At this moment it is impossible to make a satisfactory estimate of the new budget, nor can it very well be done until after the United States authorities have been in full possession for at least twelve months, and are thus able to secure complete data as to the pressing needs of the Government of Cuba. Of course, the large items, such as interest on the public debt and expenditures of Spain for the purpose of conquering the Island will have disappeared, making a reduction, if we include the Civil Guards, of $18,000,000 or $20,000,000. To forecast how much of this amount will be required for immediate expenditures under the new order of things is impossible. In recommending revenue laws for Cuba, the author was aided by the suggestions of Mr. Fran Figueras, who has given the subject intelligent consideration. To emphasise the importance of giving immediate attention to a careful division of the expenditures for the central government and the expenditures for local purposes (something the Spanish Government, in the whole history of its management of Cuba, has failed to do), the following is given from a statement made to the author by Mr. Figueras: "The right to impose customs duties has a rational and just limit; it is determined by the legitimate needs of the Treasury. All in excess of these needs converts tax into an unjust, and therefore insupportable exaction. With due attention to these considerations and bearing in mind that the customs duties are the real source of revenue in the Island of Cuba, it is indispensable to determine the total amount of expenditure which this revenue must liquidate. If these expenditures are those used for public defence, central government administration of post-offices, justice, public works, education, and any other which it would not be advisable to turn over to the municipal or provincial governments, we may safely consider that six million to eight million dollars annually would be quite sufficient. This is the largest revenue the American Government should expect from the administration of customs duties in Cuba." Another statement well worth attention in this connection is that of Mr. Philip Pelaez, a former official of the Spanish Government in Cuba, who said to the author when in Havana: