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

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

Notes

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

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Harvard University Library
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HAITI



ANNUAL REPORT
OF THE


FINANCIAL ADVISER- GENERA

RECEIVER

FOR THE FISCAL YEAR

OCTOBER, 1923-SEPTEMBER, 1924



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



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


WASHINGTON
GOVERNMENT PRINTING OFFICE
1925

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NOV 19 1926

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TABLE OF CONTENTS


Page
Im ports - ------ -----------_--- I ----------------------------------Exports .----------------- 2
Balance of trade------------------------------------------------- 2
Origin of imports .------------------------------------------------- 6
Destination of exports --.---.---------------------------------------- 7
Ports of entry of imports -------------------------------------------. 10
Ports of embarkation for exports ------------------ ------------------- 13
Carrying trade .----.------------------ ------------------------------15
Foreign commerce, by months and by ports --------------------------- 21
Commodities imported --------------------------------------------- 21
Commodities exported --------------------------------------------- 26
Customs administration .-------------------------------------------- 35
Statistical bulletin ------------------------------------------------- 35
Tariff revision_ ---------------------------------------------------- 36
Commercial statistics ---------------------------------------------- 39
Customs property ------------40
Customs operation ------------------------------------------------ 42
Customs personnel ------------------------------------------------ 50
Bureau of Internal Revenue---------------------------------------- 50
Customs receipts -------------------------------- ----------------- 54
Internal revenue receipts .------------------------------------------- 63
Internal Revenue personnel ------------------------------------------- 67
Miscellaneous receipts .--------------------------------------------- 67
Governmental expenditures ---. --------------------------------------68
Treasury position ----------- ------------------------------------- 77
Receipts and expenditures for the receivership period --------------80
Public debt ------------------------------------------------------- 82
Reorganization of national railroad --------------------------------- 87
Accounting ------------------------------------------------------.89
Disbursing office .------------------------------------------------- 92
Finance law -------------------------------------------------------- 93
Budget for 1924-25__------------------------------------------------ 94
Banque Nationale de la R6publique d'Haiti --------------------------- 95
Currency.--------------------------------------------------------- .95
Supply bureau--.-------------------------------------------------- 97
Claims commission .------------------------------------------------97
Conclusion .--------------------------------------------------------- 98

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STATISTItAL EXHIBITS



TABLE NUMBER TITLE Page
1. Value of imports and exports, and excess of imports or exports,
1916-17 to 1923-24-------------------------------------- 7
2. Value of imports showing countries of origin, by percentages,
1916-17 to 1923-24 ------------------------------------- 7
3. Value of exports, showing countries of destination, by percentages, 1916-17 to 1923-24 ---------------------------------- 8
4. Value of total foreign commerce, by countries, in percentages,
1916-17 to 1923-24-------------------------------------- 9
5. Value and percentage of value of imports, exports, and total
foreign commerce, 1916-17 to 1923-24 ___ --------------------- 10
6. Value of imports, by ports of entry, 1916-17 to 1923-24 -------- 12
7. Value of exports, by ports of shipment, 1916-17 to 1923-24 ---- 14
8. Value and percentage of value of imports, exports, and total
foreign commerce, 1923-24__ ------------------------------- 15
9. Net tonnage of steam vessels in foreign commerce entered and
cleared, by registry and months, 1923-24 ------------ ------- 16
10. Net tonnage of sailing vessels in foreign commerce entered and
cleared, by registry and months, 1923-24 -------------------- 17
11. Value of imports, by registry of carrying vessels, 1923-24 ------- 18 12. Value of exports, by registry of carrying vessels, 1923-24 ------- 19 13. Value of imports, by months and ports of entry, 1923-24 -------- 20
14. Value of exports, by months and ports of shipment, 1923-24,
compared with 1922-23_ --------------------------------- 22
15. Value of imports, by commodities, 1916-17 to 1923-24 ----------- 23
16. Quantity of imports, by commodities, 1916-17 to 1923-24 ----- 24 17. Value of exports, by commodities, 1916-17 to 1923-24_ 28
18. Quantity of exports, by commodities, 1916-17 to 1923-24 ------- 30
19. Quantity and value of five principal exports, by ports, 1923-24,
compared with 1922-23--.-------------------------------- 33
20. Percentage of value of exports, by commodities, 1916-17 to
1923-24 ------------------------------------------------ 34
21. Quantity and value of exports, by commodities and months,
1923-24_ ------------------------------------------------ 34
22. Receivership fund, 1916-17 to 1923-24 ----------------------- 43
23. Expenses of Financial Adviser-General Receiver by categories,
1919-20 to 1923L24 -------------------------------------- 44
24. Expenses of administration and of civil pay clerks, by categories
and months, 1923-24_ ------------------------------------ 45
25. Expenses of customhouses, by categories and months, 1923-24_ 45 26. Expenses of customhouses, by ports, 1919-20 to 1923-24 ------- 45
27. Cost of collecting one gourde of customs receipts, average including expenses of administration and of civil pay clerks,
by categories and months, 1923-24 ------------------------ 46

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TABLE NUMBER TITLE Page
28. Expenses of the Financial Adviser-General Receiver, including
administration, civil pay clerks, and customhouses, by ports
and months, 1923-24 ------------------------------------ 48
29. Cost of collecting one gourde of customs receipts, average including administration and civil pay clerks, by ports and months,
1923-24 ----------------------------------------------- 49
30. Operating allowance of internal revenue service, 1923-24 ------- 52
31. Expenses of administration of internal revenue service, by categories and months, 1923-24 ------------------------------- 52
32. Expenses of internal revenue collecting offices, by categories and
months, 1923-24 .----------- ----------------------------- 53
33. Expenses of administration and operation of internal revenue service, by districts, 1923-24 ------------------------------ 54
34. Cost of collecting one gourde of internal revenue, average including expenses of administration, 1923-24 -------------------- 54
35. Revenues of Haiti, by sources and with fluctuations in the exchange value of the gourde, computed 1889-90 to 1923-24 --- 55
36. Customs receipts, by months, 1923-24 ----------------------- 60
37. Customs receipts, by ports, 1916-17 to 1923-24 --------------- 61
38. Customs receipts, by services and ports, 1923-24 -------------- 62
39. Customs receipts, by services and months, 1923-24 ------------- 63
40. Internal revenue receipts, by services, 1919-20 to 1923-24 ------ 64
41. Internal revenue receipts, by financial districts, 1919-20 to
1923-24 ---------------------------- 66
42. Internal revenue receipts, by months, 1919-20 to 1923-24 ----- 67
43. Expenditures of Haitian Government, by services, 1916-17 to
1923-24--.---------------------------------------------- 69
44. Receipts and expenditures, 1923-24 ---------------------------72
45. Cash assets and liabilities, September 30, 1924 ---------------- 77
46. Receipts and expenditures and excess of receipts or expenditures,
1916-17 to 1923-24 ------------------------------------- 80
47. Public debt, September 30, 1924 ----------------------------- 82

APPENDIX

Schedule No. 1: Quantity and value of imports into Haiti, by countries of origin, October, 1923-September, 1924 -------------- 100
Schedule No. 2: Quantity and value of exports from Haiti, by countries of destination, October, 1923-September, 1924 --------- 125 Schedule No. 3: Customs receipts, by sources, by ports and by months,
fiscal year 1923-24 .------------------------------- 129

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ANNUAL REPORT OF THE ,FINANCIAL ADVISER-GENERAL
RECEIVER OF HAITI FOR THE FISCAL YEAR
OCTOBER, 1923-SEPTEMBER, 1924

OFFICE OF THE
FINANCIAL ADVISER-GENERAL RECEIVER
Port au Prince, Haiti, January 10, 1924.
THE SECRETARY OF STATE .OF THE UNITED STATES OF AMERICA, THE SECRETARY OF STATE FOR FINANCES AND COMMERCE OF THE
REPUBLIC OF HAITI:
GENTLEMEN: There is presented herewith the eighth annual report of the commerce and finances of Haiti, which summarizes and extends the monthly reports provided for in article 7 of the treaty of September 16, 1915, between the United States and the Republic of Haiti.
IMPORTS

During the fiscal year 1923-24 the value of imports into Haiti reached Gds. 73,480,6401. This figure showed substantial improvement over the import values in each of the. three preceding years, but was less than the import trade in the two abnormal years immediately following the close of the European War. As the level of prices remained roughly comparable with that of the prior year, it may be considered that the volume of merchandise as well as the value of merchandise showed a healthy expansion. During the spring and summer months of 1924 it was the general opinion of merchants that imports had been somewhat excessive and had resulted in an overstocking of the Haitian market. However, by the end of the fiscal year surplus stocks had largely been liquidated and merchants entered the new fiscal year under very auspicious circumstances.
At no time during the year has there been serious credit strain, nor has there been undue congestion such as to prevent the prompt receipt of merchandise which had been ordered. Finally, the shipping service from Haiti to its principal markets and sources of supply was more satisfactory than usual. In a word, therefore, the year just closed can be regarded as one of normally satisfactory expansion from the point of view of the import trade in general. I One gourde equals twenty cents (United States) and the gourde is, by law, exchangeable on demand and without expense at the fixed rate of five gourdes for one dollar (United States). Accordingly the value of Haitian currency is not subject to exchange fluctuations.
(1)

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EXPORTS


Similarly satisfactory statements can not be made in regard to exports. As is well known, coffee is the principal export commodity of Haiti, and a subnormal crop of coffee characterized 1923-24. Furthermore, a considerable degree of depression existed in the dyewood industry, which constitutes one of Haiti's principal export activities. Total exports for the fiscal year were valued at Gds. 70,881,610, or over Gds. 2,000,000 less than in the prior fiscal year. Nevertheless, the export trade of 1923-24 compared very favorably with the Gds. 33,000,000 in 1920-21 and Gds. 53,500,000 in 1921-22. It can not be too often emphasized, however, that development of the export trade is unquestionably the chief economic problem of Haiti. With this problem out of the way, such other serious problems as improvement in the standard of living and development of public education and public hygiene will be solved as a matter of course.
BALANCE OF TRADE

Table No. 1 presents the value of imports and exports and the excess of imports or exports for each of the fiscal years since the American intervention. It will be observed that there was an excess of imports in five years and an .excess of exports in three years, showing a considerable surplus of imports over exports for the entire period. At first glance this appears to be a highly unsatisfactory situation in such a country as Haiti, which should be a large exporter of raw materials and which also needs to show a large annual surplus of exports over imports because of its relatively important obligations in the form of foreign indebtedness. It is quite true, indeed, that in new countries which are undergoing development imports may greatly exceed exports, due to the influx of capital into such countries. International investments must immediately be reflected in the imports by the borrowing country, and the return on those investments must eventually be reflected in exports from the borrowing country and imports into the lending country. However, in the period from 1916 to 1924, foreign investments in Haiti were not of special importance, even taking into consideration the series A loan of 1922 for Gds. 80,000,000, as this loan was principally for refunding other foreign indebtedness.
The question arises, therefore, of how the apparent excess of imports of over Gds. 36,500,000 for the eight-year period has been paid for. It should be stated, moreover, that the excess of imports is greater than that indicated by the statistics. For the years 1916-17 to 1921-22 inclusive, import statistics reflected the value of merchandise in the country of origin, plus the estimated cost of laying down such merchandise in Haiti, but not including customs duties.

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'This method was correct, but unfortunately a different procedure was adopted for the years 1922-23 and 1923-24, and for these periods the value of imports, as indicated in the customs statistics, signifies merely the value of merchandise at the point of exportation to Haiti, without an adjustment fbr the cost of placing the merchandise .at Haitian ports. Obviously this method does not include all costs of imported goods, and import valuations for the year 1924-25 are being computed on the same basis as prior to 1922-23. As expenses for freight, insurance, commissions and handling have been found to equal about 10 per cent of the value of imports at the foreign port
-of shipment, the true import' value of merchandise in 1922-23 was about Gds. 77,869,000 and in 1923-24, Gds. 80,829,000. Con'sequently, the total excess of imports for the eight-year period may be estimated at Gds. 51,000,000.
How was this excess of imports of Gds. 51,000,000 covered and what, in general, are the factors governing the economic balance as
-contrasted with the balance of trade of Haiti? It needs little argument to show that all imports must in some manner be paid for, and it needs little additional argument to show that under certain circumstances an excess of imports into a country does not represent impoverishment, but prosperity. Everything depends upon circumstances. In the case of a new country, where the influx of capital from abroad results in an excess of imports, such excess imports indicate prosperity rather than depression, as on the whole the foreign capital yields to the borrowers in the new country a larger return than they are required to pay as interest for the loan of the capital. Likewise in an old country, such as Great Britain, an excess of imports indicates prosperity, as such imports represent merely the annual return on the large foreign investments of that nation. On the ,other hand, the excess of imports in such countries as Austria or Germany, after the close of the European war, did not represent prosperity, but progressive impoverishment. The excess of imports neither represented the influx of capital into those countries nor the return on foreign investments, but an actual diminution of capital resources. The citizens of Austria and Germany were disposing of their accumulated wealth in order to meet the necessities of existence.
In which category does Haiti stand? It is certain that Haiti does not have important investments in foreign countries, therefore the excess of imports can not represent income from that source. It is equally certain that Haiti has not been paying for excess imports by liquidating capital accumulations. Therefore the excess of imports can not be attributed to impoverishment of the people. On the contrary, all of the available evidence indicates that each one of the last several years has represented a definite improvement of con43915-25-- 2

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siderable magnitude in the well-being of Haiti. It is true, indeed, that there was a very trying period in 1920-21 and extending into 1922, during which commercial conditions in Haiti were difficult. But exactly the same situation existed throughout most of the countries of the world. Without question, the excess of imports was more than liquidated, leaving at the end of the period more capital, more prosperity, and more well-being than at the beginning. There are three principal methods by which excess imports have been met and more than met, leaving a real economic surplus instead of deficit.
In the first place, the excess of imports is explained by an infiltration, as contrasted with an influx of foreign capital seeking investment in this country, and the estimate of this office is that such foreign capital probably accounts for Gds. 35,000,000 of the excess of imports. It should not be inferred that the foregoing argument signifies that, foreign investments are to be considered separately from imports. They are, unquestionably, included in imports, but not in such a way as immediately to affect the balance of payments. That is, imports equal to the value of the new investments of foreign capital for a given year may be received by a country without the necessity of paying for them by equivalent exports. Thus foreign investments, less the estimated income from those investments which is remitted abroad, may properly be considered as one of the means of liquidating an adverse balance of imports.
The principal item of invisible imports and, accordingly, the principal item in effecting the balance of payments, has been the earnings of returning emigrants. For some years there has been a large annual movement of Haitians going to Cuba and to other countries where remunerative work has been obtained. At the end of the active season it is customary for many of the emigrants to return to Haiti, and it has been estimated that such emigrants usually return with about Gds. 1,000 each, whereas they left Haiti in virtual destitution. In the last two or three years it is estimated that Gds. 15,000,000 annually has been introduced by returning emigrants, and for the eight-year period it may be confidently stated that Gds. 70,000,000 have found their way into Haiti in this fashion. Accordingly the economic balance of Haiti is explained in the same manner as that of such countries as Italy and Greece, where emigrant remittances are paramount in importance, rather than in the same manner as for an old country such as Great Britain or for new countries such as Canada or Australia.
The third item is the expenditures of the American occupation of Haiti. Though a considerable portion of such expenditures is reflected in imports, no corresponding exports are required to pay for those imports as the funds are directly remitted from the United States Treasury. For the eight-year period it is estimated that

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expenditures of the United States Marine Corps have been at least Gds. 20,000,000. Thus credits not reflected in the export statistics have been accumulated to the extent of at least Gds. 125,000,000 as an offsetting item against an excess of imports of Gds. 51,000,000. Therefore the economic balance Wkas in favor of Haiti by about Gds. 74,000,000 and was the basis for and explanation of the evidences of increasing prosperity wlich appear on every hand.
Other items of some importance in determining the international balance of payments for Haiti are expenditures of Haitians living abroad and of foreign travelers in Haiti. It is believed that these items in a general way offset on'e another.
Only if there were definite evidence of progressive impoverishment of the population or if the indebtedness of the Government or its citizens were rapidly increasing would it be possible to draw the conclusion that the balance of payments has been against Haiti. But all statistical indices and all competent observers are in accord that, with the exception of the years of world-wide postwar depression, the economic life of Haiti has shown consistent and substantial improvement.
There is one additional explanation of the apparent excess of imports over exports. A statistician realizes better than anyone else the fallibility of statistics. Statistics are at best merely estimates, and a slight error, if that error be cumulative, may result in very large final discrepancies. For example, upon the importation of even a simple object it is difficult to state its exact value. As a matter of fact the object has no exact value, as the identical object will often be sold for different prices by different merchants. -Moreover, as both the import and export tariffs of Haiti are largely adjusted on a specific basis, valuations become of relatively less importance, and consequently are not scrutinized as carefully by the customs authorities as if the duties accruing to the State were dependent on accurate evaluations. Under these circumstances, it can easily be recognized that a slight overstatement in the value of imports and understatement in the value of exports might result in an apparent statistical position at the end of the fiscal year exactly the reverse of the true position.
The only accurate measure of imports and exports is, in the case of imports, the amount of money which has actually been paid to foreigners for placing merchandise in Haiti, and for exports it is the amount of money actually received by Haitians for the products which they sell. In broad terms such values in the case of imports are the original cost of merchandise in the foreign countries plus steamship freights, insurance, bank commissions and general charges, but not including customs duties. In the case of exports, the true value is merely the price which Haitian exporters receive for their

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commodities placed aboard ship and ready for export. At least such a picture is true for Haiti. In the case of such a country as Great Britain, which has both a large merchant marine and which handles most of its own insurance and banking business, the value of imports does not need to be increased by freight, insurance, and commissions, as these charges are paid by and to British subjects and would not enter into the international balance of payments.

ORIGIN OF IMPORTS
Table No. 2 shows, in percentages, the origin of imports into Haiti from 1916 to 1924. For the first six years of the period percentage distribution can only be shown for the three most important countries selling merchandise to Haiti. At the present time the statistics of the customs service show in minute detail the distribution of imports among all of the countries which supply the Haitian market. As a matter of fact, there is great uniformity in the proportion of Haitian import trade which each of the importing countries has consistently maintained. Throughout all of the period the United States has been by far the largest purveyor to the Haitian market, its proportion of total imports never falling below four-fifths, and for two years rising considerably above nine-tenths of the total. However, during the period following the war there has been a tendency for the proportion of imports from the United States to decline. This was to be expected, and indeed further declines may be anticipated in the future as the important manufacturing countries of the world reestablish their pre-war commercial activities. The United Kingdom and France, respectively, were second and third among the important countries exporting to Haiti. The trade of the United Kingdom has shown unusual stability, except for three years of the period in question. French commerce has fluctuated widely. On the whole it may be expected to show reasonable growth in the future. This is because improvement in the economic condition of Haiti will result in constantly larger purchases of the comforts and luxuries of life, and because French products have always appealed most strongly to the Haitian taste.
It is a matter of some surprise that the trade of Germany has not shown greater development from 1922-23 to 1923-24. Possibly Germany is still undergoing such profound political and industrial readjustments that its potential competitive force in the Haitian market has not yet been felt. All of the other countries of the world furnish but meager proportions of the imports of Haiti, and their trade needs no special comment.

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TABLE NO. 1

VALUE OF IMPORTS AND EXPORTS, AND EXCESS OF IMPORTS OR
EXPORTS

FISCAL YEARS 1916-17 TO 1923-24


EXCESS EXCEEroSSs
IMPORTS EXPORTS IMPORTS EXPORTS


Gourdes Gourdes Gourdes Gourdes
1916-17.-------------.---.-------------------. 43, 030, 428 44, 664, 488 .-------------. 1,634, 000
1917-18 .----------------------------.------. -----50,903, 468 38, 717, 650 12, 185, 818 .
1918-19---.-----.---.--------------------------- 85, 588, 041 123,811,096 38, 223, 055
1919-20 .----.-------------. ----------------. 136,992,055 108, 104, 639 28, 887, 416
1920-21----.-------.-----. .---------------------- 59, 786, 029 32, 952, 045 26, 833, 984 -.
1921-22.-------------------------. ---- 61,751,355 53,561,050 8,190,305 .
1922-23----------.-----.----------------------- 70,789,615 72, 955, 060 -------------- 2,165, 245
1923-24--.-------.---------------------------. 73, 480, 640 70, 881,610 2,599, 030 ------------TOTAL-----------. -- .---------------.-----: 582,321,831 545,647,578 78,696,553 42,022,300



TABLE NO. 2

VALUE OF IMPORTS SHOWING COUNTRIES OF ORIGIN, BY PERCENTAGES

FISCAL YEARS 1916-17 To 1923-24


1916-17 1917-18 1918-19 1919-20,1920-21 1921-22 1922-23 1923-24


Per cent Per cent Per cent Per cent Per cent Per cent Per cent
United States.--------------.-----. 86.89 92.48 93.12 83.12 79.82 83.87 81.40 80.41
France.----.---.--.-----.---------------. 4.57 2.14 2.02 5.30 9.51 5.21 4.65 6.02
United Kingdom--.---.--------------- 6.88 3. 92 3.22 & 35 6.84 6. 18 7. 84 6. 70
Bahama Islands .~. .04 .02
Belgium -.-. . .01 .02
Canal Zone . .04 .08
Cuba .~. .06 .03
Curacao -. .25 .28
Denmark. . .18 .43
Dominican Republic .96 1.06
Germany.---------------------------- 1.66 1.36 1.64 3.23 3.83 4.74 2.62 3.05
Italy .37 .45
Jamaica. | .10 .07
Netherlands ._. .79 1.06
Porto Rico. .05 .02
Switzerland .11 .03
Virgin Islands .-. . .43 .18
All other. .10 .09

ToAL---------. -- ------------100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00



DESTINATION OF EXPORTS

Countries of destination of Haitian exports for the period 1916-24

are shown in Table No. 3. In this instance much wider variation is

observable than in the case of imports. France, for example, which

purchased 66.10 per cent of Haitian products in 1923-24, purchased

only 0.48 per cent in the-war year of 1917-18. On the other hand,

the United States, which purchased 80.83 per cent in 1917-18,

participated in Haitian export trade to tLe extent of only 9.38 per

cent in 1923-24. While other fluctuations were not so violent, there

is, however, the case of Cuba, which purchased such a large amount

of foodstuffs in Haiti in 1921-22 that it constituted 24.88 per cent

of the value of products exported in that year, whereas in 1923-24

Cuban purchases equaled only 0.26 per cent of the total.

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8

France constitutes Haiti's best customer because of French preference for Haitian coffee, and because coffee is much the most important single item in the export trade of Haiti. It is true, indeed, that an appreciable quantity of Haitian coffee which appears as an export to France is ultimately consumed in countries other than France. This is due to the fact that the Haitian coffee trade is concentrated at Havre and because merchants of that city have developed an efficient international distributing organization. Possibly it is true also that the tariff preferential granted by France to Haitian coffee has had an appreciable effect in inducing the French consumer to purchase Haitian coffees in preference to those of other countries. Nevertheless, the superior quality of the Haitian product is generally recognized, as is also the discriminating appreciation of the French in questions of quality and taste.
TABLE NO. 3
VALUE OF EXPORTS SHOWING COUNTRIES OF DESTINATION. BY PERCENTAGES
FISCAL YEARS 1916-17 TO 1923-24

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

Per cent Per cent Per cent Per cent Per cent Per cent Per cent Per cent
United States.-----------------------54.39 80.83 44.49 52.15 32.38 13.44 13.55 9.38
France .------------.------------. 41.87 .48 52. 44 34. 39 50. 70 56.18 60. 58 66. 10
United Kingdom.-------------------- .85 1.11 1. 68 3. 62 5. 50 4.95 5.10
Barbados . . 20 .36
Belgium .- 15. 18 3. 59
Canal Zone. . .08 .03
Cuba . 1.57 .26
Denmark 4.34 5.98
Dominican Republic . 07 .05
ermany------------------- -------- 2.89 18.69 1.96 11.78 13.30 24.88 4.70 4.60
Italy 2.77 2.07
Netherlands . - 1.60 1.59
Norway .03 .19
Porto Rico .12 ,.06
Spain_ . .01 .17
Sweden .08 .02
All others. .17 .45
TOTAL_ -----------------------100.00 100.00 100.00 100.00 100.00 100.00 100. 00 100. 00

Certain well informed persons are of the opinion that as conditions become more normal in Germany and as pre-war prosperity returns, a considerably wider market for Haitian coffee will be developed in that country. Such a development is to be desired, as it is a dangerous situation for any country to rely too implicitly upon a single outlet for its principal staple export. Not only did coffee constitute 73 per cent of the total value of Haitian exports in 1923-24, and not only did France purchase 80 per cent of the entire coffee crop, but she also purchased approximately one-half of the second most important Haitian export, namely, raw cotton. Thus, the export market for Haitian products is unduly concentrated, and needs diversification as to countries of destination as well as a greater diversity in the products exported. Owing to its considerable purchases of coffee, Denmark was the third most important customer of Haiti,

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9


showing larger purchases than even Great Britain, Germany, Belgium or Italy. This is one of the most striking features in connection with the export trade. As in the case of imports, British takings of Haitian staples have shown considerable uniformity over the last four years. The same may be said of German purchases for the last two years.
Table No. 4 presents the percentage. distribution of combined imports and exports from 1916 to 1924, and, not unnaturally, the aggregation of both imports'and exports diminishes the wide fluctuations which appear when either imports or exports are presented separately. The significant features in the table are the progressive decline in the share of the United States in the total trade of Haiti and the synchronous increase in the proportion obtained by France. Whereas in 1919-20 the United States participated to the extent of 70.44 per cent and France to the extent of only 17.21 per cent in the total trade of Haiti, the corresponding percentages for 1923-24 were 45.53 and 35.52. Should the trend of the last five years continue, it will not be long before the total trade of France with Haiti exceeds that of the United States. Uniformity is again the characteristic of the trade of Great Britain, which is third in importance in Haitian commerce. However, France and the United States together absorb 81 per cent of Haiti's international commerce, and accordingly all of the other countries are of only minor importance.
There are presented in Table No. 5 the details in both values and percentages of imports, exports, and total trade, by countries of origin and of destination, for the fiscal year i923-24.

TABLE NO. 4

VALUE OF TOTAL FOREIGN COMMERCE BY COUNTRIES. IN PERCENTAGES

FISCAL YEARS 1916-17 To 1923-24


1916-17 Per cen


United States.---------.----------. 72.07
France.-------------.-----------. 21.59
United Kingdom.-----------------. 4. 13
Bahama Islands. Barbados.-. Belgium.
Canada. .
Canal Zone Cuba Curacao. Dominican Republic. DenmarkGermany- -. 2.21
Italy .-.-. . . . .Jamaica. Netherlands. Norway Porto Rico. Spain. Sweden.----------------------.
Switzerland. Virgin Islands All other---------------------.TOTAL.-------------------100.00


1917-18 1918-19 1919-20


Per cent Per cent Per cent
88.16 66.06 70.44 1.152 30. 06 17. 21 2. 43 2.05 5. 62


100.00 100.00 100. 00


1920-21 1921-22 1922-23 1923-24

Per cent Per cent Per cent Per cent
65.92 51.12 46.97 45.53
21. 58 28.88 33.04 35. 52
5.90 5.86 6.37 5.92
.03 .02
.13 .18
2.63 1.77
.01 .18
.06 .06
.84 i .14
.11 .15
.51 .56
2. 26 3.15
6.60 14.14 3.69 3. 81
1. 59 1.25 .05 .04
1.21 1.32
.02 .09
.09 .04
.01 .11
.04 .01
.05 .05
.21 .09
.08 .01
1 10000 100. 100. 00 100.00


7

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10


TABLE NO. 5

VALUE AND PERCENTAGE OF VALUE OF IMPORTS. EXPORTS AND, TOTAL FOREIGN COMMERCE BY COUNTRIES

FISCAL YEAR 1923-24


IMPORTS EXPORTS TOTAL


Gourdes Per cent Gourdes Per cent Gourdes Per cent


Austria 95 ------------------------ ----------- 95
Bahama Islands.--. 15,205 0.02 14, 245 0.02 29,450 0.02
Barbados.----------------------------------------.---.----. 253, 475 .36 253, 475 .18
Belgium ---------. -------------.12,005 .02 2,546,875 3.59 2,558,880 1.77
Canada----------. ------------- 370 255, 600 .36 255, 970 .18
Canal Zone.------------------- 59,485 .08 23,945 .03 83,430 .06.
China.-------------------------. 130 ---.------.-.-----.--.----.-------------. 130 .
Colombia.-------------------------. -------------2,300 .--. 2,300 .
Cuba.-------------------------.23, 940 .03 182, 485 .26 206,425 .14
Curacao.-----------------------.209,125 .28 3,460 212, 585 .15.
Czechoslovakia-------.-------- 5,015 .01 .-----------.---------. 5,015 .
Denmark-.------------------- 317,415 .43 4,235,590 5.98 4,553,005 3.15
Dominican Republic. ---------- 776, 355 1.06 37,160 .05 813,515 .56
Egypt. ----------------------- 295 ---------- ----------------------. .295 .
France--------. --------------- 4, 426, 140 6. 02 46, 849, 615 66. 10 51,275, 755 35. 52;
Germany.--------------------- 2,239,995 3.05 3,263,440 4.60 5,503,435 3.81
Greece----------. --------------. 45 ----------------------------------. 45 .
Guadeloupe----.---.---------. 310 ---------------------------------. 310 .
Hawaiian Islands.------------. 20,040 .03 ------------- ---------- 20,040 .01
Italy--------------------------. 331,740 .45 1,467,810 2.07 1,799, 550 1.25.
Jamaica------.-----------------. 47,165 .07 6,900 .01 54,065 .04
Japan.--------------------------------------. 830 830 .
Madeira Islands.--------------. 1,515 ------------------.----.- i, 515
Martinique .-------------. 20 1,000 1,020 .
Mexico---.---------------------. 75 --------------------------- 75
Netherlands.-------------------.780,545 1.06 1,124, 740 1.59 1,905, 285 1. 32
Norway.----------------------.10 135, 465 .19 135, 475 .09
Palestine.--.-- .----------. 25-------- 25---------- .-------------- .---------- 25 .
Porto Rico.---------------. ----- 17,125 .02 44,535 .06 61,660 .04
Portugal.-----------. ---------- 10 ----------------------------------.10 .
Spain.------------------------. 34,145 .05 117, 485 .17 151,630 .11
Syria.------------------. 45 ------------------------.----------. 45
Sweden.-----.----------- 160 .0 13,125 .02 13,285 .01
Switzerland-------------------. 23,435 .03 41,780 .06 65,215 .05
United Kingdom. -------------- 4,923,000 6. 70 3, 613, 495 5. 10 8, 536, 495 5. 92.
United States.-----------------59, 086, 880 80.41 6, 646, 255 9.38 65, 733, 135 45. 53.
Virgin Islands.-----------------. 128,780 .18 ----------.----------.----. 128,780 .09.
TOTAL.----------------- 73,480,640 100.00 70,881,610 100. 00 144,362,250 100. 00



PORTS OF ENTRY OF IMPORTS


Not only is it important to present in considerable detail thecountries of origin and of destination for imports and exports, but.
the Haitian ports of entry for imports and of departure for exports.
constitute one of the best indices of relative economic development in
the various districts of the Republic. Accordingly, comparative
statistics have been compiled and offer some rather interesting
information. In the case of imports clearly defined trends are difficult to discern. It may be stated, however, that in general Cape
Haitian has declined in importance and has been succeeded as thesecond port of the Republic by Cayes. Over the past four years theimport trade of Cape Haitian has been virtually stationary, and,.
indeed, its value in 1923-24 was almost identical with that of thefirst year of the period under review, 1916-17. On the other hand,.

