this matter the act provides that both the insular and municipal governments shall have the power to borrow money for public improvements and other desirable public uses to an amount not in excess of seven per cent of the value of property of the island as assessed for purposes of taxation. The new government has found itself peculiarly fortunate as regards this matter. Not only did it find the island absolutely without any insular indebtedness, but the existence of the trust fund, consisting of the refund of customs duties, has enabled the government to carry on very important works of public improvement without having recourse to its public credit. This fund is now, however, nearly exhausted, and the advisability of floating a loan to continue the work of internal development is receiving serious consideration.

In the foregoing account of the insular government of Porto Rico we have been compelled to restrict ourselves pretty closely to a bare description of the system as created by the organic act and subsequently elaborated by the insular legislature. It has not been within our province to attempt to criticise the wisdom. of all the provisions that were made, although care has been taken to point out the significance of the more important features. In studying this system the query naturally arises as to whether the Porto Ricans themselves are satisfied with the provision that has been made for their government. To this there can be but one answer: they are not. The desires of the people are almost unanimously for a system under which governmental powers shall be more largely in

their hands. This takes the form of a demand either for the abolition of the executive council or that its membership shall be composed of persons elected by the inhabitants of the island, or that full territorial or statehood rights shall be conferred upon the island. These demands as an expression of the expectations of the people are perfectly legitimate ones. Nevertheless, the sentiment of those Americans who have had any opportunity to acquire a knowledge of the present political capacity of the people is equally unanimous that compliance with such demand at this time would be disastrous both to the cause of good government and to the best interests of the people themselves.

The problem that Congress had to meet when it framed the organic act-that of providing a system of government that should at once grant a maximum of local autonomy and at the same time make provision for sufficient central control-was an exceedingly difficult one. If it has erred, it has been in immediately granting too much rather than too little. Most Americans who have had any personal knowledge of conditions in Porto Rico since the inauguration of civil government will probably agree with the opinion of the first governor of the island, Hon. Charles H. Allen, as expressed by him in his first annual report submitted May 1, 1901, where he says: "I feel as the result of one year's close study on the spot, of all the conditions surrounding the problem, that Congress went quite as far as it could safely venture in the form of government already existing in the island, and as the result of such experience and observation,

I fully believe that with good men devoted to the work the island will develop faster under such form. Its people, through experience and education, will advance more rapidly in their knowledge of civic virtues under a guidance of present methods than could be gained in any other way. And I therefore feel that a departure from the present general form, except such minor modifications as experience will show from time to time to be wise and necessary, would be a grave mistake, and likely to be attended with considerable annoyance and anxiety. And I go a step farther to say that intelligent Americans fully acquainted with the situation, without regard to political affiliations, if interrogated, would stand as one man on the proposition that Congress had gone as far in the present form of government as it possibly could until experience and training have produced their results in a fuller knowledge of the duties and responsibilities of civil government on the part of the inhabitants."

CHAPTER V

GOVERNMENT OF PORTO RICO: LOCAL GOVERNMENT

Or the tasks going to make up the general problem of the government of dependent territory, there is probably none more interesting, certainly none more important, than that of the division of the territory into districts and the organization for each of a government through which local public affairs may be administered. The questions here involved are among the most intricate and difficult of solution in the whole field of government and administration, and the character of the action taken to meet them more than anything else determines the essential nature of the political institutions that the inhabitants of the territory are to enjoy.

Consistent with its policy in the past, Congress, in making provision for the government of Porto Rico, made no effort itself to work out a system of local government for the island, but instead turned over this whole question to the island itself. The obligation thus imposed upon it constituted the most important responsibility with which the newly created insular government was charged. Although Porto Rico at the time of its acquisition was in possession of a complete system of local government, the principles upon which this system was based, and especially the manner in

I fully believe that with good men devoted to the work the island will develop faster under such form. Its people, through experience and education, will advance more rapidly in their knowledge of civic virtues under a guidance of present methods than could be gained in any other way. And I therefore feel that a departure from the present general form, except such minor modifications as experience will show from time to time to be wise and necessary, would be a grave mistake, and likely to be attended with considerable annoyance and anxiety. And I go a step farther to say that intelligent Americans fully acquainted with the situation, without regard to political affiliations, if interrogated, would stand as one man on the proposition that Congress had gone as far in the present form of government as it possibly could until experience and training have produced their results in a fuller knowledge of the duties and responsibilities of civil government on the part of the inhabitants."