H THE CUBA RE J' IE TV 



the continuous and heavy offerings of sugar that would have resulted had the com- 

 mittee not existed, would have much more rapidly lowered the price obtained for our 

 sugar without to any material extent increasing the demand for our product, we believe 

 can be stated w'ithout error. Another factor that the committee was continually 

 hampered by, was the fight against it and the resulting almost continuous rumors 

 and reports that the committee was about to be dissolved. It was felt that the 

 dissolution of the committee would result in a very rapid fall of the price of sugar, 

 with the result that purchasers in the north, in view of the oft revived reports of 

 the cessation of the committee's activities, hesitated to enter the market, purchasing 

 only the sugars required to fill the immediate demand. 



The hostility to the committee and the objections raised against it increased as 

 time passed and as it became evident that a prolongation of its life would only 

 increase the carry-over of sugar into the 1921-1922 crop and delay the return to a 

 normal condition which would tend to result from the disposal, even though at a 

 low price, of the sugar controlled by it, until by a decree issued by President Zayas 

 on the 21st of last December the committee was dissolved, its activities to cease on 

 the 1st of January of this year with regard to all sugars except those afloat in foreign 

 ports or awaiting shipment in Cuba, contracts for whose shipments had already been 

 placed. Since the date mentioned, the committee has been dissolved and has liquidated 

 most of its accounts, showing that during its life it disposed of 9,184,507 bags of 

 sugar weighing 2,919.125.468 lbs. with a total value of 885,764,449.23 f. o. b. Cuban ports. 



Crop Limitations: Toward the latter part of the crop the dullness of the sugar 

 market and the slowTiess with which the Sugar Finance Committee was disposing of 

 the sugars already made, began to impress upon some of the members of our sugar 

 industry the great probability that if the crop were allowed to run its normal course, 

 a very heavy carry-over of sugar into the next crop would result. As a consequence, 

 the suggestion was advanced that by mutual agreement all the mills of Cuba cease 

 grinding, the suggestion being made in early May. The acquiescence to this plan of 

 the mills of the Cuba Cane Corporation and of the Central Cuba Sugar Company 

 was obtained, provided the plan could be made universal. This, of course, did not 

 prove feasible. At the same time the first suggestions regarding the limitation of the 

 crop to be made in 1921-1922 appeared, all statistics pointing to the great probabiHty 

 that as large a carry-over as 1.500.000 tons would exist on January 1, 1922. and that if 

 the production of the new crop was not limited by some arrangement, the total quantity 

 of sugar existing toward the end of the 1021-1922 crop would be so large that the market 

 would be depressed during the entire year and heavy losses incurred by all producers. 

 The means by which crop limitation would be brought about were various, the two 

 plans having the greatest number of followers being: First. That of limiting the 

 quantity of sugar to be made by each mill to two-thirds of the quantity produced in 

 the 1920-1921 crop, allowance being made in the cases of new mills or those in 

 which misfortune had occurred the previous year, the quantity of sugar to be made 

 by these being two-thirds of their estimated capacity. The second plan was to prevent 

 the commencem.ent of grinding by any mill until some fixed date, February 1. 1922, 

 being that most favored, as by that time the cane in our fields would have ripened 

 thoroughly and the greatest commercial extraction be obtainable from it. It was 

 considered that the time elapsing between February 1st and the commencement of 

 the rainy season with its consequent obligatory cessation of harvesting operations, 

 would be sufficient for the making of a total crop of about 2.800.000 to 3,000,000 tons. 



As we have indicated, each of these plans had its followers, but any plan by 

 which crop hmitation was to be brought about was opposed by the longest minded and 

 most far-sighted members of our sugar industry, together with the great majority of 

 the financial institutions of the Island. These uniformly held the position that in 

 order that the sugar industry reach a normal position, artificial means of the reduction 

 of the crop, the maintenance of the price, restriction of sales, etc.. etc., could not be 

 adopted, and that the time honored law of supply and demand would have to be 

 depended upon. 



