THERE have been published many and varied articles relative to the condition prior to and after the occupation of the Dominican Republic by the United States forces. Notwithstanding these articles, I will endeavor to give a narrative of the principal points and conditions leading up to the establishment of the military government and a short account of some of the things done by it. It is to be borne in mind that the method of establishing quiet, of stabilizing conditions, and of aiding in the development of the Dominican Republic was different from that which had been used by the United States on previous occasions in other places and was considered to be in the light of an experiment. It is believed that in following this method, many obstacles, which had been encountered by the United States in its helpful activities in other countries, were eliminated. This account covers, other than some financial history of the previous few years, approximately the first two and one half years of the military government’s activity, during all but the first two months of which I was on the staff of the Military Governor and administered the affairs of the departments of “Public Works and Communications” and “Agriculture and Immigration.”
In 1907 there had been created a public debt of over $30,000,000. This debt was caused principally by disturbed political conditions with revolutions and resultant claims against the government. The Dominican Republic was able to bring this indebtedness to $17,000,000 by a political adjustment.
By what is known as the American Dominican Convention of 1907, the bond issue of 1908 was effected, whereby the sum of $20,000,000 was realized by the Dominican Government. This sum was used for the purpose of settling all claims, the purchase of certain concessions and for public works projects. Among the conditions under which this plan was accepted was that the United States should lend its assistance in the collection of the public revenue of the Republic and that the Dominican Republic should not increase its public debt without first obtaining the consent of the United States. In 1912, with the consent of the United States government, the public debt was increased by an additional loan of $1,500,000. This loan was paid off in 1917.
Political disturbances and revolutions continued, however, until by June, 1916, there had been contracted by the Dominican government additional claims of indebtedness amounting to over $15,000,000. This indebtedness was contracted without the consent of the United States, thereby violating Article III of the Convention of 1907. This debt had been accumulated in various ways from graft to real necessity; for the suppression of revolutions, some for unpaid bills of the government, some for unpaid salaries, and some for damages due to seizures by revolutionary bodies.
In May, 1916, during a period of revolution and poor financial management, the American government took action to establish order. The marines landed and stopped the revolution. In June, the General Receiver of Dominican Customs, (an American treaty official), took over the collection of internal revenue. A special deputy with three assistants was placed in direct charge of the Dominican treasury, which was found to be in a chaotic condition. The cash balance showed a deficit of $14,234.63, supply bills and salaries had been unpaid for months and thousands of creditors with accumulated accounts were clamoring loudly for their money. Due to the fact that the government had been in disorder for such a long period of time, the morale of the employees was very low to the extent that continual fraud against the government was practiced without fear either of detection or punishment. The collections of internal revenue were irregular, and of the collections actually made only a part ever reached the treasury. No effective check was made on disbursements and little, if any, notice was taken of the budget in force. Since the people seemed to believe that there was little wrong in defrauding the government and that public office was considered a license to take tribute, rather than a sacred trust, it was very difficult to sift the legitimate pending current accounts from the fraudulent ones. A great many claims which were presented to the government for payment were certificates of indebtedness which had been given by the government for debts in lieu of cash. These certificates had been bought up by speculators at a very small fraction of their actual value. At first an attempt was made to pay current accounts where their correctness could be established, but this proved to be a greater task than had been anticipated so that in August, 1916, those in charge considered it necessary to suspend all payment under the budget in force. This action was taken also as a matter of coercion in an endeavor to force the Dominican government to meet the wishes of the United States, but those affected most by this suspension were not in a position to force the government and this action consequently caused a great deal of real distress.
The Dominican Republic was placed under military government by the United States on November 29, 1916, Rear Admiral (then Captain) H. S. Knapp, United States Navy, issuing the proclamation on that date. Although the republic was placed under military government on that date, Admiral Knapp did not assume the title of military governor until he was specifically ordered to do so a few months later. The proclamation recited that,
The Dominican Republic had failed to live up to the terms of the treaty of 1907, that the American government had patiently endeavored to aid the Dominican government, but that the latter was neither inclined nor able to adopt the measures suggested. Therefore, the American government believed the time at hand to take steps to assure the execution of the said convention and to maintain domestic tranquility in the republic. The object of the occupation was not to destroy Dominican sovereignty but to restore order.
