T H E C U B A R E V I E W 11 



bankers are to underwrite the coming crop in tlie amount of $100,000,000.00, wliich 

 amount will be loaned to the Cuban Government for distribution among tlie different 

 banlvs of the Island. The suggestion is offered that export licenses be denied to those 

 that would sell their sugar for less than S cents per pound and, to us, this solution of 

 the trying problem is the logical step to take. Of course someone must take the losses 

 sustained on the three hundred thousand tons of sugar now in warehouses throughout 

 the Island, and when this has been done and the new basis of sales has become ad- 

 justed, business will be resumed on the same basis that it was before speculation entered 

 into the transactions. 



The moratorium has worked a tremendous hardship on business houses in general, 

 since large quantities of freight have arrived in the Bay of Havana and consignees 

 are unable to extract funds from the banks with which to pay customs duties and also 

 meet their drafts covering the cost price of the goods. This feature is bound to affect 

 the congested condition on the wharves and in the warehouses. Freight arriving in 

 the bay today is simply stored on whatever space may be available and those consignees 

 who have funds sufficient to extract this merchandise are doing so, while others are 

 simply powerless to act. Very little money is in circulation and business houses are 

 insisting that cash be paid for all purchases of goods. At first the situation was con- 

 sidered a huge joke but today quite tlie contrary is the fact. The situation is serious 

 and unless the moratorium is raised within the next week the results will be disastrous 

 to many houses which have always done a large business on a credit basis. 



SUGAR: The prospects for the coming crop of sugar are very bright indeed since 

 the rainfall has been ample and all reports from the interior of the Island would 

 indicate that the cane has experienced a splendid growth and, with the additional 

 large acreage planted for this season, the 5,000,000 ton mark may be reached. 



Considerable speculation as to the price that will prevail was evident during the 

 first part of the month, but since the financial crisis has occurred it is generally 

 conceded that if the growers can realize as much as 8 cents per pound they will 

 consider themselves lucky. Last spring, when the sugar speculators obtained control 

 of the sugars, prices soared and the producers dreamed that these unreasonably high 

 prices were to maintain for the present crop and, in fact, at a meeting of tire "Colonos" 

 on the Island a few months ago they all agreed not to release their sugars for less 

 than 14 cents. This attitude has all been changed now, of course, since the develop- 

 ments of the banking crisis have thrown such a strong light on the operations of the 

 speculators and since there have been found to exist in the United States over a 

 million and a half tons of the last crop and also the discovery that there are on the 

 Island today something over three hundred thousand tons of last year's crop yet to 

 be exported — and the price around 7 cents. That the situation will be reversed from 

 last year is absolutely conceded. The tremendous sums of money taken in profits last 

 year brought a degree of prosperity to the Island never dreamed of and those who 

 took these profits do not seem to have taken any great care of these large sums 

 because, when the price of sugars went down to the level of 7 cents, the losses could 

 not be sustained by the holders of the sugars and the banks were made to suffer, and 

 the consequence was that the banks found themselves in difficulties to meet the situ- 

 ation. To us the only way out of the situation is for the Cuban Government to accept 

 the offers of American bankers to lend the sum of one hundred million dollars for 

 the financing of the coming crop — which we believe will be done. 



PORT CONGESTION: In our last letter we made mention of the various measures 

 that had been put into effect for the relief of conditions. It must be admitted that 

 little improvement, if any, can be observed, since the General Wharves are piled high 

 with freight of all kinds and dozens and dozens of barges are alongside awaiting their 

 turn for discharge. Even two and three-masted sail boats ai'e loaded with freight 



