16 THE CUBA REVIEW 



Much discussion was wasted upon the suggestions made regarding crop limitation, 

 but these were finally disposed of by the actual commencement of operations on 

 November 29th of "America," followed almost immediately by "Ermita" on November 

 30th, and by additions to the operating ranks of 25 other mills by January 1, 1922, 

 and were renewed only through the propositions made by representatives of the 

 American beet sugar industry, who have recently presented a plan more or less as 

 follows : 



"That the present duty of $1.60 per 100 lbs. of 96° sugar paid by Cuba's product 

 upon entry into the United States, would be lowered to $1.40 per 100 lbs.; and that 

 1.000,000 tons of sugar would be permitted to enter into the United States without 

 depositing the duties thereon as heretofore, this 1,000,000 tons of sugar to be refined 

 in bond and sold to buyers outside the United States. These favors would be granted 

 in consideration of the obligation assumed by Cuba's sugar industry to limit the crop 

 of this year to two-thirds of the average production of the last three years, about 

 2,500,000 tons of which could be exported to the United States, 50,000 tons for sale 

 to Canada, and about 250,000 for sundry purchasers and home consumption. This 

 would result in a permitted production of about 2,800,000 tons." 



Practically universal objection to this plan has been expressed, it being held 

 that, in view of the lateness of the season, a fair and equitable distribution among our 

 producers of the total quantity to be made would be impossible; that such an arrange- 

 ment would now be impossible due to the contracts covering sugar deliveries already 

 entered into; and that such an agreement would only result in the strengthening of 

 the position of all Cuba's competitors at the expense and injury of that of our own 

 people. The Committee appointed to study and report upon this matter have made 

 the counter proposition that Cuba's production be not limited, but that exportation 

 to the United States for consumption therein be limited to only about 2,500,000 tons, 

 in return for which the considerations offered by the beet sugar interests become effective; 

 and that the present 20% preferential shown Cuban sugars be increased to 50%, the 

 duty on all other foreign 96° sugar to remain at the present rate of $2.00 per 100 lbs. 



Like everything else in this delightful country of the "vice versa," this matter has 

 been taken up at such a late date that nothing practical will come of it for this 

 season's crop, though keeping before the eyes of the sugar world the possibility of crop 

 limitation, may assist in maintaining a higher price than would otherwise be possible. 

 Enmity to the proposals made are so openly and generally expressed both in Cuba and 

 the United States, that there seems no probability that any action will be taken. The 

 result, we feel, will be that Cuba will be left free and untrammelled. 



Plans for Disposal of Carry-over: The year has witnessed further results of 

 the anxiety produced by the prospective heavy carry-over at the end of the year, sug- 

 gestions having been made and given serious consideration that the Cuban Government 

 purchase from 700,000 to 1,000,000 tons of sugar from the existing stock, paying for 

 it with bonds to be issued to this end, and selling it to countries other than the United 

 States, taking in payment, if necessary, long term bonds. Another suggestion was that 

 the sugar be purchased in the above manner and destroyed by dumping into the sea, 

 payment of the bonds to be guaranteed by a tax upon sugar production. It is needless 

 to note that neither of these schemes was adopted. More practical, but as lacking in 

 accomplishment, were the instructions giVen all Cuba's diplomatic representatives in 

 countries other than the United States to- endeavor to arrange sales of our sugar, but 

 aside from inquiries received from Germany, Italy, France and one or two other 

 countries, nothing helpful developed. 



The Fordney Tariff Bill: While Cuba was still in an apparently inextricable maze 

 of difficulties due to the sugar situation that we have outlined, an additional obstacle 

 to recovery was in preparation for her in the United States. Cuba's sugar industry was 

 not alone in its depression. The demands for sugar originated by the necessity for this 

 commodity during the 'War period had been responded to, not only by Cuba, but by 

 all sugar producing countries, with the result that production was at top notch every- 

 where, with the exception, of course, of Europe. The beet sugar industry of the United 



