10 THE CUBA REVIEW 



Havana Correspondence 



Havana, Cuba, November 10, 1922. 



Sugar: Owing to the increased steady demand for raw sugars during the past 

 few weeks, the remainder of the crop now held in warehouses awaiting shipment is 

 rapidly diminishing. If the demand continues for a short time longer, which it shows 

 every indication of doing, there will be very little, if any, left-over sugar at the begin- 

 ning of the next zafra. 



Weather conditions have been very favorable for this season of the year. The 

 island has been fortunate in not having had any severe storms during the cyclonic 

 period. Reports received from various parts of the island indicate that the cane is 

 growing rapidly, and a number of the mills plan to start the grinding season much 

 earlier than last year. 



Last season's crop far exceeded the most sanguine estimates of sugar experts, and 

 with the gradual resumption of normal conditions in the industry it may be safely 

 predicted that one of the largest sugar crops ever produced in Cuba will be harvested 

 this season. 



Necessary cleaning and planting is going along very nicely throughout all parts of 

 the country, and now that the period of readjustment is practically over the industry 

 is in a position to operate along normal lines for the first time since the outbreak of 

 the war. Wages paid the cane cutters will be much lower than last season, and with 

 the anticipated increase in the price of raw sugar over the low figure encountered during 

 the early period of this season, it is expected that the coming season will show a fair 

 profit to all the planters and colonos. This prosperity will result in increased sales of 

 much needed machinery and supplies, and will have a very beneficial effect on general 

 business throughout the island. 



Financial Situation: After a prolonged discussion lasting over more than a 

 year, the loan bill has finally been passed by both branches of the legislative body and 

 has been approved by the President. The greatest obstacle in the way of the passing 

 of this loan measure was the demand made by the accredited representative of the 

 Washington administration, General Crowder, for certain reforms in the existing laws 

 before official sanction would be given. 



The amount decided upon is $50,000,000 and will be used for the purpose of paying 

 off past obligations, much needed government work, including the repairing and making 

 of new highways, and the payment of back salaries to Government employes. It has 

 not yet been determined just what banking house will handle this loan, but in all 

 probability it will be the house of J. P. Morgan & Company. 



The securing of this loan, together with the buoyant price of sugar, which will in 

 all probability continue, augurs well for the future, and next year promises the return 

 of pre-war conditons in every line of activity. 



Former Governor W. P. G. Harding, of the Federal Reserve Board, has been named 

 by President Harding to assist the Cuban Government in making a national audit of 

 the Government finances up to July 1, 1922, which is one of the pre-requisites of the 

 loan, so that the financial position of the country may be known and provision made 

 for the securance of the loan. 



To provide for the raising of sufficient funds to meet the interest requirements and 

 to provide for a sinking fund for this bond issue, a new law known as the "Cuban 

 Loan and One Per Cent. Tax Law" has been passed, which provides for specific revenue 

 to meet the requirements. The preparation of this new tax law has been carried out 

 under the direction of Mr. John S. Hord, assisted by Mr. Carl G. Clifford, with the 

 assistance of the American and Cuban Chambers of Commerce. 



It is hoped that Governor Harding will make some recommendations during his stay 

 in Cuba with regard to the banking situation, as the way in which the work of 

 liquidation of the banks which failed nearly a year and a half ago is still dragging along 