..





the import trade of Cayes has doubled during the same period, and from all indications it has been stabilized on the higher level. Imports to St. Marc and Jacmel have also shown a very definite trend in the direction of expansion, and a less positive tendency toward increase is noted in the case of Port au Prince. On the contrary, such important ports as Gonaives, J6rimie, and Port de Paix have experienced little or no increase in import activity during the entire eight-year period, and in some instances there has even been a decline, notably in the case of Petit Goave.
For imports as a whole a reasonable growth of trade has occurred, and this growth has been quite' consistent for each year of the period with the exception of the abnormal years 1918-19 and 1919-20 when unusually heavy purchases were made. The totals for the eight-year period clearly indicate the dominance of Port au Prince in the import trade of the country, this one port receiving considerably more than half of total imports. For the period as a whole Cape Haitian is the second port in importance though the tendency of Cayes to supplant Cape Haitian is clearly evident. Next in relative importance are Gonaives and Jacmel with approximately 5 per cent each of total imports for the eight-year period, and a fourth group is composed of St. Marc, Petit Goave, Port de Paix and J~r6mie, in the order of their importance. The remaining ports account for an insignificant portion of the total value of imports. The statistics in detail for the ports of entry for imports are presented in Table No. 6.

..









TABLE NO. 6

VALUE OF IMPORTS BY PORTS OF ENTRY

FIscAL YEARS 1916-17 To 1923-24


Aquin. BelladBre. Cape Haitian Cayes. Fort Libert. Glore Gonaives. Jacmel . Jtrmie Miragoane. ._ Ouanaminthe Petit Goave. Port au Prince. Port de Paix. Saint Marc.
TOTAL.


1916-17


Gourdes
87, 232
7,672,144 4,027, 574

3, 266, 953 2,483,709 1,754,176
694,180
2, 552,032 16, 931,366
1,803, 793 1,757, 269


1917-18 1918-19


Gourdes Gourdes
25,073 108,060
6,065, 536 11, 509, 547 3,069, 872 7, 096, 393

2,676,184 4, 607, 375
1,964,129 4,159,438
1,145,982 1,981,255
160,838 522,137
15,382 18,699
1,728,617 2,906,462 31,344,929 47,987,498
1, 362,151 2, 558, 870 1,344, 775 2,132, 307


1919-20


Gourdes
389,416
17, 378, 455
10, 996, 304
736

7,176, 843 6, 676, 565 3, 719,167
898, 660 91, 856 5,178, 888 75, 919, 898 3,339, 751 5, 225, 516


1920-21


Gourdes
172, 791

7, 312, 575 7, 025,130
551

1,886, 363 2,004,993 1,113,398
316,314
9, 239 1, 008, 721 36, 376, 402 1,370, 566 1, 188, 986


1921-22 1922-23


Gourdes
790

7, 321,065 4, 373, 525
1,125

3, 637, 565 3,000, 005
829, 695 752,890
139, 285 1,025, 645 36,751,465 1,686, 240 2, 232, 060


Gourdes
46, 005
605
7,600,360 6, 447, 030 1,085 57, 915 3, 416, 765 4, 465,095 1, 177, 630 1, 029, 310 507,940 1,465, 705 40, 611, 930 1,548, 620 2, 413,820


43, 030,428 50,903,468 85,588,041 136,992,055 59,786,029 61, 71,,355 70,789,815


1923-24


Gourdes
289,810
2,065
7, 630, 340 8,494,785
880
99, 110 3, 286, 855 4,533, 280 1, 362, 720
930,490 545,540 1,648,995 39,904,450 1, 654,995 3,096,325


73, 480, 640


TOTAL


Gourdes
1,119,177 2, 670 72,490,022 51, 530, 613
4,377
157,025 29, 954, 903 29, 287, 214 13, 034,023 5,304,819 1,327,941 17, 515, 065 325, 827,938 J-M 15,324,986 tO 19, 391,058


582,321,831

..





PORTS OF EMBARKATION FOR EXPORTS
Statistics showing the value of exports shipped from Haitian ports during 1916-1924 are presented in Table No. 7.
As in the case of imports, Port au Prince is also the largest point of departure for Haitian exports. However, this port does not occupy the same dominating position as in the case of imports. Its percentage of exports Was but 24, instead of 54 as in the case of imports. If the first year of tlhe eight-year period is to be disregarded as abnormal, exports from Port au Prince can not be said to show particular development as the years have passed. A definite upward trend can be traced for Jacmel which was the second port in the value of exports in 1923-24, with-a growth of almost 100 per cent in the eight-year period. However, for the entire period Jacmel is only the third port in importance, the second being Cape Haitian. Unfortunately, the latter port is apparently going backward, the year 1923-24 having the smallest value of exports, with two exceptions, of the entire eight-year period. Cape Haitian also fell behind Petit Goave and Cayes in the value of products exported, and was only appreciably more important than St. Marc. As in the case of imports, Cayes has shown a gratifying and consistent expansion in exports, and the same is true of St. Marc and Gonaives. Much less satisfactory has been the situation in J6r6mie, where trade has actually declined, while Petit Goave has shown unusually violent fluctuations in the value of exports, ranging from Gds. 1,642;000 in 1917-18 to Gds. 9,421,000 in 1922-23 and declining to Gds. 7,950,000 in 1923-24.
Of the minor ports Aquin and Miragoane have assumed consistently greater importance in the export trade. For the entire eight-year period Port au Prince constitutes a special class in the importance of its exports; the second category is composed of Cape Haitian and Jacmel; the third of Petit Goave, Gonaives, Cayes, and St. Marc; the fourth of Port de Paix and J6r6mie; and the fifth of Miragoane and Aquin. The trade of Fort Libert6 during the year 1923-24 was of such a disappointing character that the port was closed by law.

..








TABLE NO. 7

VALUE OF EXPORTS BY PORTS OF SHIPMENT

FISCAL YEARS 1916-17 To 1923-24


Aquin. Belladere Cape Haitian Cayes.
Fort Libert Glore .
Gonaives--.- -.
Jaemel. - Jirmie.-- .
Miragoane. .
Ouanaminthe --- .
Petit Goave. Port au Prince. Port de Paix .
Saint Marc .
TOTAL .


1916-17 1917-18


Gourdes Gourdes
403,951 57,087

8,642,025 5,516,089
4,026,883 2,269,946
55,485 21,760
4,351,122 1,934,839
4,497, 937 4,193, 421 3,461,339 2,296,234
569,764 184, 673
4,991 17,253
3,397,701 1,642,875
8,911,260 15,627,176 3, 558, 447 1,931,194 2, 783,523 3,025,103

44, 664,428 38,717,650


1918-19


Gourdes
734,228
17,142, 327 7,976, 838
376, 678

9, 656, 834 18, 888, 836 6,417, 782 1,937, 748
6,949 6,794, 359 42,344,034
5, 490, 332 6,044,151


1919-20


Gourdes
873,309
14. 934, 693 6,719,206 1,092, 445

6, 50,104 10, 841, 654 3,736,135
1,227,594 14,891 6,829,078
40, 613,084 5,973,403 8, 689, 043


1920-21


Gourdes
518,525

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


1921-22 1 1922-23 1 1923-24


Gourdes
409,470

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


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


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


123,811,096 108,104,639 32,952,045 53,561,050 72, 955, 060 70, 881,610


TOTAL


Gourdes
5,727,935
235
75, 339, 913 40,349,344 1,929,014 39,995 41,173,078 66, 331,623 21,855,599 9, 617,019 66,588 42, 788, 731 171,702,494 }28, 699, 568 40, 026, 442


545, 647, 578


I i I :


I


I


I


1 545,647,578

..



15

More detailed statistics of the value of imports and exports and of total trade, as well as the proportion of imports, exports, and total trade handled by each port, are presented in Table No. 8.
This table demonstrates that there are four well-defined categories of Haitian ports, the first beidg composed of Port au Prince alone, the second, of. Cayes, Cape Haitian, and Jacmel, in their order of relative importance, the third, of St. Marc, Gonaives, and Petit Goave, and the fourth including the remaining ports.
TABLE NO. 8
VALUE AND PERCENTAGE OF VALUE OF IMPORTS, EXPORTS AND
TOTAL FOREIGN COMMERCE BY PORTS FISCAL YEAR 1923-24

IMPORTS EXPORTS TOTAL

Gourdes Per cent Gourdes Per cent Gourdes Per cent
Aquin-.-------------------------. 289, 810 0. 39 1, 516, 610 2. 14 1,806, 420 1.25
Belladre-----.----------------.2, 065 .------------------------.---------- 2, 065
Cape Haitian.-----------------. 7, 630, 340 10. 37 6, 953, 290 9. 80 14, 583, 630 10. 10
Cayes .------------------------- 8, 494, 785 11. 56 7, 249, 335 10. 23 15, 744, 120 10. 90
Fort Libert6.-. 880 -.-. . -------- 880 .
Glore. .------------------------- 99,110 .13 17,740 .03 116,850 .08
Gonaives. .-------------------- 3,286, 855 4. 47 6, 448, 700 9. 10 9, 735, 555 6. 74
Jacmel .------------------------ 4, 533, 280 6. 17 8, 426, 455 11.88 12, 959, 735 8. 98
Jrmie .------------------------ 1,362, 720 1. 86 2, 303, 505 3. 25 3, 666, 225 2. 55
Miragoane. -------------------- 930, 490 1.27 1,714,615 2.42 2,645, 105 1.83
Ouanaminthe .-------------- 545,540 .74 14,020 .02 559,560 .39
Petit Goave .1. __-. _. 1, 648, 995 2. 25 7, 950, 625 11.22 9, 599, 620 6. 65 Port au Prince.---------------- 39, 904, 450 54. 31 17, 464, 075 24. 64 57, 368, 525 39.74
Port de Paix 3. 1,654, 095 2. 26 4, 026, 665 5. 68 5, 681,660 3. 94 Saint Marc. -------------------- 3, 096, 325 4. 22 6, 795, 975 9. 59 9, 892, 300 6. 85
TOTAL -----. 73,480, 640 100.00 70, 881, 610 100.00 144, 362, 250 100. 00

CARRYING TRADE
In Table No. 9 are presented the statistics for steam vessels entering and clearing Haitian ports during 1923-24. It indicates that there were 449 entrances, with a net tonnage of 743,580 tons, and 449 clearances, with a net tonnage of 746,806 tons. There was relative uniformity in the number of vessels calling at Haitian ports from month to month, and also the tonnage remained relatively equal in amount. Foreign commerce has, indeed, been well supplied with maritime transportation, and probably the ship owners have not profited greatly from Haitian trade, as considerably more tonnage needs to be developed to make this trade-desirable in a large way. Of the total steam tonnage more than one-half flew the flag of the United States, with 402,652 net tons, while second place was occupied by the Dutch merchant marine, with a tonnage of 119,384 net tons. France and Great Britain had almost the same amount of net tonnage calling at Haitian ports, and the only other important participant in the shipping entering Haitian ports was Germany. Obviously, the figures for steam vessels cleared are almost identical with steam vessels entered.

..









TABLE NO. 9 NET TONNAGE OF STEAM VESSELS IN FOREIGN COMMERCE ENTERED AND CLEARED BY REGISTRY AND MONTHS FISCAL YEAR 1923-24 STEAM VESSELS ENTERED


October, 1923.----. November.-.-.December.January, 1924-. .
February- .March. .
April.---. .
May.--. .
June.
July August. .
September .

TOTAL .


AMERICAN FRENCH


Nberum- Tonnage


16 43,695 14 39,432 16 46,325 11 31,248 9 27,655 10 33,509 10 31,686 10 31,531 8 28,352 8 28,272 10 31,008 9 29, 939


Number


3 2 2 3
2 3 2 1 3 3

3


Tonnage Number


10, 787 5,107 2,973
4, 504 4,469 10, 861
4, 875 1, 577
6, 176 6, 352

6, 357


131 402,652 27 64, 038


BRITISH I GERMAN


Tonnage


Number


DUTCH


_____________________ I- _____________________


Tonage Num Tonnage NumTonagber ber


-I -1- I 1 .1 I _


3, 741 2, 419 2, 607 16, 317 2, 329 12, 927 2, 557 3, 182
3,133 4, 426 5, 467 4,710


63, 815


2
2
3
2
5
2
2
5
2
4
1


1,776 2,464 2,862 2,302 6,525 3, 205 2,065 6, 695 2, 961 5, 728 1, 112


30 37,695


8

8
8 11
9
8
9 10
9
9 10


9, 217 9, 558 8, 256 8,381 12, 686 10,220 8, 066 9, 360 11,486 0,687 9, 084 13, 383


108 119,384 71 55,996 449


STEAM VESSELS CLEARED


October, 1923---.-. November ---.-. .December. January, 1924 --.-. February-- --March. .
April. May--. .
June ---.
July--.
August. September .TOTAL .------.


45,918 36,671 47, 336 32, 969 25, 937 33, 508 31, 666 33, 198 28, 352 28, 272
30,020 29,939


10, 787 1, 396 7,726 2, 616
4, 469 10, 861 4, 875 1,577 6, 176
6, 352


131 403,7861 26 63,192 -


5 4,223
4 2,178
5 3,607
5 16,076 3 2,329
7 12,927 4 2,557
7 3,182
6 3,133
11 4,185
13 5,709
12 4,710


64, 816


2
2
3
2
5
2
2
4
2
4
1


1, 776 3,914 2, 862 2,302 6, 525 3, 205 2, 065 3, 881 2, 961 5,728
1, 112


8 9,217
8 8,856
10 9,787
9 9,358
11 12,686 9 10,220 8 8,066
9 9,363
10 11,486 9 9,687
9 9,084
10 13,383


29 38,331 110 121,193


ALL OTHER


TOTAL


Tonnage


2, 444 6,201 6,956 4, 501 5, 605 2,501 2, 583 3, 605 5, 045 5, 408 5,344 5,803


Number


36 40 39 36
34 36
31 35 40 39 41 42


Tonnage


69, 884 64,493
69, 581 67, 813
55, 046 76, 543 52, 972 51,320 60, 887 57, 106 56, 631 61, 304

743, 580


6
7
7
5
8
2
5
6
7
6
6
6


2, 444 5, 989 7, 168 4, 501 5, 309 2,501 2, 583 3, 605 4,956 5, 497 5,344 5, 591


39
35
43 36 34 36
31 36 38 39
41 41


72, 589 56, 866 79, 538 68, 382 53, 032 76, 542 52,952 52, 990 59, 984 56,954 55, 885 61,092

746, 806


71 55,488


I--_


STEAM VESSELS CLEARED


' ~


I


I


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

..







Data similar to that for steam vessels is presented for sailing vessels in Table No. 10. As was to be expected the tonnage was only a fraction as large as that of steam tonnage, and, indeed, it is somewhat surprising that sailing vessels under foreign flags constituted almost five-sixths of the sailing tonnage touching Haiti. Again the United States occupied first rank with about one-third of the total. Sailing vessels ushd in international commerce with Haiti are very largely employed'in transporting lumber and similar commodities.
The value of imports into Haiti, differentiated in accordance with the nationality of the vessel carrying such imports, is set forth in Table No. 11, and similar figures for exports are shown in Table No. 12. The only feature of special importance in connection with imports was the relatively large value of American, British, and German merchandise which was transported by Dutch vessels. As for exports, both Dutch, American, and British vessels participated in the business of transporting Haitian merchandise to France in a larger measure than might have been expected.

TABLE NO. 10

NET TONNAGE OF SAILING VESSELS IN FOREIGN COMMERCE ENTERED AND CLEARED BY REGISTRY AND MONTHS FISCAL YEAR 1923-24
SAILING VESSELS ENTERED

AMERICAN BRITISH HAITIAN ALL OTHER TOTAL

Num- Ton- Num- Ton- Num- Ton- Num- Ton- Num- Tonber nage ber nage ber nage ber nage ber nage

October, 1923---------. -------. --. 3 2,089 12 567 2 118 1 965 18 3, 739
November. ------------------ 4 2,766 12 399 8 329 2 322 26 3,816
December--------------------.-- 2 796 8 913 11 505 3 1,134 24 3,348
January, 1924 .----------------- 1 484 7 831 8 377 1 151 17 1, 843
February -----------------------------------6 154 8 473 --.----. 14 627
March.---------. ---------. ----- 2 1,206 5 225 12 625 4 1,589 23 3,645
April.-------------------------- 2 1,201 6 288 2 101 2 304 12 1, 894
May.-------------------------- 2 864 4 288 5 384 2 1,121 13 2, 657
June --.--.----. .------------------ 1 576 6 170 18 941 2 3,045 27 4, 732
July-._. 1 632 3 177 13 586 2 112 19 1,507
August.-----------------------. 5 411 16 865 3 251 24 1,527
September -------------. -------- 1 634 6 51 10 536 3 235 20 1, 456
TOTAL. 19 11, 248 80 4, 474 113 5, 840 25 9,229 237 30,791

SAILING VESSELS CLEARED

October, 1923---.-----------.---. 1 807 15 506 3 151 1 851 20 2,315
November ----------. --------- 4 2,759 13 541 11 479 1 84 29 3, 863
December. --------------------- 4 2,269 8 199 12 532 3 430 27 3, 430
January, 1924.---.-------------. 2 882 2 264 7 334 2 1,093 13 2,573
February .----------------------------------4 420 11 638 .--------------15 1, 058
March ---------------------- 2 1, 206 6 268 6 270 2 304 16 2, 048
April.-------------------------- 1 515 7 296 2 165 3 1,503 13 2,479
May.--------------------------2 1,122 4 251 12 696 1 85 19 2,154
June--------------------------1 349 3 205 16 905 2 3,023 22 4,482
July. .--------------------------. 2 1,320 4 248 16 806 2 1,138 24 3,512
August ._------------------------. 5 409 17 808 3 251 25 1, 468
September--.------------------ 1 634 5 51 8 449 3 235 17 1, 369
TOTAL. -----------------20 11,863 76 3,658 121 6,233 23 8, 997 240 30, 751

..










TABLE NO. 11 VALUE OF IMPORTS, BY REGISTRY OF CARRYING VESSELS FISCAL YEAR 1923-24


Austria .---------------------.
Bahama Islands.-----.----.---Belgium----------.---------Canada .-------------------Canal Zone ---.--.---------.
China Cuba .---------------------Curacao .-----------------------Czechoslovakia Denmark--- .-------------Dominican Republic ---Egypt.--------------------France------------------------aGermany
Greece.-------------------Guadeloupe .-. iawaiian Islands .------------Italy.---------------------Jamaica .-----------------Madeira Islands .-----.-------Martinique.-----------------Mexlico.--------------------.Netherlands .
Norway.--------------------.
Palestine.------------------Porto Rico-----.-------.----Portugal.-------------------Spain. Sweden .--------------------Switzerland .----------------Syria United Kingdom .-------------United States. . Virgin Islands .

TOTAL.-- .-------------


MERCHANT MERCHANERCHAN/ DISE SUBDISE FREE E IAITIAN AMERICAN
IECT TO
OF DUTY DUTY


Gourdes Gourdes Gourdes Gourdes
95 5
.-- 15, 205 680 480
475 11,530 2,450
55 315 901
13,340 46,145 _. 58,945
130 90
10, 305 13,635 2,735 90
9,440 199, 685 .---------. ----- 5,015 -- --- 680
2,800 314,615 --. 18,085
650, 360 125, 995 4,000 1,250
295 . .
16-- 8,735 4,257,405 .---------. 240,790
13, 360 2, 226, 635 .--------- 17, 535 45 ----------------.
300 10-------------------- 20,040 20, (O
331,740 161, 825
725 46,440 -------- 1,650
---------- 1,515 ----------- 20 ------ ------.20--. 75 75

5, 515 775, 030 --.-. 12, 235
-------- 25 10----- --------------------- 17,125 100
10 .--.--.------ .
------ 34,145 -. 45
160 --------- ----------125 23,310 1,445
45------------------389,015 4,533,985 --------- 1,624,735 4,377, 860 54, 709,020 --------- 35,121, 375 7,070 121,710 .

5, 649, 480 67, 831,160 7, 415 37, 374, 460


BRITISH FRENCH



Gourdes Gourdes
-. -- -- 35
14, 045 .
.- 4,850
----. 275

---- -. .7 40
1,725 17, 620 9,600 -----------


30,545
13, 925



36, 900


32,645
215
3, 754, 520
4, 430
45 10

6,350
25
- ----


--------- ---- --- -3,895 155
25
10
- - 3,310
160
18, 365
45
556,335 56,940
89,445 55


GERMAN



Gourdes


3,515
540


20,875
92, 780 7,845 15
624, 750


35.30

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


---------.


206,765
89,015 38,600


NORWE- DUTCH
GIAN



Gourdes Gourdes
55

95
5


970 50
128,040
. 4,335
116,495 67,365
75
400, 270
1, 579, 355
----------- ------------


125
------------------


---------161, 500
4, 935 1,515
----------764, 280
10


-------.--- ---- ---_.3, 625
.- -- --'-v ----.
2,478, 225
3,485,935 19,369, 385
- - - --_- - -


758, 015 3,900200 1,08, 00 1,088,230 3,437, 030 25, 109, 945 104, 715 1 1, 650, 630


ALL
OTHER



Gourdes Gourdes
------ ----------1,095
. ---.
------------ ------ ----------:::::::::. 750
. 50, 610

--1--40----- --

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






-.---- 17,025

- :::-- ------------------ 46

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


TOTAL VALUE OF MERCHANDISE



Gourdes %
95
15,205 0.02 12,005 .02
370 .
59,485 .08
130 .
23, 940 .03 209, 125 .28
5,015 .01
317,415 .43
776,355 1.06
295
4, 426,140 6.02 2, 239, 995 3.05 45 -
310 -
20,040 .03
331,740 .45
47, 165 .07 1,515 .
20.
75 --780, 545 1. 06
10 -.
25 02
17,125 .02
10.
34,145 .05
160 .
23,435 .03
45
4,923,000 -6.70 59, 086, 880 80. 41
128,780 .18

73, 480, 640 100.00


~I ---i : 1


I


---------- .- . :-- ----

..






TABLE NO. 12 VALUE OF EXPORTS, BY REGISTRY OF CARRYING VESSELS FISCAL YEAR 1923-24


HAITIAN

--I
Gourdes
Bahama Islands 5, 670
Barbados. Belgium. Canada .
Canal Zone-. Colombia. Cuba. Curacao. Denmark Dominican Republic. France. Germany. Italy Jamaica Japan. Martinique. Netherlands. . Norway . Porto Rico. Spain. . Sweden . Switzerland. .
United Kingdom .
United States. .

TOTAL. 5,670


AMERICAN


Gourdes


1,476, 335
165, 020 23, 945 2, 300 63, 645

686, 945

11, 498, 545
84, 385
849,620
6,900
25
1,000
118, 290 126, 950 .i-.-117, 485 13, 125

467, 650
4, 815, 670


BRITISH


Gourdes
8,575
253, 475 120, 970


100 180
155, 995
-------------9, 827, 960
2, 985 26,855


16,190 .
.


FRENCH


Gourdes


105,055
-------------16, 180

1,000
12, 110, 695
2, 750 8, 950




27, 875


988,010 16,110
. 200


20, 518, 185 11,401,295 12,288,815


GERMAN NORWE-


Gourdes


88,640




1,978, 765

15, 040 2,815, 055 26, 190



32,545
----.-.-------.---------


Gourdes


Gourdes


755, 875
90, 580


24, 325 3, 280
1, 408, 120
225
13, 221, 455
331, 065 479, 195
.--------755

957, 715
8, 515
---.----------


DANISH


Gourdes



--. .
_ _.




5, 765

160, 365
-.--.-.
.
_ _.
---.
.
----_----


ALL
OTHER


Gourdes





78, 235


35,935 12, 555 26, 600 77, 000




16, 00oo


TOTAL VALUE O M MERCHANDISE


Gourdes
14, 245
253, 475 2, 546, 875
255, 600 23, 945 2,300
182, 485
3,460 4, 235, 590 37,160
46, 849, 615 3, 263, 440 1, 467, 810
6, 900
830
1,000
1,124,740
135, 465 44, 535 117 485


Per cent
0. 02 36 3. 59 36 .03

26

5. 98 .05
66. 10 4.60 2.07
.01

1.59 .19
.06
17


------------ I ----- I: -- -- --I -----. ------.-.- - 13,125 .02
- _'41,780 ~ .---------- ---- --- 41,780 .06
1,420545 720880 3,613,495 5.10
. 75,880 1,754,505 .---------- .------- 6, 646, 255 9.38

6,376,780 75,880 19,801,870 166,130 246,985" 70,881,610 100.00

..










TABLE NO. 13

VALUE OF IMPORTS, BY MONTHS AND PORTS OF ENTRY

FISCAL YEAR 1923-24, COMPARED WITH 1922-23


Aquin.
Belladre Cape IIaitian Cayes. Fort Libert6 .-. Gonaives. Glore Jacmel .
J6r6mie Miragoane. Ouanaminthe Petit Goave. Port an Prince. Port de Paix. Saint Marc .

TOTAL, 1923-24 .
TOTAL, 1922-23 -. Increase, 1923-24. Decrease, 1923-24 .


OCTO- NoVEM
BER E
HER


Gourdes Gourdes
19,830 34,415
85 200
910, 585 826,200 1, 015, 235 1, 177, 345
110 160
499, 360 429,100 85 1,805
691,915 854,330 145, 905 169,155 91,825 156,025 37, 850 65, 540 166,315 142,615 4, 703, 745 4, 694, 255 183,450 134,070 333,930 249,770

8, 806, 205 8, 934,985 6, 817, 535 6, 292, 705 1, 988, 670 2,642, 280


DE- JANUCEM- AY
BER


Gourdes Gourdes
35, 035 34, 360
160 165
906, 68 1,075, 085 1, 06, 435 594, 725
15 100
355, 94 404, 665 11, 140
524, 89 426, 020 211,25 113,465 134, 13 72, 440 68,085 44,920 258, 88 133, 035 3, 983, 680 3,030, 605 239, 285 229,990 353,405 257,480

8, 131, 885 6, 428, 255 5, 756, 245 4, 577, 595 2, 375,640 1, 850, 660


FEBRUARY


Gourdes
14, 265
8C
487, 50, 321, 22, 70
239, 005 325
252, 09 69, 635 40, 705 48, 625 75, 520 2,303, 62C 112, 660 204,895

4, 170, 135 5,649, 505

1, 479, 376


MARCH APRIL



Gourdes Gourdes
36,940 32, 325
120 1151
5410, 980 461,780 412,730 563, 99 145
261,775 279,176 940 16, 025 293,405 389, 750 69,180 133, 535 41, 650 71,360 33,520 315
127,865 197, 475 3, 103, 380 2, 464, 215 105,490 149, 710 318, 815 239, 740

5,346,790 4,999, 650 5, 980, 220 7, 077, 620

633, 430 2,077,970


MAY



Gourdes
32, 630
210
539, 670 720, 620 30
190, 640 21,865 204; 495 131,725 71,890 59, 580
113, 200 3, 159, 335 119, 730 158, 660

5, 52, 280
5,710,800

186, 520


JUNE


Gourdes
575 285
475, 625 762, 54C 30
160, 370 28, 850 185, 870 120. 760 40, 136 66,445 98,376 2, 874, 005
82, 470 158, 995


JULY


AUGUST


1923-24


1922-23 CRESE


I -1-- --i- 1


Gourdes
19, 610
520
316, 840 486, 260 2101
111, 890 8, 055 117, 825
31,545 52, 495 60, 520 70,840
2,565, 510
59, 360 148, 3651


Gourdes
12, 535
85
361, 225
584, 245 10
181,350 7, 716
189, 176 80, 575 81, 775 43, 016 123, 326 2, 829, 165 138,160 490, 270


Gourdes
17,290
60
728, 165 795, 435
173, 585 2,305
403,610 85, 985 76, 065
17, 130 141,560 4, 186, 875 100, 620 182, 000


Gourdes
289, 810
2,065
7, 630, 340 8, 494, 785
880
3, 286, 855
99, 110 4, 533, 280 1,362, 720
930,490 545, 540 1,648, 995 39,904, 450 1,654,995 3, 096, 325


Gourdes
46,005
605
7, 600, 360 6, 447, 030
1,085 3, 416, 765
57, 915 4, 465, 095 1, 177, 630 1, 029, 310
507, 940 1,465, 705 40, 611,930
1,548, 620 2, 413, 820


Gourdes
243, 80
1,46(
29, 98( 2,047, 751


41, 195 68,181 185, 09(

37, 60( 183,29(

106, 371 682, 50,


5, 055, 320 4, 049, 841 5, 122, 60t 6, 910, 685 73, 480, 040 1, 824,66 4, 465, 83 654, 654 982, 49 .70 789,815 230, 65 .-----------------. 2, 690, 825 3,627, 240
. 415, 98 1, 531, 99 71,81 .


