20 TEE CU BAY REV Daw 
CUBAN SUGAR INDUSTRY—ITS IMMEDIATE PAST, 
ITS PRESENT AND FUTURE 
By H. O. Neville 
We do not believe that in any other country of the world does the success, or 
failure in either producing or profitably marketing one crop have so serious an 
effect as does that accompanying these operations in the sugar crop in Cuba, Indus- 
trially, Cuba is beyond doubt a country in which all its eggs are in two baskets, and 
with the restrictions being imposed upon the tobacco industry daily becoming more 
and more onerous, tending toward complete stagnation in the production of the finer 
grades of cigars that have always constituted such a large percentage of the exporta- 
tion of the finished product from Cuba, every indication points towards the elimination 
of one of these baskets, reducing to the other and the results secured therefrom the 
determination of the degree of prosperity that the Island will enjoy, It will therefore 
not he without interest to glance over the position of this industry as affected by 
the conditions prevailing in the immediate past and at present ruling throughout the 
world. 
Everyone having even the most superficial connection with the world’s sugar 
industry during the past three or four years will have some knowledge of the place 
that sugar has enjoyed during the war, and of the importance that has been given 
{it as a condensed food, capable of sustaining courage during crucial periods, and 
demanded by the soldiers at the front. Ile will know of the restrictions imposed 
in its consumption upon the civilian population of nearly all nations in order that 
the smaller supply available, due to smaller production, might be sufficient to fill 
the absolute requirements of the soldiers, and yet leave a moderate quantity with 
which to fill the home demands. He will remember the two years of control by the 
United States Equalization Board, during which period Cuba sold her crop at the 
uniform price of 4.60¢ per Ib. in 1917-1918 and 5.50c per lb. in 1918-1919, and the 
profits of refiners were limited to fixed figures, so that the cost of sugar to the ultimate 
consumer was held within very reasonable bounds. But still more deeply engraved 
in his memory will be the period after war control ceased, during which, following 
a period of guessing and of sales based upon the opinion of many closely connected 
with the Cuban industry, at figures around 6.50¢ per 1lb., and spurred onward by the 
ever smaller estimates of the total possible production of the 1919-1920 Cuban crop, 
the market broke away from all control, advancing by leaps and bounds to formerly 
unheard of prices for Cuban raws, resulting likewise in extreme costs of refined for 
consumption, until a high for the former was established at about 23%c¢, and for 
the latter of whatever the small grocer cared to ask and could get. Very prob- 
ably there are unpleasant memories among the children of the North regarding 
this period, during which mother’s sugar supply was extremely low and what she 
had of it was cherished as never before in the youngsters’ memories. 
Much has been written concerning the causes of these extremely high prices, 
and much adverse comment has resulted regarding the attempt of the Cuban pro- 
ducers to hold the world up and demand whatever they could get for their product, 
regardless of the cost to them of its production and of the great profits that were 
being derived. We cannot refrain from commenting on the criticisms that were 
made of the rapacity shown by these producers and of the attempt to lay at their 
doors the blame for the high cost of this daily necessity to the Northern consumer 
and the loss suffered later by all holders who had purchased at the high prices 
prevailing during a considerable period of the spring and early summer of 1920. ; 
We do not believe that the Cuban producer is to blame, nor do we believe that 
even the Cuban speculators who attempted to hold about 10 per cent. of the crop 
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