THO CUBA hE VAIL, W 31 
Sugar Review 
Specially written for THE CUBA REVIEW by Willett & Gray, New York, N. Y. 
Since our last review of the sugar market, which was dated June 24th, the Per- 
manent Tariff Bill has been introduced in Congress and has in fact already been passed 
by the House. This bill maintains the same rates on sugar as are now prevailing under 
the Emergency Tariff, say for 96° test sugars, 1.60c. on Cubas and 2c’ per pound on 
full duty sugars. 
CUBA AND THE PERMANENT Tarirr.—The progress of the Permanent Tariff bill is 
given in our Washington telegrams and from which it will be noted that considerable 
criticism and objection has been made to many items in the bill, our advices stating that 
fully one hundred amendments are pending up to this writing. As far as the clause 
allowing the importation of dutiable sugars at a concession of 25% under special con- 
ditions is concerned, we can find no argument in its favor and it is not likely to be passed. 
In the meantime it might be well to consider the high duties assessed in the Permanent 
Tariff bill on sugar. For an Emergency Act the rates named are probably satisfactory, 
but for a Tariff bill that is expected to be in force for some period of time the rates in our 
opinion are too high. For instance, on 96° test Cuban sugar the duty is 1.60c. a pound 
which, based on our present market price of 4?6c. duty paid, makes the duty on Cuban 
sugars 60%, which is too high for a commodity as extensively used as sugar and,actually 
puts sugar in the luxury class as far as duty percentage is concerned. For sugars that 
pay the full tariff rate the percentage is even higher, reaching close to 80% on our present 
basis. Under the old tariff the rates based on present market prices were about 35% 
and 50% respectively. 
There has been considerable negotiation between United States bankers and Cuban 
bankers and Cuban sugar producers and into which negotiations have been brought 
United States Government officials, in order to devise some means that would relieve 
the distressing conditions in Cuba. It seems surprising, but it is nevertheless a fact, that 
while our American bankers and government officials are doing everything possible to 
relieve conditions in Cuba, Congress does just the opposite and increases the duty on 
Cuban sugars 60c. a 100 pounds, thus making it all the more difficult for Cuba to dispose 
of its sugars. The U. S. Government, under what is known as the Platt Amendment, 
is virtually the protector of the Cuban Government and as this Platt Amendment is 
still in force it seems reasonable to expect that the U. 8. Government should exert more 
of an effort to alleviate the extremely bad conditions in Cuba. The wording of the 
Platt Amendment is as follows: 
“Sec. 7679—III. Intervention by United States—That the government of Cuba 
consents that the United States may exercise the right to intervene for the preservation 
of Cuban independence, the maintenance of a government adequate for the protection 
of life, property, and individual liberty, and for discharging the obligations with respect 
to Cuba imposed by the Treaty of Paris on the United States, now to be assumed and 
undertaken by the government of Cuba.”’ 
The change in conditions in Cuba from the very high prices in 1920 to the extremely 
low levels now obtaining throughout the Island has brought about the failure and liquida- 
tion of three of the largest Cuban banks having branches throughout the Island, leaving 
only the branches of the Canadian and American banks able to do business. Naturally 
the sugar estates upon finishing their crops discharged all the laborers who were engaged 
in cutting cane, etc., in thousands of instances leaving these men out of work and 
unable to support their families. Laborers, who in 1920 had been getting $5.00 to $6.00 
a day are now, it is said, willing to work for just enough to obtain sufficient to eat. The 
foreign laborers, such as the Spanish, Jamaicans, and Haitians are entirely destitute and 
are unable to leave the Island for the reason that they have not sufficient funds to engage 
their passage home. All these conditions are causing much worriment to owners of prop- 
erty in Cuba and as the government is also badly in need of funds, practically all sources 