DECREASE


Gourdes



205
129,910 98,820 707,480





936, 415


- - - -I- - -

..





FOREIGN COMMERCE BY MONTHS AND BY PORTS

Experience has proved that commerce in Haiti is not evenly distributed over each month of the fiscal year, but evidences a rather well defined periodicity, For imports, the months from October to January, inclusive; show special activity, the explanation being that merchandise is imported in anticipation of purchasing power which will be*in the hands of the peasants following the marketing of the coffee crop. 'The year ending September 30, 1924, was in conformity with the general rule, trade being very active in the first three months and also in the final month, namely, September. As stated previously, there was some overstocking of merchandise in the last few months of 1923 as borne out by the statistics of imports for those months. Therefore, there was more than a normal decline in imports, with a consequent reduction of surplus stocks, until the month of September showed renewed activity in anticipation of unusually favorable prospects for the coffee season of 1924-25. Details of the import commerce of Haiti by months and by ports are shown in Table No. 13.
Export commerce was even more subject to seasonal fluctuations, as demonstrated in Table No. 14. Activity ordinarily reaches its height from November to February, inclusive. During the fiscal year just closed, March had the highest value of exports for any month of the year. From that date, however, exportation had
more than its customary rapid decline until in August the total value was only Gds. 1,442,000, as compared with Gds. 10,754,000 in March. Probably the true explanation of the unusual monthly fluctuations in export values exhibited in 1923-24 is the increasing importance of cotton as an export commodity, since this product is ordinarily handled somewhat later than the coffee crop. Accordingly it may be expected that if cotton and sugar continue to increase their relative importance as compared with coffee, seasonal fluctuations will be somewhat diminished, and also the active months of the export year will tend to continue somewhat later than formerly.
COMMODITIES IMPORTED
Although total values of imports and exports are of significance in analyzing the commerce of a country, it is the values and quantities of specific commodities which are of first importance to individual importers and exporters. For this reason there have been prepared tables which trace the history of each of the important imports and exports of Haiti since the inauguration of the receivership. The figures for the principal classes of imports are presented in Tables No. 15 and No. 16.

..








TABLE NO. 14

VALUE OF EXPORTS, BY MONTHS AND PORTS OF SHIPMENT

FISCAL YEAR 1923-24 COMPARED WITH 1922-23


OCTO- NOVEMBER BER


Gourdes Gourdes
Aquin .---- 40,765 152,845
Belladire-------------- -------Cape Haitian --------- 271,735 1,125,950 Cayes.--------------- 579,695 1,059,075
Fort Liberte. Glore .----------------. 35 2,755
Gonaives. -------------159,995 681,485
Jacmel.--------------- 604,930 1,010,765
Jrrnie.--------------. 27,050 249,735
Miragoane.---------. 202,2!0 300,150
Ouanaminthe. --------1,250 785 Petit Goave .---- 764, 1,081,105 Port au Prince.-.- 3,000, 455 1,226, 255 Port de Paix -. 187, 240 552,0625 Saint Marc .- 147,845 257,000

TOTAL 1923-24 -. 5,987,725 700, 53( TOTAL 1922-23 4. 597, 020 7,333, 885 Increase.--------.1, 30, 705 366, 645 Decrease.


DECEM- JANUARY DER I


Gourdes
186, 970
--------940,630
931,110
--------80
817, 780 1,152, 910 216,110 377,935
1,455 1,397, 180 1,733, 230 734, 615 267,640


Gourdes
206, 785

921, 925 1,037,230

780
838, 955 1,286, 005 385,195
179, 410 750
1,153,790 1,519. 420 623,145 170, 115


8, 757, 6458, 383, 505 10, 584, 64017, 260, 270 S1: 123, 235 1,826, 99.


FEBRU- MARCH ARY


Gourdes
143, 410
--------938, 210 761,700 .---
545
893, 555 1,502, 445
252, 265 271,530
160
1,042, 090 1, 900, 730
410,755 891, 405


Gourdes
342, 490
--------561, 650 1,347,700
---------1, 380 1,276,015 1,095, 580
113,525 150,4658
1,210 1,011, 295 2, 783, 035
397,920 1,672, 350


APRIL MI MAY


Gourdes 163, 320

494, 860 653, 910

2, 260 696, 390
585, 40 175, 415 53,070
1,725 629, 730 1, 704, 640 353, 685 1,053, 335


9, 008, 800 10, 754, 615, 567, 830 10, 463, 510 10, 801, 150 746, 810 1, 454, 710 46, 535 178, 980


Gourdes
90,455
------361,215 385,515

2, 230 591,880 585, 370 224, 265 69, 575 1,385 557,860 1, 321,750 131,500 911,590


JUNE


Gourdes
111,705

151, 675 246, 26

2,915 235,490 293,52 72, 675 11, 735 1,355
203, 865 915, 005 230, 275 722, 910


JULY


Gourdes
17, 865

275, 910 35,360

1,750 45, 725 119,135 70, 655 18, 700 1,705 30, 315 506, 555 87, 780
289, 770


AUGU SEPTEMAUousT IER


Gourdes Gourdes
--------- --- -----183,225 726, 305 14.345 197,430
------- -------2,010 640
8,555 202, 875 59,890 130,410 133,575 383,040 29,840 49,995 1,000 1,150
.----. 79,205
648,735 204, 265 37,1051 280 02C 324, 560 87, 455


5, 234, 590 3,199, 39511, 501, 225 1, 442, 960 2,342,790 4, 540, 185 4, 412, 74512,549, 000 1, 4, 590 198,255 694,405 --------- ---- --- 144,535
------- i, 213. 350 1,047,775 2 4, 630.
I~ i Ii


1923-24 1922-23


Gourdes Gourdes
1,516,610 1,214,755
----- 235
6,953, 2901 8, 30, 835 7,249,335 6,485,915
-- 302, 505
17,740 22 255 6,448,700 5,860, 960 8,42, 455 9, 172,710 2, 303,505 1,604,425 1,714,615 1,993,345
14, 020 5, 350 7,950, 625 9,421,125 17, 464, 075 18, 609, 045 4, 026, 665 3, 464, 500 6, 795, 975 6, 437, 100

70, 881,6101 -------. 72, 955,060
I
2,073,450 - ---


IN
CREASE Gourdes
301, 855 763,420 587,740 699,080 8, 670 562, 165
358,875


3,281,805


DE
CREASE


Gourdes

235
1,407,545 302, 505 4, 515 746, 255 278,730 1, 470, 500 1, 144, 970





5, 355, 255

..


















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

TOTAL-----.-----


TABLE NO. 15

VALUE OF IMPORTS. BY COMMODITIES

FISCAL YEARS 1916-17 TO 1923-24


1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 i 1923-21 TOTAL


Gourdes
233. 825 444, 800 1,060, 390

2, 501,915 4,217,865 1,055,185
341, 275 4,588,545
605, 825
544,020 759, 205 838, 070

137,435 718, 180
21, 440 2, 471,315 13, 322, 695 i. i45, 945 8, 021, 900


Gourdes
356, 335 267, 810 2, 489, 080

1,794, 440
899, 140
1,492,390
354,950
3, 930, 730 4,224, 060
796,335 1,029, 800
711, 920

192, 460 1,046, 715
175, 625 4, 634,180 15, 646, 850 1, 279, 120 9, 581,525


Gourdes
412,730 535, 315 2, 311,885

2,287,290 13, 543, 870
959, 260 6, 191.700 6, 840, 915 3, 656,140
474, 80
930. 310 646, 065

341,560 1, 416, 795 231, 220 4,198, 900 23, 949,075 1,909,420 14, 750, 710


Gourdes
749, 165
1, 183, 830 4, 162, 480

3, 236, 650 25, 452, 250 1,230,870 1,340, 580 11, 775, 850 4, 787, 525 1,450, 880 1, 708, 285 2, 525, 535

692, 395 1,303, 340 277, 145
4, 864, 620 45, 100, 185 2, 685, 450 22, 485,020


Gourdes
516, 725 789, 845 549, 400

2, 083, 160 9, 243, 390
909, 360 449, 745 5, 586, 745 4,026, 825
633, 860 846, 155
1, 427, 010

408,495 1,058, 450
170, 440 3,077,650 10, 813, 065
40.305 17, 155, 400


Gourdes
203, 505
775, 110 1; 472, 715

2, 910, 150 7, 799, 585
1,160, 460 676, 990 6, 7C0, 770 2,139,475
601, 550 909, 365 1, 255, 080

442, 255 970,3955 165, 725 3,195,070 16, 878, 230 1,765, 430 11,649, 495


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

2, 588, 225
11,253, 000 1,298,145
969,835 6, 482, 060 2, 676, 445 757, 420. 1, 338; 780 1,251,195

700, 765 783, 315 223, 700 2,971,060 22, 695, 455 1,586, 585 9, 851,455


Gourdes
314, 755 808, 170
1,457, 125
2, 029, 515 14, 652, 430 1-317, 350
1,320,185 4, 345, 220 2, 775, 285 618, 515 1, 261, 340
1,325,700

692, 605 852, 280 237, 720 2, 787, 52 20, 985, 675 1, 407, 290 14, 291,960


43,030,430 50,903,465 85, 588.040 136,992,053 59,786,025 61,751,355 70, 789,815 73,480,640


Gourdes
3. 270, 715 5, 569,995 15, 696, 660

19, 431, 345 87,061, 530 9, 423, 020 11, 645, 260 50, 250, 835 24, 891,580 5,878,060
8, 783, 240
9, 980, 575 t,

3, 607, 970 8, 149, 470 1, 503, 015
28, 200, 315 169, 391, 230 11, 819, 545 107, 767, 465

582, 321,825

..









TABLE NO. 16

QUANTITY OF IMPORTS. BY COMMODITIES

FISCAL YEAR 1916-17 To 1923-24


Cement __ _Foodstuffs:
Fish -. _. .
Wheat flour._. _.
Meats.
Rice .-.
Lumber .-. Liquors and beverages-----. Oils, mineral:
Gasoline--------------. .
Kerosene-----.
Soap .-. . . . . .
Textiles.--------------------.
Tobacco.


UNIT


Kilo -.
Kilo-----Kilo -.---Kilo. K ilo -------Cubicmeter. Liter------.
Liter----
Liter.-Kilo-----Kilo .


1916-17


2, 138, 500
2, 653, 324 5,917, 580 430, 809 450, 136 7, 09. 02 752, 756
156,030 3, 091, 807 2,802, 800 23, 015, 802
544, 151


1917-18


4, 902, 545
2, 317, 790 1, 058, 899
453,290 297,283
6, 890
552,975
321, 127 3, 401, 486 3,004,456 18, 727, 686
452, 098


1918-19 1919-20


2, 414, 364

1, 580, 695 15, 284, 421
582, 874 1,121,914 6, 714. 02 400,796
441, 720 2, 639, 242 2, 726, 266 23, 993, 601
524, 650


5, 441, 068
2, 231, 683 27, 221, 200
550, 837
825,284 8, 785.07 1,065,022
1,200,971
2, 949, 602 3,256,239 32, 430, 919
961, 364


1920-21


2, 697, 228
2, 049, 719 12, 288,419
482,909 684, 033
4,362.05 660,138

617, 767 2, 391, 708 2,362,139
13, 949, 047
42, 603


1921-22


2, 516, 977
3, 189, 173 14, 874, 210
714, 041 1,263, 508 9,114.04 813,806
837,476 3, 077, 366 2,872,001 26, 674, 986
616, 009


1922-23


4, 870, 319
3, 508, 062 30, 971, 319
879, 974 2, 568,167
14, 764 811,096

1, 781, 588 3, 338, 010 3,666, 687 30,429,726
682, 336


1923-24


5, 006, 576

2, 749, 538
41, 329, 095
895, 465 3, 275, 894 14, 277. 23
1,043, 330
2, 081, 498
3, 454, 020 4,375,339 24, 268,858
659, 126


TOTAL


29, 987, 577
20, 279, 984 148, 945, 143 4, 990, 199 10,486, 289 72,002. 43 6,099,919
7,438,178
24, 343, 241 25,065,927 193, 490, 635 5,889,627 ,


TABLE NO. 16
QUANTITY OF IMPORTS. BY COMMODITIES
FISCAL Y ARS 1916-17 TO 1923--24


I


I i I I

..





The first item, cement, is in a general way indicative of construction activity and shows that in the last two years construction has proceeded at a rapid rate. It is also evident that the price of cement has considerably declined since 1916-17 and is about half that of 1919-20. The next item which shows consistent growth in value is chemical and pharmaceutical products. On the contrary, there is no definite trend in the value of imports of vegetable fibers and manufactures of such fibers.
In no place is the increasing prosperity of the Haitian population so well demonstrated as in the foodstuffs schedules. In practically all of the items substantial increases have occurred during the eightyear period in the quantity of foodstuffs which have been purchased abroad. Pessimists indeed might argue that increasing purchases of foodstuffs merely represent agricultural depression in Haiti, necessitating the importation of food from abroad. Such apostles of despair apparently forget that imported foodstuffs must be paid for, and the very fact of their importation in constantly larger quantities evidences an increasing capacity to pay. The only possibility of demonstrating agricultural depression with the consequent necessity of increasing importations of foodstuffs would be to show that foreign purchases of other commodities, such as the comforts and luxuries of life, were on a declining scale. But exactly the opposite is the case, as the importation not only of foodstuffs but all commodities has shown a definitely upward tendency thus unmistakably indicating expanding purchasing power with a concomitant increase in the wellbeing of the population.
The foregoing principles are most clearly indicated in the imports of wheat flour, meats, and rice. There is a substantial difference between the 5,900,000 kilos of wheat flour imported in 1916-17 and the 41,300,000 kilos imported in 1923-24. Unquestionably the population of Haiti is developing a taste for wheat bread in place of beans, corn, bananas, and sweet potatoes, which formerly constituted the principal diet of the people. It is equally certain that such considerable quantities of wheat flour could not have been purchased unless the average wealth of the people had also considerably expanded. Per capita consumption of meat is by many sociologists regarded as one of the reliable indices of the standard of living of a people. Meat is recognized as an expensive diet, and meat consumption is roughly comparable with the trend in the standard of living. Accordingly, the increase in meat importation of over 100 per cent from 1916 to 1924 is more than usually significant.
For iron and steel and their manufactures there has been a slow increase in values over the past three years. The tonnage of imports of iron and steel can not be given, but as the price of these products has moderately declined it is certain that a much larger quantity is

..





now being received than in previous years. Imports of lumber are as significant as those of cement in indicating building activity. Consequently it is gratifying to note that over the eight-year period importation of lumber has increased by more than 100 per cent. As building activity is also an excellent gauge of prosperity the increased lumber trade is of special importance. In the category of comforts and luxuries should certainly be placed importations of liquors and beverages. It is well known that the production of alcoholic liquors in Haiti is large, and consequently it may be expected that imported liquors would evidence the satisfaction of special tastes, and increasing imports of such products would clearly evidence expanding purchasing power. The volume of imported liquors and beverages has increased from the first year of the eight-year period to the last by almost 50 per cent.
Undoubtedly the most striking increase in the import schedules was that of gasoline, where imports have expanded from 150,000 liters in 1916-17 to 2,081,000 liters in 1923-24. Such a record of course indicates the progress in supplying the Republic with motor transportation. Another commodity which may be classified either as a necessity or a comfort is soap, but certainly it may be stated with confidence that the increasing use of soap is an evidence of advancing civilization. Accordingly satisfaction may be taken in the imports of 4,375,000 kilos of soap in 1923-24 as against 2,802,000 kilos in 1916-17.
There have been wide fluctuations in both the quantity and the value of textiles imported from year to year. The low point in value was 1916-17 with Gds. 13,322,000, and the high point was 1919-20 with Gds. 45,100,000. Quantities have ranged from a low of 13,949,000 lineal meters in 1920-21 to a high of 32,430,000 meters in 1919-20. On the whole there has been a tendency for quantities of imported textiles to increase, and this is merely another evidence in showing the improvement in standards of living.
Fluctuations in the volume of tobacco imported have not been violent though price changes have been considerable. On the whole there has been a tendency toward expansion in volume. The large number of miscellaneous articles which the country requires has also shown a definite upward trend. Therefore a review of Haitian imports over the eight-year period can only be regarded as encouraging, and additional improvement of a substantial character may be expected in the future in the absence of wars or other unforeseen circumstances.
COMMODITIES EXPORTED
One of the industries well adapted to Haiti, as it requires no particular capital nor unusual technical training, is that of bee culture. Nevertheless, instead of showing increasing importance, exports of

..





honey and of beeswax have shown a rapid decline, and the volume exported in 1923-24 was the smallest for any year of the eight-year period. Instead of exports of honey which reached a value of Gds. 1,313,000 in 1918-19, the value in 1923-24 was only Gds. 148,000. It is believed that proper attention might restore the honey industry to its former importance.
Another export industry-which has been particularly depressed is that of cacao. However,-in this case the decline in value has far outrun the decline in quantity, and consequently depression can be imputed to world depression in the cacao industry. Nevertheless, it is disappointing to compare .the value of cacao exports of Gds. 696,000 in 1923-24 with the value of Gds. 3,801,000 in 1918-19 and with Gds. 2,893,000 in the-first year of American intervention. Yet until the world price of cacao has substantially advanced there is little possibility of increased activity in the Haitian cacao trade, as this trade constitutes but a negligible factor in the cacao situation, and probably cacao can not be grown as advantageously in Haiti as in other producing countries.
Throughout the period under review coffee has contributed approximately 70 per cent of the total value of Haitian exports. And this proportion gives no indication of declining during the later years of the period. These facts in themselves are sufficient to indicate the urgency of diversifying Haitian exports, as an unsatisfactory coffee crop or an unsatisfactory price for coffee has at present a dominating influence on the entire economic situation. Well balanced economy requires that a country should not be dependent upon one industry, so that disaster to that industry can demoralize its entire commercial life. On the whole, the volume of coffee exported has remained reasonably constant, but there have been wide fluctuations in the price. The average of coffee exports over the eight-year period was approximately 30,000,000 kilos, reaching a maximum of 48,889,000 kilos in 1918-19, and a minimum of 21,617,000 kilos in 1917-18. The latter figure is explained by the scarcity of shipping in that year. For 1923-24 coffee exports totaled 29,402,000 kilos or was, accordingly, practically a normal crop in spite of many statements to the effect that the crop was seriously deficient. Moreover, the price per kilo in 1928-24 was considerably above the average, being Gds. 1.78 as against the average of Gds. 1.58. This fact is also somewhat disconcerting to those who have complained of especially low prices for coffee in the fiscal year just ended.
43915--25t----3

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Beeswax Cacao. Coffee. Cotton, raw-. Cottonseed.-------------------------------.
HIoney .
Lignum-vit-----.----.
Logwood -------------- ---------Logwood extract Skins. Sugar .
Turtle shells. All other exports--.---.--.-------------------- .
TOTAL.


TABLE NO. 17

VALUE OF EXPORTS, BY COMMODITIES

FIscAL YEARS 1916-17 TO 1923-24


1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 TOTAL


Gourdes
117,515
2,893,135 30,043, 810 1, 803, 275
423,225 965, 165 621,320
3, 820, 695
775,315
1,625, 520

8, 445i
1, 567, 010


Gourdes
54,905
2, 656, 400 21,617, 905 3, 479, 205
136,600
879,165 203,985
2, 001, 390
-------------874, 780
325
3, 440
6,809,550


Gourdes
88,175 3,801,090 96,813, 545 9,370, 550
448,895 1,313,135 386, 410 3,758, 550
62,865 2, 736, 440 2, 560, 140 109,565 2,361, 735


Gourdes
25,155
3,542,450 65, 156, 410
11, 544, 840
674,685 663, 685 630,845 16,824, 060
131,230 1,863,000 4, 507,050
145, 155 2,396,075


Gourdes
14,225 741,530
21,365,125 1, 781, 535
460, 025 149, 315 340, 520 4,320,700

413,710
2,317,365
39, 140
1,008,855


Gourdes
4,885 1,370,620 37,436, 560 7, 073, 035
584, 860 310,380 131, 285 2,266,780
267,985 325, 625
2, 687, 375
66, 550 1,035,110


44,664, 430 38,717,650 123,811,095 108,104,640 32, 952, 045 53,561, 050


Gourdes
2,435 1,326, 740 54,321,045 9,140, 510
985,035 225,985 438,310
2,493, 310
389,730
370, 410 2,418,395
50, 595 792, 560


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


S72,955,060 70,881,610


Gourdes
311,700 17,028, 730 378, 563,280 54, 536, 090
4,726,225 4, 655, 105 2, 842, 855 37,160,815 2,155,145 8,722,840 17, 592,710 557, 410
16,794,675 t'
545, 647, 580


''


I ' '

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29

It is in the schedule of raw cotton and cottonseed, that one of the best showings for exports is made. As against exports of raw cotton of 1,332,000 kilos in 1916-17 there were 3,323,000 kilos exported in 1923-24, an increase of considerably over 100 per cent. An even greater increase occurred in the value of the products, this being Gds. 1,803,000 in 1916-17 as against Gds. 10,343,000 in 1923-24. A similarly favorable showing:applies to exports of cottonseed, in spite of the fact that local utilization of cottonseed for the preparation of lard substitutes has materially increased. For the year 1923-24 the tonnage of raw cotton exported was almost identical with that of the previous year, but the value increased by Gds. 1,200,000. There is little question but that exports of raw cotton may be expected to increase in the future, provided that .various cotton pests can be kept under control. The physical and climatic conditions of Haiti appear to be well adapted to cotton culture, and the yields per hectare compare very favorably with those of the best cotton producing districts of the world.
Another industry to show rapid decline in importance was that of lignum-vitem. As against exports of 7,642,000 kilos in 1916-17 with a value of Gds. 621,000, the corresponding figures for 1923-24 were 2,254,000 kilos with a value of Gds. 90,000. As the supplies of lignum-vite are gradually being depleted without any attempt at reforestation it must be expected that further decline in the importance of this industry will occur. Similar reasoning may also be applied to the logwood and logwood extract industries, which have in former times occupied positions of considerable importance in the list of Haitian exports. The peak in the exportation of logwood was reached in 1919-20 when a tonnage of 129,666,000 kilos was shipped having a value of Gds. 16,824,000. With such figures the exports of 21,563,000 kilos in 1923-24 with a value of Gds. 1,675,000 make but a sorry showing. As a matter of fact, both volume and value in the fiscal year just closed were by far the smallest in any one of the eight years under review. Logwood extract showed some activity, but both the logwood and logwood extract industries are not believed to be among those with a bright future in Haiti. In the first place, logwood trees are being cut without corresponding reforestation, and in the second place it is possible that development in chemical technique may at any time replace logwood extract by an equally satisfactory chemical product in the industries in which the natural product is at present required.

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TABLE NO. 18

QUANTITY OF EXPORTS, BY COMMODITIES

FIscAL YEARS 1916-17 TO 1923-24


leeswax .Cacao.-.
Collee. Cotton, raw . Cottonseed. .
Honey Lignum-vitae. Logwood .
Logwood extract. Skins.------------------------------------Sugar Turtle shells --.-----------------------------


1910-17


Kilos 29,963
1, 905,134 22,705, 009 1, 232, 502 1,826, 694 862,009 7, 632, 335
45, 611,461
193,095 348,159

476


1917-18


Kilos
17,164 2,162, 601
19,151,342 1, 563, 351 1,156, 910 776, 216 1,963,455 24, 958, 773

200, 405
236
116


1918-19 1919-20


Kilos Kilos
27,417 7,585
2,395,479 2,178, 429 48,889,215 33,429,063 4, 406, 067 3, 287, 687 2, 622, 446 2, 874, 769
916, 926 668,265
2, 873, 425 5, 004,351 37, 884, 038 129, 566, 275
135, 859 263, 733
466,027 281,220
4, 134, 495 3, 437, 117
5,971 837


1920-21


Kilos
13. 766 1,152,959 22,367, 077 1,951,847 3, 923, 232
435,990 2, 710, 364 36, 426, 625

121, 524 5,145,136
777


1921-22


Kilos
2, 698 2,152,145 28,599,337 4, 193, 575 8,111,376
707, 611 2, 027, 384 29, 350, C04
626, 852 103,865
10,826,843
749


1922-23 1923-24


Kilos Kilos
1,500 1,462
2,019,847 1,647,029
35, 848,208 29, 402, 200 3,361,709 3,323,389
5, 826, 236 5, 842, 327
455,097 308,048
5,210,157 2,254,632
34, 278, 658 21, 563, 005 1,084, 471 778, 777
135, 632 155, 754
4, 656,967 6, 242, 781
1,274 1, 972


TOTAL


Kilos
101, 555 15, 613, 713 240, 391, 451 23, 320, 127 32, 183, 990
5,130,162 29, 676,103 359, 639,439 3, 082,787 1, 812,586 34, 543, 575
12, 172


---


I


i I


_ j I- -


--

..





During the war years there was an active demand for skins at high prices, with the result that exportation of skins was very heavy in that period. Since the close of the war the leather industry has been depressed to a notable degree, and exports of skins from Haiti have suffered accordingly. However, there has been gradual improvement in both quantities.and value during each of the last three years and it is hoped that further progress may occur in the future.
One of the most hopeful aspects.of the export situation is in connection with sugar. As compared with no shipment of this product in 1916-17, there were exported in 1923-24, 6,243,000 kilos with a value of Gds. 3,102,000. This was with one exception the largest quantity of sugar, which Haiti has ever shipped, though in the abnormal year 1919-20 a quantity only about one-half as great was sold for a considerably higher price than that obtained for the 1923-24 shipments. All of the information at hand indicates that the sugar industry is rapidly becoming established upon a solid basis in Haiti, and bids fair ultimately to rival cotton in importance.
For the period as a whole an analysis of the export statistics should result in neither undue gratification nor special discouragement. The last two years of the period have been naturally more favorable than the years 1920-21 and 1921-22, and they have also far exceeded in export activity the first two years of the period. Furthermore, there has been the consistent development of two important staple industries, sugar and cotton, as contrasted with the decline of what must be regarded as less important industries from the point of view of world commerce, namely, honey, cacao and logwood. If further development takes place in sugar and cotton and if additional staple industries are developed, so as to minimize the present dangerous predominance of coffee, Haiti can face with confidence its future as a competitor in the export markets of the world.
As in former years, the details for all imports and exports, showing countries of origin for imports and countries of destination for exports, are presented, and such details are found in Schedules No. 1 and No. 2. However, it has been thought desirable to work out some additional statistics in connection with exports. This is practicable, as by far the major part of all Haitian exports are confined within a narrow range of commodities. Table No. 19 shows the five principal exports, both as to quantity and as to value, according to the port of embarkation. It develops that Port au Prince is the principal point of exit for coffee, that Petit Goave is second in importance, Jacmel third, Cayes fourth, Cape Haitian fifth, Gonaives sixth, and Port de Paix seventh. For cotton St. Marc stands first with Port au Prince second, Gonaives third, and Jacmel fourth, whereas the other ports are of minor importance. St. Marc is also first in its exports of logwood, its trade in this product being three

..




times as large as its nearest competitor. Second in importance is Miragoane; Port de Paix is third and Aquin fourth. Port au Prince absolutely monopolizes the exportation of sugar owing to the situation at that point of the only sugar producing company which attempts to utilize the export market. For cacao J~r6mie is the first port in importance, followed by Port de Paix, Port au Prince, and Cape Haitian.
In order to obtain a clearer perspective of the relative importance of Haitian exports the percentages which each of the important commodities bore to total exports for each year of the eight-year period under review have been computed. These statistics are presented in Table No. 20. As stated in foregoing paragraphs, the significant feature is the dominating position of coffee, with an average of approximately 70 per cent of the value of total exports. The other obvious phenomena are the declining importance of the logwood and cacao industries and the ascending percentages which cotton and sugar constitute of total exports. The relative insignificance of all products aside from the five described in detail is merely another indication of the need for greater diversity in the export products of Haiti.
Another instructive group of statistics shows the seasonal movements of the principal exports. Table No. 21 clearly demonstrates that the bulk of the coffee moves in the first half of the fiscal year, that February, March, April, May, and June are the important months in the exportation of cotton, that the logwood trade is reasonably evenly distributed throughout the year, and that the same is true in the case of cacao. No statement can be made for sugar as this product is either warehoused locally or exported in accordance with the ideas of the management of the sugar company regarding expected prices.

..


















Aquin. Cape Haitian. Cayes. .
Gonaives. Jacmel. Jfr6mie .- Miragoane. Ouanaminthe. Petit Goave. Port au Prince Port de Paix. Saint Marc .

TOTAL, 1923-24.
TOTAL, 1922-23 Increase, 1923-24. Decrease, 1923-24.


