10 THE CUBA, RE VIEW 



Havana Correspondence 



Havana, June 30, 1922. 



Sugar: The firm tone of the sugar market during the past several weeks h. 

 been indeed very encouraging and the result of the gradual increase in the price of ra 

 sugar is already making itself noticeable. General business conditions throughout tl 

 Island, while still far from normal, are becoming better and it may be safely predicts 

 that the worst has been passed and that we may now expect conditions to impro-, 

 steadily. 



The grinding season is rapidly drawing to a close, only about nineteen mills contii 

 uing operation, and the usual quiet season in the industry will give the owners ai 

 planters an opportunity to prepare for the next season's grinding, which, from all presei 

 indications, will again for the first time in two years return to pre-war condition 

 There is no question of Cuba's ability to produce sugar at a far lower cost than ar 

 other sugar-producing country, but the industry has been seriously handicapped durir 

 the past two seasons by a heavy overhead, high-priced labor, and the usual aftermat 

 of war conditions, with the corresponding liquidation period to be passed through, tl 

 same as every other country and industry has experienced since the war. 



There is a growing spirit of optimism, however, that is very encouraging, and as a 

 indications point to increasing prices for sugar, it is believed that the coming crc 

 will be profitable both from the standpoint of productivity and revenue. Of cours 

 there are a number of adjustments still to be made, as well as a heavy debt, which wi 

 have to be liquidated, hanging over many of the smaller mills. 



Financial Situation: Liquidation proceedings, through which it is hoped t 

 either place the Upmann Bank on its feet or to make some restitution to the depositor 

 are now under way by the Bank Liquidation Committee, and a report of their finding 

 is looked for most any time. There is no question but that the affairs of the ban 

 were very loosely administrated by the Upmann brothers and a radical change i 

 existing banking laws should be placed upon the statutes to prevent a recurrence ( 

 such juggling and dishonest handling of the people's money. 



No criminal proceedings have been instituted against the Upmanns nor has an 

 effective effort been made to force them to surrender their private property. In th 

 respect the failure of the Upmann Bank is strongly reminiscent of the failures of th 

 National Bank of Cuba and the International Bank, at the beginning of the Moratoriui 

 period, both of which banks, it is to be remembered, are still in process of liquidatioi 



Congress now has under consideration a new banking law which is expected t 

 be modeled somewhat upon the lines of the Federal Reserve Act of the United State; 

 Should a law of this nature be enacted it would be of great value in establishin 

 the credit of the business houses of the country, as well as being of tremendous irr 

 portance in restoring the shaken confidence in the banks. 



Under date of June 19th, President Zayas signed the new budget law passed b 

 the Senate and House of Representatives providing for an annual expenditure fo 

 the Government of $54,852,308.01, based on an anticipated revenue of $55,638,00( 

 This is less than half of the budget in effect during the last year of the former adminis 

 tration and is taken as an indication of the desire on the part of the present administra 

 tion to give the country an economical and efficient administration. 



Political Matters: Following upon the heels of numerous secret meetings heL 

 between General Crowder and President Zayas, an entirely new cabinet was announce^ 

 during the latter part of the month. This new cabinet is composed of the bfst mei 

 available for the respective positions and chosen not for their political prestige bu 

 for their high standing in the community as business and professional men. Ther 

 is very little doubt but that the cabinet which was named has the official approval o 

 the Washington Government as their wishes in the matter have been transmitted througl 

 General Crowder. 



