followed immediately behind British India with 22.62 per cent,
valued at Gdes. 123,488. In 1937-1938, Germany was in third place with
13.86 per cent valued at Gdes. 75.674.
During the fiscal year under review 100 per cent of the lard imported
was of American origin and was valued at Gdes. 453,849. Imports of this
commodity from the. United States in 1937-1938 amounted to 98.89 per
cent of the total, valued at Gdes. 350,952.
The United States was the principal supplier of pickled, salted and
smoked meats during the year. Imports of pickled meats from that country
were valued at Gdes. 62,972, representing 58.70 per cent of the total. The
United Kingdom was in second place with 26.03 per cent (Gdes. 27,926).
In 1937-1938, 47.16 per cent of all imports of this commodity came from
the United States and 37.25 per cent from Argentina. During 1938-1939,
97.25 per cent of all salted or smoked meats were of American origin, as
compared with 79.67 per cent of imports of this commodity in 1937-1938.
Practically all the perishable and semi perishable foodstuffs are supplied
to Haiti by the United States and Canada. Merchandise of this nature
cannot survive in good condition the long haul from Europe.
Canada sold to Haiti during 1938-1939, 53.15 per cent of all the pickled
and smoked fish imported. These imports from Canada were valued at
Gdes. 299,536. The United States was in second place with 46.07 per cent
of imports of these commodities, valued at Gdes. 259,633.
Canada was also the source of supply for 79.02 per cent of the salted
and dried fish purchased by Haiti during the fiscal year under review.
Imports from that country were valued at Gdes. 290,549. The United States





HAITI: REPORT OF FISCAL REPRESENTATIVE


furnished only 16.74 per cent of this:class of merchandise, which part was
valued at Gdes. 61,553. In 1937-1938, Canada's share for the pickled and
smoked fish imported in Haiti amounted to Gdes, 474,098, representing
63.45 per. cent of total imports. The American share of this trade amounted
to Gdes. 272,630 or 36.49 per cent. For the same year. Canada supplied
84.44 per cent of the salted or dried fish purchased, with a value of Gdes.
293,692, the United States furnishing only 13.88 per cent of these com-
modities, valued at Gdes. 48.285.
During 1938-1939, the United States as usual furnished by far the great-
estipart of the wheat flour consumed in Haiti. However, a substantial part
of this flour was manufactured from Canadian wheat. Imports of this com-
modity:from the United States were valued at Gdes. 2,064,146, comprising
98.12 per cent of the total. The remaining 1.88 per cent was imported from
Canada. and was valued at Gdes. 39,597. During the previous fiscal year.
the United States furnished 97.88 per cent of the flour imported, valued at
Gdes. 2,713,627, while Canada furnished 2.12 per cent, valued at Gdes.
58,870.
Imports of rice into Haiti have been diminishing steadily for the last few
years. However, the Netherlands still remains the chief source of supply
for this commodity. During 1938-1939, the Netherlands furnished 95.08
per cent of the rice imported, valued at Gdes. 158,257. During the previous
fiscal year, 85.04 per cent of this commodity was furnished by the Nether-
lands, valued at Gdes. 267,931. In that year Dutch Guiana furnished 6.28
per cent of the rice imported, and Belgium 5.05 per cent.
Malted liquors, during the year under review, were imported principally
from the United States. The American share in this trade amounted during
1938-1939 to 54.36 per cent, valued at Gdes. 93,075. Germany was in second
place with 29.74 per cent, valued at Gdes. 50,916. During 1937-1938,
imports of malted liquors came principally from Germany (47.10 per cent)
valued at Gdes. 45,556. In that year, the United States was in second place
with 35.08 per cent of imports in this group, valued at Gdes. 33,933.
France led all other countries as a source of supply for distilled spirits
during the year. Imports in this group furnished by France were valued
at Gdes. 82,617 and represented 76.83 per cent of total imports. The United
Kingdom was in second place with 15.80 per cent, valued at Gdes. 16,992.
During 1937-1938, the United Kingdom was in first place with 43.59 per
cent of total imports, valued at Gdes. 14,107, while France was in second
place with 34.91 per cent, valued at Gdes. 11,296.
The bulk of the wine imported also came from France during 1938-1939.
That country furnished 92.94 per cent of all the wine purchased, with a
value of Gdes. 368,428. During the last fiscal year France furnished 74.36
per cent of wine imported, valued at Gdes. 108,311, while Italy furnished
14.54 per cent, and the United States 5.63 per cent.





HAITI: REPORT OF FISCAL REPRESENTATIVE


Total imports of butter were valued at Gdes. 330,643. Of this amount,
Denmark furnished 20.39 per cent; New Zealand 18.79 per cent; the United
States 18.08 per cent; Cuba 16.64 per cent; Australia 11.21 per cent and
Argentina 9.39 per cent. Smaller amounts were imported from Canada, the
Canal Zone and the United Kingdom. Imports of butter during 1937-1938
were valued at Gdes. 337,601. Of this amount, 24.23 per cent was furnished
by the United States; 18.73 per cent by Denmark; 17.88 per cent by New
Zealand; 17.40 per cent by Cuba; 11.29 per cent by Australia, and 7.26 per
cent by Argentina.
France was the most important source of supply of oils for table use
during the fiscal year just closed; having furnished 46.71 per cent of total
imports, valued at Gdes. 51,506. The United States was in second place
with 21.22 per cent, valued at Gdes. 23,399. United Kingdom furnished
13.77 per cent, and 11.59 per cent of these oils were purchased from Italy.
During 1937-1938, France furnished 35.23 per cent of total imports in this
group, valued at Gdes. 36,788. Italy was in second place, with 25.57 per
cent, valued at Gdes. 26,696, and the United States in third place with
24.36 per cent valued at Gdes. 25,429.
Total imports of spices during 1938-1939, were valued at Gdes. 120,853,
of which 60.64 per cent was prepared in and shipped from the United States.
China furnished 12.48 per cent, and Dutch East Indies- 11.42 per cent.
During the last fiscal year, total imports of spices were valued at Gdes.
93,616, of which the United States furnished 85.71 per cent, and China 5.29
per cent.
Imports of cheese during the fiscal year 1938-1939 were valued at Gdes.
109,563. Of this amount 41.01 per cent was furnished by the United States;
32.02 per cent by the Netherlands, and 18.3 per cent by Germany. During
the previous year, imports of this commodity were valued at Gdes. 105,733;
of which the United States ,furnished 42.69 per cent; the Netherlands 33.03
per cent, and Germany 21.70 per cent.
The United States was the most important source of supply for glass
and glassware. Purchases of these commodities from that country during
the fiscal year under review were valued at Gdes. 135,581, which repre-
sented 52.46 per cent of total imports. The only other country participating
to any extent in this trade was Germany with 33.90 per cent, valued at Gdes
87,628. During 1937-1938, the United States furnished 48.26 per cent of
this class of goods, valued at Gdes. 106,876, while Germany in second place
furnished 28.32 per cent, valued at Gdes. 62,707.
Imports of boots, shoes and slippers during 1937-1938 were valued at
Gdes. 260,652, of which amount 58.20 per cent represented imports from
the United States, and 32.82 per cent imports from Czechoslovakia. During
the present fiscal year, imports of boots, shoes and slippers were valued
at Gdes. 208,044. The United States furnished 53.24 per cent of this amount,





HAITI: REPORT OF FISCAL REPRESENTATIVE


Czechoslovakia 39.40 per cent, and Germany 2.41. per cent. The balance
4.95 per cent was furnished by 16 other countries.
Germany furnished the greater part of the cutlery imported during 1938-
1939. Imports of this class of merchandise from that country were valued
at Gdes. 56,721, representing 59.22 per cent of total imports. The United
States was in second place with 23.48 per cent, valued at Gdes. 22,490.
Germany in 1937-1938 furnished 71.16 per cent of total imports valued
at Gdes. 70,137. The second place was taken by the United States with
17.55 per cent, valued at Gdes. 17,296.
Enameled kitchen and household utensils during the year under review
were imported principally from Belgium land Czechoslovakia. Belgium
furnished 49.99 per cent of total imports in this group, valued at Gdes.
108,539, and Czechoslovakia 29.19 per cent, valued at Gdes. 63,380. During
the last fiscal year, Germany was the principal source of supply for these
goods, having furnished 35.79 per cent of total imports, valued at Gdes.
91,609, while Czechoslovakia was in second place with 33.23 per cent,
valued at Gdes. 85,076.
Tools and implements during the year under review were imported
principally from the United States which furnished 93.35 per cent of total
imports, valued at Gdes. 137,814. During the fiscal year 1937-1938, the
United States furnished 85.13 per cent of imports of this category, valued
at Gdes. 45,409. During that year, Germany was in second place with 5.28
per cent of total imports, valued at Gdes. 2,817.
Radio receiving sets were imported principally from the United States.
The total value of imports of these sets was Gdes. 173,012, of which 77.80
per cent was furnished by the United States, 16.18 per cent by the Nether-
lands, and 5.99 per cent by Germany. During the fiscal year 1937-1938,
total imports of this nature were valued at Gdes. 113,344, of which 97.69
per cent was furnished by the United States.
Electrical machinery, apparatus and appliances imported into Haiti during
the year under review were valued at Gdes. 544,633. Imports from the
United States accounted for 95.30 per cent of this amount. During the
previous fiscal year imports of this nature were valued at Gdes. 568,724.
Imports from the United States represented 90.97 per cent of this amount,
and imports from Germany 5.79 per cent.
Sugar machinery imported during the year was valued at Gdes. 128,343;
97.02'per cent of this amount represented imports from the United States.
During the last fiscal year imports of this category were valued at Gdes.
255.429. Of this amount 99.12 per cent represented goods of American
origin.
Imports of miscellaneous machinery and apparatus for the year under
review were valued at Gdes. 1,343,096. Of this amount 86.82 per cent was
furnished by the United States; 5.74 per cent by Germany, and 4.64 by
France. Imports of this nature during 1937-1938 were valued at Gdes.





HAITI: REPORT OF FISCAL REPRESENTATIVE


1,203,588. The United States furnished 77.52 per cent of this amount;
France 7.64 per cent; Germany 5.79 per cent, and Belgium 4.49 per cent.
Imports of gasoline from the United States were valued at Gdes. 521,676
in the year under review. This represented 47.18 per cent of total imports.
In second place was Curacao with imports valued at Gdes. 343,618 (31.08
per cent). In third place was Porto-Rico with imports valued at Gdes.
168,729 (15.26 per cent). Cuba furnished.6.47 per cent of imports of this
commodity, valued at Gdes. 71,518. During the previous fiscal; year imports
from Curacao represented 42.69 per cent, valued at Gdes. 343,416; imports
from Porto-Rico 26.67 per cent, valued at Gdes. 214,557, and imports from
the United States 24.05 per cent, valued at Gdes. 193,444. During this year
Cuba furnished 6.58 per cent of total imports, valued at Gdes. 52,916.
During 1938-1939, the United States furnished 81.80 per cent of the
kerosine imported, valued at Gdes. 451,542. Next in importance as a source
of supply for this commodity was Curacao with 13.97 per cent, valued at
Gdes. 77.114. Porto-R-co was in third place w'th 4.21 per cent, valued at
Gdes. 23,260. Kerosine was obtained chiefly from the United States during
1937-1938, this country having furnished 82.57 per cent of total imports of
this commodity, valued at Gdes. 522,801. Canada was in second place with
10.09 per cent, valued at Gdes. 63,887, and Porto-Rico was in third place
with 6.50 per cent, valued at Gdes. 41,135.
Imports of paints, pigments, varnishes, colors and dyes for the year
1938-1939, were valued at Gdes. 214,872. Of this amount 70.38 per cent was
furnished by the United States and 20.30 per cent by Germany. During the
previous year, imports of these commodities were valued at Gdes. 158,314.
During this year the United States furnished 61.97 per cent, and Germany
22.21 per cent.
Imports of paper and its manufactures during the year under review
were valued at Gdes. 679,967. Of this amount, 51.81 represented imports
from the United States, 15.78 per cent imports from Germany, 8.74 per cent
imports from Sweden and 6.68 per cent imports from Belgium. During the
previous fiscal year, imports of these commodities were valued at Gdes.
603,431, of which 44.19 per cent represented imports of American origin,
17.51 per cent imports from Switzerland, 11.48 per cent imports from
France, and 7.43 per cent imports from Belgium.
France this year was the chief supplier of perfumery, cosmetics and other
toilet preparations, 52.52 per cent of total imports of these commodities
with a value of Gdes. 337,007 being credited to this country. In second place
was the United States with 36.21 per cent of total imports, valued at Gdes.
232,361. During 1937-1938, the United States was in first place with 43.81
per cent of total imports of these products, valued at Gdes. 181,173, and
France was during that year in second place with 41.87 per cent, valued
at Gdes. 173,161.





HAITI: REPORT OF FISCAL REPRESENTATIVE


Tires and tubes for vehicles with a value of Gdes. 514,614 were imported
luring the year. Of this amount, 71.34 per cent represented imports of
American origin, and 10.12 per cent, imports of this nature from the United
Kingdom. Canada furnished 9.23 .per cent of these imports and Germany
5.61 per cent. During the fiscal year 1937-1938, imports of this nature were
valued at Gdes. 423,430. The United States supplied merchandise valued
at 69.91 per cent. of this amount, the United Kingdom 12.43 per cent, and
Canada 10.30 per cent.
As has been the case for many years past, the United Kingdom was the
chief, source of supply for soap. Imports of soap from that country for
1938-1939 were valued at Gdes. 1,335,212, representing 71.69 per cent of
total imports. The Netherlands was next in importance.with imports valued.
at Gdes. 192,928 (10.36 per cent), and the United States was in third place
with imports valued at Gdes. 111,410 (5.98 per cent). During the previous
fiscal year, the United Kingdom furnished 80.50 per cent of the soap
imported, with a value of Gdes. 1,411,444. In second place was the United
States with 8.36 per cent, valued at Gdes. 146,617, and the Netherlands
took third place with 4.70 per cent, valued at Gdes. 82,436.
During 1938-1939, imports of cigarettes were valued at Gdes. 415,194.
Of this amount 99.97 per cent represented goods of American origin. During
1937-1938, imports of cigarettes were valued at Gdes. 388,825. The United
States furnished cigarettes valued at 99.66 per cent of this amount.
All the lumber imported during the year 1938-1939, valued at Gdes.
917,564, was imported from the United States. Imports of lumber during
1937-1938, were valued at Gdes. 462,973; Of this amount 99.83 per cent
represented imports of American origin.

Destination of Exports

For the third successive year the United States was the most important
country,,of destination for Haiti's export products. Second in order of
importance was France, third the United Kingdom, fourth Belgium, fifth
Denmark:' and sixth Germany. Although the Franco-Haitian Commercial
Convention signed in Paris June'24, 1938 was in effect throughout the year,
France .failed; to regain from the United States, the leading place in the
Haitian export trade it held for so many years. Nevertheless a considerable
gain. over the 1937-1938 figures was: recorded. -
SIn:1938-1939, the United States took in terms of value, 34.43 per cent of
all exports. This compares with 42.79 per cent of total exports shipped
theie in.1937-1938. The decline in the total percentage of exports to the
United States was due principally to the re-entrance of France into the
Haitian coffee trade.
Haiti sold to the United States during the year 9,370,116 kilos of coffee,
valued at. Gdes. 5,889,791. This was 32 per cent of the total volume and






HAITI: REPORT OF FISCAL REPRESENTATIVE


31.45 per cent of the total value of this crop. During the previous ;fiscal
year, 8,855,473 kilos of coffee, valued at Gdes. 6,077,349, representing 35.33
per cent of the total volume and 35.07 per cent of the total value of this
crop was purchased by the United States.
Shipments of bananas to the American market were valued at Gdes.
2,820,679 in the year under review and at Gdes. 2,001,128 in 1937-1938.
This was over 99.99 per cent of the total value in both years. The total
value of the sisal shipped was Gdes 2,702,274. Of this amount, Gdes.
2,591,222 or 95.89 per cent represented exports to the United States.
The American market also accounted for, in terms of value, 62.40 per
cent of exports of cacao, 99.69 per cent of exports of goatskins, and 30.62
per cent of refined sugar exports.
Values of exports to the United States by principal commodities, for the
last three years, are shown below:
1938-1939 1937-1938 1936-17
Gourdes Gourde Gourdes
Coffee .................................... 5,889,791 6,077,349 4,091,623
Sisal ...................................... 2,591,222 3,049,468 3,333,204
Bananas ............................ 2,820,320 2,001,051 1,877,323
Cacao .................................. 383,006 613,152 963,359
Goatskins .......................... 395,099 452,785 778,386
Sugar (raw and refined)........ 283,373 1,731,866 455,779
Logwood ............................. 43,253 217,454 449,567
M olasses ................................ ................ 596,756 392,601
SRum .................................... 16,59' 25,964 68,743
All other ............................ 88,372 94,771 91,169
12,511,033 14,860,616 12,501,754

The share of France in the export trade amounted to Gdes. 7,614,544.
In 1937-1938, the amount was Gdes. 4,010,796. Exports of coffee to that
country amounted to 7,676,560 kilos, representing 26.21 per cent of total
exports of this commodity. The coffee taken by France was valued at
Gdes. 4,673,862 which was 24.96 per cent of the total value of the coffee
crop exported. In 1937-1938, France purchased 2,636,517 kilos of coffee;
valued at Gdes. 1,877,387. This was 10.52 per cent of the total volume and
10.83 per cent of the total value of the 1937-1938 coffee crop..
The present Commercial Convention between France and Haiti provides
an annual quota in France of 12,000,000 kilos for Haitian coffee. Haitian
coffee exporters confidently expected to sell their product in that country
up to the limit of the quota. The figures given above show that these
expectations were far from being realized and in view of the fact that France
is now at war, considerable doirbt exists as to the possibility of increasing
exports of coffee to France during the coming year.
French importers took 36.68 per cent of the cotton exported, with a value
of Gdes. 1,619,905. In 1937-1938, exports of cotton to France were valued
at Gdes. 1,982,292, and represented 37.67 percent of total exports of this





HAITI: REPORT OF FISCAL REPRESENTATIVE


commodity. France also purchased in 1938-1939, logwood valued at Gdes.
121,447 (42.30 per cent), and raw sugar valued at Gdes. 1,132,479 (23.21
per cent). Other exports to France were of slight importance.
French purchases of haitian commodities during each of the last three
fiscal years are shown'below:
1938-199 1937-1938 19-1937
Gourdes Gourdes Gourdte
Coffee ................................ 4,673,862 1,877,387 4,634,804
Cotton ................................ 1,619,905 1,982,292 2,510,616
Logwood .......................... 121,447 84,747 95,753
SHoney .............................. 18,672 15,133 12,665
All other .......................... 1,180,658 51,237 61,694
7.614,544 4,010.796 7,315,532

In spite of the fact that the United Kingdom purchases little of Haiti's
most important crop, coffee, it occupies an important place in the Haitian
economic scheme. During the fiscal year just dosed Haitian products
valued at Gdes. 6,862,156 (18.88 per cent of total exports) were sold to the
United Kingdom. Sales in 1938-1939 increased considerably over those of
1937-1938 which were valued at Gdes. 4,720,422, and which amounted to
13.59 per cent of ail exports.
The most important item in Haiti's exports to Britain was raw sugar.
British purchases of this commodity amounted to 71.60 per cent of'the
year's crop, and were valued at Gdes. 3,493,097. In 1937-1938, sales of raw
sugar to Britain amounted.to 52.14 per cent of the total and were valued
at Gdes. 1,943,834.
Shipments of cotton to the United Kingdom during the year under review
amounted to 59.85 per cent of the total and were valued at Gdes. 2,643,237.
During the previous fiscal year Britain took 44.87 per cent of total exports
of this commodity, with a value of Gdes. 2,360,817. Cottonseed cake usually
finds its chief outlet in the British Isles. During the past fiscal year 86.29
per cent of total exports of this commodity went to British markets, and in
1937-1938. exports to the United Kingdom were 85.14 per cent of the total.
Values of exports to the United Kingdom, by principal commodities, for
the last three years are shown below:
1938.1939 1. 3-1938 1936-1937
Gourdes Gourdes Gourdte
Raw cotton ........................ 2,643,237 2,360,817 3,354,344
-Raw sugar ........................ 3,493,097 1,943,834 3,369,612
Cottonseed cake................... 267,428 352,920 472,347
All other .......................... 458,394 62,851 47,387
6,862,156 4,720,422 7,243,690

Haiti's export trade with other countries of the British Empire amounted
to only .80 per cent of total exports. Sales to Canada were valued at Gdes.
221,463, as compared with Gdes. 54,319 in 1937-1938. Trade with the
Bahamas also showed a slight increase.





HAITI: REPORT OF FISCAL REPRESENTATIVE


. The .export..trade with; Belgium again declined in value. From Gdes.
:5,625,493. in- 1936-1937, Gdes. 4,329,746 iri 1937-1938, it fell to Gdes.
3,738,412 in 1938-1939 .
SShipments of coffee to Belgium represented 19.74 per cent of the 1938-
1939 crop. Sales of this commodity to Belgian importers were valued..at
Gdes. 3,697,667. Coffee exports to Belgium in 1937-1938 were valued at
Gdes. 4,182,994, and accounted for 21.14 per cent of the crop of that year.
Other exports to Belgium were of minor importance being valued at Gdes.
40.745.
Belgian purchases of Haitian commodities during each of the last three
fiscal years are shown below:
1938-1939 1937-1938 1936-1937
Gourdes Gourdes Gourdes
Coffee ................................ 3,697,667 4,182,994 5,402,072
'.- Cottonseed cake.., ................ ...........30,246 98,642
Logwood ............................ 23,266 .32,264 57,633.
Honey .................... .......... 10,335 21,772 15,171
?1.: 'AAll'other ;.................. ... 7,144 62,470 51,975
3,738,412 4,329,746 5,625,493
SThe value of the Haitian products purchased by Denmark in 1938-1939,
was Gdes. 1,887,232. This was 5.19 per cent of total exports. In 1937-1938,
sales to Denmark were 5.35 per cent of total exports and were valued at
Gdes., 1,85,112,
The only commodity exported to Denmark was coffee, valued at Gdes.
-1,887,232. This amount was 10.08 per cent of total coffee shipments and
5.19 per cent of the total export trade. During 1937-1938, Denmark pur-
chased 10.72 .per. cent of thecoffee crop, with a value of Gdes. 1,857,078.
Total exports to Denmark that year were valued at Gdes. 1,858,112.
SExports to Germany increased in value from Gdes. 714,603 in 1937-1938
.to.,Gdes.1,140,020 in 1938-1939. In 1937-1938, Germany's share of the
export trade was 2.06 per cent of the total. In 1938-1939, it was 3.14 per
cent.
Germany took during the year under review coffee valued at Gdes. 414,001
(2.21 per cent), cotton valued at Gdes. 153,382 (3.47 per cent), cacao valued
at Gdes. 230,774 (37.60 per cent), honey valued at Gdes. 113,518 (77.30 per
cent) and small amounts of other export products.
Trade with the Netherlands declined from 2.74 per cent of the total in
1937-1938 to 1.55 per cent of the total in 1938-1939. Export values fell
from Gdes. 951,076 to Gdes. 561,471. Of this amount exports of coffee
accounted for Gdes. 560,053.