YtABLE 146. i6

QUANTITY AND VALUE OF FIVE PRINCIPAL EXPORTS. BY PORTS

FISCAL YEAR 1923-24, COMPARED WITH FISCAL YEAR 1922-23


COFFEE COTTON LOGWOOD SUGAR, RAW CACAO, CRUDE


Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes 805 305- -


580, 697 3, 234, 928 3, 907, 256 2, 645, 395 4, 181, 713
988, 001 793, 867
97
4, 530, 177 6, 186, 839
1, 939, 941 413, 289

29, 402, 200 35, 848, 208

6, 446, 008


1, 016, 790 5, 744, 855 6, 895, 860 4, 701, 360 7, 279, 270 1, 842, 055 1, 383, 925
160
7,907,885
10, 898, 040 3, 419, 240
719, 440

51, 808, 880 54, 321, 045

2, 512,165


88, 253 92, 383 57, 749 433, 628 279, 113 16, 769


762, 391 18, 468 1, 574, 635

3, 323, 389 3, 361, 709

38, 320


262, 040 284, 910 177, 690 1, 358, 950
889, 370 53,195


2, 314, 195
59, 350
4, 943, 440

10, 343, 140 9,140, 510 1, 202, 630


2, 180, 945 1, 163, 335 1, 357, 064 1, 644, 122 97, 900 14,979 2, 808, 408
14, 255

1, 064,113 2, 696, 821 8, 521,063

21, 563, 005 34, 278, 658

12, 715, 653


156,935 84, 870 98, 090 139, 945 7,500
1, 145 236, 405 1, 150

91, 580 206, 985 650, 725

1, 675, 330 2, 493, 310

817, 980


45






6, 242, 736


6, 242, 781 4, 656, 967 1, 585, 814
----.-----..--.-.-.-.--.


S3, 102, 010 .- .


3, 102,060 2, 418, 395
683, 665 . . -- -


805
215, 021

1, 785
-- - ---
757,736
---- --

72, 911 226, 843 371, 928

1, 647,029 2, 019, 847

372, 818


305
85,485

1, 750
-------------335, 050

22,335 72, 895
178,945 W


696,765
1, 326, 740

629,975


- -- -- -- --

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TABLE NO. 20

PERCENTAGE OF VALUE OF EXPORTS, BY COMMODITIES

FISCAL YEARS 1916-17 To 1923-24


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

Per cent Per cent Per cent Per cent Per cent Per cent Per cent Per cent
Coffee .-------------------------------- -----------------------------------------------. 64.00 50.15 76.41 57.97 58.79 69. 90 74. 46 73.09
Cotton.-------------------------------------------------------------------------------- 4.92 10.98 8. 65 12. OS 7.04 13. 21 12. 53 14.59
Logwood ---.---------------------------------------------------------------------------- 8.52 5.08 2.93 14. 98 15.03 4.23 3.42 2.36
Sugar, raw----------------------.------------------------------------------------------------------------- 2.36 4. 73 9.23 5.02 3. 32 4.38
Cacao,crude-----.--------.---------.-- --------------------------------------------------- 15. 78 26.93 6.63 6.99 8.00 5.58 5.14 4.60
Allother. ------------------------------------------------------------------------------ 5.78 26.93 6.63 6.99 8.00 5.58 5.14 4.60


TABLE NO. 21

QUANTITY AND VALUE OF EXPORTS, BY COMMODITIES AND MONTHS

FISCAL YEAR 1923-24


COFFEE COTTON LOGWOOD SUGAR, RAW CACAO, CRUDE ALL OTHER ALL ExKilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes Gourdes Gourdes
October, 1923 2,329,646 3, 712,895 44,707 104,775 1,282,091 117,860 3,191,922 1,866,560 18,153 8,080 177,555 5,987,725
November. 4,400,537 7,090,660 28,200 54,180 3,533,954 324,880 .------------------------. 183, 309 71,330 159, 480 7, 700, 530
December 5,158,196 8,302,775 14,596 32,140 2,514,620 205,445 .------------------------. 191,878 71, 700 145, 585 8, 757, 645
January, 1924 5,039,677 8,154, 90 13, 841 27,025 1,247,807 89,220 7,191 39, 560 72, 800 8, 383, 505
February. 4,119,605 7,689, 760 311,194 1,046,215 156,640 11,200. 256, 062 107, 835 153, 790 9, 008, 800
March 3, 354,671 6,762,685 996,073 3,016,095 1,688,775 120, 750 950, 785 526, 075 136, 998 57, 045 271,965 10,754,615
April. 1,814,857 3,579, 650 794, 733 2,512,695 1,534,074 105,010 104, 515 42, 995 327, 480 6, 567, 830
May. 1,306,577 2,530,855 620,015 2,001,375 1,028,193 68, 265 45 50 213,906 95, 825 538, 220 5, 234, 590
June 544,545 1,041,545 321,978 1,020,680 5,611,153 405, 505 820, 989 281,300 143, 771 68, 225 382,140 3,199, 39.5
July 328, 869 660, 545 89, 756 270, 750 949, 202 72, 715 143, 094 61, 910 435, 305 1,501,225
August 156, 884 335,100 81,100 240, 230 769, 250 58,930 1,279,040 428, 075 112, 668 55, 620 325, 005 1,442, 960
September 848,136 1,947,510 7,196 16,980 1,247,246 95, 550 ----45, 484 16, 640 266, 110 2, 342, 790
TOTAL. 29,402,200 51,808,880 3,323,389 10,343,140 21,563,005 1,675,330 6,242,781 3,102,060 1,647,029 696,765 3,255,435 70,881,610

..




CUSTOMS ADMINISTRATION
Administrative practices underwent a certain amount of revision during the fiscal year. All of the changes were designed to speed up the handling of merchandise by the customs service, to simplify customs formalities and to reduce expenses of operation. For example, a considerable number of forms and reports were suppressed on the ground that they were either of minor utility or that they served no useful purpose a t all. Other forms were simplified, and particularly was this the case in connection with the principal customs return for imports. Because of the present system of numerous surtaxes, the computation of customs revenues in Haiti is at best a discouragingly, complicated procedure; consequently, simplification was particularly necessary. It was also discovered that there was considerable lack of uniformity in the classification and assessment of merchandise at the several ports, and a definite attempt has been made to bring the practices of all ports into conformity with one another and with the law. Another change has been that, so far as possible, all figures for values have been carried in the national currency of Haiti, whereas in prior years both dollars and gourdes were employed in computations, with much resulting
-confusion.
The practice had arisen of permitting preferential delivery of merchandise, more or less as a special favor, with the result that
-customs administration, especially in Port au Prince, could not be carried on in an orderly fashion. Instead, therefore, of expediting delivery the practice really caused delay by interfering with the ;smooth operation of the service. Preferential delivery has been abolished, and there has been very definite improvement in the ability of the customs service to make prompt delivery. To be s-ure, cases sometimes arise in which the absence of documents or the arrival of cargo in a damaged condition or some other unusual feature results in delayed delivery, but every effort has been made to meet the legitimate wish of merchants promptly to receive their goods upon arrival.
STATISTICAL BULLETIN
In the belief that current commercial statistics would be of real value to business men in Haiti and those in other countries concerned with Haitian business, the office of the Financial Adviser-General Receiver decided to present such statistics in the form of a monthly bulletin instead of merely in the form of an annual report. This bulletin had such a cordial reception that its publication apparently met a very real need. At the present time, the foreign commerce of a given month is available to the public about six weeks after the close
-of that month. It may be possible to reduce this period somewhat,
43915-25t-----4

..




but the time and mechanical labor involved in receiving documents from the outlying ports and in making up and consolidating the returns makes it impossible very much to reduce the present period for publication of customs statistics. By a month to month study of the foreign commerce of Haiti it is possible for importers and exporters to formulate definite commercial policies, whereas annual commercial reports are principally valuable as history and have no relation to current business operations.
Though the monthly statistical bulletin was created primarily for the purpose of presenting commercial data, it appeared to be a convenient organ of publicity for. financial data as well, with the result that the receipts and expenditures of the Government, the treasury position, and the condition of the public debt are also prepared each month in a form for publication. Finally, the bulletin was extended in scope so as to include a monthly review of the operations of the other treaty officials in addition to those of the Financial AdviserGeneral Receiver.
TARIFF REVISION
Throughout the period of the receivership defects in the tariff laws have seriously interfered with efficient customs administration. In former years it was the opinion of the General Receiver that thoroughgoing tariff revision could not be undertaken until internal revenues had been considerably expanded. This was because the State depends on customs revenues for more than 90 per cent of its income, and it was not considered judicious to incur the risk of diminution in customs receipts so long as such possible diminution would result in the disorganization of all financial arrangements.
During the present fiscal year, however, it was decided that the task of tariff revision should be initiated, in view of the fact that plans for the establishment of an internal revenue bureau were expected to be realized, and because the large amount of time necessitated for a complete revision of the tariff and of customs procedure would probably present sufficient opportunity to place internal revenues upon a more productive basis before the new tariff could be placed in actual operation.
Another reason of importance for the inauguration of tariff revision was because the present tariff is merely an adaptation of a tariff originally enacted in 1858, and naturally during the interval commercial practices and even the range of commodities themselves have undergone radical transformation. Customs procedure required by law is also at present almost as unsatisfactory as the tariff classifications. Merchants are subjected to unnecessary formalities which merely interfere with the orderly conduct of business, increase expense, and have no bearing upon the protection of the interests of

..




the State. Finally, in view of the pronounced fluctuation in price levels in the past 65 years, many of the tariff rates are entirely inequitable, some being prohibitively high and others ridiculously low. For a country such as Haiti, in which total imports are of relatively small volume and the units of importation are also small, and which is not in close touch with the price controlling centers of the world, it is almost necessary that the basis of the tariff structure should be specific duties.
Not only does the adoption of 'specific rates avoid the necessity of following market prices, but also takes away or considerably reduces the incentive of importers to place undervaluations on their merchandise. Furthermore, the method of assessing merchandise for customs purposes on the basis of quantity is far less susceptible of administrative difficulties, practically the only real difficulty being differences of opinion in the classification of merchandise. For it must be recognized that specific duties should properly be higher on the more valuable groups of any given class of commodity, thus offering some incentive for false declaration as to quality of imports. For example, it is not equitable to assess the same duty per kilo on coarse and fine textiles, with the result that at some point the line of demarcation must be drawn between coarse and fine. In the past the tariff has been based upon trade names for many classes of merchandise, and there has been endless controversy as to whether a given item is covered by a given trade name. The new tariff
proposes to avoid such controversies so far as possible by adopting absolute rather than relative classifications. For example, classification of textiles will be so far as possible in accordance with thread count or weight or some other unit of computation which is susceptible of exact determination and does not rest upon personal opinion.
To be sure, it is necessary in the revised tariff to provide for specialties, new varieties of merchandise, and for the unusually valuable classes of merchandise which are regularly imported. For all of these cases it is necessary to adopt the ad valorem principle, and accordingly the tariff will contain a certain number of alternative duties, the specific duty to be employed for ordinary cases and the ad valorem duty to cover special cases and luxury articles with a wide range of valuation. This method has been adopted with success by numerous countries.
At the end of the fiscal year the new tariff classifications had been completed, and work was in progress on the determination of rates of duty which will be recommended. After these tentative rates have been calculated it is proposed to submit the schedules to all interested parties and to obtain the benefit of suggestions both as to classifications and as to rates of duty. On the whole it is not the intention either to increase or to decrease duties. The object

..





is rather to adjust present inequalities, leaving total revenues from customs approximately the same as at present. It hardly needs to be stated that all of the present surtaxes will be eliminated, thus facilitating the computation of customs duties and the ease of importing merchandise. Moreover, it is the intention to abolish practically all of the present additional customs charges, as these charges are necessarily absorbed in the price of merchandise which is assessed to the ultimate consumer. It logically follows that all charges should be included in one general tariff rate rather than in a series of charges which have to be computed separately and which merely yield an equivalent total.
Customs facilities and customs forms will undergo the same rigorous revision as is planned for tariff classifications and rates of duty. Many onerous requirements will be removed and the entire procedure will be simplified and expedited. The theory which has been adopted for the entire process of tariff revision is that formalities should be as simple as possible and should only be required in so far as they are necessary for protecting the interests of the State. There is also little necessity of stating that the present archaic system of weights and measures will be discontinued and that the metric system will be strictly followed. This change of method will in itself afford considerable relief to commerce, as the present units are not well understood in other parts of the world and their use results in many cases of controversy.
Finally, one of the principles which has been adopted for the revision of the tariff is that penalties should not be imposed for mere mechanical errors, or unavoidable delays in the transmittal of commercial documents, but that penalties are justified only in cases of attempt to defraud or in cases of gross negligence. Persons of commercial experience readily realize that certain time limits must be stipulated for the declaration of merchandise and for the withdrawal of merchandise after appraisal, otherwise an orderly customs administration would be impossible. Furthermore, the only method of obtaining compliance with reasonable regulations which must be laid down by the customs service is a system of fines for noncompliance. It is equally true that customs authorities should have no discretion in the imposition or exemption of fines, when fines have clearly been incurred. Such discretion inevitably leads to favoritism and opens the way to even more serious abuses.
Unfortunately, in the past there has been a tendency on the part of merchants to request special treatment and to feel injured when such special treatment was refused. An excellent case in point was in connection with the practice formerly followed of permitting preferential delivery of merchandise. The administrative authorities were, on occasion, glad to recognize unusual conditions and to

..




grant preferential delivery. But requests for preferential delivery became so frequent that a large proportion of delivery was by preference, and orderly operation of the customs service was seriously impaired. Obviously, this loss of efficiency really resulted to the disadvantage of all merchants and it became evident to the General Receiver's office that instead of. expediting delivery the policy of preferential delivery was ;actually a hardship on the merchants themselves. .
Consequently, preferential delivery was abolished, with the
result that the average time of delivery of merchandise in Port au Prince was reduced by several.days. Instead of customs officials having to drop work upon the importation of one merchant in order to give special attention to the importation of another, the work is carried on steadily, with the result that all merchants now obtain prompt delivery and consequently there is no inducement even to request preferential delivery. To be sure, general orders have been issued that perishable commodities shall ipso facto be given immediate attention. There are instances in which perishables have been delivered to the place of business of the importer within two hours after the arrival of the boat at the dock.
Another innovation which is proposed in the new tariff is the creation either of a system of free ports or a system of drawbacks. Obviously the intention of such a system is to encourage the transit trade and possibly to create in Haiti industries for the further manufacture of imported crude or semimanufactured material. In connection with the plans for free ports or a system of drawbacks it is intended to establish bonded warehouses in which merchants can find convenient, safe, and economical storage for their goods.
The work of tariff revision is in charge of E. A. Colson, the recently appointed deputy general receiver.

COMMERCIAL STATISTICS

The preparation of commercial statistics involves many technical difficulties. In the first place the time element is important. Minutely accurate statistics which are unduly delayed are of less value than reasonably accurate statistics which are compiled promptly.
In the second place the problem of determining real values is one upon which competent aut-orities have never been able to reach agreement. Commercial statistics of certain important countries reflect the value of merchandise in the port of embarkation. Others show the value of merchandise laid down in the port of entry but with customs duties unpaid. Others show the value of imports in the country of destination with all charges and duties paid. Similar

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discrepancies occur in the method of evaluating exports. In the third place even after the method of calculating figures for statistical purposes has been decided upon the problem of applying that method, or the placing of a monetary value on any given commodity, remains. When duties are assessed upon an ad valorem basis there is a natural tendency on the part of importers to understate the value of their merchandise. Undervaluation is often assisted by unscrupulous exporters who wish to obtain the good will of their customers and accordingly prepare fraudulent commercial invoices. Even in cases where duties are paid on a specific basis it is the opinion of competent authorities that there is a tendency toward understatement of values of imports.
Were it possible for a country to obtain data relative to the transfer of values, if total disbursements to foreign interests for placing merchandise in a country could be computed and if total net credits for exports could be compiled, it would be possible to obtain a scientifically accurate statement of the cost of imports and the price received for exports. This would be the best indication of both import and export values, but, unfortunately it is impossible to construct such a statement of debits and credits. The best that can be done is to compute commercial statistics as carefully as possible, and reliance has to be placed on commercial documents, even though it is practically certain that undervaluations, particularly in the case of imports, occur. As stated above, considerable attention has been given to improving the accuracy of commercial statistics, and it is hoped that in the future the data compiled in the office of the General Receiver will correspond closely with actual disbursements for imports and receipts for exports. Only in such fashion are commercial statistics really valuable in assisting to determine the balance of payments of Haiti.
The reorganization of statistical methods is being supervised by B. C. Scott.
CUSTOMS PROPERTY
Shortly after the beginning of the fiscal year 1923-24 it was decided to combine the functions of the Financial Adviser and of the General Receiver and to make one person responsible for the duties assigned to the Financial Adviser and to the General Receiver by the Treaty of September 16, 1915. This decision was quite logical, as the duties of the Financial Adviser and of the General Receiver somewhat overlap, and since in actual practice the General Receiver had for considerable periods also acted as temporary Financial Adviser. With the decision to consolidate the offices arose the necessity of geographical concentration.

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Due to the economies of operation of the customs service the 5 per cent of customs collections, which by the treaty is allocated for the expenses of the offices of Financial Adviser and General Receiver, had proved to be more than adequate to cover all costs of operation, including 1 per cent of collections as commission to the Banque Nationale de la R4publique d'Haiti for its services in receiving collections. Great credit must be given to the former General Receiver for the economical manner in which he administered the customs service and thereby accumulated a surplus of approximately Gds.
-400,000 at the beginning of the fiscal year 1923-24. As it appeared certain that costs of operation could be maintained well within the 5 per cent allowance during that year, thus adding to the surplus in the 5 per cent fund, it was decided, to employ the major part of all accumulations from operation in the construction of a modern building to house the Financial Adviser-General Receiver, the internal revenue bureau, and the ministry of finance.
Accordingly, Gds. 500,000 was appropriated for the construction of a palace of finance situated immediately adjacent to the present palace of ministries and directly opposite the national palace. In addition to offering much needed facilities for the efficient administration of the financial service, the new building is expected to constitute one of the outstanding architectural features of Port au Prince. It is hardly necessary to add that the construction of dignified and well planned public buildings is one of the principal necessities in Haiti, and that the erection of such buildings should be actively continued over a considerable period of years.
The palace of finance is a two-story structure, built of masonry and with dimensions of 77.20 by 21.60 meters. The type is adapted to tropical conditions, and all modern improvements are being installed. As the entire cost of the structure is being met from the 5 per cent fund of the Financial Adviser-General Receiver it is an indication of the benefits which may be derived from proper attention to operating economies. Not only will it be possible to relinquish the very unsatisfactory quarters which the receivership has occupied for many years, but it will also be possible to terminate rentals for office space for the several activities concerned in financial administration. Finally, the concentration of these activities under the same roof will undoubtedly result in increased efficiency and saving of time in administration. It is expected that the palace of finance will be ready for occupation about April, 1925.
Not only were improved facilities deemed necessary for the central offices of the Financial Adviser-General Receiver, but the equipment of the customs service and of the internal revenue service in the several cities of the Republic was found to be inadequate. It was

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decided, therefore, to prepare a thorough plan of development of the plant and facilities for collecting customs and internal revenues. Several years will be required for putting into effect the plan which is now being prepared, but at the end of that time it is expected to. have in each port a permanent modern dock of concrete construction with proper facilities for loading and unloading merchandise, such as cranes, scales, and the like, adequate warehouse space of modern fireproof construction, comfortable offices designed for convenience: and efficiency and furnished with modern office equipment, It is also planned to construct or acquire comfortable living quarters for the collectors of customs and internal revenue. Preliminary estimates indicate that expenditures of as much as Gds. 2,000,000 may be required to complete the program of improving customs plant, and facilities.
The improvements will be financed by direct disbursements from the 5 per cent fund in so far as operating economies permit, and the remainder will be obtained from the general funds of the Government. It is estimated that a period of perhaps five years will be required to complete the program, but at that time Haiti should possess complete, modern and permanent facilities for the administration of revenues.

CUSTOMS OPERATION

During the year just. closed the policy of economical operation of' the customs service, which has characterized the entire period of thereceivership, has been maintained. As a matter of fact, in only one year of the eight-year period has the 5 per cent of collections, which is allocated by the Treaty of September 16, 1915, for the costs of the. Financial Adviser-General Receiver, been insufficient to cover operating disbursements, and for that year the slight deficit was. easily covered from economies of former years. Moreover, in all fiscal years except 1915-16 and 1921-22 the 5 per cent allocation has been sufficient to cover operating costs plus the 1 per cent contractual commission to the Banque Nationale de la Republique d'Haiti for its services in receiving customs revenues. The year 1923-24 compared quite favorably in operating costs with prior years, as receipts of the 5 per cent fund not only covered all operating disbursements and the bank commission but left a comfortable surplus which is being utilized, together with former operating surpluses, in the construction of the palace of finance.
A recapitulation of the receivership fund is presented in Table-No. 22. It shows by years all receipts into the fund and disbursements from the fund, together with the resulting surpluses or deficits. It should be noted that the year 1923-24 showed the largest receipts into the fund of any year of the receivership period. This is true,

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43

in spite of the fact that customs revenues were not so large as those in 1919-20, but during the fiscal year under review a reimbursement of Gds. 102,939.64 was made to the receivership fund, as this amount had previously and by error been transferred to the general funds of the Government. Expenditures were unusually heavy not
only because the commission of the Banque was proportionately large in accordance with increasing customs revenues, but also
because the entire cost of the palace of finance, or Gds. 500,000, has been charged to the receivership fund for the year 1923-24. Nevertheless, even including the cost of the palace of finance it is apparent that over the entire course of the receivership, receipts have considerably exceeded expenditures, leaving a comfortable working balance at the end of the fiscal yeir 1923-24. As receipts of the receivership fund are expected considerably to increase in 1924-25, without proportionately increased operating expenditures, it is
expected that the present favorable financial condition of the receivership will continue.
TABLE NO. 22
RECEIVERSHIP FUND
FISCAL YEARS 1916-17 TO 1923-24

RECEIPTS EXPENDITURES SURPLUS DEFICIT
Gourdes Gourdes Gourdes Gourdes
September, 1916------------------------. 60, 211. 85 89, 850.15 29, 638. 30
1916-17 ---------------------------------. .914, 794. 70 796,625. 70 118-------, 169.00-------1917-18.---------------------------------. 755,464.80 741,055.80 14, 409.00 .
1918-19--------.------.-----------------. 1, 432, 176. 60 700, 035. 60 732, 141. 00 .------1919-20.-------------------------------. 1, 03, 639. 95 1,380, 40. 60 223,179. 35 .
1920-21------.---------------------------. 882, 854. 05 1,452, 073. 10 .---------------569, 219. 05
1921-22.--------------------------.----- 1,377, 811. 70 1, 279,142. 25 98, 669. 45 .-.
1922-23.-------------------------------- 1, 555, 057. 00 1, 438, 501. 15 116, 550. 85 .
1923-24.-----.-------------------.------- .1,607, 569. 51 1, 896, 322. OS ----. -----------288, 762. 57
TOTAL.-------------------------. 10,189,580.16 9, 774,081. 43 1,303,118.65 887,619. 92
887, 619. 92
Surplus for period---.--.--------.---------.----------------. 415, 498. 73
1. Receipts consist of 5 per cent of customs revenues, as stipulatedin Article VI of the Treaty of September 16, 1915, and disbursements from such receipts cover expenses of administration and operation of the customs service, cost of the disbursing, accounting and auditing offices, and include payment of 1 per cent of all customs receipts to the Banque Nationale de la Republique d'laiti for services in accordance with its contract with the Haitian Government.
During the year just closed the method of presenting the expenses of the receivership has been considerably changed, and consequently it is impossible to present.operating statistics which are comparable with all of the former years. However, such data can be presented for a portion of the period, as shown in Table No. 23.
This table divides total expenses into costs of administration of the customs service, costs of the accounting and auditing service for the general books of the Government, and costs of the Financial Adviser's activities, all of these being combined under the general

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title "Administration". The second item indicates the expense of maintaining the civilian pay clerks of the gendarmerie who assist in effecting the payment of salaries to the officials of the Government, the third item reflects the cost of operating the customs houses, and the fourth item indicates the commission of 1 per cent on customs collections which is paid to the Banque Nationale de la Republique d'Haiti. The item for the commission of the Banque is not in each year equivalent to exactly 1 per cent on customs collections, as in some cases payment was delayed and was carried over into subsequent years.
TABLE NO. 23
EXPENSES OF FINANCIAL ADVISER-GENERAL RECEIVER, BY CATEGORIES
FISCAL YEARS 1919-20 TO 1923-24

ADMINISTRA- CIVIL PAY CUSTOM- BANK
TION CLERKS HOUSES COMMISSION
Gourdes Gourdes Gourdes Gourdes Gourdes
1919-20 ---------------------------. 329,634. 00 623,070.75 427,755.85 1,380,460.60
192021. --------------------------408, 798. 70 17, 700.00 547,194.55 478,379.85 1,452,073.10
1921-22---.-----.------------------. 386, 326. 70 17, 925. 00 605, 773. 60 29,116.95 1, 279,142.25
1922-23.----------.------ 484, 672.40 19,325.00 600, 627. 10 333, 881. 65 1,438, 506. 15
1923-24----.-----------------------. 935,347. 21 20,100.00 648, 959. 62 291, 925. 25 1,896, 332. 08
TOTAL---------------------. 2,544,779.01 75,050.00 3,025, 625. 62 1,801,059. 55 7,446,514.18

A second classification of disbursements by the receivership is shown in Tables No. 24 and No. 25. The first shows monthly expenditures for administration, this item including costs of civilian pay clerks, as divided among salaries, materials and supplies, transportation and miscellaneous expenditures. It will be noted that there was considerable uniformity in expenditures from month to month, and that no particular trend is observable. Practically the same comments are applicable to Table No. 25, which shows the costs of maintaining the several customhouses of the Republic. For comparable purposes, Table No. 26 has been prepared, showing total costs of operating the customhouses from 1919-20 to 1923-24. Prior to the former date costs of administration and costs of operation of the customhouses were not segregated. The data indicate that there has been a moderate increase of costs in customs operations but this increase is proper as customs revenues expand. As a matter of fact, costs have not increased proportionally with revenues. It may be reasonably expected that costs of actual operation will continue gradually to expand, and total expenditures from the receivership fund will undoubtedly considerably increase in view of the program for improvement of the plant and facilities of the customs service which has been undertaken.

