THE CUBA REVIEW 23 



Tobacco Crop and Trade 



Reports from all parts of the island indicate universally good prospects for the 

 tobacco crop, the harvesting of which commenced early this month. The export trade 

 in leaf tobacco, cigars, etc. has been especially active during the past few weeks. 

 December, 1922, exports of cigars were 7,533,217, as compared with 4,357,965 in 

 December, 1921. December, 1922, exports of leaf tobacco were 2,237 metric tons, as 

 compared with 914 metric tons during December, 1921. In fact, the year just com- 

 pleted has been more active throughout than the year 1921. The total exports of 

 leaf tobacco were 15,626 metric tons, as compared with 11,650 metric tons in 1921. 

 Total exports of cigars in 1922 were 91,831,749, as compared with 53,776,484 in 1921. 



Proposed Banking Legislation 



The financial collapse of 1920-21, which resulted in the closing of 18 banks 

 in Cuba, revealed the great necessity of legislation looking toward the provision of 

 adequate safeguards against mismanagement, in order to protect the interests of 

 depositors and shareholders as well as the public generally. The report of the 

 National Commission on Banking Legislation, which was appointed several months 

 ago to study this need, has just been published so that it may be examined by the 

 public and the banking institutions themselves before being submitted in any form 

 to Congress for enactment. This report is called the Torriente-de Cells project for 

 banking legislation. One of its most important objects is to establish a national 

 banking commission which would have broad supervisory powers over all banking 

 institutions, and quasi-judicial powers in the administration of banks which become 

 insolvent. In order better to systematize the activities of banking institutions on 

 the island, the project proposes to divide them into the several following classes. 

 according to the nature of their activities, with the functions and activities of banks of 

 each class strictly defined. These categories are (1) commercial banks, (2) banks 

 of agricultural credit, (3) mortgage or land credit banks, and (4) savings banks. 

 There is also a provision for the estabhshment of a clearing house under rules to 

 be approved by the national banking commission. As a matter of fact, the leading 

 banks of Habana established, early in 1921, a clearing house which is now a recog- 

 nized institution. 



Another important feature of the Torriente-de Cells project is a provision for 

 the modification of the negotiable-instrument law relating to checks. 



The entire project, with the provisions mentioned below, is now being examined 

 by President Zayas and his advisers with a view to its early submission to the 

 Cuban Legislature for final enactment. 



Proposed Reserve Bank 



The Torriente-de Cells project also contains general provisions for the establish- 

 ment of a reserve bank of Cuba, whose activities woiild be restricted to the accepting 

 of deposits, the rediscount of certain classes of commercial paper bearing the signature 

 of member banks, and the issue of its own paper currency. The only bank notes 

 in circulation in Cuba at present are those of the United States. The rediscount 

 privileges obtainable from the reserve bank would be somewhat similar to those 

 obtainable from the reserve banks in the United States. The notes of the Cuban 

 reserve bank would not be legal tender although they could be used for the purpose 

 of paying taxes, and would be exchangeable for gold and for American legal tender 

 at par in Habana or in New York, where part of the reserves would no doubt be 

 kept. The minimum gold (or other legal tender) reserve back of the notes of the 

 bank would be 40 per cent and this reserve would have to be equal to at least 35 

 per cent of the deposits of other banks. The member banks, in turn, would be 

 required to keep on deposit with the reserve bank 7 per cent of their deposits 

 payable on demand or within 30 days, and 3 per cent of all other deposits. 



