THE CUBA REVIEW 



Havana Correspondence 



Havana, March 1, 1922. 



Sugar: During the past several weeks there has been a continuous flow of sugar 

 out of Cuba to various parts of the United States and Europe. It is estimated that 

 considerably more than two-thirds of the old crop, together with a large portion of the 

 present season's grinding, have already been disposed of. As a consequence of this 

 movement of sugar, quite a change in business conditions is already noticeable and it 

 is expected that conditions will continue to improve right along. It is not expected, 

 however, that more than a partial recovery will be experienced this year, but it is gen- 

 erally believed that 1923 will again witness Cuba enjoying her old-time pre-war pros- 

 perity, for there is no question but that the Island of Cuba can produce sugar more 

 profitably than any other country in the world. There are approximately 175 centrals 

 now in operation and all indications point to a very good crop, although the profits will 

 naturally be small owing to the low price which is being paid for raw sugar at present 

 and which does not promise to go very much higher unless unforeseen conditions should 

 occur. Several cane fires of incendiary origin have taken place of late. One of the 

 largest and most serious of these fires occurred on land owned by the Central Baragua, 

 of Camagiiey Province, which had 14.000.000 arrobas of cane burned during the early 

 part of February. 



Most of the centrals which are grinding are experiencing more or less difficulty in 

 financing the crop, while a considerable number of the mills are being financed directly 

 by large banking institutions. Several mills are being directly operated by the banks, 

 having been taken over last year during the liquidation period. 



The general consensus of opinion among the sugar interests indicates that if the 

 owners and operators are able to clear expenses with even a slight margin of profit they 

 will have done as well as could be expected this season. Everyone is optimistic about 

 next season and believes that by that time the sugar industry will again be back to a 

 normal basis. 



Financial Conditions: The financial situation is rapidly clarifying itself. Liquida- 

 tions have taken place in most lines of business and business in general appears to be 

 improving, although as yet to a very small degree. The principal change in the situa- 

 tion has been the hopeful attitude on the part of most of the commercial houses. Very 

 little real change has taken place in the amount of orders being received, but it is now 

 generally admitted that the worst has been experienced and that from now on there 

 will be a gradual change for the better. 



No statement has been forthcoming from the Committee in charge of liquidation 

 of the banking institutions which failed during the moratorium period. There was a 

 meeting held by depositors of the Banco Espafiol and the National Bank of Cuba a 

 week or so ago, called for the purpose of ascertaining whether a payment on the accounts 

 might be expected, and a committee was appointed to represent the depositors before 

 the liquidating board. It would seem that this process of liquidation is taking an un- 

 usually long time. The depositors and the general public still holding checks and other 

 commercial paper of these banks are growing impatient at the delay. 



At a recent meeting of the liquidation committee it was decided to call upon Spain 

 to pay the amount of money which is due the Banco Espafiol de la Isla de Cuba, said 

 to exceed a million dollars. It was also decided that more economy in the work of the 

 liquidating committee would be necessary in the future, to avoid the necessity of dis- 

 posing of property belonging to the bank to cover the cost of the operations of the 

 committee. 



Continued efforts are being made by the administration to curtail wherever possible 

 undue expenditures in governmental operation. So far very good work has been done 

 along this line and wages due government employees are being paid more regularly. 

 The S 5, 000,000 recently secured by loan from the United States has been entirely ex- 