The military government thus established proceeded to reorganize and stabilize the activities of the different governmental departments and to undertake a general improvement of the country. It waited for some days after the proclamation for some indication that the provisional government would in some way cooperate in carrying on the ordinary administration of affairs. No indication of cooperation or assistance was manifest however, and persons familiar with conditions gave assurance that the military government could expect no assistance of any kind, whereupon the offices of the military government were established in the government palace. Upon taking possession, it was found that the president and cabinet had come to the palace after the proclamation, had cleared out their desks, and had not since appeared in the palace. Since it did not seem possible to get Dominicans of suitable character to accept the different cabinet offices for fear of criticism of their own people, and because of the attitude of the Dominican governmental officials, it became necessary for the Military Governor to place officers under his command in these offices in order that affairs under the different departments could be properly administered. This procedure met the hearty approval of politically disinterested Dominicans, many of whom later requested and begged the Military Governor not to think of appointing Dominicans in these offices, but to continue the administration of affairs through the American officers whose work was giving such satisfaction to them.
As noted above, payment under the budget of 1916 had been suspended in August, 1916. Three days after the proclamation, payments of all salaries with the exception of those of the president, cabinet officers, congress, and major officials, appointed by the provisional government, were resumed. This together with the announcement that any check drawn, for payment of a salary, would be made payable only to the individual in whose name it was drawn, and would not be transferable by endorsement, had the good effect anticipated.
After the proclamation there was no political disturbance of any magnitude. Several attempts were made, but were unsuccessful. The marine forces of occupation were stationed throughout the republic and moved about as circumstances dictated. The principal operations of the marines were directed against certain outlaws and bandits but, as usual, the marines were able to meet the situation. A very great deal of this banditry or outlawry was really no worse than exists in certain parts of the United States today, but, in view of the circumstances, was made much of by malcontents in the Dominican Republic and, in our own country, by critics of the United States government’s action.
The populace was gradually disarmed, which of course tended to the advancement of general tranquillity.
The holiday season, previously a period marked by shooting, violent deaths, and so forth, was, during the 1916 holidays, quiet and orderly throughout the country. Dominicans of wide acquaintance and experience stated that the disarming of the people was one of the best things that had ever happened to the country.
The Dominican congress, which had been sitting as a constituent assembly, adjourned sine die on the day that military government was declared. The next session was due on February 27, 1917. The constitution, however, provided that the terms of one half the deputies and one third the senators should expire every two years and, since February 27 was the regular date for the expiration of one quota, the provisional government had issued calls for an election to fill the vacancies.
Under existing disturbed political conditions throughout the country, it was considered out of the question to hold such an election. This opinion was shared both by American officials and Dominicans themselves. An executive order was, therefore, issued which prohibited the holding of elections in the republic.
It therefore followed that owing to the constitutional termination of the services of certain senators and deputies, and to the fact that elections were forbidden, and that a quorum did not exist, the military governor issued an executive order suspending congress as well as suspending from office all senators and deputies whose terms had not expired. Like the order suspending elections, the suspending of congress met with almost universal approbation as a measure that would go far in removing disturbing political agitation.
When the military government was first established there were a number of foreigners, particularly Americans, who appeared to feel that the government was intended more or less to be a means of facilitating or favoring their own enterprises rather than a serious attempt to set the Dominican Republic on its feet. A tendency was manifest in those early days to rush, through the military government, measures that had apparently been hanging fire with the Dominican government. Even some of the Dominican people holding high office endeavored to use “pull” to get official sanction to illegal gains on their part. One case in point was where a judge wished to hold his judgeship and at the same time draw salaries for other positions under the budget. He solicited the aid of one of the principal political leaders of the republic and in company the two men visited the military governor. The request was made of the governor who, of course, replied that such a thing could not be done in accordance with the law, which fact the judge no doubt knew. The political leader had, of course, carried out his obligation to the judge, and when he heard the governor’s answer seemed to be secretly amused.
The military government always held it as an article of faith that it was acting as trustee for the Dominican government in defense of the interests of the people, and it refused to be rushed or to act on such measures without knowing their merits.
The government persisted in this attitude with the result that the conviction became general that the military government, while it would not stand in the way of, and would on the contrary aid, foreign enterprises authorized and conducted strictly according to Dominican law, would not permit them to have concessions of a character that allowed them to exploit the country for their own selfish ends at the expense of the Dominican people.
One of the first real problems confronting the central government was the extinguishing of all claims against it that had arisen, subsequent to the negotiation of the treaty of 1907, estimated at about $15,000,000, as well as providing the means of paying them off. This question was given immediate attention, but due to its many phases as well as membership, powers and jurisdiction of the commission to handle it, the executive order appointing the commission known as the Dominican Claims Commission of 1917 was not signed until June 26, 1917. This commission had for its purpose the investigation of all claims subsequent to the adjustment made to conform to the American Dominican Convention of 1907 and prior to the establishment of military government, November 29, 1916, the making of awards of amount due each claimant, and for the further purpose of recommending ways and means for the settlement of such awards.
