THE CUBA REVIEW 9 
Havana Correspondence 
July 20th, 1921. 
Suear: With the advent of the rainy season, all but a very small proportion of 
the sugar centrals throughout the Island have ceased grinding cane; the mills still con- 
tinuing to grind number less than a dozen, and with the exception of possibly four or 
five of the larger centrals which will continue to grind until August, this will complete 
the 1921 grinding season. From the standpoint of productivity, this season has been one 
of the most successful ever experienced, the total tonnage exceeding that of last year, 
which had heretofore been regarded as a banner season, by some 200,000 tons, and had 
the price of raw sugar not taken the remarkable slump which it did, it would have meant 
that Cuba would be experiencing untold prosperity rather than a demoralization of in- 
dustry. 
Any attempt to prophesy what the situation will be next season would be little more 
than guesswork and it is difficult indeed to find anyone who is willing to venture a hazard, 
in view of the utter chaos existing in financial, political and industrial circles at the pres- 
ent time. That next season’s crop will be greatly diminished is generally admitted, for 
the reason that thousands of acres of cane land are being allowed to grow up with weeds, 
because of the inability of the owners to secure funds for the cultivation of these immense 
tracts. It is also true that unless conditions improve considerably by the time the next 
grinding season begins, many centrals will lack funds with which to operate. When 
consideration is given to the fact that practically three-fifths of this season’s crop is still 
being held in warehouses awaiting a market, and that the price which is being paid for’ 
this sugar is much below the actual cost of production, it is difficult to predict in what 
position these centrals will be at the beginning of the next season. 
That something must be done by the government or private financial interests to 
afford relief to the planters is generally conceded. However, just what form this relief 
will take is causing a great deal of discussion and many plans have been advanced by 
political and financial interests, none of which have as yet been given more than brief 
consideration. One of the measures of relief most prominently mentioned has been the 
suggestion that the government purchase a million tons of sugar, paying for same in 
interest-bearing bonds or certificates of purchase, and withdrawing this amount of sugar 
from the market for an indefinite period, or until such time as a better market prevails. 
Just whether or not this plan would afford the right measure of relief is questionable and 
at the same time would place an additional burden on the government at a time when it 
is in none too strong a position to bear any additional financial responsibilities. 
As stated before, some action looking to the interest of the relief of the planters must 
be taken if they are to be expected to continue in the sugar raising industry. As matters 
stand at present, the planter is in a very unenviable position as he is unable to find a 
ready market for his product and when he does secure a market, as stated before, the price 
he obtains is much below the cost of production; consequently, he is without adequate 
funds to liquidate his accounts, to purchase machinery for future cultivation, or to hire 
help necessary to carry on the work. Little or no assistance is rendered by the banks, and 
unless governmental or private aid is forthcoming the outlook for the future is at present 
far from promising. 
There has been a great deal of agitation of late seeking the temporary removal of 
the Sugar Finance Commission by the President. The argument advanced for such 
action is that inasmuch as the price of sugar has already reached such a low level, it 
would be practically impossible for it to go much lower, and if all the restrictions exist- 
ing at present were removed, the bulk of the crop would be moved in a shorter time than 
under present restrictions and a clear field would be secured for the handling of next 
season’s crop; also, quicker financial aid could be given to the growers than under the 
present scheme of handling by realizing ready cash upon the thousands of tons now 
being held in the warehouses, which are constantly accruing insurance and other expenses. 
