THE CUBA REVIEW 



CUBAN GOVERNMENT MATTERS 



THE FINANCIAL CRISIS 

 President Menocal of Cuba issued a 

 moratorium iiroclamation on Octolier 10, 

 t'ffectivo until December 1, as the result of 

 tlie tinancial situation brought about in 

 Cuba by the decline in sugar prices. Several 

 banlcs which had loaned heavily on the 

 sugar crops were subjected to runs and 

 it was thought wise to avoid all danger 

 of serious developments by imposing re- 

 strictions upon the collection of obliga- 

 tions and the withdrawal of funds by 

 depositors. Eight days later at a con- 

 feriMicr of State Department officials, 

 bankers, and sugar men in Washington 

 an arrangement was made under which 

 bonds of the ("ul)an Covernment will be 

 sold in the United States for investment 

 purposes. It is believed that sufEcient 

 funds will thus be provided to meet Cuba's 

 needs until conditions have returned to 

 normal. 



According to a I'eport from the Ameri- 

 can Minister in Cuba datwl October 12, 

 1920, the terms of the moratorium de- 

 clared in Cuba state that drafts, notes, 

 bills of exchange, obligations, orders, and 

 other documents of credit which are due or 

 may become due up to December 1, will 

 not be collectible until that date. The 

 same extension is granted for transfer- 

 able mortgage credits or deeds of trust 

 which may be due previous to December 

 1. Only 10 per cent, on checking accounts 

 and 12 per cent, on saving deposits be- 

 low .$2,0<i<> can be drawn by depositors. 

 However, necessary sums to pay customs 

 duties, taxes, fiscal revenues, and other 

 taxes imposed by the municipality or the 

 province may be dra\\'n against the 

 creditor's current accounts. 



The Latin American Division of the 

 Bureau of Foreign and Domestic Com- 

 merce states that it would appear inad- 

 visable for exporters to send shipments 

 to Cuba unless cabled instructions from 

 the consignee have been received. Of 

 course, contracts must not be repudiated, 

 but the wishes of the importer should be 

 consulted. 

 The congestion of Havana Harbor con- 



tinues unabated. Although the Treasury 

 Department of the Cuban (ioverinnent has 

 recently begun to put into effect the ordi- 

 nance permitting the Government to re- 

 move from the docks all merchandise re- 

 maining after the statutory period, the 

 wharves are still congested. The mora- 

 torium has made it exceedingly difficult 

 for firms to secure ready cash to meet 

 their payrolls. It is stated on reliable 

 authority that 1,000 men who were en- 

 gaged in helping to relieve the harbor 

 congestion have ceased work because they 

 were not paid. 



The moratorivnn also makes it difficult 

 for importing concerns to secure funds to 

 meet obligations pertaining to the im- 

 portation of shipments. Consequently 

 many of them cannot accept goods upon 

 arrival. For this reason alone exporters 

 should be careful in ordering shipments 

 to go forward. 



The situation is being given very seri- 

 ous consideration by various private and 

 governmental bodies. In the meantime 

 individual merchants must guard their 

 own interests carefully. 



RENEWAL OF DIPLOMATIC RELATIONS 

 WITH GERMANY 



Diplomatic relatioits between Cuba and 

 Germany were renewed, on October 27th, 

 when Dr. Karl Zittermann, Germany's new 

 minister to the Cuban republic, presented 

 his credentials to President Menocal. 



NEW CABLE LINES 

 The Connnercial Cable Company has 

 been authorized to install a new cable 

 between Havana and Miami, Fla., and the 

 Western Union Telegraph Company has 

 been authorized to estal)lish a cable line 

 between Cul)a and Barbados. 



SALE OF RAILROAD BY GOVERNMENT 

 The Cuban Government has sold the 

 Jucaro to San Fernando Railway to the 

 Northern Railway Company of Cuba at 

 the appraised price of $933,919. 



