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-GENERAL

RECEIVER

FOR THE FISCAL YEAR

OCTOBER, 1925-SEPTEMBER, 1926


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


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


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

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MAR 2 1927

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

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Iv CONTENTS

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

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

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STATISTICAL EXHIBITS


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

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

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STATISTICAL EXHIBITS VII

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

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

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HAITI


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

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HAITI

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


OFFICE OF THE FINANCIAL ADVISER-GENERAL RECEIVER,
Port-au-Prince, Haiti, December S1, 1926.

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

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

IMPORTS
Foreign commerce from October 1, 1925, to September 30, 1926, had a value of Gdes. 195,177,055.1 This roughly equaled but was slightly inferior to the total of Gdes. 198,206,635 which was attained in the previous fiscal year. Imports were valued at Gdes. 94,257,030, a decline of Gdes. 6,930,795 or 6.85 per cent from the level of the previous year. This decline may largely be attributed to two facts. During the latter portion of 1924-25 numerous importers were of the opinion that a new customs tariff would come into force on the first day of the succeeding fiscal year. Accordingly,
I One gourde equals 20 cents (United States currency) and the gourde Is, by law, exchangeable on demand and without expense at the fixed rate of five gourdes for one dollar (United States currency). Accordingly, the value of Haitian currency, as measured in dollars, does not fluctuate.

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2 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 3

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

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4 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

Year Imports Exports Excess imports Excess exports

Gourdes Gourdes Gourdes (Gourdes
1916-17 43,030,428 44,664,428 1,634,000 1917-18 50,903,468 88,717,650 12,185,818 .
1918-19 85,588,041 123,811,096 38,223,055 1919-20 136,92,055 108,104,639 28,887,416 .
1920-21 59,786,029 82,952.045 26,83,984 .
1921-22 61,751,355 53,561,050 8,190,305 .
1922-23 70.789.815 72,955,060 2165,245 1923-24 73,480,640 70,881,610 2,599,030 .
1924-25 101,187,825 97,018,810 4,169,015 .
1925-26 94,257,(0 100,920,025 6,662,995
Total 777,766,686 743,686,413 82,865,568 48,685,295

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

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


furnished but 7.27 per cent of total imports during 1925-26. Great Britain was the only other country which supplied as much as five per cent.
As the percentage of imports supplied by the United States declined during 1925-26 it follows that other countries increased their participaTABLE No. 2
VALUE OF IMPORTS, SHOWING COUNTRIES OF ORIGIN, IN PERCENTAGES FISCAL YEARS 1916-17 TO 1925-26

Average Average
Country of origin 1916-17- 1921-22 1922-23 1923-24 1924-25 1925-26 1916-171920-21 1925-26

Per cent Per cent Per cent Per cent Per cent Per cent Per cent
United States 87.09 83.87 81.40 80.41 76.93 74.22 83.23 France 4.71 5.21 4.65 6.02 6.72 7.27 5.34
United Kingdom.5.85 6.18 7.84 6.70 8.52 7.24 6.57
Bahama Islands .04 .02 .01 .02"
Belgium .01 .02 .13 .60
Canal Zone .04 .08 .23 .22
Cuba .06 .03 .04 .05
Curacao .I.25 .28 .37 .70
Denmark .18 .43 .29 .29
Dominican Republic .96 1.06 .36 .47
Germany 2.85 4.74 2.62 3.05 8.97 4.63 4.86
Italy .87 .45 .65 1.42
Jamaica .10 .07 .05 .07
Netherlands .79 1.06 1.32 2.10
Porto Rico .05 .02 .20 .32
Switzerland .11 .03 .03 .03
Virgin Islands .43 .18 .02 .01
All other .10 .09 .16 .34
Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00


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

DESTINATION OF EXPORkS

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

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6 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

Kingdom, Belgium, Denmark, Italy, Norway, Porto Rico, Spain and Sweden. Countries which showed moderate declines were Canada, Germany and the Netherlands. Very sharp declines characterized the proportion of Haitian exports marketed in the United States and Cuba. The percentage of total exports sold in the United States was 11.95 in 1924-25, and this declined to 6.82 in 1925-26. Haitian products which are exported to the United States consist largely of logwood and cacao. During the last fiscal year total exports somewhat increased, whereas the value of logwood declined. Consequently, this sharply affected the percentage of total exports marketed in the United States.
As in the case of imports, less concentration of exports may be expected over a series of years. This result will occur by reason of natural causes, but efforts should be exerted to obtain new outlets for Haitian commodities. No country is in a sound economic position if its prosperity is dependent upon conditions in a single foreign country. World wide conditions of prosperity on the one hand or of depression on the other affect all countries, though to different degrees. But for Haiti to be as closely
dependent upon conditions in France as is now the case can only be regarded as a source of economic weakness.
Exports from Haiti, classified according to countries of destination, appear in Table No. 3. The situation there presented must be regarded as badly balanced. Statistics have also been prepared showing combined imTABLE No. 3
VALUE OF EXPORTS, SHOWING COUNTRIES OF DESTINATION, IN PERCENTAGES FISCAL YEARS 1916-17 TO 1925-26

Average Average
Country of destination 1916-17- 1921-22 1922-23 1923-24 1924-25 1925-26 1916-171920-21 1925-26

Per cent Per cent Per cent Per cent Per cent Per cent Per cent
United States 62.85 13.44 13.55 9.38 11.95 6.82 81.94
France 35.98 56.18 60.58 66.10 63.45 65.82 49.15
United Kingdom 1.45 5.50 4.95 5.10 2.86 3.29 2.90
Barbados. .20 .36 .
Belgium 5.18 8.59 3.62 5.25
Canada 1.05 .80
Canal Zone .08 .08 .18 .22
Cuba. 1.57 .26 .57 .04
Denmark 4.84 5.98 6.74 7.99
Dominican Republic 07 .05 .06 .03
Germany 9.72 24.88 4.70 4.60 2.74 2.44 16.01
Italy 2.77 2.07 1.86 2.25
Netherlands 1.60 1.59 8.12 2.67
S. 19 .58 1.23
Porto Rico .12 .06 .10 .16
Spa .01 .17 46 .8
Sweden .08 43 47
All other .17 .45 .23 .14
100.00 1100.00 1-o 000 100.00 100.00 100.00 100.00

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 7

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

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

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

Percent Per cent Percent Percent Percent Percent Percent
United States 72.53 51.12 46.97 45.53 45.12 89.47 59.09
France 18.39 28.88 33.04 35.52 34.48 87.31 26.12
United Kingdom. 4.03 5.86 6.37 5.92 5.75 5.20 4.92
Bahama Islands .03 .02 .01 .02
Barbados .13 .18 .
Belgium 2.63 1.77 1.84 8.01
Canada .01 .18 .52 .48
Canal Zone .06 .06 .20 .23
Cuba .84 .14 .30 .04
Curacao .11 .15 .23 .89
Denmark 2.26 8.15 3.45 4.28
Dominican Republic .51 .56 .22 .24
Doiia eulc8.69 8.81 8.87 3.50
Germany 5.05 14.14 1.59 1.2 1 1.67 9.87
Italy. 1.59 1.25 125 1.67
Jamaica .05 .04 .03 .03
Netherlands 1.21 1.32 2.21 2.88
Norway .02 .09 .80 .64
Porto Rico 09 .04 .15 .23
Spain .01 .11 .27 .52
Sweden .04 .01 .21 .24
Switzerland .05 .05 .04 .02
Virgin Islands .21 .09 .01
All other .06 .01 .04 .10
Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00


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

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8 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


TABLE No. 5

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


Country Imports Exports Total

Gourdes Per cent Gourdes Per cent Gourdes Per cent
Austria 3.290 . 8,290.
Bahama Islands 22,235 .02 15,085 .1 87,320 .02
Belgium 564,425 .60 5,384,615 5.25 5,869,040 3.01
Canada 123,250 .13 8W09.500 .80 932.750 .48
Canal Zone 220,955 .22 2-20,030 .22 440,985 .23
China 4,220 . 4,220 .
Cuba 54,325 .05 24,565 .03 78,890 .04
Coraao 661,250 .70 98,450 .10 759,700 .39
Czechoslovakia 54,550 .05 54,550 .03
Denmark 275,930 .29 8,069,805 7.99 8,845,735 4.28
Dominican Republic 441,405 .47 25,760 .03 467,165 .24
Ecuador .4,870 4,870 .
Egypt .145. . 145 .
Finland 8,720 8,720 .
France 6,888,910 7.27 65,931,830 65.32 72,820,740 37.31
French Africa 20 13,430 .01 13,450 .01
French Guiana 15 15 .
French Indo-China 10 10 .
Germany 4,366,245 4.63 2,467,685 2.44 6,833,880 3.50
Hungary 135 135 .
Italy 982,550 1.42 2,279,280 2.25 8,261.830 1.67
Jamaica 65,120 .07 975 6.095 .03
Japan 43,630 .04 6,010 49,640 .03
Madeira Islands 1,795 1.795 .
Martinique 18,005 .02 18,005 .01
Mexico .25. .25. .
Netherlands 2,006,350 2.10 2,652,690 2.67 4,659,040 2.89
Norway 6,585 1,241,420 1.23 1,248,005 .64
Palestine .70. 70.
Peru. 3,825 3,225.
Port Rico 295,825 .32 164,485 .16 460,310 .24
Russia. 15 15 .
Spain 118,830 .12 903.675 .89 1,022,505 .52
Sweden 280 475,035 .47 475,315 .24
Switzerland 35,045 .03 10 35,055 .02
S.nria 95 95 .
cited Kingdom 6,845,045 7.24 8,299,555 3.29 10,144,600 5.20
United States 70,150,790 74.22 6,888,835 6.82 77,039,625 39.47
Trinidad 6000 6,000 .
Venezuela 625 625 .
Virgin Islands 9,470 .01 9,470 .

94,257,030 100.00 100,920,025 100.00 195,177,055 100.00



PORTS OF ENTRY OF IMPORTS

As many classes of foodstuffs, practically all clothing and ordinary

comforts and luxuries of the Haitian population are imported, the extent
of imports in each district rather accurately measures the relative prosperity of that district. Material for such an analysis is assembled in Table
No. 6.
During 1925-26 total imports somewhat declined from the level of the
previous year, largely due to surplus stocks which were accumulated at the

end of 1924-25 and distributed to ultimate consumers during the following
fiscal year. Of secondary importance was a moderate decline in the price
level, thereby permitting equal or greater volumes of merchandise to be purchased with less expenditure of money. Accordingly, the import trade as
a whole may be considered as roughly equivalent to that of the previous
year, but the distribution, both geographically and as to commodities, un-

..


HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 9

derwent considerable alteration. For example, the steamship lines decided to omit Aquin as a port of call, with the result that imports virtually ceased. Those ports which approximately maintained their previous position were Cap-Haitien, Gonalves, Jacmel, Miragohne, Ouanaminthe and St-Marc. Cayes, Petit-GoAve and Port-au-Prince suffered a greater decline in imports than that which characterized such trade as a whole. In the case of Cayes, emigration was undoubtedly the cause. As to Port-au-Prince, the decrease can largely be attributed to overstocking of merchandise at the close of the previous year, as such surplus stocks were largely concentrated at the capital.
TABLE No. 6
VALUE OF IMPORTS, BY PORTS OF' ENTRY, FISCAL YEARS 1916-17 To 1925-26
Average Average
Port of entry 1916-17 1921-22 1922-23 1923-24 1924-25 1925-26 1916-17-1920-21 1925-26
Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
quin.156,514 790 46,005 289,810 260.620 4,900 138,470
ellad re. 605 2,065 1,325 28,415 3,241
Cap-Haitien 9,987,651 7.321,05 7,600,360 7,630,340 9,779,755 9,138,525 9,140,330 Cayes 6,443,055 4,373,525 6,447,030 8,494,785 9,561,205 8,324,560 6,941,638 Fort Libert6 257 1,125 1,085 88 438
Glore. 57,915 99,110 96,995 153,815 40,784
Gonaves .3,922.744 3,637,565 3,416,765 3,286,855 4,326,425 3.992,775 3,827,411 Jacuel 3,457,767 8,000.005 4,465.095 4,53,280 6,335,830 6,188,200 4.181,125 Jrrnie 1,942,796 829.695 1,177,630 1,862,720 1,950,200 2,579.320 1,761,34 Mirago~ne 518,426 752,80 1,029,310 930,490 1,110,265 957,895 7S7,298 Ouarnaminthe 27.035 139,285 507,940 545,540 113,050 129,265 157,025 Petit-Go~ve 2,674,944 1,025,645 1,465,705 1,648,995 3,471,400 2,795,930 2.378,239 Port-au-Prince. 41,712,019 36,751,465 40,611,930 39,904,450 58.422,670 53,754,525 43.800,513 Port-de-Paix 2.087,026 1,686,240 1,544,620 1,654,995 2,399,755 3,006,280 2.073,102 Saint Marc 2,329,771 2,232,060 2,413,820 3,096,325 3,858,330 3,207,625 2,595,701
Total 75,260,005 61,751,355 70,789,815 73,480,640 101,187,825 94,257,030 77,776,669

A more pleasant picture is presented by the commerce at Bellad~re, Glore, J~r6mie and Port-de-Paix. Traffic across the border with the Dominican Republic is gradually increasing, explaining the activity at
Bellad~re and Glore, whereas J~r~mie and Port-de-Paix exhibited a gratifying development of commerce during 1925-26. For J6r~mie, this proceeded from an excellent coffee crop and from improved prices for cacao. In the case of Port-de-Paix no one cause can explain the increase, general expansion of activity being evident. Moreover,, returning emigrants introduced additional purchasing power into the Port-de-Paix district.

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

..


10 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

TABLE No. 7
VALUE OF ExroRTS, BY PORTS OF SHIPMENT, FISCAL YEARS 1916-17 TO 1925-26
Port of Average Average
1916-17- 1921-22 1922-23 1923-24 1924-25 1925-26 1916-17shipment 1920-21 19Z5-26

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
quin 517,420 409,470 1,214,755 1,516,610 1,633,455 1,496,005 885,740 BeladSre .235 25 26
Cap-Haitien 10,601,902 7,016,280 8,360,835 6,953,290 11,764,710 14,876,545 10,198,117 Cayes 4,543,658 8,895,805 6,485,915 7,249,835 9,182,855 6,446,815 5,597,902 Fort Libert6. 2,746 7,780 802,505 192,902
Glore 22,255 17,740 10,670 4,410 5,507
Gonalves 4,934,835 4.189,240 5,860,960 6,448,700 8,825,055 7,770,470 5,776.860 Jacmel 8,416,717 6,618,875 9,172,710 8,426,455 12,487,370 14,419,785 9,823,878 J6rrmle 8,350,833 1,196,005 1,604,425 2,803,505 8,515,815 7,510,280 3.288,169 Miragolne 1,009,265 862,785 1,993.845 1,714,615 2,471,460 2,814,775 1,440,325 Ouanaminthe 9,015 2,145 5,350 14,020 7,745 7,160 8,149
Petit-Go~ve 4,167,273 4,580.615 9,421,125 7,950.625 13,059,8380 14,175,060 7,002,317 Port-au-Prince. 23,557,718 17,840,805 18,609,045 17,464.075 21,055,790 18,571,020 21,182.930 Port-de-Paix 8,788,030 2.268,255 3,464,500 4,026,665 4,756.695 6,489,605 8,994,587 Saint Marc 4,480,065 4,648,040 6,437,100 6,795,975 8,247,785 6.838,095 5,511,232
Total 69,649,972 58,561,050 72,955,060 70,831,610 97,018,810 100,920,025 74,358,641

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

..



HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 11

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

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

Port Import Export Total

Gourdes Per cent Gourdes Per cent Gourdes Per cent
.4in 4900 0.01 1,496,005 1.48 1,500,905 .77
Belad re 28.415 .03 . 28,415 .01
Cap-Haitien 9,133,525 9.69 14,876,545 14.74 24,010,070 12.30 Cayes 8,824,560 8.83 6,446,815 6.39 14.771,375 7.57 Glore 153,815 .16 4,410 158,225 .08
Gonalves 8,992,775 4.22 7,770,470 7.70 11,763,245 6.08 Jacmel 6,188,200 6.57 14,419,785 14.29 20,607,985 10.56 J6rdmie 2,579,820 2.74 7,510,280 7.44 10'089,600 5.17 Miragoine 957,895 1.02 2,314,775 2.80 8,272,670 1.68 Ouanaminthe. 129,265 .14 7,160 .01 186,425 .07
Petit-Gotve 2,795,930 2.97 14,175,060 14.04 16,970,990 8.69 Port-au-Prince 53,754,525 57.03 18,571,020 18.40 72,325.545 87.06 Port-de-Paix ,006,290 8.19 6,489,605 6.43 9,495,885 4.86 Saint Marc ,207,625 3.40 6.88,095 6.78 10,045,720 5.15
Total 94257,030 100.00 100,920,025 100.00 195,177,055 100.00

SHIPPING
Haiti was adequately served by commercial vessels during 1925-26. There was no shortage of cargo space, either for imports or exports, but passenger accommodations were not altogether satisfactory. Even for
freight, though facilities are adequate, tariffs are extremely high, thus tending to limit the movement of traffic.
Convincing evidence of the active commercial life of Haiti during 1925-26 may be derived from the statistics of steam vessels which entered and cleared during that year. Such data may be found in Table No. 9.
The total number of such vessels was 565, with net tonnage of 1,123,486. This compared with 503 vessels which touched Haitian ports during the previous year, with a tonnage of 912,756. Thus the cargo space available for freight to and from Haiti was considerably increased over previous years.
As to the distribution of shipping engaged in foreign commerce, both the number and tonnage of American, Dutch, French and German vessels, as well as those under miscellaneous flags, increased, the only decrease occurring in the case of British vessels, in which the number decreased but the tonnage showed enlargement.
For sailing vessels, the declining tonnage indicated in the year 1924-25 was checked, entrances in Haitian ports during 1925-26 amounting to '0,883 tons and the number of vessels reaching 169 as shown in Table No. 10. This was an improvement in both number and tonnage over the

..