This commission was vested with all the power of Dominican courts and from its judgments there was no appeal. It could summon witnesses, administer oaths, examine public or private papers, impose fines or imprisonment for contempt, perjury, obstructing its proceedings, or any other act tending to defeat its purpose. Needless to say it was called upon prior to the completion of its work to avail itself of practically all the powers with which it was vested.
The work of the commission was completed in August, 1920, having reviewed approximately 9,000 claims on which awards on over 6,000 were made in amounts equal to approximately $4,250,000. In order to take care of this allowed indebtedness, the bond issue of 1918, amounting to over $4,000,000 was made. On July 31, 1920, due to bonds redeemed and money in the amortization fund there remained less than $3,000,000 of this bond issue yet to be paid.
It is quite evident as shown by the result of the commission’s activities that its accomplishments were of paramount importance in removing the greatest of barriers to the country’s progress. Other than the larger and well-established claims against the government, many resulted from the lawless acts of former governments, whose highest officials would require personal service and entertainment from individuals who could not afford them. Many cases of poverty were the result. The adjustment of such legitimate claims caused great relief.
On the other hand, as shown by the number of unrecognized claims, there were many attempts to defraud. Shortly after the commission began its sessions and the public at large realized the possibilities in connection with false claims many withdrew their claims which had been registered. Even then there were a number of cases where fines and imprisonments were imposed because of absolutely false claims or perjury.
Since the United States had taken over the responsibilities of government there was no apparent reason for the continuance of the activities under the Department of War and Marine. Consequently, activities under this department were suspended and such unfinished business or questions as might arise were placed, with one or two exceptions, under the cognizance of the Department of Interior and Police.
It was under this latter department that the guardia or national police force was reorganized. This force was given training by the U.S. Marines and it was hoped that in the long run the people would appreciate the advantages of stabler conditions, of good order, and that with the aid of this police force they themselves would not further permit revolutionary movements that had done so much in the past to retard the country’s development. Numerous evidences of esteem in which the police force was held were shown. One case in particular was where the captain of a company (Sergeant, U.S. Marine Corps), had been assassinated and high civil officials as well as the citizenry of the town expressed their grief and horror over the assassination, declaring a two days’ mourning in his honor, closing all business houses, prohibiting entertainment in public and private, as well as the passage of vehicles in the public streets during that period. This may have been to a large degree a personal tribute, but it was felt to reflect honor on the organization to which he belonged.
In the regular organization under the law existing prior to the coming of the military government there was nothing which provided for an adequate public health service. There was authority for a board of sanitation, but nothing at all was being done by this board. A surgeon of the Navy was appointed as head of this board and under his guidance and control the board’s activities were recognized and spread to all parts of the country. Later on, the board of sanitation was superseded by the Department of Public Health and Beneficence.
Every activity over which the central government had control was given careful consideration by those concerned. I will later take up matters that can better be handled under the different specific departments. From time to time different officials made extensive trips throughout the country for the purpose of getting first hand information on local conditions, meeting the different civil authorities, and discussing personally with them subjects which were of particular interest to those people concerned, and also for the purpose of discussing generally the aims of the government as well as letting them know that the central government had an interest in their welfare.
When the officers of the military government first assumed their duties they were deluged by requests, suggestions, and petitions of every sort from all parts of the country. Had they all been followed or acceded to it is difficult to say what could have been the result. It was therefore quite necessary to go slowly and follow the iron-bound policy of first examining the state of the treasury, estimating the minimum future income, determining on the most desirable projects, and then attempting only those most desirable projects which would in no way hazard a safe cash balance.
It can well be seen that it became quite desirable and necessary for government officials to make the above mentioned visits in order to sift the desirable projects from the undesirable ones as well as to discuss the government’s method of determining its operations, thereby letting the people know that they were receiving every possible consideration, while the government at the same time was preventing a repetition of the over expenditure of funds on hand as well as possible future income, as had been done in the past.
One of the outstanding features of the proclamation was the announcement that
The ordinary administration of justice, both in civil and criminal matters, through the regularly constituted Dominican courts, will not be interfered with by the military government herein established; but cases to which a member of the United States forces of occupation is a party, or in which is involved contempt or defiance of authority of the military government will be tried by tribunals set up by the military government.
This attitude was zealously guarded by the military government and every effort was made to lend aid to the courts and increase their prestige. The salaries of the judges which previously had been extremely meager were increased in keeping with the dignity of their office. It was found that the courts greatly improved, that the increased pay of the judges had resulted in greatly raising their independence and efficiency, while the support of the military government stiffened them in the performance of their duty.
