24 



THE CUBA RE VI E W 



CONSOLIDATED SlUriAS ACCOUNT 



For the Year iMuHug September 30, 1915. 



As at October 1, 11(14 $3,894,157.17 



Add: 



♦Collateral Trust Bonds cancelled llirounh the Siiikiiifi 



Fund (see below) $179,()()().()0 



Profit for the year ending September 30, 1915, per annexed 



account 5,594,047.97 



5,773,047.97 



$9,667,205.14 



Deduct: 



Dividends on 7 per cent. Preferred Stock: 



Paid January 2, 1915, for three months to January 1, 1914 $138,141.50 



Paid April 1, 1915, for three months to April 1, 1914 138,141.50 



Paid Jidy 1, 1915, for six months to October 1, 1914 276,283.00 



Paid October 1 , 1915, for twelve months to October 1,1915 552,566.00 



$1,105,132.00 



Sinking Fimd Provisions for the cancellation of Collateral 



Trust Bonds (see above) 27(),2S3.()() 



Special Appro])riation for Depreciation of Buildings, Ma- 



chinerv and Equipment 2,000,000.00 



3,381,415.00 



Suri)lus at September 30, 1915 $6,285,790.14 



* In October. 1915, bonds of the par value of $13S,0()() were retired out of the Sinking 

 Fund for redemption of Bonds which are not included in the figure of $179,000. 



FINANCING CUBAN CREDITS 



In order to hold, after the return of normal 

 conditions, a substantial part of the in- 

 creased business that has fallen to their share 

 as a result of the jiresent war, American ex- 

 porters must be prepared to offer terins at 

 least api)roximating those heretofore granted 

 by Eurojjeans. 



The matter of arranging the financing of the 

 credit is verj^ simple. Drafts at 60 to 90 days 

 sight on the Cuban importer are forwarded 

 with the shipping documents through the 

 shipper's bank anil will t)e presented to the 

 Cuban buyer by the correspondent of the 

 forwarding bank. The Cuban accepts the 

 draft and gets the documents entitling him to 

 the goods. The bank holding the accepted 

 draft may then return the acceptance to its 

 correspondent in the United States, and the 

 owner of the draft can use it as collateral or 

 sell it at prevailing discount rates (under the 

 Federal reserve banking act an accepted draft 

 of the sort becomes a negotiable instrument), 



or if the shii)pcr prefers, the Cuban correspon- 

 dent bank will retain the draft for collection 

 and remittance of the payment it calls for in 

 due course, or it is possible that a loan may 

 be negotiated with the Cuban l)ank, with the 

 accepted draft as collateral. 



The al)ove embraces the customary pro- 

 cedure of Em'opeans, and handling paper of 

 the sort is one of the well-recognized activi- 

 ties of foreign banks. Until the Federal 

 Reserve Act passed American banks were 

 not, as a rule, familiar with paper of the sort, 

 and it had not the .status now given it. All 

 Cuban transactions are in dollars, the Cuban 

 currency and that of the United States cir- 

 culating interchangeably and on exact parity. 

 — Special Ageid Garrard Harris. 



NEW STATIONS 



New telegraph stations have been estab- 

 lished at Falla and at Cespedes, in the Pro- 

 vince of Camaguey. 



