THE CUBA REVIEW 11 
studying what measures will be adopted for the relief of the situation. An extension 
of the moratorium will not, we believe, relieve the situation. Sounder methods will 
have to be adopted if any good is to result. 
What will eventually be done in the matter is still withheld from the public, but 
even the public know enough of affairs in general to feel that some serious question 
of mismanagement has been the cause of the suspension of payment of their funds 
entrusted to these institutions for safekeeping. 
PORT CONGESTION: In spite of the fact that there are fewer vessels in the Bay 
of Havana today awaiting discharge and, also, the optimistic tone of the press in 
general, it is our impression that the port congestion of Havana shows little, if any, 
improvement. The question considered from the point of view of the steamship 
lines entering the port is somewhat complicated in view of the fact that, whereas 
formerly the removal of merchandise from the wharves was a question of warehouse 
space of the consignee to accommodate their merchandise, today, with the moratorium 
in effect and the consequent difficulty of merchants raising cash for the payment of 
drafts and duties on their very large importations, it is difficult to see wherein 
conditions have improved. 
The congestion dates back to January of this year. At that time an importer 
had placed an order with a house in the United States for a bill of goods. These 
goods were shipped, after some delay, and when they reached their port of embarkation 
they were held up on account of an embargo which the steamship company had 
placed in effect. In many eases, at this juncture, the shippers advised the consignee 
that they could secure space on a different steamship line to Cuba from another port 
and the consignee duplicated his order with the understanding that the goods would 
be despatched to Cuba immediately. 
This despatch was accomplished, but in many cases the goods came on some newly 
organized steamship service which had no wharf accommodations in Cuba and the 
ships remained in the bay awaiting berth, in some instances, and in still others 
awaiting barges to be made empty to accomplish their discharge. In the meantime 
the consignee of these goods was being called upon by his clientele to deliver the goods 
ordered. Prices were high and the prospects of splendid profits good, and the con- 
signee was assured by his representatives in the North that such and such a line had 
raised its embargo against Cuban ports and he permitted his agents to despatch a 
third order for the same goods by this line hoping to receive same promptly. In the 
meantime, the first and second orders placed by the consignee may have been delivered 
and his orders filled from these. Shortly after the moratorium was placed in effect 
his third order arrived in Havana and he found to his amazement that he was unable 
to arrange accommodation for the funds necessary to obtain this third shipment. 
And in this we have the most logical explanation, we think, for the condition of the 
bay today. Storage charges were assessed against his shipments on the wharves and 
this storage had to be added to the cost price of the goods. 
With the publication of the fall editions of catalogues this consignee was amazed 
to find that prices were quoted at from 10% to 25% reductions. He was caught with 
large stocks on hand, money very tight, and reductions of prices staring him in the 
face. Many consignees refused to accept delivery of their merchandise and drafts 
were reported by the banks as being unpaid. American exporters made hasty trips 
to Cuba to adjust matters and endeavored to induce their customers to accept these 
goods, but in many cases without results. 
To the logical mind it would seem that the farseeing American exporter should 
have been reluctant to ship to an importer three times the amount of merchandise 
