UNN-5

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMIENT M r--;, -?,

- 11 1~~~~, \'v' ., ., ,r-ECONOMC DEPARTMNT

SUMARYREPRTON THE

DOMINICAN REPUBLIC

R.A. WightOctober 1948

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Conclusions ... ,.,,,,,...,,..,,ee,e,,,.,, i

I. Geography and Climate ,....-..........

II, Population oe0e.. ... .00.,,..@000- *** .. 2

III, History and Goverment *.,.*......,.**.,,,. 2

IV, General Structure of the Dominican Economy.., 3

V. Agriculture .... o..**ooOoeoe ooeee.oo D 5

VI. Forestry and Fisheries ............ ee..ee oe 7

VII. Mining .. o . . * . .o . . *oOO0e.... 0 0000900 8

VIIIo Industry ........eee.ooe,.* **.0.* ee o* 8

IX, Transport ...... **...*..* ...... 11

X. Foreign Trade . @0 @.**@..@..... 12

XI, External Finance ,, e....ec.e**o 14

XIIo Internal Finance *o eooeC c 15

STATISTICAL APPENDICES

I. Geography .. *.....e.*e. ..e..e.*. 18

II* Population *19.**.***.- 9

III, History and Government *.,e.,e..ooo....e 20

IV, National Income ,ooo,..o,....O,,,....oC 21

V. Agriculture . . .G e .e .e 0coeeoeGee 22

VI, Forestry and Flisheries *.O.,.............. 23

VII, Minerals .@*O*ee09 .0OO.0@OOO0#qO.O* 24

Conttd,

1C. Transport and Communication*.#o*a*,*X* 27

X. Foreign Trade *e,,a.e.o.,es;oeeeoeeO 29

XI. External Finance .................... * 32

XII. Internal Finance ......* ........................ 35

XIII, Prices ... . .. . ..................¢¢ hX *v ee *e 41

ESSENTIAL,STATISTI06

Item Date Unit Amount

Area 1948 Sq. mi 19,332

Population 1946 - 2,089,)00

Parity of Currency 1948 IRD peso US $1.00

National Income 1940 per capita US $42.00

t 1947 80 tt SOQo

Exports 1947 millions US $83e2

Imports 1947 48 7

Foreign Exchange Reserves 1937 5.8

t t 1947 II 37,2

External Debt 1946 11.9

1947 1.3

Internal Debt 1946 1,0

1947 tl 10,2

Government Revenues 1947 5504

Government Expenditures 1947 73.2

Wholes,le Prices 1941 Indxt 100

11 tl 1947 it 289

SUGAR COTTON

DYEWODSSANTIAGO 43-

SUGR -/ iI~~ PINEAPPLE ORADES

CATECATTLE LOGGING

fA(PINEPLOGING CFE AA

SUGAR COFFEE DSUGAR MILLS CAOMEAT 0

CACAO PACKING'

COFFEE

I BANANAS

ALL SYMBOLS COPYRIGHTED BY PICTOGRAPH CORPORATION AND QUARRIE CORPORATION

CONCLUSIONS

1, Since 1930 the Dominican Republic has experienced a form of

political stahility under President Rafael T-rujilloo There is every

prospect that Trujillo will, if he remains in good health, continue to

maintain political stability in the Dominican Republic for some years to

come. Of late, however, there has been some organized opposition to his

dictatorship from groups in neighboring countries, notably Cuba and

Venezuela.

2, The Dominican economy is dependent on the exportation of a few

agricultural products, chiefly sugar, tobacco, coffee and cacao. Control

of the economy is concentrated in two groups: foreign investors (princi-

pally U.S.) and officials of the government or their families. The distri-

bution of income is uneven, with a relatively small number of people re-

ceiving a large share of the national income. The standard of living of

the majority is very low.

3. As a result of war and post-.rwar conditions, the Dominican economy

has been unusually prosperous for several years. As these conditions

change and world pr3duction of sugar and other commodities resames a more

normal pattern, the outlook for the Dominican Republic may become less promis-

ing. There are already indications that exports have reached a peak and are

turning downwards*

4, The government- is fostering policies of agricultural diversifi-

cation and industrialization, which in general appear to be scundly con-

ceived, and may help to offset any future declines in sugar and tobacco trade.

Industrialization, however, will necessarily be limited to a few

small enterprises based on 2ocally produced raw materials.

5. The financial position of the Dominican Republic is strong,

both internally and externally. It is uncertain, however, whether future

conditions will permit the Dominican Republic to maintain this position

or whether the conservative fiscal and credit policies of the past will

be continued. In view of the relatively large dollar holdings which

have accumulated, the country should be able to adjust itself to any im.

pending economic changes without serious dLslocations to its economy. It

remains to be seen, however, whether the Dominican Republic will adopt

policies designed to maintain a sound financial position or whether, with

ito newly gaLned financial indapendence, it will encourage inflationary

forces which would accelerate financial deterioration,

6, Among the development possibilities in the Dominican Republic which

may merit consideration,after appropriate further investigation, are:

(a) Expansion of the agricultural land under cultivation and in-

tensification of agricultural production through mechanization and

irrigation.

(b) Expansion of the lumber industry with adequate conservation

safeguards.

(c) Road construction and improvemiient, necessary in existing as

well as potential agricultural and forest areas,

(d) Development of fisheries and fish processing plants.

(e) Electric power development on a moderate scale,

(f) Development of coastwise shipping.

PRELIMINARY REPORT ON THE

DOMINICAN REPUTBLIC

I* GEOGRAPHY AND CLIMTE

The Dominican Republic occupies the eastern two-third.s of the

island of Hispaniola, tLe othe:r one-third constituting the Republic of

Haiti. With an area of 19,332 square miles, it is one of the smallest

of the Latin American republics.

Four parallel mountain ranges cross the country from east to

west. Between these ranges are agricultural valleys, some of which are

extremely fertileo

Although the Dominican Republic lied wholly within the torrid

zone, the mountain ranges and trade winds give it a varied climate, The

annual average temperature ranges between 630 and 920 F, Rainfall is

generally abundant, ranging from 47 to 92 inches per annum. About two-

thirds of the total rainfall comes between May and November. The western

part of the country is semi-arid, with a rainfall of 29 inches concen-

trated between May and October; this is a fertile area, however, and re-

sponds readily to irrigation.

Approximately 39% of the area of the country constitutes register-

ed agricultural land; the area under cultivation has been increasing

steadily during the past several years,

2-

IIo POPULATION

The population of the Dominican Republic, now about 2,000,000.,

has more than doubled since the first census was taken in 1921, Racially

approxdma>-ely 68% of the people are mestizos or mulattoes, 19% negroes, and

13% white. The illiteracy rate is estimated at about 75%, The people are

predominantly rural and dependent on agriculture, only 15% living in cities

and only 5% engaged in manufacturing. The largest city, Ciudad Trujillo,

has a population of only 90,0CQ and all the other "cities" are less than

half as large.

