SN WML Te) OOF 1s AL IR 1B) WAL 1, NY 23 
the efficiency of the organization of the producing company or the farm where the 
cane was grown. Higher costs, of course, ruled, due to the greater prices that had 
to be paid for everything utilized in cane growing and sugar making; yet during 
the most of these two years higher sugar prices preceded higher cost of production, 
so that good profits were the rule. Enthusiasm, therefore, prevailed, and continued 
increase in area planted and the establishment of new mills and improvement of 
installation of those already in operation were general. The results are seen in the 
ever greater crops produced since the outbreak of the war, interrupted only by causes, 
such as the drought of 1919, impossible of control by man. This enthusiasm not only 
was demonstrated in the sugar industry, but in all other lines. Land values began 
to advance, suburban additions of great extent and involving heavy preparatory 
expenses were opened up on all sides near all our large towns and cities, building 
in both country districts and in towns was the rule, merchants were open to the 
agents of manufacturers of every kind of merchandise that could possibly be marketed 
among a people with whom money was plentiful, and credit was free and given to all. 
With the closing of the period of Government control of sugar prices, some slight 
hesitation was shown, but with the declaration of the 10.5¢ per lb. price at which the 
sugar of the cane producers was liquidated for December, 1919, confidence returned, 
and with the ever increasing prices of sugar during the spring of 1920, a period of 
riotous spending and speculation in everything that could cater to the pleasure or 
need of our people set in that seemed to have no limit. Every indication that these 
conditions had come to stay for at least a period of four or five years was in evidence, 
‘and it was freely predicted that during this period sugar would sell for at least 8 or 10 
eents per lb. This, of course, meant that in Cuba anything connected with sugar 
production could leave nothing but profit, so that the price of sugar properties, whether 
mills or cane farms, soared to the skies. Transactions in properties of this nature 
were everyday affairs, and the sums represented were in many cases fabulous. Ten, 
twelve, and even fifteen thousand dollars were paid per caballeria (about 33 1/3 acres) 
for merely planted cane, the land not being included in the transaction; and equiva- 
lently high prices were paid for mills. The significance of this will be recognized 
when it is knewn that the cost of preparing, planting, and cultivation to harvest a 
caballeria of cane in 1914 in the eastern provinces of Cuba was estimated to be about 
$1,200.00, and that even with the tremendously increased costs of all operations 
connected with cane planting and cultivation during 1919, a conservative estimate 
of the expense involved was not more than $5,500.00 per caballeria. But the fever 
Was on, and increased in degree as the spring passed, and higher prices ruled for 
sugar. Those who in the early spring had sold their properties, tempted by the 
apparently high prices then offered in comparison with those ever offered before, 
came back info the game and purchased much larger properties than those disposed 
of by them and at higher prices than these obtained when they had scld. In this 
they were abetted by the banks, who seemed to have lost their sense of perspective 
and offered freely credit for such transactions as in a more sane period would have 
been turned down in a moment. Yet at the same time these same institutions, through 
their higher officials, were advising those of their clients who consulted with them 
regarding the advisability of accepting tempting offers, to accept them and close 
the deal without delay. We thus find that solid substantial companies like Punta 
Alegre disposed of their cane farms (the cane stubble, not the land upon which it was 
growing), preferring to take advantage of the high offers made and to buy the cane 
from the grower at the percentage prevailing in the property, rather than continue 
growing the cane for their own account. And the wonder of the whole thing is that 
some of these same cane farms were purchased by the owners of mills who had made 
a killing during the crop, and who, in the acquiescence of these companies to part 
with their holdings, should have sensed something that should have deterred them 
from entering in where wiser and more experienced heads were ready to get out. 
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