THE CUBA REVIEW 17 



States had been constantly expanded, though on a much smaller scale than had Cuba's 

 cane industry, and the effect of the world-wide depression and lowering of prices was 

 probably felt as keenly among the members of the beet sugar industry of the United 

 States as it was in Cuba. The heavy carry-over of supplies in the United States and 

 Cuba indicated the necessity to these interests of a greater protection than had been 

 granted in former periods. The result was that in April a movement began to take 

 form in the United States Tariff Commission, looking toward the levying of higher 

 tariffs upon the entry of all sugars into the United States, with the result that in the 

 latter part of May the Emergency, or Fordney Tariff Bill, was passed, levying a 2-cent 

 per pound duty on Q6° sugar produced in foreign colintries and entering the United 

 States. Cuba, of course, was still enjoying the benefit of the 20% preferential granted 

 her by the Reciprocity Treaty, thus lowering this 2c. duty by 0.4c., leaving the net 

 duty on Cuba's sugar 1.6c.,, in contrast with the 1.0048c. duty previously prevailing. 

 The question has always been an open one whether an increase in duty is absorbed by 

 the consumer or by the producer, but in this case, in view of the surplus of production 

 over consumption and of stock over demand, only one thing was possible, viz.: that the 

 increase in duty would be taken off the price to the producer. The effect was seen in 

 the lowering of price overnight that took place immediately after the final passage 

 of the Fordney Tariff Bill. 



The full effect of this change did not seem at first to be realized by Cuba's sugar 

 producers and her commercial element in general, but it was soon seen to be another 

 heavy burden added to those under which the industry was already struggling. It 

 was not long until the most adverse criticism was hurled by Cuba in general against 

 those influences in the United States which at the time of Cuba's greatest need and 

 weakness could place such an additional load upon her. The peculiar relations existing 

 betweeri the United States and Cuba, the latter being regarded by the Cubans as in 

 reahty a ward of the United States, seemed to justify the feeling that prevailed here 

 that Cuba should be entitled to more special consideration than had been shown and 

 that she obtained through the old Reciprocity Treaty. It was not long before our entire 

 commercial and business element was aroused, meetings were held in practically all 

 Cuba's largest towns and cities, protesting against what had been done and using every 

 argument possible in an endeavor to obtain a reconsideration of the duty levied on 

 Cuba's sugar before the final and definite passage of the fixed tariff bill which was sup- 

 posed to occur in December, as the provisional tariff bill that had been passed was to 

 be effective onty for six months. In July the suggestion was made that Cuba's Con- 

 gress pass a law providing that a committee should go to Washington in an endeavor 

 to secure this reconsideration, and this suggestion was acted upon, with the result that 

 in the latter part of that month the law was passed and a committee of 'seven members, 

 five of them representing each of our principal producing organizations and the other 

 two representing the Government, was chosen. This committee was headed by our 

 Secretary of the Treasury, Sr. Gelabert, who remained in Washington until only recently, 

 working continuously in co-operation with Cuba's diplomatic representative in Wash- 

 ington, Sr. Cespedes, in an endeavor to convince the Government of the United States 

 of the absolute necessity of a greater preferential treatment of Cuba's sugar industry, 

 and in an endeavor to obtain the consent of the United States Government to a further 

 loan to be secured in the United States of about $50,000,000. 



The results of these endeavors have already become history, the apparently over- 

 powering influence of the agricultural bloc in the United States Congress seeming suf- 

 ficient to set aside every argument ir:s Cuba's favor, so that when the time came in 

 December for the expiration of the period during which the preferential tariff should 

 prevail, it was continued in force by decree of President Harding until such time as the 

 Permanent Tariff Bill was passed. Hearings before the Tariff Committee of Congress 

 of Cuba's representatives had been granted, and we believe that her arguments had 

 been accepted as vahd and powerful, but the zeal shown in serving the agricultural 

 interests of the United States was such that no impression had apparently been made. 

 The result is that at this late date, at which a very large percentage of the carry-over 