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TABLE NO. 24

EXPENSES OF ADMINISTRATION AND OF CIVIL PAY CLERKS BY CATEGORIES AND MONTHS
'FISCAL YEAR 1923-24

MATERIALS TRANSPOR- MISCELLA- TOTAL
SALARIES AND TOTAL
SUPPLIES STATION NEOUS

Gourges G ourdes Gourdes Gourdes Gourdes
October, 1923.-------------------. 30, 266. 50 3,002. 00 2, 522. 15 35, 790. 65
November.---------------------- 30,261.45 8,503.05 --. 1, 471. 65 40, 236. 15
December.----. ------------------- 30, 252. 40 -4,335. 65 142. 00 1,465. 90 36, 195. 95
January, 1924.--------------------. 30,174.00 4,039.80 150. 00 2,871. 53 37, 235.-34
February----.---------. .----------. 37, 002. 15 5, 578. 86 274. 35 1, 631. 27 44,486. 63
March.--------------.------------. 37, 832. 75 3,189. 20 1, 950. 85 42, 972. 80
April.---------------------------- 33, 241. 65 1,778.40 ---. 1,685. 15 36, 705. 20
May---.------------------------- 31,124.75 753.25 5, 221.95 37,099.95
June----------------.------------ 34,130.86 2,496. 95 642.10 3,240.39 40,510.30
July.---------------------------- 35, 034. 75 1, 100. 98 581.40 4,252. 23 40, 969. 36
August.-----------. ------. -- ------ 28,341.85 1,629.00 708. 82 1,726.95 32,406.62
September.---------. ---. ----------. 31, 357. 10 2,907. 65 960. 97 495, 612. 45 530, 838. 27
TOTAL. --------------------389, 020. 21 39, 314. 79 3, 459. 64 523, 652. 57 955, 447. 21


TABLE NO. 25

EXPENSES OF CUSTOMHOUSES, BY CATEGORIES AND MONTHS
FISCAL YEAR 1923-24

MATERIALS TRANSPOR- MISCELLA- TOTAL
SALARIES AND ToTAL
SUPPLIES STATION NEOUS

Gourdes Gourdes Gourdes Gourdes Gourdes
October, 1923.---- .--------------- 44, 649.04 2,216.40 .-------.------- 823.50 47, 688.94
November ----------------------- 48, 168. 75 4, 284. 33 --.------------ 4, 026. 25 56, 479. 33
December-------.-------------. 47, 193. 30 5, 533. 88 .-------------- 1, 115. 50 53, 842. 68
January, 1924. -------------------- 46, 323. 81 4, 180. 25 -----------. 1, 238. 75 51, 742. 81
February----. .-----------. 48, 915. 97 6, 278. 80 .--------------. 1, 320. 55 56, 515. 32
March-------.-------------------- 47, 915. 64 4, 040. 83 .--------------.1, 138. 40 53,094. 87
April.---------------------------- 47, 450. 21 6, 202. 00 -------------- 244. 80 53,897. 01
May.---------------------------- 48, 421. 02 4,896. 10 -------------- 2, 550. 25 55, 867. 37
June. ---------------------------- 52, 000. 77 5, 658. 13 --------------. 2, 216. 57 59, 875. 47
July. .---------------------------- 47,164. 02 4, 344. 34 375. 00 2, 795. 27 54, 678. 63
August. .-------------------------- 46,414.76 3,511.51 -------------- 2,243.29 52,169.56
September---.------------------- 47, 513.44 2, 069. 58 724. 00 2, 800. 61 53, 107. 63
TOTAL. --------------------572,130. 73 53, 216.15 1, 099.00 22, 513. 74 648, 959. 62


TABLE NO. 26

EXPENSES OF CUSTOMHOUSES, BY PORTS
FISCAL YEARS 1919-20 TO 1923-24

1919-20 1920-21 1921-22 1922-23 1923-24 TOTAL


Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Aquin .---------------------- 1,800.00 3,009.00 3, 784. 35 7, 602. 75 4,525. 65 20, 721.75
Belladre--------------------2,490.00---------------------------------- 2,004. 80 4,494. 80
Cape Haitian. ---------------73,490. 95. 73,495.20 71, 184.30 74, 88.15 72,886.22 365, 954.82
Cayes.---------------------- 41,619.35 47,702.70 51,711.45 56,478.30 57,152.35 254,664.15
Fort Libert. .---------------- 5, 433. 70 4,863. 15 3, 490. 00 3, 833. 00 4, 064. 85 21,684. 70
Glore.----------. .-------------2, 460. 00 1,840. 60 4, 300. 60
Gonaives .-----------. -----. 31,430.90 32,159.85 41,800.20 40,678.75 41,467.46 187,537.16
Jacmel. .--------------------- 47, 370. 85 52, 710. 50 46, 634. 50 45, 211.25 50, 093. 32 242, 020.42
Jrmie.------.-------------- 35,721.45 33, 104.80 25,749.90 22,581.35 30,041.60 147,199.10
Miragoane. -----------------5,349.90 5,093.95 5,489.05 7,482.35 7,077.55 30,492.80
Ouanaminthe. ---------------5,437.95 5,102.60 3,443.25 3,310.00 3, 607. 83 20,901.63
Petit Goave.--.---------------27, 035. 50 29,249. 10 24,730. 40 24,518. 55 26, 714. 07 132, 247. 62
Port au Prince.------.------- 308,180.70 227,612.05 289,393.60 269,059.15 301,046.66 1,395,292. 16
Port de Paix.--. 16, 118.55 17,493.80 16,554.00 19,240.45 18,334.40 87, 741. 20
Saint Marc.-------------.--. 19,130. 95 15, 597. 85 21,808. 60 25, 733. 05 28, 102. 26 110, 372. 71
TOTAL. --------------623, 070.75 547, 194. 55 1605,773. 60 600,27. 10 648, 59. 62 3,025,625.62

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In Table No. 27 the costs of operation of each of the ports are shown in percentages of customs revenues collected by those ports. The average percentage costs of operation are calculated by comparing total customs receipts with total net disbursements from the receivership fund, after deducting from that total the commission of the Banque. For the year 1923-24 the total cost of administration
and of operation appears high as the expense of constructing the palace of finance is included. Obviously, this is a capital charge
rather than a cost of operation, yet it has been decided to base the operating ratio upon all deductions from the receivership fund, no matter whether they be for purposes of operation or for capital expenditures. As an extensive program of port development has
been planned, and as it is proposed to utilize all available balances of the receivership fund in the prosecution of that program, it can be taken for granted that for some years the cost of the receivership, including expenditures on capital account, will be virtually 5 per cent.
It may be stated, however, that if capital expenditures be deducted the actual cost of operation of the Financial Adviser-General Receiver in 1923-24 was 3.68 per cent, a figure lower than each of the preceding three years. It may be expected that as customs revenues increase, costs of actual operation should constitute a gradually declining percentage of such receipts. In other words, it is a general principle of finance that as the revenues from a given tax increase the cost of
administering such revenue tends to decline, and this principle should be borne in mind in connection with the revenue legislation of Haiti. At the present time there are numerous taxes the yield of which is so small that the cost of administration is inordinately large.
TABLE NO. 27
COST OF COLLECTING ONE GOURDE OF CUSTOMS RECEIPTS. AVERAGE INCLUDING EXPENSES OF ADMINISTRATION AND OF CIVIL
PAY CLERKS
FISCAL YEARS 1919-20 To 1923-24
1919-20 1920-21 1921-22 1922-23 1923-24

Gourdes Gourdes Gourdes Gourdes Gourdes
Aquin .------------------------------------- 0.0081 0.0270 0.0157 0.02E8 0.0145
Belladire--------------------------------------------------------------. ---- ----- ------ 2.8162
Cape Haitian .------------------------------ .0177 .0281 .0236 .0229 .0253
Caes.------------------------------------- .0123 .0270 .0276 .0188 .0147
Fort Libert ------------------------------- .0413 .2560 1.0959 0553 4.5209
Glore .---------------------------------- ------------------------------------ ----- ------ 2.0471
Oonaives -----. .--------------------. .0194 .0372 .0278 .0236 .0235
Jacel.---------------------------------- .0193 .036 .0221 .0156 .0187
Jrmie .------------------------------------ .0332 .0654 .0454 .0296 .0297
iragoane.---------.------------------ .0176 .015 .011 .0110 .0122
Ouanaminthe.---------------------------- 3.8796 2.1478 1.0053 .7397 .6007
Petit Goave.--------------- .0154 .0359 .0194 .0106 .0135
Port au Prince .----.--- ----------- .0203 .0272 .02(8 .0221 .0241
Port de Paix -----.-------------------------- .0126 .0240 .0189 .0178 .0148
Saint Mare ---.--------------------------- .0136 .0320 .0229 .0258 .0239
AVERAGE .------------------- .0297 1 .0540 .0432 .0378 .0535
I The figures for each port represent the cost of collecting one gourde of customs revenues at that port, whereas the average includes the cost of administration and of the civil pay clerks, which obviously can not be distributed.

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Table No. 28 presents actual expenditures by months for administration, the civil pay. clerks, and the customhouses for the past fiscal year. With the exception of the month of September, in which the entire cost of the palace,of finance was charged to administration, the expenses of administration and of operation showed comparatively little fluctuafnon from month to month. It may be stated that costs of operation are well in hand and in the absence of unusual depression in foreign commerce there should be little difficulty in maintaining an efficient service of administration and operation, including the commission of the Banque, within the 5 per cent of collections which is allowed by the treaty of September 16, 1915. The data presented in Table No. 28 are reduced to percentages in Table No. 29. Consideration of this table shows that relative costs decline as collections increase, or costs are lowest in the months when revenues are highest. For the major ports it develops that the cost of collection at Petit Goave was the lowest, with average expenses of only 1.35 per cent of revenue collected. Cayes was second with a percentage cost of 1.47 and Port de Paix was a close third with 1.48 per cent. It is somewhat surprising that Port au Prince, which received 42 per cent of total customs revenues, showed a collection cost of 2.41 per cent, whereas it might reasonably be expected that ,the cost in this port would have been the minimum. Other relatively high operating ratios were shown at Cape Haitien with 2.53 per cent and at J6r6mie with 2.97 per cent.

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TABLE NO. 28

EXPENSES OF THE FINANCIAL ADVISER-GENERAL RECEIVER, INCLUDING ADMINISTRATION CIVIL PAY CLERKS AND CUSTOMHOUSES, BY PORTS AND MONTHS

FISCAL YEAR 1923-24


OCTOBER,
1923


Gourdes
Administration .~. 35, 790. 65 Aquin. 539.00 Belladre. 175. 70 Cape Haitian. 4,989.02 Cayes.4, 163. 75 Fort Libert6.-. 281. 55 Glore.--. 150. 00 Gonaives. 3, 458. 27 Jacmel------.-------- 3,873. 30
Jfrimie 1,946. 60 Miragoane--.------------ 593.65
Ouanaminthe. 316. 95 Petit Goave. 2, 242. 30 Port an Prince----.---.--. 21, 656. 35
Port de Paix 1,439. 50 Saint Marc .-------------1,863.00


TOTAL.---.----.


NOVEM- DECEM- JANUARY, FEBRU- MARCH, APRIL, MAY, JUNE, JULY, AUGUST, SEPTEMBER, 1923 BER, 1923 1924 ARY, 1924 1924 1924 1924 1924 1924 1924 BER, 1924


Gourdes
40, 236. 15
350. 20 167. 50 6, 164. 50 5, 497. 60 277. 50 150.00 4, 624. 63 4, 535. 75 1, 852. 50
586.00 314. 90 2, 503. 50 25, 860. 35 1, 621.50 1, 972. 90


Gourdes
36, 195. 95
218.00 165. 00 5, 978. 00
4, 694. 95
335. 95 150. 00 3, 352. 60 4, 089. 60
1,831.00 671.05
230. 00 2, 178. 85 26, 349. 93 1, 549. 15 2,048. 60


Gourdes
37, 235.33
192. 30 165. 00 5, 988. 55 5,166.25 285. 00 150.00
3, 118. 76 3, 923. 30 1, 778. 00 643. 10 291. 55 2,166. 30 24, 251. 60 1, 440. 50 2, 182. 60


Gourdes
44, 486, 63
410. 00 165. 00 6, 716.40 4. 909. 55
280. 80 150.00
4, 002. 86 4, 876. 81
3, 227. 40
505. 00 295. 75 2, 053. 50 25, 195. 10 1, 586. 70 2, 140. 45


6, 715. 48 90, 038. 63 1 8, 978. 14 101, 001.95


I __-_=--- I__ = = -- -I I_


Cost of collecting 1 gourde .--------------. 0.0305


0. 0269 1 0.0409


Gourdes
42, 972. 80
410. 50 170.00 5, 890.95
4, 473. 75 614. 90 159.25
3, 412.23 4, 077. 53 2, 548. 30 600. 75 291.60 2, 051.40 24, 592. 36 1, 439. 50 2, 361. 85


Gourdes
36, 705. 20
392. 00 165. 00 6, 233. 00 4, 690. 30 329.30 150. 00 3, 534. 76 3, 983. 25 2, 706. 15 523. 75
280. 00 2,202.60 24, 689. 05 1, 515. 30 2,502. 55


96, 067. 67 90, 602. 21

0.0355 0.0415


Gourdes
37, 099. 95
495. 40 165. 00
6, 084. 65 4, 712. 10
327. 50 150. 00 3, 885. 81 4,560.31 2, 783. 75
498. 00 309.45 2, 331.70 25, 945. 55 1, 499. 75
2, 118. 40


92,967.32

0. 0442


Gourdes
40, 510. 30
417. 00 165.00 6, 477. 25
4, 642. 25
340. 50 172. 85 3, 032. 66 4, 558. 68 2, 986. 00
687.11 301. 98 2, 328. 04 28, 759. 60 1, 687. 40 3, 319. 15


Gourdes
40, 969. 36
368. 50 171. 60 6,418. 65 4, 728. 70
336. 60 156.25 3, 258. 56 3, 991. 88 3, 078. 80
576. 13 298. 35 2, 233. 48 24, 763. 42 1, 613. 45 2,684.26


Gourdes
32, 406. 62
364. 75 165. 00 5,958. 50 4, 751. 20
381. 50 150. 00 2, 016. 63 3, 807. 08 2, 380. 80
595. 80 347. 30 2, 226. 57 25, 093. 40 1,611. 65 2,319.38


Gourdes
530, 828. 27
368. 00 165. 00 5, 986. 75 4, 721. 95 273. 75 152. 25 3, 769. 69 3, 815. 83 2, 922. 30 597. 21 330. 00 2, 195. 83 23, 889. 95 1, 330. 00 2, 589. 12


100, 385. 77 95,647. 99 84,576. 18 583,945. 90


0.0553 0.0629


0. 0528 0. 2889


TOTAL


Gourdes
955, 447.21 4, 525. 65 2, 004. 80 72, 886. 22 57, 152. 35 4,064.85 1, 840. 60 41,467.46 50, 093. 32 30,041.60 7,077. 55 00 3, 607. 83 26, 714. 07 301, 046. 66 18,334.40 28, 102. 26


1, 604, 406.83

0.05,35


0.0264 0.0238


I3,479.59


----


I


I ( I i I


" ^


,


--- --

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TABLE NO. 29

COST OF COLLECTING ONE GOURDE OF CUSTOMS RECEIPTS, AVERAGE INCLUDING ADMINISTRATION AND CIVIL PAY
CLERKS, BY PORTS AND MONTHS

FISCAL YEAR 1923-24


OCTOBER, NOVEM- DECEM- JANU- FEBRU- MARCH, APRIL, MAY, JUNE, JULY, AUGUST, SEPTEM- AVERAGE,
1923 BER, 1923 BER, 1923 ARY, 1924 ARY, 1924 1924 1924 1924 1924 1924 1924 BER, 1924 1923-24


Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Aquin.---------------------- -----------0.041 0.009 0.005 0.003 0.018 0.005 0. 014 0.036 0.018 0. 041 0.070 0. 065 0. 0145
Belladre--.----------. ---------------.-----5. 875 4. 133 3. 538 1. 982 4. 513 2. 623 2. 948 2. 586 3. 909 1. 385 1. 998 3. 929 2. 8162
Cape IIaitian------.---------------------. --- .021 .018 .013 .015 .026 .028 .031 .025 .053 .054 .050 .023 .0253
Cayes.---.-------------------------------. .010 .011 .009 .014 .023 .012 .015 .015 .018 .022 .023 .014 '.0147
Fort Libert.---------------------------- 20. 250 6. 908 186. 640 11. 710 23. 080 (1) 9. 250 23. 680 67.160 5. 539 603. 553 () 4.5209
Olore.--------------------------.-------- 2. 656 6.000 21. 708 4. 324 2. 376 .658 .862 1. 842 2. 819 2.733 5. 28 4.946 2.0471
Gonaives---.------------------.------------- .027 .020 .013 .013 .019 .016 .024 .035 .041 071 35 .046 .0235
Jacmel-------. --. ---.---------------------. -- .013 .011 .011 .010 .016 .016 .020 .037 .050 .071 .060 .028 .0187
Jrmie.---.----.---------------------------- .042 .015 .013 .010 .030 .032 .034 .026 .054 .074 .053 .035 .0297
Miragoane---.---.-----------------. -----.--- .009 .006 .006 .011 .009 .018 .016 .014 .056 .029 .018 .018 .0122
Ouanaminthe.--.--------------------------. .774 .975 .363 .857 .290 .582 1. 213 .883 .752 651 .756 .454 .6007 e
Petit Goave .--------------------.--------- .011 .009 .006 .008 .010 .011 .014 .016 .037 .045 .071 034 .0135
Port au Prince.---.--.------------------- .016 .016 .019 .019 .025 .024 .026 .025 .030 .029 .028 .024 .0241
Port de Paix--------.----------------------- .018 .011 .007 .008 .014 .037 .015 .022 .)20 .035 .033 .018 .0148
Saint Mar.----------. ---------------. ---.---- .020 .019 .015 .019 .021 .016 .025 .028 .045 .032 .030 .036 .0239

Average--------------------------. .0305 .0264 .0238 .0269 .0409 .0355 .0415 .0442 .0553 .0629 .0528 .2889 .0535

I No receipts.

..





CUSTOMS PERSONNEL
During the year there have been several changes in the personnel of the customs service. Most important were the resignations of A. J. Maumus and W. S. Matthews, jr., as General Receiver and deputy general receiver. The duties of the General Receiver were consolidated with those of the Financial Adviser and W. W. Cumberland was nominated by the President of the United States and appointed by the President of Haiti as Financial Adviser-General Receiver. E. A. Colson, who for some years had been executive assistant in the office of the Financial Adviser, was nominated by the President of the United States and appointed by the President of Haiti as deputy general receiver. These changes occurred in the spring of 1924. In July, 1924, Leon R. Marie, collector of customs at Port au Prince, resigned, and his place was filled by D. P. Johnson, who had acted as special customs agent for some years. During the summer J. E. Desrosier, collector of customs at Gonaives, also resigned and this position was filled by the reappointment of H. A. G6n6reux who had resigned as collector of customs at Jacmel in the spring of 1924. Upon the occasion of Mr. G6ndreux's resignation, E. H. Mahy, previously an assistant in the office of the Financial Adviser, was appointed collector of customs at Petit Goave. W. R. Gravel was transferred from Petit Goave to Jacmel. Also during the fiscal year J. T. Lassiter, formerly with the Dominican constabulary, was appointed collector of customs at J~r6mie in place of a deputy collector who had been in charge for about a year.
An excellent spirit pervaded the customs personnel throughout the year, as indicated by the satisfactory service which was rendered to importers and exporters in spite of a low operating ratio. The collectors of customs deserve much credit for the manner in which they have conducted their offices. For obvious reasons revenue agents are not likely to be popular, but the collectors of customs in most instances retained the respect and good will of the commercial communities of their respective ports. In this connection mention should also be made of the valuable services which were rendered by Henry Jones, chief of bureau in the office of the General Receiver. In general it may be stated that satisfactory progress was made in developing a staff of competent and loyal Haitian officials who will, it is hoped, ultimately be able to continue the orderly operation of the customs service after the termination of the receivership.
BUREAU OF INTERNAL REVENUE
For some years it has been recognized that the principal weaknesses in the financial structure of Haiti have consisted of the antiquated tariff system and the unduly high proportion of the total

..





revenues of the Government derived from customs duties. It has been pointed out that the first of these difficulties is in the course of rectification by a thoroughgoing revision of the customs tariff and of the customs formalities, and during the year 1923-24 it was also decided to search for a solution of the other problem. In view of the small yield from internalPrevenues it was obvious that the logical solution of the second problem lay in increasing the productiveness of existing internal taxes and in the creation of new internal taxes. As a result, a carefully drafted law was approved by the Council of State on June 6, 1924, creating a. bureau of internal revenue under the supervision of the General Receiver. This bureau is charged with administering all revenues of the Government other than those administered by the customs service. As a result, machinery has been created which in due time should develop internal revenues to a point where they compare favorably with income from customs, so as to minimize the danger to which the financial structure of the Government is at present subjected with every fluctuation in the volume of foreign trade.
Dr. W. E. Dunn, who has had broad experience in commercial and financial matters, was selected as director of internal revenue and the new organization took over actual administration of internal taxes on August 1, 1924. Consequently, the activities of that bureau can be reported for only the last two months of the fiscal year 1923-24. Nevertheless, even in that short period and in spite of the numerous difficulties of the period of organization, a very creditable showing was made. It may be confidently expected that internal revenues will continue to expand as the present system is revised and modernized. Unfortunately there are now in existence many so-called nuisance taxes, or taxes the yield of which is disproportionate to cost of administration. Moreover, many of the internal revenue laws are vague or contradictory, and numerous administrative difficulties have arisen. Unquestionably all of the internal revenue legislation of Haiti requires drastic revision, eliminating some taxes, creating other taxes, and clarifying the method of application of such taxes as remain on the statute books. Needless to say such a task is one of no small dimensions, and probably its complete realization cannot be accomplished in less than two years. During the intervening period the internal revenue service will be gaining administrative experience and will be acquiring a competent personnel so that when satisfactory laws are finally upon the statute books the income of the Government from internal revenue can be expected to increase to its proper relation with customs receipts. Without question that relationship should be one of approximate equality within a period of 10 to 15 years, and ultimately internal revenues rather than customs

..





receipts should constitute the chief financial support of the Government.
The law of June 6, 1924, conferred broad powers upon the bureau of internal revenue, and it is believed that an efficient operating organization can eventually be developed. In the same manner that 5 per cent of customs collections is allowed to the Financial AdviserGeneral Receiver, 15 per cent of internal revenue collections is allowed for the costs of operating the bureau of internal revenue. During the years of organization operating costs may equal 15 per cent of collections, but ultimately it is hoped that such costs will not exceed those for maintaining the customs service. Even during the first two months of operation of the internal revenue service costs were considerably less than the 15 per cent operating allowance, as shown in Table No. 30, in spite of the fact that during this period many unusual expenses for materials and supplies were required. As in the customs service so in the internal revenue service expenses are subdivided into categories. Table No. 31 shows the distribution of expenses for administration, and Table No. 32 shows the cost of the actual collection of taxes throughout the Republic. It is inevitable that at first administrative expenses will be relatively high, but as the problems of organization are solved administrative expenses decline or at least should not increase proportionately with collections.
TABLE NO. 30
OPERATING ALLOWANCE OF INTERNAL REVENUE SERVICE FISCAL YEAR 1923-24

FIFTEEN
PER CENT EXPENSES SURPLUS
ALLOWANCE

Gourdes Gourdes Gourdes
August and September, 1924.----- -------------------------- 110,195.90 75,254.27 34, 941.63
I An amount not to exceed 15 per cent of internal revenue collections is allocated by the law of June 6, 1924, for the operation of the Internal Revenue Service.
TABLE NO. 31
EXPENSES OF ADMINISTRATION OF INTERNAL REVENUE SERVICE BY CATEGORIES AND MONTHS
FISCAL YEAR 1923-24

MATERI- TRANSSALARIES ALS AND PORTA- MISCEL- TOTAL SUPPLIES TION LANEOUS

Gourdes Gourdes Gourdes Gourdes Glourdes
August, 1924.------------------------------ 9,346. 67 331.25 1, 277. 40 30.00 10, 985.32
September.-------------------------- 7, 132.35 26, 552.85 45. 00 5, 025. 44 38, 755.64
TOTAL------------------------------ 16,479.02 26,884.10 1,322.40 5,055.40 49,740.96

..





TABLE NO. 32
EXPENSES OF INTERNAL REVENUE COLLECTING OFFICES, BY
CATEGORIES AND MONTHS
FISCAL YEAR 1923-24

MATERI- TRANS- MISCELSALARIES ALS AND PORTA- LANEOUS TOTAL SUPPLIES TION
Gourdes Gordes Gourdes Gourd Gourdes Gourdes
August, 1924--. .--------------------------- 8, 299. 00 ------------------------.445. 00 8, 744.00
September.------.--.--.--------------------. 11, 740. 52 4,401.45 141. 34 486. 00 16, 769. 31
TOTAL.-----------.--.---------------. 20,039.52 4,401.45 141.34 931.00 25, 513.31

In order to keep expenditures for the internal revenue service at a minimum and yet to have experienced supervision of the internal revenue service it was decided that the collectors of customs should also act as collectors of internal revenue. Accordingly, a part of the salaries of the collectors of customs is charged to the internal revenue service, and the collectors divide their time as circumstances require between the customs and the internal revenue services. Moreover, the tax collecting officers throughout the Republic were, so far as possible, removed to the offices of the collectors of customs, so that they could maintain personal supervision. In some instances the customs offices were not adequate to house the internal revenue service, and in such instances additional office space has been planned in connection with the customs and will soon be constructed.
Not only is the collector of internal revenue in immediate charge of the collection of internal taxes in his immediate city but he is also in charge of a comparatively large district in which tax collectors are located as necessary. Thus far the system as outlined above has yielded satisfactory results, and it is expected that this system can be continued for some time until internal revenues have become of sufficient importance to require the undivided time of a competent collector of internal revenue in each of the financial districts. The expenses of internal revenue collection for the various districts and for the central administrative office are presented in Table No. 33, and the percentage costs of collection are shown in Table No. 34.
Too much reliance should not be placed on either the total costs or upon the percentage costs'as the period covered is only two months. Nevertheless it is gratifying to note that expenditures were only about two-thirds of the 15 per cent contemplated in the law. In view of the special difficulties and expenses of the initial period it may be considered that an operating ratio of 10.24 per cent was very satisfactory indeed. As in the case of the customs service so for the internal revenue service the 15 per cent is expected not only to cover costs of

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54


operation but also to pay the 1 per cent commission to the Banque
National de la R4publique d'Haiti for its services in receiving collections.
TABLE NO. 33

EXPENSES OF ADMINISTRATION AND OPERATION OF INTERNAL REVENUE SERVICE, BY DISTRICTS

FISCAL YEAR 1923-24


AUGUST SEPTEM- TOTAL
BER


Gourdes Gourdes Gourdes
Administration.-----------------------.---.---------------------- 10, 985. 32 38, 755. 64 49, 740. 96
Aquin-------.--------------------------------------------------------------. 75. 00 75. 00
Cape Haitian.-----------------------------------.-------------.---. 1,899. 00 2, 565. 12 4, 464. 12
Cayes----.-----.-------------------------.------------------------- 995. 00 2,100.87 3,095.87
Fort Libert -. 10. 0 1, 25. -8
Gonaives-------------------------------------------------------- 790.00 1,426.99 2,216.99
Jacmel---------------------------------------------------------- 510.00 1,259. 58 1, 769. 58
Jfr6mie--------------------------------------------------------- 450.00 1, 088. 73 1, 138. 73
Miragoane------------------------------------------------------------------ 391. 75 351.75
Petit Goave ------------------------------------------------------ 505.00 1,467.82 1,972.82
Port au Prince.-------------------------------------.-------------. 2, 810. 00 3, 588. 35 6, 398. 35
Port de Paix -----------------------------------------------------. 397. 50 1, 178.27 1,575. 77
St. Marc------.------------------------------.--------------------. 387.50 1,626.83 2,014.33
TOTAL.----------------------------------.----------------1, 729. 32 55,524.95 75, 254. 27



TABLE NO. 34

COST OF COLLECTING ONE GOURDE OF INTERNAL REVENUE,
AVERAGE INCLUDING EXPENSES OF ADMINISTRATION 5

FISCAL YEAR 1923-24


AUGUST SEPTEMBER TOTAL


Gourdes Gourdes Gourdes
Aquin.-------------------------------------------------------------- -. 0.046 0.028
Cape Haitian.----------------.------------------------------------ 0.261 .707 .4095
Cayes.----.---------------------------------------------------- .408 .241 .2650
Gonaives.----.--.--.----------------------------------------------. .143 .202 .1766
Jacmel .---.---------------.------.---------------------------.----.-- .208 .423 .3310
Jbrsmie.--.-------------------------------------------------------. .203 .280 .2521
Miragoane---.-----.--------------------------------------.--------- .--- 590 .3209
Petit Goave-----.--------------------------------------------. .076 .730 .2298
Port au Prince --.--.---.------------------------------------------.--.008 .011 .0097
Port de Paix ---.---.---.-------------------------------------------. .148 .398 .2782
St. Marc .--------------------------------------.------------------. .091 .193 .1451
AVERAGE ---. .0520 .1565 .1024

I The expenses of administration obviously can not be distributed among the costs of each financial district, but they are included in computing the general average,


CUSTOMS RECEIPTS


History is always informative, and there is no better method of

evaluating the present than by comparing it with the past. Unfortunately the requisite data for comparing the present situation of

Haitian finances with that of former periods have been incomplete,
and there is much internal evidence to indicate that such statistics

..





55


as exist are none too accurate. It should be recognized therefore,
that the income statistics of the Haitian Government from 1889-90
to 1923-24, which are presented in Table No. 35 must, for the earlier
years, be considered as estimates,, but estimates which have been
carefully calculated and are believed to present a reasonably accurate
statement of the facts.
Prior to'1911-12 the income of the Government was not classified into
customs and internal revenue receipts and receipts from imports and
exports were not segregated. Algo prior to 1916-17 miscellaneous
customs receipts were not reported separately. In 1923-24, moreover,
the method of computing miscellaneous customs receipts was radically
changed so that all customs collections except import and export
duties are classified as miscellaneous receipts. It is believed that
this method is considerably more accurate than to carry most of
such items as receipts from imports, as was formerly done.


TABLE NO. 35

REVENUES OF HAITI, BY SOURCES AND WITH FLUCTUATIONS IN
THE EXCHANGE VALUE OF THE GOURDE COMPUTED

FISCAL YEARS 1889-90 TO 1923-24


CUSTOM RECEIPTS
INTERNAL WISCEL- TOTAL REREVENUES ANEOUS CEIPTS
Impbrts Exports Mi s Total RECEIPTS
laoues

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
189-90 ------.-- ---------- --------- 31,533,254.85. 31,533,254.85
1890-91 -- ------------_ .__ . 40, 868, 026.30 .-- 40,868,026.30
1891-92 ::::: : .I ----------- -- 34, 799, 016. 95 ------ 34,799,016.95
189293---------- ----- 34,880,361.45 .----------------------. 34,880,361.45
189394 .-------.-----------------.--.--. 33, 853, 640.75 . 33, 853,640.75
1894-95 ------- --------------. ---------- 34, 917, 258. 60 . 34,917, 258. CO
1895-96 .--------------------------------------28,047,666.65 . 28, 047, 666. 65
1896-97---.-----------------------------. ----------30. 665, 202.15 .---------- -------- 30, 665,202.15
1897-98 ------ -------------- ---------------------23,753,709.25 .------------- .--------- 23,753,709.25
1898-99. ------------------ -------------- -------19, 467, 977.35 I 19,467,977.35
1890-1900.----------.----- ---------I 24,416,719.00 ----------- 24,416,719.00
1900-01. --. --------------------- 21, 986,480.60---:: ----------:::::::: 21,986,480.0
1901 18,84,716.35 18,834,716.35
1902-03 ------ -------------- 17,517,062.85 _-------------. ---------. 17, 517,062.85
1903-04 _----. .--------.----- 20,087,928.90 -. 20. 087,928.90
1904-05 .---- .-------. 13, 741,365. 95 13, 741,365.95
1905-06 ----.-- ---------. 16, 695, 679.00 --------. 16, 695,679.00
1906-07 .------.------------. 11,077,500.00 -------.----.---------- 11,077, 500. 00
1907-08----.------------.--------------.---------- 10524,189.40 .---------------------- 10,524,189.40
1908-09 ------. ----------------------------------- 15,014,393.45 -------------.--------- 15,044,393.45
1909-10 --. ---_-~----__-----_ --_--_ __------ -- _-. 23, 014,530.50 ----------------. 23,014,530.50
1910-11 ._ .-.-. -- 20,520,595.90 ----------. 20, 520, 95.90
1911-12.-- 13, 652, 334.70 19,814,008.75 .---------- 33,465,243.45 912,014.55 34,377,258.05
1912-13 -.-- 15,176,348.80 10, 280,211.4 .---------- 25456,560.20 670, 522.20 26,127,082.40
1913-14--. 10,637,856.40 13,413,711.1 ----------24,051,567.50 706,709.70 .--------- 24,758,277.20
1914-15 8,68,408.45 6,441,318.45 262,538.80 15,372,265.70 353,533.40. 15,725,799.10 1915-16 12,970,092.55 9,201,376 ---------- 22,171,468.85 543,610.05 .---------- 22.715,078.90
1916-17 --. 9, 736. 057.28 8,473,752. 3 5,897.52 18,215,707.15 717,005.60 1,971.95 18,934, 84.70
1917-18. 7,784,253. 80 7,331,366.55 13,665. 10 15,129,285.45 911, 203.40 7,901.90 16,048,390.75 1918-19 ._ 12,264,105.80' 16.503,370.20 13.611 90 28,781, 087. 90 1,159, 974. 00 14,871.55 29,955,933.45
1919-20-. 18, 898,013.741 13,143,137.45 31, 877. 91 32. 073,029.1 10 188, 174.99 38, 24. 70 33, 997,450. 79
1920-21 9,816,687.88 8.184.194.70 29,982.42 18.030,865.00 1,897,171.70 18,059.00 19,946,095.70
1921-22. 13,247,038.18 10,077,988.15 41,543.37 23, 36, 569. 70 1,580,246.77 17,979.25 24,964,795.72 1922-23 16, 815, 500.17 12,12,312, 916.60 64,169.58 29, 192, 586.35 2, 699, 443.24 58, 071.5 31,950,101.24 1923-24. --- 19,415,707.84 9,984,701.92 50, 497. 38 29,950, 907. 14 2,795,870. 531155, 543.66 32,902,321.33

..





