of Cuba were the ones deserving of recognition rather than those who had either opposed the war or held aloof from it. Yet the former class included by far the greater number of the less responsible, while the latter class included many of the highest intelligence and the greatest property interests. These latter held back from participation, while the others clamored for place and recognition. As in both earlier and later days, there was illustrated the tendency of the Cuban people to split into political factions rather than to divide into distinct political parties.

Unduly magnifying that which their country had done for Cuba, and forgetting that American intervention in the affairs of the Island was far from being entirely unselfish, too many Americans looked to see the Cuban people in an attitude of subservient gratitude, and, finding them less voluble in their thanks than was thought to be fit and proper, at once declared them an ungrateful race. The pity with which the Cubans had been regarded, during their days of struggle and suffering, largely disappeared, and its place was filled by an uncharitable conviction of Cuban unworthiness. Too many held an idea that to have freed the Cubans from Spanish bondage was enough to command their submission to and gratitude for anything which might be imposed upon them by their alien rescuers. Unbridled comment upon their ignorance, their indifference to sanitation, upon the clamor of many whom the Cubans themselves knew to be unworthy of place and preferment, and a general air of superiority on the part of so many of the thousands of Americans who, as soldiers or civilians, were on the Island in those early days, tended strongly to drive the Cubans into a semihostile attitude which was clearly noticeable.

A well-defined breach between the Cubans and the Americans was apparent as early as the middle of February.

The Cubans felt that they were being ignored in affairs in which they believed they had an active concern. Military methods over-rode civil systems established by the military authorities. Americans were irritated by Cuban manifestation of a resentment which, in many ways, was excusable if not justifiable. Opposition and unfriendliness grew upon the one side, and uncharitableness developed upon the other. Cuba's most emphatic political grievance in earlier days had been the system of military absolutism. America's special energies might be directed along other lines than those followed by her predecessor, but the Cuban saw little change in the system. No doubt, the Cubans expected too much, and unreasonably expected political and economic relief which could only come through a process of time. But it is perhaps equally beyond doubt that the Americans too frequently failed to take the Cuban and his ambitions into a duly tactful consideration.

A problem which was among the earliest to be encountered was presented by the condition of affairs in the various municipalities. Under the existing system, the Island was divided into municipal districts which practically correspond to American counties or parishes. These districts constitute the political and administrative units of the Island. Each municipal district is under the government of a municipal council. Each must contain not less than two thousand inhabitants, and present an area of territory fairly proportioned to its population. They are sub-divisions of judicial districts and provinces. At that time there were in the division of the Island six provinces, thirty-one judicial districts, and one hundred and thirty-two municipalities. The municipality is divided into subdistricts and these into wards, or barrios. The affairs of these municipalities were found to be sorely tangled. There was confusion in the

laws which regulated them, and dire confusion in their administrative processes. Many of them showed outstanding liabilities with creditors seeking the settlement of accounts. Many of the municipal governments had expired and there were neither officials, treasury, nor revenue. On March 21, an order was issued suspending the prosecution of all claims against municipalities or Provincial Deputations, pending a reorganization. As rapidly as possible, mayors were appointed to fill vacancies, and allotments made from the insular fund to provide for their immediate needs. This method was continued until the elections of June, 1900. Yet, notwithstanding this provision, at the close of the year it was found that the municipalities had incurred a debt whose total amounted to some $300,000. This, it will be understood, was the sum of municipal expenditure beyond the amount locally collected and the appropriation by the central government. This situation was due, in part, to the influence left in the Cuban mind and custom by Spanish methods; in part, to the inexperience of the officials; and, in part, to the failure of the intervening power to set in motion those processes of local taxation from which selfgoverning municipalities properly derive their revenues.

The problem of the effective reconstruction of these organizations was one of the most serious and complicated which was presented for American consideration. Life under a strongly centralized government, in whose processes municipal governments were inextricably entangled, finding a confused termination, local self-government and provision for necessary revenues seemed beyond the immediate reach of the Cuban people. The application, even in no more than a general way, of the American system, involved a change so radical as to encounter the disapproval of Cuba's ablest men. The poverty of the people was urged as an

insurmountable barrier to any system of local taxation. In the minds of many, this was an excuse and not a reason. Doubtless there were those who were utterly unable to pay taxes upon real property which belonged to them. But there were also many, notably in the larger cities, who could pay, and they were relieved because of the poverty of the others.

The City of Havana was especially favored in the matter of appropriation from the insular fund. Major Ladd, the treasurer of the Island, reported that

"From Jan. 1, 1899, to June 30, 1900, the city of Havana received from the General Government nearly five millions of dollars, the same being expended almost exclusively for distinctly municipal purposes. In lesser degree the same conditions obtained in other cities. The proper course would seem to have been some system of local taxation by which the various municipalities bore all or at least a large part of their expenses."

A complete revision of the system of taxation may have been beyond the scope of the proper functions of a government which was pledged "to exercise neither sovereignty, jurisdiction, nor control," but it is nevertheless true that equally radical changes were effected in other departments of insular affairs. But that was not the ground upon which decision was made in this matter. The innovation appeared to be unpopular, as taxation usually is, and appropriations continued from the insular funds.

It may be said in this connection that this matter continued as a source of more or less active confusion and irritation throughout the period of American occupation. A committee appointed by General Wood, in January, 1900, reported adversely to the taxation of values instead of incomes and products, although the system relieved

from taxation many large areas and valuable properties from which owners, often men of large wealth, were deriving no immediate income, and imposed a burden upon many who were struggling for livelihood. There was also gross misuse of such funds as were made available by the system adopted. In the official report of the insular Secretary of the Treasury, Señor Cancio, published in the fall of 1900, it was shown that the municipal revenues for the whole Island were $1,188,333.31. Of this sum $838,968.50 was spent for official salaries and office materials, and $349,364.81 for public improvements of all kinds. This is a most discreditable showing for the officials, though it is indicative of nothing so much as of the effect of Spanish influence and political example. The problem is now being worked out, and its full solution will be facilitated and hastened by a reasonable measure of industrial prosperity in the Island.

Early attention was paid to the condition of Cuba's penal institutions. These places were not only in a condition of disgusting and horrible filthiness, but they were as well crowded with prisoners, some serving sentences, some awaiting trial, and some held for no ascertainable reason. Many of them were political prisoners. An American officer was assigned to investigate the cases as rapidly as possible, and for a time a very considerable jail delivery was effected. The process continued as time was found for investigation, and the end of the year found no great number of people in jail who did not properly belong there.

The gradual dissolution of the Cuban Army of Liberation had been in process ever since the termination of hostilities at Santiago. Its definite disbandment began in November, 1898. A Licencia, or furlough, was granted to all who could obtain work or who desired to return to their