With 108 inhabitants per square mile, the Dominican Republic has

one of the highest population densities in Latin America, although it is

considerably lower than in adjoining Haiti. Despite its high population

density, the Dominican Republic has been one of the few Latin American

countries to accept refugee immigration.

The relatively large and growing population and high illiteracy

rate suggest the need for improved educational facilities and agricultural

production methods.

IIIa HISTORY AND G0VERNMENT

The Dominican Republic has been variously under Spanish, French,

Haitian, and U.S. domination, Independence was declared in 1821, but the

country was conquered by Haiti in 1822 and did not regain its independence

until 1844, From 1861 to 1863 the country voluntarily became a Spanish

colony again. Following a series of unstable governments and consequent

threats to its sovereignty by European powers, the Dominican Republic signed

an agreement with the U.S. in 1905 providing for an American Collector of

*3

Customs. A military government was declared by the U.S. in 1916, but armed

forces were withdrawn in 1924 and the customs receivership was abandoned in

1941.

Nominally a democratic republic, under a constitution proclaimed in

1934, the Dominican Republic has been ruled by a dictator., Rafael Trujillo,

since 1930,

During the past year there has been considerable uneasiness, either

real or pretended, on the part of President Trujillo over alleged plots and

invasion preparations against his country, reportedly emanating from Cuba,

Venezuela, and other places. Ostensibly in defense against these alleged

threats, the Dominican Republic has been strengthening its army of some

5,000 men and building up its air :force,

Military expenditures represent one of the major items in the

Dominican government. Recently one B-17 and 8 smaller bombers were acquired.

These actions by Trujillo may well stimulate counter-preparations by his

supposed enemies.

There have also been reports of "subversive" activities within the

Dominican Republic, but the best available evidence indicates that Trujillo

continues to be in fuLlI control of the internal situation, Some 300 persons

are said to have been jailed recently for political reasons,

IV, GENERAL STRTR OTHE DOMINICAN ECONOMY

The Dominican economy is predominantly agricultural. There is

virtually no mining,and manufacturing,. although increasing, is relatively

insignificant. The country is dependent on a few agricultural cropsp the most

important of which is sugar.

Control of the wealth and the means of production in the

Dominican Republic is rather heavily concentrated in two small groups:

(a) foreign investors (chiefly U.S.), who own the sugar plantations and

are active in other fields, and (b) government officials and their

families, who dominate the principal manufacturing and trade activities

and also own large farming regions,

Partly as a result of this concentration, import requirements

are not as high as they might otherwise be; in consequence the foreign

trade position and financial situation of the country have been favorable

and strong, although the standard cf living has remained low. NTational

income has been roughly estimated to have increased from $42 in 1940 to

$80 per capita in 1947. The cost of living has also doubled over the

same period. About 60% of the total national income is derived from agri-

culture.

Development plans drawn up by the Government include: (a) a 100%

increase in land under cultivation, improved agricultural methods, and

corresponding increases in agricultural production, especially of cotton,

corn, rice, beans, potatoes (local consumption crops), tobacco and bananas

(for export) and livestock; (b) construction of new irrigation canals to

increase the areas under irrigation some 200%; improvement of transportation

facilities; hydro-electric power projects; expansion of manufacturing in in-

dustries based on locally produced raw materials, such as cement, textiles,

ceramics, fish packing, dairy and fruit products. At the present time special

efforts are being made to expand banana production, and it is estimated that

this program will require investments by the United Fruit Company, and other

organizations amounting to more than $33,000,000 over the next several years.

5-

V. AGRICULTURE

Like most of the small Caribbean countries, the Dominican Republic

produces a few tropical comodities for export (slugar, tobacco, coffee, cacao)

and the usual products for domestic consumption (rice, beans, corn, plantains,

tubers).

Approximately 1,200,000 hectares, or 39% of the total area of the

country, are farmed or used as pasture. In 1935 the land under cultivation

was only 33% of he national area and in 1920 only about 16% of the land was

devoted to agriculture. It is estimated that slfficient good land remains to doable

the area now cultivated and in pasture, About 240% of the existing registered

agricultural land is devoted to the 4 chief export crops, 36% to pasture, and 40,%

to local food crops.

Prior to l890 tobacco and coffee were the chief export crops of the

Dominican Republic, Subsequently, for several years, cacao was the main crop,

but it in turn yielded to sugar about 1914, Since that time sugar has been the

dominant export crop, accounting for from 40% to 60% of total exports. In recent

years production of coffee, and especially tobacco, have increased at a greater

rate than sugar. Cacao production declined,,for several years,but increased sharply

in 1947.

One of the most significant developments in the agriculture of the

Dominican Republic has been the sharp increase in the production of rice, a basic

food staple of the people. For many years rice was the largest single import,

In 1929 over $0% of the rice consumed was imported. By 1941 production substantial-

ly exceeded local consumption and rice was exported. This program, fostered by

the government, helped to improve the peoplest diet and at the same time favorably

affected the countryts balance of payments,

As a part of the agricultural development program, the govern-

ment has undertaken several irrigation projects, increasing the irrigated

land from 14,000 to 40,000 hectares.

Efforts are also being made to increase livestock production and

improve breeding, feeding and processing methods. In 1941, six breeding

stations were established by the government, and small slaughter houses have

been built. This program has increased local con5umption of meat and per-

mitted exports of livestock and meat valued at almost $1,000,000 in 1946,

Another important government program, designed to stimulate agri-

cultural production, has been the establishment of "national agricultural

colonies"1 on new lands opened up for settlement by both native and immi-

grant farmers, By 1947 there were 40 colonies established, covering 80,000

hectares, with almost 10,000 colonists,

The financial aspects of agricultural production have been im-

proved by the creation in 1945 of a Mortgage and Agricultural Bank, which

had loans of $2,500,000 outstanding in 1947.

In general the agricultural policy of the Dominican Republic seemsto

to be/stimuilate the production of crops required for local consumption and

to lessenthe countryls dependence on sugar exports by increasing other ex-

port crops such as tobacco and bananas, This would seem to be rather sound

policy, and considerable progress in this direction has already been achieved.

- 7.

VI, FORESTRY ANDFISHERIE.

The forest resources of the country are fairly extensive but

the best and most accessible stands of timber have already been cut. Pine

and cedar forests comprise 22% of the total area of the repuLblic, but in-

adequate transportation limits further exploitation. Hardwoods such as

mahogany and lignumvitae are produced and exported in small quantities

but accessible stands are almost exhausted, In recent years several con-

servation measures have been adopted to prevent total destruction of acces-

sible areas. These conservation measures, together with a road building

program could stimulate development of an important but largely untapped

resource,

There is no fishing industry worthy of the name in the Dominican

Republic. The annual catch of the primitive and small-scale fishing activi-

ty which Is carried out amounts to only a half a pound per capita.

