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10 THE CUBA REVIEW 
It is generally conceded that the small measure of relief afforded by the Cuba Finance 
and Export Company, which some time ago loaned some $20,000,000 to the planters, 
was of little value, the amount in question being entirely inadequate to meet the ex- 
igencies of the occasion. It is held that it will be necessary to secure a loan of approx- 
imately a hundred million dollars to stabilize conditions sufficiently to tide the sugar 
interests over the present aggravated situation. All of the various measures of relief 
are being given serious and careful consideration by the administration and by foreign 
and local financial interests, and it is earnestly hoped that some concrete measure of pro- 
tection and relief may be secured which will again place the sugar industry of Cuba on 
a more solid foundation. 
Rumors have been current for some time with regard to propaganda existing in 
some parts of the United States advising against the purchase of Cuban sugar, and while 
this propaganda, if it exists, could do but little harm, it nevertheless has been the subject 
of some rather caustic comments by the Cuban press. It has been impossible to trace 
the sources of these attacks upon the Cuban sugar industry. 
FINANCIAL Srruation: While the outlook at present is far from encouraging, 
prevailing sentiment in financial circles is assuming a more optimistic trend than it has 
for some time, due to a feeling that the worst has already been realized and that any fu- 
ture change must necessarily be in the direction of a betterment of financial conditions. 
The chaos which has prevailed for several months has been relieved somewhat by the 
lifting of the moratorium, as well as by the work of the liquidation committee which has 
been at work on the books of the several insolvent banking institutions. A report of the 
findings of this committee is expected at an early date. One of these institutions, the 
Banco Nacional de Cuba, which was among the first to succumb after the moratorium 
went into effect, has already announced its intention of effecting a reorganization and 
again opening its doors. As to whether or not its example will be followed by the other 
institutions which are now under process of liquidation will not be known until the 
exact state of their condition is ascertained. 
Almost daily conferences are being held between the administration and the con- 
gressional leaders with the object of devising some plan for the securing of funds with 
which to provide revenue for government operation and for the relief of the sugar and 
other industries. It has not as yet been determined just what plan will eventually be 
followed, but it is believed that arrangements will be made for the securing of a loan of 
sufficient magnitude from New York banking interests, which will afford relief until con- 
ditions again become normal. The amount of money required for this purpose has been 
variously estimated at anywhere from $50,000,000 to $100,000,000. 
General Crowder’s report to his government at Washington has been the subject of 
much speculation as to what recommendations and suggestions were contained therein, 
and while this report has to date not been made public, belief is expressed that some 
concrete suggestions were contained therein for the relief of the present situation. Gen- 
eral Crowder is continuing in his advisory capacity to the present administration and is 
being frequently called upon for consultation when conferences on financial problems 
between the administration and members of the legislature are held. 
That there must be some changes made in the present banking laws is generally 
admitted. The crisis through which the Island is now passing has brought the matter 
forcibly to the attention of political and commercial interests, and the necessity for legis- 
lation tending to strengthen the banking laws and enabling the government to exercise 
more control over the banks is recognized, for it is now being realized that one of the 
fundamental principles of a successful banking institution is the confidence which it 
enjoys. Under the present laws entirely too much opportunity is afforded for over-spec- 
ulation, wild-cat financing and dishonest banking methods, with an utter disregard for 
the trust which is vested in a bank handling the people’s money. 
As a result of the findings of the Superior Banking Commission which is now in- 
vestigating the affairs of the insolvent banks, it is hinted that criminal prosecutions will 
be instituted in some cases where it has been found that “irregularities” have occurred. 