TABLE No. 9 NET TONNAGE OF STEAM VEssELs IN FOEIaN COMmEICE ENTERED AND CLEARED, BY REGISTRY AND MONTHS, FISCAL YEAR 1925-26 Steam Vessels Entered


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

October. 1925 I 46,868 6 2,852 10 12,062 3 8,516 4 6505 7 6,746 42 83,569
November 13 54,727 6 7,309 11 11,362 4 10,897 2 3,859 10 7,5 46 95,809
December 15 52,672 4 5,030 12 12,505 2 4,997 3 5,908 12 9.926 48 88,838
January, 1926. 13 60,747 6 15,301 8 8,165 8 6.901 2 859 7 8,087 89 103'060
February 12 45,510 3 20,620 9 9,o 2 6,522 3 4,33 8 6,069 37 92 359
March 12 49,146 9 20,776 10 12,029 4 8,059 1,3 181 9,530 47 101,473
April 14 56,371 6 5,085 11 13,737 5 16,345 4 5901 5 9,938 48 107,377
May 13 56,728 7 5,314 11 12,850 2 6,974 8 544 9 7,797 45 94,802
June 12 45,275 9 k5,7 10 11,351 3 7.146 3 3,15 17 10.b97 54 84,811
July 14 50,953 6 4,048 13 115, 63 3 6,273 3 5,931 17 12,078 56 94,646
August 13 50,781 5 3,268 0 10,357 7,613 4 7,126 14 9,875 49
September 12 43,200 7 4,098 11 12,356 4 19,063 6 6,754 15 11,281 54 87,2
Total.153 612,978 73 96,9 126 140,787 38 100,326 5 62,943 135 109,579 565 1,123,486


Steam Vessels Cleared

October, 1925 13 48,86 5 2,852 10 12,062 3 8,536 4 6,503 7 6,746 42 83,569
November 13 54,727 6 7,309 11 11,362 4 10,897 2 3,859 10 7,O5 46 95,809
December 15 52,6 2 4 8030 12 12,805 2 4,997 3 5,908 12 9,926 48 88,838
January, 1926 13 60,747 6 15,301 8 8,165 8 6,901 2 8,859 6 5,733 38 100,706
February 12 45,510 3 20,620 9 9,300 2 6,522 8 4,3 9 8,423 38 94,713
March 12 49,146 9 20,776 10 12.029 4 5,039 1 1,933 11 9,530 47 101,473
April. 14 56,371 6 5,085 11 13,737 5 16,345 4 5,01 8 9938 48 107,377
lay 13 56,723 7 5,314 11 12,50 2 6974 3 5,644 9 7,797 45 94,802
June 12 45,275 9 5,257 10 11,851 a 7,146 3 5,185 17 10597 54 54,811
July 14 50,953 6 4,045 13 15,563 3 6 273 8 5,931 17 12,078 56 94,646
August 13 W0,781 5 8,268 10 10,857 3 7,618 4 7,126 13 9,102 48 88,247
September 12 43,200 6 3,051 II 12,356 4 30,063 4 3,487 16 12,054 53 8,161
Total 156 612,978 72 95,911 126 140,737 38 100.226 36 61,626 135 100,579 563 1,121,152


t1d







0

tv

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


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

TABLE No. 10

NET TONNAGE OF SAILING VESSELS IN FOREIGN COMMERCE ENTERED AND CLEARED,
BY ]EGISTRY AND MONTHS, FISCAL YEAR 1925-26 Sailing Vessels Entered


American British Haitian All other Total

Month
Num- Ton- Num- Ton- Num- Ton- Num- Ton- Num- Tonber nage her nage ber nage her nage her nage

October. 1925 5 2,962 5 50 4 166 1 1,262 16 4,440
November 1 888 2 18 5 211 1 1.152 9 1.769
December 4 s0 2 47 2 1,163 8 1.240
January, 1926 2 1,428 4 32 2 93 8 1,558
February 2 2,100 5 110 8 69 2 2,636 12 4,915
March 1 349 10 77 8 76 4 1,444 18 1,946
April 2 1,288 18 96 4 171 5 2.435 24 8,990
May. 18 87 3 124 4 2,508 20 2,719
June. 8 1,696 5 42 2 114 2 1,235 12 8,087
July 6 47 3 1.236 9 1.288
August 2 19 1 68 1 125 4 212
September 2 1,887 4 40 2 78 1 1,774 9 8,729
Total 18 12.048 74 648 81 1,217 26 16.970 149 30,883


Sailing Vessels Cleared

October, 1925 5 2,962 6 50 4 166 15 8,178
November. 1 888 2 18 5 211 2 2,414 10 8,031
December 4 30 2 47 2 1,163 8 1.240
January, 1926 4 32 S 125 7 157
February 3 2,058 r 115 8 69 1 1,774 12 4,016
March 2 1,819 10 87 8 76 4 1,190 19 8,172
April 18 96 4 171 5 2,553 22 2,820
May 1 542 18 87 3 124 4 2,256 21 3,009
June 2 1,.08 5 42 2 114 8 2.485 12 3,949
July 1 888 6 47 2 271 9 706
August 2 19 1 68 2 1,090 5 1,177
September .1 542 4 40 2 78 1 1,774 8 2,434
Total 16 10,007 74 668 32 1,249 26 16,970 148 28,889


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

..






TABLE No. 11
VALUE OF IMPORTS, BY REGISTRY OF CARRYING VESSELS, FiscAL YEAR 1925-26

Mer- MerchanCountry chandise dise sub- n ih Dis Dutc Ph Haitian Nor- All Total Per
free of Ject to American riti ans u renc German wegian other cent
duty duty


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


Gourdes
.
. .
5,470

114,455 S. .
-107,915 39,475 159,655

S.
49,935

41,405
.
38,745


8,745 ,. .

110,775





,22,0)80
3,040,240 .i.


Gourdes
3,290 22,235 558,955
123,250 106,500
4,220 54,325 553,335
54,550 236,455
281,750
4,870
145
6,838,975
20 15
20
4,324,840
135
981,870 26,375
43,630 1,795
25
1,99,605 6,585
70
3,325
185,050
118,830
280
35,045
95
6,722,965
67,110,550
6,000 8,525


Gourdes
. .

20,575
99,135 220,955
2,265
85
5
134,075
1,145 4,870
5
403,450
10

121,495
.

43,140

2,465
1,075 8,825
.
15
41,770
4,245
5
2,912,545 41,037,185
1,675 7,965


Gourdes
15,945 10,395

. .
8O5



. .
..
S.
7,835



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












4,325


Gourde

2,015




. i6.

10,025 ..

.?.


.,.
.,.
66,895





. .00 .60.


Gourdes
3,290
2,695 20,315
.
540
1,060
410,080 45,985
44,885
700
. .
15
194,295
10
.,.

2,102,980
135
278,000
10,865
5
1,795
1,995,830
1,535



4,795
250
11,940
60
2,254,485 24,707,230
1,505


Gourdes
. .
S.
16,345 3,800 .
1,415 40,100
8,560
225
25,670
125 6,283,315

10
4,925
90,855 7,080
485
.
15
800 70

S.

56,705
18,880
so
66,235
470 .,.
. .


Gourdes
.
512,400


3,050 251,170
.
78,9135
90,170 .,.




.
15







. .,
7,255 3,975 .,
*1*,*0&


Gourdes
4,490 .7.,1.
7,150
.


. . .
15,560 .
. . . .

994,640 . .


8,838,520 90,418,510 45,677,545 [ 598,530 161,505 j 82,095,370 6,625,610 4,018,640


Gourdes
. .

. .o. .





.
.,.


.
.
15,840. ..,
.


..,




..



.i
.
.
. .


Gourdes
S.
1,800 ..


2,075
.






S.
818,695





S..


S. .





2,255





-6-4,725 .


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


Gourdes
8,290
22,235 564,425 123,250 220,935
4,220 54,825 661,250
54,&50 275,930
441,405
4,870
145 6,888,910 20 15 10
4,366,245 135
982,550 65,120
43,630 1,795
25
2,006,350
6,585
70
3825
295,825
15
118,830
280
35,045
95
6,845,015 70,150,790
6.000
9,470


.
0.02
.60 .13 .22 .05 .70 .05 .29
.47

7-27 .o.



4.63

.07
.04

2.10

.
.32 .12

.03
7.24
74.22
.01
100.00

..












TABLE No. 12

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


Country


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


American


Gourdes

754,515
220,030 17,760
1,807,365

3,30,680
74 085
1,084,995
200
6,010

834,935 .,i
373,285 241,535
10
191,970 3,189,415


British


Danish


Dutch


French


German


Haitian


Norwegian


AlL Other


-L- 11 1 AB No. 121


Gourdes
14.845 2,103,950 809,500


2,717,400
1,500

15,008,615

378&670
46,925 .
.

159,485
.
206.765
145,990 758,375


12,190,790 22,607,895


Gourdes

.2
S.

.9.


Gourdes IGO
1,759,270 .,.
.
81,710
2,851,790 3,905
18,047,905
13,430 805,860
991,440 ..
.
2,115,700
160,185 .i.
288,145 59,980


Gourdes 275,915
.
6.805
120
376,030
8,285
22,012,145 63,945
35,110

.

44,020 27,770 29,925
85,480 8,720


Gourdes
410,965

. .
16.620 317,220
5W0
8,720
6,924,680 1,145,575
19,060
750
.8i
6,985
149,095 59,045 88 0.
18,8W0


Gourdes
140)
.

.
.
.


..
..
..
.


Gourdes .o.
o.

.o. .
.,.
.,.

119,960 ..

.
.


.


. . . . . . ., . . . . . . . .
796,000 730,655 66,970 755,585.
85,500 2,985.675 . 628,245
625. . .


1,150,895 1 80,895, 2 12,991,300 9,8M, w


Gourdes
.ooooo .. .
,.
.oo.
11,570

243,150




4,555
.
.o.ooo.


,. ..
S.


753,970 495,550


Total


Per


W


cent

0
0.01
5.25 hd 0.80
0.22
0.03
0*10
7.99 0.03

65.32
0.01
2:44
2.25 i


2.67 I 1.23 0 0.16 W 0.89 x
0.47 W

6.82

100.00


Gourdes
15,085 5,304,615 809,500
220,030 24.565 98,450 8,069,805 25,760
8,720 65,931,830
13,430 2,467,635 2,279,280 975
6,010 18,005 2,652,690
1,241,420 164,485 903,675
475,035
10
8,299,555
6,888,835 625


100,920,025


I I- I

..



16 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

FOREIGN COMMERCE BY MONTHS AND BY PORTS
Seasonal tendencies in the import trade of Haiti were again accentuated during 1925-26, as contrasted with the apparent trend toward equalization of imports which characterized the previous fiscal year. October and November showed import values considerably in excess of those of the similar months of 1924-25. Undoubtedly this was the conclusion of the abnormal import movement designed to anticipate the new customs tariff, which at one time was expected to become effective on October 1, 1925. Beginning with December, imports during each month were smaller than in the preceding year, with the exception of the months of April, June and July. At the close of the fiscal year, the decline in imports exceeded that which could be explained by the normal fluctuations of commerce, and unquestionably was discounting the smaller crop and lower price of coffee expected in 1926-27.
Although periodicity characterizes the commerce of all of the important Haitian ports, it is most marked at Cap-Haitien, Cayes, Jacmel, Jr6mie, Miragohne, Petit-Goave and Port-de-Paix. Imports at Port-au-Prince tend to be more stable in amount throughout the year, due to the influence of the capital and to its less intimate dependence on agriculture. The rural population, on the other hand, tends to accumulate sufficient supplies during the so-called "active season" to make continued purchases unnecessary during the remainder of the fiscal year.
Distribution of the import trade by months and by ports of entry is shown in Table No. 13. The last two columns of that table demonstrate that the only two ports where imports materially exceeded those of the previous fiscal year were J6r6mie and Port-de-Paix, whereas from moderate to substantial declines occurred at the other ports, particularly Cayes, PetitGoave and Port-au-Prince.
Sharp seasonal fluctuations, as usual, characterized the export trade of Haiti. Some three-fifths of Haitian products were exported during the

..















TABLE No. 13
VALUE OF IMPORTS, BY M0hNTHS AND PORTS OF ENTRY, FISCAL YEAR 1925-26, COMPARED WITH 1924-25


November


Gourdes
420 125
1,536,800
1,020,845 6,400
556810
1,045,780 206 205
125,010
1,340
359,245
5,911,190 564,130 337,585
11,671,885 9,708 485
1,963,40C .


December


Gourdes
55
130
954,365 1,277,790 18,915
480,450 959,355 387,915
111,490
1,320
375,105
4,988,875 888"20
240,745
10,160,430 11,213,510

.
1,033,110


January


Giourdes
81z 9C
748,77t 617,23E
11,000 234,03( 380,97E
142,34, 70.97,1
1,85( 250,66Z
3,584,987, 167.43 240,76(
6,451,93W 8,863,39(

2iiiii


Febru- March ary


Gourdes
435
65
626,560
621,86&
12,470
369,84C 391,375 169,105 80,42Z
1,05z
216,47C 4 435,820
161,410 346,260
7,432,650 9,292,415


Gourdes
520 105
422,335 628,180
11,595
294,58B 463,920 153,85 52,730
1,825 235,475
4,124,255
240,240 563,240
7,392,340 9,014,455

",*2,iii


April I May June July August


Gourdes
370 100
510,000 579,880 26,0.20 289,360 406.96.5
140,925 85,580 1.100 240,780 4,228,420
166,570 242,250
6,918.320 6,760,710
157,610


Gourde8
510 85
510,940 382,050 15,975 275,380 366,220
172,540 71,265 2,370 84,175 3,708,585
143,295
247,920

5,981,310
6,038,750

57,440


Gourdes
330
245
632,480 429,790
26,450 240,940 219,815
97,795 91,510 3,260
152,785
4,211,980 181,925 200,095

6.489,430 5,307,025
1,182,405


Gourdes
155 450
809,015 772,905
10,045 223.525 322,335 275,765 71,615 2,710
228.450 4,708,005
182.615 243,565
7,851,185 6,899,230
951,955


Gourdes
35
3.760
696,665 629,990
3,060
180,105
292,465 156,070
36,600 29,780 92.995 2,682,645
179,595
143,745
5,127,510
8,769,880

8,642,370


September


Gourdes
330
23,190 090,965 401,055 6,250
360,225 846,880 152,800
46,850 80,435 168,405 3,734,360
178,435 169,465

6,362,645 9,230,265

2,867,620


Total 1925-26


Gourdes
4,900 28,415 9,133,525 8,324,560
153,815 3,992,775
6,188,200 2,579,320
957.895 129,265 2,795.P30 53,754,525 3,006,280
8,207,625
94,257,030


6,930,795


Total In1924-25 crease


Gourdes
260,620
1,325 9,779,755 9,561,205
96,995 4,326,425 6,335,830 1,950,200 1,110,265 113,050
3,471,400
58,422,670 2.899,755 3,358,330


101,187,825


Gourdes
27,090


56,820 629,120 16,215 106525

1,8315,770


Decrease
b0


Gourdes
255,7 20


1,236,645 H



152,370 4,668,145



8,266,565 M
W,

to 03


Port of entry



Aquin Bellad1re. Cap-Haitien. Cayes (lore Gonalves Jacmel J6mie liragolne .
Ouanaminthe. Petit-Go~ve Port-au-PrinceI Port-de-Paix. Saint Marc .
Total 192526. Total 1924-25.
Increase 1925-26. Decrease 1925-26.


October


Gourdes
425 70
994,625
960,480
10,635 487,525 992,085
524,520 118,815
2,220
891,880 7,235,405
452.210 231,995
12,897,390
10,089,680
2,307,710 ..

..



18 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

..













