26 TH Bo CUB A REA OW 
The measures thus taken have enabled Cuba to pass through the financial strain- 
with very few serious failures. There is no doubt whatever that before the final | 
payments become due by our merchants, either heavy failures w ill occur or else these. y 
firms will have to be assisted by others financially more powerful, but at all events © 
up to the present time results have been secured that we believe could have been — 
brought about in no other way. Collections have gradually been made, and as the 
demand for sugar becomes more active, it is felt that the financial strain will ne 
removed. r 
This brings us to a consideration of conditions in our sugar industry in relation 
to the present crop. Every one connected with this industry knows the hesitation ont { 
the part of foreign sugar purchasers to enter the market and make purchases of any 
considerable quantity of sugar. This has resulted in the exportations of sugars of 7 
this crop being little more than half in volume of those to the same date of the crop = 
of last year. It has, of course, greatly aggravated the scarcity ef funds with which | 
to make the crop, and as a result has led our planters to offer in the past their 
sugars upon the market practically as fast as they have been produced, thus bringing 
about a selling competition between producers. This, of course, could have only one — 
result, that is, that of a continual lowering of prices, until these have reached a point: fi 
much below the cost of production. The outlook has become so serious that the large — 
sugar interests of the Island presented a petition to President Menocal asking that — 
he in some, way intervene, with the result that the decree was issued by which a _ 
conmittee called the Sugar Finance Committee was appointed, consisting of two | 
hacendados representing large sugar producers, two others representing the smaller _ 
producers, two of Tavana’s most important bankers, and the Secretary of Agriculture, — 
Commerce and Labor, through which and only through which future sales of the © 
sugars of this crop can be effected, and without permission from which no sugar of | 
this crop can be exported. This decree would not go into effect until after sugar _ 
mills which last year had produced 75% of the total crop of the Island had indicated — 
their willingness to abide by its terms. The allegiance of a_ sufficient number of — 
mills was not secured until a week ago today, so that it was not possible for Secretary 
of Agriculture General Agramonte to announce that the decree was in operation until — 
last Tuesday, the 22nd, at which time mills which last year had produced 21,160,826 — 
bags had expressed their conformity with the terms of the decree and their willing: 
ness to abide by them. 
The effect of the decree was instantaneous. Immediately preceding its publica-_ 
tion, sugar had been sold as low, we believe, as 35ge per lb. c. & f. New York, but — 
immediately after its publication the market became firmer and the price rose until 
sales were made as high as 4%ec, after which the market has apparently become 
stable at 4%,¢. Sales of a considerable volume of sugar have been reported to Japan — 
at 4.6c f. 0. b. Cuba, with further sales to Northern interests at 4%c¢c « & f. New 
York. The greatest change, however, brought about has been that the Northern 
refiners, instead of continuing their former attitude of waiting in order to give 6 r 
producers an opportunity to further bid down the market against themselves, have 
begun purchasing for future requirements, the sales effected during the last two | 
weeks having been, we believe, fully as great. if not much greater, than during the 
entire preceding month. The decree has been issued without the slightest idea of” 
fixing any given price, but merely for the purpose of preventing the competition 
among sellers which would have resulted so disastrously. It is the purpose of the 
committee to offer Cuba’s sugar gradually as the markets can take it, at a price On 
a parity with that being obtained in these markets for sugars of other countri 
or even at a price at a shade below, thus preventing a repetition of what occurre 
United States through the determined holding on the part of Cuba of her unso 
remnant of the crop at prices which were ridiculous. 
