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Show TARIFF HIIS PORTO RICO Tho first annual report of Governor Gover-nor Ynger of Porto RTco, who was appointed by President Wilson In the latter part of 1913, has boon mado public In Washington. The outstanding feature of tho report is the i I effect upon tho revenues and tho prosperity of tho Island caused by tho reduction of tho susur tariff. Tho very first sentenco of tho Governor's Gover-nor's report announces that the period per-iod whlcli It covers 'has boon ono of financial difficulty and economic re adjustment." On this subject lie continues: Amongst tho gcnoral causes for business disturbance, thoso that affected af-fected Porto Ui io most wero the now tariff law of tho United States nnd tho general recession In business activity ac-tivity which seemed to bo felt all over tho civilized world. Hut far moro Important to tho ex-tornal ex-tornal commorco and gonoral ccono mlc condition of the Island wero tho changes that havo taken place In tho sugar Industry, which holds by far tho most commanding position In tho Industrial life of Porto Hico. Tho serious decllnn In this Industry. which showed Itself In tho figures and tables of last year's report, has continued In a still moro marked do-g-eo this year. Whllo this dccllno was not wholly duo to ehanges, present pres-ent and prospective, In tho rates of duty, It nevertheless reflected Itself vory Berlously In tho figures of external ex-ternal commorco nnd general condl tlons of trado for this Immediate year. In external commorco there has been a decrcaso In tho total value of exports of $0,000,803 from tho figures of last year, whlcli is almost oxactly accounted for by tho decrease In exports ex-ports ot sugar, this having amounted to $0,378,823. This docroaso In value val-ue of sugar exports was produced by a sharp docllno both In quantity, whlcli was about 62,000 tons less than last year nnd In prlco which was $0.43 per ton loss than tho year previous. pre-vious. Outside of sugar there was a Blight lntroaBo of about $378,000 In tho valuo of exports. Exports to tho decline In sugar, falling off $0,-11G.443. $0,-11G.443. The total oxports wero $43,102,762. Internal business, whllo slowly adjusting ad-justing ltcelf to tho changes mado nocossnr In tho sugar Industry, has naturally assumed a conservative and waiting nttltudo which has prevented tho Inauguration of now enterprises. Tho dread of tho posslblo results of tho freo sugar provision that Is Impending Im-pending under Uio present tariff law has tended to check progress and developments de-velopments In othor linos of business lntorwovon with this Industry; but tho situation has domonstratod tho genoral soundness of tho actual bus! nes of tho Uland, for whllo progress has been chocked, only a fow over extondod and badly managed enterprises enter-prises navo actually como to grief. Tho Treasurer's report, which Is published as an appendix to that ot tho Oovornor, shows In somo detail the causes of the "financial crisis" confronting tho Insular government, to which Governor Yagor rofers. The Treasurer points out that "duo to tho genorally unsettled business eondl-tlons eondl-tlons ot tho Island, attributable In a largo degree to tho present reduction reduc-tion nnd prospective removal of tho tariff on sugar, It soon becamo ap parent that Uio lncreaso In revenues was going to bo far short of the increased in-creased provisions for expenditures." Tho report shows that following tho reduction In duties by tho Underwood tariff law tho customs revenues o't tho Island, which had been averaging averag-ing $80,000 to $90,000 a month during tho previous two years fell to $50,000 n month during tho first half of 1914. Tho falluro of tho revenues to meot tho expenditures of tho Insular government, gov-ernment, necessitated a bond lssuo of $1,000,000. Tho continuation of oxUtlng conditions will mako It ne cessary to curtail heavily tho ox-pendltures ox-pendltures for education and Internal Intern-al Improvements In tho Uland. The Important part played by tho sugar Industry In tho material welfare wel-fare of Porto Hico is shown by the figures of oxports. Out of a total valuation ot oxports nmountlng to $43,000,000 during tho fiscal year ending Juno 30, 1914, sugar nlono constituted ovor $20,000,000 This was tho lowest sum realized for bub ar oxports In flo years. Under nor-mnl nor-mnl eondltlons sugar constitutes two thirds tho total valuo of all oxports. A significant sidelight upon conditions condi-tions In tho Biignr Industry Is given by a statement in tho report relating to tho sugar experiment station In tho Island. This had boon maintained maintain-ed hy tho Sugar Producers' Assocla Hon, but on account of tho depros " " ' --,. -it c - -' ": slon In tho Industry tho association found It tmposstblo longer to bear tho oxpenso of Its maintenance and turned It over to tho insular government govern-ment as a gift, transferring lands and equipment valued at moro than $00,-000. $00,-000. Tho report discloses very sorlous conditions In Porto Ulco and Indl cntos that, with tho final removal of tho tariff on sugar and tho crippling of tho sugar Industry from which tho most ot tho revenues of tho Island aro dorlved, directly or Indirectly, the Insular government as well ns tho pooplo will faco a condition of actual bankruptcy. |