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


Port of October Novem- Decem- Janu- Febru. March April May June Ju Au t Sep- Total, Total, In- Deshipment ber ber ary ary ay g tember 1925-26 1924-25 crease crease

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
AuIn 76,145 260,535 211,565 161,480 223,095 158,270 203,280 51,740 15,820 15.210 87,865 31,500 1,496,005 1,633,455 137,450
Sellad re .I [. I. I. . . . . . . 25. 25
Cap-Haiten 2,214,345 2,514,915 1310,285 1,699,30 1,777,240 1,426,885 805,815 527,855 817,265 460.58 427,575 895 5 14,876,545 11,764,710 8,111,835 Cayes 86,020 795,810 693,920 956,9W 986,065 821.590 552,855 206,475 330,290 10,470 51,410 178,420 6,446,815 9,182,855 2,736,040
(lore 165 250 405 50 200 200 165 1,810 390 755 10 10 4,410 10,670. 6,260
Gonalves 712,090 756,735 948,940 1042,395 b50,185 492,550 724,655 625,805 644,100 471,495 187.970 318,550 7,770,470 8,825,055 1,054,585
Jacmel 835,125 1,721,950 2,230.925 1,925,765 2,170,690 1,608,160 1,240,055 1,019825 702,765 874.115 260,975 829,435 14,419,785 12,487,370 1,932,415. J6r6mie 1,021,535 1,247,270 597,255 1.258,895 776,360 517,565 202,305 755.080 801,710 483,855 212.830 125,670 7,510,280 8,515,815 3,994,465 Miragolne 251,710 281,140 389,675 251,480 414,825 173,365 117,410 128,285 102,100 126,860 29,180 48,745 2,314,77 2,471.460. 156,685 Ouanamnthe 1 0 1,050 95 900 450 1,9 5 .885 o 490 225 820 7,160 7,745. .5
Petit-Gove. 1,19,820 1986,00 1,919,15 210.280 1,950,085 986,450 1270,895 1,106,880 722.570 202.255 212,950 97,410 14,175,060 18.059.38 1,115,680 .
Port-au-Prince. 1,231,570 2,610,145 1,154,8102.141.715 2.542,405 2,243,465 1.403,5151,860,155 894,175 652,560 1,417.195 880,310 18,571,020 21,05.5,790 2,484,770
Port-de-Paix 675,555 1,046,110 960,415 1,000,255 679,445 776,665 458,420 227,815 201,650 117,560 117,980 227,635 6,489 6 4.756,695 1,782,910.
Saint Marc 142,510 260,300 860,30 614,605 775,150 1,110,805 1,102,255 917,750 638,690 3227,23 50,73= 28,205 6,88095 8,247,785 1,409,690
Total 1925-26 9,344,300 13,502,510 10,788,515 1',154,21013,146,20510.316.905 8,80.625 6,98,760 5,871,M5 3.243,800 3.356,400 8,676,740 100,920,025. 11,887,305 7,986,090 Total 1924-25 6,473,540 10,281,495 15,395,86514,036,37012,291,03510,087,O6 8,977,240 5.849,745 3,880,575 2,963,545 2,676,665 4,204,770 97,018,810 .
Increase 1927-526 2,870,760, 8,221.015 855,170 278M,940 1,089,015 1,540,960 279,755 679,73 8,901,215 Decrease 1925- . 4,607,50 882,160 8 .,615. .030. .

..


20 HAITI: REPORT OF FINANCIAL ADISER-GENERAL RECEIVER

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

..













TABLE No. 15

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


Commodity


Cem ent . Chemical and pharmaceutical products. Fibers, vegetable and manufactures of. Foodstuffs:
F ish .
Wheat flour .
M eats .
R ice .
A ll other Iron, steel and manufactures of Leather .
Lum ber Liquors and beverages Oils mineral:
b asollne .
Kerosene .
All other Soap Textiles Tobacco .
All other .

Total .


Average
1916-17-1920-21


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

2,880,691
10,671,803 1,129,413 1,735,650
6,544,557 3,460,075
780,115
1,055,151 1,229,720

354,469
1,108,696
175,174
3,849.333
21,766,874
1,412.048
14,394,911

75,260,408


1921-22


Gourdes
283,505 775,110
1,472,715
2,910,160 7,799,585
1,160,460
676,990
6,700,770
2,139,475
601,550 909,865
1,255,080

442,255 970,395 165,725
8.195,070
16,878.20
1.765,430
11,649,495
61,751,855


1922-23


Gourdes
403,675
765,115
2,193,585
2,588,225 11,253,000 1,298 145
969,835
6,482,060 2,676,445
757420
1,838,780 1,651,195

700,765 788,315 223,700
2,971,060
22,695,455 1,586,585 9,851.455

70,789,815


1923-24


1924-25


1925-26


1 1


Gourdes
314,755 808,170
1,457,125
2,029,515
14,652,430 1.317,850 1,120,185
4,345,220 2,775,285
618,515
1,261.840 1,325,700
692,605 852,280 237.720
2,787,520 20,985,675 1,407.290
14,291,%0

73,480,640


Gourdes
451,215
1.284,460 2,426,225
4,176,380
12,880,450 1,680,245 .1,487,915 8 382,905
4,791,505 1.117,390 1.503,515 1,626,385
966,245 907,580
482,325
2,714,180 34,597,140 1,778,740
22,983025

101,187,825


Gourdes
677,455
1.010,670 1,784,775
4,740,855 13,639,410 1.856595
2,011,900 8,023,060 4,675,535
834,260
1,715,70 1,709,380
1,476,300
1.161,470
6g8,910
8,636,655
20,897,685
2,313.300
21,443,085
94,257,030


Average
1916-17-1925-26 0
h-4




Gourdes
439,938 V
786,512
1,985,766 t

2.834,858
11,358,139
1,290.986
1,514,507
6,165,(0 3,435,862
782,971 E
1,200,448
1,331,684
605,052
1,021,852
268,425 t
3,455,115
22.488,606 W
1,591.15
15,219,358
77,776,868
1,1,0

..


















TABLE No. 16

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


Average Average
Commodity UnIt 1916-17-19&0-21 1921-22 1922-23 1923-24 1924-25 1925-26 1916-17-1925-26


Cement Kilo 3,518,741 2,516,977 4,870,319 5,006,576 6,069,066 9,916,484 4,597,313
Foodstuffs:
Fish Kilo 2,166,642 8,189,173 3,508,062 2,749,58 4,574,328 7,473,341 3,282,765
Wheat flour Kilo 12,854,104 14,874,210 30,971,319 41,829,095 25,579,598 28,052,052 20,257,679
Meats Kilo 500,144 714,041 879,974 895,465 784,487 1,341,801 711,649
Rice Kilo 675,744 1,263,508 2.586,167 3,275,894 8,118,540 4,070.069 1,767,490
Liquors and Beverages Liter 686,337 818,806 811,096 1,043,30 1,824,142 1,637,869 906,193
Lumber Cubic meters. 6,769.43 9,114.04 14,764.00 14,277.23 16,052.82 17,398.84 10,545.36
Oils, mineral:
Gasoline Liter 547,523 837,476 1,781,588 2,081,498 2,586,369 8,984,266 1,400,881
Kerosene Liter 2,894,-69 3,077,366 3,338,010 3,454,020 3,590,164 4,658,022 8,259,148
Soap Kilo 2,830,380 2,072,001 3,666,687 4,875,339 8,413,898 4.500,183 3,218,001
Textiles Meter 22,423,413 26,674,986 30,429,726 21,268,858 36,465,902 3,216,424' 25,351,464
Tobacco . Kilo 694,984 616,009 682,336 659,126 912,776 1,239,290 758,446

Kilos; estimated meters 23,558,101

..


HAITI: REPORT OF FINANCIAL 'ADVISER-GENERAL RECEIVER 23

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

Average Average
Commodity 1916-17- 1921-22 1922-23 1923-24 1924-25 1925-26 1916-171920-21 1925-26

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Beeswax. 59,995 4.855 2,435 4,405 6,560 1,980 32,021
Cacao. 2.726.921 1,870,620 1,326,740 696.765 921,040 1,884.870 1,983,464 Coffee 46.999.159 87,436,560 54,321,045 51,808,880 76,999,495 81,621,600 53.718,438 Cotton, raw 5,595.881 7,073,035 9,140,510 10,343,140 9,961,320 9,416.535 7,391,395 Cottonseeds 428.686 584,860 985,035 1,012,900 498,615 724,610 594.945 Honey 794.093 310,380 225,985 148,275 473,980 563,970 569,306 Lignum-vite. 436,616 131,285 438,310 90,180 140,830 200,890 318,458 Logwood .6,145.079 2,266.780 2,493.310 1,675.330 2,672,680 2,323.465 4,215,686 Logwood extract 193,882 267,985 389,730 528,020 780,520 498,415 343,408 Skins 1,502,690 825,625 370,410 513,355 465,810 448,190 963,684 Sugar 1,876,976 2,687 875 2,418,895 3.102,060 1,882,660 1,605,500 2.108,087 Turtle shells 61,149 66.550 50,595 134.520 117,055 107,305 78,177
All other exports 2,828,645 1,035,110 792,560 823,780 2,098,345 1,522,695 2,041,572
Total 69,649,972 53,561,050 72,955,060 70,881,610 97,018,810 100,920,025 74.358.641

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

..


24 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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

Average Average
Commodity 191-17- 1921-22 1922-23 1923-24 1924-25 1925-26 1916-171920-21 1925-26

Kilos Kilos Kilos Kilos Kilos Kilos Kilos
Beeswax. 19,179 2,698 1.500 1,462 8,292 598 11,045
Cacao 1,958,938 2,152,145 2,019,847 1,647,029 1,533.772 2,190,5q8 1,933,808
Coffee 29,308,341 28,599,337 35.848.208 29,402.200 30,767,100 35,683,690 30,684,224 Cotton, raw 2,488,291 4,193,575 3,361,709 3,323,389 3,605,749 4,994,526 3.192,040 Cottonseeds 2,480,810 8,111.376 5,826,236 5,842.327 2,468,946 5,772,803 4,042,574 Honey 731,881 707,611 455,097 308,048 648.846 619,931 639,894 Lignum-vitae 4,036,786 2,027,384 5,210,157 2,254.632 2.460,663 1,601,543 3,373,831 Logwood 54,889.414 29,350,604 34,78,658 21,563,005 32,303,035 21,587,180 41,852,955 Logwood Extract. 118.537 626.852 1,084,471 778,777 1,020,280 785.512 488,858 Skins 283.467 103.865 135.632 155,754 129.316 136.843 207,875 sugar 2,543,397 10,826,843 4,656,967 6,242,781 5,359,360 5,973,839 4,577,678 Turtle shells 1,635 749 1.274 1,972 1,973 1,423 1,557

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

..















TABLE No. 19

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


Port Coffee Cotton Logwood Sugar, raw Cacao, crude

Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes
Aqutn 528,189 1,203.205 78,670 149,665 649,713 64,985 760 660
Cap-Haltien 5,318,017 12,163,315 81,038 140,725 11,591,860 1,237,800 281,768 245,405
Cayes 2,696005 6,195,360 54,780 120,985 166,212 18,675 . 2,680 2,325
Gonalves 2,403,052 5,512,260 954.106 1,744,600 793,007 78,840 . .
Jacmel 5,688,054 12.989,325 603,748 1,138,335 . .
JIromie 2,850563 6,531,590 11,858 19,250 1,015,143 873,610
Mirago ne 942,383 2,189,895 721,875 76,310 .
Ouanaminthe 53 100 .
Petit-Go~ve 6,140,026 14,021,240 4,143 8.245 . 81,166 69.825
Port-au-Prince 6,036.543 13,768,015 805,301 1,518,330 5,978,839 1,605,500 873,737 320.720
Port-de-Paix 2,575.970 5,855,455 6,597 1.100 1,178,750 144,000 432,344 372,825
Saint M arc 504,815 1,191,840 2,394,790 4,564,300 6,486,263 702,855 . .
Total 1925-26 35,683,690 81,621.600 4.994,526 9416,535 21,587,180 2,323,465 5,973.839 1,605,500 2,190,598 1,884,870
Total 1924-25 30,767,100 76,999,495 3,605,749 9,961,320 32,30,035 2,672,580 5,359,860 1,882,660 1,533.772 921,040
Increase 1925-26 4,916,550 4,622,105 1,388,777 . 614,479 656,826 963,850
Decrease 1925-26 544,785 10,715,855 349,115 277,160 .

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26 IHAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

TABLE No. 20
PERCE',NIAGE OF VALUE OF EXPORTS, BY COMMODITIES FiscAL YEARS 1916-17 TO 1925-26

Average Average
Commodity 1916-17- 1921-22 1922-23 1923-24 1924-25 1925-26 1916-171920-21 1925-26

Per cent Per cent Per cent Per cent Per cent Per cent Per cent
Coffee .61.46 69.90 74.46 73.09 79.87 80.88 68.50
Cotton. 8.73 13.21 12.53 14.59 10.27 9.33 10.86
Logwood 9.31 4.23 3.42 2.36 2.75 2.30 6.16
Sugar, raw 3.27 5.02 3.32 4.38 1.94 1.59 3.26
Cacao, crude 4.36 2.06 1.13 .98 .95 1.87 2.88
All other 12.87 5.58 5.14 4.60 4.72 4.03 8.84
100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

..















TABLE No. 21 o

90
QUANTITY AND VALUE OF EXPORTS, BY CO M~ODIrIES AND MONTHS

FiscAL YEAR 1925-26

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

Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes Kilos Gourdes Gourdes Gourdes
October, 1925 3,688,445 8,768,460 13,069 34,220 310,742 81,815 185,213 143.385 366,420 9.344,300
November 5,714,960 12.714,315 2,351,764 240,220 326,031 282,605 265,370 13,502,510
December 4,555,482 10,153.210 .2. 2,210,093 247,775 326,249 283,260 104,270 10,788,515 .
January, 1926. 5,070,135 12,495.350 13,214 33,745 1,29,769 146,045 831,261 287,705 191,565 13,154,210 t
February. 4,956,852 11,718 215 436,414 936.125 668,449 75.105 159,023 188,065 278,695 13,146,205
March. 3,051,696 6,825,515 941.829 1,95,340 3,249,579 878,875 3,062,833 796,000 70,020 60,785 300,390 10,316,905
April .2,412,423 5,187,285 1,125,270 2,111,250 1,814,577 203.885 171,311 148,740 429,465 8,080,625
May 1,945,851 4,258,350 974,679 1,755,675 1,120,171 125,860 .206,097 178,825 620,050 6,938,760 1;d
June. 1,336,692 3,044,270 715.384 1,280,435 2,537,528 285,090 .243,943 212.655 549,105 5,371,555
July 783,324 1,754.250 446,700 768,985 2,137,646 231.450 114,961 99,810 388,855 3,243,300
August 795,430 1,750,245 197,985 331,045 880,888 81,005 2,911,006 809,500 28,131 24,415 360,190 3,356,400
September 1,372,400 2,952,135 180,582 209,765 3,005,979 276,340 28,358 24,620 213,880 3,676,740
Total 35,683,690 81,621,600 4,994,526 9,416,535 21,587,180 2,323,465 5,973,839 1,605,500 2,190,598 1,884,870 4,068,055 100,920,025 b

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28 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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

..








TABLE No. 22
IMPORTS AND EXPORTS OF CURRENCY, FISCAL YEARS 1922-23 TO 1925-26


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

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

Total .


1922-28


1923-24


1924-25


1925-26


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


Glurdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gurdes Gourdes Gourdes


".". .
1. .,. . . . . . . . . . . . i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. .
406 0,000 . . . ,000 . . .
.
. . I . . . . . . . . . .
5,,000. . . .
. ,.50 4. 0. . ,. . . . . . .
. . .
. . . . . . . .4. . I .
.2.6.0 .0. 000 . .



. . . 8500 . . . .00,000
5.,000 2,105. .1,000,000
. 1,000,000 29,940. . . 2 500 ,500,000
25,000 150,000 42,000 . .
84,250 400,000 28,000 . .

.5,4. 0. .W . .
.8. 0,340 . . .
. 18,5w0. 146,000 .
19.750 25,000. 2,105,000 515.000*
1,0251 22,800 :::: 1*****I*. .**---.*1,086,155 500,000 1,. 50M- 1,003,500


400,000 1 169,750 1 145,700


1,025 223,890


25,000 11,750,0W00 1,066,095 1 533,750 1. 12,277,500 3,318,50W

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30 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


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

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32 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 33

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

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

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34 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER
It should be recalled, furthermore, that in the countries just mentioned

five per cent of customs receipts is allowed for customs purposes alone, whereas in Haiti this allowance, diminished by twenty per cent which must be reserved as commission of the bank, is further diminished by the fact that all activities of the Financial Adviser's office, as well as facilities for effecting payments of all government employees and those facilities concerned with the central accounting system are supported by the five per cent account.
During 1925-26 accruals to the receivership fund were Gdes. 2,038,696.24, thus passing the two million gourdes mark for the first time. Expenditures, on the contrary, were smaller than during either of the two previous fiscal years, with the result that a surplus of Gdes. 340,316.38 was shown at the end of the period. As explained in the annual report of this office for 1924-25, the bank commission for two years was discharged during that fiscal period. When allowance is made for paying in 1924-25 the bank commission of two years, it is evident that expenditures of the Financial Adviser-General Receiver closely compared with those of the previous year.
With the exception of the year 1918-19 the surplus of receipts over expenditures was the greatest for any year of the intervention. This surplus added to those accumulated in previous years gave to the receivership an unobligated balance of Gdes. 693,778.52 on September 30, 1926. A working balance of this magnitude not only protects the receivership from sudTABLE No. 23
RECEIVERSHIP FUND, FISCAL YEARS 1916-17 TO 1925-26


September 1916 1916-17 1917-18. 1918-19. 1919-20 1920-21. 1921-22 1922-23 1923-24 1924-25 1925-26 .


