Background PROMESA

after 400 years of spanish rule, puerto rico handed on war prize u.s. after negotiations led drafting of treaty of paris in 1898. u.s. investors began settle on land, serious vulnerabilities in social , economic structures of puerto rico’s agricultural economy began arise, repercussions of evident in years come. hurricane san ciriaco of 1899 killed on 3,400 puerto ricans , destroyed many important export crops, coffee. (schwartz 1992) shortly thereafter, while neglecting provide meaningful form of hurricane disaster relief, u.s. set american colonial bank , converted puerto rican peso american dollar , devalued currency 40%. (davis 2015) foraker act of 1900 made puerto rico subject u.s. federal law establishing civil government appointed u.s. president. act prohibited puerto rico negotiating trade treaties foreign country or setting own tariffs or import/export regulations.