22 THE CUBA RE VIE W 



Sugar Prices Tend to Bring Cane Crop to Mills 



The sugar-grinding season opened November 27, with the commencement of 

 grinding at the Cunagua mill in the Province of Camaguey. On January 21, 1923, 142 

 of the total of 205 mills were in operation, as compared with 96 on January 21, 1922. 

 While some of the mills reported exceptionally low sugar content of cane during the 

 first three weeks of grinding, the cold weather of the past two weeks has caused the 

 cane to ripen rapidly and the sugar content is now considered about normal. 



On December 21, 1922, the Himely sugar statistical service estimated the present 

 crop at 4,102,857 long tons, as compared with a trifle less than 4,000,000 tons last 

 year. Several others have placed the present crop at even higher figures, while the 

 economic expert of the Mercurio and several other sugar experts have made a pro- 

 visional estimate of 3,800,000 long tons. There are several factors, as yet indeter- 

 minate, which may have a considerable influence on the total output, such, for instance, 

 as possible labor difficulties, cane fires, and adverse weather conditions. With prices 

 at their present favorable level there will be every tendency to bring all of the avail- 

 able crop to the mills. Thus far there has been but one relatively small cane fire, pre- 

 sumably of accidental origin, in the Province of Camaguey. 



The general opinion in Cuba seems to be that sugar prices will remain well above 

 3 cents (c. and f. New York) during the height of the grinding season, and that there 

 will then follow a considerable rise. This opinion seems to be based upon the fact 

 that there was practically no carry over from last year's crop when the present 

 grinding season commenced (although the carry over a year previously was about 

 1,200,000 tons), coupled with the fact that last year's crop was almost 4,000,000 

 tons. 



Dissatisfaction Among Cutters and Planters 



There has been a certain amount of dissatisfaction among Cuban cane cutters 

 with the terms of employment offered them this season, but the situation has been 

 somewhat eased. The importation of about 5,000 laborers from Haiti, together with 

 the favorable outlook for sugar prices, has caused the planters to recede somewhat 

 from their former position. There has been some talk that planters would not deliver 

 cane to the mills unless the planters' views are met as to the money compensation 

 they receive for cane delivered. However, the favorable prices obtained thus far from 

 the present sugar crop seem to have taken the sharpest edge off this dispute. 



While about 11 per cent of the cane-grinding contracts entered into between mill 

 operators and planters provide that the planters shall receive compensation in sugar 

 for cane delivered by them, the remainder of such contracts provide, in effect, that 

 compensation be made in sugar (at a stipulated number of weight units per 100 units 

 of cane) or in the cash equivalent; and, in practice, the cash equivalent is almost 

 always given. As a basis for calculating the money value of this sugar, there are fort- 

 nightly pools of prices, commonly spoken of as "promedios," or local sugar averages. 



Originally, most of the sugar was sold by mill owners through notarial brokers 

 established in local boards in various cities throughout the island. These boards cal- 

 culate by a system of weighted averages the value, at their respective cities, of sugar 

 sold through them during the fortnight. From these averages, or "promedios," certain 

 authorized deductions are made for services rendered, transportation, insurance, etc., 

 and the planters are paid the remainder. Dispute has arisen over the correctness of 

 these deductions. A second phase of the promedio dispute arises from the fact that 

 the boards of brokers have in recent years come to handle fewer and fewer of the 

 actual sugar sales, and the accuracy of the averages has been questioned accordingly. 

 A decree recently issued provides for the preparation of the averages by the Depart- 

 ment of Agriculture at Habana. This is being opposed by the planters on the ground 

 that the returns obtained by the Government are not complete. The solution sug- 

 gested by the boards of brokers is that they should be given authority to ascertain and 

 designate the price of each sale, whether made through a broker or otherwise. 