Balance of Trade and some Observations
, .. .r ::on.the Balance of Payments
Table No. 1 presents the'value of imports and exports and the excess
of imports or exports; for each fiscal year since 1916-17. From the table
it will be seen that Haiti's foreign.'trade




*HAITI:. REPORT OF FISCAL REPRESENTATIVE


been marked by successive swings from export to import balances and .vice
versa. Generally speaking, the fluctuations in foreign trade from year to
year with few exceptions since 1921 have been so small that they can be
explained for any one year in a variety of ways. Price levels and expected
price adjustments at times cause a lag in the normal movement of imports
and,at other times cause anticipatory purchasing. Overstocking of imports,
the cutting down or building up of inventories, variation in the carryover
of coffee, etc., any of these, or combination of such factors, is sufficient to
explain the relatively small yearly differences between imports and exports.
iThis is particularly. true when there is an import balance in one year follow-
ed by an export balance in the next year or vice versa. This has happened
very frequently in Haiti's foreign commerce as reference to table No. 1
will show. In such cases it is of small material difference whether imports
or exports happen to be in the lead at September 30 of a given year:
Where the total of foreign commerce is relatively small, as it is in Haiti
compared to large commercial and industrial countries, the importance of
these factors may become correspondingly greater. Gasoline is one of the
leading articles imported into Haiti and will serve as an example. Single
.shipments are likely to furnish all of the stock one of the few importers of
gasoline .will need for several months. If substantial fall supplies for one
or more importers arrive before, or in September of a given year, but in the
succeeding year supplies happen to be delayed until after September, the
consumption of gasoline might easily be greater in. the year showing the
smaller importation in spite of bare statistics pointing to the contrary.
Other imports might counteract the effect of irregular gasoline shipments,
:or they might do the opposite. At any rate reasoning from these, relatively
small differences in trade balance at a given year-end to general conclusions
having to do-with changes in the welfare of the people or standard of living
in the country would be useless, and as likely as not actually misleading.
Nevertheless the results of separate successive years make up the totals
for longer periods and when,,in these longer periods definite trends clearly
stand out, some enlightening information as to economic welfare may be
gained from a study of the causes underlying the trends. In dividing the
period since 1916-17, into shorter periods for study .a difficulty presents
itself which is similar to that. encountered in trying to explain indi-
vidual years. If our period begins with a year having an export balance and
ends with a year having a similar balance the result will be very different
from that obtained if .we start and end with years in which import
balances were recorded, although we could be covering substantially the
same period. With this in mind, the following arbitrary grouping into five
year periods (with the three surplus years included in the first period) is





HAITI: REPORT OF FISCAL REPRESENTATIVE


made for greater convenience in discussion and to provide a better oppor-
tunity to examine the longer period trends:
Export (+) or
Imports Exports Import (-) balance
Period (000 omitted) (000 omitted) (000 omitted)
1916-24*................ 582,322* 545,648* -36,674*
1924-29.................. 461,632 471,710 +10,078
1929-34.................. 233,414 249,842 +16,428
1934-39................ 204,035 198,792 5,243
1,181,403 1,465,992 -15,411

So divided, the beginning of our 23-year period was clearly marked by
a large import balance. This period was followed by two five-year periods
(actually this trend began before 1924 and extended a couple of years
beyond 1934) during which there were substantial export balances, and
finally the most recent period in which there is an import balance although
far less pronounced than that of the opening period. It might be noted in
passing that the last period is distinguished by a drastic decrease in both
import and export values, which we are going to find of great importance
in arriving at a conclusion as to the general movement.

1916-1924
The eight-year period from 1916-17 through 1923-24 showed an excess
of imports during five years and an excess of exports during three
years which left a net import balance exceeding Gdes. 35,600,000.
If an import balance, or unfavorable balance of trade as it is sometimes
called, taking into account only the merchandise visibly exchanged
with other countries, were really unfavorable or adverse to the importing
country a study of this period or the years following it ought to serve
as an excellent illustration. As a matter of fact it was a period of
relative prosperity which continued for over a decade beyond 1924. A
thorough study of the period was presented in the annual report for 1923-24
and the conclusions there reached throw so much light upon the economic
situation as it then existed and as it developed in succeeding years, that we
feel fully justified in the use of that study as an approach to a new examin-
ation of the national economy.
In the 1923-24 report, after adjusting import values to include freight
and handling charges for the years 1922-23 and. 1923-24, the total excess of
imports for the eight-year period was estimated to be Gdes. 51,000,000. The
report sets forth three principal ways in which payment for the excess
imports was more than covered by items other than visible exports. -The
first compensating item was found in the earnings of returning Haitian
emigrants after a period of employment in Cuban cane fields. The amount
of money brought into the country by returning emigrants was estimated


* 8 years.





HAITI: REPORT OF FISCAL REPRESENTATIVE


for the period to be in the neighborhood of Gdes. 70,000,000. Secondly an
infiltration of foreign capital seeking investment was estimated at Gdes.
35,000,000 over the eight years of the period. And lastly expenditures by
the American Government in Haiti, were estimated to have reached the
sum of Gdes. 20,000,000 for the period. The conclusion was drawn therefore
that from 1916-17 to 1923-24 the real balance of payments as distinguished
from the balance of exports-imports, was not adverse to Haiti but actually
in Haiti's favor by an estimated Gdes. 74,000,000.

1924-1934
The next two five-year periods resemble each other greatly in many
respects and can -be discussed together as representing a single phase or
trend in Haitian trade. The five years between 1924 and 1929 showed an
export balance of Gdes. 10,078,000 while the export balance from 1929 to
1934 amounted to over Gdes. 16,428,000. These ten years, during which
there was a net export balance of approximately Gdes. 26,500,000, were
marked by: (1) the high value of exports; and (2) by the gradual, lessening
in importance of those invisible items which made the previous period one
in which a large net import balance was possible.
The high value of Haitian exports has been mentioned first as probably
having more to do with creating the export balance than any other factor.
Haiti exports agricultural crops which, headed by coffee, fluctuate widely
both in volume and in value, while imports are largely manufactured articles,
consumption of which is more or less governed by habits acquired over a
period of time. Hence there is a tendency for imports to move more slowly
upwards or downwards as buying habits change, and to follow rather than
precede, or immediately accompany exports, particularly in periods when
the latter are fluctuating widely. Total exports during the years 1924-29
were valued at Gdes. 472,000,000 and in the period from 1929-34 export
values totalled Gdes. 250,000,000. Haiti's principal crop- coffee com-
manded attractive prices during the period, and on the average crops were
of greater volume than those since harvested. In 1927-28, one of the years
during the period under examination, Haiti's coffee crop approximated
Gdes. 90,000,000 in value. This amount greatly exceeded the total value in
most recent years of both exports and imports combined. Under these
circumstances, it is iot surprising that Haiti was able to purchase its needed
imports, and still. show an export balance of trade of over Gdes. 12,000,000
during the year. Gdes. 12,000,000 is a larger amount than the net export
balaiice for the five years between 1924 and 1929.
Next, note must be taken of those invisible items which from 1916 to
1924 played such a large part in maintaining imports. If our analysis of
the effect of these items be correct it will aid in explaining why the export
balance increased in the latter part of the ten-year period between 1924 and
1934 after emigration ceased altogether and the United States government





HAITI: REPORT OF FISCAL REPRESENTATIVE


expenditures decreased in amount. Emigration to Cuba was at its height
in 1924 and continued to be high for several years thereafter but it began
to decline with the decrease in sugar profits and was finally prohibited by
law in 1928. Expenditures by the American government in Haiti continued
high for several years after 1924. After 1931, however, the American Navy
ceased to carry on its regular annual manceuvres in the Bay of Gonaives,
and expenditures of the U. S. Marine Corps in Haiti were decreased prepa-
ratory to leaving. Finally this item ceased altogether, as the period closes
in 1933-34.
Capital investments previously made brought about increased production,
which tended to increase exports toward the latter part of the ten-year
period. We have noted the mention made of the infiltration of capital
seeking investment during the eight years between 1916 and 1924. This
capital was estimated to have accounted for probably Gdes. 35,000,000 of
the excess imports during that period. Although foreign investments in
Haiti have not 'been large during any period since 1916, neither are the
balances of trade here under consd'erat:on. For the whole of the 23 year
period the net difference between total imports and exports (Gdes. 14,-
412,000 in favor of imports) is but .049 per cent of the total commerce.
In view of the. relatively small size of excess imports or exports in the
balance of trade, capital investments need not have 'been large to have had
a substantial influence in swinging the balance at different times in one
direction or in the other. Investments in Haiti of foreign capital put into
agricultural enterprises require the purchase of machinery in connection
with irrigation and the preparation for cultivation of extensive areas of
land. In the absence of manufacturing in Haiti it follows that in addition to
amounts laid out for land and employment of labor the necessary factory
equipment and field machinery must be imported. Consequently at their
inception such enterprises have a tendency to exert a proportional influence
on :the import side of the trade balance. Later as the production of the
enterprise leaves the country, exports should increase visibly, and there is.
also an invisible item operating to increase the import balance as profits on
the capital investments are returned to the country from which the capital
came. Haiti's sugar industry involving the construction of a ,large plant
and the bringing of large acreage under cane cultivation was introduced in
the previous period (1916-17 to 1923-24) and undoubtedly its establishment
cbtitributed to'the large .import balance of that period, as its production
and return of profits during the period under discussion and subsequently,
has contributed to maintain export levels., The sisal industry was establish-
ed in the late twenties and imports in connection therewith no doubt had
sbme effect in keeping the export balance during that period from being
greater: while during the-second half of the ten-year period (1929-34) the
sisal industry contributed in maintaining the excess of exports over
imports.





HAITI: REPORT OF FISCAL REPRESENTATIVE


Another influence tending to increase imports during the first part (1924-
1929) of the period and to some extent exports during the second half
(1924-34) was the expenditure by the government of the Gdes. 12,000,000(
remaining after the refunding operations of the Series A loan. A part of
this amount was spent on public works. A portion was spent for the
erection of public buildings and for educational or other purposes not:
immediately connected with increasing productivity. Some of it was spent
on road construction. Money expended in Haiti by the government for
public works has much the same immediate effect on imports as the invest-
ment of foreign capital in private enterprise. A part of it must go imme-'
diately abroad in payment for construction material and equipment, while.
at the same time the amount paid for labor within the country increases'
purchasing power which permits importation.
The later effect upon exportation depends upon to what end the Govern=
ment money has been spent. Normally private enterprise aims directly at
production. A private agricultural enterprise for example aims at putting
things in the ground to grow and thus add to the exportable surpluses.
Expenditures by the Government on public works aims at increasing:
exportation only indirectly, by providing facilities for transportation,
communication and production. The government for example builds roads
or constructs irrigation systems but it does not raise the produce to be
transported over the roads, nor does it ordinarily cultivate the land for
which irrigation has been provided. The effect of public works on export-
ation depends upon the extent to which private enterprise can and does'
make use of the facilities provided. Part of the export balance in the years
following expenditure of the Gdes. 12,000,000 was undoubtedly due to
governmental expenditures. It is difficult to measure the extent.

1934-1939
We go forward into the final period (1934-39) with a situation greatly
changed from that existing from 1916 through the early nineteen-twenties
when it was possible for a large excess of imports to accompany and even.
denote a period of substantial prosperity. Through the greater part of that
period because of the invisible items we have discussed the balance was;
strongly in Haiti's favor. Some of these invisible items so important former-
ly, notably expenditures by the United States Government and the amounts.
of money brought back to Haiti by returning emigrants, have disappeared
after 1934 and in our final period covering the last five years Haiti is faced,
with financing the foreign indebtedness out of an excess of exports or.
having an adverse balance of payments accompany an adverse balance of
trade, except insofar as the balance of payments has been affected during
the period by capital investments and increases in other invisible items.
It should be noted that investments in banana development begun during:





26 HAITI: REPORT OF FISCAL REPRESENTATIVE

1935 have been of importance in succeeding years. New capital outlays. in
existing industries and a certain amount of infiltration of capital' seeking:
investment of course still continues.
There was a small import balance in 1934-35 and a large export balance
in 1935-36.. So that those two years.,continue the trend towards export
balances which.:marked the period from 1924 to 1934.
During the next: two.years,.1936-37 and- 1937-38, there, were successive
import -baiances. Duiring'those two years Haiti made remittances abroad
to an extent of nearly Gdes. 10,000,000 on account of fore:g n indebtedness.
Unless we can find counter-balancing invisible exports the balance of pay-
ments certainly was against Haiti during those two years. It is not believed
that there were invisible exports to the extent of Gldes. 14,400,000, the'
amount necessary to cover the adverse balance of trade..during the period
plus the remittances on account of foreign indebtedness., Probably.the only
capital..investments sufficient to have any. marked influence during the
period,.have been.,those expended- in establishing the banana industry,
Money.coming into the county through tourists, and others in all probabil-
ity did not exceed the amounts spent abroad by. persons travelling. out of
Haiti.by an .amount sufficient to make up the difference.
In,.several respects the last year of this period, the fiscal year under
review,.stands apart from the other two years, because of.the borrowing
abroad for expenditures on public works in Haiti. During the year 1938-39
such expenditures :atnmouted: to Gdes.- 8;321,160.60.. During, the past year
rlso .expenditures by-the Agricultural Service. of. about one and one half
million. gourdes received in the settlement made with -the. Dominican Re-
publ.: has helped..the credit balance to that extent.. The visits of the
American fleet, to; Gqnaives have also helped the credit side. It is,.believed,
nevertheless, that the excess of imports over exports for the fiscal year
1938-39 was possible only because.accompanied by an increase in the public
debt.
The last fire years have been marked by something of more significance
than differences from year to year or period to period in balatice of trade.
This is the decrease ih the value of Haitiari exports due to 6ower comifnodity
values'on export i~krlets:;nd the fadt thit an increase in production volume
has not been fast enough to: equalizd this decline'in cash ;value bf'exports.
We have seen: ibbve that'the total value of foreign trade during the last-
five years dropped to Gdes. 402,827,000.00 from Gdes. 483,256,000 in the
preivibts- five yeais. Foreign trade was valued at Gdes. *933,342,000-in the
five-years from 1924-25 to 1928-29.inclusive. Haiti's foreign commerce hast
therefore obviously lost-one half of the value it had ten years.ago-. Export-
values were lessened by price declines .inr-Haiti's most important.exports
and by smaller volume of coffee crops. Coffee'which has. consistently been::
Haiti's most':valuable product brought an.:average of Gde. 1.60 per kilo'
fr6m:1916-17 to 1934-35:: In 1938-39 the .average return per.kilo has. been:





HAITI;. REPORT OF FISCAL REPRESENTATIVE


Gde. 0.64. The volume during the last few years has been below average
but the price decline has been of greater importance. This can be better
appreciated by comparison of the present value of crops with the value of
crops in those previous years when the volume was about the same. The
coffee crop of 1938-39 was 29,284,000 kilos; it sold for Gdes. 18,729,000. A
crop of comparable size (kilos 29,402,000) was harvested in 1923-24; it sold
for:Gdes.. 51,808,000. Or again the 1928-29 crop (kilos 28,536,000) sold
for Gdes. 64,494,000. We could cite other examples of price declines for
cotton, cacao, sugar, etc., but coffee values during the past twenty-three
years have represented over 70 per cent of the total values of all exports.
The decline inexport values necessarily meant a decline in purchasing
power; arid consequently carried with it a corresponding shrinkage in im-
portation. Little manufacturing is done in Haiti, and the importation list
comprises, -in' the order of their respective values during 1938-39, cotton
textiles, foodstuffs, gasoline and kerosene, iron and steel products, auto-
mobiles and trucks, household utensils; soap, chemical and pharmaceticial
products, lumber, etc. A review of the import classifications shows a sur-
prising number of articles which are necessities of every day life if a decent
standard of living ,is to be maintained. With: the exception of foodstuffs
practically' none of; ite foregoiiigarticles;cari be had unless imported. And
without them it would seem that the standard of living must necessarily
suffer.;:- : ,:; :' : : : ,.
'I The standard'of-liryiig iii:Haiti is measured bythe quantity'of;imports
rather than threatened by lit. Haitians are not 'presently overfed; over-
clothed nor unduly surrounded by luxuries.'.,Ii, the last-analysis it: is the
total of merchandise which Haiti can afford to import which determines
the standard of living, not small differences between imports and exports as
such, over any length of time. ...
,. f cconq onditonnditos rc imports below a certain point-and we are
not prepared to say just hlowf.ar he recent importation levell was above
that point the stanldrd of Iliving will of n~icessity drop. .
Since importation will rise if export values peinit we may say thattie
standard of 'iviig, the" paymnit of foreign indebtednessg the hiuli'ple
activities of the Governmnent -''ll depend upon export values." It ig tfile-
fore with lokic that fhe government' dui-ing alAl" recent,'yars has p'u'rsued an
aggressive policy calculated to increase export values by increasing'"the
quantify and imlioving'the qualify of expot 'prodiicts aird it is 1ogiacal'that
thl gove-inment: 'ifice the'decline- in 'prices :for coffee and other coinmfibdities
should intensify tithjibicy? ven though it invi'i'es'.;ii increase'in tl~epblic
debt. The program ft ptiblic'.works was undertaken to supply the ofintry
with the economic equipment necessary and incidental to an increase -in
production. The program'stresses better 'roads, bridges, and wharies to
facilitate tf-ansportation to market;'new toads where they will provide outlets
for -prodtuce:in':eeinoiiidally: justifiable qutintities; irrigation,. and drainage





28 HAITI: REPORT OF FISCAL REPRESENTATIVE

of lands potentially productive. A palt of the program is aimed towards
extending, agricultural crops and improving the quality thereof. The gov-
ernment is encouraging the investment of foreign capital in, new agri-
cutltural enterprises. These are the very wise methods by which the govern-
ient is attempting to increase exports.
-In conclusion it maybe stated that there is little evidence indicating that
the standard of. living in Haiti has declined in recent years. On the con-
trary, there appears to have been steady improvement. There has been
decline in the total value of imports as compared with, say, ten years ago.
The most drastic decreases have ,been in imported foodstuffs and these have
been replaced by foodstuffs produced domestically. Then too it should be
noted that there have been price declines for imported articles and in many
.cases volume has not decreased to the extent that import values have
,declined. Thirdly when the decline in importation approached the point
where it would seem that the standard of living must have suffered from
:further declines in purchasing power, remittances abroad on the foreign
debt .were temporarily reduced, and the public works program, pending an
increase in world commodity prices, was undertaken.
The public works program by providing employment and maintaining
to a certain extent the purchasing power of the country has permitted during
the past year the purchase abroad of those things necessary to the con-
tinuation of the present standard of living. It has in a sense provided a
breathing spell until increased exportation following execution of the pro-
gram will again make Haiti's exportation sufficient in value to cover the
necessary purchases from abroad.

Ports of Entry for Imports
Port-au-Prince was during 1938-1939 the principal port of entry for
imports. During that year, 78.03 per cent of all imports were handled at
this port. During the last fiscal year, 75.44 per cent of all imports were
entered at Port-au-Prince.
For the fiscal year 1938-1939, imports at Port-au-Prince were valued at
Gdes. 31,912,731. In 1937-1938, entries through this port were valued at
Gdes. 28,649,575. There was an increase of Gdes. 3,263,156, or 11.39 per
cent.
SThe total increase in value of the import trade was Gdes. 2,929,794. The
increase in the value of imports at Port-au-Prince shown above, was Gdes.
3,263,156. This is in line with the trend towards concentration of imports
at Port-au-Prince noted during the past few years. As interior and coastal
transport facilities have developed imports through the port of Port-au-
Prince have increased, and in general, diminished at the other ports.
SAs was the case last year, Cap-Haitien was second in importance as a
port of entry. Imports through this port during the year under review





HAITI: REPORT OF FISCAL REPRESENTATIVE


were valued at Gdes. 2,821,329, which amount was 6.90 per cent of total
import values. During 1937-1938, imports through Cap-Haitien. were
valued at Gdes. 2,994,654, representing 7.89 per cent of total imports.
Cayes whose share of the total import trade was 3.70 per cent, valued at
Gdes. 1,513,316 was third in importance. Cayes also occupied third place
in 1937-1938 with imports valued at Gdes. 1,779,134, representing 4.68 per
cent of the total. The decline was Gdes. 265,818, or 14.94 per cent.
In fourth place was Gonaives with 3.23 per cent of total' imports valued
at Gdes. 1,321,642, a slight increase over the values for 1937-1938, which
were Gdes. 1,178,769. The increase in value was Gdes. 142,873, or 12.12
per cent.
Merchandise valued at Gdes. 891,163, representing 2.18 per cent of total
import values was imported through Saint-Marc, placing it fifth in order
of importance. In 1937-1938, Saint-Marc was also in fifth place with imports
valued at Gdes. 850,787, representing 2.24 per cent of total imports. The
increase was Gdes. 40,376, or 4.74 per cent.
As compared with 1937-1938, increased import values were recorded at
the ports of Aquin (41 per cent), Jacmel (19 per cent), Jeremie (2 per cent)
and Petit-Goave (19 per cent). Declines were noted at the ports of Fort-
Libert6 (9 per cent), Miragoane (1 per cent) and Port-de-Paix (26 per
cent).

Ports of Shipments for Exports

Exports, during 1938-1939, increased both in volume and value over
those of 1937-1938. In volume, all the major crops, with the exception of
cotton, recorded increased production. Except in the case of cotton and
sisal the income received from the major crops was greater than in the
previous fiscal year. However, values failed to increase in the same pro-
portion as production.
The flow of exports through Port-au-Prince increased from 38.74 per
cent of the total in 1937-1938 to 40.66 per cent in the year under study.
Export values at that port in 1937-1938 were Gdes. 13,457,669 and Gdes.
14,774,888, in 1938-1939, an increase of 10 per cent.
Port-au-Prince is and will remain for many years to come the principal
outlet for export products. However as the production of bananas, sisal
and other export products increases the relative importance of Port-au-
Prince as a port of export will diminish.
Cayes during 1938-1939 was second in importance in the export trade,
having handled 8.93 per cent of all exports, valued at Gdes. 3,245,217. In
1937-1938, Cayes' share of the export trade was 8.30 per cent of the total,
valued at Gdes. 2,884,458. The increase in value was 13 per cent.




HAITI: REPORT OF FISCAL REPRESENTATIVE


SAt Cap-Haitien export values rose from Gdes. 2,882,656 during the last
fiscal year to Gdes. 3,104,499 in 1938-1939, an increase of 8 per cent, and
the share of this port in the total export trade rose from 8.30 per cent in
1937-1938, to 8.54 per cent in the year under review.
...Saint-Marc, as a port. of export also recorded an increased percentage
of total exports and an increase in export values, when compared with the
previous fiscal year, -In 1937-1938, Saint-Marc accounted for 7.92 per cent
of all exports valued at Gdes. 2,749,033. During 1938-1939, exports passing
.through this port were 8.20 per cent of the total, and were valued at Gdes.
2,977,976. The increase in value was 8 per cent.
As an export outlet, Fort-Libert6 was in fifth place with 7.14 per cent
of the total, valued at Gdes. 2,595,612, a decrease of 16 per cent from the
1937-1938 figure of Gdes. 3,094,361.
Jacmel, in sixth place, recorded an increase of 24 per cent in the value
of the products exported, as compared with 1937-1938, and 7.02 per cent
'of total exports valued at Gdes. 2,549,574,.passed through that port.
The remaining 19.51 per cent of total exports was shared by the other
ports as follows: Gonaives 6.57 per cent; Petit-Goave 5.40 per cent; Port-
de-Paix 3.44 per cent; Miragoane 2.30 per cent; Jeremie 1.72 per cent,
and Aquiin .08 per ont.
The 1938-1939 coffee crop reached 29,283,933 kilos, Port-au-Prince
shipped 8,380,964 kilos of this amount. As an outlet for coffee, Jacmel
was in second place, 4,084,011 kilo.s of this commodity having passed
through that port during the year. Cayes exported 3,751,360 kilos, Go-
naives;3,357,040 kilos, Petit-Goave 3,107,960 kilos and Cap-Haitien 2,854,251
kilos; :The .balance of.the crop was:exported through five other ports
ranging from, in the- case of Saint-Marc 1;382,139 kilos to 32,000 kilos at
Aquin. ..
Well"over half the cotton crop was- exported from Port-au-Prihce, the
amount shipped from' that port being 2,819,083 kilos out of total shiptme*ts
of :4,671,839 kilos. Saint-Marc offered an outlet to 1,333,324 kilos: of this
product. In i'dird place was Gonaives with exports of 294,923 kilos. The
balance, was distributed among Miragoane (106,273- kilos), Cap-Haitien
(50,306 kilos), Jacmel (37,196 kilos) and Cayes (30,734 kilos).
..: Haiti's largest sisal plantation is located at Fort-Liberte,:and naturally
the,bulk of the sisal.exported is credited to that port. During the year,
7,102,342 kilos of sisal were exported there. Cap-Haitien shipped 213;449
kilos of this product and Port. u-Prince 112,499 kilos. A small amount,
5.9,023 kilos of. wild sisal..wa- exported through Miragoane.
*.'The only sugar factory producing for export is located on the out-skirts
Of Port-au-Prince, and this port handled 38,265,262 kilos of the 38,267,051
kilos of raw and refined sugar exported during the year.- .






HAITI: REPORT-OF FISCAL REPRESENTATIVE.

..The following. table shows -the number of stems of bananas exported
during the year, the values and the ports of shipments:
Stems Goardes
Cap-Haitien ................................ 539,716 842,459
Cayes ...................................... 232,599 293,016
Gonaives ..................................... 29 38'
Jacmel ...................................... 180,954 273,371 ,:.
Miragoane ................................ 37,653 52,470
Port-au-Prince............................ 201,644 210,283 ;:
Port-de-Paix .............................. 324,535 442,792
Saint-Marc ................................ D12,637 706,250
2,029,767 2,820,679 : .