Educational matters in the country were in a deplorable condition. The schools were inadequately housed, there being only enough space to accommodate a very small percentage of the children. The school furniture and equipment were badly wanting both in amount and condition. It had been unfortunate that in the handling of the schools so much graft had been practiced.
In the second month of the military government a commission composed entirely of Dominicans and headed by the Archbishop of Santo Domingo was appointed for the purpose of going thoroughly into the subject of education. The secretary of the commission was appointed superintendent of schools and the work of reorganization was immediately begun. Unworthy teachers were weeded out and less attention was paid to higher education and much more to primary and secondary education. One of the two so-called universities was suppressed and an effort was made to reduce illiteracy of the masses rather than to give a limited class a professional or literary education.
Different from the method adopted in the Philippines and Porto Rico, that adopted here was to carry on the education of the children in their native language rather than to force the English language on them. It was surprising how many American and other foreign people condemned this policy and strongly advocated the requirement of English. It is believed, however, that they had lost sight of the proclamation which stated that the United States had no intention of interfering with the sovereignty of the republic and that perhaps in a very few years the military government would be withdrawn and there would exist the unquestionable problem of changing the system. Furthermore, the fundamentals of education could be given to greater numbers in their own language by methods to which they were accustomed, with the same total cost.
There was soon manifest a decidedly upward trend in the matter of education as well as an increased interest shown by educated people and the directly benefited class themselves. Improvements were shown in all directions from the matter of school buildings, furniture, and equipment to rectification of courses, preparation of school books, general reorganization, compulsory attendance, teachers’ qualifications, and compensation commensurate with their work. The attendance during the first two and one-half years increased about 120 per cent under more modern standards and the appropriations for school purposes in 1918 doubled those of 1917.
Public Works and Communications.—The operations under this heading covered a great many activities such as public works, harbor improvements, post office, telegraphs, railroads, mining law, patents and trade marks. The office of public works and the government-owned railroad were presided over by American engineers nominated by the United States. All funds for public works projects had to be first appropriated by the Dominican government and this appropriation, if from the Dominican loan, had to be approved by the United States Department of State before the money became available.
Operations under public works were at a practical standstill when the military government was established, but after a careful study was made of the situation, funds were provided for the prosecution of work already authorized and for certain new work. There was laid out a broad scheme of projects upon which the remainder of the loan available for public works might be spent in a manner that would be to the greatest advantage of the country as a whole. This plan was approved by the State Department and steps were immediately taken to put it into operation.
Several projects under the plan were already in operation under contract when the military government took possession, but as funds derived from internal savings became available in the treasury, other numerous improvements were undertaken. These comprised such projects as repairs to public buildings, roads, lighthouses, smaller items of new construction, and harbor improvements. The entry of the United States into the war brought in the difficulty of entering into contracts with American construction companies and of obtaining materials at a reasonable price for carrying on the major activities. It therefore became necessary for the military government to carry on most of the work by administration and to use its influence through the Navy Department in providing the necessary equipment and materials. Further difficulty was encountered in obtaining labor, a common condition in the republic, and this proved to be a great handicap in the carrying on of road building.
It was believed that there was nothing more vital to the development of the country than adequate roads and there was not a passable road across the island in any direction. Communications between the north and the south, across the central mountain range, over a distance of less than one hundred miles, was possible only by trail, often impassable in the rainy season, or by a sea journey of four or five days. There were several sections of highway already completed which were eventually to be parts of main highways, but there remained practically 200 kilometers yet to be built. After the approval of the public works plan by the United States, the construction of a highway connecting the north and south was carried on as fast as adequate equipment and materials arrived and the necessary labor could be obtained.
Two other projects of importance undertaken by public works were the building of a national leper colony and a penitentiary. The need for these institutions was imperative since lepers, though very few, could be found in the streets coming in daily contact with other people, and as for the jailing facilities, the word inadequate is barely expressive of the condition. The jails were unsafe, unsanitary, and too small.
In December, 1917, a national road law and accompanying regulations for motor-driven vehicles were promulgated and placed under the office of public works. Previously the only laws covering the subject were local ones, as there had been no need for a uniform law, since there were no passable connecting roads between cities. As roads were opened up, however, the new law became necessary, for, needless to say, the different municipalities had handled this matter in divers ways.
The general policy was to concentrate all funds and energies on opening up of highways and second class roads rather than to deviate any money to the building of railroads. There are two railroads in the northern part of the island, one, a privately owned road extending through the northern valley, east and west, from the most thickly settled portion in the north central part, to Samana Bay. The other road is owned by the Dominican government and runs from the same north central section to Puerto Plata which is in the northern part of the island. This latter road crosses the most northern range of mountains, over part of which it is necessary to use geared engines, and consequently it is inadequate to handle all the traffic that eventually will be demanded of it.