Dominican waters abound in commercial types of fish but this valuable re-

source has hardly been touched. In this respect the situation in the

Dominican Republic is the same as in almost all the Latin American republics,

VII* MINING

Irsignificant amounts of gold are mined from placers by individu-

al prospectors. The only other mining activities a-re the governme-nt-owned

salt and gypsum mines which supply local needs and small surpluses for ex-

ports. U.S. companies hold concessions for petroleum and bauxite development

and have etngaged in exploratory work; no favorable results have been reported.

Vyi, INDUSTR,

Manufacturing in the Dominican Republic accounts for only about

11% of the national income and only about 5% of the people are dependent on

-.g

it for a livelihood, but its importance is increasing. The government

follows a very liberal policy towards foreign investment and has sponsored

a number of manufacturing activities itself, Industries in the Dominican

Republic are concerned primarily with the processing of foodstuffs and other

local agricultural products. The principal industries in this group are:

sugar, rum, alcohol, starch, cigarettes and cigars, peanut oil, textiles,

meat products, leather, beer, and soft drinks. Other enterprises produce a

variety of consumer goods for the domestic market, There are no heavy in-

dustries. The principal obstacles to industrialization have been the low

purchasing power of the Dominican people, lack of capital, the shortage of

skilled technicians and workers trained in factory work, lack of domestic

fuel resources, and inadequate transportation facilities.

Capital invested in industry increased from $62 million in 1937

to $75 million in 1941, $98 million in 1947 and an estimated $125 million in

1948, The large increases in recent years are probably a result of the

government's liberal attitude toward foreign capital, in contrast to the

numerous restrictions and limitations in most other Latin American countries,

By far the largest investment is in sugar milling and refining. Second in

importance from the standpoint of capital invested is electric power.

U,.S. capital represents 85% of the total invested in industry,

Dominican capital, 12%.

During recent years the government bas sponsored a number of new

factories, principally a textile mill, a cement plant and a relatively large

modern meat packing plant. The government has also sponsored salt, s3hoe,

tobacco, match lumber, peanvt'k oil, bag and cordage manufacturing enterprises,

m9

and hotels. It is widely alleged that most of these enterprises, which

enjoy a quasi-monopolistic status through tax exemptions, etc., are

owned by President Trujillo or his relatives and trusted associates.

Another new industry, established in 1946, was a $2 million cacao

processing factory.

The government has signed a contract with the U.S.-owned Santo

Domingo Electric Company for the construction of a hydro-electric plant at

the Jimenoa River waterfalls* This project, to cost $2 million., will have

an autput of 12,000 kw.

The Dominican Republic is a country of limited resources for

manufacturing industries, andl the rate of development must of necessity be

moderate, at least for a number of y,:xrs. Domestic and nearby foreign

markets are limited by low per capita income, the labor supply is largely

unskilled, domestic resources of capital are insufficient, transportation

facilities are inadequate, and the cost of power and fuel is high, Perhaps

the most basic factor is the low purchasing power of the Dominican peaplee

Satisfactory progress of manufacturing industries depends on an ever-widen-

ing market for their products.

- 10 -

One of the principal means of broadening the market for manufactures in

the Dominican Republic is by increasing the productivity, and, thereby,

the purchasing power, of those people who are engaged in agriculture.

The sugar industry, of course, will face problems peculiar to

itself. Not only is the processing of sugarcane the countryts leading

industry, but it is also virtually the only one dependent on foreign

markers, For many years before World War II, markets for Dominican sugar

were increasingly limited by the attempts of the major consuming countries

to achieve a high degree of self-sufficiency. After experiencing a critical

period of market dislocations, the Republic launched its sugar-defense

program in 1937. During the war, however, the Dominican sugar industry was

highly prosperous, chiefly because of the high prices received for exports

of sugar. This favorable situation may continue for some time. Restoration

of cane-sugar production in the Far East and of beet-sugar production in

Europe may be relatively slow, For at least a few years, therefore, the

Dominican Republic may be able to sell more sugar than it did before the war,

and at even higher prices. On the other hand, once the production of sugar

in the war-devastated areas is restored, the problem of finding markets will

again rise, and trade barriers may again play a conspicuous role in world

markets. The Dominican Republic then can scarcely expect the highly remuner-

ative prices for sugar received during the war, and, as in the past, pro-

duction and marketing controls may become necessary.

SX. TRANS ORT

As in many other Latin American countries, inadequate transpor-

tation facilities have retarded the economic development of the Dominican

Republic. The only common carrier railroad in the country is a 152-mile,

narrow gauge, goverment-operated line on the north coast, / No railroads

operate into or near the capital city. The sugar plantations operate 610

miles of private railroads.

The major part of the internal transportation in the Dominican

Republic depends on highways and trucks. Although there are over 3,000

miles of highways, only 500 miles are surfaced and only 1,500 miles are

suitable for all weather use by automobiles. Even the main highwqays are

reported to be in a bad state of repair, with the result that motor vehicles

are subject to severe wear. Despite the paramount importance of highway

transport there are only 2,500 motor vehicles in the Dominican Republic 9/.

A large part of the transport volume is in fact handled by 10,000 primitive

animal-drawn vehicles.

Many parts of the Dominican Republic could be economically served

by coastwise shit,ping but this means of transport has never been adequately

developed and is of even less importance than the short railroad.

Local air service is provided by a subsidiary of Pan American

Airways. Air transport is limited chiefly to passenger traffic, A large, new

airport was completed in 1943.

g/ This railroad was taken over from its former British owners in 1939,

/ It is interesting to note that Costa Rica, which has less than half thepopulation and only 1/3 as many miles of highways, has almobt 6,000motor vehicles,

-12-

One of the major projects of the government is port improvement.

In 1946 about $5 million was expended on the port of Ciudad Tru.jillo for

docks, a breakwater, dredging, warehouses, etc. Ciudad Trujillo is now one

of the best equipped ports in the Caribbean area. Similar port improvements

are being undertaken at Macoris ($5 million) and at Plata ($2 million). A

new port, Libertador, has recen7vly been built by the United Fruit Company

for its banana operations.

These port improvements have no doubt been of considerable economic

importance to the countryt s foreign trade. They could also benefit internal

transport if coastvise shipping were to be expanded and efficiently organized.

In view of the primary significance of highway transport in the

Dominican Republic it is probable that the most useful program in the field of

transport would be the surfaciu.g and maintenance of existing roads. There is

less need for building entirely new highways, especially if the existing ones

cannot be properly maintained,

X, FOREIGN TRADE

Although the export trade of the Dominican Republic is centered

on fouLr agricultural commodities, it is nevertheless more diversified than in

most of the other Caribbean countries.