While the number of stems exported by Cap-Haitien exceeded slightly
the number shipped through. Saint-Marc during 1938-1939, it is expected.
that the extensive development of banana cultivation now under way. in the
Saint-Marc region will soon make that port the leading port of shipment
for bananas.
Shipping '

Freight rates through the first eleven months of the fiscal year 1938-1.939
remained at the high levels established in 1937 and-in the early months pof;
1938. Although commodity prices declined steamship owners estimated
the transportation facilities they offered to be worth much more than .they
were worth in the days when shippers were in.a much better position to
pay. higher rates. As the International Freight Conferences have destroyed
competition there is no choice other than to pay or not to ship..
The outbreak of war in September almost immediately brought about
a fifty per cent increase in freight rates from Haiti, to neutral European
ports and a twenty five per cent increase in rates to South .and Central
American ports. .
SThe report that an attempt would be made. to. increase freight rate
between Haiti and the United States was the subject of the following
comment in the Monthly Bulletin of the Fiscal Representative for Septem-
ber, 1939:
"Information has come to the-attention of this office that certain
: of the lines serving Haiti are again endeavoring to have the New York
Haiti Conference authorize :an increase in freight rates between- Haiti
and the United States... Freight rates between Haiti and European
-countries already have been -increased. If the New York Haiti Gon-
Sference lines carry.through this plan, Haiti's position, difficult as:.it is
at the present time, will be.increasingly prejudiced, and it is sincerely
to be hoped that after Haiti's unhappy experience of constant increases
during the past several years, the.lines may at least realize this country's
difficulty in meeting the competition in export.markets, and stop this
type of attack. Increase in war- risk insurance, and in operating cbstf





HAITI: REPORT OF FISCAL REPRESENTATIVE


due to war conditions may justify some lines in such upward freight
tariff adjustments, but all lines serving this country are not similarly
affected and for those which do not share these new costs no new
freight charges can be justified, until either by reason of operation cost
increases or new war-caused conditions there is a real need".
During 1938-1939, the number of steam and motor vessels calling at
Haitian ports was 657. During the previous fiscal year, the corresponding
figure was 655. :For the fiscal year under review the net registered tonnage
of these vessels was 1,595,770, as compared with 1,518,449 in 1937-1938.
Included in these figures are the 28 tourist ships which visited Haitian
ports during the year.
Entries of American vessels in the Haitian ports declined by one from
the 1937-1938 figure of 229. Arrivals of vessels flying the British flag
increased by 9 over the 1937-1938 figure of 52. The number of Dutch
vessels rose from 158 in 1937-1938 to 172 in 1938-1939. There was an
increase of 9 in the number of the French vessels touching Haitian ports
during 1938-1939 over the number arriving in 1937-1938, which was 30.
The number of German vessels entering increased from 68 in 1937-1938 to
69 in 1938-1939. Entries of vessels of other nationalities declined by 20, in
falling from 118 in 1937-1938 to 98 in 1938-1939.
During the year under study ample cargo space was. provided by the
steamship lines serving Haiti for the principal import and export products.
The lack of adequate passengers facilities between Haiti and New York at
certain seasons of the year remarked upon in previous reports continued
to errbarrass travel.
As in previous years, American vessels shared in the import trade to a
greater extent thin vessels'of any':o'het nationality.'
During 1938-1939. vessels flying the American flag transported to Haiti
import commodities valued at Gdes. 18,801,506, representing 45.97 per cent
of total imports. During 1937-1938, American ships carried 49.22 per cent
of imports valued at Gdes. 18,691,802.
Next in importance in the import trade were vessels of Dutch nationality
which transported 27.69 per cent of total importations valued at Gourdes
11,326,340 during 1938-1939. This was a slight increase over the proportion
of imports carried by Dutch vessels in 1937-1938, when they carried 23.80
per cent of total importations valued at Gdes. 9,038,042.
Third in importance in the import trade were Norwegian ships which
carried to Haiti during the year 12.89 per cent of total imports valued at
Gdes. 5,271,180. As usual imports carried on vessels of Norwegian registry
came largely from Southern ports of the United States. Vessels flying the
German flag transported during the fiscal year under review 7.60 per cent
of total imports valued at Gdes. 3,110,528. During the same year, French
ships carried 2.72 per cent and British vessels 1.36 per cent of total imports.
Only .14 per cent of the merchandise imported into Haiti during 1938-1939




HAITI: REPORT OF FISCAL REPRESENTATIVE


was carried in Japanese vessels. The balance of all imports, 1.63 per cent
was carried by vessels of nationalities other than those mentioned.
Of imports from the United States during the year, 50.36 per cent were
carried in vessels of American registry, 27.50 per cent in Dutch vessels and
19.51 per cent under the Norwegian flag. English, French and German
ships with vessels of other nationalities carried the remaining 2.63 per
cent.
During previous years, the greater part of the merchandise imported
from the United Kingdom arrived in Haiti via New York. American
and Dutch vessels consequently carried from New York on to Haiti the
greater part of the merchandise irqported from that country. This was
was also the case during 1938-1939 when ships of American registry carried
51.28 per cent of the imports from the United Kingdom and Dutch vessels
38.11 per cent.. German vessels arriving from Europe participated in this
trade to the extent of 7.06 per cent, whereas British vessels from the British
Isles carried only 2.09 per cent.
During 1938-1939, over one half of the imports from Belgium were
carried in German vessels clearing from European ports. The exact amount
was 53.17 per cent. American ships carried 31.16 per cent of these imports
in transit from the United States, and the balance 15.67 per cent was
transported to Haiti by vessels of Dutch, French, Norwegian and other
nationalities.
Haiti received 70.66 per cent of its importation from Holland directly
from that country on vessels of Dutch nationality. American ships shared
to the extent of 25.97 per cent in this trade and German ships carried 2.67
per cent. French vessels carried 45.50 per cent of Haitian imports arriving
from France. American vessels transported 29.83 per cent of French goods
shipped to Haiti. Dutch vessels carried 22.75 per cent of this trade, while
German vessels participated only to the extent of 1.48 per cent. During
1938-1939, the greater part of the merchandise imported from Italy came
via New York. The records show that 70.69 per cent of these imports were
carried on American ships. Dutch vessels accounted for 12.55 per cent of
this trade and German ships for 13.03 per cent. The balance, 0.73 per cent,
was carried by vessels of other nationalities.
,During the fiscal year 1938-1939, foreign vessels carried 94.58 per cent
of all merchandise imported from Japan. Only 5.42 per cent of merchandise
of Japanese origin arriving in Haiti was carried on Japanese vessels. Ships
under the American flag shared 70.44 per cent of this trade and Dutch
vessels carried 19.78 per cent.
Czechoslovakia is another nation which shipped a large part of its exports
to Haiti via New York. In consequence, American vessels carried 55.87
per cent of all imports from that country. Dutch vessels were in second




HAITI: REPORT OF 'FISCAL REPRESENTATIVE


place in this trade, harving'transported 32.41 per cent of imports of Czecho-
sliovakian origin; while German vessels took third place with 11.70 per
cent. .
:,.Germany has 'direct-.steamship connections with Haiti. As a result
.German vessels carried 75.81 per cent of -total imports from Germany.
American vessels transported to Haiti 10.72 per cent.
Merchandise imported from Canada was received as follows: Norwegian
*yessels brought 32.43 per cent; Dutch vessels 28.74 per cent; American
vessels 26.00 per cent; British ships 8,70 per cent and the.remaining 4.13
per cent was carried by ships of various other nationalities.
. In the export, trade during 1938-1939, it was noted that over half of
.H.aiti's exports were carried in Dutch and English bottoms. Dutch vessels
,participated in the extent of 31.14 per cent in this trade and the British
share was 20.68 per. cent. During 1937-1938, American. vessels took the
leading.place in the export trade with 31.27. per cent of all exports, while
vessels of Dutch nationality followed with 31.19 per cent. In 1937-1938,
vessels flying the British flag were in third place with 11.47 per cent of the
total.
French ships took third place in the export trade during 1938-1939,
having transported 15.30 per cent of total exports, whereas in 1937-1938,
they carried only 9.60 per cent and occupied fifth place.. American ships
carried 13.40 per cent of total exports in 1938-1939, taking fourth place.
The decided decline in the relative importance of American vessels in the
expert' traffic was due principally to the withdrawal of the Colombian Line
libm the Haitian trade in April 1938. No American ships on regular
schedules served Haitian ports other than Port-au-Prince and Cap-Haitien,
After that date.
: The percentage of Haitian exports carried in German vessels declined
f-roni 10.61 per cent in 1937-1938 to 9.92 per cent in 1938-1939.
:-Norwegian vessels took only-2.25 per cent of Haiti's exports in 1937-
1938, whereas in 1938-1939 the Norwegian share in this advanced to 5.09
per cent. The remaining 4.47-per cent of Haiti's exports was carried on
vessels of nationalities other than those mentioned.
:.Nearly half (48.53 per cent) of the exports to the United States from
Haiti were carried on vessels of Dutch nationality; 23.57 per cent on
American ships; 5.14 per cent on British vessels; 9.81 per cent on Norwe-
gian ships and the balance 12.95 per cent on vessels of other nationalities.
During the previous fiscal year, American vessels took the first place in
Haiti's export trade with the United States, carrying exactly 51.30 per
cent of the total exports to that country.
For the fiscal year under review, France was the second country in
importance in the Haitian export trade, and French ships carried 38.44 per
cent of the Haitian products shipped to that country. Following in second
place were British vessels with 23.86 per cent; in third place were vessels





HAITI. REPORT OF FISCAL REPRESENTATIVE 35

flying the Dutch flag with 15.21 per cent. German vessels participated to the
extent of 14.45 per cent in Haiti's trade with France; Norwegian vessels
accounted for 4.16 per cent, while American vessels took part in this traffic
only .to the extent of 3.88 per cent of the total. '
Of.total exports to the United Kingdom, British vessels carried 59.92
per cent, .almost two-thirds of the total. French and American vessels took
respectively 11.91 and 11.39 per cent of the total, while Dutch vessels
shared in this trade to the extent of 9.48 per cent; German ships 3.94 per
cent and Norwegian vessels 3.36 per cent.
-As in 1937-1938, Dutch vessels had the largest share in Haiti's export
trade with Belgium. Shipments to that country were divided among the
vessels of various nationalities as follows: Dutch 32.66 per cent, French
24.10 per cent, British 16.01 per cent, German 18.05 per cent, American
9.18 per cent.
:.Nearly all Haiti's exports to Germany were carried in German bottoms
the exact figure being 93.64 per cent of the total. The balance was divided
as follows: Dutch vessels 3.66 per cent; French ships 2.52 per 'cent, and
American ships 0.18 per cent.
During 1937-1938, Dutch vessels were second in importance in Haiti's
export trade with Italy having carried 26.16 per cent of the Haitian products
shipped to'that country. In 1938-1939, vessels of Dutch nationality were
first in importance in this trade carrying 62.37 per cent of Haitian exports
to-Italy. American ships which in 1937-1938 were in first place with 44.38
per cent fell to second place during the year under review with 21.60 per
cent. German vessels carried 15.84 per cent and French vessels 0.19 per
cent of all exports to Italy.
The bulk of the merchandise exported to Holland was carried on vessels
of Dutch nationality, the exact figure being 87.38 per cent. American vessels
took 6.16 per cent of these exports; French ships 3.26 per cent and British
vessels 3.20 per cent.

Tourist Trade

Three new ten thousand tori vessels of the Panama Railroad Steamship
Company were put into service on regular schedule between Panama and
New York during the year. Port-au-Prince is a regular port of call for
these vessels on both .their northbound and southbound' voyages. These
attractively designed ships are more modernly equipped to serve the con-
venience and safety of passengers than any ships heretofore in regular
service to Haitian ports. In fact, passenger service between New York.
and Port-au-Prince would now leave little to be desired were it not for the
difficulty experienced in obtaining reservations.
.,As much cannot be said for travel between New York and Cap-Haitien.
Milot and the Citadel make the latter city of special interest to tourists. In





* HAITI: REPORT OF FISCAL REPRESENTATIVE


possessing the ruins of the beautiful old place of Sans Souci at Milot and
the famous Citadel La Ferriere built by King Christophe, Haiti has two
historical monuments certainly among the most interesting in the western
hemisphere. Unfortunately the Citadel has not always been, and is not
now, easily accessible to tile many persons who, but for the inconvenience
involved, would enjoy visiting it.
For a short time the Colombia Line ships touching at both Port-au-Prince
and Cap-Haitien afforded an opportunity for persons coming to Port-au-
Prince to visit the Citadel. It was possible on the northbound trip to stop
for nearly a day at Cap-Haitien. Many tourists debarking at Port-au-
Prince found opportunities to take the trip overland from Port-au-Prince
to Cap-Haitien, and continue their voyage north from there after a more
leisurely trip to the Citadel. Since the Colombia Line discontinued service
in April 1938, ships of the Grace Line on their northbound trip have been
the only large passenger ships on regular schedules to visit Cap-Haitien
and they do not stop at Port-au-Prince on either north or south bound
voyage. During the year these ships of the Grace Line and special cruise
ships have been the only means for tourists to conveniently visit Milot and
the Citadel. Tourists from these ships have demonstrated that the visit
to the Citadel is very popular. More cruise ships were booked ito catl
4t Cap-Haitien in the fall months of 1939 than ever before. By way of
comparison, four cruise ships called at Cap-Haitien in the previous year
while twenty-two were booked for September, October, and November
1939. These calls were cancelled because of the outbreak of war.
Naturally cruise ships from Europe scheduled to touch Haiti during the
coming season will be few. On the other hand it is possible that the diffi-
culties in the way of American tourists traveling in Europe may result in
more travel between the Americas and to the West Indies but unless special
arrangements are made by shipping authorities Haiti will not be permitted
to share .in this tourist movement.
A law curbing the abuses of outdoor advertising has been passed since
the end of the fiscal year. This should tree Haiti from one of the greatest
annoyances which tourists encounter in present day travel.
One of the projects of the Government to be carried out by The J. G.
White Corporation has a direct bearing on development of the tourist trade
in the North of Haiti. It is the resurfacing of the road from Cap-Haitien
to Milot. Improvements to the Kenscoff road likewise should benefit the
tourist trade.
For more effective handling of problems arising in connection with the
development of the tourist trade a National Tourist Bureau was established
during the year.
However it must be remembered that passenger transportation is of
primary importance to tourist development. No great improvement can
be anticipated anywhere with freight boats as the only carriers. Passenger





HAITI: -REPORT OF FISCAL REPRESENTATIVE


traffic between America and Europe was and is the means of bringing people
by the million to European resorts. In the West Indies where there has
been adequate and comfortable passenger boat service as to Jamaica and
Cuba, there has been a successful tourist development. Where on the other
hand there has been completely inadequate service as to Puerto Rico, Santo
Domingo and Haiti, tourists are not found in sufficient numbers to support
the development of the amenities they expect and require- without Govern-
ment assistance no great improvement is possible.

Foreign Commerce by Months

As a result of the conditions prevailing throughout 1937-1938, importers
were cautious in their commitments at the beginning of 1938-1939, and
imports during October 1938 werevalued at only Gdes. 3,152,451, nearly
a million gourdes less than in October 1937. There was a slight increase
in November and in December the year's peak was reached, Gdes; 4,093,6
Although imports for the first three months of 1938-1939 were on a much
lower level than for the corresponding period of the previous fiscal year,
the next nine months showed a considerable increase over the corresponding
months of 1937-1938. The following table shows monthly foreign commerm
values for 1938-1939 and 1937-1938:
1938-1939 1937.198
Imports Exports Imports Exports
October .................. 3,152,451 1,688,118 4,118,969 3,682,14.
November .............. 3,372,504 1,658,542 4;264,176 2,345,007
December ................ 4,093,670 2,832,140 4,574,072 1,854,701L
January .................. 3,261,562 2,813,086 3,249,363 3,460,37i4
February ............... 3,217,908 3,669,633 2,784,631 3,393,89t
March ..................... 3,753,756 5,781,602 3,510,284 4,573,00
April ...................... 3,267,675 4,385,485 2,801,192 4,460,100
May ...................i 3,514,930 4,479,861 2,254,680 3,333,856
June ................ 2,816,804 2,443,095 2,501,031 2,3094611
uly ...................... 3,064,053 3,081,138 2,393,304 1,660,77'
August ................. 3,777,041 2,166,674 2,493,898 1,881,59k
September .............. 3,611;329 1,338,801 3,028,289 1,777,039
Total .............. 0,903,683 36,338,175 37,973,889 34,731,952

The peak month for coffee exports during 1937-1938 was January, when
3,440,111 kilos of this commodity were exported. The peak month for
1938-1939 was May, during which 4,065,650 kilos of coffee, valued at Gdes.
2,551,083, were exported. Coffee is no longer a seasonal crop as far as
exports are concerned. The improved methods of preparation now in vogue
have resulted in year long shipments of coffee, whereas in past years the
bulk of the crudely prepared crop was usually exported during the first
four months of the fiscal year.
January was the month second in importance with shipments of coffee
amounting to 3,582,748 kilos, valued at Gdes. 2,277,058. December and
March followed, with exports of coffee valued at Gdes. 2,020,472, and Gdes.





HAITL. REPORT.OF FISCAL REPRESENTATIVE


1,921,467, -respectively.. October 1938 and September. 1939 were the low
months, 1,595,689 kilos, valued at Gdes. 1,028,931 being exported during
the first.month and 869,497 kilos with a. value of Gdes. 525,201 during the
second.: :. .
February shipments of cotton were well above the figure for 1937-1938,
814;329 kilos, valued at Gdes. 784,317, having been exported, as compared
with. shipments of 558,246 kilos, valued, at Gdes. 635,321 exported in
February 1938. Exports of cotton during March and April totalled 2,850,866
killos, the value of which was Gdes. 2,700,325. Shipments from then on
declined rapidly. No cotton-was exported during September.

S CHART No. 1
.VALUE OF TOTAL IMPORTS AND TOTAL EXPORTS, BY MONTHS
...." FISCAL 'IEARS 1930-31 TO 1938-39
LIONS OF OURDES____








A .I A MP I




". \ '_ .. "


t. 19..1t J 1.93-54 IP4I 1/93-$ I .$ /3tf 1I937.,. I/ -...

The carry over of the 1938 cotton crop was about 41,000 kilos. Little
cotton pf the 1939.crop remained to:be exported during the fiscal. year 1939-
-1940. ,
The high months for sisal exports were December 1938 (1,154,924 kilos),
July: 1939 (1,041,830 kilos) and September 1939 (1,206,494 kilos). Ship-
ments for these three.months were valued at Gdes. 441,160, Gdes 386,142
and Gdes. 431,713, respectively. -
April recorded exports of:.sisal valued at Gdes. 311.567 and shipments
during May were valued at Gdes. 370,386. The balance of the..crop was
exported rather unevenly throughout the other months of the fiscal year.
-Sisal is harvested and processed all the year round. Exports of this
commodity in any month or period simply:reflect the market demand. :.






-HAITI: 1~P6)RT OF FISCAL REPRESENTATIVE


As is the custom,;the grinding of cane started-early in January-, but little
sugar was exported in that month. In February; exports -of both raw 'and
refined sugar were valued at Gdes. 574,814, in March at Gdes. 1,200,157, and
in April at Gdes. 1,109,333;
The decline in sugar exports from April on was not so marked as it
ha-sbeen in previous years: During the remaining months: of the fiscal
year, May to Septeiber, sugar valued at Gdes. 1,941,459, was shipped,
representing both in volume and value well over. one third of the crop;
Exports of bananas totalled 2,029,767 stems, which were valued at Gdes.
2,820,679. The high month was May when bananas valued at Gdes. 318,416
were shipped. The low tionth was January when exports of bananas bore a
value of Gdes; 150,116.
Exports of bananas from Haiti should continue to increase in volume
-and in value froni year to year. Monthly shipinerits will fluctuate, sometimes
sharply, but yearly statistics should, reflect the systematic, methodical
development of the banana industry in Haiti.;
Total export values fell more or less into their usual pattern; with
:perhaps the-exception of July in which unusually large shipments of sisal
'and sugar were made.
SMarch was the peak month of the year, 15.91 per cent of all exports, in
terms of value, having left the country during that month. May"was: the
second month of importance; with 12.33 per cent of total export values tol
its credit.


The following table shows, in terms of value, by
exports of coffee, arid total monthly exports:
Cofltt
Month Per cent
October 1938.................................. 5.49
November .................... .... 6.49
December :......................;............. 10.79
January 1939............................... 12.16
February ........................... 9.54
March ........ ................. 10.26
April ............................. 8.72
May .............................. 13.62
June ................................ 7.23
July ." ................................... 6.07
August ................................. 6.83
September ...;.................. ...... .... 2.80
100.00


percentages, 'monthly

'All exports '
Per cent
4.65
4.66
4.56
7.79
7.74
10.10
15.91
12.07
12.33
'6.72
8.48
5.96
3.69
100.00


Commodities Imported

From Gdes. 37,973,889 in 1937-1938, import values rose to Gourdes
40,903,683 in 1938-1939, an increase of Gdes. 2,929,794.
While the rise in imports was not great, no decided upturn had been
expected. The present low price level of Haiti's principal export products
preclude the possibility of any marked increase in purchasing power. A slow





HAITI: REPORT OF FISCAL REPRESENTATIVE


,and certain increase in Haiti's capacity to buy abroad is hoped for.as a
;;.result of efforts to increase production, and as there is an improvement
i.,in the quality of the products exported.
The group comprising all textiles and manufactures of textiles again
::was the leading import group, accounting in term of values for 32.1 per
:..cent of all imports, as compared with 33.9 per cent in 1937-1938. Although
.this group declined in its relative importance, the 1938-1939 value of Gdes.
13,142,514 increased by 2.2 per cent over that of 1937-1938. The figure for
that year was Gdes. 12,857,510.
SAs has been true in previous years, foodstuffs was the second group in
.importance, comprising 13.7 per cent of all imports during the year under
review. In 1937-1938, this group accounted for 17.1 per cent of total
%.imports.
.* Not only did foodstuffs decrease sharply in relative importance but the
actual values of the imports comprised therein declined by 13.8 per cent
from those of 1937-1938, when they were valued at Gdes. 6,491,646. The
;value for 1938-1939 was Gdes. 5,598.237.
SGasoline, kerosene, lubricating oils, fuel oils and other petroleum products
accounted this year for 4.1 per cent of total imports, valued at Gourdes
.1,657,733. During the previous fiscal year imports of this category re-
.presented 3.6 per cent of all imports .and were valued at Gdes. 1,437,569.
,The increase in value recorded was of 15.3 per cent.
Manufactures of iron and steel imported during the year under review
, were,valued at Gdes. 2,121,388, an increase of 25.7 per cent over the 1937-
1938 figure of Gdes. 1,687,752. The value of imports under this heading
represented during the current year 5.2 per cent of total import values, as
compared with 4.4 per cent in 1937-1938.
Although there are. several soap factories in Haiti, their production
supplies' only a very small part of the domestic demand for this product.
Soap is one of the important import items, having accounted for, in terms
of value, 4.5 per cent of total imports during the current year and 4.6 per
.ent during the previous fiscal year. Import values for this commodity
during these two years were Gdes. 1,862,458 and Gdes. 1,753,313 respective-
ly. The increase in value over 1937-1938 was 6.2 per cent.
Automobiles and trucks accounted for 3.8 per cent of total imports during
the year, as compared with 2.4 per cent in 1937-1938. The increase in values
recorded was 75.1 per cent.
Of the import groups shown in the following table only three showed
decreased import values when a comparison was made with the year 1937-
1938. These three groups were: foodstuffs which showed a decrease of
13.8 per cent in value; agricultural implements, which showed a decrease
of 33.2 per cent, and jute bags which recorded a decrease of 0.6 per cent.
All the other groups registered increased import values. The most striking
increase was under the heading liquors and beverages which showed an





HAITI: REPORT OF FISCAL REPRESENTATIVE


increase of 128.4 per cent. The increase in this category may be attributed
to the provisions of the Commercial Convention with France which stim-
ulated the importation of wines and liquors from that country.
The relative importance, expressed in percentages, of leading import
groups in each of the last two years, measured by values is shown below:
193-1939 1937.1938
Per cent Per cent
Textiles, clothing .................................. 32.1 33.9
Foodstuffs .............................................. 13.7 17.1
Gasoline, kerosene, etc. .......................... 4.1 3.6
Iron and steel products.......................... 5.2 4.4
Soap ...................................................... 4.5 4.6
Automobiles and trucks.......................... 3.8 2.4
Lumber .................................................. 2.2 1.2
Chemical and pharmaceutical products.... 2.7 2.4
Household utensils........................... ....... 1.7 1.7
Agricultural implements, etc..................... 1.3 2.0
Jute bags, etc. ......................................... 1.4 1.6
Tobacco products .................................. 1.5 1.6
Liquors and beverages............................ 1.8 0.8
All other imports.................................... 24.0 22.7
100.00 100.00

Agricultural machinery, tools and implements imported during the year
were valued at Gdes. 518,285. This was Gdes. 257,626 less than imports of
this category during 1937-1938 which were valued at Gdes. 775,911. The
percentage decline was 33.2 per cent.
Importation of automobiles increased in value by 38.2 per cent. The
value of the automobiles imported in 1937-1938 was Gdes. 514,911. In
1938-1939, the automobiles imported were valued at Gdes. 711,774. Imports
of trucks jumped from 95 in 1937-1938 to 176 in 1938-1939. The value
increased from Gdes. 378,776 to Gdes. 853,483, a rise of 125.3 per cent.
As a result of greatly increased activity in construction work throughout
the Republic, importations oi cement rose from 4,581,696 kilos valued at
Gdes. 322,060 in 1937-1938, to 10,560,710 kilos valued at Gdes. 776,342 for
the year under review. This was an increase in value of 141 per cent over
imports of this commodity for the previous fiscal year.
Imports of miscellaneous chemical and pharmaceutical products were
valued at Gdes. 786,967 in 1937-1938, and during the present year at Gdes.
943,621, an increase of 19.9 per cent. Imports of patent medicines increased
in value over those of 1937-1938 by Gdes. 7,551 or 9.9 per cent.
There was a slight increase in terms of value in imports of textiles.
Cotton piece goods are by far the largest item in this group, which, how-
ever, comprises jute and linen piece goods, silks and woollens as well as
their manufactures. The general increase in the textile group over 1937-
1938 was 2.2 per cent.
Imports of plain woven cotton bleached or unbleached were in 1937-1938,
584,976 kilos, valued at Gdes. 1,893,441. Imports in this category for 1938-





42 HAITI: REPORT OF FISCAL REPRESENTATIVE

CHART No. 2
QUANTITIES OF LEADING COMMODITIES EXPORTED AND IMPORTED
FISCAL YEARS 1910-17 TO 1938-39. ..

