THE CUBA REVIEW 



19 



FINANCIAL MATTERS. 



Annual Report of the National Bank of Cuba. 



From the annual report recently issued is taken the following inreresting infor- 

 mation regarding the growth of the institution, its prosperity as evidenced by the 

 increase in deposits and profits, its dail}^ cash movement, and the establishment of 

 additional new branches in the island: 



The total assets of $26,700,000 is an increase of 21% in the year. The deposits 

 of $15,506,000 show an increase over 1908 of 8%, although the increase in what may 

 be classified as commercial deposits has been 27%. Attention is also directed to the 

 increase in number and proportion of depositors' accounts, which is 26%. 



The regular 8% annual dividend was paid, and the reserve increased to $900,000, 

 leaving $64,153.63 of undivided profits after providing for bad and doubiful accounts. 



Another interesting item refers to securities on deposit in the bank, placed there 

 not as collateral, but for safe keeping and for the collection of interest and dividends 

 for credit to the owners. These amount in value to nearly $2,000,000. 



The cash movement at the head office alone reached $846,000,000, an average of 

 $2,725,000 per day, an increase over 1908 of a half a million dollars per banking day 

 for the entire year. 



More building is going on, as the main banking space in Havana is inadequate, 

 and property adjoining on Cuba Street has been purchased and an extension is 

 now under construction. 



The branch ofifices at Santiago de Cuba and Cienfuegos occupy new buildings, 

 and other edifices are nearing completion at Matanzas and Pinar del Rio. These 

 new structures have attracted universal attention and have had a permanent effect 

 upon the architecture of Cuba. 



The Bank now has 19 branches in Cuba, having recently established offices 

 in Havana, at the Produce Exchange building, and also in Cruces, Ciego de Avila 

 and Holguin. 



The annual statement of the National 

 Bank of Cuba to December 31, 1909, is as 

 follows: 



Assets. 



Cash in Vaults $5,361,996.68 



Due from Banks and Bank- 

 ers 1,429,215.85 



Remittances in Transit 759,196.30 



Government and City Bonds 3,491,769.67 



Other Bonds 359,393.68 



Loans, Discounts, Time 



Bills, etc. 12,542,033.61 



Bank Buildings and Real 



Estate 763,440.70 



Furniture and Fixtures 81,736.32 



Sundry Accounts 41,048.72 



Securities on Deposit 1,943,960.55 



$26,773,792.08 



Liabilities. 



Capital, Surplus and Undi- 

 vided Profits $6,164,153.63 



Due to Banks and Bankers. 3,159,020.01 



Deposits 15.506,657.89 



Deposits (Securities) 1,943,960.55 



$26,773,792.C 



American Confidence in Cuba. 



At the opening of the week of March 

 5 an offering of $5,500,000 Cuban 4^% 

 bonds, placed on the market at 91^, 

 to yield 4.6%, was over-subscribed to 

 such an extent that the subscription books 

 were closed thirty hours before the 

 scheduled time. 



There has been a discrimination 

 against South American bonds in favor 

 of Cuban offerings and this is fairly well 

 understood. It is that the American in- 

 vestor not only has confidence in the 

 ability of the Island Republic to repay 

 its debt at maturity with principal in- 

 tact and with all interest payments fully 

 met, but that he feels doubly assured as 

 to the safety of the investment, as the 

 Cuban bond issue has the sanction of the 

 United States Government, which 

 amounts virtually to a guarantee. Under 

 the terms of the decree authorizing the 

 issue, Charles E. IMagoon, Provisional 

 Governor of Cuba, made clear the pur- 

 poses and restrictions of the issue, and 

 saw to it that ample provision was made 

 to insure the payment of interest on the 

 bonds, and to form a sinking fund for 

 the authorization of the loan. The 

 Cuban bonds are, therefore, in the nature 

 of an American bond, with safeguards 

 equal to those of many of the best bonds 

 listed on the market. — Wall Street 

 (N. Y.) Summary. 



