In respect to another matter, a great deal of foolish talk is indulged in. From the statements of some people it would appear that Cuba does nothing but contribute, by the taxes which it pays, to alleviate the burdens of the peninsular treasury, whereas, in reality, just the contrary is the truth. The nation has, of late, guaranteed the conversion of Spanish debts in Cuba, which took place in 1886 and 1890. Owing to these operations, and to the fact that all taxes which did not have to be met directly by its government have been rigorously eliminated from the budget of Cuba, it was possible to reduce the Cuban budget from forty-six and one-half million dollars, which was its amount at the close of the former war (for the fiscal year of 1878-79) to a little more than twenty-three millions of dollars, as appears from the budget of 1893. The financial laws have been assimilated, and if the system of taxation has not been entirely assimilated, this is because of the fact that direct taxes are very repugnant to the popular feeling in Cuba, especially the tax on land, which is the basis of the Peninsular budget. It appears, however, that our Cuban brethren have no reason to complain in this respect. The direct tax on rural property is two per cent, in Cuba, whereas in Spain it is seventeen, and even twenty per cent. It is evident that every budget must be based on something; in Cuba, as in all other countries in which the natural conditions are similar, that something must necessarily be the income from customs duties. Notwithstanding this, it may be remarked that in the years when the greatest financial distress prevailed, the Spanish Government never hesitated to sacrifice that income when it was necessary to do so in order to meet the especial need of the principal agricultural product of Cuba. Consequently the Spanish commercial treaty with the United States was concluded, which certainly had not been concluded before, owing to any fault of the Spanish Government. Under that treaty, the principal object of which was to encourage the exportation of Cuban sugar, which found its chief market in the States of the Union, many Spanish industries were sacrificed which have formerly supplied the wants of the people of Cuba. That sacrifice was unhesitatingly made, and now that the treaty is no longer in force, is due to the fact that the new American tariff has stricken sugar from the free list. Attention may also be called to the fact that the colonial provinces alone enjoy exemption from the blood tax, Cuba never having been obliged to furnish military recruits.