EX PORTS "~ 7MPORTS


MILLIONS OF KILOS MILLIONS OrILOS.
o o E T rXT/ILE


\ AAA, ^ .t\ Iv lt s-al,,


MILLION OF KILOS MILLIONS OF HILOS.:
S COTTON L A, I- ,o, I

<=077H A4i A
/V ^ /t/^ .94
\-Owl 1 1 1 1 1 1 1 1 1





HAITI:. REPORT OF FISCAL REPRESENTATIVE


1939 increased to 726,861 kilos, valued at Gdes. 1,992,550. The increase
in quantity was 24.2 per cent, the increase in value was 5.2 per cent.
Imports of plain woven cotton, prints and plain dyed cotton cloth were
recorded:in slightly greater quantities. Purchases of this nature for the
year under review amounted to 1,375,487 kilos, with a value of Gdes.
5,399,392, as compared with 1,201,613 kilos, valued at Gdes. 5,341,699
imported during the previous fiscal year. The increase in quantity was 14.4
per cent, and the increase in value was one per cent.
Cottbn cloth twilled or figured in the loom, bleached or unbleached, also
recorded an increase both in quantity and value. Imports of this nature in
1937-1938 were 100,560 kilos and the value was Gdes. 445,388. During
19381939, 143,916 kilos of this class of-merchandise were imported with
a value of Gdes. 533,725. There was an increase in quantity of 43.1 per
ceit, arid an-increase in value of 19.8 per cent.
S'Itiports of dyed or printed cotton cloth, twilled or figured in the'loom,
also followed the upward trend, the figures for 1937-1938 being 687,470
kilos; valued at Gdes, 2,683,857, as compared with imports.of 708,058 kilos,
valued at Gdes. 2,459,267 during the.year under review.
:;In 'line with the general trend, imports of knit goods for 1938-1939 in-
ereased in value over the 1937-1938 figureof Gdes. 186,442 by Gdes. 63,108
or!34,per cent.
Imports of woollen goods were valued at Gdes. 248,927, as compared
With Gdes. 176,534 during the. last fiscal year. The increase .in value was
41 per cent.
The value of silk and manufactures of silk imported during the year
increa sed by 8.8 per cent over the value recorded for 1937-1938. The figures
of that year were Gdes. 231,850 and for 1938-1939, Gdes. 252,290.
Iniports of wheat flour amounted to 8,374,975 kilos. During the last
fiscal year 7,460,091 kilos of this commodity were imported. The figures
tor' both these years are 'far below the 1916-1917-1938-1939 average.
Although the quantity of flour imported during the fiscal year under review
was greater than that imported during 1937-1938, the value fell from Gdes.
2,772,525 to Gdes. 2,103,752, a decline of 24.12 per cent.
While the great decline in imports of wheat flour may be attributed in
part to the general decline in the purchasing power recorded during'the past
few years, increased local production of foodstuffs has contributed not
only to the decline in imports of wheat flour but to the general decline in
the'foodstuffs group. Particularly is this true in the case of rice, of which
the'annual production in Haiti is constantly on the 'increase. During 1937-
1938, imp6its of rice amounted to 1,013,794 kilos. In 1938-1939, only
601,189 kilos of this commodity were imported. Values dropped from Gdes.
315,051 in 1937-1938 to Gdes. 166,440 in 1938-1939, a decline of 47.17 per
cent.. The yearly average value of the rice imported from 1916-1917 to
1938-1939 was Gdes. 1,163,229.





HAITI: REPORT OF FISCAL REPRESENTATIVE


Among the important items in the foodstuffs group, fish is the one which
has shown the smallest relative decline over a period of years. Imports
of this category were valued at Gdes. 1,128,283 during the last fiscal year,'
and at Gdes. 965,082 during the fiscal year under review, a decline of 14.46
per cent.
Imports of meats and meat products declined by 2.95 per cent from
Gdes. 322,624 in 1937-1938 to Gdes. 313,088 during 1938-1939.
Miscellaneous foodstuffs for the year showed an increase in value of
4.95 per cent. The value.for 1938-1939 being Gdes. 2,049,875, as compared
with ,Gdes, 1,953,163 during the previous fiscal year.
In view of the fact that there has been a striking decline in the foodstuffs
group as a whole it is rather difficult to determine the exact reason for the
increased import values in the commodities comprising the balance of the
foodstuffs group. These are for the greater part luxury or semi-luxury
articles consumed only by the wealthier classes of the population.
Imports of gasoline took an upward turn, rising from 7,692,267 liters in
1937-1938 to 12,663,960 liters in 1938-1939. In 1937-1938, imports of gaso-
line were valued at Gdes. 804,429 and in 1938-1939 at Gdes. 1,105,700, an
increase of 37.45 per cent. The decided increase may be attributed largely
to the increased consumption of gasoline caused by the Public Works
program now underway in Haiti.
Manufactures of iron and steel registered an increase of 25.7 per cent
when compared with those ot the previous fiscal year.
The group comprising bars, beams, rods, plates and sheets used largely
in the building trades showed increases both in quantities imported and
in the values. Imports in this category for 1937-1938 amounted to 841,114
kilos, valued at Gdes. 445,423, and in 1938-1939, the quantity imported was
1,281,720 kilos, valued at Gdes. 564,074. The increase in quantity was 52.3i
per cent, the increase in value was 26.6 per cent.
Imports of pipes and fittings rose in value from Gdes. 83,004 in 1937-
1938 to Gdes. 179,051 in 1938-1939. Imports of nails and tacks increased,
in value from Gdes. 141,386 to Gdes. 200,084. Activity in the building
trades throughout Haiti was considerably greater in 1938-1939 than in 1937-
1938. As a result, imports of building materials were much greater than
those of the previous year. The increase in imports of lumber was parti-
cularly noticeable. During 1937-1938, 4,896.67 cubic meters of lumber were
imported, valued at Gdes. 462,973, whereas in 1938-1939, imports of this
category rose to 8,981.01 cubic meters, valued at Gdes. 917,564. The in-
crease in quantity was 83.4 per cent, the increase in value was 98.1 per cent.
Leather and its manufactures was one of the import categories which
showed declines in all its divisions. Imports of hides and skins diminished'
by 61.4 per cent in quantity and 21.1 per cent in value. Purchases of boots.






HAITI: REPORT OF'FISCAL REPRESENTATIVE


shoes and slippers showed a decline in volume of 16.1 per cent and a decline
of 20.1 per cent in value. All other manufactures of leather declined in
value by 35.9 per cent, as compared with 1937-1938 figures.
Imports of glass and glassware for the year were valued at Gdes. 258,458,
an increase of 16.7 per cent over the previous fiscal year.
Imports of cutlery, however, declined in value by 2.8 per cent from those
of 1937-1938.
Kitchen and household utensils, painted, tinned or galvanized were im-
ported in greater quantities during 1938-1939 than during the previous
year. The increase in quantity recorded was 10.7 per cent, and the increase
in value was 8.2 per cent. However, imports of enameled kitchen and
household utensils decreased by 5.5 per cent in quantity and by 15.1 per
cent in value.
The category comprising tools and implements showed a decided increase
in both quantity and value. The increase in quantity was 287.2 per cent,
and the increase in value was 176.7 per cent.
The radio receiving sets imported during the year were valued at Gdes.
173,012, an increase of 52.6 per cent in value over the fiscal year 1937-1938.
Imports of other electrical appliances, machinery and apparatus declined
from the 1937-1938 value by 4.2 per cent.
Imports of miscellaneous machinery and apparatus, other than electrical,
recorded an increase of 11.5 per cent in value.
The paints, pigments, varnishes, inks, colors and dyes imported during
the year were valued at Gdes. 214,872, an increase of 35.7 per cent in value
over imports in this category during the last fiscal year.
Paper and manufactures of paper imported during 1937-1938, were
valued at Gdes. 603,431. Import values in this class for the present fiscal
year were Gdes. 679,967, an increase of 12.6 per cent.
The Commercial Convention signed with France in June 1938 was in
effect throughout 1938-1939. Under this convention greatly reduced rates
of duty were accorded perfumery, cosmetics and other toilet preparations.
As a result, imports of this class of merchandise rose from Gdes. 413,580
in 1937-1938 to Gdes. 641,713 during the year under review. The increase
in value recorded was 55.1 per cent.
Other items which benefit from the provisions of the French Convention
and which recorded increased import values were: distilled spirits (232.2
per cent), wines (172.1 per cent), liquors (10.2 per cent) and cheese (3.6 per
cent).
Imports of cigarettes for the fiscal year under review recorded an increase
of 5.2 per cent in quantity and an increase of 6.9 per cent in value over
similar imports during the previous year.






HAITI: REPORT OF FISCAL REPRESENTATIVE


. The table below shows C. I. F. prices of various leading imported com- b
modities during the past four years computed from customs records :-
1938-1919 1937-1938 1936-1937 1935-1936 s
Unit Gourdes Gourdes Gourdes Gourdes
Cement................................ kilo 0.07 0.07 0.05 0.05
Fish...................................kilo -0.39 0.42 0.38 0.43
Wheat flour......................kilo 0.24 0.37 .0.39 0.32
Meats................................kilo 1.27 1.35 1.35 1.35
Rice.................................. kilo 0.27 0.31 0.28 0.27 f
Liquors............................. iter 1.22 1.22 1.25 1.50
Lumber;.......................cubic meter 102.17 94.52 106.66 90.29
Gasoline.............................. iter 0.09 0.10 0.10 0.10
Kerosene..........................liter 0.14 0.17 0.17 0.21
Soap......................... ...... kilo 0.54 0.56 0.56 0.52
Cotton textiles.................kilo 3.52. 4.04 .4.08 3.58 s

Lumber, it will be noted, was the only commodity whose unit price
increased over that of 1937-1938.

Commodities Exported ...

"Export values rose frohi Gdes. 34,731,952 in 1937-1938 to Gdes. 36,338,175
in 1938-1939. Nevertheless; 'while total export values increased, among
the:major export items only coffee, sugar and bananas recorded increased
values for the year. Exports of cotton, sisal, cacao, goatskins, cottonseed
cake, logwood and molasses all were lower in value than they were in 1937-
1938. Minor export products rose in value from Gdes., 646,414- to Gdes.
795,006..
., his drop in export values was due solely to lower world prices, not to
lowered production. In volume the export trade was on higher level for
the principal export products, with the exception of cotton, than it was
in 1937-1938. Exports of cotton during 1938-1939 were only 0.21 per cent
ress in volume than in 1937-1938.
Coffee was again, as it will be for some years to come, the principal item
in the' export list. The value of the crop for 1938-1939, Gdes. 18,728,054,
was 51.54 per cent of total export values. In 1937-1938, exports of coffee,
valued at Gdes. 17,327,215, represented 49.89 per cent of the value of all
exports.
-In volume the 1938-1939 crop exceeded that of the previous year by
4,221,299 kilos or 17 per cent. However, the increase in value' was only
Gdes. 1,400,839 or 8 per cent.
Raw sugar, this year, was the second crop in importance. There was a
marked increase in both the value and the volume of the raw sugar exported.
Exports of raw sugar totalled 37,144,990 kilos, valued at Gdes. 4,878,536
representing 13.43 per cent of total-export values. The gain in volume over
the .1937-1938 crop was 11 per cent and the increase in value was 31 per
cent. .






HAITI: 'REPORT'OF FISCAL REPRESENTATIVE .47

SShipmetits of cotton, which have been decreasing yearly, as a result of
bollweevil infestation, amounted to 4,671,839 kilos, a decrease of only 021
per cent from the previous ) ear. Although production remained on the
same level, the drop. in prices for this commodity resulted in a 16 per cent
decrease invalue from the amount received from the 1937-1938 crop.
. Sisal values also failed to keep pace with increased production. Ship-
ments of this commodity, 7,492,062 kilos; were up 4 per cent in volume
from those of 1937-1938, but the value, Gdes. 2,702,274, was 16 per cent
less than the previous year..
Again, banana exports were up both in volume and.in value. Exports
:for :the year amounted to 2,029,767 stems, an increase over 1937-1938
shipments of 49 per cent. Values rose from Gdes. 2,001,128 in 1937-1938 to
Odes. 2,820,679 in 1938-1939, a gain of 41. per cent.
These five export -products,; coffee, cotton, 'sugar, sisal, and bananas
accounted for 92.02 per cent of all export values during the fiscal year
1938-1939.. Other commodities, such as cacao and logwood once occupied
a -much more important place in Haiti's export list. The low prices pre-
vailing for cacao have discouraged production for some years past; Log-
wood, although :plentiful,in Haiti, is so little in demand that it hardly pays
to cut it. .
Production of cottonseed cake -depends-on the size of the cotton crop,
production of molasses upon the, amount of sugar produced. Their position
depends entirely on the crops whose by-products they are.
The relative- importance o.f the leading export commodities for 1937-
1938 and 1938-1939 is shown in the table below:
S 1938-1939 137-1938
Gourdes Per cent Gourdes Per cent
Coffee .................. 18,728,054 51.54 17,327,215 49.89
Cotton ...... ............. 4,416,524 .,. 12.15 5,261,949 15.15
Sugar .......................... 4,878,536 1343 3,728,416 11.21
Sisal .......................... 2,702,274 7.44 3,236,252 9.32
Bananas ................. ... 2,820,679 7.76 2,001,128 5.76
Cacao .. ................... 613,780 1.69 693,608 2.00
Goatskins ............... 396,313 1.09 462,873 1.30
Cottonseed cake ........... 309,916. 0.85 414,508 1.19
Logwood .............. ... .. 287,133 0.79 372,833 1.07
Molasses .................... 389,960 1.07 596,756 1.72
All other ........... ........ 795,006 2.19 646,414 1.39

36,338,175 100.00 34,731,952 100.00

Coffee

The 1938-1939 coffee crop amounted to 29,283,933 kilos. It exceeded by
17 per cent the 1937-1938 crop of 25,062,634 kilos.
It can be stated here with satisfaction that in spite of the merciless com-
petition in the coffee industry prevailing during the past year, and through
their own exchange and licensing restrictions the virtual closing of two







HAITI: REPORT OF FISCAL REPRESENTATIVE


important markets, Italy and Germany, Haiti sold all its crop at a fair
price, as prices go in these days.
This was not accomplished without an effort, nor was it the result of
emergency measures. Haiti's accomplishment in marketing its coffee crop
in the middle price ranges was the fruit of hard work in marketing and of
several years strenuous endeavor to improve its quality. The efforts of
every one in Haiti concerned with the production and preparation of coffee
are showing tangible results.
When, three years ago, the Government determined to put in effect
measures designed to insure better preparation of coffee, there was con-
siderable opposition, openly manifested, from those to whom these measures
would be of the greatest ultimate benefit. It was argued that it would be
impossible to change the antiquated methods of production and preliminary
preparation employed by the Haitian peasant, and that attempts to interfere
with his routine would result in the abandonment of coffee production.
The restrictions placed on the transportation, purchase and sale of poorly
prepared coffee, it was claimed, would result in increased cost of production,
without a compensatory increase in value.
These contentions were predicated upon a presumed intractability of the
peasants, and ignor-ed the missionary work carried on among them for the
past 12 years Iby the Rural Education Service.
The striking improvement in the bulk of the Haitian coffee crop noted
since the beginning of the campaign has effectively silenced all criticism.
Among the most ardent supporters of measures now in effect are many
who at first violently opposed them.
The quantities of coffee exported during the last two fiscal years, by
countries of destination, are given below:
1938-1939 1937-1938
Kilos (000') Per cent Kilos (000's) Per cent
Belgium .................... 5,583 19.0 6,227 24.2,
France .................. 7,677 26.2 2,637 10.8
United States .............. 9,370 32.0 8,855 35.0
Italy .......................... 211 0.7 535 2.1
Denmark .................... 2,868 9.8 2,749 10.7
Netherlands ................ 772 2.6 1,311 5.4
Sweden ................. 318 1.1 680 2.7
Germany .................... 564 2.0 446 1.6
All other .............. 1,921 6.6 1,723 7.6
29,284 100.00 25,063 100.00

The United States, as is shown in the above table was again, in 1938-
1939, the largest purchaser of Haitian coffee, taking 32 per cent of total
exports of this commodity. Although in 1937-1938 the United States pur-
chased 35 per cent of the crop, 8,855,000 kilos, sales to the United States
in 1938-1939 amounted to 9,370,000 kilos, an increase of 5.8 per cent.






HAITI: REPORT OF FISCAL REPRESENTATIVE


In so far as Haiti is concerned the object of the Franco-Haitian Com-
t mercial Convention signed in June 1933 was to establish a market for a
:re part of the coffee crop, consequently it was as a direct result of this that
it exports of coffee to France rose from 2,637,000 kilos or 10.8 per cent of
; the crop in 1937-1938 to 7,676,000 kilos, or 26.21 per cent of the crop in
i 1938-1939. In spite of the sharp upward turn in its purchases of Haitian
coffee, France was far from regaining the predominant position it previously
Held in the Haitian coffee trade.
o Shipments of coffee to Belgium fell from 6,277,000 kilos or 24 per cent
Sof the crop, in 1937-1938, to 5,583,000 kilos or 19.07 per cent in 1938-1939.
In view of the opening of the French market to Haitian coffee, this decrease
at
e CHART No. 3
AVERAGE COFFEE PRICES, P. .HAITIAN PORTS
FISCAL YEARS 1916-17 TO 1938-9

SOOURDES PER KILO





Y_










t#* 7@ /922*23 3-Z4 4a tU U 2W Z@ 9t 0t9aSO ta.o9-r3 J323 33O E*H i7S7M Y 35-3


in exports to Belgium was not unexpected. Antwerp as a distributing
center for Haitian coffee had to face competition from Le Havre.
Danish purchases of Haitian coffee amounted during 1938-1939 to
2,867,000 kilos or 9.75 per cent of total exports. This was an increase of
-118,000 kilos over the 1937-1938 sales to that country.
Exports of coffee to Germany moved slightly upward. In 1937-1938,
purchases of Haitian coffee by that country amounted to 446,000 kilos. In
1938-1939, shipments to Germany totalled 564,000 kilos.
The campaign for the improvement in quality of Haitian coffee was
carried on throughout the year with increased vigor. Hundreds of coffee
drying platforms were constructed in the coffee growing centers, and several
thousand portable drying trays were distributed to the peasants, who were






HAITI: REPORT OF FISCAL REPRESENTATIVE


instructed in their use. New and better equipment continued to be set up
in the coffee processing plants and the increase in capacity of these for
washed coffees is gratifying.
As a result, a greater percentage of the crop than ever before was free
from the defects in taste which at one time rendered Haitian coffee un-
acceptable on the American market.. Several more coffee washing and
drying plants were put in operation during the year, and- the use of me-
chanical depulpers increased considerably.
S.The production of washed coffee increased by about 32 per cent over
that of 1937-1938. Although some years must elapse before the bulk of
the Haitian crop will be exported as washed coffee progress towards this
end has already been made, and efforts to attain it will continue.
The abandonment by Brazil in November 1937 of its coffee valorization
plan, and the subsequent drop in prices, placed the .coffee industry in a
position which might have resulted'in disaster had it not been for the
energetic measures taken by the Government to save the situation.
The outbreak of war in Europe in September 1939 has faced Haiti's
coffee trade with new problems which must be solved. In 1938-1939,'wett
!over 60 per cent of Haiti's coffee was marketed in Europe. What effect war
conditions will have on experts of Haitian'coffee to European markets
cannot yet be fully determined. One thing, however, is certain. The necessT-
ty of conserving: foreign exchange for the purchase of war supplies, re-
duction of conimerce between European countries, the exceedingly disturbed
situation in Czeckoslovakia, Poland and the Baltic countries, higher 'freight
,rates, war'risk insurance costs, afid scarcity bf cargo space wil, all tend to
diminish both purchasing and consumption:of coffee .in the countries of
jEurope.. The importation of coffee into belligerent countries is now strictly
junderGovernment control. What effect this will have on prices and con-
sumptibn cannot now be forseen.
Nevertheless, the situation, in so far as Haiti is concerned, is not.too
discoaging. Prans are under consideration aid measures are being taken
to insure for Haiti a market for its coffee crop under world war conditions.
While for the future when normal commercial relations are reestablished
Haitian coffees will be ready for the certain demand they now merit.

S' Cotton
..Cotton exports for 1938-1939 amounted to 4,671,839 kilos, 0.21 per cent
less than shipments during 1937-1938. Values, however, dropped from
Gdes. 5,261,949 to Gdes..4,416.524, a decline.of 16 per cent.
Since 1935-1936, exports, of cotton have shown steady, and substantial
declines due. to the spread of bollweevil infestation in various parts of the
country. The quarantine and -sanitary measures applied during the. past
few.years seem to have little or no effect on the spread of this pest. That





HAITI: REPORT OF FISCAL REPRESENTATIVE


exports of cotton for 1938-1939 were on the same level as those of 1937-
1938, has been attributed to abnormal weather conditions rather than to
successful efforts to combat the bollweevil.
Cotton, however, is still an important crop and Haiti's soil and climatic
conditions are very suitable for its cultivation. Experiments of several
types of annual cotton have met with more or less success. However, since
annual cotton is much more difficult to cultivate successfully and more
costly to produce the future of Haiti's cotton is doubtful.
The Agricultural Service is attempting to develop by selection a type of
native perennial cotton which will flower and produce at an earlier season
than the existing type. It is believed that if such a type can be developed
that cotton might regain to some extent its past important position in
the Haitian export list.
,Haitian producers of cotton have been not only handicapped by the boll-
weevil, but in common with other cotton producing countries of the world,
they have suffered from ithe excessively low prices offered for this com-
modity during the past few years. The F. O. B. price for 1938-1939, Gde.
0.95 per kilo, reached the lowest level since 1932-1933.
The average prices received for cotton during the last ten fiscal years are
given below:
Gourdes per kilo
-1 939....9 ........................ ................ ........... 0.95
1937-1938.................................... ................ 1.12
1936-1937..................................... ........ 1.42
1935-1936.................................... 1.26
1934-1935............................................................ 1.24
1933-1934.................................. .... ................ 1.29
: : :19~ 32-1933................................. ....... ...... ... ....... 79 -
1931-1932................ ............ .................. 0.64
S 1930-1931... .................................... 1.02
1929-1930 ................. .... .......;............. 2.18

: The United Kingdom wais again Haiti's leading. customer for cotton.
Exports of c6ttori"to that country amounted to 2,818;514 kilos, representing
60.33 per cent of the total crop. France purchased 1,698,248 kilos (36.35
per cent), and the balance, 155,077 kilts, (3.32 per cent), was shipped to
Germany. Japan, 'which in 1937-1938, purchased 716,549 kilos of Haitian
cotton, took none during the year under review.
-Exports of cottonseed cake during the year amounted to 3,787,463 kilos,
a decrease of 24.9 per cent from the 1937-1938,figures of .5,045,697 kilos.
Exports of cotton having been equal to those of the previous year, it
would appear that exports ot cottonseed cake should have been on about
the same level. -The explanation is that a fairly large quantity of the cake
produced from the 1939 crop remained unshipped at the end ofrthenfiscal
year.





HAITI: REPORT OF FISCAL REPRESENTATIVE


rhe United Kingdom took 89.03 per cent of the cottonseed cake exported.
Curacao took 8.94 per cent, and the balance was distributed between the
Canal Zone (1.21 per cent), Jamaica (0.81 per cent) and British Guiana
(0.01 per cent).
Sugar
Exports of sugar during 1938-1939 reached the highest point on record.
F. O. B. prices were the highest since 1930-1931.
Shipments of raw sugar totalled 37,144,990 kilos, valued at Gourdes
4,878,536. This was an increase in quantity of 11 per cent, and an increase
of 31 per cent in value over the figures for the previous fiscal year. The
price per kilo F. O. B. rose from Gde. 0.111 in 1937-1938 to Gdes. 0.131
during the fiscal year just elapsed. Average F. O. B. prices for the past
12 years, as computed from customs records, are given below:
Gourdes per kilo
1938-1939 .......................................................... 0.131
1937-1938.......................................................... 0.111
1936-1937.......................................................... 0.124
1935-1936 .......................................................... 0.108
1934-1935 .......................................................... 0.106
1933-1934 ............. .......................................... 0.108
1932-1933.......................................................... 0.090
1931-1932 .......................................................... 0.108
1930-1931........................................................... 0.140
19,29-1930.......................................................... 0.199
1928-1929 .......................................................... 0.326
1927-1928.......................................................... 0.271

Whether or not the hostilities in Europe will enable the sugar producers
of the world to pull themselves out of the economic morass in which they
have been struggling for many years past is highly problematical. A great
deal depends on the duration of the war, and even more on the general
world situation after the war is over.
A war of short duration will leave the sugar industry very much as it
is now. Faced with potential if not actual overproduction, in a world where
consumers are learning, forcibly, through rationing systems, how to get
along with very little sugar.
A long war is likely to develop an increased demand, higher prices, and
consequent expansion of production. When peace is eventually declared,
huge stocks of sugar may well come to be offered in a market which cannot
possibly absorb them. The catastrophe which befell the sugar industry
ifter the war of 1914-1918 perhaps is again in sight.
The limitations imposed on sugar producing countries in 1938 and 1939
by the Internal Sugar Council have stabilized production, and eliminated
to a great extent surplus stocks. Whether or not the control over export
quotas exercised by this Council under the terms of the International Sugar
Agreement, will tend to restrain over-production on the part of speculatively
minded producers remains to be seen.





HAITI:: REPORT OF FISCAL REPRESENTATIVE


The International Sugar Agreement is effective for a period of five years,
starting September 1, 1937. However, any of the participating countries
may withdraw from the Agreement six months after notice of intention
is given.
It is to be hoped that the stabilizing influence of the agreement will
remain effective for the full period of five years.
Haiti's basic export quota of 32,500 metric tons has been reduced by the
International Sugar Council to 31,000 metric tons for the year beginning
September 1, 1939 and ending August 31, 1940. This cut in Haiti's quota
was made before the outbreak of war.
It has been estimated that Haiti can, during the 1940 grinding season,
manufacture approximately 36,600 metric tons of sugar over and above the
amount required for domestic consumption. This is slightly less than the
amount exported during the fiscal year just closed. In that year Haiti's
quota had been fixed at 29,900 metric tons. However, additional quotas
totalling 7,998 metric tons (7,000 for the free market, 998 for the United
States) were later granted, thus enabling Haiti to export nearly 37,145
metric tons of sugar.
Haiti's chief customer again this year was the United Kingdom, which
purchased 25,600,008 kilos of raw sugar valued at Gdes. 3,493,097. This
represented, in terms of value, 71.60 per cent of the year's exports. France
was in second place with purchases of 8,834,478 kilos. Shipments to France
were valued at Gdes. 1,132.479, which sum amounted to 23.21 per cent of
total values.
Smaller amounts were exported to the United States (Gdes. 214,804),
Curagao (Gdes. 34,362), and insignificant amounts to several other countries.
Exports of refined sugar were shipped principally to the Virgin Islands
(33.44 per cent, in terms of value), the United States (30.62 per cent),
Curacao (30.32 per cent). The remaining 5.62 per cent was distributed
between the Canal Zone, Saint Barthelemy, Saint Martin and the Bahama
Islands.
The United Kingdom took all the molasses exported during the year
with the exception of two kilos shipped to the United States. Total exports
of this commodity amounted to 15,579.610 kilos, valued at Gdes. 389,960.
The 15,898,183 kilos of molasses exported in 1937-1938 were shipped to
the United States.
Sisal
In volume exports of sisal exceeded those of any previous year. The
.quantity shipped exceeded by 4 per cent that of the record year 1937-1938.
The value dropped, however, by 16 per cent to Gdes. 2,702,274.
Haiti produces the highest grade of cultivated sisal, superior to that of
many other countries. While a small amount of wild sisal is exported, the
bulk of the crop is plantation grown.





HAITI: REPORT OF FISCAL REPRESENTATIVE


Total shipments.of this product for the year were 7,492,062 kilos..0:
this amount 7,102,342 kilos were shipped from Fort-Libert6, and wert
grown on the large sisal plantation near that port. Shipments from Cap.
Haitien were much greater than in 1937-1938, amounting to 213,449 kilos.
The Balance of the crop was shipped from Port-au-Prince (112,499 kilos),
Miragoane (59,023 kilos) and Saint-Marc (4,749 kilos).
The sisal industry of Haiti is still in the early stages of its development.
Large areas of cheap land suitable for the production of this crop exist
in various parts of the island. There is an abundant supply of cheap, and
capable labor available for its cultivation.
Plantation grown sisal was first exported from Haiti during the fiscal
year 1927-1928, when 31,341 kilos of this commodity were shipped. Pro-
duction has steadily increased. In spite of the present low prices.quoted
on world markets, production of sisal in Haiti will continue to increase.
Low production costs will make the development of new sisal plantations
an attractive investment .for capital, and justify the prediction that the
sisal industry of Haiti is still in its infancy.
The United States took, in terms of value, 95.89 per cent of the sisal
exported. Germany purchased 3.86 iper cent and Belgium 0.19 per cent. A
small lot valued at Gdes. 1,499 was shipped to Canada.

Bananas
Prolonged abnormal climatic conditions seriously hampered production
of bananas in several regions of Haiti. Nevertheless, exports of bananas
.ihdieased by 49 per cent in quantity and by 41 per cent in-value. :
* During the year under review 2,029,767 stems were shipped, as compared
With exports of 1,363,176 stems in 1937-1938. :..
SHaiti is no'ta country which ordinarily suffers from high Winds, -r which
iisually experiences prolonged droughts. "Both were experieficed during
the'year. As a result'a, total -.f 716,923 steins were blown down. The regioih
surrounding Saint-Marc suffered the most, 341,117 fallen stems having
been counted for that 16cality. Blow downs totalling 238,706 sterm -wnere
irported from th'e' Csp-Haitien"and- Port-de-Paix districts.' Thes' gu.thern
aiMd western parts of Haiti: suffered thle least, only 137,100'fallen steris
having been reported from there. .
Drought in the North, North West and South cut down production; it
is estimated, by another 500,000 stems.
Had it not been for the damages by natural causes done to the crop
exports of bananas this year' would have been well over 3,000,000 stmins.
However, in spite of the loss incurred, further great development of banana
planting is on' the way. Droughts will occur again and local 'storms with
their high winds will pass over the plains of Haiti from time to time. These
natural and to be expected setbacks will have no discouraging effect upon
the planters of Haitian bananas. :






HAITI: REPORT OF FISCAL REPRESENTATIVE


Outbreaks of Sigatoka. disease have been reported' from time to time
throughout the country during the past year.. Some local measures were
taken to prevent its extension. This disease, it has been found, can be

CHART No.. 4
-.. '- QUANTITIES OF BANANAS EXPORTED, BY MONTHS
FISCAL YEARS 131.32 TO 193S39

'" EXPORT3 OF 9A NAHAS BY MONTHS

THOUSAND.s OPF 3STL











16 .... ... .. .. ," .. .. .. .



3o 1.....1.. H.. ...1 .. .. ... .. .


















:ontroll~ed under plantation' conditions, .without. too great expense, but
it is ;necessary to be-sure that adequate and continuous measures are taken
fionce it gets beyond control the industry wi ll be lost to the .small planter.
S~atoka .disease .is.beyond question the most serious menace to Haitian
; : J







: .OADJFMANJJA0NODJT A MJ A8NMDJTMAMJJA3ONDJFMAHJJA8ONDjrTiAYJJASONDJFMANJJAS
19,33-34 ;934-J3 1735-36 1936-37 I937-38 1938-39

controlled under plantation' conditions, without too great expense, but
it .is necessary to be sure that adequate and continuous measures are taken
for.once it gets beyond-control the industry will be lost to the small planter.
Sikiatoka disease is. beyond question the most serious menace to Haitian





HAITI: REPORT OF FISCAL REPRESENTATIVE


prosperity with which the Government is faced today. In the first place
the control measures which are in use in other lands are still new and by no
means beyond the experimental stage. Further each area of the banana
world differs as to climatic conditions from every other, with the natural
result that measures of control must be varied accordingly. Generally it
may be said with justification that large plantations can protect themselves
with chemical spray installations. These are costly and are of course
beyond the resources of the peasant grower. For the small grower several
systems have been developed, in Jamaica principally, and much is hoped
from these. But for the little peasant cultivator even these are too costly.
It is absolutely necessary that this be given immediate and scientifically
effective attention or it may well be that our experience in the future will
duplicate that of other countries where adequate measures were delayed
and ruined farms were the result of this neglect.
During the month of June arrangements were made to finance a very
large extension of the plantations in Haiti. Difficulties of many sorts have
delayed this beneficial development, and it is to be hoped that the coming
fiscal year will see the lost time regained and the actual planting comrnence.
This project is of major importance to the general economy. It will bring
great benefit to the Government, the planters and to local commerce gener-
ally.
All the bananas exported, with the exception of 317 stems, were shipped
to the United States.

Other Exports
Exports of cacao increased in volume and declined in value. The quantity
exported during 1938-1939 was 1,805,357 kilos, 15 per cent more than in
1937-1938. The amount received for this crop, however, was Gdes. 613,780,
a decrease of 12 per cent from the 1937-1938 value.
Unlike West African cacao, Haitian and Dominican cacao is not fer-
mented before drying. Efforts by the British Colonial Service during the
last twenty years to improve the quality of cacao in West Africa have
brought about a quality production and a volume for export which today
sets the world's price standard. There is no reason why cacao as good or
better cannot be produced- in Haiti provided quality production involving
fermentation and proper drying is learned, and measures taken to enforce
proper quality after understanding of correct preparation is sufficiently
widespread to justify control measures. Haiti has been and is losing very
good returns from the point of view, both as to the producer and the go-
vernment, which the sale of quality cacao coiud bring.
The statistical position of cacao for the last ten years has offered no
encouragement to cacao producers, and cultivation of this product in Haiti
has been neglected. It is expected during the coming year, because of the





HAITI: REPORT OF FISCAL REPRESENTATIVE


war in Europe, that prices will be on a distinctly higher level, However;
they will have to remain on the higher level for a number of years before
much interest will be shown by the small cultivator in extending the areas:
planted to this commodity.
Logwood exports were on the downward grade, both: in volume and in
value. During the year under review, 6,919,200 kilos were shipped, which
were valued at Gdes. 287,133. This was 22 per cent less in quantity and 23
per cent less in value than for the fiscal year 1937-1938.
Logwood was for many years third in importance as an export product.
It is now in tenth place. There is little reason to believe that it will ever
regain its former position.
Goatskin exports rose in volume from 161,830 kilos in 1937-1938, to
170,813 kilos in 1938-1939. This was an increase of 6 per cent. Values
dropped from Gdes. 452,873 to Gdes. 396,313, a decline of 12.4 per cent.
Exports of goatskins have shown no marked change, but have remained.
substantially on the same volume level, since the present system of com-
piling statistics went into effect in 1916. The prices paid hardly offer an,
inducement to any increase in quantity.
Exports of honey were 394,947 kilos, a slight decline from the 1937-1938
figure of 398,179 kilos.
Shipments of rum declined in 'both volume and value. While exports of
grapefruit and oranges declined slightly in volume, values in :both cases
were slightly higher than for 1937-1938.
Exports of beeswax and castor beans also rose to higher levels during
the year.
The extensive coconut planting started about three years ago was carried
on throughout the fiscal year just elapsed. Several hundred thousand
coconut plants were set out permanently and about the same number of
nuts planted in nurseries. Few coconuts, and no copra are exported from
Haiti at present.

Commercial Conventions

During the year there was no rectification of those causes Which have
been forcing the volume of world trade to lower levels, and world com-
modity prices downward. If there were any change during the first eleveii
months of the fiscal year, it was rather in the direction of intensification
of the struggle for national economic self-sufficiency among those nations
which had adopted that policy. The outbreak of the long threatened major
war has of course still further restricted international trade.
Pursuance of the self-sufficiency theory has, during recent years, led
many agricultural countries to promote industries and dispense so far as
possible with the necessity of importing manufactured articles; while othei
countries theretofore mainly industrial have sought to promote agriculture;






HAITI: REPORT OF FISCAL REPRESENTATIVE


and dispense so far as possible with imports of agricultural products.
Countries not adapted to agriculture to the extent necessary to supply their
population have sought to develop substitutes for those products which
they cannot produce in sufficient quantities. To the extent that measures
to attain these ends have been successful, markets have been taken from
countries formerly supplying them, and surpluses created in producing
countries. The results are, necessarily, lessened volume of world trade and
lower prices.
Haiti is one agricultural country which has not followed the lead of
countiess working on the economic self-sufficiency 'plan. Haiti has not
adopted self-sufficiency as a guiding principle nor sought to balance its
trade by restricting its imports, or by forcing the manufacture of articles
normally imported.
Haiti has sought, on the contrary, to do what it can to increase world
trade rather than restrict it. Haiti has permitted unrestricted inrportation
aid'has sought to increase its own exportation. To what extent Haiti can
be successful in carrying out this policy while a part of the world with
which Haiti exchanges goods pursues an opposing policy remains to be
seen. It is not encouraging to find values dropping so rapidly that remark-
able gains in volume of exports are more than offset by declining prices.
The freest possible movement of trade throughout the world would be
the most desirable from Haiti's point of view.
The policy underlying Haiti's commercial relations with other countries
is founded basically upon the principle of reciprocal unconditional most-
favored-nation treatment. Haiti has treaties with Great Britain, Canada,
tJUnted States of America, France, Germany, Italy, Netherliands, Belgium-
Luxemberg Union, Switzerland and Denmark, in which Haiti has sought
to establish this principle. Unhappily in several of these, the limitations
of Empire .preferences, quota establishment, special reservations, or ex-
dhange restrictions have served to withhold from Haiti much of the hoped
for benefits.
.No new commercial conventions were entered into during the fiscal year.
'The notable exception to complete allegiance to the policy of unrestricted
most-favored-nation treaties has been Haiti's bilateral conventions with
France. While these pacts are not in violation of most-favored-nation
treaties since whatever reductions in duties are accorded to France apply
equally to imports from countries having most-favored-nation treaties with
Haiti, they do represent a departure from the theory on which unrestricted
most-favored-nation treaties are based.
Over the last decade or so several attempts have been made to.balance
trade between France and Haiti. The last convention was signed in Paris
June 24, 1938. Although trade between the two countries temporarily was
interrupted in September by the European war, a brief review of -the rela-






HAITI: REPORT OF FISCAL REPRESENTATIVE


tions leading up to the last convention and the results obtained from it
may be useful, since the last convention can now be examined in the light
of over a full year's operation.
At the time the first attempts were made to balance trade between the
two countries Haiti was selling a large portion of its coffee to France and
had developed few other important outlets. On the other hand Haiti's
purchases to a great extent came from countries other than France. The
following table shows purchases from, and sales to France since 1927-28.
It shows what value trade between the two countries reached twelve
years ago, and the course trade has taken under efforts to balance sales
and purchases:
Years Purchases Sales
Gourdes Gourdee
1927-28............................ 6,973,138 56,410,703
1928-29...................... ............. 6,768,768 46,233,062
1929-30................................. 4,242,038 35,165,827
1930-31.................................. 3,292,741 22,744,883
1931-32................................. 2,189,710 16,113,937
1932-33................................ 2,202,832 25,275,888
1933-34................................. 2,299,383 27,680,817
1934-35.................................. 2,259,257 14,090,222
1935-36 .................................. 1,996,165 22,296,202
1936-37..................................... .. 1,121,078 7,315,532
1937-38.................................... 1,260,719 4,010,796
1938-39................................ 2,095,663 7,614,544

The foregoing will show that attempts to increase Haitian purchases
from France have not achieved the desired results. The review does
illustrate one interesting result which often features attempts to balance
trade by bilateral trade agreements, that is, the shrinkage of total trade
between the two countries towards the atiount of purchases made by the
country taking the least of the other's products; rather than the desired
increase in the purchases by that country. Meanwhile thiecountry whose
purchases were to be increased by the trade agreement must seek markets
elsewhere for its surplus products.
-"Up until 1936-1937 France took well over half of the Haitian coffee crop.
In 1935-1936, for example, out of a total of 36,090,503 kilos of coffee ex-
ported, France took 24,252,854 kilos. In the following year,. 1936-37, France
took but 5,056,959 kilos- of a total crop of 24,806,858 kilos. In 1937-38
coffee exports to France dropped to 2,636,517 kilos. During 1938-39, the
latest convention between Haiti and France was in full effect throughout
the whole of the year. Under the convention it was agreed that France
would accord Haiti an annual quota of 12,000,000 kilos of coffee. Never-
theless exports of coffee to France increased only to 7.676,560.kilos for the
fiscal year.
Meanwhile Haiti has been able each year to dispose of its coffee. In
seeking other markets Haiti has doubled exports of coffee to Belgium,
and more important still, Haiti 'has gained a new market in the United






HAITI: REPORT OF FISCAL REPRESENTATIVE


States. In 1934-35. the American market took but 62,103 kilos of Haitian
coffee. Since then purchases have rapidly increased. In 1935-36 coffee
exports to the United States were 775,040 kilos; in 1936-37, coffee exports
reached 4,636,019 kilos; in 1937-38, they reached 8,855.473 kilos and in
1938-39 the amount purchased for the American market totalled 9,370.116
kilos.
, If has been pointed out in previous reports that the practical difficulty
in the way of bringing about balanced trade between France and Haiti lies
in the fact that Haiti does not consume. to a sufficiently great extent to
balance sales and -purchases, the luxury articles and specialities which
France produces.
In an attempt to bring about greater consumption of French merchan-
dise the commercial convention of April 12, 1930, accorded substantial
reductions in imports duties on French specialties. The rider to the con-
vention, signed in Malrch, 1934, granted further trade privileges to France
and still further reduced the duties, and removed all internal taxes, on
leading French specialties such as wines and perfumes. Subsequently, the
Haitian government attempted, by informal agreement with France, to
purchase a substantial portion of Haitian government supplies from France.
At the same time, coffee exporters in Haiti were requested to purchase
most of their requirements of empty coffee bags from France. An effort
was made to increase the share of export commodities shipped on French
vessel's.
Although every effort was made to increase purchases from France under
the convention of 1930 and the addition to it of 1934, purchases of French
merchandise did not increase sufficiently to effect any material change in
the relation of export to improve values. The convention was denounced
by France in March, 1936.
* A new commercial convention with France was signed in Paris June 24,
1938, and became effective in Haiti upon publication in the Moniteur July
11. 1938. The provisions of the new convention reflected the objectives
otf the former convention and rider thereto.
=. Under the terms of the new convention the products of France imported
into Haiti were to receive most-favored-nation treatment. The convention
further provided for a reduction of import duties by 33 1/3 per cent upon
certain articles and for the reduction of duties to specifically stated amounts
on certain other French products. On still other products duties were
reduced to certain specifically stated amounts when the products were
designated by specified trade marks. The French government reserved. the I
right to designate additional trade-marked articles of like kind. Uponi
importation into France certain Haitian products listed in the convention
were to enjoy most-favored-nation treatment. France agreed to accord to
Haiti a normal quota of not less than 12,000,000 kilos of coffee per year.






HAITI: REPORT OF FISCAL REPRESENTATIVE


There was provision in the convention for a supplementary quota which
should be determined by agreement between the two governments.
There were other provisions which were not published with the original
convention. One of these provided for a special tax to be paid in France
hy importers granted licenses to import Haitian coffee. The proceeds of
this lax are deposited for the benefit of holders of the 1910 bonds.
In the closing month of the fiscal year the European war interrupted
normal trade channels, and there was no shipment of coffee to France
during that month.
IT is too early to make any predictions as to the effect of the war, or the
cessation of hostilities on the future of Haiti's share in world trade. The
duration and probable cutcome of the war. even the extent of the conflict,
and the countries to be eventually engaged in it, are as yet matters of
conjecture.
It is earnestly to he hoped that the peace following the present conflict
will be such that world trade will not be restricted and hampered as it has
been during the period preceding the war


Tariff Modifications

There were no tariff modifications during the fiscal year equalling in
importance the reduction in export duties on coffee during the previous
year. The shift in the burden of taxation which rcs.i'ted from that decrease
is discussed under Customs Revenues.
One of the modifications of the tariff made during the year was the
restoration of export duties on sugar. During the past few years sugar
duties had been suspended because of the difficulties faced by the sugar
ind.-ustry when low prices left producers but little margin over production
costs. The government, furthermore, has protected the Haitian market
for the local industry by an import duty on sugar. Under these circumstances
it was felt that a tax which can easily be paid out of excess profits in case
of high sugar prices was just and equitable. The new decree provides a
sliding tax based upon the suga.r price level in New York. The modifica-
tion was put into effect by a decree-law dated Septemher 16, 1939. The
sugar shipping season was practically at a.n end when the decree was taken
and the restoration of an export duty had little effect on revenues for the
fiscal year.
By an executive order published October 10, 1938, the exportation of
charcoal was prohibited. The reason for this measure was to discourage
further deforestation.
An executive order published June 10, 1939, abolished the export duties
on cottonseeds.






HAITI; REPORT OF FISCAL REPRESENTATIVE


SAt the outbreak of the war in Europe measures were taken by the govern-
ment to prevent profiteering and unwarranted price rises within dhe
country.
Restrictive measures were taken to prevent excessive exportation of
certain articles and the consequent creation of a shortage. An executive
order published September 18, 1939, prohibited unlimited exportation of
greases, vegetables oils, cotton seeds, corn, beans, rice, manioc and chickens.
The list also included gasoline, kerosene, and lubricating oils since it was
feared that although these products are imported into Haiti existing stocks
might be depleted by reexportation in view of the legislation fixing maxi-
mum prices.
Export quotas based upon the quantities exported in previous years were
assigned for corn, beans, and manioc. It became apparent after the corn
harvest that there would be no immediate danger of a corn shortage and
unlimited exportation of corn until further notice was again permitted.

Customs Administration

Administration and operation of the customs service within the five per
cent fund is discussed in the section on Customs Service under Govern-
ment Expenditures. There were no important changes in customs personnel
during the year. Such changes as occurred are discussed in the section on
Personnel.
Particular attention has been given during recent years to developing an
adequate system of periodical inspection of all customs houses. Such
inspections develop uniformity of procedure in the various customs houses,
and result in greater care of customs properties and equipment, and the
rtmre economical use of supplies. Inspections of the various customs houses.
were made throughout the year by the Resident Inspectors in their terri-
tories,. and from time to time by special inspectors delegated for this
purpose. No grave irregularities were uncovered, although several minor
deviations from standard procedure were found and corrected.
Execution of the customs laws and regulations presented no particularly
new problems during the fiscal year. The chief problems relating to present
smuggling are those in connection with the contraband operations of small
sailboats plying between Haitian ports and neighboring islands, and the
s g ggling of articles over the Dominican border. The latter problem is
one of longstanding. The prevention of smuggling into Haiti of tobacco
grown close to the border has been very difficult. At times the smuggling
of silk goods over the border has also been detected. Coffee, to avoid the
Haitian export tax, has moved in the other direction. Since long sections
of the border are unrpatrolled it is not to be expected that this smuggling
can be entirely stopped. By continued cooperation of the Guard with
customs officials it is hoped to keep this illegal traffic at a minimum. .