Five per Interest
Cest o I Total Expendtcets on Series receipts tures Surplus Deficit
receipts Bbod

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
60.211.85 60,211.85 89,850.15 29,638.80 914,794.70 914,794.70 796,625.70 118,169.00 755A6480 755.464.80 741,055.80 14,409.00 .
1,482 176.60 .1,432,176,60 700,035.60 732,141.00 1,603,639.95 1.603639.95 1,380,460.60 223,179.35 882,854,05 882.854.05 1,452.073.10 569,219.05 1.377,811.70 1,377,811.70 1,279,142.25 98,669.4. 1.555,057.00 1,555,057.00 1,438.506.15 116,550.85 1,607.569.51 1,607,569.51 1,896.312.08 288,762.57 1,787,500.90 1,787,500.90 1,F49,57.49 62,036.59 2,029,741.59 8.951.65 2,038,696.24 1,698,379.86 640,316.8. .


Total 14,006,822.65 1 .954.65 14,015,777.30 13,321.99.78 1,643,435.03 949,656.51 Average .1,94,661.08 895.47 1,395,556.55 1,823,214.88.
949,656.51 .
Surplus for period 693,7,8.52.

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 35

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

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

Adminis- Civil pay Customs Permanent Bank Total
tration clerks operation improvements commission
Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
September, 191. 89,850.15 1916_17. .796,W25 70 917-18. 741,05580 1918-19 . 700,035.60 19-20 2964. 508,57075 114,500.00 427,755.85 1,380,460.60
1920-21 .408,798.70 17,700 00 547,194.55 478,379.85 1,452,073.10 1921-22 386.326.70 17,925.00 605,77.60 269,116.95 1,279.142.25 1922-23 481,672.40 19,3'25.00 600,627.10 .33,881.65 1,438,506.15 1923-24 435,347.21 20,100.00 648,959.62 500,000.00 291.925.25 1 ,896,332.08 1924-25 440,161.07 21,155.00 673,495.96 57,745.41 656,980.05 1,849.537.49 1925-26 467,996.66 669,94.41 155,040.47 405,948.32 1,698,379.86
Average 421,848.11 19,241.00 607,716.57 206,821.47 409,141.13 1,332,199.88

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

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36 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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

Repairs and
Permanent Im- Improvements to
provements paid plant and equip- Total
Port from 5 per cent ment paid from
fund* general funds of
the Government
Gourdes Gourdes Gourdes
Anuin 19,722.03 19,722.03 Beylad4re. 4.674.43 4.674.43 Cap-Haitien 8,913.58 . 8,913.58 Gonaives 3,183.07 3.183.07
Jacmel 30,646.17 51,652.90 82,299.07
J6rmie 50.00 172.50 222.50
Ouanaminthe 18,558.35 18.558.85 Petit-Goave 14,572.50 75.00 14 647.50
Port-au-Prince 22,257.88 134,806.02 157.063.90
Port-de-Paix . 35,283.25 7,763.26 43(046.51
Saint Marc 362.28 116,930.61 117,292.89
Total 155,040.47 814,583.36 469,623.83
*Repairs, the cost of which is charged to the 5 per cent fund, are included in the cost of customs operation and are not charged to permanent improvements.
By reason of the unprecedented customs receipts, the one per cent commission of the bank, based on such receipts, also exceeded all previous records since the present rate of commission was established, amounting to Gdes. 405,948.32. Therefore it may fairly be said that costs of all operating activities of the Financial Adviser-General Receiver, strictly considered, were almost identical with those of the two previous years, and that the apparent increase in expenditures was in great part explained by the enlarged

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 37

program of permanent improvements for the Customs Service and the increased commission which the bank received under its contract.
As in previous years, the Haitian government devoted certain funds to the maintenance, repair and improvement of customs facilities. Such expenditures from the treasury, as opposed to those from the five per cent fund, amounted to Gdes. 314,583.36 during 1925-26. This compares with Gdes. 282,554.12 for similar purposes during the previous year. Thus total expenditures for repairs and improvements to customs plant and equipment provided both from the receivership fund and from the public treasury, amounted to Gdes. 469,623.83, as contrasted with Gdes. 340,299.53. during the previous year.
In this connection it should be stated that ordinary repairs which are charged to the five per cent fund are included in the cost of customs operations rather than shown as permanent improvements. Therefore actual expenses for the upkeep of the customs plant were somewhat greater than the foregoing figure.
Of principal importance in the construction program were the following, which were paid for from the five per cent fund:
Aquin-custom-house
BelladLre-custom-house
Cap-Haitien-concrete floor in warehouse
Jacmel-residence for collector JNr4mie-residence for collector
Ouanaminthe-custom-house
Petit-Goave-residence for collector
Port-au-Prince--drainage canal; raising floor of warehouse
Port-de-Paix-custom-house
St-Marc--residence for collector

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

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

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38 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


TABLE No. 26

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


Materials Trans- Miscel- Permanent
Month Salaries and portation ln improve. 'Total
supplies aeous ments

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
October 30.184.15 3.513.29 754.60 1,618.26 36.070.30
November 30,493.48 4,858.83 88.50 7,128.55 42 569.86
December 32,985.15 2,121.80 5,862.60 40,969.55
January 30,476.65 1,210.45 367.22 1,131.52 33,185.84
February 31,277.48 2,672.90 722.71 1,282.13 35,955.22
March 36356.65 2,426.24 57.41 11,941.66 50,781.96
April 29,956.65 687.30 496.62 2.399.94 33,540.51
May 32,403.55 2,031.00 1,017.83 3,976.49 39,428.87
June 29,112.90 742.08 92.17 7,265.41 37.212.56
July 37,126.22 2,427.05 535.99 6.271.37 46,*%0.63
August 30,972.89 1.300.94 341.89 1,248.36 33,861.08
September 34,168.31 1,616.15 561.10 1,712.22 38,1177.78
Total .385,514.08 25,608.03 5,036.04 51,838.1 467,996.66
Total 1924-25. 375,608.58 47,034.28 17,075.81 21,597.40 461,316.07



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

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


TABLE No. 27

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


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

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
October 50,034.20 2,713.96 342.80 4,058.53 13,500.87 70,650 36
November 48,687.52 2,606.32 357.43 3,087 27 5,996.75 60,735.29
December.47,34902 2,096.36 2,319.29 3,263.97 21,054.08 76,382.72
January 49,585.71 2.493.86 1,095 20 2,398.81 14.983 08 70,556.66
February 47,125.54 3,065 25 207.65 6,183.20 17,712.55 74,294 19
March 47,247.80 2,327.70 446.60 4,238.61 23,906.86 78,167.57
April 46,759.22 1,891.98 188.29 3,795.35 31,922.52 84,557.36
May 51,214.53 1,463.80 1,563.16 3,811.47 6,125.88 64,178.84
June 52,354.71 1,629.90 1,152.85 7,86740 5,049.24 68,074 10
July 42,849 55 2.275.50 629 71 2,801.57 6,262.61 54,818.94
August 47,322.30 1.512.90 350.55 5,721.60 5,164.67 60,102.02
September 47,657.42 2,312.88 808.15 7,547.02 3,361.36 61,716.83
Total 578,687.52 26,450.41 9,461.68 54,794.80 155,040.47 824,434.88
Total 1924-25. 586,281.77 35,944.92 13,423.77 37,845.50 57,745.41 731,241.37

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 39

permanent improvements in several ports which were installed at the expense of the five per cent fund.
Percentages are usually more informative than are other forms of data. Thus in Table No. 28 the relative importance of the several ports is strikingly illustrated, and comparisons can readily be made of the costs of operation at each port. It is clearly unfair to classify the cost of an important permanent improvement as an ordinary operating charge. Accordingly there has first been computed the percentage cost of current operations at each port, which is the ratio that operating expenses bear to customs receipts collected at that port. These percentages reveal that the most economically operated port was Petit-Gohve, followed by Port-dePaix, Cap-Haitien and Miragoane in the order named. Of the principal ports of entry, Gonaives showed the highest operating ratio. The data under discussion indicate that the three border custom-houses of 0uanaminthe, Glore and Bellad~re were again unprofitable, from the fiscal point of view, operating expenses in the former absorbing almost one-fifth of revenues, whereas at the latter custom-house the costs of operation were actually greater than revenues collected. There is no immediate prospect of improving the foregoing situation, as the three custom-houses are located on the Dominican border and are maintained for administrative rather than financial purposes. However, it is interesting to note that in each case the ratio of costs was materially reduced during 1925-26, and there is reason to believe that the new tariff, which. imposes a customs duty on live stock, may result in the profitable operation of Glore and Bellad~re, as considerable imports of Dominican cattle are likely to cross at the points served by those custom-houses.
As customs receipts during 1925-26 exceeded those of the previous year while operating expenses remained practically constant, it follows that the percentage cost of customs operations sharply declined from .0188 in 1924-25 to .0165 in 1925-26. In contrast, expenditures for permanent improvements increased from Gdes. .0016 in the previous year to Gdes. .0038 in the year under review. Thus total expenditures for the customhouses constituted 2.04 per cent of customs revenues collected during 1924-25 and 2.03 per cent in 1925-26, in spite of increased expenditures on permanent improvements during 1925-26.
As the costs of the central office of the Financial Adviser-General Receiver approximated those of the previous year while customs receipts, upon which percentage costs are computed, substantially increased, it follows that the relative cost of administration 'declined, the operating ratios being Gdes. .0129 per gourde collected in 1924-25 and Gdes. .0115 in 1925-26.
Therefore total expenditures for administration and customs operation, including the cost of permanent improvements, constituted 3.18 per cent of customs receipts in the year under review, a figure which compares with

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TABLE No. 28

DISTRIBUTIOrr oF EXPENDITURES FROm RECEIVERSIIIP FUND, FISCAL YEAR 1925-26


Ratio Cost per Cost per Cost per
Custom to total Customs Permanent Cspr Cott pr
Port receipts customs operation gourde gourde Total cgourde
receipts collected improvements collected collected


Gourdes Per cent Gourdes Gourdes Gourdes Gourdes Gout des Gourdes
Port-au-Prince 17,740,065.95 48.72 309.650.96 .0174 22,257.88 .0013 331,908.84 .0187
Cap-Haitien 5.098,458.19 12.56 70,841.95 .0139 8,918.58 .0017 79,755.53 .0156
Cayes 3,603,179.70 8.88 60,917.11 .0169 60,917.11 .0169
Jacmel 8,582.883.43 8.78 53,749.11 .0151 80,646.17 .0086 84,895.28 .0287
Petit-Golve 2,718,263.98 6.70 30,921.21 .0114 14,572.50 .0053 45,493.71 .0167
J6r6mie 2,043,194.41 5.03 86,791.45 .0180 50.00 .0000 36,841.45 .0180
Gonalves 1,913,612.80 4.71 40,127.43 .0,210 40,127.43 .0210
Port-de-Paix 1,797.36.15 4.43 21,856.60 .0122 35,283.25 .0196 57,139.85 .0318
Saint-Marc 1,829,706.76 8.28 26,203.56 .0197 362.28 .0003 26,565.84 .0200
Miragoane 584,132.72 1.44 8,816.14 .0143 8,M6.14 .0143
Aquin 180,928.53 .44 3,477.88 .0192 19,722.03 .1090 23.199.91 .128
Ouanaminthe 14,229.77 .03 2,616.05 .1838 18,558.35 1.3042 21,174.40 1.4880
Glore 1,558.49 .00 1,859.95 1.1973 1,859.95 1.1973
Bellad~re 1,485.86 .00 2,025.01 1.8629 4,674.43 3.1459 6,699.44 4.5088
Total customs operation 40,594,831.74 100.00 669,394.11 .0165 155,040.47 .0038 824,434.88 .020
Administration 467,906.66 .0115
Total administration and customs operation . . 1,29-2,431.54 .0318
Bank com m ission 405,948.82 .0100
Total expenditures from five per cent fund . 1,698,879.86 .0418


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HAITI: REPORT OF FINANCIAL ADVISER---GENERAL RECEIVER 41

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

Average Average
Port 1219-20 to 1924-25 1925-26 1919-20 to
1923-24 1925-26
Gourdes Gourdes Gourdes Gourdes
Aquin 4,144.35 3,473.83 3,477.88 3,953.35
Belad~re .898.96 2,000.30 2,025.01 1.217.15
Cap-Haitien 73,190.96 85,065.19 70,841.95 74,551.70 ayes 50.932.83 60,765.24 60,917.11 53,763.79
lore. 860.12 2,021.85 1,859.95 1,168.91
Gonalves 37507.43 36.831.10 40,127.43 37,785.10
Jacmel 48,404.08 48,431.19 53,749.11 49,171.63
J~r~mle 29,439.82 33.749.14 36.791.45 81,105.67
Miragoine 6,098.56 7,615.28 8,356.14 6.637.75
Ouanaminthe 4,180.53 3.481.29 2,616.05 3,857.00
Petit-Go ve 26,449.52 34,106.17 30,921.21 28,182,14
Port-au-Prince 256,158.43 05,140.81 809,65096 270.797.63 Port-de-Paix 17,548.24 19,687.95 21.856.60 18.469,89
Saint Marc 22,074.54 31,127.12 26,20.3.56 23,957.63
Total Customs operation. .577,888.17 673,495.96 669,394.41 604,618.74
Administration and civilpay clerks.423,965.80 461,316.07 467,996.66 435,591.68
Total administration and operation 1,001,853.97 1,134,812.03 1,137.891.07 1,040,210.42 Permanent improvements 122,900.00 57,745.41 155,040.47 118,183.70 Bank commission 360,211.91 656,980.05 405,948.82 409,141.13
Total expenditures from 5 per cent fund. 1,484,965.88 1,849,537.49 1,698,379.86 1,567,535.25

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

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42 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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

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

Gourdes Gourdes Gourdes Gourdes
Aqun. .0209 .0128 .0192 .0192
Beladre. 4.1225 2.8871 1.3629 2.6063
Cap-Haitien .0230 .0213 .0139 .0209
Cayes .0195 .015 .0169 .0185
Fort Libert. .0975 . .0975 Glore . 1.8248 3.0370 1.197m 1.7881
Gonalves . .0251 .0192 .0210 .0234
Jacmel .0209 .0158 .0151 .0189
Jr6mle . .076 .0276 .0180 .0803
Miragollne .0137 .0127 .0143 .0136
Ouanaminthe. 1.1820 .4073 .1838 .6673
Petit-Golre .0163 .0134 .0114 .0148
Port-au-Prince .0217 .0190 .0174 .0205
Port-de-Paix. 0167 .0161 .0122 .0156
Saint-Marc. 222 .0248 .0197 .0222
Total customs operation .0217 .0188 .0165 0.203
Administration and civil pay clerks .0161 .0129 .0115 .0146
Total administration and operation . 0378 .0317 .0280 .0349
Permanent improvements . .0046 .0016 .0038 .0039
Bank commission .0136 .0184 .0100 .0137
Total expenditures from 5 per cent fund. .060 .0517 .0418 .0525


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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 43

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

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44 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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

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


October November December January February March April May June July August tep-r Total