Turning to the figures themselves there may be stated some of the difficulties encountered in presenting comparable data throughout the period. In the first place revenue collections have been made in both United States dollars and in gourdes, and in the second place the value of the gourde as compared with the dollar has fluctuated widely in practically every year prior to the monetary reform agreement of May 2, 1919. Consequently it has been necessary to ascertain the number of gourdes collected from year to year, compute the average rate of exchange between gourdes and dollars for the year in question, convert gourdes into dollars at that rate, and then convert the resulting total figure by multiplying by five, in order to obtain the value of receipts on a comparable basis with the receipts in gourdes of to-day. The result of reducing revenues to a comparable basis for each year of the entire period makes available some very interesting facts. It appears that from 1890-91 to 1894-95 Haiti experienced a period of financial prosperity which has been unequalled since that time, but it also appears that the present trend is definitely upward and within a short time the total income of the Government should equal or exceed any former period in the history of the Republic. History also reports that during the early nineties, when revenues were running at a maximum, was the very period in which the most substantial prosperity prevailed in Haiti and in which the most important public works projects, prior to the American intervention, were achieved.
Following 1896-97 there was progressive financial deterioration due to political turbulence, until in 1907-08 the revenues were only one-quarter of those of 1890-91. As a matter of fact, throughout the period from 1897-98 and including 1914-15 the income of the Government was on an unsatisfactory basis with the exception of the two years 1911-12 and 1912-13. Following the American intervention in 1915 not only was there a period of domestic readjustment and reorganization, but the European war had created an entirely abnormal world situation which affected the income of the Haitian Government as well as that of every other country. Following the termination of the war there was experienced the ill-fated period of inflation of 1918-19 and 1919-20, during which the revenues of the Haitian Government were practically double those of the year 1917-18, and then followed the collapse of 1920-21. From the low point, which was reached that year, of approximately Gds. 20,000,000 the income of the Government has steadily and satisfactorily increased until it amounted to almost Gds. 33,000,000 in 1923-24. The latter figure compares very favorably with any other financial year in the period under review, and as the trend in revenues is definitely upward it may be stated with assurance that even greater revenues will be recorded in the year 1924-25 and the following years.

..





It may be frankly admitted that the financial results of the earlier years of American participation in Haitian administration were not particularly favorable, but this fact was due to causes over which neither Haiti nor the United States had control, namely, the European war. Since the disturbing conditions incident to the war have begun to lose their effect the results.of the policy of developing the income of the Government as well as of expending that income in a productive manner have become increasingly apparent. Not only are the revenues of the State at present upon a moderately satisfactory basis, but the contribution of these revenues does not constitute as great a drain upon the economic resources of the population as was formerly the case. As agricultural, industrial, and commercial development proceeds the proportion'of total income of the people which is necessary for the conduct of the Government should gradually decline, thus permitting a corresponding increase in the standard of living. Much evidence exists that this process is already under way.
The foregoing brief review of governmental receipts has included all of the income of the Government because statistics of revenue merely reported totals down to 1910-11. Subsequent to that date it is possible to differentiate between customs and internal revenues and also to segregate receipts from imports and those from exports. It is the latter group of data which will now be discussed.
Beginning with the year 1911-12 revenues from exports were approximately 50 per cent greater than those from imports but that year showed by far the largest income from exports of any year for which separate statistics are available. On the whole there has been a tendency for import receipts to increase and for export receipts to decline, or merely to remain stationary. As the tariff rates have not been materially changed throughout the period it follows that smaller or stationary export revenues also imply no definite increase in the volume of Haitian products which were sold abroad. Moreover, as coffee represents the dominant item of export it may be stated that receipts from exports in a general way fluctuate with the quantity of coffee exported in any given year. However, during the last few years there has been gratifying evidence that sugar and cotton will soon dispute the paramount influence which coffee has for so long exercised upon the public and private economy of Haiti.
This office does not share the belief of some persons that import taxes are legitimate, but that export taxes are improper. When properly adjusted as to rate and as to the commodities subject to taxation, income from export duties is equally justifiable as any other form of taxation. As a matter of fact, not only does the

..





amount deducted from the income of the population for the use of the Treasury in the form of export taxes constitute the same economic burden as an equal amount received in taxes on imports, but even the incidence of such taxes is approximately identical, at all events in such a country as Haiti where agricultural pursuits occupy the time of some 95 per cent of the population. Furthermore, export taxes have long constituted an important part of the revenue system of Haiti, and consequently such taxes have been absorbed or capitalized, or in some manner their effect has been fully discounted in all commercial operations and price calculations. Finally, the experience of other countries with export taxes has been satisfactory, and little evidence is available to show that properly imposed export taxes are any greater discouragement to industry, agriculture or commerce than are equally productive taxes on imports.
On February 29, 1924, the council of state approved a law increasing the visa tax on imports from 1 per cent of the value of imported merchandise to 4 per cent of such value. This law became effective on March 15, 1924, and was designed to give the Government a somewhat larger income, in order to bring about a balance between receipts and expenditures. As a matter of fact even with the more productive visa tax, resulting in a considerably larger income from imports in 1923-24 than in any prior year, payments of the Government slightly exceeded receipts for the year just closed. It is evident therefore, that there was real necessity for the increase in the visa tax, assuming that all appropriations were economically justifiable. As receipts from imports have virtually doubled since 1920-21 and as the rates of duty on imports have but slightly increased there are no better evidences of the enlarged purchasing power with corresponding well-being on the part of the Haitian people. As the effects of productive expenditures within the past few years begin to make themselves felt there is every reason to expect that receipts from imports will continue to expand.
Correct financial administration depends upon an accurate adjustment between income and outgo. For this reason the periodicity which characterizes the income of the Haitian Government is a matter of no small concern to the financial authorities. As may be calculated from the data presented in Table No. 36, income from customs during October is approximately one-twelfth of the annual total. From that point the percentage of total income received in each month rapidly increases during November and December, the latter month showing the maximum percentage of the year, and thereafter there is: a slight decline in January and a sharp decline for the following months, culminating in the month of July when income from customs is little more than one-half as much as in December.

..




59

The percentage of income from customs received each month over the last five-year period is as follows:


October Noven Decem January Februa March AprilMayJune_July Augus Septer


Per cent
er .----------------------- . 8. 74
ber -- 10. 03
obr_- __L_------_------ 7 --------iber ---_------ ---------------- 11. 39
ry --------------------------------- 10. 30
ary -------------------------------- 8. 74
---------------------------------- 9.42
- -- #- 8. 60
---------------------------------- 7. 00
.----------------------------------- 6.90
5. 73
t ----.------ ----------------- 6. 15
aber .------------------------------- 7. 00
TOTAL.---------------------------- .100.00


For the receivership period the details of customs collections are presented by months, together with totals, in Table No. 36. That table indicates that the year 1923-24 closely followed the five-year average, except that revenues were concentrated somewhat more than usual in the first half of the fiscal year.
Customs receipts by ports for the period of the receivership are shown in Table No. 37. On the whole, revenues collected in the several customhouses have a close similarity to the volume of commerce passing through the ports, though there are certain divergencies, according as the ports are principally characterized as import or export centers. As certain export products are either untaxed or taxed very lightly it follows that the ports specializing in those commodities do not show customs revenues proportionate with the value of the merchandise handled. For the year 1923-24 collections of the several customhouses varied somewhat from the average for the period, particularly in the case of Cape Haitian, the relative position of which was not maintained, and in the case of Cayes, the relative importance of which considerably increased. Petit Goave also showed a substantial decline in receipts from the preceding year as opposed to increased collections at J6r6mie and St. Marc.
43915--25t---5

..




















October November. December January. February March. A pril.

June July. .
August. September.
TOTAL .


TABLE NO. 36

CUSTOMS RECEIPTS, BY MONTHS FISCAL YEARS 1916-17 TO 1923-24 1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 TOTAL


Gourdes
1, 264, 221.79 2, 010, 951. 00 2, 250, 253. 90 S2, 103, 407. 80 1,570, 591.70 1,773,146. 93 1,015, 109. 83 1,369,610.14
1,738, 944. 20 1,193,955.14 1, 020, 064. 66
985, 594. 96


Gourdes
826,407.95 1,265,103.67
1,108,042.42 1,159,289.36 1,325,368. 69 995,440.77 1,305,495.657 1, 590,270.61 1,021,526.03
1,049,494.82 1,723,993. 91 1,738,862. 45


Gourdes
1,271,795.50 1,950,378.86 2,397,726.40 2, 864,815.95 3,201,073. 21 3,138,914.75 3,693,411.06 2,403,774.18
2, 986,722. 26 1,442,038.29
1,802,429.64 1,490,531.25


Gourdes
2, 203, 830. 11 2, 237, 639. 58 4,062,883.07
4,018,532.95 3, 010, 886. 53 3,030, 207.61 2,757,579.78
2, 413, 281.91 2, 427,149. 04 2, 019, 142. 40 2, 003, 331.80 1, 888, 564.32


Gourdes
2,028,375.05 1,602,091.76 1,159,061.37 1,394,708. 45 1,286,910.21
1,448,927.95 1,776,437.36
1,038,235.59 1,536,758.28 1,516,180. 89 1,501,476.91 1,741,701.18


Gourdes
2, 266, 419.11 2,746,774.92 2,614,327.78
2, 221, 222.54 1,727,043. 30
2,474,134.54 1,952, 743.17 1,734, 815.82 1,508,166.49 1, 106,108. 32 1,404, 575. 36 1,610, 238.35


Gourdes
2, 334,333.47 3,046,438.97 3,476,350. 92 2,708,034.39
3,069,606.76 2,840,105.33
2,696,799.51 2,057, 070.13
1,812, 552. 83 1,437, 358.58
1,661,708. 87 2,052,226.59


Gourdes
2, 767, 890. 81 3,674,196.52 3,793,955.15
3, 317,806.82 2, 476, 503. 60 2,699,204.868
2, 201,294.48 2, 065, 892. 60 1,813,558.87 1, 520, 628. 69 1,599, 089. 95 2, 020, 884.79


I.- I- I -


18,295,852.05 15,109,296.25 28,643,611.351 32,073,029.10 18,030,865.00 23,366,569.70 29,192,586.35 29,950,907.14


Gourdes
14, 963, 273. 79 18,533, 575.28 20,862,601.01 19, 787, 818. 26
17,667,984.00 18, 400, 082.74 17,398,870.76 14, 672, 950. 98 14, 845, 378. 00 11,284, 907. 13 12, 716, 671.10
13,528, 604. 59

194,662,716.94 0


---- --- ---

..














Aquin. Bellad~re. Cape Haitian. Cayes. Fort Libert6. Glore. Gonaives.---------.
Jacmel. Jrmie.--------------------Miragoane------.---.
Ouanaminthe.-.-. Petit Goave. Port au Prince.-----. Port de Pai .-----.--.
St. Marc ----. .-----.---.-TOTAL.


TABLE NO. 37

CUSTOMS RECEIPTS, BY PORTS FISCAL YEARS 1916-17 TO 1923-24 1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 TOTAL


Gourdes
94,114. 64 3,088. 45 3,124,863.83 1,709,564.19
57, 486.39
696.75
1, 726,990.98 1,702,657.92
1,047,356.57 290,566.43 22,614.81 1, 272,103. 61 5, 564, 664.39 1,001,265.03 677, 818. 06


Gourdes
20, 656. 45
6,622. 60 2, 019, 320. 27 1,242, 512. 83
22,146.18
306.72 783, 318.18 1, 563, 905.42
722,388.49 63,990.66 21,474.98 698,727.67 6, 833, 939. 30 518,137.17 591, 849. 33


Gourdes
177, 269. 95
129. 34 4, 002, 279. 90 2, 266, 004.67
81,062.11
1,869, 691. 57 3, 225, 948. 63 1,277,581.17
413,976.94
3,433.40 1, 580,478.41 11,800, 911.09 1,103, 826. 53
841,017.64


Gourdes
220, 749. 69

4, 142, 743.20 2, 573, 887. 56
131,568.75

1,618,892.01
2, 442,530.79 1,075,735.78
303,277.00
1,401.67 1,744,348.82 15,139, 101.58 1,279,262.26 1,399, 529.99


Gourdes
111, 237.41 .----.------2,606, 272. 26 1, 760, 405.30
18, 280. 36
863, 083. 05
1,466,978.00
505,656.61 306, 910.71
2,375.76
812,642.72
8,363, 510. 00
726,125. 04 487,387.78


Gourdes
82, 730.86
227. 17 3, 009, 051. 87 1, 868, 756. 83
3,187.12
389.24 1,503,659.07 2,109,611.22
563,893.16 361,735.59
3,425.04 1,274,305.87 10,759,378.67
874, 426.15 951, 791.84


Gourdes
265, 202. 82
151.24 3, 262, 065.03 2, 995, 875. 03
69, 268.22 1,068.42
1,723,047.33 2, 886, 990. 06
761,453.75 678,225.83
4,474.59 2, 300,136. 29
12,150,442.35 1127, 215. 90
966, 969:49


Gourdes
311,694.14
711.89 2,879,275.29 3, 870, 369. 87 205. 85 899.12 1,758, 531.05 2, 668, 272.62 1,010,686.47 576,371.77
6, 005.98 1,978,187.51 12,477, 230.83
1,238, 443.17 : 1,174,021.58


Gourdes
1, 283, 655. 96
10, 930. 69 25,045,871.65 18, 287, 376.28
383, 204.98
3,360.25
11,847, 213.24
18,066, 894. 66 6,964,752.00 2,995,054.93
65,206.23
11,660,930. 90 83, 09,178.21 '3
7,868,701. 25 7,090, 385.71


194, 662,716.94


18, 295,852.01 15,109,296.251 28,643,611.35 1 32,073,029.10 18,030, 865.00 23, 366, 569 70 29, 192,586.35 29, 950, 907.14

..






The distribution of collections at the various customhouses between revenue from imports, exports, and miscellaneous items is shown in Table No. 38. Ports of relative importance for exports as compared with imports were Aquin, Gonaives, Jacmel, J~r6mie, Miragoane, Petit Goave, and Port de Paix while the ports where receipts from imports largely exceeded those for exports were Cape Haitien, Cayes, St. Marc, and particularly Port au Prince. At the latter port receipts from imports were five times as large as those for exports. This was to be expected, as Port au Prince is not only by far the most important city of the Republic but is also the political, administrative, and commercial capital, a situation which always
is reflected in relatively heavy imports.
The distribution of income from imports, exports, and miscellaneous customs receipts over the several months of the fiscal year is shown in Table No. 39. Concentration of export movement in November to March, inclusive, is quite evident and indicates the need of providing productive activities for the population during the present "dead season". Full details of customs receipts by sources, by months, and by ports are presented in Schedule 3 at the end of the present report.

TABLE NO. 38
CUSTOMS RECEIPTS, BY SOURCES AND BY PORTS FISCAL YEAR 1923-24

IMPORTATION EXPORTATION MISCELLANEOUS TOTAL

Gourdes Gourdes Gourdes Gourdes
Aquin--------------. ------------------- 84, 372. 93 223, 627. 00 3, 694. 21 311, 694. 14
BelladBre .---------------------------- 711.89 -------------------------------- 711.89
Cape Haitian.------------------------- 1,778,161.99 1,050,767.70 10,345. 60 2, 879, 275. 29
C ayes .--------------------------- 2, 565, 992. 89 1, 213, 539. 85 90, 837. 13 3, 870, 369. 87
Fort Libert----.------------.----------- 205.85---------------- 205.85
Glore ---.------------------------------. 850.12 49.00 --------------- 899.12
Gonaives.------------------------------ 83,803.23 873,455.80 21,272.02 1,758,531.05
Jacmel.-------------------------------- 1,337,991.43 1,302,732.75 27, 548. 44 2,668,272.62
Jrmie.-------------------------------- 521,060.34 478,627.05 10,999. 08 1,010, 686.47
Miragoane .-- .------------------------ 266, 908. 36 300, 269. 10 9, 194.31 576, 371. 77
Ouanaminthe.-------------------------- 5,685.23 320.75 -------- 6,005.98
Petit Goave--.------------------------- 563, 748. 50 1,398,906. 60 15, 532.41 1,978,187. 51
Port au Prince--.----------------------. 10,177, 117. 16 2,045, 368.17 254,745.50 12,477,230.83
Port de Pax .---------------------------. 468, 738. 36 748,580. 80 21,124. 01 1, 238, 443. 17
St. Marc .------------------------------- 780,359.56 348,457.35 45,204.67 1,174,021.58
TOTAL.----------------------. 19,415,707.84 9,984,701.92 550,497. 38 29,950,907.14

..



63

TABLE NO. 39
CUSTOMS RECEIPTS, BY SOURCES AND BY MONTHS FISCAL YEAR 1923-24

IMPORTATION EXPORTATION MISCEL- TOTAL
LANEOUS

Gourdes Gourdes Gourdes Gourdes
October, 1923. -------------------------1,994, 442. 76- 765, 975. 50 7, 472. 55 2, 767, 890. 81
november .----------------------------. 2, 243, 683. 67 1, 422, 566. 10 7, 946. 75 3, 674, 196. 52
December.----------------------------- 2,079, 214.85 1,707,763. 55 6, 976. 75 3, 793, 955. 15
January, 1924.--------------------------. 1, 732, 812. 93 1, 578, 459. 45 6, 534. 44 3, 317, 806. 82
February .-----------------------------. 1, 163, 397. 21 1,307, 907. 65 5, 198. 74 2, 476, 503. 60
March --------.---.----------------.------. 1, 535, 310. 02 1, 157, 378.75 6, 516. 09 2, 699, 204. 86
April.--------------------------------- 1,560, 010. 23 636, 177. 70 5, 106. 55 2, 201, 294. 48
May.--------------------------------- 1, 558, 649. 83 497, 957. 45 9, 285. 32 2, 065, 892. 60
June . 1,338, 653. 87 345, 745. 72 129,159. 28 1, 813, 558. 87 July.-------.---------------------------. 1,231,963. 51 174, 589. 85 114, 075. 33 1, 520,628. C9
August.--.----------------------------- 1, 374, 752. 00 111, 169. 40 113, 168. 55 1, 599, 089. 95
September----.------------------------. 1, 602, 816. 96 279, 010. 80 139, 057.03 2, 020, 884. 79
TOTAL . 19,415,707. 84 9,984,701.92 550,497.38 29,950,907.14


INTERNAL REVENUE RECEIPTS

A summary of internal revenue receipts from 1911-12 to 1923-24
has already been presented in Table No. 35. From 1911-12, when internal revenue receipts were first reported separately, there has been an increase of 200 per cent in such revenues. This showing is gratifying, were it not for the fact that such income even in the fiscal year just closed, which showed the largest internal revenue
receipts in the history of the Republic, constituted only 9.19 per cent of the total income of the Government. Undoubtedly internal revenues must be expanded until they equal or exceed customs receipts before Haitian finances can be considered upon a satisfactory basis.
In Table No. 40 are presented the statistics of internal revenue collections by sources, from 1919-20 to 1923-24. This table indicates clearly that much of the tax legislation at present on the statute books is undesirable. Of the thirty kinds of taxes reported
separately, one-half yielded less than Gds. 10,000 each in 1923-24. Taxes of such low yield may very clearly be described as nuisance taxes, since their productivity does not warrant their maintenance as a part of the revenue structure of the Republic. In addition numerous taxes are grouped in the designation "miscellaneous," and these items combined yielded less than Gds. 14,000. They also should be abolished except where they are of a regulative character.

..







TABLE NO. 40

INTERNAL REVENUE RECEIPTS BY SOURCES

FISCAL YEARS 1919-20 TO 1923-24


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

Gourdes Gourdes Gourdes Gourdes Gourdes
Rental of public lands--------. 120,335. 24 49, 693. 36 66, 621.36 65, 783. 13 70, 908. 77
Document registration--.--------. 277,198. 61 147,083. 17 165,499.90 169,201.21 149,342.43
Mortgage fees.--. --------------109, 707. 98 52, 336.43 62988. 85 58, 455. 69 71,080. 88
Court fees-------. -----. 9,064.35 6,828.02 6,267.27 6,966.20 6,609.48
Manifest visas.--------------. ---. 3,476.79 2, 475. 00 12,434. 00 7, 250. 00 4,029.00
Occupational licenses -----------170, 424. 40 170, 298. 80 177,130. 75 185, 769. 95 173, 363. 88
Fines and penalties.------------. 659. 15 1, 347. 95 1, 374. 00 3, 722. 62 2,326. 32
Income tax.------------.-------. -----------211, 246. 77 156, 140.38 745,139. 33 296, 526. 26
Registration and births, deaths,
etc .------------------------ 12,507. 25 .-----------.--------------. 82, 541.45 70,994.77
Passport fees .----------------- 291, 257.50 244,149.25 31, 710.00 69,525.00 78, 748. 75
Irrigation taxes---------. --. 1, 878.70 15,406. 88 3,583. 27 5,753. 58 8,353. 61
Stock transfer tax.---.----.--------. 1, 880. 00 22,601.30 35,181.40 72,162. 25
Public auction fees.--------. 13,142. 52 3, 824. 01 2,718. 38 2,115.97 3,674. 74
Telegraph receipts.-------------. 158, 686. 30 130, 604. 70 157,867.70 209, 970. 00 226, 741.65
Water receipts. 76,231.10 207, 843. 57 203,750. 90 209, 336. 62 199, 377. 67
Consular fees. --------48,937. 60 93, 136. 10 83,190. 85 82, 585. 00 100,791.00
Trade marks------.--------.-------. 2, 887. 50 3, 517. 50 3,247. 50 7, 095. 00 8,150. 00
Patents .----------------------.---------------------------- 6;750.00 2,775.00
Official Gazette.----------------- 1,889.95 1, 086.50 1, 240. 48 115. 50 1,027.05
Emigration fees-----------. ---------.-------------. 330, 560.00 868,861.00
Concessions:
Port do Paix Co--.------.------ 6,000.00 6,000.00 6,000.00 6,000.00 2,000.00
Ile Vache. --------------- 2,538. 65 2,500.00 2,500.00 1,875.00 3,125.00
Mangrove bark------. ----. 1, 920. 50 . .
Ile de la Tortue.-------. -------------- -------------- 4,609.42 ----------Revenue stamps .--------------- 213,799.80 207,736. 71 184,322. 151,22.01 168,515.58
Postage stamps.--------------. 148, 481. 08 122, 342. 31 122,118. 53 130, 649. 21 119, 147. 96
Stamped paper------.----------. 189,773.70 137, 028.07 73,072.30 87, 773. 10 49, 946. 73
Post office boxes-----------.------. 6, 814. 14 7,882. 25 7, 928. 25 6,249. 30 8, 734. 15
Stamped check books. ---------- 7, 869. 40 5,063.20 6,607.30 10,799.20 9, 599. 60
Stamped commercial books. 3, 939. 40 2, 650. 60 3,262.10 2,528.40 2, 163.10
Escheated estates. ------------ ------------. 181.33 2,448.82 2,902.65
ApprentiCe lawyer fees- ----------------------------- 25.00
Miscellaneous .------------------- 6,753.38 63,210.55 11,278.50 15,780. 55 13,866.25
TOTAL .-------------------. 1,886,174.99 1,897,171.70 1,580,246.77 2,699,443.24 2,795,870.53


Considering the more important internal taxes, it is found that
emigration fees constitute by far the most important source of internal revenue, accounting for 31 per cent of the total. The question
of taxes on emigration raises economic questions of considerable
difficulty and in regard to which the opinions of competent persons
are in sharp disagreement. One group believes that emigration is in
itself an evil, as it is denuding Haiti of its labor supply and thus tending
to retard development. This group is of the opinion that restrictions
upon emigration should be imposed in the form of high emigration
taxes or otherwise. The other school of thought takes the position

that the population of Haiti is at present greater than the productive
capacity of the country and that there is a definite gain by the removal of labor which can find no remunerative employment at home.
As a large percentage of Haitian emigrants, who for the most part go
to Cuba to assist in the sugar harvest, return to their native country
and usually bring a considerable portion of their earnings with them,
it is argued that emigration is beneficial rather than detrimental,

..




pending the time when the agriculture and industries of Haiti are adequate to supply lucrative employment to the entire population. In the opinion of this office arguments of merit can be presented by both schools of thought, but the preponderance of evidence seems to be in favor of the latter. Accordingly, effort should not be concentrated upon devising restrictive measures to prevent Haitian laborers from leaving the country, but every effort should be directed toward increasing the productive capacity of the country so that laborers will have no motive for leaving.
Next in importance to the tax on emigrants is the income tax, but the revenue from this source only represented about one-third of that from emigration. Unfortunately the income tax legislation of Haiti is so badly drafted that administration is exceedingly difficult. On the one hand it is possible to evade the payment of income taxes altogether or at least to pay far less than contemplated by the law. On the other hand the law unquestionably imposes certain hardships. Thoroughgoing revision of the entire income tax structure is necessary, and indeed it is quite open to question whether Haiti is at present prepared for the application of an income tax. Tax authorities ordinarily take the position that the taxation of incomes is primarily adapted to highly organized industrial countries rather than to those where agriculture is predominant. 'Next in importance among internal revenues are receipts from the telephone and telegraph service. As this service is owned and operated by the State, revenues do not in reality represent an addition to resources for ordinary governmental purposes, since the telegraph system is not as yet self-supporting. However, it is new and capital expenditures for its establishment and extension have necessarily been heavy. There is every reason to believe that as the period of installation draws to a close this service can be placed upon a profitable operating basis.
The service of water supply in Port au Prince and several other cities of the Republic is also owned and operated by the Government, and income from the sale of water enters the treasury as receipts. As contrasted with the telephone and telegraph, income from water supply more than pays the expenses of operation. It is hoped that within a short time the system of metering water may be established, as at present water is very wastefully employed due to the fact that it is paid for only at fixed rates no matter how much is used.
Other important internal taxes take the form of occupational licenses, revenue stamps, recording of documents, postage stamps, and consular fees, in the order of their respective importance. Some of these taxes and similar taxes should be maintained and possibly extended in scope, but there should be a definite effort to utilize

..





fewer tax sources and to obtain greater income from each of those sources. Undoubtedly the most glaring defect in the internal tax structure is the absence of adequate taxes on the production and sale of alcohol and tobacco and taxes on the ownership or rental of land. At the present time careful study of the entire revenue system is being made, and it is hoped that at the close of the present fiscal year substantial progress on the solution of the problem can be reported.
Table No. 41 presents internal revenue statistics by districts from 1919-20 to 1923-24. As in the case of customs, so for internal revenue, Port au Prince showed the largest collections. Indeed the proportion of the total receipts in the Port au Prince district is much larger than in the case of customs receipts. This is principally due to the fact that all emigration taxes are payable only at the capital. For all practical purposes the same statement has been true of the telephone and telegraph, of water supply, of consular fees, of postage stamps and of revenue stamps. Cayes was the second city in importance for internal revenues, Cape Haitian third, and upon a very much lower level were the receipts from Gonaives, St. Marc, Petit
Goave, and Jacmel.
TABLE NO. 41
INTERNAL REVENUE RECEIPTS, BY FINANCIAL DISTRICTS FISCAL YEARs 1919-20 TO 1923-24

1919-20 1920-21 1921-22 1922-23 1923-24
Gourdes Gourdes Gourdes Gourdes Gourdes
Aquin--------. ----.--------------- 10,171.17 5,491.27 6,053.30 12,361.02 9,467.77
Cape Haitian.-------------------- 96,373.18 115,098.82 88,986.20 95,127.99 92, 599.9
Cayes-------------.-----------. 238,151.86 203,387.63 41,732.70 103,115.49 117,057.53
Fort Libert------.------------.---. 9,859.40 5,811.63 3,412.20 8,550.20 6,933.29
Gonaives .----------------------- 93,222.41 36,782.19 50,768.45 52,286.15 48,399.25
Jacmel.------------------------. 44,114.54 31,624.88 37,139.97 58,363.63 40,771.43
Jr6mie-----.---------------------14,384.70 15,990.58 19,443.73 33,279.80 32,212.68
Miragoane--.---------------------. 9,080.89 8,592.36 8,943.76 15,276.33 12,765.73
Mole St. Nicolas.--.--------------. 1,458.52 1,167.97 1,080.79 2,097.95
Petit Goave--. .------------------.-- 39,147.25 52,029.95 36,402.43 44,164.44 41,980.08
Port au Prince 1,233,546.88 1,304,733.08 1,216,276.95 2,203,229.58 2,321,660.OT Port de Paix .-----. ----------------55, 024.89 82, 897. 24 36,143.26 35,402.01 26,987. 68
St. Marc -----.---------.---------- 41,639.30 33,564.10 33,863.03 36,188.65 45,035.03
ToTAL.----------.--------- 1,888,174.99 1,897,171.70 1,580,246.77 2,699,443.24 2,795,870.53

The data for internal revenue as distributed over each month of the year are presented in Table No. 42. Seasonal fluctuations are by no means as clearly evident as for customs revenues, the relatively large collections appearing for the month of September being apparent rather than real, because prior to a recent change in accounting procedure arrears in internal revenues after the end of the fiscal year were all credited to the month of September. As a matter of fact October should be the month of the largest collections, as certain annual payments are due in the first month of the fiscal year.

