JES II. SCO Jas al RIG NA IIR AY. 11 
FINANCIAL SiTuATION: It is believed by well-informed persons closely connected 
with finance that the financial situation at the present time is much more acute than 
at any time since the enaction of the Moratorium. During the past few weeks there 
has been a flurry in financial circles which resulted in a run on three private banking 
institutions. One of them was compelled to close its doors after the first day. It is 
believed that confidence is being gradually restored and that these runs are now about 
over. 
Sr. José Marimon of the Banco Espafiol de la Isla de Cuba, who has been in New 
York for some time in connection with the arrangement of financial aid for his institu- 
tion, recently sailed for Europe to complete further negotiations for the securing of funds 
for the Banco Espaiiol. 
The Havana Clearing House, a project which has been under contemplation by bank- 
ing interests for some time, has finally been put into operation and has offices in the Trust 
Company of Cuba Building at Aguiar 71. The full membership of banks represented, 
is as follows: 
N. Gelats & Co. 
Pedro Gomez Mena é Hijo 
The Royal Bank of Canada 
The Trust Company of Cuba 
Banco Mercantil Americano de Cuba 
National City Bank of New York 
American Foreign Banking Corporation 
Banco del Comercio 
Canadian Bank of Commerce 
Before commencing operations it was decided to obtain the services of an expert on 
the subject, and Mr. Clarence E. Bacon, Assistant Manager of the New York Clearing 
House, was invited to come to Cuba and organize the work. The clearings during the first 
ten days have averaged approximately $3,000,000, and Mr. Bacon has expressed great 
satisfaction at the result of the first few days’ operation of the institution. 
A digest of a recent extensive report issued by the Secretary of the Treasury shows 
a balance of trade in favor of Cuba in the proportion of 32144% of the total commerce, 
determining an important balance in favor of Cuba and an average in transactions of 
$419,000.00. Estimating the sale of the present crop at anticipated figures and allow- 
ing for the decline in market prices of commodities consumed, which will tend to diminish 
the value of the imports, the report advises that the mercantile balance on June 30, 1921, 
may be safely estimated $300,000,000.00. 
As an indication of the clearing of the financial skies, the Cuba Cane Sugar Cor- 
poration, the largest sugar producing concern in the world, is planning to build a new 
central in Eastern Cuba, with an estimated output of 250,000 bags of sugar annually. 
Mr. F. C. Bailey of Joshua L. Bailey & Co., which concern enjoys a large trade in 
Cuba, in writing to the American Manufacturing Export Association, recently advised 
that in his opinion Cuban customers should not be pressed for settlements just now, giv- 
ing as his reason that such procedure would simply enforce liquidation at unfavorable 
prices and decrease the feeling of goodwill toward American houses. Mr. Bailey spoke 
very highly of the moral character of the Cuban merchants, who in the face of heavy 
losses, are doing everything to scrupulously fulfill all of their obligations as promptly 
as possible. 
Laspor Conpitions: On April 26th a strike which lasted for thirteen days was 
declared against the Cuba Railroad Company by the Union employees as the result of 
a disagreement between the railroad officials and the Union arising from the dismissal 
of several of the men for various causes. The strike, coming as it did during the height of 
the grinding season, was a most unfortunate occurrence, necessitating the closing of many 
sugar centrals in the eastern portion of the Island served exclusively by the Cuba Rail- 
road, as well as causing the enforced idleness of the laborers of the mills at a time when 
