THE CUBA RE V I E W 



28 



TRADE OF THE UNITED STATES WITH CUBA— Continued. 



Foreign Competition in Cuba. 

 The decline in United States exports to Cuba during 1921 and 1922 was not due to 

 foreign competition but to the economic depression which prevailed in the island. The 

 advantages offered by the Piatt Amendment, the 20 per cent preferential tariff conceded 

 to American goods, the proximity to the United States, and the influence of American 

 capital in the sugar industry effectively guarantee American goods a receptive market 

 and retard the development of foreign competition. Foreign firms are constantly on the 

 alert for an opportunity to enter the Cuban market, but their efforts have met with 

 limited success, except in a few special lines, such as wines, toilet articles, etc. 



Improvement in Cuban Conditions. 



It is doubtful whether the economic condition of any country at the end of 1921 

 was as discouraging as that of Cuba. Sugar prices had fallen steadily from the record 

 of 23^ cents in 1920 to less than 2 cents; the decline in property values had been 

 enormous and the period of deflation was consequently painful. Many of the Cuban 

 banks went into the hands of a liquidation commission. A heavy sugar surplus had been 

 carried over from the 1921-22 crop and the outlook for 1922 was considered the worst 

 that had ever been faced by the Republic. The situation was further complicated by the 

 accumulation in Cuban bonded warehouses of rejected merchandise amounting to an esti- 

 mated invoice value of from $60,000,000 to $100,000,000. Further confusion resulted 

 from the loss of quantities of these goods from warehouses, and the refusal to accept 

 goods, due to misunderstandings between shipper and consignee. 



When the extent and gravity of these economic obstacles which had to be overcome 

 are considered, the improvement which has taken place in Cuba during 1922 is both ex- 

 tremely reassuring and indicative of the island's recuperative powers. The recovery is 

 attributable chiefly to the improved price of sugar, which rose during the early months 

 of 1922 to a point where the planters were able to realize some margin of return over 

 production costs, and the effect on business within the country of far-reaching govern- 

 mental reforms. In the first months of 1922 the crisis seemed to have passed and an 

 upward trend in business conditions was apparent. It was during the last three months 

 of 1921 that our exports to Cuba touched the lowest point of the economic depression; 

 succeeding quarters witnessed a steady increase as trade responded to greater purchasing 

 power and generally improved conditions. The United States continued to purchase sugar 

 for domestic consumption in large quantities, and the failure of Europe to regain pre- 

 war production helped materially. A comparison of the sugar exports to the United 

 States in 1922, amounting to 4,042,094 tons, with those during 1921 which totaled 

 2,312,565 tons, indicates the extent of the improvement in the sugar industry. 



The congestion of unclaimed merchandise at the port of Habana has ceased to b^ of 

 importance. However, many claims growing out of this situation have still to be settled. 

 The Cuban Government fixed by decree the period within which claimants of goods in 

 general-order warehouses must remove them. That which was not so removed has been 



