26 THE CUB A RE V I EW 



been financed by borrowed money and that prompt sales were necessary to liquidate the 

 indebtedness thus incurred. The violent fluctuations in sugar had, at that time, to a 

 great extent, discredited it as a commodity on which to secure loans, and many lenders 

 were insistent upon a prompt reduction of loans against sugar. This led to sharp declines 

 to ly^c. c. and f., from which level as the urgency of liquidation spent itself, prices 

 gradually rose to the present price of 4c. c. and f. 



The ability of the Island of Cuba to produce a record crop in 1921 is a remarkable 

 example of its ability to adapt itself to changing conditions. During that year, practically 

 all the Cuban local banks were compelled to close their doors and the Cuban producer 

 was left without the local banking co-operation on which he had for years relied, but in 

 spite of this fact a record crop of 4,000,000 tons was made. 



In the last Annual Report it was stated that the statistical situation of sugar was 

 unfavorable "if the Western Hemisphere alone is taken into account, but not unfavorable 

 if the world at large is considered'' and the prediction was hazarded that "if the surplus 

 of over 1,000,000 tons of sugar now held in Cuba were spread, as it normally would 

 have been over the United States, Great Britain, France and Germany, it would not have 

 attracted attention, being but a normal supply, and hence would not have had the same 

 depressing effect on prices." This is what actually did occur as soon as a free market 

 was restored and the accumulation of sugars in Cuba was spread over the world. The 

 normal demand of the world proved rather more than sufficient to absorb Cuban pro- 

 duction and present statistics indicate that by December 1, 1922. there will be practically 

 no sugar left in Cuba, and less than a normal reserve in the United States. It was to 

 have been expected, but it is nevertheless interesting to note, that after making due 

 allowance for the large export of refined sugar from the United States during 1921, the 

 sugar consumption in this country has shown a marked increase, and yet, if t'e usual 

 annual rate of increase in consumption prior to 1914 had continued from 1914 to 1922, 

 the consumption during 1921 would have been still greater. 



The Consolidated Balance Sheet as of September 30, 1922, together with Profit and 

 Loss and Surplus Accounts for the vear ended that date, certified by the Corporation's 

 Auditors, Messrs. Deloitte, Plender, Griffiths & Co., and the Comparative Financial 

 Statement will be found appended hereto. 



Acknowledgment is made of the loyal co-operation of all officers and employees 

 during the year. 



Your directors look forward with confidence to the future. 

 Respectfully submitted. 



By order of the Board of Directors, 



W. E. Ogilvie, 



President. 



COMPARATIVE CONSOLIDATED BALANCE SHEET— SEPTEMBER 30, 1922 



ASSETS . Sept. 30, 1922 . . Sept. 30, 1921 > 



Properties and Plants §94,744,797.92 893,169,113.60 



Investments 297,830.00 569,000.00 



Current Assets, Advances to Col- 

 ONOS AND Growing Cane: 

 Cultivations— Company Cane. . . . $1,796,505.94 81,943,224. 15 



Materials and Supplies 3,015,556.34 3,858,437.86 



Advances to Colonos, less Reserve 



for Doubtful Accounts 7,952,356.09 7,318,064.37 



Advances to Stores and Sundry 



Advances 141,255.68 289,591.86 



Sugars on Hand, 1922 crop, sold 



and undelivered, at sales prices. 701,091 .51 15,297,755.17 



Sugar Finance Committee 1,801,785.92 



Molasses on Hand 51,248.44 246,361.59 