..





INTERNAL REVENUE PERSONNEL
One of the principal difficulties in organizing the Internal Revenue Service has been to obtain satisfactory employes. Since internal revenue receipts are quite small even fQr entire financial districts, except that of Port au Prince,,it follows that the subdivisions of those districts yield only insignificant amounts to the public treasury. Under these circumstances it is impossible to pay salaries sufficient to attract energetic internal revenue employes, yet without satisfactory employes it is difficult to increase receipts from internal taxes. Even on the present modest salary basis for the internal revenue employes the salaries of tax collectors in numerous outlying districts have exceeded their total collections. Obviously such a situation is of direct disadvantage to the State, yet it would be inequitable to fail to collect legally imposed taxes in all of the districts of the Republic, merely because receipts in certain districts are unproductive from a revenue standpoint. It is hoped that as the present taxes of low yield are replaced and as more productive taxes are established the collectors of the outlying districts will be able to make a more :satisfactory showing.
TABLE NO. 42
INTERNAL REVENUE RECEIPTS, BY MONTHS FISCAL YEARS 1919-20 TO 1923-24

1919-20 1920-21 1921-22 1922-23 1923-24
Gourdes Gourdes Gourdes Gourdes Gourdes
October .------------------------- 155, 359. 49 106, 296. 84 149, 861.40 135, 673.20 109, 530. 34
November.----------------------- 83, 480. 96 112, 821. 66 92, 08. 50 80, 737. 33 88, 330. 55
December ----------------------- 59, 875. 41 119, 678. 75 117, 725. 40 118, 944. 31 118, 433. 77
January. ------------------------- 177,916.07 196, 054. 16 187, 750. 92 113, 054. 67 187, 185. 70
February.------------------------ 132, 747.69 263, 497. 74 106,341.60 281,714.14 298, 513.85
March.--------------------------199, 259. 60 90, 329. 13 91,359. 39 322, 133. 22 178, 047. 64
April-----------------.--------- 195,122.07 124, 400. 30 121,919. 72 168, 826. 64 165, 946. 16
May. ---------------------------141,689.68 82, 683. 66 93, 162. 00 703, 435. 98 285, 415. 33
June .----------------- .------------ 89, 436. 54 109, 698. 43 99, 051. 05 156, 562. 27 272, 067. 78
July.---------------------------- 84,957. 65 91,387. 86 135, 237. 79 110,175. 79 357, 760.09
August.---.-------. ---------------204, 185. 75 80, 451. 42 125, 408. 34 154, 449. 35 378, 801. 65
September.--------.-------------- 362, 144. 08 519, 871. 75 260, 220. 66 353, 736. 34 355, 837. 67
TOTAL. 1,886,174. 99 1,897,171. 70 1,580,246. 77 2, 699,443.24 2, 795,870.53


MISCELLANEOUS RECEIPTS

Statistics of miscellaneous receipts have already been presented in Table No. 35 for the fiscal years 1916-17 to 1923-24. These revenues
have gradually expanded due largely to the improving treasury position of the Government. As the financial situation of Haiti has improved and as the cash balance of the treasury has increased continually larger sums have been available for deposit at interest. Such deposits have in large part yielded the sums designated as mis43915-25t- 6

..



68

cellaneous receipts of the Government. Indeed for the fiscal year 1923-24 all miscellaneous receipts were derived from interest on governmental deposits.

GOVERNMENTAL EXPENDITURES

Prior to American intervention there do not exist even approximate statements of annual expenditures of the Government. An examination of such data as exist shows them to be so incomplete and unreliable that their publication would serve no useful purpose. However, from the beginning of American cooperation with the Government of Haiti, financial records were reduced to a more orderly basis, and Table No. 43 presents a summary of all disbursements of the Government since the inauguration of American intervention and including the fiscal year 1922-23. During 1923-24 the method of reporting expenditures was radically changed with the result that disbursements as classified in that year are not comparable with those of the earlier years of the receivership.

..



TABLE NO. 43

EXPENDITURES OF HAITIAN GOVERNMENT, BY SERVICES1

FISCAL YEARS 1916-17 TO 1922-23


GUARANTEED
GENDARMERIE PUBLIC WORKS PUBLCHEALTH PUBLIC DEBT INTERESTAND HAITIAN MIN- EXTIARD- FINANCIAL AD- M CELLA- TOTAL
SERVICE SERVICE SUBSIDIES ISTRIES NARY CREDITS VISER-GENER- TTL
SUBSIDIES TR NARY CREDITS L RECEIVER NEOUS

Goeurdrdes urdrde Gurdues Grdes Gourdees Gourdes Gourdeus Gordes Gourdes
September, 1916. 711, 309. 91 690, 284.08 -------------------------------------. 1,905,047.50 --.89, 850.15 355, 033. 48 3,751,525.12
1916-17.---------- 4,792,156. 10 3,288,031.60 --------------------------- 92, 434. 55 5,131,819. 90 --------------- 796,625.70 1,783,109.95 15, 884, 177. 80
1917-18 .----------. 4,565,238 75 2,700,853.70 889,870.75 ---------------- - 5,547, 88 5 741,015.80 170,089. 60 14,614,997.45
1918-19 . 4, 594, 938. 30 2, 721, 341. 50 958, 756.70 497, 140. 00 175, 099. 15 5, 80, 871.30--- 700, 035. 60 45, 297. 90 15, 499, 480. 45
1919-20.--- 5,415, 377.45 3,199,680.25 1,338,591.30 245,000.00 461,241.15 8,490,246.70 ---------------- 1,380,460.60 116,268.80 20, 646, 866. 25
20-21.---------- 5,114, 593.80 2, 634, 628.15 1,541,482.30 13,170,380.95 406, 771.30 7,005,503.45 .----------------. 1,452,073.10 1, 463,022.85 32,788,455.90
121-22. 5,104, 056.'45 2,451.720.30 1,244,506.25 21,663,345.05 293,995.55 7,483,538.25 188,422.70 1,279,142.25 67,181.60 39,775,908.40
1922-23 -------.--- 5, 226, 550. 60 5.019, 229. 60 1,485, 106. 25 9, 057, 374. 50 206,400.00 7, 811,914.75 232,709.00 1, 438, 506. 15 2, 322. 30 30, 560, 113. 15
TOTAL. 35,524,221.36 22,705,769.18 7,458,313.55 44,633,240.50 1,635,941.70 49,182,830.70 421,131.70 7,877,749. 35 4,082,326.48 173, 521, 524.52

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

..



70

Analyzing the objects of expenditures it will be noted that the cost of maintaining order, as indicated by the expenses of the gendarmerie, has been quite constant. This is principally due to the fact that an international agreement provides for a certain strength in the constabulary and also for specific appropriations for the maintenance of that organization. Disbursements for public works, which were almost entirely neglected during the years antedating American intervention, at once became an important feature of financial ad-, ministration. Except for the two years of depression following the abnormally favorable year of 1919-20, disbursements for public works have shown a tendency to increase. Little argument is required to prove that such an increase was necessary, since at the beginning of American participation in Haitian administration the public works which characterize modern states were almost totally lacking. Moreover, the public works program must be regarded as merely in its initial stages, as Haiti requires the investment of continually increasing sums over a period of many years in the construction of roads, trails, bridges, municipal water systems, irrigation systems, telephones and telegraphs, hospitals, schools, postal facilities, public buildings, wharves, aids to navigation, parks and playgrounds, and the innumerable public comforts and conveniences which are characteristic of progressive countries.
Practically similar statements are applicable for expenditures for the public health service. Disbursements in the interest of public health have shown a tendency to increase, but this work is by no means satisfactory as to scope or equipment, and requires enlarged expenditures over a period of many years before the problem of public health can successfully be solved.
As indicated in the table, payments on the public debt were suspended for the first two years of the American intervention. This was necessary because of the deplorable state of public finances and the absolute necessity of applying all revenues to administration so as to prevent the breakdown of the machinery of government. However, as rapidly as possible payments on the public debt were resumed, and during 1920-21 and 1921-22 all arrears on the external public debt except those on the guaranteed bonds of the National Railroad of Haiti were liquidated.
For 1923-24 it was decided to classify expenditures functionally, and to present financial data separately for each of the principal services of the Government. Disbursements of the Government, classified according to the several objects of expenditure and shown by months, are presented in Table No. 44. It should be understood that all disbursements are reflected, whether the authorizations were in the form of budgetary credits, supplementary credits, or extra-

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71

ordinary credits. Furthermore, the method of accounting was
altered during the year so as to eliminate a so-called period of liquidation, with the result that the statistics of expenditure reflect actual disbursements in the fiscal year without reference to the fiscal years during which authorization for the several expenditures may have been made. In other words,-disbursements have been reduced to a cash basis, representing actual outgo from the public treasury during the specific period under consideration.

..







TABLE NO. 44

RECEIPTS AND EXPENDITURES

FISCAL YEAR 1923-24

EXPENDITURES


OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH


PUBLIC DEBT:
Financial Adviser-General Receiver Internal Revenue Service:
Series A loan.
Series B loan. .
PSio C ln


Wharf Company subvention -----------.Commissions paid to Banque Nationale.
Roberts Dutton & Co., claim.
Cable Company subvention .
P. C. S. Railroad subvention. .
Haitian Construction Co., notes Stamp sales, Discounts and Expense:
Total public debt .
Gendarmerie Foreign relations Finance and Commerce. .
Interior. .
Public Health Service. .
Public Works. .--. Public Works Service. .
Agriculture. Agricultural Service. Public Instruction. Justice.----.-. -.
Religion . .
TOTAL EXPENDITURES FROM REVENUE.-.


Gourdes 88, 579. 59
465, 744. 80 99,223. 80


210,00. 00
863,548. 19 453, 689. 54 105,102. 93 113,831.00 97, 050. 97 112, 858. 79
105, 462. 97 541,958. 26 12, 233. 93
173, 213. 84 111,008.47 28, 253.89


Gourdes
100, 109. 58
465, 744. 80 25, 895. 10


591,749.48 358, 323.47 70, 502. 95 66,948.73 93,209.55
114, 704. 03 89, 654. 17 573, 660. 90 10, 637.06
167, 026. 93 98,356. 84 32,770.55


Gourdes
90, 413. 63
466,671.90 98,218. 20


'--'--:----


206,400.90

861,703.73 476, 663. 53 45,863.32 127,930.70
121,226. 96 123, 060.50 67, 926. 04 716, 989. 24 10, 346. 90
166, 813. 12 108, 719. 47 28, 785. 78


2,718,212.78 2,267,544.66 2,856,029.29 2,228,709.32 3,728,176.11


Gourdes
94, 314. 44

465, 744. 80
7, 321. 75


'----:::-::--:,



567,380.99 430, 995. 98 57, 678. 44 108,750.49 95, 528.76 140, 292.12 78, 677. 25 400, 385. 55 10, 398. 36
191,835.06 109,474. 21 37, 312.11


Gourdes
101, 751.95

465, 744. 80 106, 961. 80


428,383.60 291,925.25 277, 872.35
417,625.45


2,090,265. 20 376,696. 11 40, 581.71 119,586.70 97,164.97 109, 272. 55 78,481.00
479,825.42
10, 682. 57
180,807.78
103,794. 64 41,017.46


Gourdes
96, 067. 67
3,260, 213. 40
20, 005.70
463,962.60 22,878.69
----- - -
----- - -
24,363.70


3,887,491.76
427, 973.03 40, 937. 81
128,809.48 93,435.51
119,450.68 78,315.00 487, 888. 29
10, 308. 76 19,159.97 159, 582. 22 98, 861.32
26,692.14


5, 578, 905. 97


er es os - - - - - --.- - - - I - - - - I - - I - -


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


I


i i i-- -- -- -


1.__.__.~_ __._____ _~ _ _ _


- - - - - - - -


- - - - - - -

..







PUtBLic DEBT:
Financial Adviser-General Receiver. .
Internal Revenue Service .
Series A loan. .
Series B loan .
Series C loan.
Wharf Company subvention.
Commissions paid to Banque Nationale .
Roberts Dutton & Co., claim .
Cable Company subvention.
P. C. S. Railroad subvention.
Haitian Construction Co., notes ------------Stamp sales, Discounts and Expense.
Total public debt. Gendarmerie.----. .
Foreign relations Finance and Commerce.-------. -----------------Interior .------------------------Public Health Service.-.-. Public Works .-Public Works Service. . .
Agriculture----. Agricultural Service Public Instruction. .
Justice .-- Religion. .--. _. .


APRIL MAY JUNE JULY AUGUST SEPTEMBER TOTAL


Gourdes
90,602.21

101, 529. 45

15, 613. 82 536, 302.26


223,915.00
967, 962. 74 521, 880.93
46, 021. 26 107,642.89 87,971.05 107,720. 67 66, 862. 28 457,616. 71
27,616.27 18,582.74 171,416.74 100, 858. 38 86,595.26


TOTAL EXPENDITURES FROM REVENUE----------.--- 2, 768, 747.92


Gourdes
92,522.32

42, 745. 20 64, 213. 90


19,298.35


218, 779. 77 421, 988. 16 43, 363. 71 110,230.53
91, 013. 47 111,387.84 75, 126.47 405,556.68
7,071.33
24, 928.91 173, 699. 74 103,117. 00 33, 694. 83


Gourdes
100,385.77

107, 433. 18

20, 819. 95

16, 028. 95

3, 539. 33
248, 207. 18 427, 022. 12 87, 316. 95 209,850.39 165,741.32 147,303.48 103, 526. 35 394, 590. 33 15,027.59 40, 548. 92 343, 249.76 196, 260. 16 54, 215. 98


Gourdes
95, 647.99

439, 814. 80
36, 868. 22

2,683.55


575, 014. 56 472,258.48
40,725.48 129,615. 99 111, 427. 75 121, 973. 25 78, 067. 71 442, 936.89 13,657.10
44, 649. 06 232, 503. 53 133, 561. 52 33,268,33


Gourdes
84, 576.18 18, 755.58

609,693.90 399, 997. 50






1,113, 023. 16 468,445.04
64,027.99 98,092.74 198, 757.15 148,105.95
57,233. 26 464,160. 25 10,047.26 86, 253. 43 172,980. 21 104,137.23 27,940.90


Gourdes
83,945 90 54,723.30

37, 127. 48 :------_-------9, 746. 09
185, 542. 77 486, 512. 83 92, 076. 92 199,077.20 110, 875. 60 172, 928. 05 82, 003.70
529, 590. 53
10,261.11
200, 322. 86 173, 065. 32 104, 384.04 26, 845.77


1,819,958.44 2,432,860. 53 2,429,659. 65 3,013,204. 57 2,373,486.70


Gourdes
1,118,917. 23
73, 478. 88 5, 589, 864. 50 1, 695, 970. 36
928,174.00 524, 564. 28 828,227.51 277,872.31
480,000.00 206,400.00
433,915.00
13, 285. 42 12,170, 669. 53 5, 322, 449. 22
734, 199. 47 1,520,366.84
1,363, 403.06 1, 529, 057. 91
961,336. 20 5,895,159.05
148,288.24
434, 445. 89 2, 306, 194. 25 1, 372, 533. 28 457, 393. 00
34, 215,495.94

..






TABLE NO. 44-Continued

RECEIPTS AND EXPENDITURES-Continued

FISCAL YEAR 1923-24-Continued

RECEIPTS

OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Customs. .--------------------------------------------------------------.--2,767,890.81 3,674,196.52 3,793,955.15 3,317,806. 82 2,476,503. 60 2,699,204.86
Internaltaxes -------------------------------------------------------------- 109,530.34 88, 330. 55 118,433. 77 187,185.70 298,513.85 178,047.64
Miscellaneous------------------------------- 13,163. 42 12,880.51 12,907.30 12,934.21 12,961.23 12, 988.20
TOTAL REVENUE.----------------------------------------------------. 2,890,584.57 3,775,407.58 3,925,296.22 3,517,926.73 2,787,978.68 2,890,240.70
Cumulative revenue---- -------------------------------------------------- 2, 890, 584. 57 6,665,992. 15 10, 591, 288.37 14,109, 215. 10 16, 897,193. 78 19,787,434.48
Cumulative payments from revenue .----------------------------------------- 2,718, 212. 78 4,985,757. 44 7,841,786.73 10,070,496.05 13,798,672.16 19,377,578. 13

+172,371. 79 +1,680,234. 71 +2,749,501.64 +4,038,719.05 +3,098,521.62 +409, 856. 35


APRIL MAY JUNE JULY AUGUST SEPTEMBER TOTAL

Gourdes rdes Gourdes G rdes Grdes ourdes Gourdes Gourdes
Customs------------------------------.--------------------. 2,201,294.48 2,065,892.60 1,813,558.87 1,520,628.69 1,599,089.95 2,020, 884. 79 29,950, 907.14
Internal taxes.----. .------------------------------------------- 165, 946.16 285,415.33 272,067. 78 357,760.09 378,801.65 355,837.67 2,795,870.53
Miscellaneous------------------------------------------------. 13, 021. 50 13, 042. 35 12, 935. 75 12, 877.00 12, 560. 15 13, 272. 04 155, 543.66
TOTAL REVENUE--------------------------------. 2,380,262.14 2,364,350. 28 2,098, 562. 40 1,891, 265. 78 1, 990,451.75 2,389,994. 50 32,902,321.33
Cumulative revenue.--------------------------------.------ 22,167, 696. 62 24, 32, 046. 90 26,630,609. 30 28, 521, 875. 08 30, 512,326. 83 32, 902, 321. 33 32,02,321.33
Cumulative payments from revenue------------- --------. -- 22, 146,326.05 23,966,284. 49 26, 399,145.02 28, 828, 804. 67 31, 842, 009. 24 34, 215, 495. 94 34, 215, 495. 94

+21,370. 57 +565, 762. 41 +231, 464. 28 -306,929.59 -1,329,682.41 -1,313,174.61 -1,313,174.61


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

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Expenditures of the Financial Adviser-General Receiver and of tie internal revenue service, have already been discussed. Disbursements under the title of public debt were somewhat greater t an during the prior year, as an effort,was made to liquidate all outstanding claims against the public treasury, so far as such claims were outside the jurisdiction 6f the claims commission. Such action was taken in the interest of the credit of Haiti, as credit rating can not be of the best as long as legitimate obligations are due but unpaid. It is a pleasure to record that at the end of the fiscal year 1923-24 all claims which the State recognized as valid were eit er paid or else cash reserves in full had been set aside for. their payment. Moreover, claims as yet unauthentica.ted were in process of adjudication by the claims commission, and reserves in cash and Government bonds had been set up which are estimated as much movie titan adequate to meet all of the awards of that commission. Undoubtedly this is the first occasion in the history of Haiti in which such a statement could be made. With obligations of past years now funded, liquidated or in process of liquidation, and with financial arrangements already completed for the payment of eventual pecuniary awards, the resources of the Government will not in the future have to be devoted in considerable part to the settlement of financial difficulties arising from past years, but all revenues may be devoted to constructive and productive objects which in a short time s could show increasing effects in enhancing the welfare of the Republic.
Expenditures for the gendarmerie closely approximated tlose of preceding years, and expenditures for public works showed a gratifying.increase. The public health service, judged from the standpoint of costs of operation, carried on approximately the same amount of work as duing the prior fiscal year.
One of the most urgent problems of Haiti is to increase production, and as Haiti is primarily an agricultural country the problem of increased production virtually resolves itself into that of more efficient agriculture. After careful thought an organization was created to take charge of the technical agricultural problems of t e Republic. Although this organization did not receive an appropriation until the end of February, 1924, it rapidly developed as to scope of activities and number of personnel, and expended during t e year some Gds. 435,000. Unquestionably the agricultural service must receive increasingly large appropriations if it is to accomplish the task which has been entrusted to it. Such a task is difficult in any country, as farmers are proverbially reluctant to change the practices of generations and to adopt scientific methods. For a country like Haiti the problem is peculiarly difficult since to t e recognized inertia of farmers in general must be added widespread

..





ignorance on the part of the Haitian peasants. It is beyond the scope of the present report to outline the actual and proposed activities of the agricultural service, but it is the opinion of this office that the financial future of Haiti is more dependent upon its success than with that of any other branch of the public administration.
Although it is impossible to compare expenditures for public instruction over a series "of years it may be stated with confidence that far larger expenditures for this purpose are necessary, provided there is assurance that funds which may be appropriated will be efficiently employed. Unfortunately, in the past abuses have been permitted in the administration of public instruction, particularly in connection with the payment of rentals for school buildings in which no classes were held and payment for school teachers who did no teaching. There is also no doubt that the scope and method of instruction should be radically revised, so that emphasis will be laid on agricultural and vocational education. All leaders of industry, agriculture and commerce complain that it is difficult if not impossible to obtain skilled workmen, and economic progress in Haiti cannot be rapid as long as this condition continues.
Another needed development in educational organization is to encourage the municipalities and minor political subdivisions to assume larger responsibility in the establishment and maintenance of public instruction. At the present time the municipalities are inclined to reply upon the central government for many services which they themselves should provide, such as municipal water supply, municipal sanitation, and particularly primary instruction. Unquestionably the problem of education is one of the most difficult with which Haiti is faced and one toward the solution of which unsatisfactory progress has been made. In this connection it should be recalled that the Treaty of September 1I, 1915, and subsequent agreements have not provided for American assistance in solving the educational problems of Haiti.
By the terms of the protocol of October 3, 1919, it was provided that certain claims should not be subject to the jurisdiction of the claims commission but should be settled directly by the Haitian Government. During the fiscal year 1923-24 the remainder of the group of claims exempted from the jurisdiction of the claims commission were finally settled. Because of this fact, relatively large payments outside of ordinary budgetary authorizations became necessary. Moreover, the funds necessary to pay these claims were charged directly against revenue, with the result that expenditures in the past fiscal year were considerably greater than financial requirements for the ordinary operations of the Government.

..





TREASURY POSITION

Prior to 1923-24 there had been no attempt to determine the resources and obligations of the Government. In other words, while an income account was published for each year of the receivership, an asset and liability account had not been constructed. Table No. 45 presents the asset and liability statement of the Haitian Government as of September 30, 1924. In this table are shown all of the cash assets of the Government and also all of the obligations, including reserves, which are estimated as more than adequate for covering the cash awards of the claims commission.
Unfortunately arrangements have not thus far been made by which the Haitian Government receives interest on deposits carried with the Banque Nationale de la Rdpublique d'Haiti. Under these circumstances it is necessary to carry the bulk of the funds of the General Receiver in New York, so that they may be productive. During 1923-24 the policy was adopted of maintaining in Haiti funds merely sufficient to meet the current financial requirements of the Government and to transfer all unneeded balances to interest-bearing account in New York. Thus at the close of the fiscal year the account of the General Receiver in gourdes in the Banque Nationale amounted to but Gds. 4,930,000, while the account of the General Receiver plus the balance of the series A loan in interest-bearing New York funds totaled Gds. 23,446,000. As the current position of the Government has now been placed upon a satisfactory basis, with cash balances of considerable magnitude, the income of the Government from interest receipts has become of real and growing importance.
TABLE NO. 45
CASH ASSETS AND LIABILITIES
SEPTEMBER 30, 1924
ASSETS
Oourdcs
Deposits in Banque Nationale de la Rdpublique d'Haiti -------- 4, 930, 926. 91 Deposits in foreign depositaries (New York):
To credit of General Receiver --------------------------- 14, 133, 080. 70
To credit of Haitian Government_ ----------------------- 9, 313, 741. 70
Cash in hands of disbursing officers -------------------------- 86, 936. 08

TOTAL .--------------------------------------------- 28, 464, 685. 53

..






LIABILITIES
General Receiver's checks outstanding_ __ Reserves for:
Amortization, series B bonds
Interest, series B bonds_
InterestInternal consolidated debt
Fiduciary currency -
Subvention, Wharf Co., Port au Prince .
Awards of claims commission, debt retirementPublic works . . . . .
Budgetary credits _-_ .
Extraordinary credits General Receiver's 5 per cent fund for customs service General Receiver's 15 per cent fund for internal revenue serviceNet balance (cash working balance) --------- ________-


Gourdes
893, 125. 80

11, 571. 40 161, 329. 74

200, 788. 25 264, 638. 00 67, 253. 46

9, 313, 741. 70 618, 953. 73 9, 484, 407. 14
415, 498. 73 34, 843. 28 6, 998, 534. 30


TOTAL---------------.------------------------------------ 28, 464, 685. 53

So far as can be ascertained, all of the cash obligations of the Government are reflected in the liability account, which includes all unpaid bills of the Government, as well as all authorizations of expenditure which were not utilized but still valid as of September 30, 1924. The statement also includes the reserves which have been set up for meeting the cash awards of the claims commission, and indeed much larger sums have been placed in these reserves than will probably be utilized. The law authorizing the series A loan provided that its proceeds should be utilized for the refunding of certain debts and for paying the cash awards of the claims commission, and that the balance should be employed for debt retirement in excess of the amortization schedules and for public works. It is expected that a substantial balance will be available in the fiscal year 1924-25 for the two latter objects. Obviously, to the extent that this hope is realized, the financial position of the Government will be further improved.
With all current obligations provided for, a cash surplus of approximately Gds. 7,000,000 was shown at the end of the fiscal year. Without question this is the largest unobligated cash balance which has ever existed in the history of Haiti. Funds in the possession of the Government may at times have been greater than on September 30, 1924, but there also existed numerous claims and bills payable, so that the available cash balance was very much below the Gds. 7,000,000 above mentioned. As a matter of fact, bills payable were ordinarily in excess of cash resources until the work of rehabilitating the finances of Haiti was undertaken by the receivership.
The Treaty of September 16, 1915, provides that the Government of Haiti can not obligate the public treasury without the approval of the President of the United States. The general financial law of Haiti provides that if revenues are not adequate to cover expendi-

..





tures authorized by budgetary, supplementary, and extraordinary credits, such authorizations may be limited by the Minister of Finance, in agreement with the Financial Adviser, to the revenues actually realized. In view of these circumstances sound financial policy necessitates the accumulation of a substantial cash balance if the ordinary services of the Government are to continue without interruption. Ordinarily it is-considered uneconomical for a government to maintain large cash surpluses, on the theory that funds in the hands of its citizens can be more productively employed than funds in the hands of the Government. Moreover, a treasury surplus is always an incentive to wastefulness. However, in the case of Haiti the situation is somewhat different. Its financial policy may more nearly be compared with that of a corporation than with that of a government. The existence of a treasury surplus does not induce extravagance on the part of a corporation, and so in the case of Haiti a strong treasury position should not result in lavish expenditures, as all authorizations of credits have to be approved by officers responsible to the President of the United States, and not subject to local political pressure.
Accordingly, a treasury surplus is as legitimate and as essential on the part of the Haitian Government as it is on the part of a wellmanaged corporation. And as financial authorities approve the policy of corporations in building up a strong treasury position and increasing their credit rating accordingly, so the Haitian Government should maintain substantial cash balances as long as present arrangements continue.
There is room for considerable difference of opinion as to the specific amount which should be maintained as liquid funds. The unobligated surplus is designed to meet fluctuations both of income and expenditure from month to month and also from year to year. As revenues show wide variations during different periods of the fiscal year, and as annual revenues are largely dependent upon international commerce, with consequent broad fluctuations, it may well be argued that the cash balance should at least be equivalent to one-sixth of annual expenditures of a normal year. Ordinary expenditures may roughly be calculated at Gds. 30,000,000, so it follows that the unobligated cash surplus should at least equal Gds. 5,000,000 in order to avoid- the possibility of being compelled to curtail necessary governmental services. Since the surplus as of September 30, 1924, was approximately Gds. 7,000,000 it is evident that careful scrutiny of appropriations and economy in the expenditure of those appropriations have finally resulted in the accumulation of a cash balance as large as needs to be carried in normal times. However, just as a corporation bends every effort to maintain its current cash position, so the financial authorities of the Haitian

..



80

Government have as one of their most important responsibilities the maintenance of the satisfactory cash position which has been established as the result of so much hard work.

