THE CUBA REVIEW 19 



over 100 American vessels, besides a great number of vessels of other nationalities, 

 were tied up at Habana for months, unable to discharge their cargoes. In several 

 cases the accounts against these ships amounted to so much that they were abandoned 

 and have either been sold for nominal sums, insufficient to even pay the wages of 

 the crews, or are still waiting the decision of the courts. 



Merchants found themselves burdened with large stocks of goods of all classes 

 for which the market had suddenly stopped, as a result of the general lack of funds 

 for any purchases other than absolute necessities. The results were disastrous. Houses 

 ordinarily doing an excellent business, with normal monthly sales amounting to thou- 

 sands of dollars, were unable to sell more than a few hundred dollars' w^orth of goods 

 in a month, not sufficient to pay overhead expenses. They could not collect the large 

 accounts due them, and their creditors pressed for payment. The banks could not 

 make advances, and later, in 1921, when many of the Cuban banks had to suspend 

 payment, a great number of firms were placed in serious difficulties by the suspensions. 

 Many firms had to close their doors, either suspending payment or going into actual 

 bankruptcy. 



It should be stated here, however, that in many instances the foreign creditors of 

 Cuban firms, important clients with whom l^rge volumes of satisfactory business had 

 been transacted for many years, did all in their power to help them tide over the 

 crisis. They allowed orders to be canceled and goods already shipped to be sent back, 

 and also suspended collections of their claims, granting all possible extensions, or 

 accepted payment with a heavy discount. 



The enactment of the emergency tariff act in 1921, increasing the duty on Cuban 

 and other sugars, seriously affected the sale of sugar, and came at a most unfortunate 

 time for the Cuban exporter. 



Favorable Prospects for Immediate Future 



However, the outlook is now much brighter. Shipments since January 1, 1922, 

 amounting to over 4,500,000 tons, including 1,200,000 tons of the old crop, are greater 

 than during any previous years for the same period. There seems to be every likelihood 

 that the 1922 season will have a successful conclusion with satisfactory prices. If this 

 happens, there is no reason why conditions should not improve, nor why Cuba should 

 not resume its position as one of the most important purchasers of American products. 

 Considerable activity in certain lines of imports is reported since January 1, 1922, 

 particularly construction materials, including lumber, iron and steel, cement, and 

 cheap cotton textiles. Also a number of low-priced automobiles have been imported. 



At present there are two tariff revision proposals under consideration, one of 

 which, known as the congressional tariff measure, is now being discussed by Congress. 

 The other is a measure prepared by a special committee appointed by the President 

 of Cuba and known as the Hord tariff measure. It is probable that a new tariff will 

 be adopted, since it is recognized that the present one is inadequate from a revenue 

 point of view. Besides, it is the wish of many Cubans to protect certain home industries, 

 such as the manufacture of cement, shoes, soap, etc. The congressional measure is 

 framed with a view to such protection, as well as that of increasing the revenue. 



Heavy stocks of all classes of merchandise which were left on the hands of the 

 importers are a serious obstacle in the road of normal trade and a resumption of 

 ordinary importations. It is evident from the imports thus far in 1922 that many of 

 the lines of goods are now sold out, generally at heavily reduced prices, and that there 

 should be a steady demand for at least those articles which are not classed as luxuries. 

 The public, however, is yet in very straitened circumstances as regards ready money, 

 and it will be a considerable period before the sale of articles not actually necessary 

 will be important. 



In general there have been considerable reductions in living expenses during the 

 past year, though they are still high, especially rents of ordinary houses. Salaries 

 have been reduced and the number of persons seeking employment is in excess of 



