10 THE CUBA REVIEW 



of these institutions is causing considerable unfavorable comment. The rumors of 

 criminal proceedings against the former officers and other officials connected with these 

 banks have been entirely hushed up and there is an undercurrent of sentiment in favor 

 of more stringent and stronger banking laws. Several suggestions have been made to 

 enact a law similar to the Federal Reserve Banking Law in the United States, but no 

 legislation has as yet been offered by the Cuban Congress to this end. 



During the past few days several prominent banking officials connected with New 

 York institutions have been visiting Havana, among whom may be mentioned President 

 Mitchell of the National City Bank of New York and Mr. James Speyer of the banking 

 firm of that name. The National City Bank, as we have said before, was forced to take 

 over and operate a large number of sugar mills upon which they had made loans, and 

 their invested capital in Cuba is estimated to be more than a billion dollars at the present 

 time. These sugar mills are being operated by a holding company, but whether or not the 

 bank will continue to operate these mills or dispose of them will no doubt depend largely 

 upon future conditions in the sugar industry. 



Announcement has just been made that the firm of J. P. Morgan & Company have 

 made a one-year loan of $5,000,000 to anticipate pressing needs of the Cuban Govern- 

 ment until such time as the larger loan desired can be definitely arranged. Due to lack 

 of customs receipts and because of the depression, the Republic finds itself in dire need 

 of cash to meet current operating governmental expenses, there being thousands of 

 employees in the various departments of the Government who have not been paid for 

 several months. 



Labor Situation: After a protracted strike extending over a period of six weeks, 

 the stevedores and allied harbor workers of Havana decided to accept the terms of 

 the Association of Commerce and Industry of the Bay of Havana, by which name the 

 associated interests of steamship companies and merchants are known, and on the morning 

 of January 9th returned to work. This was a complete victory for the association, as 

 the union agreed to accept the "open shop" principle as well as the abolition of the 

 obnoxious '"delegate" system, which had heretofore placed the steamship interests almost 

 entirely at the mercy of the union. As the result of the saving effected by the change to 

 the "open shop" and the resulting efficiency obtained thereby, a few days after the inau- 

 guration of this plan, a reduction in warehouse and other charges ranging from 10 to 25 per 

 cent was announced, this reduction being made without the necessity of any reduction 

 in wages from the old scale, which has been in effect during the past two years or so. 

 While no reduction in wages is contemplated at this time, it is generally believed that 

 such action will be necessary in the near future, in view of continued lowered costs in 

 freight rates, handling charges, lowered living expenses, etc. 



During the strike of the stevedores, a sympathetic strike was also called by the 

 cartmen and teamsters, resulting in a complete tieup of the wharves and general business 

 for several days, but like the former, these men were finally compelled to return to 

 work. There was also a general railroad strike threatened, but it was decided that the 

 time was not opportune to carry out such a threat. 



The strike of the harbor workers served to call the public's attention to the hundreds 

 of laborers out of employment throughout the Island, any number of such men being 

 available for positions vacated by the strikers, and there was never a time when more 

 men could not be secured than there were jobs open for them. 



Political Situation: From surface indications there would appear to be some 

 signs of dissatisfaction on the part of several influential members of the Conservative 

 Party with their alliance with the "Liga Nacional." Quite a little talk of "reorganization" 

 has been heard and it would not be surprising to see a new party launched within the 

 near future. 



Congress again convened early in January after the usual holiday vacation. Several 

 measures advocated by the Administration are up for consideration, prominent among 

 which are the readjustment of salaries of the members themselves, as well as in the execu- 

 tive and judicial departments. These reductions would make possible a large reduction in 



