10 THE CUBA REVIEW 
: 
Havana Correspondence 
Havana, May 23, 1921. 
Sucar: Unusually favorable weather conditions during the month permitted the 
continuous grinding of cane, which is very encouraging indeed in view of the business 
depression which is being experienced throughout the Island. Unfortunately, owing 
to the strike on the Cuba Railroad, practically all of the centrals located in the eastern 
part of the Island were compelled to close down for a few days because of their inability 
to get the sugar transported to the ports for shipment. The Cuba Railroad is the only 
means of transportation for this part of the Island and the centrals are dependent upon 
this railroad for handling their sugars to port of shipment. As a consequence of the 
complete tie-up of the Cuba Railroad, considerable congestion is. being experienced at 
the ports. 
As an indication of the healthy growth of the sugar industry in Cuba, despite the 
handicap encountered by reason of the financial stringency through which the Island 
has been passing, it may be noted that there are 194 centrals grinding cane at the present 
time, as compared with 168 at this period last year. This fact is very encouraging and is, 
no doubt, the forerunner of a return to normal conditions. 
Opposition to the Fordney Emergency Tariff measure is growing, and the Chamber 
of Commerce has gone on record decisively against the discrimination against Cuban 
exports which this measure would invoke. It is felt by the leading business and agri- 
cultural interests of the Island that the enactment of this law will prove a serious mistake 
and be a great detriment to the future development of the Island. 
To relieve financial stringency affecting the sugar industry, a corporation was formed 
by American bankers bearing the name ‘‘Cuba Finance and Export Company” for the 
distribution of some $20,000,000.00 at 10% interest among the industry as a means of 
relieving the financial situation. When it is realized that there are thousands and thou- 
sands of tons of sugar in warehouses at every port of the Island, some idea of the financial 
stringency may be gathered. The Sugar Finance Committee, which has governmental 
sanction, would seem to be making a strenuous effort to release these sugars propor- 
tionately, but much criticism has been heaped upon this committee as to the methods 
employed. The committee was originally organized for the purpose of regulating the price 
of Cuban sugars and the idea was well conceived but it now develops that, in its effort to 
maintain prices, it finds itself somewhat embarrassed because other sources of supply 
are under-selling Cuban sugar producers and the natural consequence is the condition 
above referred to—the overcrowding of warehouses with sugars awaiting sale and export. 
Many maintain, and we believe their point is a strong one, that it would have been 
better for the sugar industry of Cuba to have remained uncontrolled since, although it 
is admitted that the price would undoubtedly have been slightly less than that which is 
being received, the sugars would have moved more promptly and afforded the growers 
and sugar mills more ready money with which to operate. This operation would doubt- 
less have been conducted with a slight net loss, and relief would have been afforded to 
the interior of the Island which, to say the least, is indeed much needed at this time. 
Conditions in the interior of the Island are much more grave than many have any 
idea of; laborers in the fields remain unpaid, owners of sugar lands have received only 
partial payment for their product from the sugar mills, and the mills in turn have only 
been able to sell portions of their finished product to the northern refineries. The net 
result is that Cuba today is face to face with the proposition of furnishing relief to the 
great masses of laborers and employers of labor throughout the Island, and a condition 
of starvation is vaguely visible in the distance. As a result of the financial stringency 
throughout the Island, business generally is chaotic and what the future holds forth for 
Cuba is only to be guessed at. Among the best informed it is frankly admitted that a 
betterment of conditions will not be effected until the end of the next grinding, when 
conditions will have been adjusted to the new scale of low prices. 
