T HE CUB A RE V IE W 33 



'Asociacion de Hacendados y Colonos de Cuba 



Association of Sugar Mill Owners and Cane Growers of Cuba 



To THE American People: 



The Association of Sugar Mill Owners and Cane Growers of Cuba, which represents 

 the basic wealth of this Republic, in view of the campaign which is being carried on in 

 the United States to reduce the consumption of sugar and to force down the price, 

 desires to place the facts in their true light before the American people, so that the 

 persistent efforts of the Cuban producers and the just consideration to which they 

 are entitled may not be overlooked. 



It is to the interest of the Cuban producers more than to any one else, that 

 the price of sugar should not be artificial, nor so high as to bring about a restriction 

 of consumption, but at the same time it will not be denied that it is necessar\' for 

 the producers to obtain remunerative prices for their product. 



During the years 1921 and 1922, the American people acquired from Cuba 5,066,280 

 tons of raw sugar for their consumption (or 51.10 per cent of their total consumption) 

 at an average price for both years, of 3.218 cents per pound, not including the duty, 

 that is at a price which did not cover the cost of production. 



Compared with such low prices (3.459 and 2.977 cents in 1921 and 1922, respec- 

 tively), consumers have been led to consider the present prices as excessive; but as 

 a matter of fact, the average price obtained by the Cuban producers this year has 

 not yet reached 4J^ cents per pound. It must, however, be taken into account that 

 by reason of the drought which has prevailed, this year's Cuban crop will be over 

 half a million tons below the estimates made by the most reliable sugar statisticians, 

 and that this reduction in the output means a considerable loss to us. 



Up to the present time the Cuban producers have sold two-thirds of this year's 

 estimated crop, which will be smaller than any other since 1917-18, at an average 

 price which, as has been stated, is below AYi cents per pound, and in case the rest 

 of the crop should be sold even above the present price, say at 7 cents per pound, 

 the entire output of this year will have been marketed at an average price of 5^ 

 cents per pound, which scarcely compensates for the reduction in the crop. 



As a result, therefore, of the drought, and also of a tariff duty which increases 

 the price to the consumer about two cents for each pound of granulated sugar, a 

 campaign has been started in the United States which in effect is directed against 

 Cuban sugar, as at this time of the year practically all the supply available for the 

 American market must come from Cuba; and should this campaign, which some 

 persons think ought to take the form of a boycott, succeed in forcing do\Mi the 

 present price of sugar, it will bring about very serious injury to Cuba. 



The world's sugar production this year is about 500,000 tons below that of the 

 year 1913-14, and since there has been a considerable increase in consumption, it can 

 readily be seen that it is necessary to stimulate production in order to prevent a 

 shortage of sugar, with its corresponding high prices. Any campaign, therefore, which 

 unduly lowers the price will be prejudicial to the consumer, whose interest it is 

 to have an abundant supply, in order not to be compelled to deprive himself of sugar 

 or to pay too much for it. It should not be lost sight of, therefore, that the best 

 remedy against high sugar prices consists in the increase of production through 

 adequate encouragement to the producer. 



Must the Cuban producer invariably be condemned to face a loss through the 

 constant and violent fluctuations in the price of sugar, which is almost the only 

 source of the economic life of Cuba? At the time of the World War the sugar 

 producers of Cuba were in a position to benefit very greatly, but forewent high profits 



