THE CUBA REVIEW 



the enormous total of $855,000,000 (United States dollars), of which suj^ar represented 

 $784,000,000, but the high prices of that year were responsible for a considerable part 

 of this total. Nevertheless, if we compare the exports of the principal countries of 

 the world, as given in the "Statistical abstract of the United States for the year 1920," 

 we find that Cuba occupies the tenth place according to the value of exports and the 

 second in dollars per capita (New Zealand being the first). 



Cuba is likewise a great importing country, occupying the thirteentli place among 

 the principal countries of the world, on the basis of the total value of imports, and the 

 ninth on the basis of dollars of imports per inhabitant. In the calendar year 1920 

 we bought from the United States 515 million dollars of merchandise, a large part of 

 this figure being represented by increased prices. But the average for the last five 

 fiscal years (1917-21) nevertheless reaches the high total of 289 million dollars per annum. 



It is, of course, due to our large exportations that we are able to huy so consider- 

 ably. In fact, our imports are in great part represented by materials that are required 

 b}^ our industries — particularly by our sugar industry — such as machinery, building 

 materials, rolling stf)ck, mineral oils, hardware, etc. We also buy great quantities of 

 foodstuffs, textile goods, automobiles, and other articles, the demand for which arises 

 mostly from our needs as a great producing nation. 



While it is estimated that the United States finds it necessary to export about 

 17% of all their production, Cuba must export about 90% of hers. The export trade 

 is admitted to be a very important factor in the prosperity of the United States, but 

 it means vastly more to Cuba, since our economic welfare is entirely dependent on the 

 sale of our products in foreign countries, that is, mainly on the sale of sugar to the United 

 States, which before the war was almost our exclusive market for this product. There 

 can be no doubt that the ruin of Cuba would be well nigh complete if unfavorable con- 

 ditions for the sale of her sugar were to prevail for any length of time in the United 

 States. Such conditions have, in fact, now existed for nearly a A^ear and have acquired 

 such a serious character that Cuba has already lost practically all the profits which 

 she had obtained during the past years and her sugar industry', which represents about 

 $1,500 millions of capital, is in imminent danger of collapse. 



A general survey of the present situation will show very clearly the intensity of 

 the economic crisis which Cuba is now experiencing. 



Price of Sugar in Rel.vtion to Cost of Production. — The New York price of 

 Cuban centrifugals 96° is now (October 31) 4.10 cents per pound, duty paid, equal to 

 2.50 cents c. & f. For the years from 1904 to June, 1914, the average price. New York, 

 duty paid, was 4.1232 cents per pound, and for the period from July, 1914, to December, 

 1920, 7.334 cents per pound. 



1904-1914 1914-1920 



Average price, N. Y., duty paid . . . 4. 1232 7.3340 



Duty on Cuban sugar 1 .3480 1 .0048 



Average price to Cuban producer 2.7752 6.3292 



Present price to Cuban producer 2 . 50 2 . 50 



)f The present price is thus below the average pre-war price and ^'ery much lower 

 than the average price of the last seven years. 



The United States Tariff Commission (Tariff Information Surveys, E 1, 1921, pages 

 33-34) has estimated the average cost of producing raw sugar in Cuba as follows: In 

 191&-17, 2.904; in 1917-18, 3.931; and in 1918-19, 4.104 cents per pound. The Com- 

 mission gives no figures for 1919-20 or 1920-21, but the cost of production for the crop 

 of 1920-21 may be estimated to have been, on the average, 3.75 cents per pound. vSince 

 there were unsold on the 15th of September, 1,650,000 long tons, or 3,696 million pounds 

 of sugar, with the sugar selling at 2.65 cents c. & f. per pound, the loss on the unsold 

 stocks represents 1.10 cents on each pound, or over $40,000,000. As the price has 