HAITI: REPORT OF:FISCAL REPRESENTATIVE


: Measures were taken during the year to insure a closer control .ove
coastwise shipping as a precaution against small vessels, engaged in .this
trade, meeting other ships a.t sea or visiting other islands to deliver or. pick
up contraband articles while supposedly on voyages between Haitian.ports.
During the course of the fiscal .year the port of Anse dHainault was
constituted an open port for the shipment of bananas, only. Statistics on
exportation from the port however are not .shown separately in the tables
of this report; but included in statistics for Port-au-Prince.

Internal Revenue Inspection Service ::'

Under the Agreement of August 7, 1933, it is the duty of the Fiscal
Representative. to inspect the activities of the Internal Revenue Service
and make appropriate recommendations for its proper operation. These
functions are carried out by. the Internal Revenue Inspection Service
operating as a division of the Office of the Fiscal Representative.
SA.cpmplete report of the activities of the Inspection. Service-prepared
by the Inspector General is annexed to this report.

Government Revenues
Total Revenues '
Unless the context denotes otherwise, where "total revenues", or "total
revenue receipts" are referred to in this report the amount to be.understodc!
includes, receipts of the government from customs duties, internal revenue
taxes, and receipts from miscellaneous sources (for the most part interest
received on government deposits or bond investments).
* Theaamounts not included in "total revenue receipts" are referred to as
non-fiscal or non-revenue receipts. These receipts cover deposit in the
government treasury of .surety bonds and guarantees or cash in lieu there-
or, trust funds, payment into revolving funds, and receipts of profitsr'ea-eid
by bureaux of the government operating certain public services. These
receipts are separately accounted for, and, with the exception of amburiti
received and expended under the Public Works Contract, only the net dis-
biursements appear in the monthly and yearly listing of receipts and ex-
peniditures. In former years non-revenue receipts were not ordinarily large
nor far removed in amount from disbursements of the same nature.
'During the past two years, two new items have greatly increased the.sutmn
received and expended by the government as -non-fiscal or non-revenue
receipts and expenditures which call for special mention.,
SOne of the items covers those sums of money received under the Public
Works Contract. The public works program is financed from a revolving
fund, which is replenished by the proceeds of notes discounted from time
to time after expenditures have reached an amount which renders it desirable.






HAITI: REPORT OF FISCAL REPRESENTATIVE


During the fiscal year 1938-39 expenditures under the public works program
were Gdes. 8,321,160.60 and exactly that amount figures as non-,revenue
receipts under Public Works Contract.
Another important non-fiscal item during the year has been the amount
received in settlement of Haiti's claim against the Dominican Republic. The
amount so received (Gdes. 1,875,000) was paid into a special fund to be used
in establishing agricultural colonies for Haitian refugees. There were
receipts from other sources credited to the fund during the fiscal year and
expenditures from the fund left the amount of Gdes. 1,023,563.47 remaining
at Septenlber 30, 1939.
Non-fiscal amounts do not appear in the total revenue receipts shown on

CHART No. 5
TOTAL REVENUE RECEIPTS OF HAII AND EXPENDITURES FROM REVENUES
FISCAL YEARS 1916-17 TO L938-39
MILLIONS OF GOURDSe
:: -- r~ Z :I --:-: -~-I -----ri--


I- .5A--__ .... ....











Chart No. 5; nor do disbuirsdments from these non-fiscal accounts appear in
expenditures as shown on the same chart.
Government receipts from all revenue sources totalled Gdes. 31,145,584.29
during the fiscal year 1938-39. In the preceding year revenues had totalled
Gdes. 28,109,488.87. Revenue receipts increased during the year under report
by Gdes. 3,036,095.42 or by 10.8 per cent over the amount collected in 1937-38.
While the fiscal year compares favorably with 1937-38, the latter year was
one of only two years in the past seventeen in which revenues dropped below
u- ~-m-^----------- _












Gdes. 30,000,000. Receipts during the eight years preceding 1937-38 averaged
Gdes. 34,000,000.
The estimate of ways and means at the beginning of the fiscal year pre-
dicted revenues of Gdes. 29,189,000. Actual revenues collected during the
dicted revenues of Gdes. 29,189,000. Actual revenues collected during the






HAITI: REPORT OF FISCAL REPRESENTATIVE


fiscal year exceeded the budgetary estimate by Gdes. 1,956,584.29. This
excess over estimates is to be ascribed largely as has been explained more
fully in another chapter, to buying in anticipation of higher prices because
of the increasing menace of war and of course afterwards because of the
outbreak of hostilities.
This foreign purchasing was reflected in increased returns from the
import tariff. Receipts from export duties declined as did miscellaneous
government receipts. The increase in internal revenue was but slight in
amount.
Although duties derived from exports declined this was because of the
rate reductions in coffee duties. There was an increase in the total value of
exported products which released a correspondingly greater amount of
purchasing power to be reflected in turn in increased importation. Additional
purchasing power resulted from expenditures made in carrying out the
program of public works. The increase in the total value of imports, com-
bined with the increased surtax on all imports and rate increases for some
articles put into effect in the course of the previous year, accounted for the
17.0 per cent increase in returns from customs duties on imports.
Chart No. 5 shows graphically the movement of revenues and expenditures
from the fiscal year 1916-17 to the fiscal year 1938-39. The chart shows
that surpluses were accumulated from 1924-25 to 1927-28. This period was
followed by four years of successive deficits. Between 1928-29 and 1931-32
expenditures were reduced annually but annual revenues fell even more
rapidly. There was a surplus of receipts over expenditures in 1932-33. There
was a large deficit in 1934-35. In that year nearly half of the spread between
revenues and expenditures represented the five million gourdes paid as the
purchase price of the Banque Nationale de la R.publique d'Haiti. This
amount was an investment rather than an ordinary expenditure.
Government revenues in 1938-39 classified by sources were as follows:
1938-39 137-38
Gourdes Per cent Per cent
Customs:
Imports .... ............................. 20,766,477.70 66.7 62.5
Exports ................................ 4,789,876.20 15.4 17.4
Miscellaneous Customs ...... ...... 75,270.23 0.2 0.3
Internal Revenues ....:......................... 5,022,019.59 16.2 17.8
Miscellaneous Government Receipts.... 254,342.07 0.8 1.0
Receipts from Communes.................... 237,598.50 0.7 0.9
31,145,584.29 100.0 100.0

Customs sources accounted for 82.3 per cent of total revenues: In the
previous year 80.2 per cent of total revenues came from customs sources. It
is of interest to note that 66.7 per cent of total revenue came from import
duties alone while 15.4 per cent was collected under the export tariffs.
The percentage of total receipts derived from internal revenue declined
from 17.8 per cent in 1937-38 to 16.2 per cent in 1938-39. This percentage






HAITI:. REPORT OF FISCAL REPRESENTATIVE


drop was due to the increase in the total of customs receipts since internal
revenue, in gourdes, increased over the amount collected in the previous
year.. :
: Customs Receipts
Total receipts from customs sources in 1938-39 amounted to Gourdes
25i631,624.13. In the previous fiscal year total customs receipts were Gdes.
22,594,312.37. The increase amounts to Gdes. 3,037,311.76 or 13.5 per cent.
; Receipts derived from the import tariff in the fiscal year 1938-39 totalled
Gdes. 20,766,477.70 as compared with Gdes. 17,607,360.82 derived from the
import tariff in the prior fiscal year. Receipts from the import tariff account-
ed for 81 per cent of total customs revenues. In the previous year the import
tariff accounted for 77 per cent.
,..Receipts derived from the export tariff in 1938-39 amounted to Gdes.
4,'89,876.20. In the previous year Gdes. 4,907,527.06 had been collected in
export duties. Export duties accounted for 18.7 per cent of total customs in
L938-39, while in the prior fiscal year export duties had returned 21.7 per
cent of the total,
During the course of the previous fiscal year the export duties on coffee
were lowered to about one half of previously existing rates while import
duties were increased to compensate as nearly as was considered practicable
for the decreased revenue from exports. The. fact that this change was made
after a portion of the previous fiscal year had elapsed explains the:com-
parative increase during the year in the percentage of total revenue received
from import duties and the reduction in the percentage of total receipts
received from export duties. The percentage of total customs receipts re-
caived from import duties during the fiscal year was the highest recorded
during the twenty-eight years for which records are available, and it follows
that the percentage of total customs receipts collected from export duties
was .the lowest.
The burden of the import duties reached 50.77 per cent of the total value
of goods imported. Only such an emergency as existed and still continues to
exist can justify so high a charge on imports. The import burden is the
highest shown by the records from 1915-16 to 1938-39. The export burden
which amounted to 13.18 per cent of the total value of the products exported
from Haiti during the fiscal year is not, however, the lowest recorded. The
explanation of this is to be found in the fact that export duties are specific,
not ad valorem charges. In several years when coffee values were high, the
return from export duties represented a smaller percentage of the total export
value than in the fiscal year just passed. This is true even though the rates
were higher than they are now.
:! The decrease in export duties on coffee and increased reliance upon re
venues from import duties was necessitated by the low price level to which
coffee dropped in November, 1937. Although the change in policy was thus,
in. a certain sense, forced upon the Government it is nevertheless believed







HAITI: REPORT OF FISCAL REPRESENTATIVE


that the greater stability which this policy brings into government revenues
is desirable, particularly now during these days and months of world crises;
The fluctuations in revenues from year to year with the size of the coffee
crop should be much less pronounced.
The principal sources of import revenue in order of yield and compared


to the yield in the previous year, were:


Cotton goods ...........................
Gasoline and kerosene...............
Flour ......................................
Other foodstuffs and beverages
Iron and steel products, ma-
chinery and apparatus............
Soap .......................................
Chemical and pharmaceutical
products ................................
Cigarettes and tobacco...............
Wool, linen, silk goods, jute
bags, etc. ............................
Cement, lumber, etc. ................
Paper, etc. ................................
Leather, shoes, and leather goods
Rubber goods ...........................
Autos and trucks .....................
Glassware ...........................
Earthenware, etc. ....................
A ll other .................................


1938-39
Gourdes
6,381,283.02
3,160,356.46
2,512,424.12
2,031,013.91

1,091,841.67
1,001,288.02

883,624.86
881,278.66

820,552.67
555,057.47
266,551.46
243,397.48
241,902.05
202,260.46
93,457.89
69,919.22
330,268.28


1937.38
Gourdes
5,877,176.21
2,042,194.47
2,185,263.68
1,944,945.91

860,657.60
847,092.23

856,545.63
813,908.84

668,730.49
S290,417.74
222,410.22
309,754.26
206,208.69
121,351.25
84,649.10
57,516.62
218,537.88


Total ............................ 20,766,477.70 17,607,360.82

Despite the reduced rates, coffee duties still accounted for over 90 per
cent of all export revenues in 1938-39. Export revenues by sources were as
follows in 1938-39 and 1937-38:


Coffee .....................
Bananas ................
Sisal ......................
Cotton .....................
All other .................


1938-39
Gourdes
4,326,792
140,634
107,190
98,885
116,374

4,789,875


1937-38
Gourdes
4,471,945
100,300
103,077
99,344
132,861

4,907,527


1938-39
Per cent
90.33
2.94
2.24
2.06
2.43

100.00


That returns from coffee duties decreased despite an increase of 4,221,339
kilos in the crop is due, as explained above, to the fact that reduced rates
were in effect throughout the fiscal year 1938-39, but effective for only a
part of 1937-38.
The fiscal year under review showed a marked change in the monthly
distribution of customs receipts that merits analysis.
Chart No. 1 shows the distribution of foreign trade by months and covers
the fiscal year from 1931-32 up to 1938-39 inclusive. The regularity of the
swings in the export curve stand out particularly. The curve shows increasing
exports from the beginning of the year up to a peak month, generally March.
and thereafter a sharp decline to the lowest point in the middle of the summer,






68 tHAITI: REPORT OF FISCAL REPRESENTATIVE

referred to often as the "dead season", with an upward turn in the last
months of the year. The import curve while not given to such violent fluctu-
ations as the curve representing exports still shows the same general trend.
Latterly both curves have shown a tendency to flatten out and particularly
is this noticeable in the last fiscal year.
The explanation lies in the operation of several concurrent factors. The
first and most important is a different distribution of coffee shipments. Coffee
is harvested in September, October, and November. Heretofore it began
to move to the foreign markets more or less immediately after preparation
and the greatest quantity shipped coincided with the peak of the export
curve in one of the winter, or early spring, months. After the coffee crop
had moved out there was a tendency for exportation to drop sharply.
During the past year the coffee marketing season was spread over a period
of several months beyond the time when previous crops had usually been
shipped. This change came about because of the entry into the American
market and the preference of that market for coffee aged for a longer
period before shipment.
The second factor has been the development of banana exportation. What
seasonal manifestation there has been in banana shipments has been towards
increased exportation in the summer and fall months.
Third, and this factor is of a temporary nature, being peculiar to the
year under review- it was several months before, the purchasing power
released by expenditures under the public works program began to manifest
itself in purchase of goods from abroad to replenish the stocks of merchan-
dise being drawn upon more rapidly within the country.
Finally, during the summer month's of 1939 it was increasingly evident
that war in Europe was coming and the result was advance purchasing of
goods which might not be obtainable from the same sources later. Antic-
ipatory purchasing was also encouraged at the outbreak of the conflict by
the imminent probability of higher war time prices.
Government revenues from customs duties of course follow foreign trade.
The change in distribution of receipts will be best shown by a comparison
of the percentage of total receipts collected in each month of the fiscal year.
These percentages over the past three years have been:
Month 1938-39 1937-38 1936-37
October ................................ 8.9 11.0 8.5
November ............................ 7.4 9.9 8.7
December .............................. 9.4 9.6 11.7
January ................................ 8.2 10.1 10.3
February .............................. 8.2 8.1 9.5
March ................................... 9. 10.6 11.3
April .................................... 7.7 7.7 7.4
M ay .................................... 9.3 5.7 6.2
June ...................................... 6.7 6.7 6.4
July ...................................... 6.9 6.8 7.0
August .................................. 8.9 6.7 5.9
September .............................. 9.1 7.1 7.1
100.0 100.0 100.0






HAITI: REPORT OP FISCAL REPRESENTATIVE


The comparative consistency of monthly receipts throughout the fiscal
year 1938-39 is striking.
From the foregoing table it will be seen that receipts during the first six
months of 1936-37 amounted to exactly 60 per cent of the total for the year,
and during the first half of 1937-38 receipts amounted to 59.3 per cent of the
total collected in that year. In 1938-39, however, only 51.40 per cent of the
year's revenues were collected in the first half of the year and 48.6 per cent
in the second haalf. In contrast with the previous sixty-forty basis, receipts
were distributed in a fairly even manner between the first and second halves
of the year.


Internal Revenue Receipts

Total internal revenue receipts in the fiscal year just ended amounted to
Gdes. 5,022,019.59. In the preceding fiscal year Gdes. 4,990,787.28 were
collected as internal revenue.

The last fiscal year in which internal revenues had exceeded Gdes. 5,000,000
was 1933-34. In 1934-35 internal revenue receipts dropped to Gdes. 4,519,-
504.32. Receipts in each year since then have shown a slight improvement
over the year preceding. To the constant addition of new sources of revenue
must be ascribed this steady increase in receipts. Old established sources
of revenue have shown a tendency to decline, and unless supplemented each
year by new taxes, total internal revenues would have steadily declined from
year to year.

During the fiscal year 1938-39 but one new category of receipts appears
on the internal revenue list and from that new source (Social Assistance
Fund) only Gdes. 9,624.99 were collected. Nevertheless, new sources of
internal revenue were added in January 1938, and the fiscal year 1938-39
was the first full fiscal year in which the new taxes were effective as internal
revenues. These taxes during the period from January to September of the
fiscal year 1937-38 returned Gdes. 275,138.95, and for the complete fiscal year
1938-39 returned Gdes. 421,715.64, or Gdes. 146,576.69 more in 1938-39.than
in 1937-38. The total increase in internal revenues 'being only Gourdes
31,232.31, it is obvious that the downward trend frcm other than new
sources of revenue continues.

In conformity with the trend excise receipts declined. From the amount
of. Gdes. 1,368,704.36 collected in 1937-38 returns from excise dropped to
Gdes. 1,232,642.88, a decline of approximately ten per cent. The following






HAITI: REPORT OF FISCAL REPRESENTATIVE


table will show the relation between excise and all other internal sources of
revenue.
Excise Other Internal Total
1924-25........................ ................ 4,089,926.19 4,089,9.26.19
1925-26........................ .................. 4,155,170.28 4,155,170.28
1926-27 ........................ .................. 4,153,287.97 4,153,287.97
1927-28....................... 61,738.65 4,179,881.49 4,241,620.14
1928-29...................... 2,263,818.37 3,771,446.43 6,035,264.80
1929-30...................... 2,732,478.75 3,887,685.29 6,620,164.04
1930-31.................... 1,889,942.34 3,270,470.99 5,160,413.33
1931-32................... 1,178,076.27 2,752,830.02 3,930,906.29
1932-33...................... 1,844,434.20 3,146,887.96 4,991,322.16
1933-34...................... 1,804,538.79 3,244,363.39 5,048,902.18
1934-35...................... 1,379,168.61 3,140,335.71 4,519,504.32
1935-36 ...................... 1,413,572.56 3,281,853.84 4,695,426.40
1936-37....................... 1,618,896.89 3,345,776.09 4,964,672.98
1937-38....................... 1,368,704.36 3,622,082.92 4,990,787.28
1938-39.................... 1,232,642.88 3,789,376.71 5,022,019.59

Excise taxes were first put into effect in 1927-28. Until the fiscal year
1932-33 excise .revenues were limited to receipts from taxes on alcohol" and
tobaooo. In that year an excise tax on gasoline (since discontinued) was put
into effect to check falling revenues. In the same year salt was added to the
excise list. Since then further excise taxes have been adopted and the excise
list now covers in addition to alcohol and tobacco products, salt, vegetable
oil, lard substitutes, and soap. There was a decrease from the amount col-
lected in the previous year in returns from every excise source except ci-
garettes. A large portion of this tax comes from imported cigarettes.
SDuring the years when receipts from alcohol were high, that is, during the
fiscal years 1928-29 and 1929-30, the alcohol tax was Gde. 0.30 per liter of
alcohol produced of 230 Cartier or under, (over 230 Cartier the tax was
Gde. 0.45). In 1931 the alcohol law was revised and the tax per liter of alcohol
produced was discontinued. The new law provided that each distiller of
alcohol from cane juice should pay a monthly tax of Gdes. 50.00 for each
"pont de chaudiere" of his distilling apparatus during those months or
portions of a month in which his distillery is not closed with permission of
the Internal Revenue Service. A "point de chaudiere" is defined in the law
as "the amount of alcohol of 200 Cartier that an intermittent jet apparatus
having a capacity of 225 liters can produce per -day".
This office has been consistently of the opinion that the alcohol tax
should be based upon the quantity produced. A rate of taxation best suited
to carry out the public policy of the state should be determined upon, and
the rate should be applied impartially to all distillers of alcohol without
regard to the size of the distillery or the needs and situation of the individual
producer. Such was the legislation in effect until 1931. It was repealed and
an attempt was made to protect or favor smaller distillers at the expense of
others. The law was changed to provide for the monthly tax mentioned above
on distilling apparatus. Then the law provided further that distilleries might
remain closed and pay no tax during a specified number of months per year.






HAITI: REPORT OF FISCAL REPRESENTATIVE


,The length of time during which a distillery.might remain dosed. varied
inversely with the capacity of the distillery apparatus. The largest distiller
was allowed no exemption period whatever. If the largest distillery operated
at any time during the year, taxes based upon the capacity of its apparatus
had to be paid every month. While other dis:illeries could.be closed with
exemption from taxes for varying periods the large distillery was deemed
to be operating continuously and was taxed accordingly. During the fiscal
year 1938-39 this largest distillery finally ceased altogether the manufacture
of alcohol.
-During the fiscal year no new measures were taken to increase the yield
of either alcohol or tobacco taxes. Since the close of the fiscal year the
monthly tax of Gdes. 50.00 for each "point de chaudiere" has been increased
to Gdes. 100.00 and licence fees for distillers have likewise been increased.
Some changes were mzde in the exemption periods for closed distilleries.
The changes still favored the smaller distilleries. It remains to be seen
what effect the increase in rates will have upon returns from the alcohol
taxes.
The following comparison will show the extent to which there were
increases or decreases in important sources of internal revenue other than
excise during the fiscal year:
1938-39 1937-38
Gourdes Gourdes
Telegraph & Telephone receipts...... 499,613.77 472,000.28
Documentary stamps................. 419,305.98 421,520.50.
Income taxes .......................... 395,730.37 475,877.48
Registration fees ............................ 359,315.08 334,065.83
Public land rentals.......................... 351,291.18 331,311.61
Water service rents.......................... 277,004.00 283,241.25
Occupational license fees................ 273,315.45 302,038.78
Postage stamps............................ 257,044.92 252,765.00
Identity cards .................. .......... 212,173.70. 118,103.41

Receipts from the state owned and operated telegraph and telephone
systems increased by Gdes. 21,613.49 during the year under review as com-
pared with receipts in the preceding year. Receipts totaMled Gdes. 493,613.77.
Expenditures for maintenance of the service amounted: to Gdes. 441,096.22
during 1938-39 while expenditures for the preceding year had been Gdes.
444,081.62. There was thus an increase in returns from the. system and a
decrease in the cost of maintenance. Expenditures for maintenance however
-do not include a sum amounting to Gdes. 12,724.99 expended for new equip-
ment. This expenditure was made under the public works program.
Although returns from documentary stamps declined slightly from returns
in the previous year, the total collected, Gdes. 419,305.98, was still sufficient-
ly large to place this category of receipts next to telegraph and telephone
receipts in importance.
Income taxes registered a sharp decline by dropping from Gdes. 475,877.48
collected in the prior fiscal year to Gdes. 395,730.37.






HAITI: REPORT OF FISCAL REPRESENTATIVE


-:,Public land rentals regained some of the ground lost during the last four
:five years as-rental's increased from Gdes. 331,311.61 in 1937-38 to Odes.
S,351,291.18 in 1938-39.
*:. As in the previous year water service rents declined slightly. They dropped
From Gdes. 283,241.25 collected in the preceding year to Gdes. 277,004.00
.for the year under review. Maintenance of the systems cost Gdes. 252,180.62
-in 1938-39 as compared with Gdes. 241,863.53 expended by the Hydraulic
,Service during the previous year. Improvements to existing water supply
systems at Port-au-Prince, Gonaives, Cap-Haitien and J6r6mie are being
, made inder the J. G. White contract, while construction of a system at Port-
-de-Paix is under study.
:... Total receipts from the sale of postage stamps and from post office box
rentals amounted to Gdes. 265,950.03 for the year while expenses of the
Postal Administration amounted to Gdes. 367,043.69. Thus the postal ad-
ministration failed by a large margin to cover expenses.
. Fees from identity cards assumed more importance during the fiscal year.
The amounts collected from January 1938, when these fees first became
internal revenues, to September 30, 1938 had been Gdes. 118,103.41. During
the fiscal year returns reached the sum of Gdes. 212,173.70.

Miscellaneous Receipts
Miscellaneous receipts of the government totalled Gdes. 254,342.07 in
1938-39 as compared with Gdes. 287,871.79 in 1937-38. Miscellaneous receipts
therefore declined by Gdes. 33,529.72 or by 11.6 per cent.
Miscellaneous receipts may be classified (see Table 37) into three groups
as follows "
Gourdes
Return on investments.............................. 85,773.41
Conversion of francs................................ 86,164.00
Other miscellaneous.................................. 82,404.66

SReturn on investments includes: (a) interest on government deposits in
New York funds; (b) returns on bond investments, and (c) dividends from
the Banque Nationale de la R6publique d'Haiti.
Interest on government deposits in New York funds amounted to Gdes.
10,416.50 during the fiscal year.
Dividends declared by the Banque Nationale de la R6publique d'Haiti and
credited as miscellaneous receipts amounted to Gdes. 45,600.00.
The amount of interest received from bond investments during the fiscal
year was Gdes. 30,256.91. The amount of bonds held by the government,
calculated at cost prices, on which interest was taken up as miscellaneous
investments stood at Gdes. 337,386.90 on September 30,1939. It should be
noted that in addition to the foregoing amount, bonds are also held by the
Garde d'Haiti, and other bonds are held for the benefit of the agricultural
colonies. Interest on those bonds does not appear as miscellaneous receipts.






