than 76 per cent. Obviously, the borrowing capacity of Cuban real estate
had been exhausted. During the war, with the impairment of industry
which then prevailed, it was impossible for farmers to pay off their
mortgages, and accordingly the Spanish government, in May, 1896, decreed
that all mortgages then maturing should be extended for a year, during
which time all legal steps for collection of them should be halted. In
Oriente and Camaguey, however, the grace thus granted was for only a
month. Successive extensions of the grace carried it to April, 1899,
when the American administration was in control. A final extension was
then granted, to April, 1901.

Still another problem, and one which proved peculiarly embarrassing, was
that of local or municipal government. The island was divided into six
provinces, thirty-one judicial districts, and one hundred and thirty-two
municipalities, and these last named were each divided into
sub-districts and these again into wards. These all had their local
officials and local systems of finance, and these latter were found by
the Americans to be in serious confusion. It was necessary to reform
them, but in the doing of this almost endless friction arose. Such
matters so closely touched the Cuban people that they were naturally
jealous and resentful of alien interference and dictation. At the same
time the Americans considered it necessary to supervise the
reorganization of local government as a basis for satisfactory general
government. Each side became more or less irritated against the other,
with unfortunate results.

An interesting personal factor at this time, whose influence was on the
whole helpful to the American government, was found in General Maximo
Gomez. There is no question that he felt himself somewhat ill-treated by
the Americans, as Calixto Garcia had felt at the surrender of Santiago.
During the first month of the American rule at the capital he held
aloof, remaining at his home at Remedios. But in February he came to
Havana and had such a reception as probably no other man in Cuban
history had ever enjoyed. From Remedios to Havana he proceeded through
an almost unbroken series of popular demonstrations of the most
enthusiastic kind, and at the capital he was greeted as a conquering
hero and as the unrivalled idol of the people whose independence he had
won. The only discordant note came from a small body of politicians
identified with that Assembly which both G