THE CUBA REVIEW 



Havana Correspondence 



Havana, Cuba, September 22, 1922. 



Sugar: The grinding season has practically ended; only two or three mills are stiU 

 in operation and plans and preparations are being made for the next zafra. Continued 

 heavy rains during the past few weeks haye been welcome to the planters as the rain is 

 beneficial to the growing cane. The appearance of the cane, taking the country as a whole 

 is very much better at this time than it was at the same period a year ago. At that time 

 very little cleaning had been done owing to lack of funds with which to carry on the work 

 in the fields and there was also a corresponding shortage in the planting of new fields for 

 the same reason. The weather at that time was also very unfavorable on account of a 

 severe drought. 



Considering aU the factors governing the production of sugar in Cuba, it is generally 

 believed that the next season will be equally, if not much more, productive, than the present 

 one. Although it is not usually the case that two record-breaking crops foUow each other 

 successively, however, considering the obstacles which had to be overcome this season, 

 together with the late start made by many of the mills, it is believed that the 1923 season 

 should surpass the present one for production. The mills which broke records for produc- 

 tion this season may be expected to do even better next season. 



The remainder of the present crop which is now being held in warehouses awaiting 

 sale is rapidly diminishing, and although there has been a slight luU in the market for the 

 past few days, it is hardly expected to continue long, and it may be safely predicted that 

 by the latter part of October most of the present crop will have been disposed of. The 

 rising price of sugar in August was very optimistically received but the tariff controversy 

 in Washington and the articles published by the New York "World" caused a temporary 

 depression which it is hoped will soon be over. 



Financial Situation: Discussion as to whether or not to accept the loan issue 

 upon the terms designated by Washington still continues to occupy most of the attention of 

 the Senate and House. Numerous substitute plans to avoid having to make this loan from 

 abroad have been offered, the most notable of which has been the so-caUed "Ferrara Plan," 

 sponsored by Dr. Orestes Ferrara. In brief, the object of this plan is to levy extraordinarily 

 heavy taxes upon merchants and the taxpayers in general during the next two years in 

 order to raise necessary funds with which to meet pending and ensuing obligations of the 

 Government. This plan has not met with very enthusiastic reception. So far as the 

 $50,000,000 loan which it has been proposed to secure from New York banking interests is 

 concerned, the materialization of this project seems as far away as ever. The government 

 has been called upon to make certain reforms before this loan will have the approval of 

 Washington, and thus far the legislature has not seen its way clear to comply with the 

 demands, although a great deal of the legislation requested as a preliminary to the loan 

 negotiations has been recommended by the President and passed by Congress. One of the 

 proposed measures for raising revenue has been the Sales Tax. This tax met with much 

 opposition on the part of commercial bodies and it will probably not receive further con- 

 sideration. 



The Banco Nacional de Comercio was forced to suspend payments for a few days, but 

 a satisfactory agreement was later reached between the depositors and friends of the insti- 

 tution by which the bank was permitted to again open its doors. No statement has been 

 made to the pubhc as to just what the nature of the agreement was, but it is not anticipated 

 that the bank will again be forced to close its doors. 



Probably one of the most hopeful signs tending to avoid the occurrence of disastrous 

 failures among the banking institutions is the report of the National Commission on Banking 

 Legislation, made by Doctors de la Torriente and Gutierez de Cells, the recommendations 

 contained in which, if adopted, would avoid future recurrences of such failures. The 

 Federal Reserve Act, now so successfully operating in the United States, has been the basis 

 used for the proposed banking reform in Cuba. 