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes (Gourdes lourdes Gourdes Gourdes Gourdes Gourdes
Administration 36,070.30 44,323.20 39,215.71 83,185.84 35,955.22 50,781.96 31,540.51 39,428.87 37,212.56 46,360.63 33,864.08 88,057.78 467,996.66
Bank commission. 405,948.82 405,948.82
Permanent Improvements 13,M)o.84 5,996.75 21,054,08 14,983.08 17,712.55 23,906.86 31,922.52 6,125.88 5,049.24 6,262 61 5,164.67 8,861.86 155,040.47
Aquin 256.00 845.25 265 00 276 90 274.15 300.25 286.00 268.00 167.00 477 50 269.00 292.83 3,477.88
Helladre 165.00 168.96 166.25 182.35 165.00 165.00 165.00 165.00 187.45 165.00 165.00 165.00 2,025.01
Cap-Haitien 6,242.21 5,965.98 5,196.90 5,396.48 5,351.48 5,229.75 4,777.93 6,092.40 9,701.54 4,674.90 4,748.37 7,464.06 70,841.95
Cayes 5,545.25 5,014.65 4,924.00 5,053.45 4,961.50 5,032.70 5,449.88 4,808.15 5,161.35 4,796.55 4,918.80 5,231.33 60,917.11
Glore 152.80 150.00 155.85 150.00 152.40 156.25 157.50 155.85 150.00 162.25 150.00 167.05 1,859.95
Goeaves 4,155 23 4,238.56 2,440.91 2,872.90 3,138.45 8,122.65 3,262.96 2,997.80 4,323.98 1,855.05 3,690.15 4,028.79 40.127.43
Jacmel 4.342.35 4,155.48 4,463.71 4,592.21 5,004.88 4,249.85 4,280.93 4,170.35 4,213.45 8,971.85 6,416.55 3,887.50 53,749.11
J6rmie 2,641.60 2,457.94 2,562.98 2,657.40 2,730.49 2,463.90 3,959.98 6,624.55 2,254.52 2,928.41 2,575.50 2,934.18 86.791.45
Mliragolne 598.85 634 45 623.20 671.70 825.25 590.05 591.11 622.65 556.40 626.00 654.00 1,3862.48 8,356 14
Ouauaminthe 182.90 175.00 192.78 190.73 175.00 179.50 188.15 170.83 175.00 175.00 458.55 352.61 2,616.05
Petit-GoAve 2,64755 2,492.35 3,025.98 2,293.30 2,668.10 2,266.25 2,327.00 2,320.95 3,407.60 1,188.05 2,250.00 4,034.08 80,921.21
Port-au-Prince 26,283.97 25,177.37 27,520.65 27,515.76 27,544.89 26.743.18 23,368.81 24,381.21 30,257.34 23,955.91 22,855.83 24,046.04 309,650.96
Port-de-Paix 1,619.45 1,613.75 1,490.45 1,562.60 1,455.00 1,505.00 1,700.75 1,673.75 1,619.50 1,635.25 3,800.40 2,180.70 21,856.65
Saint-Marc 2,316.33 2,148.80 2,499.98 2,157.80 2,135.10 2,256.38 2,118.84 3,601.47 849.78 1,944.61 1,965.70 2,2082 26,203.56
Total 106,720.66 105,058.49 115,798.43 103,742.50 110,249.41 128,949.53 118,097.87 103,607.71 105,286.66 101,179.57 93966.10 505,722.93 1,698,879.86
Cost per gourde of
customs receipts:
Administration 0082 .0095 .0079 .0090 .0099 .0143 .0126 .0146 .0159 .0174 .0148 .0128 .0115
Bank commission . . . . . .1367 .0100
Permanent Improvements .0030 .0012 .0041 .0041 .0048 .0067 .0120 .0022 .0022 .0024 .0023 .0011 .0038
Customs operation .0130 .0117 .0110 .0152 .0156 .0152 .0198 .0216 .0270 .0183 .0240 .0196 .0165
Total 0242 .0224 0.280 .0283 .080 .062 .0444 .0384 .0451 .0381 .0411 .1702 .0418


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46 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

TABLE No. 32
OPERATING ALLOwANCE OF INTERNAL REVENUE SERVICE
Fifteen per Expenses
cent of Current from Total
Internal expenses previous expenses Surplus revenues year
Gourdes Gourdes Gourdes Gourdes Gourdes
A ad September, 192 110,195.90 75,254.27 75,254.27 34.941.63
. a ete br. 618,488.92 820,888.02 29.886.54 850,274.56 268214.86
1925-26. 623,607.59 273,904.56 30,294.20 304.198.76 319,408.83

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

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TABLE No. 33

COSTS OF INTERNAL REVENUE SERVICE, BY OBJECTS OF EXPENDITURE, FISCAL YEARS 1923-24 To 1925-26


Administration and operation Cost per gourde collected


Materials and Transpor- Bank Adminis- Bank
Salaries MaeplsMiscellaneous Total tration and Totan
supplies station commission operation commission


Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
August and September, 1924 36,518.54 31,285.55 1,463.74 5,986.44 .75,254.27 1024. 1024
1924-25 208,655.92 26,196.(5 12,414.89 54,761.94 48.,25.06 350.274.56 .0789 .0117 .0856
1925-26 191,084.27 41,059,28 6,775.04 23,728.47 41,551.70 304,198.76 .0632 .0100 .0782

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48 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

CUSTOMS RECEIPTS

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


TABLE No. 34

REVENUES OF HAITI, BY SouwcEs, FISCAL YEARS 1889-90 TO 1925-26


Customs receipts
__________________________________ Internal iMiscella- Total

Imports Exports Xtscella- Total revenues receipt


Gourdes Gourdes Gourde8 Gourdes Gourdes Gourdes Gourdes
1889-90 . .1,53,254.85 1890-91 . 40,868,026.80
1891-92 34,7.016.95
1892-93 . . 84,880, 1.45 1893-9 .3,8153.640.75 1895-96 .28,047,666.65 189-9 .8. .80,665202.15 1897-98 . . 23.753,709.25
1898-99 .19,467,977.35 1899-00 .24,416,719.00 1900-01 .21,986,480.60 1901-02 .18,834,716.35
1902-08 .17,517,062.85
1903-04. .20,087,28.90
1904-05.18,71,88 5.95 1905-w6.16,095,879.00 1906-07. .11,977,500.00 1907-08.10,524,189.40 19080.15,014,893.45 1909-10. .23,014,580.50
1910-11 . .0. 0,520,195.90
1911-12. 18,652,834.70 19,814,908.75 .883.465.248.45 912,014.55 .834,877,258.00
1912-13. 15,176.848.80 10,280,211.40 .25,456.5w0.20 670,122.20 .26,127,082.40
1913-14. 10,637,856.40 13,413.711.10 .24,051,567 50 7K6709.70 .24.758.27M.20
1914-15. 8,668.408 45 6,441,818.45 262,588.80 15.872.260.70 853 533.40 .15,725.799.10
1915-16. 12,970,092.55 9.201.87.6.80 .22,171,468.85 543.610.05 .22,715,07.90
1916-17. 9,78605728 8:478.752.85 5,89.52 18,215,707.15 717.005.00 1.971.95 18,934 684.70
1917-18. 7.784,258.80 7,8831.166.55 18,665.10 15.129,2S5.45 911 203.40 7,901.9 16,048,890.75
1918-19. 12.264,105.80 165,8970.9 861.0 .1070 1199400 1, 871.5 29,955,983.45
1919-0. 18.898.018.74 18,148,187.45 81.877.91 82,078,029.10 1888,174.99 8.246.70 83,997.450.79
1920-21. 9,816,687 88 8,184,194.70 29,982.42 18,030.865.00 1,8t97,'171,70 18.059.00 19,946,005.70
1921-22. 18,247,028.18 10,077,988.15 41,543.87 23,866.569.70 1,.80.'24 17,979.25 24.964,795.72
1922-23. 16,815.500.17 12,812,916.60 84.169258 29,192,586.85 2,699,443.24 b58,071.65 81.950,101.24
1923-24. 19,415.707.84 9,984,701.92 550.497.88 29.950,907.14 2,795,870.53 155.548.66 82,102.821.83
1924-215. 28,452,828.71 10.617,525.63 1,680.164.00 85,750,018.84 4,089.92.19 617,722.47 40,487,867.00
1925-26 26,169,088 58 112,660,447.87 1,705,295.29 140,594,831.74 4,155,17,0.28 614,646.08 45,864,648.10

JF~uctuations In the gold value of the gourde prior to its stabilization May 2, 1919, have been calculated and are reflected In statistics of revenue before 1919-20.

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

..


HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 49

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

..


50 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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

Imports Exports
Year
Value Duty Value Duty
Gourdes Gourdes Per cent Gourdes Gourdes Per cent
1916-17 43.030,428 9,741,954.80 22.64 44,664,428 8,473,752.35 18.97 1917-18 50,903,468 7.797,918.90 15.32 88.717.650 7,331,366.55 18.98 1918-19 .85.588.041 12,277,717.70 14.35 123,811,098 16.503,370.20 13.3 919-201.136,992,055 18.929,891.65 13.82 108,104,689 13.143,187.45 12.16 1920-21 59,786.029 9,846,670.30 16.47 32,952,045 8,184,194.70 24.84 1921-22 61,751,355 13,288 581.55 21.52 53,561,050 10,077.988.15 18.82 1922-23 .70.789,815 16.879,669.75 23.84 72.955,060 12.312,916.60 16.88 l923-24. 73.480.640 19,966,205.22 27.17 70.881,610 9,984 701.92 14.09 1924-25 .101,187,825 25,132.492.71 24.84 97,018,810 10.617.525.63 10.95 1925-26.94,257,080 26,169,088.58 27.76 101,187,825 12,660,447.87 12.51
Average .77,776,669 16,003,019.11 20.57 74,885,421 10,928,940.14 14.69


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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 51

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

..



52 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER
TABLE No. 36
CUSTOMS RECEIPTS, BY MONTHS, FISCAL YEARS 1916-17 To 1925-26

Average Average
Month 1916-17 to 1921-22 1922-23 192324 1924-25 1925-26 1916-17 to
1920-21 1925-26

Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourd~e
October. 1.518,926.08 2,266,419.11 2.334,333.47 2,767.890.81 3,402,041.96 4,416,779.02 2278,209.48
November. 1,813,232.97 2,746,774.92 3,046,438.97 8,674.196.52 3532.376.74 4.693,002.47 2.675,895.45
December. 2,195,593.43 2,614.327.78 8,46.350.92 3,793,955 15 4,377,676.90 5,012.369.53 3,025,264.75 January. 2,308.150.90 2,221.222.54 2.708,034.39 3,317,806.82 4.158,786.58 3,667,244 92 2,761,384.98
February. 2,078,966.06 1,727.043.30 3,069,606.76 2,476,503.60 3,445.665.41 3.633,241.41 2,474,689.08
March 2,077.327.60 2,474.134.54 2,840,105.23 2.699.204.86 3.262,219.08 3,565,430.99 2.522 773.27
April 2,109,606.72 1,952.743.17 2,696,799.51 2.201.294.48 2,632.532.07 2,664,665.97 2,269 606.88
May. 763,034.48 1.734,81582 2.057,07G.13 2,065.892.60 2,149,4A9.63 2.695.871.80 1.951.181.24
June 1,942,219.96 1,508,166 49 1,812,552.83 1 813,558.87 1,891.335.90 2,330,906.59 1,906,764.05
July. 1,444,162.30 1.106,108 32 1,437.358.58 1.520.628.69 1,993,652.76 2,657,772.01 1,593.633.19
Auguat. 1,610.259.38 1,404.575.36 1,661,708.87 1.599.089.95 2,079,270.83 2,286.530.28 1,708.247.22
September 1,569,050.83 1,610,238.35 2,052,226.59 2,020,884.79 2.824,950.48 2,971,016.70 1.932.457.11
Total. 22,430,530.71 23,866,569.70 29,192,588.25 29,950,907.14 35,750,018.34 40,594,831.74 27,100.756.70

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 53

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

..


















TABLE No. 37

CUSTms RmCIPS, By PouTs, FxIscA Yursus 1916-17 To 1925-26


Ar. . .
Cap-Haitien Cayes .
Fort Lbert. Glore. .
Gornilves. ,. Jacm el. ,. J6r~mie MIragoAne Ouanaminthe .
Petlt-Ooave. .
Port au-Prlnce. Portde.Pax Saint-Marc .
Total .


Average 1921-22
1918-17 to 1920-21 1


Gourdes
124,805.62
3,280.13
8,179095.89
1,910,474.91
62,108.75
501.73
1,372,395.15
2,076,404.15
925,743.72
275,744.34 10,260 12
1,221,660.24 9.540,425.27
9W5.723.20 799,5206,5


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 5 3,893.16 581,735.59
3,425.04 1,274.305 87 10,759,378.67
874,426.15 951,791.84


1922-23 1 1923-24


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
761.458.75 678,225.83
4,474 59 2,300,136.29
12,150,442.85 1,127,215.90 966,969.49


Gourdes
811,694.14
711.89 2,879,275,29 3,870,369.87 20.85 899.12 1,758.531.05 2,668,272.62 1,010,686.47 576,871.77
6,005.98 1,978,187.51 12,477,230.83
1,238,443.17 1,174,021.58


1924-25


Gourdes
271,407.86
692.84 3.982,286.77 3,687,849.55
665.73 1.915,949.58 3,064,238.65 1,220,315.09
599,504.85
8,546 24 2,532,358.86 15,986,578.64
1,223.773.34 1,255,850.84


1925-26


Gourdej
180.928.53
1,485.86 5.098,458.19 3,603,179.70
1,553.49 1.913,612.80
3,562,383.43 2,043,194.41 584,182.72 14,229.77 2.718258.98 17.746,065.95 1,797,638.15 1,829,706.76


22,428,148.78 23,866,569.70 1 29,192,58.35 29,950,907.14 85,750,018.84 40,594,831.74


0
Average
_9617 to 19'25-26

z
Gourdes
173,599.23 Z
1,966.97
3,412,661.66 02,557,840.55 t
47,900.62
708.47
1,567,677.56
2.467.851.67 1,022 826.15
417,869.19 8
8,798.22
1,691,155.57
11,682,182.28 8
1,089,011.07
967,594:.3

27,109,143. w

88


.-I

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 55

Customs receipts at Gonalves and St. Marc were affected by less satisfactory prices for cotton, one of the chief exports from those ports. Miragoane also failed to record increasing commercial activity, as reflected by customs receipts, but adequate reasons for this situation cannot be suggested.
As to Cap-Haitien, Jacmel, Jr6mie, Port-au-Prince and Port-de-Paix gratifying increases in customs revenues occurred. At all of the ports mentioned the outturn of coffee was particularly satisfactory, and at J6r~mie cacao was also considerably in excess of normal. In addition, the general effects of sustained law and order and productive public improvements are being felt to a continually greater extent. Little argument is required to
demonstrate that as the standard of living advances above the minimum of subsistence and as economic reserves are created both for individuals and the state, a more uniform flow of business may be expected.
Customs receipts are classified according to sources in Table No. 38.
This presentation of financial data is interesting because it shows the relative importance of the import and export trade and because from study

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

Port Imports Exports Miscellaneous Total

Gourdes Gourdes Gourdes Gourdes
Aquin 1,785.11 175.814.30 8,829.12 180,928.5
Bellad re. 1,485.86 1,485.86 Cap-Haitien. 2,839.254.04 2,050.679.30 208,524.85 5,098,458.19
Cayes 2,430.324.62 982,891.95 189,963.13 3,603,179.70
lore. 1.468.49 85.00 1,553.49
Gonalves 950.576.60 877,210.30 85,825. 0 1,913,612.80
Jacmel 1,6S5,972.07 1,747,951.40 128.459.96 3562,383.43 J6r6mie 837,728.29 1,146,072.40 59,198.72 2,043,194.41
MiragoAne 254,522.23 800 845.05 28,765.44 584,182.72
Ouanaminthe 13,139.50 569.77 520.50 14,229.77
Petit-Gof.ve 768856 69 1,882,092.50 67,314.79 2,718,263.98
Port-au-Prince 14,782 439.36 2,122.002.60 841,623 99 17,746,065.95 Port-de-Paix 774,960.79 951,268.70 71,406.66 1,797,636.15
Saint Marc 826,574.93 422,964.60 80,167.23 1,329,706.76
Total 26,169,088.58 12,660,447.87 1,765,295.29 40,594,831.74

of such statistics certain conclusions as to the type of commerce in the several districts of the republic may be derived. From the point of view of fiscal significance Port-au-Prince far outranked other ports, contributing 43.71 per cent of total customs receipts in 1925-26. Some five-sixths of such receipts were obtained from imports. Exjort duties received through the custom-house at Port-au-Prince, though the largest in the republic, exceeded those obtained from Cap-Haitien, from Petit-Goave and from Jacmel by only relatively small sums.
On the whole it may be stated that Port-au-Prince, Cayes and St. Marc tend to be ports of import and Cap-Haitien, Jacmel, JRr6mie, Petit-GoAve

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56 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

and Port-de-Paix ports of export. However, the foregoing statements must be modified by the fact that such ports as Petit-Goave, Jacmel and J6r6mie ship large quantities of coffee and cacao on which substantial export duties are paid, whereas at Gonaives, Port-au-Prince and St. Marc an appreciable portion of exports is composed of cotton and sugar, on which the export duties are negligible. Thus strict comparisons are impossible.
Table No. 39 presents customs receipts by sources and also by months for the fiscal year 1925-26. The figures in the table are useful to demonstrate those periods in which imports and exports tend to be concentrated. From the point of view of revenue there is far less fluctuation in imports

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

Month Imports Exports Miscellaneous Total
Gourdes Gourdes Gourdes. Gourdes
October 2,971.983.05 1,250.630.75 191,16522 4,416,779.02
November 2.703,106.15 1,799,670.85 190,225.47 4,693.002.47 December 2.94,54920 1,863,048.30 205,772.08 5,012.369.58 January 1,899,548.16 1.635,348.15 132,348.61 3,667,244.92
February 1.892,375.85 1,596.364 55 144.501.51 3.633,241.41 March 2,131,614.46 1,208.437.24 225,379.29 3.565,430.99
April 1,647,076.69 849,602,62 167,986.66 2.664,665.97
May. 1,901,189.87 &56,155 36 138.527.07 2 695,871.80
June .1,586,952.86 603 82.85 140.124.88 2.330.906.59
July 2,171,357.41 346,018.85 140.395.75 2,657,772.01
August 1.918,533.74 293,563.85 74,429.69 2.286,530.28
September 2,401,799.14 557,778.50 11.439.06 2,971,016.70
Total 26,169,088.58 12,660,447.87 1,765,25.29 40,594,831.74


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

..


HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 57

ing that a better balance in both the types of products and in the seasonal distribution of those products will ultimately be accomplished.
On the basis of total customs revenues the distribution of receipts from imports, exports and miscellaneous sources is reduced to percentages in Table No. 40. Revenues obtained from imports during 1925-26 furnished a smaller proportion of the total, and the same was true of receipts from miscellaneous customs sources. Export taxes, on the contrary, were relaTABLE No. 40
DISTRIBUTION OF CUSTOMS RECEIPTS, FISCAL YEARS 1916-17 TO 1925-26

Receipts Receipts MiscelYear from from laneous Total
Years customs
imports exports receipts

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

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER
















TABLE No. 41

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


Ports


Customs receipts :
A uin .
Be1lad~re .
Cap-Haitien .
Cayes .
Tilore.
Gonaives .
Jacmel .
J6r6m le .
Miragoine .
Ouanamintbe .
Petit-GoAve .
Port-au-Prince .
Port-de-Paix .
Saint Marc .

Total customs receipts .
Internal revenue receipts:
Administration-Port-au-Prince.
Aquin .
Cap-Haitien .
Cayes .
Gonalves .
Jacm el .
J~r6mie .
Mlragoane .
Petit-Golve .
Port-de-Paix.
Saint Marc .
Total internal revenue receipts .
Miscellaneous receipts:
Port-au-Prince .
Total revenue receipts .


October


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


November December January February


Gourdes
36,187.49
73.00 687,066.38 518,164.46 6.00
232,188.58 519.998.78 285,399.12
70,441.85
563.40 890,030.80
1,649,453.25 211.066.16 92,363.20


Gourdes
28,551.91
49.56 619,738.57
483,295.20 8.50
246,168.64 557,492.45 257,855.41 79,782.94
319.81
311,951.47 1,971,113.72 805,881.83 150,155.57


Gourdes
21,527.97
69.72
498,194.86 369,198.32 7.00
194,742.8 375,919.79 22,508.39 59,242.77
298.36 325,397.62 1,315,324.35
158,481.49 125,331.61


Gourdes
28,664.87
25.84 463,425.39 817,108.06 218.28
195,771.59 386,261.54 188.912.43
69,089.34
347.00 316,494.66 1,410,144.77 135.685.38 121,092.26


March April May


Gourde8
15,054.70
57.17 385,779.46 339,778.41
420.50 155,419.71 322,284.03 131,148.76 89,756.84
506.30 301,828.66
1,516,449.43 192,831.42
164,116.10


Gourdes Gourdes
17,356.40 3,913.15
41.20 41.79
297,029.11 226.108.75
216,347.60 156,933.04 368.45 73.66
137,365.86 95,731.89 203,543.45 209.517.29 125,617.36 135.218.23
37,276.68 40,622.23
321.75 357.76
230,194.72 125,559.92 1,096,018,62 1,517,990.72
154,854,06 80,742.43 148,328.71 103,063.94


June July


Gourdes
1,278.30
62.50
300,574.20 173,864.10 K372
114,143.38 154,230.34 96,583.03
45,574.08 2,154.34 133,761.14
1,121,893.04
90,475 01 96,279.41


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


August September Total


Gourdes
12,288.84
307.75
244,674.37 146,304 49 148.14
75,157.75 107,946.24 101,041.92 16,248.45 4.615.70 79,920.62 1,360,517,68
69,894.86
67,463.47


Gourdes
5,707.56
542.25 388,688.73
244,760.98 223.89
162,220.25 183.280.88 142,718.63
33,082.99 3.182.75 109,973.15 1,513,233.27
106.608.15 76,793.22


Gourdes
180.928.53
1,485.86 5,098,458 19 3,603,179.70
1,553.49 1,913.612.80 3,562,383.43
2.043.194.41
584,132.72
14,229.77 2,718,263.98 17,746,065.95 1,797,636.15 1,329,706.76


4,416,779.02 4,693,002.47 5,012,369.58 3,667,244.92 3,633 241.41 3,565,430.99 2,664,655.97 2,695,871.80 2,330,906.59 2.657,772.01 2,286,530.28 2,971,016.70 40,594,831.74


380,462.08 3,227.37
49,963.44 52,494.08 26,300.60 26,713.90
24,821.39 6,121.44 26,238.62 20,536.58
22,3W6.60


503,278.60 1,665.87
25.498.05 18,870.20 9,356.84 11,884.69 9,108.60
2.394.34 7,808.70 8,051.51 6,818.71


196,921.76 1,135.66 27,695.65 21,814.83
18,239.76 11.973 86 10,783.51 3.288.74
9,241.28 11,090.65
9,284.28


249,969.39
951.67
19,182.87 13,754.86
11,110.42 13,141.66 8,728.17
2,682.40 8,730.17 5,882.74 7,706.51


197,388.36
933.20 19,309.96
14,912.33 9,828.36 11,732.70
7,773.63 2,187.39
8,462.03 7,701.02 9,733.45


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


183,337.50 2,159.27 31,670.00
31,146.36 15,831.85 20,570.63
8.539.38 3,607.62
16,237.44 9,548.84 15,256.38


124,860.77
844.61 14,829.83 25,016.36
9,147.54 9,653.99
5.054.10 2,268.62 6,030 43 6,041.25 7,919.32


154,829.22
844.29 15,094 36 26,703 40 9,062.53 16.908 55 5,065.10
2,712.48 4,788.46 8,259.92 8,082.55


247,810.64 1,031.64 16.43387 30,617.33
8,416.99 8,400.53 6,863.54
2.086.04 15,123.68
6,447.92 7,143.95


179,430.42 2,161.16 15.167 21 19,393 33 8.025.83 8,001.97
6,384.21 2,233.44
5,378.37 6,035.33 5.834.77


220,708.00
1,705.79 13,633.21
15,004.44 8.446.43 9,394.26 5.759.82
1,630.34 5,692.30 5,062.29 5,218.75


2,803,002.99
17,617.48 267,824.56 286,188.27
141,358.82 161,067.73 104.86613 33.846.12
120,901.12 101,30885 117,188.21


639,276.10 604,735.11 316,469.98 541,840.86 289,962.43 260,780.05 337,905.27 211,666.82 252,355.86 349,876.13 258,046.04 292.255.63 4,155.170.28

20,734.54 61,902.00 42,737.90 58,605.10 47,623.80 63,767.70 19,051.68 27,571.&5 32,855.40 93,975.25 64,387.85 61,433.31 614 646.08
5.076,789.66 5,359,639.58 5,371,57746 4,067,690.88 3,970,827.64 3,889.978.74 3,041,622.92 2,95,110.17 2,616,117.85 3,101,62339 2,603,964.17 3,324,705.64 45,364,648.10


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


1,000.00 4,068,690.88


200.00
8,890,178.74


200.00 2,935,310.17


800.00 3,325,505.64


2,600.00
45,367,248.10


8,101,623.39


. .
2-,608,064.17


..
8,970,827.64


3,041,622.92


2,616,117.85

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IHAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 59


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


INTERNAL REVENUE RECEIPTS

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


TABLE No. 42

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


Average Average
Sources 1919-20 to 1921-25 1925-26 1919-20 to
1923-24 1925-26


Gourdes Gourdes Gourdes Gourdes
Circulation tax on bank notes 84,615.93 5.3.827.22 44,221.75
Consular fees 81,728.11 152,914.40 157,080.30 102,662.18
Court fees 7,147.06 "7,919.87 8.293.50 7,421.26
Diploma fees . 574.75 2,650.00 1,612.87
Documentary recording fees 252,579.03 288 784.19 04.868.31 265,149.66
Emigration taxes 599,710.50 945.022.90 1,09.867.50 707.666.12
Fines and penalties 1.886.00 24,77082 4,222.25 5,489.01
Income tax 352.263.18 625,066.64 503,20-.81 412.800.76
Irrigation tax 6.995.20 8,543,14 11,027.95 7,792.44
Occupational tax on foreigners 175,397.55 208.445.27 243,207.51 189.805.79
Official gazette 1,071.89 1,220.20 1,02500 1,086.97
Sale of official publications . 344:15 355.25 349.80
Patent and trade mark fees 6,884.50 5,700.00 15,982.50 8,015.00
Post office box rentals 7521.61 11,48 90 12,12925 8,726.60
Public auction fees 5.095 12 1.463.34 2,612.06 422.14
Public land rentals 74,668.87 177,919.02 191,390.71 106,093.08
Exchanges of land . 825.00 325.00
Stamp receipts:
Bank checks 7,987.74 15,91540 18,280.80 10,590.62
Commercial account books 2,908 72 4,643.20 6,043.89 8604.38
Documentary stamps. 185.179.25 871.795,54 403.171 62 242,980.48
Postage stamps 128,547.81 195.755.00 197,485.43 147,997.06
Stamped paper 107,518.78 55.620.51 52,565.15 92.254.22
Stock and bond taxes 82.956 23 55,090.40 63,089.91 40,424.35
telegraph and telephone service 176,774.07 541,103 31 580,979.77 286,564.77
Visas of manifests 5.93295 5.237.50 3.680.00 5.511.75
Vital statistics fees 55,347.h2 04,034.03 90.531.14 65.900.61
Water service 179,807.97 240,558.54 216,222.78 193.330.88
Miscellaneous 175,381.22* 15495.04* 1,5%3 17 127,707.75
Total 2,6530,790.68 4,089,926.19 4,155,170.28 8,086,506.20

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

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

See post, pages 161-164.

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60 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 61

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

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

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

Interest on Cnes
ment alo Conversion miscellaneous Total Month governmental of Fraecs
deposits Frabcs

Gourdes Gourdes Gourdes Gourdes
October 20,652.85 81.9 20.734.54 November 22,549.50 39,841.25 11.25 61.902'00
December 25,681.65 17,005.00 51.25 42.737.90
January 28,794.15 17.741.25 12,069.70 58,605.10
February 29,868.80 17.693 75 61.25 47,62.80
March 23,713.10 39,992.40 62.20 63,767.70
April 28,798.60 5,041.25 5,211.83 39,051.68
May. 27,540.5 80.90 27.571.55
June 82,121.35 734.05 32.855.40
July 43.221.40 50,71785 86.00 93.975.25
August 50,332.90 13,990.80 64.65 64,387.85
September 45,156.05 18,281.45 2,995.81 61,433.31
Total 378,431.00 214,804.50 21,410.58 614,646.08

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

..



62 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

Gourdes Gourdes Gourdes Gourdes
Aquin 180,928.58 17,617.48 . 1"8"46.01
Bellad~re .1,485.86. 1,485.86
Cap-Haitien .5,098,458.19 267,824.56 .5.366,282.75
Cayes i,03,17.70 286,18S.27 3,889,367.97 (iore. 1,558.49 1,553.49 Gonalves 1,913.612.80 141,858.82 2,054,971.62
Jaecmel .8,562,383.43 161.067.73 3,72,451.16 J rmie .2,043,194.41 104.866-13 2,148,060.54 Miragoane . 584,132.72 33,846.12 617,978 84
Ouanaminthe 14,229.W 7 . 14 229.77
Petit-GoAve 2,718.263.98 120,901.12 2.839,165.10 Port-au-Prince 17,746,065.95 2,806,002.99 614,646.08 21,163.715.02
Port-de-Paix. 1,797,636.15 101,306.85 1,898,945.00
Saint-Marc. 1,329,706.76 117,188.21 1,446,894.97
Total revenue receipts. 40.594,831.74 4,155,170.28 614,646.08 45,864,648,10
Total non-revenue receipts I . 2,600.00 Total receipts I 45,367,248.10

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

..



HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


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

..
















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


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


Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
September, 1916 711,809.91 690,284.08 .1,905,047.50.89,850.15 355,083 48 8,751,525.12
1916-17 4,7,156.10 8,28,031.60 . 9i,44.55 5,181.819.0 796,625.70 1,788,19.95 15,884,177.80
-18 4,565,28.75 2,700,858.70 889,870.75 .5.547,888.85 741.055.80 170,089.60 14,614.997.45
918-19 .4.594,9 8.80 2,721.841.50 958,756.70 497,140.00 175,099.15 5,806,871.30 .700,03560 45,297.90 15,499,480.45
1919-0 5,415,377.45 3,199,680.25 1,338,591.80 245,000.00 461,241 15 8,490,246.70 .1,380,460.60 116,268.80 20.646.866.25
1920-21 5,114,593.80 2,634,628.15 1,541,482 30 18.170.880.95 406,771.30 7,005,503.45 .1,452,073.10 1,463,022.85 32,788,455.90
1921-22 5,104056.45 2.451.720.30 1,244.506.25 21,663,345.05 293.995.55 7,483,538.25 188,422.70 1,279,142.25 67,181.60 39,775,908.40
1922-3 5,226,550.60 5,019,229.60 1,485,106.25 9,057,374.50 206,40000 7,811,914.75 282,709.00 1,438,506.15 82,822.30 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 49,182,830.70 421,181.70 7,877,749.85 4,082,826.48 178,521,524.52

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 65


TABLE No. 46

REVENUES AND EXPENDITURES, FISCAL YEARS 1923-24, 1924-25 AND 1925-26 192-24 1924-25 1925-26


REVENUES
Customs .
Internal revenue .
Miscellaneous .
Total revenue .
EXPENDITURES
Public debt:
Financial Adviser-General Receiver .
Internal Revenue Service .
Series A loan .
Series B loan .
Series C loan .
Interior consolidated debt .
Fiduciary currency. .
Commissions paid to Banque Nationale.
Haitian Construction Co., notes .
Roberts, Dutton & Co. claim. .
Stamp sales, discounts and expense .
P. C. S. Railroad subvention .
Wharf Company subvention .
Cable Company subvention .

Total Gendarm erie I.
Foreign Relations Finance Comm erce Interior Public Health Service Public W orks Public Works Service Justice Agriculture Agricultural Service Labor Public Instruction Religion .
Total expenditures from revenue Revenues over expenditures Expenditures over revenues .


Gourdes
29,950,907.14 2,795,870.53 155,643.66

32,902,321.3


1,118,917.23
73,478.s8 5,589,861.50 1,695,97086
928,174.00

828,227.51
433,915.00 277,872.35 13.285.42
206.400.00 524,564.28 480,000.00

12,170,669 53
5,322,449.22 734,199.47 1,620,366.84

1,363,403.06 1,529,057.91 961,336.20 5,895.159 05 1,373.533.28
148.288.24 434,445.89 . .
2,806.194.25 457,893.00
34,215,495.94


Gourdes
35,750,018.34 4,089,926.19
647,722.47
40,487,667.00


1,849,537.49
342,928.16
7,336.491.75
2,453,151.14 1,209,067.55
195,839.01
42o,0O0.00 27,958.63
..
3,191.31
206,400.00 268,838.26
120,000.00
14,438,403.80 5,579,242.54
619,95331
1,197,945.96
230,051.46
1,208,067.76
2.223,059.14
703,416.57
7,533,943.51 1,333,838 31
44,258.88
1,526.891.70
274 393.63
1,942,599.20
367,136.75
39,218,202.02
1,26,464.98


1,813,174.61 .


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


1,698,879.86
304,198.76
6,906,047.60 2,148,625.00
1,141,421.00
420, 000. 00

. .

206 400.00 247,706.25
90,000.04
13,168,778.51
6,062,415.84
635 084.64
1,062,756.19
247,985.91
1,224.369.56 2,852,485.58
92,287.98
9.082.496.06 1,395,153.62
41,426.15
2,185,104.58
530,646.65
1,965,167.09
388,617.22
40,930,725.08
4,433,92.02


expenditures of the Internal Revenue Service are authorized by law rather than by treaty and do not constitute a pledge of revenue, nevertheless the fact that the Internal Revenue Service is under the supervision of the General Receiver makes it convenient to classify the costs of the Internal Revenue Service as also included in the public debt. As expenditures of the Financial Adviser-General Receiver and of the Internal Revenue Service together declined during 1925-26 by Gdes. 189,986.03, as compared with the previous year, it follows that an excellent start was made toward diminished disbursements on account of the public debt.