By far the most important export is sugar and sugar products, which

accounted for 65% of total exports in 1947 and 63% in 1938. For several years

tobacco was second in importance, increasing from 3% of total exports in 1938

to 14% in 1946, In 1947, however, tobacco exports declined sharply, (to 5.4% of

total exports) due to the dollar shortage in Europe. The loss of tobacco markets

in 1947 was more than offset, however, by increases in cacao exports, which

amounted to 16% of the total, as compared with only 7% in 1946, Coffee has main-

tained a relatively stable position in the composition of Dominican exports,

- 13 .

fluctuating around 6% to 8% of the total.

The United Kingdom is the principal market for Dominican exports,

especially raw sugar. Tobacco is sold chiefly to continental Europe. The U.S.

buys the major part of the molasses, coffee and cacao, Total exports in 1947

were $83.2 million and total imports amounted to $48.7 million,

The United State8s is the principal source of Dominican imports,

supplying 80% of the total in 1945, as co}mpared with only 54% in 1938, Textiles,

machinery, chemicals, steel and wheat are the principal imports.

During the past ten years the Dominican Ropublic has had an increas-

ingly favorable balance of trade. In 1945 a:id 1946 imports were only about

40% as great as exports, but the import ratio has increased sharply in 1947

and 1948, Imports in 1947 were 59% as large as exports, In 1948 the per-

centage will be even higher, for exports (through July) have declined from

the 1947 levels, while imports have increased. In view of world conditions in

sugar and tobaccos.and the dollar shortage in Europe, the principal market for

these Dominican products, it is quite possible that the foreign trade position

of the country may deteriorate over the next few years. A trend in this

direction is already noticeable in 1948,

XI. E~XTERN-AL FINANCE

As a result of the Dominican Republic's strong trade position

and in spite of large payments for services., interest,, and dividends, the

balance of payments has been favorable and substantial reserves of gold

and dollars,amounting to $38.2 million in July 1948, have been built up.

In 1938 reserves were only $7.3 million. There was a sizeable decline in

reserves in 1947 due in part to the complete amortization of the foreign

debt.

The Dominican peso is officially valued at $1.00 and there is no

unofficial rate. Prior to 1947 there was no local currency; the U.S. dollar

was the legal tender,

In 1930 the foreign debt of the Dominican Republic, consisting

of dollar bonds issued in 1922-26,, amounted to $20 million. During the

following years interest payments were met regularly and amortization pay-

ments irregularly. The total amount outstanding in 1947, $9.3 million , was

paid off in July of that year. Thus the only existing foreign debt is the

1940 Eximbank loan, on which the balance outstanding in 1947 was $1.3 mil-

lion.

While the Dominican Republic hias a very favorable external

financial position, both with respect to foreign exchange reserves and

long-term debt, the present trend toward declining exports and increasing

imports suggests that this position may become less satisfactory during the

next few years. Dollar reserves are high enough, however, to give the

15 -

country time to make adjustments in its foreign trade which may be

necessary if the present favorable position is to be maintained. One

step in this direction, now being undertaken, is the establishment of a

sizeable banana export trade.

XII, INTERNAL FINANCE

Government expenditures have increased sharply in recent years,

but until 1947 the budget was generally balanced. In 1947 there was a

large deficit, partly as a result of the payment of the foreign debt. Ex-

penditures in 1947 were $73 million, as compared with receipts of $55

million, necessitating internal bank loans of $16 million, The internal

debt at the end of 1947 was $10.2 million as compared with $1.0 million in

previous years, the increase being equivalent to the decrease in the foreign

debt.

Receipts are derived mainly from duties and taxes on imports and

taxes on exports. There is no income tax, The fiscal burden is heavy by

Latin American standards amounting to 25% of estimated national income,

The principal cla.sses of expenditure have been public works

(irrigation, colonization, port improvement), military and police, and the

public debt. During the past year military expenditures have probably been

considerably increased.

In 1947 a new monetary law was passed establishing a government-

owned central bank and a national currency. As of December 31, 1947, 12,3

million pesos of new currency had been issued and this was backed by gold and foreign

exchange holdings of the central bank amounting to $13.6 million, At the samemillion

time there were still $12.1/in U.S. currency in the country (in addition to the

. 16 .

central bank holdings).

There are 4 commercial banks in the country. By far the largest

is the government-owned Banco de Reservos de la Republica Dominicana, with

deposits of $29.6 million. The Banco Agricola e Hipotecario is also govern-

ment-owned. The other two banks are the Royal Bank of Canada and the Bank of

Nova Scotia,

The average comuercial bank loan interest rate is 10%. Real

estate loans are made chiefly by private money lenders at 1% per month,

The monetary supply (both currency and deposits) have increased 10-

fold since 1938, as a result of balance of payment surpluses. Some. credit

expansion also took place, but on a moderate scale, and in 1947 bank loans

were less than 20% of deposits. Inflation has been less severe in the

Dominican Republic than in many of the Latin American republics due to more

conservative fiscal policies and relatively smaller special foreign invest-

ments for war-time projects. From 1941 to 1947 wholesale prices increased

189% and the cost of living 127%.

In the past the Dominican Republic, using dollar currency, has

submitted to drastic deflation when exports have fallen. Now that the country

has its own monetary system, there will be pressure to lirfit any possible

impending deflation through liberal credit and fiscal policies. Just how the

country will react to these eventualities cannot be accurately foreseen but

there is no doubt that the temptation to abandon the conservative credit and

fiscal policies of the past will be great if deflationary forces threaten to

reduce incomes and prices.

17 -

In view of the new money and banking system, the end of

foreign control over government finances, and the absence of foreign debt

obligations, it would perhaps be unwise to regard the past financial

policy and performance of the Dominican Republic as an indication of fu-

ture actions,

- 18

I* GEOGRAPHY

1. Location: Lat, 200Long. 700

Together with Haiti, the Dominican Republic forms the island of

Hispaniola, located in the Caribbean between Cuba on the west and Puerto Rico

on the east.

2. Area and Top2&rphy

Area: 19,332 sq. tE. (2/3 of Hispaniola island)

Length: 240 mi.

Width (max.) 170 mi.

Coast line: 1,000 mi.

Mountains: 4 ranges, running east to west.

Highest mt.: 10,300 ft. (highest in West Indies).

Registered Agricultural Lands: 38.8% of total area

Principal Agricultural Area: Cibao Valley, between the 2 principal ranges,length 150 ml., width 1O to 30 mi.

