THE CUBA REVIEW 13 



Survey of Economic Conditions in Cuba 



Actmg Commercial Attache Chester Lloyd Jofies, Habana, April 10. 



The economic prospects in Cuba during the past year have been very discouraging, 

 a pessimistic atmosphere continues ir 

 ictors which are distinctly encouraging. 



nd a pessimistic atmosphere continues in spite of the fact that there are a number of 



The Sugar Har\'est 



f The controUing influence in the economic life of Cuba is the sugar crop. The 

 nportance of sugar so far outranks that of all other products that the price and supply 

 f this commodity largely determines the prosperity of all the people of the island. 



At the end of 1921 the sugar outlook was considered to be the worst since the 

 ■^tablishment of the Republic. There was a heavy surplus overhanging the market from 

 le previous year. The much-criticized Sugar Finance Commission was about to go out 

 :f existence. It had not been able to stop the steady decline in the price of sugar, but 

 ;. was expected that its abolition would see still lower prices. Sugar producers prophe- 

 ed a short crop, some estimates running below 2,500,000 tons, as compared to the 

 ,000,000 tons of a maximum yield. Many of the mills, it was feared, could not begin 

 rinding and would have to leave their cane in the fields. Finally, the proposed Fordney 



triff rates, it was considered, would be fatal to the local sugar industry. 

 All these forecasts have proved to be exaggerated. The price of sugar has sho\\-n 

 tisfactory improvement. The surplus is being moved off, and despite the collection, 

 jnder the United States emergency tariff, of rates equivalent to those of the Fordney 

 ill, the sales of sugar in the most important markets of Cuba have been highly satis- 

 fictory. By extraordinary efforts the mills have started and continued grinding and 

 pere is no more talk of inability to grind because of lack of financial support. Labor 

 osts have greatly fallen, contributing to the possibility of making profits at price 

 fvels far below those of recent years. Weather conditions have been favorable, though 

 le burning of cane (intentional and accidental) has occurred to an unprecedented extent 

 lad the dryness of the season, especially in Camaguey, will probably cause the burning 

 b continue through much of April. Still the loss in production from this cause has not 

 jeen large. 



The grindings, so far as figures can be secured, seem to be very well advanced and 

 [le total compares very favorably wit hthat of prosperous years. The current estimates 

 ut the crop at 3,500,000 tons, as compared to 3,974,116 tons in 1920-21. and 3.758.347 

 Dns in 1919-20. The grinding will probably fall off sharply in the west during April, 

 ut if weather conditions continue favorable, the eastern mills should continue to have 

 good yield and may push the total beyond the estimates. President Zayas in a recent 

 lessage to Congress declares that even the Fordney tariff, provided the reciprocity 

 reaty remains in force, may prove to be a benefit to Cuban sugar producers through 

 icreasing the advantage of Cuban sugar over the other sugars on the American 

 aarket. 



The Tobacco Outlook — Minor Crops 



1 The outlook in the tobacco industry is encouraging. The surplus of leaf tobacco 

 rom 1920 and 1921 has been almost all purchased, chiefly in the United States. Less 

 han 100,000 bales from previous crops, plus the yield of the current year, represents the 

 obacco which Cuba will offer to the market during 1922. The crop now being harvested 

 ,; reported as short in quantity, but of good quality. Cigar manufacture is picking up 

 i/ith the coming of better demand and lower labor cost. Exports are growing. 



With the exception of sugar and tobacco, all other agricultural products are of 

 hinor importance in Cuba. The export market for fresh vegetables has been good. 

 ?he shipments of early potatoes from the Guines section has been ver\- satisfactory, 

 irapefruit and pineapples are taken at encouraging prices. 



