care of the interest and sinking fund of the water-works bonds. From the American point of view the most unwise tax in Havana is that which has made the slaughter-houses of that city a constant source of scandal. To-day every kilogram of meat killed and used costs the people of Havana 4-1/4 cents, and thus the cost of living of the poorer classes is greatly increased; yet the revenues of the slaughter-house are pledged to pay the interest on the water-works bonds, when the water-works themselves are ample security for this purpose. The real estate of the city should be reassessed fairly and justly, and a tax-rate arranged which would relieve many of the professions and industries of unnecessary taxation. It would seem from a glance at the budget of Havana that, if this were done, and the petty, annoying taxes abolished, sufficient revenue could easily be raised for all legitimate purposes. As a matter of fact, a very large proportion of the taxes collected for municipal purposes in Havana has been diverted from legitimate channels only to find its way into the pockets of those who have had charge of municipal affairs. According to the evidence of several witnesses who appeared before the author in Havana, a large amount of money was exacted from the people of the city by corruption, in the way of petty fines paid direct to officials, and not into the treasury of the state, and also large sums of money in the shape of payment for indulgences, much in the same manner as the Tammany officials exact tribute from those conducting illegitimate business or those engaged in breaking the ordinances of the city. Relief from this sort of exaction has been at once felt in Havana, but will not be fully appreciated until the present Governor of the city is able to ferret out and stop these several forms of imposition. CHAPTER XIII BANKS AND CURRENCY