T II E C U B A RE r I E ff 2 1 



Reciprocity Treaty with the United States giving Cuba an additional preferential, would 

 be most desirable. 



The year that we are reviewing has been a remarkable one on account of the 

 number of records that have been broken. In the first place, and notwithstanding the 

 very moderate estimates of production that were made at the beginning of the crop, 

 the largest total sugar crop ever made in Cuba was turned out. this having been 3,996,- 

 189 tons, these figures comparing with 3,935,483 tons the previous year, and 3,728,975 

 tons in 1920. the only previous approximation to the high yield of the past year having 

 been 3,967.094 tons in 1919. In the second place, the largest number of bags ever turned 

 out by one mill were produced by ''Delicias" with an out-turn of 1,047,643 bags, the 

 only other mills approximating these figures being "Preston" with 702,181 bags and 

 "Chaparra"' with 682,600 bags. We believe that previous to this the record out-turn 

 had been held by "Delicias" with 768,378 bags turned out in the crop of 1920-1921. A 

 third record broken was that of commercial extraction during the crop, this for the 

 entire Island having been 11.77 per cent., 086 per cent, higher than last year. 



Among the other important events occurring during the year under review has 

 been the placing by Cuba with financiers of the United States of a loan of $50,000,000, 

 these funds to be utilized for the purpose of clearing up to the greatest extent possible 

 a "floating debt" contracted by our Government during the speculative period of good 

 sugar prices. Talk regarding this loan occurred during the spring and summer of last 

 year, but a determination of the conditions to govern it was not reached until September, 

 with the result that the final bill authorizing the loan was not passed by the House of 

 Representatives until the week ending September 29th. In October the Senate passed 

 the bill, and bids were finally called for on December 2 2d, these bids to be opened 

 publicly at 10 o'clock on January 12th of this year. Upon the opening of the three bids 

 presented for consideration, that one made by the banking house of J. P. Morgan was 

 found not only to be the highest, but to be extremely favorable, indicating the complete 

 confidence of this firm and of the other northern financiers associated therewith in 

 Cuba's future, the bid providing for the purchase of the entire issue of $50,000,000 

 of 5y2 per cent, bonds at $96.77, the bid also providing that the interest of the bonds 

 between the date of issuing and the date of actual payment would be rebated to Cuba's 

 Government. The best of the other two offers was that made by Speyer & Co. to 

 purchase the bond at $93.57. When the price at which these bonds were disposed of 

 is compared with those at which other South American Governments have sold their 

 issues bearing a much higher interest rate, the credit standing of Cuba's Government 

 stands out very favorably. The money from these bonds has already begun to circulate 

 in Cuba, and, combined with the returns from sales of new crop sugars, is creating an 

 activity in business which contrasts quite favorably with that prevailing previous to the 

 first of the year. 



In the individual operating units composing our sugar industry, little transforma- 

 tion has taken place during the year. Only recently have the prospects become suffi- 

 ciently bright to admit of thoughts of other than the making of the most imperative 

 repairs and installations indispensable to fairly effective operation. In some cases 

 apparatus already on the ground purchased during the brighter period preceding our 

 crisis, has been installed, but we know of only two instances in which extensive trans- 

 forination has been undertaken, these being in the mills of the United Fruit Co. in 

 Oriente Province, where at "Boston" and "Preston" the work has begun of electrifying 

 all operations with the exception of the crushers and the mills. This work has been car- 

 ried on gradually in such a manner as not to interrupt active operations, it being in 

 charge of Mendoza & Co., of Havana. We understand that the electrification of these 

 mills increases the percentage of mills thus electrified in Cuba to such an extent that 

 70 per cent, of our sugar crop is now made in electrified mills. 



This brings us to a consideration of the crop now being made in Cuba. The very 

 small excess of profit over production cost with the consequent dilatory return to our 

 financial interests of the sums which they had advanced to our sugar producers, rendered 



