10 THECUBAREVIEJV 



Havana Correspondence 



Havana, March 23, 1923 



Sugar: Aided by extremely favorable weather conditions, the grinding has been 

 going on quite steadily for several weeks and it is anticipated that this season will prove a 

 record breaker in the output of many of the centrals. There are a hundred and 

 seventy-nine mills grinding at this writing as compared with a hundred and seventy- 

 seven at the same period last year. Owing to a change of ownership and management, 

 Central Bahia Honda, located in Pinar del Rio Province, which did not grind at all 

 last season, is now grinding and it is estimated that the production of this mill for 

 the current season will be about 30,000 bags. 



It is reported that the continued dry weather in Oriente Province has interfered 

 somewhat with the production and there have been a number of cane fires reported 

 in that section, both of which factors may tend to decrease the production somewhat, 

 although it is hardly believed that the effect will cause the final production to fall 

 below that of last season, when nearly four million tons were produced. 



There have been reports of cane fires throughout the Island, most of which 

 presumably are of incendiary origin, but as these are seasonal occurrences and not of 

 serious consequence if the cane is ground at once, it is not supposed that this will 

 affect the final output to any appreciable extent. According to statistics furnished by 

 the United Railways of Havana covering the production of sugar from mills served 

 by their lines up to March 1st, there have been 462,383 tons ground in comparison 

 ivith 422,432 tons over a similar period last season. 



From reports issued by the Federal Sugar Co., the Cuban sugar production this 

 season was 500,000 tons ahead of last year's production for the period ending February 

 28th. According to this report the total production during the present season up to 

 March 1st was 1,6Q0,000 tons. In spite of this good showmg so far, the prediction 

 of a sugar shortage continues, and every indication points to prices going higher. Taking 

 everything into consideration, the future of the sugar industry in Cuba is brighter 

 than it has been for two years. 



Financial Matters: Upon recommendation of the Secretary of the Treasury, 

 Colonel Despaigne, the balance of the fifty million dollar loan which was recently 

 secured from the firm of J. Pierpont Morgan & Co. will be left on deposit for some 

 time to come. There has already been an advance payment of $5,000,000, which 

 amount has been devoted to paying back salaries of public employes and pressing 

 Government debts. As there are numerous bills covering contracts for public work 

 done during the past couple of years which still remain unpaid, this decision of the 

 Secretary is causing a great deal of comment, and pressure is being brought to bear 

 upon the administration of both branches of the legislature to pay these bills for 

 public construction work. A commission was appointed some time ago and is now 

 engaged in passing upon the bills rendered. 



As a consequence of the increasing price of sugar, business in all lines is improving, 

 which is especially true in the building and construction field. There are many large 

 building projects being consummated throughout the Island and in Havana particularly. 

 Several large office buildings are contemplated in the near future and many new 

 dwellings are being erected in different sections of the city. 



The 1 per cent sales tax which went into effect December 1st last, the purpose 

 of which is to provide revenue for current expenditures, is working out very well and 

 is generally considered a very fair means of taxation, placing the burden equally 

 upon everyone. 



As a result of the findings of the Bank Liquidating Committee, appointed during 

 the early part of 1921, many plans are under consideration by Congress seeking to 

 avoid a repetition of the numerous bank failures which followed the wave of specula- 

 tion during and immediately after the war. Probably one of the most needed laws 



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