32 THE CUBA REVIEW 



It was the stimulus of satisfactory prices that enabled Cuba to make a crop close to 

 4,000,000 tons. That there was a large invisible supply in the United States in December, 

 1920. is now fully confirmed by the fact that the total arrivals at the U. S. ports during 

 January and February, 1921, show a decrease of 281,311 tons as compared with those two 

 months of the previous year. 



Prices fell because of the enormous invisible stocks in the United States in December, 

 1920, arising out of the importations made during the last half of that year from Java 

 and other Far Eastern countries because of the high prices ruling, also by reason of the 

 increase of nearly 50 per cent in the domestic beet crop, as compared with the previous 

 crop, and a further slight increase from Porto Rico. These conditions made it impossible 

 for the Sugar Finance Committee to dispose of the new crop, within the year 1921, 

 especially as the market in European countries proved limited in view of the low rate 

 of exchange and the unsatisfactory European financial situation. 



By keeping prices always low enough, the Sugar Finance Committee prevented a 

 repetition of the large receipts from Far Eastern countries, and succeeded in confining the 

 total receipts at the American ports to the natural sources of supply for that territory, viz.: 

 Porto Rico, Hawaii, the Philippines and Santo Domingo, as well as the British West 

 Indies. The greatest portion of the sugars from Santo Domingo and British West Indies 

 was exported in the raw state to Canada or in the shape of refined to Europe. 



The European demand was very limited during the first six months of the year, due 

 to the Royal Commission on the Sugar Supply not having yet distributed the balance of 

 its sugars, as well as to the unfortunate exchange and the economic situation generally. 

 During the last six months of the year the demand from that quarter improved. 



The statistical situation of sugar is unfavorable if the Western Hemisphere alone is 

 taken into account, but not unfavorable if the world at large is considered. If the 

 surplus of over 1,000,000 tons of sugar now held in Cuba were spread as it normally 

 would have been over the United States, Great Britain, France and Germany, it would: 

 not have attracted attention, being but a normal supply, and hence would not have had ■ 

 the same depressing effect on prices. 



As prices have gone below what, under present conditions, is practically the cost of 

 production in even the cheapest sugar producing country in the world, viz., Cuba, the 

 probabilities are that the fluctuations during the coming season will be within a smaller 

 range, and once the old crop sugars are placed, where they normally should be, on the 

 deleted shelves of the dealers, jobbers and grocers, thus correcting the displacement of 

 stocks, the sugar situation will improve. 



The Consolidated Balance Sheet as at September 30, 1921, together with Profit and 

 Loss and Surplus Accounts for the year ended that date, certified by the corporation's 

 auditors, Messrs. Deloitte, Plender, Griffiths & Company, and the Comparative Financial 

 Statement, will be found appended thereto. 



Acknowledgment is made of the loyal cooperation of all officers and employees 

 during the year. 



Respectfully submitted. 



By order of the Board of Directors, 



W. E. OGILVIE, 



President. 



COMPARATIVE CONSOLIDATED BALANCE SHEET— SEPTEMBER 30, 1921 



ASSETS 



Sept. 30, 1921 Sept. 30, 1920 



Properties and Plants $02,380,616.29 $78,892,258.47 



Machinery and Construction Material on Hand for Exten- 

 sion OF Violeta and Other Capital Purposes 788,497.31 695,417.46 



$93,169,113.60 $79,587,675.93 



Investment in Shares of Subsidiary Company $2,738,230.65 



•Investments (at Cost) 569,000 . 00 



