T H E CUB A RE V lEW 15 



so that during the week ending December 16th prices ranged between 3 13/16 and 3^ 

 cents, later dropping through 3^)4 cents for December delivery to 3^^ cents for delivery 

 during the second half of January. An easier tone prevailed during January, sugars 

 easing off to 3^^ cents for prompt delivery, February selling at 3 7/16 cents, and 

 slightly later sugars for February-March delivery going at 3^ cents, these prices easing 

 off again later on to as low as 3^4 cents for prompt late January delivery. In the latter 

 part of January, however, firmness again manifested itself, with prices slowly rising 

 from 334 to 3 7/16 cents for prompt delivery sugar. In early February, greater activ- 

 ity manifested itself, some 528,000 bags being sold at 3 7/16 to 3^4 cents. During 

 the next week ending February 10th, extreme and unlooked-for activity prevailed, largely 

 the result of speculators entering the market, induced by statements from the United 

 States Bureau of Commerce interpreted to mean that the supply of sugar for the world 

 was not sufficient to fill the demand, some 600,000 bags being dealt in at prices rising 

 very rapidly from 3 11/16 to 4 5/16 cents c. & f. Monday of the following week being 

 a holiday, the markets of the North were closed, but on Tuesday sales of some 185,000 

 bags were made d.t Syi cents, after which, however, the price fell rapidly, reaching AY^. 

 cents. From this point, however, it rose steadily on relatively small transactions 

 through 5 cents to 5 1/6 cents c. & f. During the present week, however, weakness has 

 again manifested itself, sales having been made yesterday of a considerable quantity of 

 sugars at prices beginning at 5 cents, gradually easing off till sales were made at 4^ 

 cents c. & f. for delivery in March, though later in the day operators entered the market 

 purchasing some 24,000 bags at prices ultimately reaching 4 15/16 cents c. & f. 



To any one at all familiar with the importance of the sugar industry in Cuba and 

 its relation to the general welfare of the country, the preceding outline of prices will give 

 an indication of the change in hopes and conditions that would be caused by them. It 

 can perhaps be roughly stated that the cost of sugar production in Cuba rarely is 

 greater than 2}^ cents per pound. Those mills having a greater production cost have in 

 reality ncv reason for their existence, as only on account of their being in highly com- 

 petitive cane territory or in situations to and from which transportation is costly, can 

 their costs run up to a figure greater than the above. The outline given above goes, 

 therefore, to show that from a non-profitable basis in December, 1921, sugars steadily 

 advanced to a basis at least avoiding loss, this price being reached finally early in 1922, 

 the prices beginning to show profits by the time the majority of our mills had com- 

 pleted their 1921-1922 crop. In connection with this firmness and strength in sugar 

 prices must be considered the facts that as of January 1. 1922, there were probably in 

 Cuba 1,200,000 tons of old crop sugars, and that as of the last of May, 1922, indis- 

 putable evidence had been obtained that the crop then about to be finished- would not 

 be the rather small one indicated by the early estimates of from 3,000,000 to 3,500,000 

 tons, but would very probably equal, if not surpass, the largest crop ever made in Cuba's 

 history. To the thinking cane or sugar producer, the fact that an extremely heavy crop 

 added to the largest carry-over of sugar ever known had not brought about lack of 

 demand and consequent weakness in prices, but, on the contrary, had been disposed of 

 at prices always firm and frequently steadily advancing, would be demonstration suffi- 

 cient that the industry upon which his welfare depended was founded upon a rock, 

 and that good times were ahead. To our financiers the same thing was evident, with 

 the result that our banking institutions, though probably recovering as the season pro- 

 gressed only a relatively small surplus above the sums advanced to our sugar manu- 

 facturers for the making of the crop, eased up on credits, thus permitting our cane 

 growers to care in a better manner for the fields already planted, and in many instances 

 allowing large areas of new land to be prepared and planted. Our sugar mill owners 

 were also placed in position to make the most indispensable repairs. This feehng of 

 optimism has increased steadily as the entire carry-over of old crop sugars disappeared, 

 and as the additions to the supplies represented by the new crop sugars being made 

 also were taken with the greatest rapidity ever known. Something less than 50,000 

 tons of new crop sugars being in stock in our ports on November 2 7th, when the first 