3, Climate

Temperature: Annual rEnge 630°920 FAnnual avrerage 780 F

Rainy season: May - November

Arid region: westerm third of country

Sources: "Dominican Republic", PAU, 1945

19

II* POLTION

1. Total: 2,089,000 (1946 official estimate)Density: 108 per sq. mi. (one of the highest in Latin America)

2. Racial composition:

Mestizos and mulattoes 67.5%Negros 19o,4%Whites 13.1%

100*0%

3. Rural Population: 85%Urban Population: 15%

100%

4. rinlCt Pop2lation

Ciudad Trujillo 90,000Santiago de los Caballeros 40,000San Pedro de Macoris 19,000Puerto Plata 12,000La Romana 11,000

5. E 3hLoyment in PrineiIstries,19

IndutI Persons,EMploZed

Food and beverageDs 7,100Textiles 1,119Forest Products 1,44Leather Products 1,408Others 3,129

Total employed in industry 149200

6* Population dependent on agriculture: 80%n n manuffacturing 5%

Other 15%

100%

Sources: "International Reference Service", U.S. Dept* of Commerce, 1947

"Mining and Manufacturing in the Dominican Republic"t , U.S. TariffComnisl3ion, 1948

"Coxmmercial Travellers' Guide to Latin America", U.S. Dept. ofCommerce.

"Information Please Almanac"t , 1948.

20 *

III, HISTORY AND GOVERNMENT

1. Hior

1492: discovered by Columbus

1795: ceded by Spain to France

1801: conquered by Haiti

1806: re-conquered by Spain

1821: independence declared

1822: conquered by Haiti

1844: Republic

1861: Spanish colony

1865: Republic

1915-24: occupied by U.S. Navy

1930-48: Trujillo dictatorship

Source: "History of Latin America", Wilgus and ILEca

2. Government

Form: Republican

President: Rafael Trujillo

Senate: 19 senators

House: 40 Deputies

Political Party: Partido Dominicano

Source: Political Handbook of the World.

21 -

IV. NATIONAL TNCOE

TABIE I

Total and Per Ca2ita National Income

(estimated)

Millions of Dollars perUS Dollars Capita

194.0 704 42

1943 9040 51

1947 / 160.0

TABIE II.

Distribution of National Income 1940/(estimated)

lillions of PercentageUS Dollars Distribution

Agriculture 41.4 58.9Manufacturing 7.8 11.1Government 740 9.9Trade and service 9.0 l2.8

Transportation and communication 1.5 2.1Electric light and power 0.5 0,7Construction O.8 1.1Forestry, fisheries, and mining 0.9 1.3Finance 1.5 2.1

Total 704 100.0

/ Brookings Institution, "Refugee Settlement in the Dominican Republictt, 1942(E. Goodwin).

/ D)efense Supplies Corp., RFC, "Air Transport in Latin America", 1944 (R.A. Wight).

" "Initial Par Value: Dominican Republict", 19V8 (J.F. Noyola)

- 22

V. AGRICULTU.IE

TABLE I

Principal Cropls: Area Cultivated and Volume of Production

1939 1946

Hectares Tons Hectares Tons

Cultivated Produced Cultivated Produced

__ (ooAL (aD-

Exoort Crs

Sugar 108 425 90 459

Coffee 67 20 65 20

Cacao 76 30 60 25

Tobacco 10 10 26 28

Consumton Crops

Plantains and Bananas 190 481 (a) 500

Tubers 72 135 114 245

Corn 74 76 73 40

Rice 52 45 55 46

Beans 27 29 33 17

207,513 b/

Livestock 426 2,514,165 j (a) (a)

/ (cassava, yucca, manio, tapioca, etc.

(a) not available; believed to be about the same as in 1939

bJ Head slaughtered, 1941;

j/ head, 1940

iNOTE: There are wide discrepancies among the various sources; none of the d.ta

is considered very reliable.

SOURCES:"Domninican Repuiblic t t , PO,U 1945"Conference of Commissions of Inter Ajmerican Development' t , 1944; '"Selected

Economic Data oni the Latin American JIeps.l PAU, 1948;Inbernational Reference Servicelt, U.S. Dept. of Commerce; RD 492, IEV'

23 -

VI. FORESTRY AND FISHERIES

TABLE I

FOREST AR ADRSOURCS193

Hectares Trees perHectare

Pine 712,500 394

NOTE: Small quantities of mahogany are also produced, mainly for export

TABLE II

:.TOR._0S OF. TJOD Al,ND 100D PRODUCTS

1938 1946Tons A000 Tons j 000

Wood andwood products 6,211 105 179703 1,200

TABLE III

FISHING

L9392

Pounds caught 731,343 1,071,318

Fishermen employed - 1,400

Sources: ttConf. of Commissions of Inter American Developmenttt, 194Selected Economic Data on the Latin American Republicst", PtUJ 1948

24 -

VIIo MINERALS

TABLE, I

MINERAL PRODUCTION

(kilos) (kilos)

Salt 9,536,000 11,300,000

Gypsum 0 2,146,351

Gold 196.1 21.2

Sources: "Foreign Mixnerals Surveylt, U.S. Dept. of Interior, 1945

t'International Reference Service", U.S. Dept. of Commerce,

"Mining and Manufacturing Industries in the Dominican Republic",U.S. Tariff Commission, 1948.

_ 25

VIII. INDUSTRY

TABLE I

INDUSTRIAL ",I1PLG-YhE4NT AND PRODUCTION 1/

(Value in thousands of dollars)

Number of Number of Wages andEstablishments E -poees- Salaries Daid

1937 1941 1937 1937

Food products andbeverages 579 615 25577,/29,551 5S252 4,658

TextLile and relatedproducts 197 226 956 1,119 116 138

Forest products andtheir manufactures 180 275 1,011 1,42 101 201

Chemical and relatedproducts 54 58 436' 592 388 l38

Leather and leatherproducts 161 258 1,526 1,408 173 202

Electric power 14 27 733 343 151 193Metal products 31 95 79 353 19 131Ceramic and related

products 18 26 115 208 26 41Tobacco products 53 45 887 861 125 163Paper products 6 4 56 57 2 19Graphic arts 45 56 368 504 113 195Miscellaneous products 4 48 19 191 5 22

Total 1,342 1,733 31,956 369631 6,4'71 6,101

Capital Value of Value ofInvestment Mv3aterials eMploX3d:" Sales

Food products andbeverages 56,260 66,950 $,748 11,906 16,453 18,872

Textile and relatedproducts 400 503 420 700 717 1,061

horest products andtheir mianuafactures 493 609 212 323 434 782

Chemical and relatedproducts 914 1,001 552 688 2,018 2,017

Leather and leatherproducts 260 447 515 653 824 1,018

Electric power 2,478 3,619 80 126 653 908Mbetal products 76 127 4S 96 85 280Ceramic and related

products 127 134 28 68 92 175Tobacco products 529 635 223 859 1,303 1,590Paper products 23 70 7 85 14 118

graphi c arts 578 786 87 166 272 528'Is_eI laneous products 20 40 7 27 19 90

Total /62,408 74,921 10,927 15,697 22,884 27,439Tootnotes on next page

26

Footnotes to Table I - Industrial Employment and Production

/ Not inc-luding handicraft production carried on in rural areas.