At first this road was in an unsafe condition due to the ravages of revolutions but, under a new management, continual repairs were made and all the freight which had accumulated was eventually moved. It soon was able to handle all the business presented to it with the result that instead of its being a burden to the government it became a paying utility. The income during 1918 increased so rapidly that it was deemed advisable to reduce the then high tariff by 10 per cent gross.
The mining laws of the country were extremely poor. They were not comprehensive in any manner and gave no protection to the government especially as to concessions granted. They were inadequate as was proved by the fact that concession holders used the possession of a concession for personal ends along speculative lines without even the expenditure of either labor or money in their development. They exploited their concessions in any place where a market could be found for them with the ultimate result that the subject of Dominican concessions received a very bad name not only in the Dominican Republic but in foreign countries as well. Illustrative of the abuse of concessions to interested buyers in the United States the following story is told as something that really happened in the days before the occupation. It is about a so-called “Paint Mine.”
Mr. Jones owns a paint-mine concession in Santo Domingo near Haina and, wishing to sell, he communicates with Mr. Smith in the United States, sending him a sample of the raw paint materials. Mr. Smith, after having these samples analyzed, makes the surprising discovery that they contain gold in good paying quantities. Much elated over this discovery he secretly interests several friends well able to finance such a “find,” proposing that they form a combination with the intent of buying up the “paint-mine” concession belonging to Mr. Jones. Agreeing to keep the discovery of gold in these samples secret, they decide to send their own representative to Santo Domingo to obtain another sample in order to verify their analysis. This, their representative does, and, accompanied by Mr. Jones, returns to the United States. The second sample also shows the presence of gold! By this time, secretly convinced of their “find,” they enter into negotiations whereby Mr. Jones receives $20,000 in cash for the option on his “paint-mine,” with the agreement that $10,000 more will be paid upon the arrival of the purchasers in, the republic, and a further $20,000 upon the complete turn-over of the concession.
These financiers decide to combine business and pleasure. In a yacht belonging to one of their party, they make a West Indian cruise. Upon arrival in Santo Domingo negotiations are completed on the payment of the $10,000, after which the party proceeds out toward Haina to take possession. As they near the vicinity a great deal of firing is heard and rumors along the road warn them that another revolution is on, revolutions being a very frequent occurrence in the Dominican Republic at this time.
The revolution does not abate presumably, and after waiting some days these men finally decide to return to the United States, and leave their representative there to take possession as soon as possible.
Upon their arrival home a cable is received which informs them that they have been “sold”! The revolution ended the day after the party had departed for the United States, there was no gold in the mine, and both the original sample and the second one had been “salted,” the latter accomplished by substituting the representative’s sample on board ship during his voyage north.
At no time was any other than a “paint-mine” concession offered for sale by Mr. Jones, and Mr. Smith and his financiers bought only a paint-mine, secretly thinking they had gold.
There seemed to be just enough prospect of future developments in the natural mineral resources of the country to justify long chances in wild-cat exploitation. As a result the military government believed it desirable not only to cancel and eliminate all outstanding concessions on which no satisfactory development had been made, but to frame a mining law which in the future would properly control this activity.
The general policy of clearing up mining concessions where the holders were not fulfilling their obligations was carried out. Through the courtesy of the bureau of mines in the Department of the Interior of the United States one of the law examiners of that bureau came to Santo Domingo City and made a thorough study of the Dominican mining law and other laws on the subject and, after careful personal survey and consideration of the situation, drew up a new law which was considered adequate to meet all needs of the republic under that subject. After all points of this law were discussed with different prominent Dominicans who had the general welfare of the republic at heart, and had met generally with absolute approval, the final draft of this law was drawn up. This law became effective shortly after I left.
The conditions existing in the postal service could be termed utterly inefficient. The method of handling correspondence was very complicated, tedious and slow, with the result that it had become very costly and irregular. The personnel seemed to be quite indifferent in the performance of their duty and the vast majority of offices and agencies seldom, if ever, kept stamps on hand for the accommodation of the public. They kept detailed statistics in large ledgers showing the number of pieces of each kind of mail received daily from different points and rendered regular and elaborate reports to the central office. The handling of registered mail was needlessly complicated and involved, requiring too much clerical work. There was in vogue a system whereby letters could be mailed minus postage stamps and when delivery was made double postage was collected. Every year thousands of such letters accumulated because of either improper address or refusal to accept. It was found that domestic mail was being transported over mail routes by anyone who would do it at the least price, day by day or trip by trip, and with no other contract than an oral understanding. The extreme irregularity and unreliability of the delivery of mail can be easily understood. The buildings in which the post offices and telegraphs were housed were usually the most dilapidated in any city or town and consequently were the subject of grave concern.