HAITI: REPORT OF FISCAL REPRESENTATIVE


Tbtal government investment in bonds calculated at cost was Gdes. 531,292.50
dn September 30, 1939. The corresponding amount on September 30, 1938
was Gdes. 527,780.00.
Under the second category above (conversion of francs) receipts declined
from Gdes. 99,096.70 in 1937-38 to Gdes. 86,164.00 in 1938-39. Receipts from
this source consist of interest on funds held in trust for the benefit
of the remaining bondholders of the 1910 loan, when, as, and if they choose
to redeem their bonds. Interest on the fund at the rate of 2Y2 per cent per
annum is.paid to the Haitian Government in francs and converted monthly
into dollars. The decline from this source is due to two factors. The balance
in the franc account is constantly decreasing as bonds are redeemed, and
secondly there was a decrease in the amount of dollars received by the
treasury in the form of interest, caused by the decline during the year in
the value of the franc. There was a balance of Frs. 7,880,931.25 in the
redemption fund at September 30, 1939, as compared with Frs. 20,624,222.50
at September 30, 1938.
Other miscellaneous receipts consist of interest and amortization payments
on treasury loans to communes, and funds reverting to the treasury through
prescription of unpaid treasury checks. Returns from other miscellaneous>
sources decreased from Gdes. 91,501.84 in 1937-38 to Gdes. 82,404.66 in
1938-39.

Government Expenditures
Government expenditures from revenues during the fiscal year 1938-39
totalled Gdes. 29,584,799.38. In the previous year expenditures from revenue
had been Gdes. 28.940,782.51. There was thus for the first time in five years
an upturn in expenditures. The increase of Gdes. 644.016.87 amounts to
2.23 per cent of the total expended in the previous year.
Expenditures from revenue over the past six years have been:
1933-34......... .................. ................ 36,802,275.73
1934-35......................................................... 42,355,010.66*
1935-3 6............................................. 36,631,574.03
1936-37 ....... ..................... .............. 35,033,437.11
1937-38.................... ............................ 28,940,782.51
1938-39......................................................... 29,584,799.38

A year-to-year comparison of expenditures from revenue with revenue
- receipts over the period from 1916 to the fiscal year just ended is shown
in Chart No. 5.
Again attention is called to the fact that only expenditures from revenue
are shown on the chart. Non-fiscal expenditures are not included. The
sum of Gdes. 8,321,160.60 spent on the public works program was made


*Includes purchase price (Gdes. 5,000,000) of the capital stock of the Banque Nationale de la Ripublique
d'Haiti






HAITI: REPORT OF FISCAL REPRESENTATIVE


,available under the contract for public works and as this amount, like other
non-fiscal receipts, is not available for ordinary operating expenses of the
government, the accounting is kept separate from revenue receipts and
revenue expenditures.
. Total government expenditures from revenue during 1938-39 by depart-
ments and services, are given in the table which follows. Each item includes
all disbursements from ordinary, supplementary (or deficiency) and- ex-
traordinary appropriations together with amounts by which expenditures
increased over, or decreased from expenditures in the previous year ...


Department of the Interior.......................
Guard ...........................................
National .Public Health Service........
Department of Public Instruction...............
Department of Finance..............................
Department of Foreign Relations................
Department of Commerce..........................
Internal Revenue Service..........................
Department of Public Works..................
Public Works Administration............
Department of Justice................................
Office of the Fiscal Representative............
International Institutions ..........................
Department of Religion............................
Department of Agriculture and Labor........
National Service of Agriculture........
Public Debt .........................................


Total Expenditures
1938.39
Gourdes
2,015,975.50
7,809,285.33
2,631.722.54
2,649,953.24
916,287.14
871,976.38
414,698.24
997,800.97
36,521.19
3,686,362.93
1,324,138.08
1,254,709.07
90,000.00
431,630.49
80,510.27
1,734,735.43
2,638,482.58


Increase over '
1937-38
Gourdes
270,504.71
293,575.22
18,957.92
185,49,6.58
147,194.93
112,739.02
65,627.62
29,429.81
1,087.81
16,877.20
4,137.73
2,451.87
1,446.00
7,726.14*
19,928.55*
69,575.69*
408,278.17*


29,584,799.38 644,017.87
net increase

There was a net increase in expenditures of Gdes. 644,017.87. Since ex-
penditures for service of the public debt decreased by Gdes. 408,278.17 it
follows that operating expenses of the government exclusive of public debt
charges increased by Gdes. 1,042,296.04 over the amount expended in the
previous year.
The largest increase was recorded for the Guard. Expenditures of the
Guard increased by Gdes. 293,575.22 over the amount expended in the pre-
vious year. Of the total increase, Gdes. 267,637.27 were expended in the
establishment of a military school.
Expenditures of the Department of the Interior increased by Gourdes
270,504.71. During the year a constitutional referendum, a subsidy creating
a social assistance fund, increased cost of maintaining the legislative branch
of the government, presidential traveling expenses, and increased expen-
ditures for public celebrations, all contributed to the increase in the expen-
ditures of the Department of the Interior.


*Decrease.






HAITI: REPORT OF FISCAL REPRESENTATIVE


Expenditures by the Department of Public Instruction increased by Gdes,
185,496.58. This Department during the year administered the technical
schools which had been under the Department of Labor during a part of the
prior year. The expenditures of the Department of Agriculture and Labor
decreased.
Increased expenditures of the Department of Finance covered payment
of the balance of the bank commission on revenue collections handled by the
bank, during 1937-38 and payment of a part of the accrued commission for
1938-39. The amount spent under the article of the budget which covers
claims and restitutions was increased over the amount expended in the
previous year. The increase was necessary to cover outstanding bills, chiefly
for unpaid customs duties and cable charges incurred in previous years.
The increase in expenditures by the Department of Foreign Relations was
Gdes. 112,739.02. The largest part of the increase in expenditures was for
diplomatic missions, covering among other missions, representation at the
Lima conference. Expenditures for official receptions increased. There was
also an increase in the amount spent on the development of foreign markets.
Payment of additional sums on account of maritime transit (charges for
carrying the mail) increased the expenditures of the Department of Com-
nmerce. Of the total increase in expenditures of this Department amounting
to Gdes; 65,627.62, the amount of Gdes. 58,277.44 was for maritime transit,
and the balance for material and miscellaneous expenditures of the Post
Office.
There was a net increase in expenditures by the Public Works Adminis-
tration amounting to Gdes. 16,877.20 during the year. There was a change
in the repartition of expenditures for this service. There were drastic de-
creases in the amounts spent for salaries and overhead generally, while
amounts spent on the maintenance of roads and other public works were
increased. Extraordinary expenditures on public works included little other
ftnan the sum of Gdes. 33,750.80 spent on the Haitian-Dominican road. In
prior years surplus revenues were made available to the Public Works Service
for niew projects of public works. During the past year capital projects have
been undertaken by the J. G. White Engineering Company under the contract
for execution of a program of public works, and the activities of the Public
Works Administration covered chiefly maintenance.
The amount spent in the interest of public health was increased by Gdes.
18,957.92.
Expenditures for service of the Public Debt decreased by Gdes. 408,278.17
from the amount expended in the previous year. Full amortization payments
on.the Series A and Series C bonds were made during the first three months
of the fiscal year 1937-38, while reduced amortization payments were effective
throughout 1938-39. Interest, transfer charges, and other expenditures in






HAITI: REPORT OF FISCAL REPRESENTATIVE


connection with the notes issued under the public works contract amounting
to Gdes. 125,638.04 were included in expenditures for service of the Public
Debt.
Supplementary (deficiency) credits totalling Gdes. 508,865.40 were voted
during 1938-39, and extraordinary appropriations, in the suim of Gourdes
725,673.80, were made. The Departments and Services in whose favor the
credits were opened and amounts made available were as follows:
Department or Service Supplementary Extraordinary
Gourdes Gourdes
Foreign Affairs .......................... 87,000.00 85,000.00
Finance .................................... 111,527.25 109,590.52
Commerce ....... ........................... 67,500.00 ................
Interior ................................ .. 58,000.00 113,227.38
Public Health Service....... .......... 15,000.00 ................
Justice ...................................... 500.00 ................
Public Instruction .................... 15,000.00 ................
Public Works Service................ 154,338.15 127,500.00
Guard ...................................... ................ 285,375.90
Agricultural Service ................. ................ 5,000.00
508,865.40 725,693.80

These supplementary and extraordinary credits totalling Gdes. 1,234,559.20
were acconlpanied by cancellations of appropriations totalling Gourdes
646,680.76 during the year. One appropriation in the ordinary budget for
purchase of new guard equipment was decreased Gdes. 549,375.90.
,Here it should be noted that funds available for expenditure by extra-
ordinary credit are not necessarily disbursed during the fiscal year. Funds
thus appropriated remain available for use during two years following the
date of the appropriation.
Of the supplementary credits totalling Gdes. 87,000.00 opened to the
Department of Foreign Affairs, Gdes. 77,500.00 were made available under
articles covering expenses of diplomatic missions and official receptions.
The extraordinary appropriation in the 'amount of Gdes. 85,000.00 was for
the purpose of developing foreign markets for Haitian coffee.
Supplementary credits were voted for the Department of Finance totalling
Gdes. 111,527.25. Of the total, Gdes. 10,968.00 were appropriated for civil
pensions and the balance, Gdes. 100,559.25, was appropriated to provide
additional funds in the article from which claims against the state are paid.
Extraordinary appropriations in favor of the Department of Finance were
to cover the unpaid balance (Gdes. 46,206.67) of the service charge made by
the Banque Nationale de la R6publique d'Haiti for handling government
receipts, during 1937-38, remuneration of Fiscal Agency Service (Gdes.
3,383.85), and part payment of the 1938-39 bank commission (Gdes. 60,000).
Supplementary credits totalling Gdes. 67,500.00 were provided the Depart-
ment of Commerce to cover maritime mail transport and miscellaneous post
office expenses.






HAITI: REtORT OF FISCAL REPRESENTATIVE


: Extraordinary appropriations in favor of the Department of the Interior
covered the cost of a constitutional referendum (Gdes. 87,000) and a sub-
sidy for a social assistance fund (Gdes. 26,227.38). Supplementary credits
to the same Department were necessary for the purchase of automobiles
(Gdes. 38.000.00), and for national celebrations (Gdes. 20,000.00).
Supplementary appropriations were opened to the Public Works Service
to provide additional funds needed for maintenance of the public highways
and streets, and for expenses of the Hydraulic Service. The extraordinary
appropriations in favor of this service covered expenses of expropriating
land for public utilities (Gdes. 37,000.00); construction of the International
road along the Haitian-Dominican border (Gdes. 58,000); and construction
of a basement under the Palais des Finances (Gdes. 32,500.00).
The extraordinary appropriation in favor of the Guard in the amount of
Gdes. 285,375.90 was made for the purpose of establishing a Military
School.
Supplementary credits were opened in favor of the Department of Public
Instruction totalling Gdes. 15,000.00; Department of Justice, Gdes. 500.00;
and the Public Health Service, Gdes. 15,000.
An extraordinary appropriation in the amount of Gdes. 5,000 was made
in favor of the National Agriculture Service for the purchase of anti-
anthrax vaccines.
Table No. 41 presents a classification of government expenditures by
functions and includes a column showing the percentage of the total re-
presented by expenditures for each function. While total expenditures for
each function of the government except public works did not change
greatly from the preceding year, there are changes in the percentage of the
total expended for each function which call for exp'anmation.
During the preceding year but little revenue was available which could
Ie devoted to public works. During the year just ended 22.63 per cent of
the total amount disbursed by the government was represented by the
amount expended under the public works contract.
Since this amount is included in expenditures, and percentage of total
expenditures by functions shown in table No. 41, it follows that if ex-
penditures, for each function were the same as in the previous year the
percentage of the total devoted to each function exclusive of public works
would be less than four-fifths of the percentage recorded for the corres-
ponding function in the previous year. For example, expenditures on the
police function in the previous year took 26.12 per cent of the total. Ex-
penditures for police were increased during 1938-39 over the preceding year,
and if expenditures under the public works contract were disregarded,
would represent 26.4 per cent of government expenditures during 1938-39.
However, by taking into account the public works expenditures the per-
centage spent for the police function drops to 21.24 per cent of total govern-
ment expenditures. Amounts expended on education in the previous year






HAITI: REPORT OF FISCAL REPRESENTATIVE


had represented. 12.17 per cent of total government expenditures while for
the year under review 10.00 per cent of the total was expended in educational
activities. The percentage of the total spent on public debt dropped from
10.59 per. cent to 7.17 per cent. The percentage spent on public health
dropped from 9.15 per cent to 7.24 per cent. The percentage of the total
absorbed by financial administration was 7.28 per cent against 8.84 per cent t
in the previous year. The percentage expended in carrying out the legisla-
tive and judicial functions dropped from 7.76 per cent to 6.31 per cent.

Public Works Program
In the last annual report the nature of the contract entered into between
the Haitian State and the J. G. White Engineering Corporation was dis-
cussed and the arrangements for financing a program of public works
were fully explained.
In brief, the contract called for execution, by the J. G. White Engineering I
Corporation, of a series of public works projects which would include im-
proved roads and trails, construction of wharves and bridges, construction
and repairs to irrigation and drainage systems, additional urban water
supply systems, projects of agricultural development, and other projects
of a similar nature. The contract contemplates completion of the program
in three to four years. Arrangements were made to finance this program
of public works to the extent of Gdes. 25,000,000.
The contract was signed and published together with the sanctioning
decree-law in the official Moniteur of July 7, 1938. Work on a number of
projects was in progress and a few of the smaller ones were completed by a
the close of the fiscal year on September 30, 1938. Up to that time expen-
ditures under the contract had amounted to Gdes. 317,117.69.
During the fiscal year 1938-39, public works of the nature contemplated a
in the contract have been undertaken in all Departments of the country. E
The proportion of expenditures represented by improvements to the main p
highways represents a higher proportion of the total expenditures under the b
program to date than they should in succeeding years. These improvements ti
were urgently needed and they were convenient projects of unquestionable
value which could be started immediately while other projects were ex-
amined and ranked in the order of their economic value and while plans
where being drawn and surveys made for their execution. Prior completion
of improvements to the main highways furthermore aids the transportation b
of materials to other projects and reduces their eventual cost. The main A
highway of Haiti extends north from Port-au-Prince through Saint-Marc c
and Gonaives to Cap-Haitien, Fort Libert6 and Ouanaminthe, and south
from Port-au-Prince across the southern peninsula to Cayes on the southern
coast then across the peninsula again to Jr&nmie. tl






HAITI:. REPORT OF FISCAL REPRESENTATIVE


r .The completion of an.asphalt paving project already started by the public
iI works service at Portail L6ogane where the southern highway enters Port-
m au-Prince was one of the first executed. The completed project is now
:h called the President Roosevelt Avenue. After the avenue was completed
l several blocks of streets adjacent to it were paved. Another project ex-
it tended the asphalt paying to Carrefour.
L- :..A portion of the highway of the southern peninsula where it crosses the
Tapion mountain was difficult and dangerous to travel. One of the early
projects undertaken by the Engineering Company was widening the road,
eliminating sharp curves, and providing adequate road drainage on this
mountain section.
n :At Cavaillon (on;the main road from Port-au-Prince to Cayes) installa-
tion of a 180-foot single span bridge over the Cavaillon river has been
s undertaken. The concrete and wooden bridge formerly crossing the Ca-
Svaillon river was washed away a few years ago. Since then traffic between
, Port-au-Prince and Cayes has been restricted to periods when the Cavaillon
river could be forded or crossed.by a temporary bridge.
S.Travel by land, from Port-au-Prince to J6r6mie was often impossible
r because of a bad stretch of low lying road between Cayes and Camp Perrin.
s Here, twenty-three kilometers of road were rebuilt. The gravel surfaced
Road constructed should,.tif there is reasonable maintenance, remain in
i passable condition throughout all seasons of the year. Beyond Camp Perrin
improvements to the main road were limited to surfacing bad portions of
Sthe road .with crushed rock, removing overhanging rocks, eliminating some
of the sharp curves which made travel dangerous, and constructing culverts
and fords where necessary.
On the main road leading north from Port-au-Prince several projects
have been undertaken. Approximately five and one half kilometers of road
at the northern entrance to Port-au-Prince were graded and asphalted.
Between Sources Puantes and Mont Rouis an extensive reconstruction
project involving relocation of a considerable portion of the main road has
been carried out. This project involved building or reconstructing fifty-
two kilometers of road and the construction of new bridges over the Tor-
celle, Manegue, Pois, Bretelle, and Courjol rivers. It also included con-
struction of a large number of culverts, and a concrete ford at Vign6 and
-another at Globe.
Between Gonaives and Ennery, improvements to .the existing road have
been undertaken which include widening, grading, draining, and surfacing.
A portion of this road follows the bank of the Ennery river. New river
channels have been excavated to divert the course of the river and keep
it from cutting away the road.
Improvement of the road from the summit of Puilboreau mountain to
the town of Plaisance, a distance of fourteen kilometers, has been under-






HAITI: REPORT OF FISCAL REPRESENTATIVE


taken. This project covers widening the existing road to a standard of six
meters, easing sharp curves, and surfacing, also construction of a bridge
over the Bois d'Orme ravine.
Basic improvements have been undertaken on the section of the main
highway between Plaisance and Cap-Haitien.
Beyond Cap-Haitien the chief improvements to the main highway have
been river crossings. For lack of an adequate means of crossing the Trou
river, traffic to Cap-Haitien from a large part of the northern plain and
from Fort Libert6 and points beyond has frequently been interrupted for
days at a time during the rainy season. This interruption of transportation
was one of the difficulties in the transportation of bananas from the plains
to Cap-Haitien and greatly hindered banana development in the region
A 150 foot single span steel bridge over this river is under construction,
Another obstacle to transportation between Fort Libert6 and Cap Haitier
was removed by construction of a concrete ford through the river at Terrier-
Rouge.
The branch road connecting Port-de-Paix with the main Port-au-Prince-
Cap-Haitien highway has not been safe for travel in all seasons. To in-
crease the safety of traffic on this road the relocation of several sections of
it has been undertaken. The scope of this project includes many gradt
improvements, road alignment, improved stream crossings, road drainage,
installation of culverts, and, at various points, road surfacing.
Leading from the main highway are shorter roads sometimes called
"feeder" roads, and innumerable trails whidh penetrate the mountain region
of the interior. It is over these roads and trails that the initial transportation
of coffee, bananas, and other other products of Haiti to the world markets
must begin.
Feeder road projects of importance in the Department of the North and
Northwest are: the road from Cap-Haitien to Dondon; Plaisance to Pilate;
Linrib to Borgne; Cap-Haitien to Maribaroux; Gros-Morne to Pilate, etc.
All of these roads branch from the main highway into productive areas. In
addition to opening up a wide coffee and banana area the completion of the
Plaisance to Pilate, and Pilate to Gros-Morne projects, will form an
important link in the transportation system of the northern part of the
island, saving many miles of travel for traffic between the Port-de-Pail
and Cap-Haitien regions and avoiding the crossing of Puilboreau mountain.
Improvements to the road from Cap-Haitien to Dondon and Dondon to
Hinche in conjunction with improved river crossings on the Port-au-Prince-
Hinche road will make possible an alternative and shorter route frool
Port-au-Prince to Cap-Haitien.
Improvements to the road from Cap-Haitien to Milot will facilitate
tourist travel to the Citadelle, as well as providing an outlet for products
of the region.







HAITI: REPORT OF FISCAL REPRESENTATIVE


Projects of feeder road construction on the southern peninsula include
a road from Moron to Chambellan, and a road from Rousselin to Anse
d'Hainault. Generally speaking transportation between the coastal towns
of the western end of the southern peninsula has been heretofore over
trails, many of which were impassable for many days at a time. In Septem-
ber 1939 for the first time an automobile entered Anse d'Hainault.
Repairs to an existing road from Cayes to Acul were undertaken. This
road was dangerous and often closed in wet seasons because of inadequate
drainage and lack of river crossings. A concrete ford over the Torbeck
river has been constructed and ,a crossing at l'Acul river together with the
drainage and surfacing undertaken should make the road passable except
for short periods when the rivers are unusually high.
The road from Jacmel' to Mariogt has been reoonstrucited. This
project involved grading, filling, and surfacing approximately twenty four
kilometers of road. A short feeder road (2/2 kilometers) has been com-
pleted from Jacmel to Lafond where a buying station for bananas is located.
This useful project is typical of many of the smaller feeder roads.
Extensive improvements have been made to the Kenscoff-Petionville
road. The village of Kenscoff is situated high in the mountains about 24
kilometers from Port-au-Prince and is a favored resort for tourists and for
residents of Port-au-Prince.
In the Saint-Marc region a road from Pont Sond6 to Desarmes will be
a valuable asset in the marketing of bananas from the extensive banana
developments in the Artibonite valley.
A causeway was constructed over the Saint-Marc river at Pivert opening
up the valley for banana development.
In Haiti it has been alleged frequently that automobile roads were of
little benefit to the Haitian peasants. Direct benefit is perhaps questionable
it' some cases but indirectly the peasant benefits, for roads bring buying
stations nearer and develop export trade without which his distressingly
low scale of living would be reduced still further. The peasants raise their
market products, and gather the coffee in the mountain regions from whence
it is transported, usually by pack animals, to the nearest town or market,
or in the case of coffee and bananas to a coffee usine or a buying station.
These peasants form the mass of the population and notwithstanding the
fact that they are the producers and create whatever wealth there is in
Haiti, their transportation problems in times past have received but scant
Consideration. In fact it was the policy of the state to leave the upkeep of
niany roads and trails almcst exclusively to the local oomnmunities. It is a
satisfaction to report that under the present public works program these
problems of rural transportation are receiving special attention. The many
Systems of trails, throughout the country have been examined with a view
to their improvement.





HAITI: REPORT OF FISCAL REPRESENTATIVE


One type of project has been to build roads, or trails sufficiently wide
for a small truck to use, up to the beginning of rough mountain terrain,
and then continue the. building of a narrower trail, suitable for trans-
portation by pack animals, on into-the mountain region. Such a trait was
built in the Petit-Goive region where four kilometers of trail, four meters
in width, lead from the .town to the beginning of rough and steep terrain.
From there a two-meter trail extending about twelve kilometers into the
mountains was near .-ompletion at the year end. Th. same sort of trail was
built to facilitate the movement of coffee from Goyavier to Saint-Marc.
The Goyavier plateau, covers an area of about 2,000 hectares of coffee
producing. lands,- but in the- past transportation from this region has not
even been served by a good trail. The trail now being constructed is about
twelve kilometers in length. A similar trail from Cayes-Jacmel to Cap-
Rouge is under construction. A trail from Cayes to Maniche primarily for
pack animals but wide enough for an auto or small truck has been con-
structed. Improvements to other .trails which have been completed, are in
progress, or under survey, are..tolo numerous to discuss in detail. Some
of the more important are: Camp Perrin-Maniche (completed); Dondon-
Marmelade (under survey); Grenier Springs-La Boule (under con-
struction); Source La Plaine to the Jean Rabel-Port-de-Paix road (com-
pleted); the Riviere Froide trail (under construction); a thirty-kilometer
trail from Pilate to Le Borgne (under survey); Abricot to Dame-Marie
'(under survey)'; Barrage Roseaux trail near Saint-Marc (completed);
Bois Neuf trail also in the Saint-Marc region (completed); La Montagne
trail near Jacmel (completed).
It should be stated at this point that despite the construction of roads and
trails under the public works program Haiti's transportation problem can
not be regarded as solved until an adequate system of regular maintenance
and upkeep'has been devised and put into effect.
To facilitate commerce by sea two new wharves have been constructed.
One of the projects was a new cabotage wharf to serve coastwise shipping
which has been built at Port-au-Prince. The old wooden wharf at Cayes
has been replaced by a new concrete structure.
Irrigation. attacks directly the production problem. This is the type of
public works which can do most to directly increase Haitian production.
There are many plains in Haiti today lying arid and unproductive for lack
of water, which in colonial times were irrigated and -flourishing. The land
is fertile and potentially productive and.if properly irrigated will produce
crops during all months of the year. Much of this land is ideal! for bananas,
but banana lands must be irrigated and drained.. Up to the point .that
banana plantations have been successfully developed .in Haiti, irrigation and
drainage have preceded. Many thousand hectares of good banana land still
await the construction of adequate irrigation and drainage systems.