/ Includes salaried employees (empleados), wage earners (obreros), andapprentices (aprendices).

S/ The oaficial statistics of number of employees include workers employed by thesugar industry for the cultivation and cutting of cane. Adjusted data, ex-cluding agricultural workers employed by the sugar industry, are estimated tobe as follows:

1937 19M1F'ood products and beverage industries 6,200 7,100.All industrial groups 12,400 14,200

Data in some of the other columns are similarl.y affected by the inc2usion ofagricultuiral operationes in the sugar industry under the heading "Food productsand beveraaes.U Adjustment of these data is not possibl.e0

/ Includes raw materials, containers, fuel, a2nd electric power.

5/ Value of production is not available. For almost all goods, however, the quantitysold is either equal to the quantity produced or differs only slightly 'rom it.

/ The o£ficial statistics of total recorded investments in 1937 do not agree withthe data on capital investment by individual industries; consequently s the totalcapital investment indicated is ,"250,000 larger than the sum of investments byindustrial groups.

Source: "Mining and Manufacturing Industries in the Dominican Republic",US Tariff Comm., 1948

Note: The figures for "wages and salaries paid"l in the "Food products andbeverages" and the "Chemical and related products" industries in1941 are apparently incorrect, as they show a decline. The error,if any, is in the original source,the "Annuario Estadistico de laRepublica Dominicana", 1942.

27

TX, TRANSPORT AND COAMUNICATIONS

TABLEy I

TRANSPORTT ROUTE JNILD]AGE

Highways, surfaced 500Highways, unsurfaced 2,500

Highways, Total 3,000

Railroad, common carrier 152.Railroads, private (sugar) 610

Total. railroads 762

.Air Transport (domestic) 500&,

TABLE II

TONNAGE CARRIEDTons

Railroads, 1941-45 Average 100, 000Railroads, 1936-40 Average 35,000

Coastwise shipping (2,900 vessels)1935-39 average 25,000

/ estimated

28

TABLE III

NUMBER OF MOTOR VEHICLES

-1946

Automobiles 1,130

Trucks 866

Busses lO1

Other 402

2,506

TABLE IT

CGO1MUNIC&TIONS

Number

Post offices, 1945 298

Telegraph offices 127

Telephones, 1941 39400

Radios, 194.0 5,000

Broadcasting stat-ions 20

Sources: "International Reference Service"', U.S. Dept# of Commerce"Mining and Manufacturfng Industries in the Dominican Republict',U.S. Tariff Commission, 1948.1 t'lminican Riepublict", PAU, 1945.

29

X, FOREIGN TRADE

TABLE I

VALUE OF EXPORTS A.ND TIPORTS

(Millions of U.S. Dollars)

E - MrtS QRports

1938 14.7 11.8

1939 18,4 11.7

1940 18.0 10.5

1941 16.6 11.7

1942 l9.8 11.5

1943 36.2 14.4

194 60.2 18;.5

1945 4305 18.l

1946 64.8 27.9

1947 83.2 48.7

Source: "International Financial Statistios"'

30

TABLE II

PRINCIPAL EXPORTS AND IMPORTS

(Values in millions of US Dollars)

1938 1946 1947Tons Tons

£QQ2L Value Value Value

EXPORTS

Cane Sugar (unrefined) 403.5 8.6 413.4 32.9 50,4Cane Sugar (refined) 2.1 0 3.0 *6 *9Molasses 109.2 .6 102.7 i/ 2o6 2.9

Total Sugar Products 9.2 36.1 54.2

Tobacco 7*4 *4 28.4/ 848 4,5Coffee 8.4 1.0 14*3 5,4 5.1Cacao 28,3 1.9 25.1 4,4 12.9Total, 4 Principal Exports 12,5 54.7 76.7Total, All Exports 14.7 64.8 83.2

IMPORTS

Cotton and Textiles 3.0 3.8Machinery and equipment 1.0 2.1Chemicals and pharmaceuticals 1,o 1.8Iron and Steel Products 1,1 1,6Wheat flour .3 10

2/ Thousands of gallons

Sources: "Selected Econoiidc Data", PAU, 194R"International Reference Servicevt U.S. Department of Commerce"Foreign Trade of Latin Americat t, U.S. Tariff Comm.Foreign Service report, U.S. Department of State.

- 31 -

TABLE III

FORESIGN TRADE3BY PRINCIPAL COUNTRIE£S

(Millions of dollars)

Exports Irmort-s iports t

United Kingdom 6.0 o,6 26.9 0.4

U.S.A. 4.6 6.1 12.0 29,5

Puerto Rico 0,3 0.0 6,0

Canada O.o 0eL 5,9

Netherlands 0.4 0,0 2.5

France 1.2 0,0 2,0

Spain 0,0 0.0 1.9

Netherlands West Indies 0.4 0.3 1.7

India o0, 0.5 0,0

Argentina 0,0 0.0 0,0

Source: "Selected Economic Datalt, PAU, 1948

International Reference Service, U.S. Dept. of CommerceFT 4.10, US Bureau of the Census.

EXTh3/?YV'AL JF(VA4V(!JS 32 -m -et t Rovf L { - *- 3 2

TABLE I

BALAN PAYNENT 2

(Thousands of U.S. Dollars)

Credit Debit Nlet CreditItem it (ayments) or Debit

CURRENT TRANSACTIONS

1. Merclandise (1.1 plas 1,2) 19,238 11,742 , 7,4961.1 Exports and imports (both f.o.b,) 19,238 11,742 $ 7,4961.2 Other - >

2, Non-monetary gold movement (net) 254 - $ 254

3. Foreign travel 540 2,708 2,168

4. Transportation (4.1 plus 4.2) 161 1,44 1,2830 4.1 Gross freight 83 1,158 1,0754,2 0'her 78 286 208

5. Insurance 75 527 452

6. Investment income (6.1 through 6.3) 300 4,265 - 3,9656.1 Direct investments 50 3,364 - 3,3)46.2 Other interest 250 901 - 6516.3 Other equity -

7, Government, not included elsewhere (7.1 plus7.2) 150 371 - 2217.1 Military expenditures, and surplus

property7,2 Other 150 371 221

* 8 'Miscellaneous 69 133 - 64

9, Donations (9.1 through 9.5) 100 684 - 5849.1 Personal and institutional remittances 50 394 - 3449,2 Other private transfers 50 290 - 2409.3 Reparations -9.4 UNRRA

-9.5 Other governmental grants -

10. Total current transactions (1 through 9) 20,887 21,874 - 987

ERRORS AND OMISSIONS (16 minus 10) - 313

Source: IW

32-a

TABLE I (Conttd.)

