THE CUBA REV IE W 



Havana Correspondence 



Havana, January 24, 1922. 



Sugar: Since the dissolution of the Sugar Sales Finance Commission by Presi- 

 dential decree early in January,, a more hopeful and confident feeling for the future is 

 noticeable, as it is believed that the abolishment of this institution, which has been more 

 or less of a storm center ever since its inception, will be beneficial to the sugar industry 

 as a whole, by allowing the free and unrestricted sale of accumulated sugar now in ware- 

 houses at nearly every port of the Island. 



While sugar is still selling at a price much less than the cost of production, it is 

 believed that as soon as the major portion of the old crop has been disposed of there will 

 be a much firmer price and a good demand for the new crop. This view is substantiated 

 by the fact that this season's output will be considerably below that of the previous 

 season, because of the fact that several mills which ground last year are unable to resume 

 operation this year. 



The agitation which has existed for some time against the provisions of the Fordney 

 Tariff Bill has subsided considerably. 



Taking advantage of the unusually favorable weather situation for grinding which has 

 prevailed during the past several weeks, many of the mills have commenced to grind and 

 more are being added to the list daily. This is especially true of the eastern portion of 

 the Island. It is reported that a labor shortage is already being felt in Oriente Province, 

 which is probably due to many Jamaicans and Haytians having experienced so many 

 privations last season that they have been reluctant to return again this year until assured 

 of more favorable conditions. It is not expected that there will be any serious shortage 

 of labor, however, at any time this season. 



Very little of the new crop is being offered for sale at present, most of the mills 

 preferring to wait until more favorable market conditions prevail. About the only new 

 sugar now being placed on the market for sale is by banking interests which have taken 

 over the mills or by some of the mills which are forced to secure ready cash in order to 

 continue operation. Several mills and colonias will be sold at auction within the next 

 few weeks, as the result of foreclosure proceedings brought by creditors. The situation 

 in this respect is not so bad as was anticipated at the close of last season's grinding, and 

 with the exception of those mills which will undergo a change of ownership through fore- 

 closure, it is not believed there will be many changes in ownership. 



Financial Matters: Negotiations are still pending between officials of both the 

 Cuban and United States governments and financial interests involved, and it is thought 

 that satisfactory arrangements will be made to secure the loan of $50,000,000 desired by 

 the Cuban Government. General Crowder who has been in Cuba as a special repre- 

 sentative of the Washington administration for several months, has recently left to report 

 upon the situation and it is believed that this report will be favorable and pave the way 

 for the loan issue. 



Sweeping reductions have been made in the budget by the Zayas Administration 

 until today the Government expenditures are less than half those of the former admin- 

 istration. The President has attested his good faith in his endeavors to bring operating 

 expenses of the Government down by accepting a 15 per cent reduction in his own salary. 



When sugar again reaches a sufficiently high price so that it can be sold for a fair 

 margin of profit over the cost of production, there is little doubt but that Cuba will 

 experience a speedy return to normal conditions. There is a more hopeful spirit among 

 commercial and financial interests right now than has been evidenced for several months, 

 past, although a lack of confidence, especially insofar as the banks are concerned, is still 

 quite noticeable. 



No statements have been forthcoming from the committee in charge of liquidation: 

 of the insolvent banking institutions and this slowness in reporting upon the. conditions. 