It is quite evident from the above that there was a vital need for a complete reorganization along modern lines in this service. It was therefore determined to improve and broaden the service; to use every means practicable to increase the revenue, to economize to the limit without lessening the efficiency, and to create an efficient, expeditious, and secure system of transporting the mails.
One of the first steps in the reform of this service was placing of the employees under civil service rules. There were no civil service laws or regulations in the republic and it was believed that its creation would be an excellent means of bringing the personnel of the postal service to a much higher state of efficiency.
It was well known that one of the fundamental causes of political unrest in the republic had been the possession of public offices by virtue of politcal association and it was felt that with this cause removed it would naturally follow that the future would hold less reason for repetition of disorders. It was believed that the establishment of civil service would not only tend to maintain political tranquillity, but would be a most stimulating factor in the development of the public school system.
There was, of course, a certain class of mentally unqualified political employees who opposed civil service and endeavored to discredit its purpose, but this class as well as the public finally grasped the idea that the only way to obtain and retain positions under the postal administration, where civil service was in force, was to possess the necessary mental qualifications proved by examinations, together with a reputation for honesty and industry.
The broad plan of reorganization was not put fully into operation until the service of a United States postal inspector of many years experience, both in the United States and Latin countries, was secured. It was through the courtesy of the Postmaster-General in Washington that he was released from the United States postal service to the service in the Dominican Republic.
Under the supervision of the new director, things began to move more rapidly. Parallel with the civil service establishment every postal official whose responsibility warranted it was placed under bond as well as under oath of office. Among other improvements were the handling of supplies at reduced cost, the making certain that an ample number of stamps were on hand at all times at all offices, installing a more systematic and responsible method of handling mails, the causing of actual investigation of complaints (a thing that never had been done hitherto), and the establishment of an office for the purpose of handling dead correspondence. As these improvements began to show good results there was established a postal money order system and special delivery section. Both of these systems became very popular. In the ordinary course of events it had usually taken from five to seven days to transport mail between the north and south sides of the island, so that it is needless to say the cutting of this length of time to less than two days met with the hearty approval of the general public.
The national telegraph service was another victim of the times, the lines having become in such poor state of repair that many relays were required, the personnel was poorly paid and unreliable, and the offices and their equipment were in such a dilapidated condition that the whole service was demoralized. In addition to this the offices were open for service but a few hours during the daytime only.
This, like the postal service, was filled with political appointees, some of whom never appeared at their office or place of employment. It can be readily seen that this service was an expense to the government, whereas it should have been a source of income. One of the first steps in the rehabilitation of this service was to eliminate the undesirable personnel, open all offices through the day, and all principal offices for twenty-four hours’ service, with a special rate for night messages, and to take drastic steps to repair the lines so as to eliminate the necessity of relaying messages. An index to the improvement in the service caused by the carrying out of the above items was the doubling of the receipts in 1918 over those of 1917.
Under the old telegraph tariff law, the same charge was made for any distance with no night service, which of course was quite primitive. A new tariff was established which was more systematic being based on the distance and class of message. These changes brought gratifying results.
Besides owning the telegraph lines the government also owned two radio stations. The larger of these stations was at Santo Domingo and was of an old and obsolete type. It was replaced by a modern installation purchased from the Bureau of Engineering of the Navy Department of the United States. A special agreement was entered into with the United States Navy Department, whereby a specially low rate would be charged for commercial traffic through this station.
The urban telephone systems throughout the country were privately owned, but there were no connections between any of these systems. They varied not only as to type, but as to value, efficiency, and adequacy. Due to the building of roads and opening up communication between cities and towns there would, of course, soon follow the connection by telephone. It was realized that it would be futile to attempt to connect the different systems then existent. In order to accomplish this when the time should appear, a law was passed authorizing the national telegraph service to take over and modernize these different urban systems when deemed advisable and to establish long distance telephone systems. The first step in this direction was made when the government purchased from its private owner the system of Santo Domingo City.
On January 1, 1919, the postal and telegraph services were combined under a director general of posts and telegraphs. By doing this both services came under one controlling agency and made possible the housing of both activities in the same office and under one administration in the different cities and towns, thereby eliminating much unnecessary expense.
The superintendent of telegraphs, a Dominican of prominence, made the following statement in his report of June 30, 1919:
I want to state with patriotic enthusiasm that the program of reform and improvements that is being carried out will bring this service to the high standard of efficiency being achieved by the most important countries.