BALANCE OF PAYMENTS._ 1939

(Thousands of U.S. Dollars)

Net Movement Increasing (7)of Decreasing ()

Assets Liabilities Net Assets

MOLVEMT OF CAPITAL AND MONETARY GOLD

PRIVATE (excluding banking institutions)

11. Long tem capital (11,1 through 11,6) 4 43 443111 Direct investment A 743 -743.112 Portfolio securities: bonds11.3 Portfolio securities: shares - -ll.4 Amortization - 300 30011.5 Other contractual repayments11.6 Other --

12. Short-term capital (12.1 through 12.3)12.1 Payments and clearing agreements12.2 Other restricted12.3 Other -

OFFICIAL AND BANKING INSTITUTIONS

13. Long-term capital (13.1 through 13.6) 153 7 15313.1 Sale of vested direct investments and securities13.2 Other portfolio securities -

13.3 Loans to official and banking institutions andfrom all sources - -

13,4 Amortization 153 1-15313.5 Other contractual repayments13.6 Other 04

14* Short-term capital (14.1 through 14.4) -1,010 1,01014.1 Payments and clearing agreements -

14,2 Other restricted -14.3 Unrestricted liabilities to official and

banking institutions -

14.4 Other unrestricted - 1,010 - 1,010

15. Monetary gold -

16, Total movement of capital and monetary gold(11 through 15) 1,010 71 290 - 1,300

Source: 5 14F

32-b

BALANEOF PAYMNT&§%6

Credit Debit Net Credit(Rce-os) (Payvments ) or Debit(-

CURRENT TRANSACTIONS

1. Merchandise (1.1 plus 1.2) 67,392 2r2928 ,4 39s,4641.1 Exports and imports (both f.o.b.) 67,392 27,928 f 39,4641.2 Other - - -

2, Non-monetary gold movement (net) 23 - 7 23

3. Foreign travel 1,,100 3,800 - 2,700

4. Transportation (4.1 plus 4,2) 810 21,345 1,5354.1 Gross freight 720 1,710 - 9904,2 Other 90 635 - 545

@ 5. Insurance 250 1,470 1,220

6. Investment income (6.1 through 6.3) 704 16,034 1523306.1 Direct investments 280 15,,005 14,7256.2 Other interest 424 1,029 - 6056.3 Other equity

7. Government, not included elsewhere (7.1 plus 7,2) 760 1,350 - 5907.1 Military expenditures, and surplus property7.2 Other 760 1,350 590

8, Miscellaneous 625 675 50

9, Donations (9.1 through 9.5) 755 1,090 3359.1 Personal and institutional remittances 650 500 7 1509,2 Other private transfers 105 590 485

V 9,3 Reparations9,4 UNNRA-9&5 Other governmental grants - -

10, Total current transactions (1 through 9) 72,419 54,692 f 17,727

ERRORS AND OMISSIONS (16 minus 10) 7 39

Source; llF

32ac

TABLE II (Conttd.)

BALANCE OF PAEN ,

Net Movement Increasing ($)or Decreasing (.

Assets Liabilities Net Assets

MOVEMENT OF CAPITAL AND MONETARY£ GOLD

PRIVATE (excluding banking institutions)

11. Long-term capital (11.1 through 11.6) / 75 / 7,263 - 7,18811.1 Direct investment, 75 A 7,574 - 7,49911.2 Portfolio securities: bonds - -11.3 Portfolio securities: shares - I11.4 Amortization - - -311 / 31111.5 Other contractual repayments11.6 Other -

12. Short-term capital (12.1 through 12.3) /20,000 f 20,00012.1 Payments and clearing agreements -12.2 Other restricted -12.3 Other $20,0OO f 20,000

OFFICIAL AND BANKING INSTITUTIONS

13, Long-term capital (13.1 through 13.6) - 1,276 $ 1,27613.1 Sale of vested direct inrvestments and

securities --13.2 Other portfolio securities -13.3 Loans to official and ba.nking instit.utions

and from all sources -13-4. Amortization - - 1,276 $ 1927613.5 Other contractual repayments - - -13.6 Other - -

14. Short-term capital (14.1 through 14.4) $ 1,678 - 1,67814.1 Payments and clearing agreements14,2 Other restricted14,3 Unrestricted liabilities to official

and banking institutions14.4 Other unrestricted $ 1,678 - 1,678

15. Monetary gold f 2,000 A 2,000

16, Total movement of capital and monetarygold (11 through 15) f 23,753 f 5,987 f 17,766

Source: Is

32-d

TABLE III

BAIANCE OF PAYMENTa, 197

Credit Debit Net Credit(Receipts (Payents or Debit (

CURRENT TRANSACTIONS

1. Merchandise (1.1 plus 1.2) 78,545 48,707 7 29,8381.1 Exports and imports (both f.o.b.) 78,545 48,707 7 29,8381.2 Other

2. Non-monetary gold movement (net) -

3. Foreign travel 1,296 3,800 2,504

4. Transportation (4.1 plus 4,2) 820 2,355 - 1,5354.1 Gross freight 720 12710 9904.2 Other 100 645 - 545

5. Insurance 150 1,470 - 1,320

6. Investment income (6,1 through 6,3) 465 18,628 -18,1636.1 Direct investments 265 18,064 -17,7996,2 Other interest 200 564 3646.3 Other equity -

7, Government, not included elsewhere (7.1 plus 7,2) 760 1,350 5907,1 Military expenditures, and surplus property7.2 Other 760 1,350 590

8. Misoellaneous 725 675 7 50

£ 9. Donations (9.1 through 9.5) 755 1,090 3359.1 Personal and institutional remittances 650 500 7 1509.2 Other privatd transfers 105 590 4859.3 Reparations9,4 UNRRA - -9.5 Other governmental grants - -

10, Total current transactions (1 through 9) 83,516 78,075 71 5,441

ERRORS AND OMSSIONS (16 minus 10) 127

Source: IMF

32-e

TALEII-Conttd.A

Net Movement Increasing (7')of Decreasn,-

Assets Liabilities Net Assets

MOVEMENT OF CAPITAL AND MONETARY GOLD

PRIVATE (excluding banking institutions)

11. Long term capital (11,1 through 11,6) f 75 A 8,793 8,71811.1 Direct investment $ 75 7 9,104 9,02911.2 Portfolio securities: bonds - -11.3 Portfolio securities: shares .11.4 Amortization 311 X 31111.5 Other contractual repayments11.6 Other