Turning to the service of the loans of Haiti the record shows that expenditures for interest and amortization declined for each item of the funded public debt. This occurred in spite of the fact that the fiscal agency agreements call for slightly increasing payments by the state on Series A, B and C loans during each successive fiscal year. The apparent contradiction afforded by the contraction during 1925-26 was due to the fact that in the previous year supplementary amortization of the debt was provided out of revenue, in the amount of some Gdes. 650,000 in excess of the sums stipu-

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66 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

lasted in the several fiscal agency agreements. During 1925-26 supplementary amortization of the debts, which is obligatory when revenues of the Haitian government are more than Gdes. 35,000,000, was given full effect, but additional budgetary funds were not devoted to amortization as in the previous year. In this connection it should be recalled that considerable sums, proceeding from interest on funds in the possession of fiscal agents, were devoted to debt retirement. But those interest credits were not taken up as revenue and therefore do not appear as expenditures.
During 1924-25 interest and amortization for the Series A, B and C loans, costs of remitting funds to New York for the A and C loans and service charges of the fiscal agents absorbed Gdes. 10,998,710.44 while during the following year but Gdes. 10,198,093.60 were devoted to similar purposes. The reduction amounted to Gdes. 800,616.84, or 7.28 per cent.
Part of the program for consolidating the public debt of Haiti was refunding of the former interior debt. Payments under this category amounted to Gdes. 195,839.01 during 1924-25, whereas nothing was spent for the same purpose during the subsequent year, and expenditures for that purpose will not be necessary in the future.
Reduction of unsecured nickel currency proceeded during 1925-26 at the same rate as in the previous year, Gdes. 420,000 being devoted to that purpose. Payments made to the Compagnie des Chemins de Fer de la Plaine du Cul-de-Sac were identical with those of previous years. So many perplexing problems surround the relations between the government and this railroad, that in the opinion of this office there is no assurance that the conditional subsidy accorded to the railroad was properly payable. Accordingly, the payment for the fiscal year 1924-25, liquidated during the fiscal year 1925-26, was made under reservation.
During 1925-26 payment of the final annual subvention by the government to the French Cable Company was effected, thus terminating annual charges which have continued for thirty years. Moreover, a contract between the government and the company was negotiated, by which the company will continue to carry on its operations in Haiti, and to that end will utilize facilities which it has developed in the republic. As the original contract will expire on May 14, 1927, and as under the terms of the original contract all properties of the company in Haiti reverted to the state, it became desirable for both ,parties to permit the Compagnie Frangaise des Cables T616graphiques, to retain possession of its existing lines. This will be accomplished by means of payment by the company to the public treasury of Gdes. 175,000. Furthermore, after the expiration of the old contract, the Compagnie Frangaise des Cables T6l6graphiques will no longer enjoy monopolistic privileges in respect to telegraphic communications between Haiti and other countries.
In view of the imminent termination of the concession of the Compagnie Frangaise des Cables T6lgraphiques, All America Cables, Inc., negotiated

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 67

a contract with the Haitian government, which was signed on March 16, 1926, and approved'by the law of May 7, 1926. Under the terms of this contract All America Cables, Inc. agreed to install certain facilities for international communication which should considerably improve the telegraphic service with Haiti. Furthermore, competition is expected to reduce the excessive cable rates between Haiti and foreign countries. Thus, from every point of view, the facilities of communication with Haiti have enjoyed marked improvement during 1925-26.
Total disbursements classified as public debt declined from Gdes. 14,433,403.30 in 1924-25 to Gdes. 13,164,778.51 in the subsequent year. This was a decline of Gdes. 1,268,624.79, or 8.79 per cent. Thus expenditures on the public debt were about midway between those of 1923-24 and those of 1924-25. During subsequent years the service of the public debt should somewhat decline, as payments into the fiduciary currency reserve become unnecessary, as further disbursements to the Compagnie Frangaise des Cables T616graphiques are no longer due, and provided that payment of wharfage dues pledged to the Compagnie Haitienne du Wharf is effected without appearing as a public debt operation.
Costs of operating the Gendarmerie d'Haiti in 1925-26 amounted to Gdes. 6,062,415.34, an increase of 8.66 per cent over the previous year. Undoubtedly the Gendarmerie is the most adequately staffed branch of the public service and is now possessed of reasonably adequate personnel and facilities. Haiti is not faced with the problem of protection from foreign aggression and therefore must make arrangements only sufficient to assure internal peace. Formerly this was menaced by recurrent revolutionary activities. For several years not only have there been no outbreaks, but revolutionary tendencies on the part of the population have sharply diminished.
That the present Gendarmerie organization is well adapted to conditions in Haiti is demonstrated by the unanimous esteem in which the organization is held by both Haitian and foreign observers. Police supervision, while not restrictive of personal liberty, is adequate to prevent disorder and to minimize crime. As the Haitian people are not given to acts of violence most police operations are concerned with petty'misdemeanors. Furthermore, the organization of the Gendarmerie along military lines decidedly increases its effectiveness as a police force and is the best guarantee against organized trouble making. Since the Gendarmerie constitutes the only armed force in the republic and as its efficiency is generally recognized, potential disturbers of the peace know that opposition is useless.
Three lessons of importance may be derived from the organization and operation of the Haitian constabulary. First is the great advantage of having a unified police force throughout the republic, which comprises all police activities, both urban and rural. The second is the advantage of having the police force organized and trained along military lines. The

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68 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 69

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

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70 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 71


primarily educational in purpose and scope, and the larger part of disbursements of those organizations should be classified as for public instruction. Furthermore, expenditures for the law school now appear in the Department of Justice, those for the medical school in the Department of the Interior, and the Gendarmerie d'Haiti also finances certain educational work in connection with its members.

Thus it is fair to state that expenditures for public instruction are probably more than twice as great as those prior to American intervention, and, in addition, the present type of agricultural and vocational education is believed to be far more constructive than was formerly the case.
Total expenditures out of revenue for all purposes were Gdes. 40,930,725.08, an increase of Gdes. 1,712,523.06, or 4.37 per cent from the previous year. Although such expenditures were considerably larger than those of any previous year for which records are available, they were not at the expense of sound finance. On the contrary, the surplus of Gdes. 4,433,923.02, constituting 10.83 per cent of total expenditures, speaks for itself. Even this satisfactory surplus could have been increased by considering as revenue accruals of interest on funds for debt service deposited with the fiscal agents, rather than permitting such receipts to be utilized in supplementary debt retirement.

Receipts and expenditures of the Haitian government during 1925-26 are arranged in relative importance in Table No. 47. Outstanding features TABLE No. 47

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


REVENUES
Customs .
Internal revenue Miscellaneous .

Total .

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


Gourdes
40,594,881.74 4,155.170.28
614,646.08
45,364,648.10

10,618,093 60 9 082,496.06
6,062.415.34 2,852,485.58 2,185,104.58 1.965,167.09 1.698,379.86 1,895,153.62 1.224,369.56 1,062,756.19
635.084.64 544.106.29 530.646.65 388,617.22
304.198.76 247,925.91 92,287.98
41,426.15
40,930,725.08 4.433,923.02
45,364,648.10


Percentage of
total expenditures
from revenue


Gourdes






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


Percentage of total revenues


Gourdes
89.49 9.16 1.35
100.00

23.41
20.02 18.36 6.29
4.82 4.33 3.74 3.08 2.70
2.34 1.40 1.20 1.17 .86 .67 .55 .20 .09

9.77
100.00

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72 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

TABLE No. 48

REIMBURSEMENTS TO APPROPRIATIONS, FISCAL YEAR 1925-26

Gourdes
General Receiver 1,102.15 Public Health Service
Administration 27,069.54 Sanitation and quarantine 135,139.06 H hospitals 126,590.67 Gendarmerie
Rations 63,711.37 Operation and maintenance 624,851 89
Medical supplies 19,740.97
Prisons 53.45
Light houses 9,093.20 Public Works Service
Streets and parks 106,390.39 W ater service 37,742,57 Agricultural Service
Adm inistration 121.00 Breeding station 493.50 Central experimental farm 14,078.90 Sisal plantations 5,726.84 Rural farm schools 2,271.09 Agricultural college 13,243.67 Labor
Reform school. 9,299.80
Elie Dubois school 2,018.85
J. B. Damier school 9,279.00
Total 1,2W8547.91


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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 73
"maintenance and operation" consisted of transfers of funds from other departments. To the extent that income received under the several reimbursable credits represented payments from other branches of the government, these credits did not represent an actual increase of governmental activities.
It is interesting to follow the course of Haitian finances from the beginning of American participation in Haitian affairs. This appears in Table No. 49. On the whole, the record is satisfactory, as a surplus for the entire period of Gdes. 10,417,666.34 is shown. This amount corresponds closely to the present unobligated cash balance of the treasury, indicating clearly

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

Year Revenues Expenditures Surplus Deficit

Gourdes Gourdes Gourdes Gourdes
1916-17 18,9.44,684.70 15 884,177.80 8.050,506 90 1917-18 16,048 390.75 14 614,997.45 1,433,393.80. 1918-19 29.955,933 45 15.499.480.45 14,456,453.00 1919-20 83,997.450.79 20,646.866.25 13,850,584.54 1920-21 19,946,095.70 82,788.455.90 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 82,902,821.33 34.215,495.94 1,818.174.61 1924-25 . 40,487,667.00 39,218.202.02 1,269,464.98 1925-26 45,364.648.10 40,930,725.08 4.433,9M2.02 .
Total 294,552,088 78 284,134,422.44 39,384,313 83 28,966,647.49 Surplus for period 10,417,666.34 .

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

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74 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 75








TABLE No. 50

RECEIPTS AND EXPE1.vDITURES, FISCAL YEAR 1925-26

Receipts


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


Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes Gourdes
Customs 4,416,779.02 4.693,002.47 5,012,369.58 3,667,224.92 3,633,241.41 3,565,430.99 2,664,665.97 2,695,871.80 2,330,906.59 2,657,772.01 2.286,530,28 2,971,916.70 40,594,831.74
Internal revenue .639,276.10 604,735.11 316.469.98 341,840.86 289,962.43 260,780.05 337,905.27 211.666.82 252,355.86 349,876.13 258,046.04 292,255.63 4,155,170.28
Miscellaneous 20,734.54 61,902.00 42,737.90 58,605.10 47,623.80 63,767.70 39,051.68 27,571.55 82,855,40 93,975.25 64,387.85 61,433.81 614,646.08
Total revenue 5,076,789.66 5,359,639.58 5,371,577.46 4,067,690.88 3,970,827.64 3 889,978.74 3,041,622.92 2,935,110.17 2,616,117.85 -73,101,623.39 2,608,964.17 3,324,705.64 45,364,648.10
Non revenue 400.00 1,000.00 200.00 200.00 800.00 2,600.00
Total receipts 5,076,789.66 5,359,639.58 5,371,977.46 4,068,690.88 3,970,827.64 3,890,178.74 3,041,622.92 2,935,310.17 2,616,117.85 3,101,623.89 2,608,964.17 3,325,505.64 45,367,24.10


Expenditures


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


Public debt:
Financial Adviser-General Receiver.
Internal revenue service .
Series A loan .
Series B loan .
Series C loan .
Fiduciary currency. .
P. C. S. Railroad subvention.
Wharf company subvention .
Cable company subvention .

Total ?ublic debt Gendarmerie .
Foreign relations Finance Commerce Interior Public health service Public works Public works service Justice Agriculture Agricultural service Public instruction Labor Religion .
Total revenue payments Awards of the claims commission National railroad construction Miscellaneous .

Total payments Pension deductions .

Net payments . Cumulative revenue Cumulative payments from revenue .
Difference .


Gourdes
106.720.66
18,919.60
5,625,00.00
631,509.15
930,999.60

. .


7,213,149.01
564,871.75 36,419.79
91,731.26 20,026.87 97,381.29 180,165.86
57,242.45 751.76854
119,653.82
3,459.73
101,386.23 161,829.80 26,667.13
29,921.19,


9,455,674.72
137,675.0
80,810.40 S.

9,674,161.02
7,673.96
9,666,487.06 5,076,789.66 9,455,674.72
-4,378,885.0(6


Gourdes
105,058.49 36.92439 5,625.00
295,544.90
.

26,446.01 18,525.49
469,598.79 450,265.24 40,479.09 73,357.09
15,375.00 92,547.02 169,807.r8
3,341.87
532,530.63
113,441.56
3,163.55
133,093.41 161,720.13
25,867.23 26,736.35


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

2,509,643 64
6,324.20
2,503,319.44 10,436,429.24 11,766,999.26
-1,330,570.02


Gourdes
115,798.43 22,780.19 3,750.00 .
.
20,000.00
.
21,308.32 .. .

202,162.43 458,054.90 40,002.99 87,291.34 23.378.17 109,395.07 186,408.23
3,454.78
689,993.58
118,134.63
3,438.55
152,947.18 161.140,25 29,922.75 37,854.23


2,303.579.08
105,726.25
54,000.00 S.

2,463,305.33
6,882.03
2,456.423.30 15,808,006.70
14,070,578.34

+1,737,428.36


Gourdes
103,712.50
20,634.51 10.837.90
145,000.00
1,250.00
120,000.00 ..,.
30,433.90

431,898.81
494,24698 39,817.45 100, 188 8 20,092.72 93,036.68
354,406,26
3.277.80
659,040.09 113,444.17
3,519.39
133,811.41 160,160.71 27,995.92
29,340.85


2,664,277.02
24,231.60 90,165.15

2,778,673.77 7,104.93
2,771,568.84 19,875,697.58 16,734,855.36

4.3,140,842 22


Gourdes
110,249.41 19,264.12 ."
490,566.10
75,833.75 35,000.00
17,466.30

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


2,907,013.76 183,550.45 19,000.00

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

+4,204,656.10


Gourdes
128,949.53 19,713.85
1,246,933.05
175,000.00 131,546.90 35,000.00
23,305.71 S.
1,760,449.04
463,397.25 67,257.10 129,057.38 24,708.28 94,560.06
316,445.07
8,632.49
1,194,235.41
124,956.09
3,526.05
183,016.14
174,032.09 32,546.80
41,860.96


4,613,686.21
100,154.20 90,000.00

4,803,840.41 6,142.82
4,797,697.59 27,736,503.96 24,255,555.33

+3,480,W.63


Gourdes
* 118,097.87 25,596.75 6,191.95 75,000.00
431.85
35,000.00
29,730.68

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


2,446,041.77 213,294.00 30,000.00

2.689,335.77 7,722.85
2.681,612.92 30,778,126.88 26,701,597.10
+4,076,529.78


Gourdes
103,607.71
14 091.54 9,037.20
200,000.00
1,358.90 85,000.00
206,400.00 20,794.03 S.

590,289.38 550,519.25 80,280.08 106,724.17 20,288.04 118,262.50 195,152.13
3,071.97
982,838.07
114,080.49
3,263.55
161:226.90
162,242.32 40,116.24 33,610.63


Gourdes
105,286.66 15,010.34
47.50
.
.
35,000.00
20,593.82

175,9S8.32
541,754.53 69,610.05 95,488.36 29,293.83 162,273.66
217,752.94
2,966.25
710,614.17 113,342.59
3,438.55
198,956.94
187,231.65 60,967.55 28,511.69


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


3,620,722.77 7,947.22
3,612,775.55 33,713.237.05 29,863,562.82
+3,849,674.23


4,640,683.43 9,932.11
4,630,751.32 36,329,354.90
32,541,743.90

+3,787,611.00


Gourdes
101,179.57 28,399.46
625.00
100,239.63
35,000.00
20,461.0


285,904.67
494,414.96 58,685.39
71,104.43 17,801.57 99,269.98 272,371.81
3.275,02
851 529.98 117,976.70
3,536.30
218,058.62 161,374.17 98,955.09
30,241.89

2,784,500.58 3,805.00


2,788,305 58 7,955.87
2.780,349.71 39,430.978.29
35,326,244.48

+4,104,733.81


Gourdes
93.966.10
20,378.63
134,847.30
35,000.00

24,011.53

308,203.56 527,878.79 53,719.89
64,985.43 20,962.57 81,164.37
244,210.73
2,624.90
625,272.67
114,183.24
3,138.55
213,087.89
154,442.70 61,067.93 29,718.64
2,508,661.86 7,110.05
268,870.28
2.780,642.19
8,483.77
2,771,158.42
42.039,942.46 37.830,906.34
.4,209,036.12


Gourdes
505,722.93
62,485.38
917.92

35,000.00
13,154.94 71,474.55
688,755.72 555,198.93
60,124.37 70,510.28
17,502.54 95,421,21 221,899.36
2,847.75
650,217.72 114,932.19
4,093.66
368,823.96 157,475.95 57,149.23 34,865.87
3,099,818.74
7,966.40
73.377,27
3,181,162.41 7,275.61
3,173,886.80
45,364.648.10 40,930,725.08
--4,433,923.02


Gourdes
1,698,379.86
304,198.76
6,908,047.60
2,148,6525.00 1,141,421.00
420,000.00 206.400.00 247,706.25
90,000.04
13,164,778.51
6,062.415.34
635,084.64
1,062,756.19
247,935.91
1,224,369.56 2,852,485.58 92,287.98
9.082,496.06 1,395,153.62
41,426.15 2,185,104.58 1,965,167.09
530,646.65 388,617.22
40,930,725.08
1,671,072.85
545.995.05
1,842,247.55
44,990,040.53
91,430.92
44,898,609.61
45,364.648.10 40,930,725.08
+4,433,923.02


- -1 -

..