Agriculture.—Agricultural activities outside of the sugar estates and a few plantations in the north of the island were quite limited, since there had been very little possibility or incentive for advanced or scientific farming. The small grower cultivated only what was necessary for his own particular use, because on nearly all occasions his harvest would be reaped either by some of the army or a band of marauders. Conditions were so unsettled that permanent extensive cultivation was not contemplated by any excepting those who were in a position to control such activity. As a consequence the agricultural branch of the department had little excuse for its existence. The laws had not been enforced and few people knew of the provisions of the laws or even of their existence.
The first definite steps toward the betterment of agricultural methods and the education of agriculturists were taken in June, 1917, when the system of extension work was inaugurated. This plan divided the country into agricultural districts where traveling instructors and demonstrators moved about giving instructions to farmers on methods of cultivation, draining, seeds, and so forth.
In the furtherance of this work experimental stations were established and a director of agriculture appointed.
A further considerable handicap to progress had been caused by the revolutions of former years when the man who had the least was really the best off because nobody molested him. The interest in the extension work was shown by the fact that during the first year there were approximately 350 conferences held throughout the republic, the attendance varying from 25 to 300 farmers. Due to the prevailing world conditions at that time it was considered of great importance that every effort be dedicated to the planting of food stuffs so as to make the republic independent in that matter.
To further the interest of farmers in the production of their crops and to instill a sense of competition in the quality of their production, exhibitions were held in different towns.
The country did not have a vagrancy law, but there was inaugurated under the extension law the policy to insist that idle country people put a definite amount of their land under cultivation, subject to the inspection of the instructor of the district. This plan met with considerable success.
In the placing of sub-experiment stations it was endeavored so to place them that the climatic conditions of no two would be the same. It was found that one site situated in the mountains was adaptable to the successful growing of northern plants. Among the products of the Dominican Republic which are of importance are cocoa, coffee, tobacco, sugar, cocoanut, honey, cotton, fruits, vegetables, and fiber crops. Practically the only forage crops grown are two kinds of grass and corn. The cotton which was free from boll weevil was protected from this pest by appropriate steps. Tobacco being one of the principal products, and one on which prosperity depended to a large extent and from which a great deal of revenue was derived, the value of peaceful and secure conditions which allowed greatly increased production of this plant can readily be seen.
Dominicans who had had the greatest amount of experience were appointed as assistants to the different extension workers. It was expected that these men would eventually be made instructors under this system and be given sections of their own.
On June 28, 1919, the corner stone of an agricultural college was laid at the main experimental station near Santo Domingo City.
The subject of agriculture was given a great deal of consideration by those particularly concerned. By others it was treated with more or less indifference. The Dominican Republic has great possibilities agriculturally, and, while mineral wealth may be discovered, thus far agriculture is the greatest source of riches in the country, and it is a sure one under stable conditions. An attempt was made to make this subject a familiar and popular one and to show the Dominican people how to raise larger, better and more varied crops, the proceeds of which would accrue to the Dominicans themselves and not go in a large measure to foreign corporations. It was introduced into the schools and, due to the fact that enthusiastic school children are excellent propagandists, it was felt that a great interest could be instilled in those at home. In the majority of agricultural districts there were established under the supervision of instructors demonstration fields which were worked in connection with the schools and by the school children.
The relationship between the experiment station and the extension workers was that the station determined the proper seeds and proper time in the year for planting, furnished seeds and necessary data while the men in the field used the above in carrying out their work. The extension workers also held meetings for the purpose of stimulating interest, exchanging ideas, and making people acquainted.
Finance and Commerce.—The general state of affairs existing in the early days of the occupation made necessary some very decided and early action in order not only to collect all revenues due the government, but to expend only such funds as were properly authorized for legitimate purposes and at the same time in no way to cause unnecessary fear of a deficit.
In the beginning of 1917 it was apparent that there was sufficient data on hand from which a new budget could be prepared, so that the 1916 budget was continued in force for another year. It is, of course, quite obvious that a great many sums covered in that budget were never expended during 1917.
Among other things accomplished were the appointing of a depository for the funds of the Dominican government; the transfer of the captain of the port from the department of war and marines to that of finance and commerce; the granting of permits for vessels flying the flag of foreign nations to engage in coastwise trade between Dominican ports in order to facilitate commerce; the establishment of a fidelity fund for the bonding of employees holding positions of responsibility and trust; the passing of laws regulating collections of consular fees; refunds of internal revenue taxes on goods exported, and collection of import taxes on alcohol and other articles; the enacting of a general revenue law, the provisions of which did not so much alter the tax rate as they did the methods of collection, this being a measure quite necessary in order to have a reasonable certainty that the money collected would reach the national treasury; the revision of the license law, thereby trebling the income from this source, which income was used solely for educational purposes and the passage of a law which, for the first time in the history of the country, placed a direct tax on property.
