probably have sufficed to keep Cuba under the flag of Spain.

The restrictions on the commerce of the Island began with the royal decree of 1497, which granted to the port of Seville the conclusive privilege of trade with the colonies, these being prohibited from any commercial intercourse with any foreign countries. In 1707 this monopoly was transferred from Seville to the port of Cadiz. While it was the capital of the Island, Santiago was the sole port of entry, and after Habana became the capital, all shipments passed through it. This restricted traffic between Spain and its insular colony was jealously guarded. Trading vessels were required to assemble in flotas, or fleets, and to make the double voyage under the escort of war-ships. This arrangement was designed hardly as much for protection as for the prevention of illicit dealings with the intermediate countries. During certain periods trade with foreigners was prohibited under the most severe penalties, and it was never permissible except by special authorization. Commercial intercourse between the colonies was even forbidden. With the exception of a brief term, during which the English occupied the Island, these hampering con

ditions obtained until 1778, when Habana was opened to free trade. The decree authorized traffic between several ports of Cuba. Others were included in this privilege, from time to time, until, in 1803, practically all the ports of the Island enjoyed it.

For two hundred years or more, such action upon the part of the sovereign government was looked upon by all nations as good policy. In 1714 Spain and the Dutch Confederation effected a convention by the terms of which each party was bound to refrain from every form of trade with the American possessions of the other. A similar agreement was reached between England and Spain about fifty years later. Towards the close of the eighteenth century, however, these treaties were abrogated and a royal cedula set forth that no foreign ship should be allowed to enter a Cuban port under any conditions.

The peninsular war reduced the trade of Cuba to such an extent that the Ayuntamiento and the Consulado of Habana seriously debated the expediency of throwing the port entirely open and admitting foreign goods on a parity with those of the home country. In consideration of the emergency the restraints on trade

were substantially released during the first decade of the nineteenth century. Shortly afterwards, the Government sought to reëstablish them, but was induced to refrain by the protestations of Captain-General Marques de Someruelos, who made a forcible representation of the economic necessities of the colony and the impossibility of their being met under the restricting policy.

The least concession was wrung from the Council of the Indies with the utmost difficulty. They remained convinced that the limitations of the commerce of the colonies to the mother country was the best course for the latter, at least, and secured a virtual resumption of the condition by indirect means. By excessive duties, discriminating tariffs, and the heavy port dues, foreign trade was placed at such a great disadvantage that the Cubans, although ostensibly free in the matter, found themselves again restricted for the most part to commerce with Spain.

The first tariff of Cuba, enforced in 1818, imposed a duty of forty-three per cent. ad valorem on all foreign merchandise, except agricultural implements and machinery, which were taxed twenty-six and one-half per cent. These