The tariff adopted by the United States, when the military forces took charge of the custom-houses, reduced all duties about sixty per cent. on the old Spanish rate, and averages fully two-thirds less than the rates exacted by Spain in Cuban ports during the last five months of its occupancy of the Island. The reasons for these reductions, together with the reasons which led up to the decision of the President to admit cattle and agricultural implements free into Cuban ports in possession of the United States, are fully given in another chapter. Still another chapter will be devoted to an analysis and discussion of the Cuban Budget, in which the effect of the new tariff on the revenue of the country, together with the other sources of revenue, are explained and discussed. It will naturally be asked: With such a large reduction of duties, how does the United States expect to secure revenue for the purpose of administering the government of the Island? There are several answers to this question, and the facts bearing on the subject are given in full in the chapter on the Cuban Budget. The general answer is that by reason of fraudulent classification and smuggling, much of the revenue collected from the people of Cuba never found its way into the treasury of that Island, nor of Spain. The cupidity and rapacity of the Spanish officials in Cuba are beyond conception, and, if one may judge by the reports of the United States customs officials at Santiago, as much revenue will be received from a tariff whose duties are from a half to two thirds less than the Spanish tariff as was received under the iniquitous and exasperating law which has been abolished by the advent of the American forces. As the officials recommending the measure believed, the reduction to a reasonable rate of duty in certain schedules--such, for example, as those relating to machinery and railway supplies--would increase importation, and certainly the revenue would be greater than during the period of prohibitory duties. A railway company naturally hesitated to import a locomotive when the duty was equivalent to the value of the engine. With a revised tariff of twenty-five per cent. ad valorem, it may import two, or four, or even six. In adjusting such schedules, the revenue features alone need be considered, because Cuba has no locomotive works, or any iron or steel industry. The same is true of a variety of other articles.