RECEIPTS AND EXPENDITURES FOR THE RECEIVERSHIP PERIOD
As the receivership has now been in operation for some eight years, it is interesting to take stock of the comparative position of Haitian finances at the beginning of that period and at the present time. The necessary data have been compiled and appear as Table No. 46. Revenue receipts and expenditures from revenue, together with the surplus or deficit for each year of the receivership period are shown. It appears that for the first two years a modest surplus was shown, due largely to the fact that not all the obligations of the Government were met. During the two years immediately following the European war the surplus reached large proportions. Then came the two years of deflation and world depression in which the deficits were approximately equal to the surpluses of the two preceding years. By 1922-23 the situation was again comparatively normal, with revenues on an expanding scale and expenditures brought under control.
TABLE NO. 46
RECEIPTS AND EXPENDITURES AND EXCESS OF RECEIPTS OR EXPENDITURES
FISCAL YEARS 1916-17 TO 1923-24

RECEIPTS EXPENDITURES SURPLUS DEFICIT
Gourdes Gourdes Gourdes Gourdes
1916-17.------------------------------- 18,934, 684. 70 15, 884, 177. 80 3, 050, 506. 90 .
1917-18.-------------------------.-------- 16,048,390. 75 14,614,997.45 1,433,393.30 --------.-----.-1918-1.------------------------------. 29,955,933.45 15,499,480.45 14,456,453.00 .
1919-20.--------------------- --------. 33,997, 450.79 20,646,866.25 13,350,584. 54 .
1920-21-------.------------------------. 19,946,095.70 32, 788,455.90 ----.-----.-------12, 842, 360.20
1921-22-----.--.----------------------- 24,964,795. 72 39,775,908.40 ----------------. 14, 811, 112.68
1922-23.-------------------------- 31, 950,101.24 30, 560,113.15 1, 389, 988. 09
1923-24-------------.----------------- 32,902,321.33 34, 215,495.94 -----------------. 1,313,174.61
TOTAL.------------------------208,699,773.68 203, 985, 495. 34 33, 680, 925. 83 28, 966, 647. 49
Surplus for period.------------------------------------- -------------4,714, 278. 34 .

The fiscal year just closed showed an apparent deficit of Gds. 1,313,174.16, but this deficit was consciously permitted because of the strong cash position of the treasury. It is explained by two principal classes of expenditure, one of which was not properly chargeable to income during the fiscal year and the other of which was subject to complete control by the financial authorities. The first explanation is to be found in expenditures of Gds. 1,528,039.98 for claims finally liquidated by the Government in 1923-24 which were not subject to the adjudication of the claims commission. Obviously those expenditures were not made for obligations incurred

..





in the fiscal year under review, but were a heritage of long standing which seriously needed to be' settled. The second cause for the deficit were expenditures of Gds. 3,625,655.33 as extraordinary credits, the greater part of which wqre for public works. Needless to say, extraordinary appropriations for public works are of such a character that they can be approved or refused according to the availability of funds. .
The year 1923-24 may, therefore,' be regarded as eminently satisfactory in spite of the deficit, as the deduction of expenditures for claims from previous years and extraordinary credits, or a total of Gds. 5,153,694.31 would leave a surplus of Gds. 3,840,520.15 instead of the indicated deficit. In the financial statements of the bulletin published by the Financial Adviser-General Receiver for September, 1924, a deficit of approximately Gds. 420,000 was reported. This report was based upon the relation between actual revenue receipts and expenditures from the General Receiver's account, but during 1923-24 a payment of approximately Gds. 1,000,000 of internal revenue collected in the prior fiscal year was transferred to the General Receiver's account. This payment therefore was in addition to expendable funds but was not revenue for the fiscal year 1923-24. The present statement is a comparison of revenue collected during the fiscal year as against all payments of the Government, whether properly chargeable against revenue or not.
For the eight-year period receipts have amounted to Gds. 208,699,773.68 and expenditures to Gds. 203,985,495.34, leaving a surplus of Gds. 4,717,278.34. As the accounts of the Government which were taken over by the General Receiver were in great confusion, and as there have been numerous changes in accounting methods during the period of the receivership, it is impossible to reconcile the surplus over the receivership period with the unobligated cash balance at the close of the last fiscal year. Nevertheless, the asset and liability account as set up in Table No. 45 is believed to represent an accurate statement of all resources and obligations of the Government, and the unobligated balance is a very real item represented by actual cash in bank. It should also be remembered that this unobligated balance is Gds. 6,998,000 or Gds. 2,284,000 greater than the surplus for the receivership period. During the period of the receivership obligations of many years' standing have gradually been liquidated and the treasury position has been strengthened until it is now upon a thoroughly satisfactory basis. As all indications point to increased prosperity for Haiti and increased income fbr the Government it should be relatively easy to maintain and even to surpass the financial results of former years. In all probability the most difficult years, financially speaking, are now behind, and the future may be faced with confidence.

..



82

PUBLIC DEBT
Very radical changes in the method of presenting the public debt of Haiti have been introduced during 1923-24. For this reason the debt statement bears little resemblance to those of former years. In general, the principles which guided the alterations in the form of presentation have been in the interest of conservatism. It is the opinion of this office that debt and other financial statements should be constructed so as to reflect the most unfavorable rather than the most favorable condition of governmental finances. Window dressing has no place in conservative government accounting.
An attempt has been made to reduce the debt statement of Haiti to a comparable basis, and the results appear in Table No. 47. As there employed, the expression "series A" refers to the series A loan of the Gds. 200,000,000 loan authorized by the laws of June 26, 1922, and of October 27, 1922. This loan was in large part floated for the purpose of refunding the foreign debt of Haiti because that debt was principally in French francs and because francs could be obtained at a substantial discount. Prior to 1923 the items under series A reflect the gold value of the foreign debt as of the last day of each fiscal year. Obviously as the value of the franc declined the gold value of the foreign debt also declined, and this fact in large part explains the wide variation in series A from 1918 to 1922, inclusive, though the service of the external debt was resumed and arrears of amortization were paid in 1920 and 1921.

TABLE NO. 47
PUBLIC DEBT
SEPTEMBER 30, 1924

SERIES A SERIES B SERIES C FIDUCIARY CURRENCY TOTAL
Sept. 30, 1915. .----------107,821,656. 45 37,185,657. 60 ---------------- 8,853,754.80 153,861,068.85
Sept. 30, 1916.----------. 113,455,856.35 38,974,237.85 ---------- 8,352, 663.15 160,782,757.35
Sept. 30, 1917. .------ 119,089,179.15 42,093,154.00 ---------------- 7,786,974.80 168,969,307.95
Sept. 30, 1918 ------. 124,722,501.95 45,014,560. 65 --- 7,510,837.75 177, 247,900.35
Sept. 30, 1919.---------- 90,556,562.00 48,774,145.85 ---------------- 7, 245,000.00 146,575,707.85
Sept. 30, 1920 ----------33,487.414.30 51,078,637.35 ------------. 7,245,000.00 91,811,051.65
Sept. 30, 1921. 32, 225, 464. 30 53, 090, 682. 40 ---6, 080,362. 50 91, 396, 509. 20 Sept. 30, 1922. 33,505,429.95 52,945,770.25 ----------------. 6,080,362. 50 92,531,562.70
Sept. 30, 1923 .7. 79,235,000.00 25,000,000.00 ---------------- 6,080,362.50 110,315,362. 50
Sept. 30, 1924. 78,242.500.00 23,566,980.60 13,158,711.10 6,080,309.50 121,048,501.20

At the beginning of the fiscal year 1922-23 series A loan of Gds. 80,000,000 was floated in New York and from the proceeds sufficient francs were purchased for the redemption of all outstanding obligations of Haiti in francs. It is true that certain holders of the franc bonds have maintained that these obligations are payable in gold and have until now refused to accept payment in francs. In some

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quarters the refusal of the Haitian Government to redeem the franc bonds in gold has been regarded as a reflection on its credit. That the persons holding such opinions are incompletely informed is amply proved by the fact that the loan contract for the franc loan of 1910 speaks of a gold loan, but this contract itself states that legislative approval was necessary before it had any validity, and the legislature deleted the word- "gold" from the title of the loan and authorized merely a loan in francs rather than in gold francs. Furthermore, both the fiscal agency contract and the text of the bonds speak of payment of interest and principal in francs and nowhere is the expression "gold francs" employed. Under these circumstances the Haitian Government has refused to meet the demand of the bondholders for payment in gold. Although Haiti is vitally interested in establishing and maintaining a high credit rating it can not logically be expected to meet obligations in a currency medium more valuable than that stipulated in the contracts and laws creating such obligations.
Series A loan of Gds. 80,000,000 carries an amortization schedule sufficient to retire the whole issue by maturity. Not only have sinking fund requirements been met but they have been exceeded, with the result that the debt had been reduced by approximately Gds. 1,757,000 by the end of 1923-24. The principal feature of interest in connection with the handling of series A during 1923-24 was the prepayment in March, 1924, of all interest and amortization requirements for the remainder of the fiscal year. As the fiscal agency contract requires the deposit of interest for the whole of a half-yearly period before amortization purchases may be made and as it was decided to terminate as soon as possible accruals of interest on bonds which at any rate had to be purchased during the fiscal year, all payments called for in the fiscal agency contract for the A loan were made in March and the necessary amortization purchases for the latter part of the fiscal year were made in April and May rather than in October or later. This procedure resulted in savings of considerable magnitude to the Haitian Government. Moreover, part of the funds for this operation were obtained from noninterestbearing deposits in Haiti and other parts were obtained from' accounts bearing a low rate of interest in New York and were transferred to reserve for interest payments on October, 1924, this reserve bearing interest at a somewhat higher rate. It is estimated that the entire operation resulted in a net gain to the Haitian Government of approximately Gds. 100,000.
In order to accelerate the rate of debt retirement the policy has been adopted of applying all credits of interest on deposits for the service of the A loan as well as credits from anticipated amortization purchases to additional debt retirement. As this policy is continued

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over a series, of years the life of the series A loan should be substantially reduced. The range of prices for amortization purchases during 1923-24 was from 89 to 92.16, with an average of 90.09. All savings by reason of ability to purchase the A bonds below par were also applied to additional debt retirement, with the effect of further accelerating the rate of retirement of that loan.
One of the principal changes in the form of preparation of the debt statement was in connection with the series B loan. This loan was authorized by the law of September 27, 1922, for the purpose of refunding the bonded internal debt of the Republic and for the purpose of providing for the awards in bonds of the claims commission. The entire authorization was for the sum of Gds. 25,000,000. Following its authorization but prior to 1923-24, the series B loan had been reported as merely the amount of B bonds exchanged for the former internal funded debt, together with sufficient bonds to provide for the exchange of internal bonds not yet presented, and the amounts of B bonds which had actually been awarded by the claims commission. During 1923-24 it was decided to enter upon the books the entire authorization of Gds. 25,000,000 and to show as the debt of the Republic under this category the total authorization less actual purchases for account of the sinking fund.
During the fiscal year the amortization schedule was agreed upon, and it is identical with that for the series A loan, or sufficient to retire at par the entire authorization in 30 years. Since the amortization schedule calls for monthly payments adequate for the service of Gds. 25,000,000, and as the actual amount outstanding during 1923-24 has fluctuated around Gds. 15,000,000, it follows that interest requirements were relatively small with correspondingly large sums available for amortization purposes. All funds permitted by law were applied to amortization of B bonds, with the result that approximately Gds. 1,450,000 of these obligations were canceled in 1923-24. As the price for this issue was substantially below par, the funds at the disposal of the temporary fiscal agent for the purchase of bonds covered a correspondingly large face value of obligations. The price range for B bond purchases was from 52.10 to 69.00, with an average of 64.58.
Not only did the Haitian treasury benefit by obtaining B bonds for the sinking fund at considerably below par, but purchases of these securities by the Government resulted in substantially improving the market price of these securities, with corresponding benefit to the holders. The Government was also relieved of the embarrassment of seeing its securities sell at approximately 50 per cent of their face value, with corresponding inferences, however unfounded, as to Haitian credit.
If, as expected, the awards of the claims commission do not exhaust the entire authorization of Gds. 25,000,000, and since the amortiza-

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tion schedule calls for specific monthly payments sufficient for the service on that sum, it will probably occur that interest requirements for this loan will be less than those necessary for the full Gds. 25,000,000 authorization, leaving correspondingly large sums for debt retirement. Consequently the rate of retirement of the B loan should be very rapid indeed,:particularly if the price of the B bonds remains considerably below par.
All of the preliminary work on the fiscal agency contract for the series B loan was accomplished during 1923-24. At the close of the year substantial agreement had been reached as to the terms upon which the Banque Nationale de la Republique d'Haiti would represent the Government in the service of interest and amortization of that loan.
A third radical change in the position of the public debt was due to the final approval of the reorganization plan of the National Railroad of Haiti during 1923-24. By the terms of that plan the bonds of the National Railroad of Haiti, which were guaranteed as to interest and principal by the Haitian Government, were authorized to be accepted in exchange for series C bonds of the Gds. 200,000,000 loan up to an amount of Gds. 13,300,000. This refunding operation represented a scaling down of the guaranteed railroad bonds by 25 per cent, and to this extent was a net reduction of the debt of the Republic by an equivalent amount, since the railroad had not in any year been able to meet any part of the interest and amortization payments on the bonds which carried the guarantee of the State, thus leaving the entire burden to the Haitian treasury. As the railroad bonds were merely a contingent obligation of Haiti, they had never been carried as a part of the public debt, though constituting as great a financial burden as an equivalent amount of direct obligations.
As part of the plan of reorganization of the railroad, the bondholders also agreed to the utilization of part of the payments of Gds. 10,804,284.50 already made by the State to the receiver of the National Railroad on arrears of interest and amortization of the guaranteed railroad bonds for additional railway construction. They further consented to the utilization of the entire amount of the interest on their bonds from February 1, 1923, to September 30, 1923, or Gds. 708,916.35 for the same purpose. The latter amount had not been paid to the receiver of the railroad but was held in a special account at the Banque Nationale de la Rtpublique d'Haiti awaiting the results of the negotiations with the bondholders. Payment of amounts due the bondholders under this agreement completed the liquidation of arrears on the funded public debt.
Series C bonds in the amount of Gds. 12,702,635.25 had been exchanged for bonds of the railroad up to September 30, 1924. However, as in the case of the series B bonds, the entire'authorized

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amount of Gds. 13,300,000 is included in the public debt statement. The amount appearing in Table No. 47 for series C is, therefore, the total authorization less actual purchases and retirements of series C certificates in the amount of Gds. 133,921.50, plus an unexpended balance in the sinking fund of Gds. 7,367.40. Both the security and the amortization schedule for series C are identical with those for series A and series B. As yet a fiscal agent for the loan has not been selected, and the series C loan is at present represented by certificates issued by the Metropolitan Trust Co. of New York, which was appointed a provisional fiscal agent for the exchange of the railroad bonds for series C certificates.
The final item in the public debt statement is for fiduciary currency. This item represents nickel and copper currency issued by the Government, .in so far as such issues have not been covered by gold reserves. The entire issues were of Gds. 7,245,000.00, and reserves of Gds. 1,164,690.50 have thus far been established. As a matter of fact, the outstanding amount of fiduciary currency which is not covered by reserve is undoubtedly considerably less than that indicated in the debt statement, as this currency is subject to ordinary wear and tear, and doubtless an appreciable amount has also been lost.
Though no additional reserves against the fiduciary currency were established during 1923-24, plans were completed for adding to the reserve, and a substantial appropriation in the budget of 1924-25 was voted for that purpose. Payment against the appropriation will be made when certain details for handling the reserve for the fiduciary currency shall have been agreed upon with the Banque Nationale.
One item of the public debt of several years standing was entirely / eliminated during 1923-24. This was the notes in favor of the Haitian Construction Co., issued for street paving work in Port au Prince. The remainder of these notes were paid prior to maturity so as to terminate interest on them.
Taking no account of payments out of revenue for the liquidation of the group of claims specifically exempted from the jurisdiction of the claims commission, amounting to Gds. 1,528,038.98, the funded debt of Haiti was reduced by Gds. 2,807,895.90 during 1923-24. So far as available information indicates, this is one of the largest sums expended for actual debt reduction, as contrasted with the liquidation of obligations in default, which Haiti has ever made in a year. Furthermore, the form of the public debt statement now represents all debts of the State either issued or authorized and probably is somewhat in excess of the debts which may eventually be recognized. In the future rapid progress should be made in debt retirement, and the total can not, as has been the case in the past,

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be affected either by exchange fluctuations or by the addition of items heretofore excluded from debt statements. To be sure, it may later be decided that additional loans should be floated for productive purposes, but aside from this contingency the debt should show substantial diminution from year to year.
The public debt of Haiti cannot be considered as a particularly burdensome obligation. Its'service absorbs less than one-third-of total revenues, and this ratio may be regarded as relatively satisfactory. Furthermore, as revenues are showing consistent expansion, the ratio of debt service to total income should gradually decline unless additional series of the Gds. 200,000,000 loan are floated.
Since the Gds. 200,000,000 loan-is a first charge against all of the revenues of the Government, subject to a deduction of 5 per cent of customs collections allocated to customs administration, the bonded debt of Haiti is entitled to an unusually high credit rating. In this statement. the market, which is the final arbiter of values, concurs. Haitian 6 per cent bonds, series A, are now selling at approximately 92, giving a yield of 6Y per cent, whereas the securities of such countries as France, Germany, Czechoslovakia, Peru, Brazil, Bolivia and Salvador are selling upon approximately an 8 per cent basis. As judged by the market Haitian credit is even better than that of Argentina and Chile and is only slightly less than that of Cuba, the Netherlands and Norway.
Since the earlier years of the receivership, even down to and including the year 1923-24, have been devoted to financial readjustment and to the liquidation of financial difficulties, most of which were incurred prior to American intervention in Haiti, it is reasonably certain that, now that the period of adjustment has virtually closed, much more rapid progress in the rehabilitation of Haitian finances may be expected. With a sound currency, a moderate funded debt, no floating debt except that which is covered in full by reserves, a strong cash position, and increasing revenues, the financial prospects of Haiti are distinctly encouraging.
REORGANIZATION OF NATIONAL RAILROAD
From the financial point of view, participation by the Haitian Government in the National Railroad of Haiti was one of the most disastrous ventures in the history of the Government. The railroad was a failure from the beginning; misfortune and mismanagement added to the difficulties both of the Government and of the individuals interested in the project. As the Government was responsible for interest at the rate of 6 per cent and amortization at the annual rate of 1 per cent on Gds. 17,722,908, it follows that the annual burden placed upon the Government was Gds. 1,240,603.55. This obligation of the State had fallen into arrears prior to and

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during the period of the receivership, and accumulations of arrears not only were of large proportions but the entire problem of the railroad had to be satisfactorily solved before the credit of Haiti could be placed upon a sound basis.
After careful examination a plan of reorganization was agreed upon between the Government and the receiver of the National Railroad, representing the bondholders of that organization. On behalf of the Government this plan was approved by the law of December 27, 1923, and on behalf of the bondholders it was sanctioned by an order of the United States District Court for the Southern District of New York. By the terms of the plan the railroad bonds, which constituted a contingent liability of the Haitian Government, were exchanged for direct obligations of Haiti, series C, upon reduction in the face amount of the bonds by 25 per cent. All arrears of interest and amortization, or Gds. 10,804,284.50, had been paid to the receiver of the railroad in March and April of 1923. As an element of the reorganization plan for the railroad it was agreed that Gds. 3,000,000 of this sum, or Gds. 81.70 on each Gds. 482.65 bond, plus the amount of the interest on the railroad bonds from February 1, 1923, to September 30, 1923, or Gds. 708,916.35, should be foregone by the bondholders and employed in additional railroad construction. It was further provided that amortization due on the railroad bonds to the value of Gds. 1,240,603.55 should be available for the expenses of the railroad receivership, and that any excess above such expenses should also be devoted to new railroad construction.
The explanation of the rather unusual denominations of $72.39 and $723.90, equivalent to Gds. 361.95 and Gds. 3,691.50 for the series C bonds is the fact that the railroad bonds were issued in denominations of 500 francs, the value of which in dollars was $96.53. This value when reduced by 25 per cent under the plan of reorganization of the railroad became $72.39, and the provisional certificates have been issued in denominations of $72.39 or Gds. 361.95 and multiples thereof. When a fiscal agency contract shall be agreed upon it is the intention to permit the exchange of certificates for bonds in the denominations of $500 and $1,000, fractions being represented by provisional certificates for the proper amounts.
There were 36,720 railroad bonds outstanding, and the plan of reorganization provided that when the owners of 20,000 of these bonds had agreed to the exchange for series C bonds, together with the scaling down of the face value of their holdings by 25 per cent, the plan became effective. Sufficient holders of the railroad bonds had deposited their securities with the temporary fiscal agent by February 15, 1924, to make the plan effective. From that date bonds have slowly been presented for exchange to the fiscal agent,

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and on September 30, 1924, only 1,625 railroad bonds were still to be exchanged. It is possible that part of these securities will never be presented.
Under the terms of the law of December 27, 1923, funds were placed with the temporary fiscal agent so that interest on the series C bonds could be paid on April 1, 1924, and similar action was taken for the maturity of October -1, 1924. Moreover, purchases for the sinking fund were made according io the same rate of amortization as applies to the series A and series B13 loans, although a fiscal agency contract for series C has not yet been negotiated. Thus the problem of the guaranteed railroad bonds is now definitely settled, and, with the exception of a permanent fiscal agency contract, the series C loan is upon the same satisfactory basis as are the series A and series B loans.
As provided in the plan of reorganization of the railroad, the funds provided by the bondholders for new railroad construction have been employed for continuing the National Railroad from St. Marc into the Artibonite Valley toward Verrettes. Furthermore, substantial sums have been expended in the reconditioning of the equipment of the railroad, for the construction of new railroad shops and for additional facilities and supplies. Total expenditures for new construction during the fiscal year 1923-24 amounted to Gds. 1,008,482.95, and at the end of the fiscal year work on new construction was in full progress. Supervision over the expenditure of funds for new construction was delegated by the law of December 27, 1923, to the minister of finance and the Financial Adviser, and technical control to the Engineer in Chief of Haiti.
It has been the un form desire of the officers of the Government and of the railroad to utilize the new construction funds in the most economical fashion so that the greatest possible extent of additional railroad could be constructed. By careful management it is hoped that with the funds available new lines of railroad can be built from St. Marc to Verrettes and possibly from Bahon to Pignon. These new lines should develop additional traffic for the railroad and there is hope that in time the railroad may be placed upon a self-supporting basis. At present, however, it is merely a heavy drain upon the Government treasury with disproportionate compensating advantages.
ACCOUNTING
Governmental accounting presents no unusual difficulties. Perhaps it would be preferable to all concerned, particularly the taxpayers, if government accounting were more closely assimilated to accounting practices of modern corporations. However, so far as this office is aware, no government has attempted to introduce

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elaborate systems of cost accounting, of depreciation accounting, and other technical devices which are necessary in order to obtain a true picture of the governmental organization as a business concern. As a matter of fact, with some minor qualifications the operations of the Government should be judged by the same financial standards as those of a corporation, and activities should not be approved unless they can meet certain financial tests. Since, however, a government is not organized or operated for pecuniary profit, it is true that a government may undertake certain operations which will ultimately result in the welfare of the population, though the time element before profitable results can be shown might be so considerable that private capital would be unwilling to undertake them. Such instances are, for example, certain classes of irrigation projects, reforestation, and the establishment of fisheries.
Although the methods of corporations have not been fully applied to the accounting procedure of the Haitian Government an attempt has been made at least to adopt practices which will simplify and clarify the reporting of financial operations of the Government. In the first place there has not in the past existed an adequate audit of accounts, and even yet a proper staff of auditors has not been created nor have comprehensive auditing principles been formulated. However, considerable effort has been expended upon authenticating and documenting governmental expenditures. In this connection more attention has been given to the nature of vouchers, and the submission of vouchers has been required for additional types of expenditures. Nevertheless, much remains to be done before a satisfactory audit of the financial operations of the Government is in full operation. R. A. Pixley is in charge of auditing in the office of the Financial Adviser-General Receiver, and during the present year it is expected that his work will be considerably extended in scope.
One of the principal difficulties of the accounting system of Haiti for several years has been the recognition of the so-called period of liquidation. In substance this meant that the accounts of the Government remained open until three months after the close of the fiscal year. Confusion inevitably resulted and also much additional work, as for one-quarter of the fiscal year two sets of books had to be carried. As an additional element of confusion accounts were carried both in gourdes and in United States currency, thus virtually necessitating a quadruple entry system in place of a double entry system. Finally, the accounts were not organized according to objects of expenditure, or in accordance with budgetary appropriations but rather upon a group of arbitrary classifications which had been adopted.
During 1923-24 J. C. Craddock, for many years with the United States Treasury and the financial organization of the Panama Canal

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was appointed as comptroller in the office of the Financial AdviserGeneral Receiver and was put in charge of reorganizing accounting practices. The first step in accounting reorganization was to reduce all financial statements to one currency, namely, gourdes. The second step was to bring the accounts'up to date so that the financial position of the Government would be known at all times. The third object was to make the books of the Financial Adviser-General Receiver the controlling factors by charging as disbursements all orders of payment as soon as they had been issued. This was necessary as it was found that the accounts were carried on the basis of payments effected by the Banque Nationale de la R6publique d'Haiti against orders of the General Receiver rather than upon the basis of orders of payment as they were issued by the General Receiver. As a result it was impossible to reconcile the books of the General Receiver and those of the Banque except after an interval of several months. For purposes of financial control such a method was not only unsatisfactory but dangerous. Under the former system, by which items were charged only as paid by the Banque Nationale, the books of that institution virtually controlled the accounting system of the Government. Obviously such a situation of dependence was undesirable.
Moreover, the numerous special accounts which had formerly been carried were all closed, and a single account in the name of the General Receiver was established. Against the account of the General Receiver certain persons were authorized to draw up to limited amounts which in each case are notified from time to time to the Banque National. The persons at present authorized to draw against the general receiver's account are the collectors of customs in the several ports who act as disbursing officers for their respective districts for meeting the costs of collecting customs, those of the internal revenue service, those of the public works service, sanitary service and agricultural service. Others who are authorized to draw against the General Receiver's fund are the district commanders of the gendarmerie for the expenses of their organization.
As a result of the foregoing innovation, it has been possible to report all of the financial operations two weeks after the close of each month. This situation has resulted in much more effective control of the finances, as the relation between income and expenditure is known at all times and can be maintained in harmonious adjustment. Furthermore, the danger of unauthorized expenditure of funds of the Government has been greatly reduced, as daily reports of receipts and disbursements from each branch of the Banque Nationale de la R6publique d'Haiti give the accounting officers almost immediate information from which a reconciliation of all accounts is at once made.
43915-25t-7

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Another innovation has been the forwarding of checks drawn by the General Receiver at frequent intervals as they have been paid by each branch of the Banque Nationale, and this has permitted the comparison of checks with pay rolls and other supporting documents so that at present the entire work of reconciliation is concluded within a very few days after orders of payment have been met by the Banque Nationale. This procedure also permits more effective financial control, as in case of difference or misunderstanding adjustment can immediately be sought, whereas under the former system the interval between the origin of an item in dispute and the time that it came up for adjustment was often so great that it was difficult to obtain the necessary information. Also it was sometimes the case that improper payments had been made for a considerable period before the matter was discovered.
The ledgers of the Financial Adviser-General Receiver have also been completely revised and a modern system has been installed. A separate account is now carried for each article of the budget, and allotments and withdrawals, classified according to articles, are immediately recorded. Thus at all times there can be certainty that authorizations have not been exceeded, and it is also possible to know at a glance the available balance under each appropriation.
Finally, the obligations of the Government are set up in detail so that at all times the financial officers are able to know the demand liabilities of the Government and can make the proper distribution of cash assets both as to time and place so as to be in a position to meet the obligations.
DISBURSING OFFICE

Officers of the gendarmerie have for some years been in charge of making payments for the General Receiver to many employes of the Government, as well as to owners of property rented to the State and to the pensioners of the Government. As the gendarmerie officers also were responsible for payments to their own forces it occurred that in many instances civil payments were not made until several days, sometimes amounting to as much as two weeks, after the close of each month. A remedy was sought for this situation so that all persons entitled to monthly payments from the Government could receive the sums due them on or before the first day of the month. To accomplish this result the law of finance permitted the General Receiver to make payment to Government employes in advance of justifying documents, and the gendarmerie of Haiti has cooperated in the distribution of the checks so that before the end of the fiscal year all creditors of the Government were receiving payment on the day in which payment became due. For supervising the preparation of checks and their proper and prompt distribution, W. J. Matthie,

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formerly auditor of customs, was appointed disbursing officer. At present he signs all checks in the name of the General Receiver except those for the cash awards of the claims commission and those drawn on balances abroad.
FINANCE LAW

The general law of finance, which covered the preparation of the budget and financial operations under the budget, was quite unsatisfactory, and during 1923-24 it was thoroughly revised. In this revision it is a pleasure to record the constant cooperation and helpful suggestions of the Minister of:Finance, M. Auguste Magloire, and his chief of division, M. Paul Sales.-.
One of the innovations which was adopted made the salaries of Government employes unattachable for debt. Formerly it had been a practice of Government employes to assign their salaries to banks or to money lenders, and this practice resulted in considerable inconvenience.
One of the difficulties of former financial laws was the fixation of specific sums for contingent payments. Especially was this the case in the case of the 5 per cent of customs collections which are allocated by the treaty to the Financial Adviser-General Receiver for expenses and in the case of the wharfage duties at Port au Prince. Obviously, it is impossible to determine in advance the amounts which will be realized under those allocations, so the finance law of 1924-25 was redrafted to appropriate 5 per cent of customs collections to the use of the Financial Adviser-General Receiver and the proper wharfage duties to the Wharf Co. of Port au Prince, no matter whether actual customs collections or wharfage dues' should be above or below budgetary estimates.
Provisions were inserted in the finance law so as to limit the time during which spending offices could forward statements of operations with proper supporting documents to the Ministry of Finance. This innovation was due to the fact that the forwarding of accounts was often considerably delayed under former arragements.
The financial law also provided that the Minister of Finance in accord with the Financial Adviser should issue regulations covering traveling expenses and also should prepare regulations prescribing the character of vouchers and supporting documents for all expenditures. These authorizations of law permit placing the records of the Government upon a much more satisfactory basis and also establishing uniformity of practices in connection with traveling expenses in the several departments.
The forms of vouchering obligations due by the Government as well as warrants of payment were modified by the finance law so that they could be carried on the same document. This alteration

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