12 THECUBAREVIEW 



started, as this is one of the essential factors in determining the future of the industry. 

 There are also a number of mills which were unable to secure funds last season with 

 which to make much needed repairs and replacements to their machinery that are 

 now going ahead with the work and will open at the beginning of the next grinding 

 season. Taking all these factors into consideration the outlook for the future may be 

 said to be brighter than at any time since the depression. 



Financial Situation : Little, if any, change has occurred in the financial situation 

 of the country during the past thirty days. The Government still continues to be hard 

 pressed for money with which to meet current operating expenses and the salaries of 

 the employees of the various departments are as yet several months in arrears. It is 

 generally believed that a loan is the only way to straighten out the situation and a 

 number of conferences have been held at the Palace during the last few weeks with a 

 view to determining just what guarantees will be necessary before this loan can be 

 secured. These conferences have been attended by President Zayas and his Cabinet 

 and by the special representative of the United States Government in Cuba, General 

 Crowder. There is some sentiment in the House as well as in the Senate against 

 the flotation of a foreign loan at this time, but it is not believed that should President 

 Zayas recommend that such a loan be secured, there would be much opposition to it 

 on the part of the legislature. Accusations of misappropriation of funds have been 

 made against the former administration: a recent denunciation to the Supreme Court 

 made by Enrique Ortiz claiming embezzlement of more than 860,000.000 which took 

 place in the Treasury Department during the ]\Ienocal Administration. That the 

 present Administration when it came into power found a heavy deficit confronting 

 it is well known, as is the fact that the new Administration has been seriously handi- 

 capped by a wealth of debts due to the extravagance of the previous Administration. 



L.\BOR Matters: A strike scheduled to have taken place on the railroads August 

 1st, failed to materialize into anything further than a threat, due to the determined 

 attitude of the railroad officials to refuse to enter into negotiations of any kind with 

 the men who threatened to strike. The reason for threatening the strike was due 

 to the laying off of a number of surplus employees and a refusal on the part of the 

 railroads to increase wages. 



At this time there is a stevedores' strike in the Bay of Havana but it is not 

 anticipated that this strike will last for more than a few days and is not being given 

 very serious consideration by the shipping interests. These periodic labor troubles 

 are a source of annoyance and retard the earnest desire for return to normal conditions 

 fust so much, and for that reason public sympathy is rather acainst any strike move- 

 ment at present 



General Conditions: Slight improvement is to be noted in the general business 

 conditions throughout the country. Retail stocks are being liquidated slowly, although 

 sales still continue to be slow. Small orders are being placed for new goods, but the 

 general public will have to commence buying more merchandise than they have during 

 the last six months or more before any large amount of new stocks can be purchased. 



The only industry experiencing something in the nature of a boom at this time 

 is the building industry, more particularly confined, however, to dwellings: a consider- 

 able number of small houses are being built throughout the Island and in the suburbs 

 of Havana in particular. There is also quite an active demand for sugar mill machinery 

 for repairs and replacements, the sales being retarded to some extent due to credit 

 conditions and the fact that the greatest possible economy is being used by the owners 

 in these purchases. 



New Charge d'Affairs: Mr. William S. Howell has been appointed Charge 

 d'Affairs to succeed Mr. Philander Cable recently appointed to a similar position 

 with the Government at Copenhagen. Mr. Howell, previous to coming to Cuba, was 

 attached to the American Embassy at Prague, where he filled the position of first 

 secretary of the American Embassy to the new Government of Czecho-Slovakia. 



