26 THE CUBA REVIEW 



Liquidation or Stocks Progressing Satisfactorily 



The process of liquidation of rejected stocks and stocks on hand in the lumber yards i 

 progressing very satisfactorily, in spite of the unfavorable conditions in other industries 

 Owing to the scarcity of houses and dwellings in Habana, people of means are now building 

 It is felt that cement, lumber, and other building materials have reached rock-bottom prices 

 and in fact it has been noticed that prices of lumber in the United States have recentl; 

 advanced. For these reasons many believe that it is a good investment to build now 

 and as a consequence the stocks of lumber are gradually being reduced. Another yea 

 may pass before anything like normal conditions obtain in the lumber import trade of Cuba 

 and in the meantime our exporters in the United States should not make this liquidatioi 

 of stocks more complicated by forcing on the Cuban market any new stocks of lumber. 



Even a superficial investigation will be quite sufficient to restore confidence in thi 

 better class of Cuban importers, and it is believed that it would be to the best interests o 

 our exporters to permit the Cuban importers to pay "manana" rather than force then 

 to liquidate stocks at present low prices faster than the market can absorb them. It ii 

 recognized that attempts to force rapid liquidation of accounts would only result in breaking 

 the market and forcing many of the responsible lumber dealers into bankruptcy. A numbei 

 of the largest American exporters report that they are well satisfied with the liquidation o1 

 their accounts in Cuba and do not expect to suffer any losses. These concerns have retainec 

 the good will of their Cuban customers by showing them as much consideration as possible 

 during the present difficult times. 



Future Outlook 



Besides sugar raising and tobacco growing and manufacture, there are, relatively 

 speaking, no important industries in Cuba. In recent years Cuban exports of sugar ranged 

 in value from $190,000,000 in 1915 to $502,000,000 in 1919, and tobacco from $9,000,000 

 in 1915 to $18,000,000 in 1919. It is therefore necessary to examine closely the development 

 of the sugar and tobacco industries in Cuba in order to obtain an idea of the potentiality 

 of this market as a consumer of American lumber. A great deal will depend upon the 

 outcome of the contemplated tariff on Cuban sugar in this country, as the United States is 

 by far the most important market for this commodity. 



While it is impossible to prophesy with any degree of accuracy the amount of lumber 

 the Cuban market will absorb in the future, perhaps some idea will be gained from the 

 fact that the 25-year average ending with the fiscal year 1920 was 110,549 M feet for logs, 

 timber, and lumber (railway ties not included). The average for the past 10 years has 

 been 160,965 M feet, but because of what might be termed the boom years this undoubtedly 

 represented a larger amount than the market will take under ordinary conditions. Possibly 

 a mean between the 25-year and the 10-year average would more nearly represent what 

 American lumber exporters can count on, or about 135,000,000 feet. 



Not until sugar production, the basic industry of Cuba, is again on a healthy basis 

 can a return of prosperity and the attendant importation of lumber on a normal scale be 

 expected. 



Organization of Cuban Bank Creditors out legal existence. On February 18 by 



Commercial Attache Chester Lloyd Jones, unanimous vote it was decided that the 



Habana, reports that discussions of the creditors should organize under the law 



action to be taken by creditors for the pro- and thus secure official standing. The 



tection of their interests have resulted in the cooperation of all creditors in the work of 



formation of the Association of the Creditors the new association is invited. The de- 



of the Banco Nacional de Cuba. This clared object of the organization is to assure 



group has been holding weekly meetings to that the liquidation commission of the bank 



enable its members to inform themselves of shall keep the creditors informed of its 



the steps which have been taken by the work. This, it is claimed, is required by 



liquidation commission to defend their the law but the reports which the creditors 



interests. Up to the present the association have received have not been satisfactory to 



has been voluntary only and has been with- them. 



