THE CUBA REVIEW 11 
be much less than heretofore. If the price does not improve indications are that 
the full crop of Cuban sugars will not be harvested and the outlook for business for 
this year is gloomy indeed. oH 
FINANCIAL SITUATION: With the moratorium extended until June of this year._ 
conditions promise to remain unsettled until that time, unless the visit to Cuba of 
General Enoch H. Crowder, who was sent by the American Government to make a 
thorough investigation of general conditions, should mean that his recommendations 
will be adhered to and that those banks which are found to be in bad condition. will 
be allowed to take the consequences of their mismanagement. 
General Crowder arrived in Havana aboard the battleship ‘‘Minnesota” and has 
been in almost constant conference with members of the Cuban Government and 
prominent citizens of Havana. It is understood that, besides the financial situation, 
he will undertake to clear up the doubt that has prevailed in the minds of the Cuban 
populace as to the outcome of the recent presidential elections, and that he will also 
investigate the port congestion at Havana. That he is stirring up things in general 
is very manifest; the Cuban Judiciary, so long silent on the question of the final 
outcome of the recent elections, has had sufficient pressure brought to bear upon it 
that a partial report has been rendered on some of the outlying districts and con- 
ditions have been aired which cause many to believe that another election may be 
held in March. Bankers of the city have also been in conference with General 
Crowder and we are led to believe that he will insist upon the moratorium being 
lifted, and if certain banks were careless in their manner of handling public funds 
they are to be made to suffer the consequences of their mismanagement. 
Disturbing rumors are afloat with reference to the ability of the Banco Nacional 
de Cuba to meet its obligations, while it is very evident that the Banco Hspafiol de la 
Isla de Cuba and the Banco Internacional are involved beyond their ability to recover. 
An interesting commentary on the bank situation in Cuba is furnished in the 
activities of those individuals and firms which were caught by the moratorium owing 
sums of money to the banks affected. We were recently told how one large business 
house in Havana that owed the Banco Internacional $104,000 purchased checks from 
depositors of this institution at, a discount of about 52 per cent. and repaid the loan 
with checks drawn on the bank itself for about $50,000. This same thing has been 
done with the other two banks affected, only the discount paid, in the case of tha 
Baneo Nacional de Cuba, has been slightly less than that mentioned above, or around 
25 to 30 per cent. We know of one concern in Havana which recently liquidated its 
account with the Banco Nacional de Cuba for a clean 20 per cent. discount. Another 
ease that has come to our personal attention is that of a large sugar mill owner who 
was caught with about $700,000 in one of the affected banks. He secured his funds 
in full (although under the moratorium he was only legally permitted to withdraw 
10 per cent., since it was an active account) by paying one of the officials a substan- 
tial fee for his accommodation. Many stories of this nature are heard on the streets 
daily, but we have quoted the above as among those of which we were reasonably 
sure of the veracity. However, one of the outstanding facts of this situation is the 
absence of the looked-for failures among the large business houses of the Island. 
These concerns, many of which were not expected to weather the storm, have shown 
great activity since the moratorium was declared and have thus far withstood the 
strain better than was considered possible. Of course the final test of their strength 
will come when the moratorium is lifted. In the meantime, business is sorely affected. 
Cash in most instances is demanded, and few among the large business houses are 
able to pay cash. On the other hand, many large Havana business houses have ex- 
plained the situation fully to their American connections and have secured permission 
to sell on liberal terms as an evidence of good faith. Money, however, seems to be 
plentiful, since places of amusement are crowded to capacity and the horse races are 
very well attended, as is also the Havana Casino, where gambling is permitted under 