12. Short-term capital (12.1 through 12.3) 119000 7 11pooo12.1 Payments and clearing agreements12.2 Other restricted12.3 Other $11,000 7 11,000

OFFICIAL AND BANKING INSTITUTIONS

13. Long-term capital (13,1 through 13.6) 11,953 $ 11,95313.1 Sale of vested direct investments and

securities13,2 Other portfolio securities13.3 Loans to official and banking institutions

and from all sources -

13,4 Amortization 11,953 7 11,95313.5 Other contractual repayments -13.6 Other - -

14, Short-term capital (14,1 through 14,4) i 8,921 - 8,92114,1 Payments and clearing agreements -14,2 Other restricted14.3 Unrestricted liabilities to official and

banking institutions14./+ Other unrestricted - 8,921 8,921

15. Monetary gold

16, Total movement of capital and monetary gold (11through 15) 7' 29154 3,160 $ 5,314

Source: I&f

- 33 -

TABLE II

FOREIGN EXCHANGE RATE

1905-1947 U.S. $ was only legal tender

1947: 1 peso a U.S.$1.00

1948: 1 peso = U.S $1.00

Source: International Financial Statistics.

TABLE III

FOREIGN EXCHANGE RESERVES

(millions of U.S.dollars )

Gold andForeign Exchange Dollar notes i/

End of Bgs anks in circulation Total

1937 3.3 2.5 5.81938 4.3 3.0 7.31939 3.1 3.3 6.41940 5.9 3.8 9.71941 6.3 6.O 12.31942 12,2 8.8 21.01943 18.7 11.3 30.01944 25.4 13.1 36,51945 29.8 17.2 47.01946 28.6 21.6 50.2194+7 28.3 8.9 37.2

;/ Estimated

Source: RD 492,, IMFInternational Financial Statistics

34 -

TABLE IV

FOREIGN DEBT

Principal outstandingEnd of (millions of U

1926 20,0

1929 19.7

1930 1$,5

1940 14.9

1943 15.3 /

*1945 14.6 1/

1946 11.9 V/

1947 i/ 1.3 1/

2L/ Includes the following due Eximbank

1943 $2.0 million1945 2;.5 tt1946 1.9 "a

19147 1*3 "

i/ Total debt outstanding, $9,.3 million (excluding amount due Eximba't *`'paid off July 19, 1947

Sources: "Commissions of Inter..American Development," 1944

Sec. del Tesoro, 'Wkwr.s de 1946"

"Selected Econonic Data", PAU,1948"La obra politico-economico y financiera del Ex. Pres, TruJillo", 1947

35

XII. INTERNAL FINANCE

TABLE I

GOVERII4ENT REVNUES AD EENDITUS

(millions of dollars)

Revenues E2penditures

1938 11.9 12.1

1939 12.3 12.2

1940 12.2 11.0

1941 14.4 13.6

0 1942 17.2 15.1

1943 20.9 19,8

1944 25.2 27.1

1945 30.2 30.5

1946 42.2 ;/ 44.3

1947 55.4 g/ 73.2

~/ Excludes $3.2 million in receipts from domestic loan

g/ Excludes $15.7 million in receipts from domestic loans.

Sources: "Selected Economic Data"t , PAU, 1948Secretaria del Tesoro, Memoria de 1946

- 36 -

T'ABLE II

PRINCIPAL CLASSES OF GOVERNMENT REVENUES. ,1246

( millions of dollars)

Reiie m orts Sub-totals

Custom revenues 4.95Internal revenues collected by customs 7.86 /Import fees .73Trade fees .56Additional fees .07"Specialt" import taxes .82

14.99

ReceiRts main&,derived from exports

Taxes on sugar and molasses 6.42Taxes on other exports .51Export fees .31"Special" export taxes 2.19

9.43

Other receipts

Other ordinary receipts 8.16Other "special" receipts 8.72Municipal taxes -81

17.68 J

Domestic loans 3.16 3.16

Total Receipts 45,36

a/ Excluding export taxes.

h/ Includes various taxes, non-tax receipts, public utilities and others.

Source; RD +92, IMF, 1948

37-

TABLE III

PRINCIPAL CLA.SSES OF GOVER'NMENT EXPENDITURES,,_126

Milions of Dollars

Regular Government Expenditures

War and Navy Dept. 3.9

Interior and Police Dept. 1.8

Foreign Afi'iairs Dept.1.

Treasury Dept. 2.4+

Public Debt (Treasury Dept.) 3.0

Education Dept. 2.3

Dept. of Public Works. 2.1

Judiciary 1.1

Other 6.o

Total regular government expenditures 23.7

SRecial QMndtures

Public works 1.6

Port development 6.4+

*Public Debt 1.6

'tSpecial Payments" (not identified) 7,~8

Other 3,2

Total Special Expenditures 20.6

Total Expenditures 44*3

Source:- Sec del Tesoro, "M6moria de 1946"3

38 -

TABIE IV

INTERNA PUBLIC DEB

(millions of dollars)

1940 O,5

1941 0.4

1942 0.3

1943 1.2

1944 1.0

1945 1l0

1946 1.0

1947 10.2

Sx/ cludes short-term obligations

Source: "Selected Economic Data", PAU 1948

Sec del Tesoro, Memoria de 1946RD 492, IMF, 1948

- 39 -

TABLE V

MONETARY SUPPLY

(millions of dollars)

Currency Deposit TotalMoney

1938 3.0 3.9 6.9

1939 3.3 4,9 8.2

1940 3.8 6.6 10.4

1941 6.0 898 14.8

1942 8.8 14.1 22.9

1943 11.3 20,6 31.9

1944 13.1 21.3 34.4

1945 17.2 25.5 42.7

1946 21.6 29.9 51.5

1947 23.0 29.4 52,4

1948 (June) 24,7 32.4 57.1

Source: International Financial Statistics

40

TABLE VI

CASH. LOANS AND DEPOSITS OF COMMERCIAL BANKS

(millions of dollars )

End of Cash Loans De-osits

1938 1.3 3.6 7.9

1939 1.5 494 7.5

1940 1.7 3.8 9.8

1941 2.0 4.2 11.1

1942 3.4 4.3 17.2

1943 4.4 4.9 24.8

1944 4.9 2.9 29.6

1945 5.8 3.2 36.6

1946 7.3 5.4 38.9

1947 8,7 8,0 43.7

Source; "Estadistica Bancaria, 1947"

XIII. PRICES

TABLE I

INDICES OF WHOLESALE PRICES AND COST OF LIVING

Wholesale Cost ofPrices

1941 100 100

1942 123 120

1943 166 150

1944 203 174

1945 201 181

1946 236 202

1947 289 227

Source: Banco Central de la RD, Memoria de 1947'RD 492, IMF., 1948International Financial Statistics