[Gift to Spain of unusable tobacco.] The fourth, fifth, and sixth classes, the greater part of which would before have been burnt, but which now form no inconsiderable portion of the total crop, are in the open markets positively unsaleable, and can be utilized only in the form of a bonus to Spain, which annually receives, under the title of atenciones a la peninsula, upwards of 100,000 cwt.  If the colony were not compelled to pay half the freight of these gifts, Spain would certainly ask to be relieved of these “marks of attention.”  Seeing that, according to the decision of the chief of the Government, the greater portion of this tobacco is of such inferior quality that it can find no purchaser at any price, it is impossible that its value should cover either the cost of carriage or the customs duty.  Moreover, this tobacco tribute is a great burden on the colonial budget; which, in spite of all deficits, is charged with the expenses attending the collection of the tobacco, its packing, its cost of local transport, and half the expense of its carriage to Europe.

[De La Gandara’s proposed reforms.] Dated in March, 1871,—­the beginning of a Golden Age, if De La Gandara’s plans had been carried out and his expectations realized,—­there exists an excellent statement from the Intendant-General addressed to the Minister of Colonies pointing out plainly to the chief of the Government the disadvantages arising from this mode of administration, and urging the immediate repeal of the monopoly.  In the next place proof was adduced, supported by official vouchers, that the profits derived from the tobacco monopoly were much smaller than usual.  The total average receipts of the tobacco administration for the five years 1855 to 1869, according to official accounts, amounted to $5,367,262; for the years 1866 to 1870, only $5,240,935.  The expenses cannot be accurately estimated, inasmuch as there are no strict accounts obtainable; if, however, the respective expenses charged in the colonial budget are added together, they amount to $3,717,322 of which $1,812,250 is for purchase of raw tobacco.

[Slight real profit from monopoly.] Besides these expenses pertaining exclusively to the tobacco administration there are still many other different items to be taken into account; yet the cost incurred in this branch of the service would be saved, if not altogether, at least largely, if the State surrendered the tobacco monopoly.  The total of the disbursements must certainly, at the very lowest, be estimated at $4,000,000; so, therefore, the State receives only a net profit of $1,357,000; but even this is not to be reckoned on in the future, for if the Government does not speedily cease carrying on this trade, they will be forced into a very considerable and unavoidable expense.  To begin with, they must erect new factories and warehouses; better machinery must be bought; wages will have to be considerably increased; and, above all, means must be devised to pay off the enormous sum of $1,600,000 in which the Government is indebted to the peasants for the crops of 1869 and 1870, and to assure cash payments for future harvests.  “This is the only possible mode of preventing the decay of the tobacco cultivation in the different provinces, as well as relieving the misery of the wretched inhabitants.”