In some instances it was found desirable and necessary to replace Dominicans who held positions of trust by Americans. One case in point, was that of the collector of taxes on alcohol. When the Dominican holding this office resigned he stated that he could not, with his Dominican connections, withstand the pressure brought upon him to act illegally in the collection of taxes. He was relieved by an American with the result that within a very few days one distilling company was hailed before the courts and fined over $100,000 for keeping false records.
General Effect of the Military Government.—The general effect upon the country caused by the mere fact of the occupation and all the activities under the different departments can easily be imagined, especially if one had ever been present during the days of topsy-turvy conditions. The internal strife soon stopped; business improved and fairly boomed; agriculture became active not only on the larger estates but on the small farms of individuals who never before had attempted to plant a crop; schools were built and filled; roads and means of communications were opened up and improved, and there was a general atmosphere of increased activity.
The revenue of the country increased substantially as evidenced by the fact that when military government was proclaimed the provisional government had just borrowed several thousand dollars for daily needs, salaries had been unpaid for a considerable period, and a debt of several hundred thousand dollars had accumulated by overpayments on the budget. By January 1, 1918, all these back salaries had been paid, current salaries paid as they became due, the overpayments on the budget had been liquidated and $500,000 set aside for the first year’s expense of the guardia. Substantial sums were devoted to such matters as education, public health, maintenance of public works, and general projects for the benefit of the country and there then remained on hand about $1,500,000 unobligated.
As a comparison of the amount of internal revenue collected it can be noted that the collections for May, 1916, amounted to about $25,000 while those for June, 1917, amounted to over $125,000. This showing was due to the fact that the money collected was being turned into the treasury and into substantially increased business.
The customs collections, which had been under the supervision of American officers for some time increased due, to a large extent, to the confidence felt in the stability of conditions by reason of the presence of the military government, resulting in an increase of business. During the first month of military government (December, 1916), the customs collections amounted to about $420,000 and by June they had risen to $545,000, which up to that time was the largest ever made.
Such a showing as indicated by the increased receipt of revenue would have been impossible under the old conditions and illustrates the possibilities under conditions of tranquillity and economical administration.
As the republic became affected by the United States’ entry into the war, however, there was a falling off of the customs receipts, but this was offset by the continued increase in the amount of internal revenues collected, so that the government continued to be able to administer its affairs within its income and at the same time devote a great deal of money to general improvements. Among such further projects was the topographical and natural resource survey of the country for which the sum of $300,000 was set aside. This project was actually started in 1919, "the United States Geological Survey undertaking the work. The government also made provisions for loans to municipalities in order to encourage them to undertake public works which would improve living conditions of the people and add to their health, comfort, and convenience.
The following statistics are taken from the report of the general receiver of customs, for the thirteenth fiscal period:
The foreign trade of the republic during 1919 was the largest in the history of the receivership. Merchandise valued at over $20,000,000 was imported through the custom houses during the year, an increase over the preceding year of nearly $2,000,000.
Exports during the same period amounted to practically $40,000,000, the increase over 1918 being over $17,000,000, which clearly indicates increasing industry and progress and the healthy condition of the country.
The most gratifying feature of the increase in foreign commerce is the large balance of trade in favor of the republic amounting to over $17,500,000, nearly double that of 1916.
The conservative policy maintained resulted in the accumulation by the end of 1919 of a surplus from which it has been practicable to make special appropriations for public works totaling $3,270,203.97. These appropriations were for building of roads, schools, public buildings, and port improvements. If it is borne in mind that when the United States intervened the treasury balance showed a deficit of over $14,000 and current salaries and supply bills had been unpaid for six months the effect of the change in the management is quite clear. At the second Pan-American financial convention held in Washington, D.C., in 1920, the conference committee of the Dominican Republic composed of bankers, economists, and business men of large affairs, in its resolutions stated that from a study of reports and information supplied by the official delegation it had been established:
a) That the financial condition of the Dominican Republic as a result of the currency reforms and fiscal system described in the annex report is excellent and that the finances are established on a sound basis which will permit the further growth and development of the republic.
And Resolved that this committee takes pleasure in endorsing the policy heretofore and at present pursued in establishing currency reform and a fiscal system which has resulted in the present satisfactory financial growth of the republic and which will permit of the further growth and development of the public resources.
Note: The government of the Dominican Republic was turned back to a provisional government composed of Dominicans in October, 1922, in accordance with the plan which was mutually agreed upon by representatives of the government of the United States. The provisional government so inaugurated administered the offices until the regular elections were held, November, 1924, and a constitutional government was inaugurated.