12 TH. OU BA BEY Lbw 
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that this importer had been purchasing ordinarily. Surely the fact that the popula- 
tion had not increased in so short a time to these proportions was well known to the 
exporters; but the shipments were made, greatly overtaxing the ports of the Island 
and the people therein to assimilate the merchandise and, when the price fall came, 
the merchants were not prepared for the blow. This was the situation of the rice 
controversy over which there has been so much written and said. 
Today one of the principal steamship lines to the Island of Cuba has required 
that guarantees be furnished it to the effect that the consignee is in position to take 
immediate delivery of goods ordered before permission will be granted to ship. Much 
criticism was heaped on this steamship line when these guarantees were first de- 
manded, but today, thirty days after the imposition of the requirement, nothing but 
praise is heard for the attitude taken by this line that wishes to serve the publie and 
not collect abnormal storage charges from consignees not in position to accept delivery 
of their merchandise. 
SUGAR: In the two previous letters which we have written we predicted that 
the average price for the coming crop would be in the neighborhood of 10 to 12 cents, 
but indications now point to the attainment of a still lower average for the 1920-21 
crop. The recent low level of 5.275 cents reached in the United States, at which time 
considerable January and February delivery was offered with no takers, causes us to 
incline to the view that if the average for the coming crop reaches eight cents it will 
have done well in the face of the fact that there are now in Cuba some three hundred 
thousand tons of last year’s crop unsold, and the possibilities for the coming crop 
are in the neighborhood of five million tons, Allowing for the large stocks of sugar 
on hand in the United States, the material increase in the production of sugar in 
foreign countries this year, and the general price decline that has been experienced in 
all lines of business, we feel that eight cent sugar, as an average for the entire crop, 
is as high as may be expected. 
The growers on the Island have recently met and endeavored to organize them- 
selves for the purpose of holding their sugars for higher prices, but this will be very 
hard to attain for the simple reason that the banks of the Island are not in position 
to make the liberal loans this year that they were in years past. Of course, should 
the loan from American bankers to the Cuban Government be put through and this 
money be used solely for the aiding in financing this sugar crop, material assistance 
would be rendered the growers and producers in their efforts. The one issue that has 
caused consternation among the growers and producers has been the tremendous drop _ 
frem the highest level ever attained by Cuban sugars to the extremely low level 
attained in recent quotations. Those having money invested in sugar lands or centrals 
have been receiving splendid returns on their investments for the past four years. 
This year, however, after having made large purchases of machinery, ete., at the very 
peak of the high prices, to require that they accept less than eight cents for their 
sugar is going to mean that a complete readjustment take place. Let us bear in mind 
that when prices were high the average grower did not put his money away in banks 
to draw interest, but reinvested it in high-priced land and equipment with high 
expectations for the future. A look over the Island today will quickly confirm this 
statement. Where formerly the laborers lived in crude huts and the cane was hauled 
in antiquated ox-carts, today you will find splendid “barracones” are provided for 
the laborers (and substantial wage increases have been granted also) and modern 
tractors are hauling the cane to the mills for grinding. A marked improvement in 
the personnel of the centrals is also very evident. High salaried administrators have 
been installed, together with capable chemists and well organized offices, with first- 
class accommodations for all. Whereas, a few years ago four and five cent sugar 
rendered a substantial income on the investment represented in a sugar central. it 
will take, today, at least seven cent sugar to return the same proportional profit. 
