THE CUBA REVIEW 



Ha\^ana Correspondence 



Havana, March 30, 1922. 



Sugar: Increasing heavy sales of sugar during the past few weeks, continued 

 movements taking place to all parts of the world, have resulted in the disposal of 

 practically the remainder of the old crop on hand and have drawn heavily upon the 

 new crop now being ground. There are 177 mills now in operation, which are about 

 all that may be expected to grind this season. This is considerably more than was 

 at first thought might be expected to be able to grind during the current season, 

 although representing quite a decrease from what might have been expected under 

 more favorable conditions. Another factor which must be taken into consideration 

 when considering the number of mills in operation, especially in so far as the effect 

 on the season's output is concerned, is that many mills have assumed the burden 

 of grinding the crop formerly ground by mills which are not now being operated. This 

 doubling-up process is working very advantageously, particularly in those instances 

 where formerly two small mills might have been in operation a half or one-third of 

 the time, whereas now they are able to continue at full pressure. 



While the price at which sugar is selling is still very low and not one which may 

 reasonably be expected to result in much more than production costs under present 

 conditions, nevertheless all indications point to a gradual increase and by late fall 

 it is predicted the price will be around 3 cents, while there are many who 

 predict 5 cent sugar before the end of the present grinding season. It is generally 

 believed that the low point of the depression in the industry which began in October, 

 1920, was reached about December last and since that time conditions have been 

 slowly on the upward trend. This improvement in the basic industry of the Island 

 is naturally having its effect upon business as a whole but as yet there has not 

 been enough time to have effected more than a partial recovery among the more 

 essential industries. 



The increasing number of destructive cane fires in various parts of the Island, 

 particularly in the province of Matanzas, has been the cause of much uneasiness 

 and considerable alarm among the planters for the reason that in many instances 

 these fires have been traced to incendiary origin. During the months of December 

 and January it is estimated that about 29,000,000 arrobas of cane were thus destroyed, 

 which amount was greatly increased during the following months of February and 

 March; estimates of cane destroyed by fire for those months were placed at 120,000,000 

 arrobas. As each "arroba" represents 25 pounds of cane, these fires represent 

 extremely heavy losses. Last year the entire losses of cane from fire were placed 

 at 110,000,000 arrobas for the season, which losses have already been exceeded so 

 far this season by 10,000,000 arrobas, and from fires which are almost sure to occur 

 from time to time in the cane fields it is fairly safe to predict that from 175,000,000 

 to 200,000,000 arrobas may be considered conservative calculation of the loss for 

 this season. 



Discussion regarding the proposed crop regulation is still being heard but as the 

 season is so far advanced without any such restrictions having been carried out, 

 it is not thought that anything will be done at this late date. As it has been estimated 

 that the world's supply of sugar this year will be at least 25 per cent, below that 

 of last year, there really is no valid reason for such restriction and it would only 

 result in prolonging the return to normal conditions so eagerly awaited. 



Opposition is still being voiced against the Fordney Law as regards the tariff 

 which has been placed on Cuban sugar, many taking the stand that the duty which 

 has been decided upon, 1.60 per pound, is prohibitive, and will work great injury 

 to the industry. However, in view of the great natural advantages enjoyed by Cuban 

 growers in the matter of climatic and labor conditions, it is most generally believed 

 that as soon as the present world-wide economic situation has become stable, the 



