THE CUBA REVIEW 11 



General Outlook 



Based on special dispatch from Acting Commercial Attache 

 Chester Loyd Jones, Habana 



In a number of lines business in Cuba during the past month has become more 

 encouraging. Iron and steel, lumber, and other construction materials are being taken 

 in increasing amounts, and even in textiles, until recently much depressed, there are 

 signs of improvement. Old accounts from the boom period have been adjusted to a 

 considerable extent, and even where such is not the case new business is often being 

 carried on independent of the old accounts. As yet these can be accepted as no more 

 than very advanced symptoms, as there are many old accounts where settlements on 

 discount basis have not yet been made, and which are still either subject to arrangement 

 or involve future payments extending over a considerable period. It remains yet to be 

 seen whether profits will be sufficient to allow debtors to meet their obligations in these 

 unsettled outstandings. 



Sugar Harvest — Tobacco and Fruits 



The sugar harvest has passed its highest point. If conditions continue favorable, 

 a total outturn for the island of 3,800,000 tons is thought possible. Though such a 

 yield is encouraging, and though the effect of grinding has been to put money in circu- 

 lation, a number of mills seem to have been unable to make money and will end the 

 season with obligations greater than those with which they started. For these reasons 

 it is well to act with caution until it becomes clearer that the sugar industry and the 

 activities depending upon it have actually reached rock botton. There will be many cases in 

 which houses apparently doing satisfactory current business will actually be hard pressed 

 to meet their obligations when payments on the accounts now deferred become due. 



The tobacco crop of 1922 is harvested. The quantity is reported to be fair and the 

 quality good. Local cigar manufacture shows an improvement. Exports of tobacco 

 for the first three months of 1922 show an increase in quantity over the same period 

 of 1921 amounting to more than 50 per cent. 



Pineapple exports are going forward at a rate which indicates a shipment of 

 1,000,000 boxes for the season. The grapefruit market is satisfactory. 



The long drought is broken, relieving the anxiety as to a supply of food for stock. 



Banking Developments 



The outstanding development of the month in financial circles was the suspension 

 af payments by the banking house of H. Upmann & Co. An investigation of the 

 iccounts of the company by a committee of the clearing house showed the conditions 

 :o be much worse than originally reported, and that it would not be possible for the 

 )ther banks to assist. The Upmann Co. went into technical "suspension of payments" 

 )n May 12, when it was taken over by the Temporary Bank Liquidation Committee, 

 rhe effect of the failure of this long-established house has been to check the growth 

 3f confidence which the public has begun to show in local banking conditions and 

 :ommercial developments. 



Bonded Warehouse Situation 



The clearing of the stocks in the bonded warehouses continues. Part of the goods 

 s finding its way to the market and thus reducing the stock in the port. Other portions 

 ire being reexported under the various recent decrees. 



The inventory of goods in the bonded warehouses is practically finished. On May 

 ■ 5 the owners of American goods lying in 43 of these warehouses had been notified 

 )y letter concerning the reported location of their merchandise. Under the present 

 ulings all such goods may lie in the warehouses until June 30. when, if not withdrawn. 



