"Neither in the administration of the islands, nor in the ministry of the colonies, are there any statistics with respect to the composition of the tariffs, and only a few data with regard to valuations. This is as much as can be stated precisely offhand concerning the said tariffs, an analysis of which, article by article, it would be very difficult to get, seeing that there are no statistics of the real importations. Even without asking these investigations, there remains for the Government of the United States the most interesting problem on the making of peace, with the cession of the two islands. Is free trade convenient? Is a simple tariff preferable? Would it not be more prudent to keep to the existing one? Free trade at the present time would impose the burden of the general expenses without any profit and with great dangers, the most immediate being the paralysation of business, the flight of existing capital, etc. The _ad valorem_ tariff diminishes the receipts and gives advantages to a multitude of foreign articles. The tariffs now in force would, with a few changes, suit the islands and the United States for a long time to come." This sets forth substantially what has been done. The United States Government has made no violent fiscal changes in Cuba. Where the old laws and methods and customs could be fitted to the new order of things, they have been so fitted. The first and only radical change in the revenue system of Cuba is the speedy and absolute separation of local and general revenue. That which is local should be collected by local authorities and regarded as municipal revenue, to be expended for municipal purposes; while that which is general should be levied and collected by general authorities and expended for the general welfare of the Island. The general fund, after careful consultation with the governor of each province, should be apportioned geographically, and also into funds, such as the following: _a._--Maintenance of the general government, 20 per cent. _b._--Sanitary and other improvements, and loans to cities therefor, 10 per cent. _c._--Public schools and education, 10 per cent. _d._--To pay the bonds and other obligations issued by the Provisional Government of Cuba and its duly authorised agents since February, 24, 1895, which in the aggregate must not exceed $2,500,000, and to pay amounts due the soldiers of the Army of Liberation, 20 per cent. _e._--Development of the Island by the building of railroads, properly constructed highways, and other means of communication, 25 per cent. _f._--The repayment of the cost to the United States of the temporary military occupation pending the establishment of the proposed stable and independent government, 15 per cent.