76 IHAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

TREASURY POSITION

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

TABLE No. 51

ASSETS AND LIABILITIES

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

ASSETS Gourdes Gourdes Gourdes
Deposits in Baque Nationale de la R6publique d'Haiti:
To credit of Haitian government in New York funds. 9,313,741.70 9,573,492.30 .
To credit of General Receiver in New York funds. 14,133,080.84 15,164,625.90 23,060,264.75 To credit of General Receiver in Haiti.4,930,926.91 3,170,778.93 4,867,166.97 Cash in hands of disbursing officers 86,936.08 118.103.62 300,079.91
Fiduciary currency reserve .1,584,690.50 2,012,677.50
Advances by the government-reimbursable 67,746.81
Total 28,464,685.53 29,611,691.25 30,307,935.94
LIABILITIES
Interest-internal consolidated debt 200,788.25 442.55 .
Awards of Claims Commission, debt retirement, public works 3.9,1,741.70 9,573,492.30 3,267,693.50
Extraordinary credits.1,750,476.84 4,015,791.61 2,795,828.57
Liquidation accounts 1,602,905.48 1,412,749.17 1,449,806.59 Non-revenue credits 7,254,771.15 4,506,031,80 6,927,054.25 Cash bonds deposited 60,164.10 61,964.10 General Receiver's five per cent fund for customs service 415,498.73 858,462.14 693,778.52
General Receiver's fifteen per cent fund for internal revenue service 34,843.28 298,155.99 368,266.3
General Receiver's checks outstanding 893,125.80 1,438,868.20 1,003,674.60 Fiduciary currency reserve-reimbursable 1,584,690.50 2,012,677.50 Advances by the government-reimbursable 67,746.81
Net balance (Cash working balance) 6,998,534.80 6,367,843.89 11,659,445.17
Total 28,464,685.53 29.611,691.25 30,807,985.94


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

..


HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


Balances of the General Receiver on deposit in Haiti also increased, being Gdes. 3,170,778.93 and Gdes. 4,867,166.97, respectively. This increase was in spite of efforts to maintain balances in Haiti at a reasonably low point in order to receive interest payments from government funds when deposited in New York accounts. However, as expenditures of the Haitian government increase, it is necessary to maintain somewhat larger working balances in Haiti. This explains the expansion of funds of the General Receiver in Haiti.
Cash in the hands of disbursing officers fluctuates rather widely from month to month due to local causes, and the relative magnitude of this figure has little significance.
The reserve against fiduciary currency increased during 1925-26 by Gdes. 427,987.00, and at the end of the fiscal year stood at Gdes. 2,012,677.50. This is at least two-thirds of the total amount which it will be necessary for the government to set up as reserve against fiduciary currency. Gratifying progress in the last two years has been made toward the permanent solution of what has been a rather unsatisfactory element in the financial situation of Haiti.
Minor governmental divisions in Haiti are not well developed, and their financial resources are meager. The communes and municipalities consider themselves quite dependent on the central government for facilities which are considered essential to convenience and progress. This attitude of
dependence is not advantageous, either for the communes or for the state. Accordingly, attempts are being made to induce the communes to increase their interest in such matters as schools, the improvement and care of streets, local beautification and similar activities. Usually the communes are unable to finance capital expenditures, but can assume the obligation to repay the state for advances made for expenditures of municipal concern. Thus in 1925-26 a form of contract was prepared, under which the state is willing to consider advances to minor political divisions for purposes which may mutually be agreed upon. Such advances are to be repaid over varying periods of time, with interest at approximately the rate which the central government has to pay for its borrowed funds. Therefore among the assets of the state appear advances to communes, and probably these items will tend to show expansion in future years.
Turning to the liability accounts of the government, it is found that the reserve for awards, of the Claims Commission, debt retirement and public works markedly declined, as the greater portion of the balance from the previous year was appropriated and transferred to other obligated accounts, upon the conclusion of the deliberations of the Claims Commission. The sum of Gdes. 3,267,693.50 was reserved in connection with an appeals commission which was agreed upon by the Haitian and French governments for certain claims of French citizens-and proteg6s. Adjudication of these claims, which are relatively few in number, will soon be com-

..



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

..



HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 79
particularly large, as the commission of the Banque Nationale de la R~publique d'Haiti for its services as fiscal agent of the government is paid as of the last day of the fiscal year but is not collected until subsequent business days.
The final item which requires comment is the unobligated cash balance of the treasury. On September 30, 1926, this amounted to Gdes. 11,659,445.17 and was Gdes. 5,291,601.78 or 83.10 per cent greater than on the same date of the previous year. The financial administration takes considerable satisfaction in the exceedingly strong treasury position of the Haitian government. It will be noted that this unobligated balance constituted 28.49 per cent of governmental expenditures for the fiscal year. Such a ratio of net quick assets could be shown by few if any governments. Attention for several years has been directed toward placing the finances of Haiti in a position so that times of adversity and lowered revenues could be encountered without curtailment of essential governmental activities. There is reason to believe that unobligated cash resources are now sufficient to care for all probable contingencies, and further enlargement of such balances is not necessary at present. Of course as governmental expenditures continue to expand, as may be confidently expected, an adequate ratio between net quick assets and total expenditures should be maintained.
Taken as a whole, the asset and liability position of the Haitian government is eminently satisfactory. Such elements of strength characterize the balance sheet that Haiti may have reasonable confidence that financial embarrassments will no longer occur.

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

..



80 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

TABLE No. 52
PUBLIC DEBT

Series A Series B Series C Fiduciary Total
Currency

Gourdes Gourdes Gourdes Gourdes Gourdes
September 80, 1915 107,821,656.45 S7.185,657.60 8.853,754.80 153,861,068.85 September 80, 1916 113,455,856.35 38,974,287 85 8,852,663.15 160.782 757.35 September 80, 1917 119,089.179.15 42.093,154.00 7,786,974.80 168.969.807 95 September 80, 1918 124,722,501.95 45,014,560.65 7,510.837.75 177,247,900.85 September 80.1919 0.556.562.00 48.774,145.85 7,245,000.00 146,575,707.85 September 80, 1920 33,487,414.30 51,078,637.35 7,245,000.00 91.811.051.65 September 30,1921. 82,225,464.80 53,090.682.40 6,080,862.50 9l36.5(9 20 September 30, 1922 33.505.429 95 52,945.770 25 8,080.362.50 92,531,562.70 September 30, 1923. 79,215,000.00 25.000,000.00 6,080,362.50 110,315,862.50 September 80, 1924. 78,242,500.00 23,566.980.60 13.158,711.10 6.080,809.50 121.048,501.20 September 80, 1925. 75,183.419.30 21,747,462.30 12,640,072.70 5,660,3"9.50 115,231,263.80 September 80,1926 71,474,157.85 19,775,074.85 11,825,524.80 5,232,322.50 108,307,079.80

the fiscal year 1923-24 funding operations were completed by exchanging the former floating debt for Series B bonds, in a ratio established by the international Claims Commission and by making such securities available for claims which should be liquidated in securities by that Commission. Finally,' the bonds of the National Railroad of Haiti, which had constituted a long standing element of embarrassment in the financial position of Haiti, were exchanged, in accordance with an agreement reached with the bondholders, for direct obligations instead of contingent obligations of the state. This exchange was effected by the issue of the Series C loan.
Thus at the end of 1923-24 the public debt reached its maximum dimension since refunding operations were initiated, and thereafter gratifying progress in its reduction has been accomplished. From an original issue of Gdes. 80,000,000, the Series A loan now stands at Gdes. 71,474,157.35. This deduction has been effected by means of the regular amortization fund provided in the loan contract which is sufficient to retire the entire issue by maturity, and also by means of market fund operations, which have been in effect during the past two fiscal years. As a result the Series A loan is now being diminished at about double the rate which was originally contemplated, and such acceleration in the early years of the loan will have a cumulative effect in later years.
When the revenues of Haiti are between Gdes. 35,000,000 and Gdes.
40,000,000, twenty-five per cent of the proportion by which revenues exceed Gdes. 35,000,000 must be set aside as a market fund for the Series A loan, and percentages in proportion to their respective authorized amounts must be made available for market funds for the B and C loans. However, such market funds may be employed only if the bonds of the several issues may be purchased on the open market at not to exceed par and accrued interest. In the course of 1925-26 the Series A loan sold at 9934, and therefore practically reached the point at which it would be impossible to effect supplementary amortization by open market purchases. Under the terms of the loan contracts bonds may only be drawn by lot for satisfying ordinary

..



HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 81
amortization, but if the market fund cannot be expended for bonds at not to exceed par, such fund reverts to the treasury as unobligated cash. In view of the consistent strengthening of Haitian credit, there is strong probability that in the near future the Series A and Series C loans will reach or exceed par, and at such time progress in debt retirement will be materially retarded by inability to effect supplementary amortization.
Foreseeing this contingency, a law was voted in the summer of 1926 which authorized the Minister of Finance and the General Receiver in their discretion to employ treasury surpluses for the purchase of securities of the Haitian state. In pursuance of such authorization approximately Gdes. 3,000,000 of Series A bonds were purchased on the open market, Gdes. 1,500,000 of Series B bonds were so obtained, and Gdes. 500,000 of Series C bonds. These securities are held in the treasury as assets and considered as cash. There are therefore available sufficient bonds to satisfy the market fund for two or three years, even though the price of Haitian securities should rise above par. In addition, the interest from such holdings is covered into the treasury as miscellaneous receipts and is, of course at a much higher rate than could be obtained on sight or time deposits.
Similar rapid reduction of the Series B loan was effected. Bonds of this issue, which in 1924 sold in the low fifties, were difficult to obtain at 83 during the course of 1925-26. The discrepancy between the market
price of the Series A and Series B loans is due, first, to the fact that the B bonds are payable in Haiti as to interest and principal and do not enjoy so wide a market as the Series A bonds. So far as security goes, the B loan rates equally with the A and C loans, all being payable in dollars and constituting a first charge on the revenues of Haiti, subject to the deduction of five per cent of customs revenues, which is, by the treaty of September 16, 1915, reserved for the costs of conducting the office of the Financial AdviserGeneral Receiver. In the second place, the Series B bonds are subject as to interest, but not as to principal, to the Haitian income tax of ten per cent. In the opinion of this office, such a tax is without merit. But it would be improper to abolish the tax on securities now outstanding. However, it is hoped that for possible internal loans in the future the income tax will not be applied to issues of the Haitian state.
At the conclusion of the labors of the claims commission, there remained unissued of the Series B loan Gdes. 3,836,290.30. At present this amount is still carried as outstanding debt, in view of the fact that the protocol between Haiti and France provided that certain French claims could be submitted to a board of appeal. The value of claims so submitted was some Gdes. 4,250,000. Though it is unlikely that awards of the board of appeal will amount to any considerable figure, either in cash or in Series B bonds, it was considered prudent to carry as outstanding debt the unissued portion of B bonds, amounting to Gdes. 3,836,290.30, until the board shall have concluded its deliberations. There is every likelihood, therefore, that dur-

..



82 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

..











TABLE No. 53
EXPENDITURES FROM REVENUE FOR THE PUBLIC DEBT AND RELATION" OF SUCH EXPENDITURES TO PLEIVENUE RECEIPTS
FISCAL YEARS 1924-25 AND 1925-26

Fiscal year 1924-25 Fiscal year 1925-26

Expenses Interest Amortization Total Expenses Interest Amortization Total

Gourdes Gourdes Gourdes Go-urdes Gourdes Gourdes Gourdes Gourdes
Series A 45,876.75 4,515,915.00 2,174.640.00 7,336,491.75 33,047.60 4,321,200.00 2,553 800.00 6,908,047.60
Series B . 1,090,770.09 1,362,881.05 2,45.3,151.14 911,742.21 1.236,H82.79 2,148,625 00
Series C 1,069.15 768,759.95 439 218.45 1,209.067.55 2,0.0 716,806.50 422,006.20 1,141.421.60
Fdcay curnyrsre 420 ,000.00 420,000.00 420,000.00 420,000.00
Ttlexpenditures 46,965.90 6,875,505.04 4,99,239.50 11,418,7 10.44 85656.50 5,949,748 71 4.=3,68.99 10,68042
Revenue receipts . 40,487,667.00 . 45364,648 .10 Ratio of expenditures from e re, reeep t o reeu. ".11 15.75 12.84 28.20 .08 13.12 10.21 2341

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84 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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hAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 85

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

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

Fiscal year 1924-25 Fiscal year 1925-26

Debt Debt
Required Actual debt reduction in Required Actual debt reduction in b reduction excess of debt excess of
reduction require- reduction reduction requirements ments

Gourdes Gourdes Gourdes Gourdes (lourdes G(ourdes
Series A Loan 2,190,850 00 3,059,080.70 868,230.70 2,863.900.00 3,709.261.95 1,345,361.95 Series B Loan 1,051.854.91 1,819,518.30 767,663.89 842,529.12 1,972,387.65 1,129,858.58 Series C Loan 345.242.95 518,638.40 173,395.45 879,662.70 814,547.90 434,885.20 Nickel currency
reserve 420,000.00 420,000.00 427,987.00 427,987.00 Total 3,587,947.86 5,817,237.40 2,229,289.54 3,586,091.82 6,924,184.50 8,338,092.68

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

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86 hAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

DISBURSING OFFICE
Throughout the year 1925-26 the payment of governmental obligations was promptly effected. In such a country as Haiti, where means of communication with the remote districts are inadequate, there is considerable difficulty in assuring government employees and other creditors that their salaries, pensions and rentals will be promptly paid. Yet punctual payment is most desirable, as employees and creditors are usually in modest circumstances and should not be compelled to suffer delay in receiving their compensation.
In arranging for prompt payments throughout the republic, the Gendarmerie d'Haiti has been most helpful. Checks for payrolls, rentals and other recurrent items are prepared by the disbursing office and are forwarded to the district commanders of the Gendarmerie throughout the republic in sufficient time that they may be distributed by the end of the month during which payment is due. These checks are now prepared by mechanical devices.
In order to prevent error, checks of the disbursing officer at Port-auPrince and of the several disbursing officers in the provinces are now numbered. There is always the possibility that checks may be improperly utilized, but efforts have been made to minimize such danger.
SUPPLY BUREAU
Government supplies for the several departments, when ordered in large quantities, are usually obtained through Mr. H. L. Hershey, purchasing agent, at New York. Office equipment and supplies, however, are usually

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER


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

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

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88 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

CURRENCY

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

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HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER 89

In spite of the unusual activities which characterized 1925-26 there was no currency stringency. The Banque Nationale de la RWpublique d'Haiti, which has the exclusive right of note issue in this country, supplied adequate currency to meet all requirements. Nevertheless, a considerable portion of the circulating medium in Haiti now consists of United States currency, a condition largely induced by the fact that notes of the Banque Nationale are only issued in denominations of not to exceed ten gourdes. It is the opinion of this office that the minimizing of American currency in circulation in Haiti is desirable and that for this purpose the issue of notes of higher denomination by the Banque Nationale is essential.
As of September 00, 1926, the total amount of money circulating in Haiti was estimated as follows:
Gourdes
Notes of the Banque Nationale de la Rpublique d'Haiti 12,275,000.00
United States currency-$1,500,000 7,500,000.00
Subsidiary currency 4,225,000.00
Total 24,000,000.00

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

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

(Gourdes (Gourdes (Gourdes (lourdes Gourdes (Gourdes alourdes
October 6,2(0.000 11,324,000 5,028.470 5,794,470 8,426,670 9,727,340 14,109,319 November 8.370,000 10,221,000 5.380.470 7.591,470 10,819,170 11,886 595 15.911,313 December 9,780,000 9.5w6,000 5,769.470 8,830 470 9,606,587 14.318.109 16,785,970 January 10,880,000 7,471.000 5,704.470 9.698,470 9,283,005 15.451,197 16,886,779 February 11,230,000 6,976.000 6,287,470 10,191,470 10,850,646 16,783,913 19,820,089 March. 11,485,000 6.600,000 5,076,47 11,715,470 10,460,471 16.419,219 18,811,338 April .l1,505,000 6,814,470 6.221,470 10,257,470 9,975,243 15,076.717 16.966,088 Dlay 12,205.00 5.584.470 6,195,470 8,746,470 9,158.500 14.129.579 15.418,497 June 12.220,000 5.284,470 6,182,470 8,097,170 8,360,691 12,475,106 18.9i6,500 July 12,800,000 5.019,470 6.047.470 7,476,170 7.541,370 11.488.606 12,556,82 August 12.750,C00 4,728,470 5.726,470 6,976,170 6,886,370 10,624.853 11.553.078 September 1,240,000 4.571,470 5,726,470 6,979,170 6,975,310 12,571,319 12,277,158
Average.1. 0,980,417- 6,969,402 5,858,887 8,585,20 8.45,86 13,412,679 15,417,588

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90 HAITI: REPORT OF FINANCIAL ADVISER-GENERAL RECEIVER

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

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

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