HAITI: REPORT OF FISCAL REPRESENTATIVE 83

Since many of the plains, have been previously irrigated, the problem
often is simply the restoration of systems of canals previously existing but
long since fallen into neglect and disuse at times when public money was
not available for their upkeep.
'One of the first and smaller projects undertaken was rehabilitation of
an old system in the Ennery valley. Two diversion dams were constructed,
one on the Martineau river and one on the Miarmelade, a short distance
above the junction of these rivers which forms the Ennery river. The still
existing colonial canals were cleaned and new canals were constructed on
both the right and left banks of the Ennery. These canals now irrigated
a considerable area of the agricultural land in the Ennery valley. The
possibilities of further irrigation of the Gonaives Plain from the Bayonnais
river is under study.
Two irrigation systems in the vicinity of Jacmel have been likewise
rehabilitated and extended to irrigate greatly increased areas of banana
lands.
An existing canal at Marigot will be enlarged and lengthened. Control
head works will be installed. Another larger canal will be constructed to
traverse a section of that region heretofore unirrigated. These canals will
supply water to the Marigot valley for banana cultivation.
Further irrigation projects can be developed in the Jean Rabel region.
By drilling wells and by cleaning and channeling the springs at the head
waters of the Moustique river the small supply of irrigation water available
may be increased. More efficient use of the waters of the Jean Rabel river
will extend the amount of land which can be irrigated in that valley.
Extensive improvements to the existing d'Avezac irrigation system in
the Cayes Plain have. been undertaken. This is another colonial canal, but
one which has not been allowed to fall into disuse to the same extent as some
of the others which have been mentioned. The reshaping and repair of the
two fifteen-kilometer. main canals of the system has been completed. The
construction of a dam on the Grande Ravine .du Sud near Camp Perrin
should double the flow of water into the system.
At Saint-Marc improvements to the small irrigation systems have been
studied. A project completed in that region was a diversion dam on the
Roseaux river to turn water into the old Bois Neuf irrigation canal, which
has been cleaned and enlarged. This fifteen-kilometer canal is now supply-
ing water to many acres of fine banana lands.
A smaller irrigation project has been carried out at Chansolme in the
Port-de-Paix region.
Projects under present study or in process of construction at the end
of the fiscal year were: improvements to the Gallois river system; im-
provements to the small irrigation systems in the Artibonite valley; ex-
tending irrigation in the Les Anglais valley; irrigating the western part





HAITI: REPORT OF FISCAL REPRESENTATIVE


of the Leogane Plain; irrigating the upper Cavaillon valley; and reestablish-
ing the Grace irrigation system in the Port-de-Paix region. co
Several drainage projects undertaken for the purpose of reclaiming lands, sy
or improving health conditions, or both, are in progress or completed. A
region known as Mare Breman in the vicinity of Jacmel was drained. In p
the Leogane Plain two drainage projects, the Cormier drainage canal and st.
the Rouyonne canal, have been undertaken. A drainage canal was con-
structed in the region of Quartier Morin to drain several low-lying habi-
tations. Construction of a canal designed to drain a lake in the Cul-de-Sac
plain known as Trou Caiman made it possible to lower the water table of
the region by about two meters and reclaim approximately 20,000 acres o
of land.
A project at Petit-Goive would divert the Caiman river above the town T
of Petit-Goive in order that the silt, stones and detritus brought down by
the flow may eventually fill up a large swamp adjacent to the town.
Drainage ditches from the swamp to the sea will carry off flood water, ir
For years Petit-Goive has been noted as a place dangerous to all because
of malaria. Drainage will help to abate this menace. if
The city of Port-au-Prince in recent years has faced an ever more acute
water shortage. To conserve the supply it has been necessary to curtail
the use of water by closing some of the reservoirs outlets each day
for varying periods of time. In addition to the inconvenience caused indi-
vidual users of water, the added risk of loss from fire needs little comment.
After study of the geology of the region it was decided to begin a project
for increasing the water supply by means of tunnels drilled in the mountain
south of Port-au-Prince. Drilling was undertaken at Morne Sevire and at
Diquini Springs. The flow of water by September from these two tunnels
was over two and a half million gallons per day. When this water has been
directed into the hydraulic mains it should go far towards relieving the
deficiency.
.The hydraulic system at Gonaives had likewise become inadequate to '
meet present day water needs of the city. The project undertaken to increase
the supply of that city included the purchase and installation of 12,000
feet of new six-inch main pipe, and improvement to the principal captation
sources. The water lines within the city were also extended to furnish water s
to new connections. c
At Cap-Haitien improvements to the captation springs now supplying
the city with water were carried out. The supply has been further. aug-
mented by drilling wells.
At J&remie the water supply had become so inadequate for present needs
that the population was allowed water for a daily period of only two hours.
Studies have shown that installation of new captation works and lowering I
the supply line to a proper level will adequately supply the needs of the
city.






HAITI: REPORT OF FISCAL REPRESENTATIVE


Port-de-Paix has no water supply system, Studies and surveys have been
conducted to determine the feasibility of installing a modern hydraulic
system.
The growing resort town of Kenscoff, located in the mountains near
Port-au-Prince, likewise has no water system and this problem is being
studied.
A number of projects having the most direct bearing upon increased
production of agricultural products have been grouped together for con-
venient reference, as the "Agricultural Program". The program includes
various undertakings to encourage the production and improve the quality
of exportable products. The program also aims to encourage the domestic
production of certain crops which will reduce importation of foodstuffs.
The introduction of new crops for which there is a market, and suitable for
production in Haiti but not now produced is also to be encouraged.
The extermination or control of major crop disease and destructive
insects is another important part of the work to be carried out under this
program. Panama disease and Sigatoka can be kept under control in Haiti
if proper precautions are taken.
To encourage coffee development, nurseries have been established at
Kenscoff, Pilate, Plaisance, Marmelade, Dondon, Camp Perrin, Jacmel, Beau-
mont, Greniers Springs, land Source Royer. As soon as coffee seedlings are
ready to be set out they are distributed from these nurseries. One of the
early projects undertaken previous to setting up the agricultural activities as
a separate program, was the construction of coffee drying trays for distribu-
tion among the peasants. A total of 2,580 trays were finished and delivered
under this project.
A comprehensive plan for handling and distributing seed rice was
worked out. In the Artibonite valley, particularly, planters were furnished
with tools and the work of draining and irrigating lands 'for rice was super-
vised. About 75,000 pounds of rice for seed were distributed in the Arti-
bonite valley alone. Rice was also distributed for seed in the rice growing
regions at Torbeck and Saint Louis du Sud.
Planting of coconuts, limes, and sour oranges, and distribution of the
seedlings has been undertaken at several nurseries in different parts of the
country.
- An organization was set up in Jacmel for the methodical elimination of
Panama disease by the cutting of diseased banana plants and application
of gas oil to the stumps and surface of the ground. These activities were
also carried out at Les Anglais.
An experimental reforestation area near P6tionville is being developed
under the agricultural program.
Expenditures under the contract amounted to Gdes. 8,321,160.60 during
the fiscal year. Adding the amount of Gdes. 317,117.69 expended during






HAITI: REPORT OF FISCAL REPRESENTATIVE


the prior year, total expenditures under the contract to September 30, 1939
have been Gdes. 8,638,278.29. ft
Pending completion of all projects, overhead expenses have not been a
fully repartitioned. Expenditures not yet prorated among specific projects
at September 30, 1939, were classified as follows: c
Gourdes t
General Expense .................................................. 1,164,628.92
Stores, Material in Warehouse.............................. 759,988.69
Plant and Equipment Investment.......................... 1,556,848.10 p
Auxiliary Operations .......................................... 111,050.42

3,592,516.13

General Expense covers such items as monthly salaries of field engi-
neering staff, reconnaissance and geological surveys of proposed projects
under study, office, warehouse, and garage maintenance, as well as petty
cash revolving advances to be reimbursed. Auxiliary operations cover
expenditures such as costs of operation of trucks and cars, carpenter shop,
concrete pipe plant, etc. All such items are distributed to project costs
monthly or as information for correct redistribution is available.
The balance is divided between projects under construction and completed d
projects as follows:
Gourdes
Projects under construction................................... 4,163,625.52 0
Completed projects ..................................... .. 882,136.64
5,045,762.16 a

These expenditures were repartitioned among different types of projects
as follows: ..
SGourdes
Roads .................. ................................................ 2,730,906.5,1
Irrigation and Drainage.................................... .. 707,598.08 a
W ater Supply Systems............. ............. ........... 472,251.31 4
Agricultural Program............................. ,363,030.48
Bridges and Fords........................................... 282,006.47 a
W harves ...................................... ................ 271,594.18
Trails ........................ .............. ............... ... 205,650.14 .
Telephone system ......................... .................. 12,724.99 C
Total............................. ......................... 5,045,762.16. .

Customs Service

Expenses of the customs service are paid out of the operating fund of
the Fiscal Representative. This consists of five per cent of customs receipts.
At the close of the fiscal year 1937-38 the 'balance remaining in the fund
after covering all costs of administering and Qperating the customs service
was applied on the commission amounting to'one per cent of customs
revenues, contractually payable by the government to the Banque Nationale
de la Repuiblique d'Haiti for the Treasury service rendered by the bank.






HAITI: REPORT OF FISCAL REPRESENTATIVE


SAccruals during the year amounted to Gdes. 1,281,581.21. Expenditures
from the fund during the year amounted to Gdes. 1,254,709.07, leaving
a surplus of Gdes..26,872.14 in the fund at the close of the fiscal year.
Expenditures: from the fund during the year covered all the operating
costs of the customs service and in addition all but Gdes. 20,975 of the
bank commission were paid from the fund.
The expenses of the Fiscal Representative classified by objects of ex-
penditures were as follows in 1937-38:

Object Goardes
Administration .................................... 535,819.50
Customs Operation .............................. 466,283.12
SRepairs and Mainteiance........................ 9,509.01
Acquisition of Property........................ 7,755.90
Fixed charges ................................... 235,341.24
1,254,709.07


.Disbursements from the-five per cent fund for administrative expenses
declined from Gdes. 551,284.56 in 1937-38 to Gdes. 535,819.50 in 1938-39.
The cost of customs operation declined from Gdes. 483,753.96 in 1937-38
to Gdes. 466,283.12 for 1938-39. Expenses for administration and operation
combined, amounted to 79.86 per cent of total' disbursements from the five
per cent fund in 1938-39. In the preceding year the combined cost of
administration and operation amounted to 82.65 per cent of total disburse-
Inents. -.
'There was a slight increase in expenditures for repairs and maintenance.
In 1937-38. Gdes. 8,897.51 had been spent for this purpose as compared
with. Gdes. 9,509.01 in 1938-39. Expenditures for acquisition of property
amounted,.to Gdes. 7,750.90 during the fiscal year as compared with Gdes.
4,435.71 in 1937-38, Although the amounts for repairs and maintenance
and for acquisition of property increased over the amounts spent in the
previous fiscal year, the amounts are still low as compared with expenditures
on acquisition and maintenance of customs properties when customs receipts
were higher and the amounts available from the five per cent fund for these
piutpbses correspondingly greater.
SE'penses classified as "fixed charges" include only the commission paid
to the Banque Nationale de la R6pulblique d'Haiti for treasury service. In
the fiscal year 1938-39 one per cent of total customs collections amounted
to Gdes. 256,316.24, of which amount the sum of Gdes. 235,341.24 was paid
out of the five 'per cent fund. The part of this commission paid out of the
five per cent fund in 1937-38 amounted to .Gdes. 203,885.46. In 1937-38
fixed charges totalled 16.28 per cent of total' disbursements while in 1938-39
fixed charges represented 18.76 per cent.





HAITI: REPORT OF FISCAL REPRESENTATIVE


Expenditures for administration and operation may be broken down into
the following items:
Gourdes Per cent
Salaries and wages................ 860,432.77 85.86
Supplies and materials.......... 57,389.33 5.72
Transportation ................. 81,747.68 8.16
Communications ............... 1,905.05 .19
Rents .................................. 1,345.00* .13*
Special and miscellaneous.... 1,973.09 .20

There was but little change in the repartition of items 'making up total
cost of administration and operation. In the previous year the amount spent
for salaries and wages had been Gdes. 890,346.72 or 86.03 per cent; supplies
and material Gdes. 52,188.15 or 5.04 per cent; transportation cost Gdes.
71,434.50 or 6.90 per cent; communications. Gdes. 7,491.25 or 0.72 per
cent; rents Gdes. 735.84* or 0.07 per cent; and special and miscellaneous
expenditures were Gdes. 14,313.70 or 1.38 per cent.
Analysis of customs costs at all ports shows that collection cost per
gourde collected averaged Gde. .0182 during the year. In the previous year
the average cost of customs operation had been Gde. .0214. From 1919
though 1939 the average has been Gde. .0194.


Internal Revenue Service

The operating fund of the Internal Revenue Service is derived from an
allowance of 10 per cent of all internal revenue collected, and 15 per cent
of the communal taxes collected by the internal revenue service.
The Internal Revenue Inspection Service, lmuder the Agreement of August
7, 1933 between the government of Ithe United States and the government
of Haiti has the -duty of inspecting the collection of internal revenues. To
carry out this duty the Service may expend an amount not to exceed five
per cent of internal revenue receipts.
During 1938-39 expenditures by the Inspection Service amounted to 4.0
per cent of total internal revenues. In the ,prior fiscal year its expenditures
were covered by 3.7 (per cent of internal revenue receipts. Five per cent of
internal revenue receipts in 1938-39 amounted, to Gdes. 251,100.98. Expenses
of the Inspection Service were Gdes. 202,487.93. The balance of the fund
unused, to wit, Gdes. 48,613.05 was made available to cover expenses of the
Internal Revenue Service.


*Credit.







HAITI: REPORT OF FISCAL REPRESENTATIVE >

,Accruals to the operating funds of the two services during the aiat two-.
years have been as follows: .,,
1W3S-9 1937-38
Gourdn Gourdre
Internal Revenue Service
10 per cent of internal revenues.. 602,201.96 499,078.73
15 per cent of communal revenues 237,598.50 236,517.43
Other accruals ........................ 6,899.53 4,206.35
Internal Revenue Inspection Service
5 per cent of Internal Revenue.... 251,100.98 249,539.36

Total............ ................... 997,800.97 989,341.87

From these funds, the Internal Revenue Service and 'the Internal Revenue
Inspection Service have expended the following amounts:

1338-33 9 1937-38
Gourdes Gourdes
Internal Revenue Service................ 795,313.04 783,361.27.
Internal Revenue Inspection Service 202,487.93 185,009.89

997,800.97 968,371.16

Combined expenditures of the two services during the past two years.
has been as follows:
193859 1937-38
Gourdr Gourdne
Salaries and wages......................... 730,663.48 684,804.81
Supplies and materials.................. 81,436.43 64,120.79
Transportation .............................. 148,683.35 146,871.98
Miscellaneous ............................... 17,561.38 17,709.41

Total Administr. and operation 978,344.64 913,506.99

Expenditures of the Internal Revenue Inspection Service were as follows
during each of the last two years:
1s38-s9 1937-38
Gourdes Gourdre
Salaries .................................. 111,797.50 107,338.24
Supplies ................................. ..... 7,351.56 .4,035.64
Transportation ......... ........ ...... 77,293.68 70,540.01
Equipment ...................... .... 1,859.15 ..............
Repairs .............................. ........ 1,764.95 924.95
Miscellaneous .............. .......... 2,421.09 2,171.05
202,487.93 185,009.89


Treasury Position

Government revenue receipts exceeded expenditures from revenue during-
1938-39 by Gdes. 1,560,784.91. In consequence the treasury surpluti iri-
creased from Gdes. 708,314.7i at the opening of the year to Gdes. 2,094,-
530.48 at the diose. Table No. 47 presents a detailed statement of treasury
assets and liabilities as of Septenlber 30, 1939. The same statement in






HAITI:. REPORT OF FISCAL REPRESENTATIVE


sin1pli'fied forn showing the ,position of the treasury at the end of each of
tIhe last two years would be:
S, Sept. 30, 1939 Sept. 30. 1938
Gourdes Gourdes
Assets
Current assets ...................... 5,251,725.94 2,160,306.05
Investments ......,;................. 5,531,292.50 5,527,780.00
Other assets ......;................... 4,151,318.24 4,345,573.40
14,934,336.68 12,033,659.45
Liabilities
Current liabilities .................. 3,533,168.71 1,979,771.27
Reserves ............................ 9,306,637.49 9,345,573.40
Surplus .............................. 2,094,530.48 708,314.78
14,934,336.68 12,033,659.45

Current assets include: the balance amounting to Gdes. 4,825,697.45 in
the government gourde accountss with the Banque Nationale de la R&pu-
blique d'Haiti; government sight and time accounts in New York totalling
Gdes. 170,311.90; receipts collected but not deposited which together with
cash in the hands of disbursing officers amounted to Gdes. 92,038.78; and
finally reserves for unpaid checks issued under the public works contract
in the amount of Gdes. 163,677.81.
Investments include the purchase price (Gdes. 5,000,000) of the capital
stock of the. Banque Nationale de la R6publique d'Haiti owned by the
government, and bonds of the Series A and Series C issues totalling Gdes.
531,292.50. Of this total, bonds in the amount of GQdes. 337,386.90 are held
for the treasury account; while bonds in the amount of Gdes. 121,165.00
are held for the G:rde d'Haiti, and bonds to the extent of Gdes. 72,740.60
are held for the Agriculturall Colonies. ATl amounts stated are cost prices.
Under "Other Assets" there are but two items; the fiduciary currency
reserve (Gdes. 3,467,180.75), and advances to commiunes (Gdes. 684,137.49).
The "Fiduciary Currency. Reserve" represents amounils withdrawn and
placed at the disposal of' the Banque Nationaile de la RLputblique d'Hafti in
cover of fractional currency out of circulation and in the vaults of the
bank.
Advances to communal governments at the end of the previous year
had stood at Gdes. 723,073.40 The difference (Gdes. 38,935.91) represents
the amount received by the treasury during the fiscal year as amortization.
Turning to the liabilities side of the statement, the first item "Current
Liabilities" includes: unpaid checks in the amount of Gdes. 920,089.50;
unexpended balances of extraordinary appropriations totalling Gdes. 229,-
638.67; balances in non-revenue accounts, Gdes. 2,192,890.59; unpaid checks
issued in connection with the public works contract in the amount of Gdes.
163,677.81; and the unused balance in the operating fund of the Fiscal
Representative (Gdes. 26,872.14).






HAITI: REPORT OF FISCAL REPRESENTATIVE


* These current liabilities are self ,explanatory except perhaps for the
balances in non-revenue accounts. The non-revenue accounts include cash
bonds of various kinds such as notaries bonds, postal contractors bonds,
and security deposited by licensed owners of firearms, etc. Also included
are the revolving funds of the Bureau of Supplies, Public Works Admin-
istration, and the State Printing Office. The Garde d'Haiti savings
accounts and pension fund are likewise included in the non-revenue ac-
counts.
At September 30, 1939 the balance in non-revenue accounts stood at
Gdes. 2,192,890.59 as cotrpared with Gdes. 1,055,748.66 at September 30,
1938. The largest singflie item in the non-revenue accounts at the year-end
was the balance of Odes. 1,023,563.47 held for the benefit of the agricultural
colonies. These colonies were established during the preceding year under
the terms of the settlement with the Dominican Republic.
It might be here explained that the reason for keeping non-revenuie
receipts and expenditures separately from statements of revenue receipts
and disbursements from revenues is that funds in these accounts are in
the nature of trust funds administered by the Treasury. The amount paid
into the various accounts are to be used for specific purposes, as contrasted
with general revenues.
There are three items included as reserves: the fiduciary currency reserve
(Gdes. 3,622,500); the purchase price of the capital stock of the Banque
National de la R6publique d'Haiti (Gdes. 5,000,000); and advances to
conimunes (Gd'es. 684,137.49).
The surplus on September 30, 1939 was Gdes. 2,094,530.48.

Public Debt

Table No. 48 presents a statement of the public debt at the end of each
fiscal year since 1915. For convenience the portion of that table which
shows the debt at September 30, of each year since 1924 is reproduced here:
Year Gourdes Year Gourdes
1924............ 121,048,501.20 1932........... 72,625,870.96
1925......... 115,231,263.80 1933........... 66,901,412.84
1926.......... 108,307,079.30 1934............ 60,830,435.79
1927 ........ 99,706,855.09 1935............ 54,930,599.85
1928 ........ 94,438,115.05 1936............ 49,092,715.80
1929........... 88,677,396.00 1937............ 44,317,295.95
1930 ....... 82,705,649.35 1938............ 43,950,094.29
1931............ 78,357,576.10 1939........... 52,137,491.99

The consolidation of the debt and refunding operations in 1923-24 fixed
the amount of the debt in dollars. From 1924 to 1937 the existing debt was
steadily diminished by amortization payments while no new funded debt
was being created.
The first increase in the public debt since 1923-24 began with the advance
of funds to carry out the public works program. A contract was signed






HAITI: REPORT OF FISCAL REPRESENTATIVE


July 6, 1938 between the Haitian Government and the. J. G. White Engi-
neering Corporation whereby the government engaged the services of the
corporation to purchase material and undertake the execution of a series
of public works projects to an extent of approximately five million dollars.
This program, is financed 'by rew capital borrowed abroad and explains the
increase in the public debt during the past year. During the. fiscal year
expenditures under the public works contract amounted to Gdes. 8,321,7
160.60.
- Meanwhile payments in amortization of the Series A and C bonds
amounted to'Gdes. 102,657.55 during the year. The excess of Gdes. 2,657.55
6ver the sum of Gdes. 100,000.00 foreseen in the Accord of July 1, 1938,
represents savings in interest on bonds purchased in the course of the year
for account of the sinking fund, which savings became available for, stand
were applied to, amortization. The gross public debt at September 30, 1939,
was Gdes. 52,137,491.99.
Itemized, the gross public debt of the Republic at September 30, 1939,
consisted of:
Gourdes
Series A bonds............................................... 34,345,902.85
Series C bonds.................................................. 5,530,810.85
Fiduciary currency ............................................ 3,622,500.00
Public Works Contract 1938............................ 8,638,278.29
Total ........................................................ 52,137,491.99

The item of Gdes. 3,622,500 represents the amount of nickel currency
not covered by the fiduciary currency reserve. Although carried in the debt
statement in continuation of the practice of previous years, the nickel
currency is not redeemable.
'; The figures given above for the funded, debt are net amounts after
deduction of sums remaining in the sinking fund of each bond issue at the
yeat-end which had not yet been applied to amortization. These unapplied
sums at September 30, 1939, were as follows:
Gourdes
Series A sinking fund.............................................. 36,597.15
Series C sinking fund.............................................. 7,737.10
Total..;............................................... ......... 44,334.25

Total expenditures for Service of the public debt amounted to Gdes.
2,638,482.58 during the fiscal year. Expenditures for Service of the Series
A and Series C bonds during the fiscal year 1938-39 amounted to Gdes.
2,512,844.54 as compared with Gdes. 3,046,760.75 in the previous fiscal year.
Of the total amount expended in 1938-39 for service of the bonds, Gdes.
2,397,320.45 covered interest; Gdes. 102,657.55 were applied to amortiza-
tion; and Gdes. 12,866.54 represent expenses incurred for transfer of funds,





HAITI: REPORT OF FISCAL REPRESENTATIVE 93

e:c. Other expenditures under public debt during the year included Gdes.
125,638.04 to cover interest and transfer charges on notes under the Public
Works Contract, and Gdes. 90,000 for International Institutions.
Interest charges on the public debt in 1938-39 amounted to 8.06 per cent
of total revenue receipts. Interest charges amounted to 8.56 per cernt of
receipts in 1937-38. By way of comparison, in 1923-24 interest on the public
debt had cost'Gdes. 6,276,510.66,.or. 19.08 per cent of total receipts during
that year.
.The circumstances which led up to the reduction: in .amortization
payments during the past two years were discussed at lengdAh in the annual
report for 1937-38. The first accord was reached, after consultations with
the Foreign Bondholders Protective Council, between the two governments
and signed January 13, 1938. It-was agreed therein that during the period
from January 1, 1938 to September 30, 1938, ,the amounts needed.' for
payments in connection with execution of the Loan Contracts should
consist of the amounts necessary to pay the interest on all outstanding
bonds issued under the Loan Contracts of October 6, 1922 and May 26,
1925; and Gdes. 100,000 an account of the amounts required tobe paid
under the Loan Contracts for the amortization of the bonds.
On July 1, 1938, the above agreement was extended through the fiscal
year 1938-39.
On July 8, 1939, a new accord was reached between the two governments
extending the period of reduced amortization payments until September 30,
1940, with a provision that if revenues exceed Gdes. 29,189,000 during
1939-40 such excess revenues will be set aside and, in the absence -of
recognized emergencies, these amounts will be available for additional
amortization.
Service of Payments

The general accounting and disbursing office of the government is known
as the Comptroller's Office or as the Service of Payments. The office
operated with its usual efficiency during the year. There were no changes
in the functions of the Service except additional accounting work in con-
nection with the Public Works program.
The office audits all government expense vouchers to determine whether
proposed payments are legal and supported .by justifying documents in due
form. If the payment upon examination of the vouchers is found to be
legal and properly justified, checks are prepared for signature. After
signature, the Service of Payments oversees proper delivery of the checks.
Checks covering monthly payments of salaries and pensions are prepared
in time to be in the hands of disbursing officers throughout the country
a few days before the end of each month.
In addition to its work of auditing and paying expense vouchers, and
preparing payroll and pension checks, the Service of Payments tabulates