THE CUBA REVIEW 



37 



clones del mercado. La cantidad de azucares de Cuba en almacen en una ocasion pasaba 

 de 100,000 toneladas, pero eso se ha reducido a menos de 20,000 toneladas, todo lo cual es 

 retenido practicamente contra las opciones de diciembre. 



Azucar refinado. — Las activas rebajas en azucares crudes naturalmente desanimo a 

 los compradores de azucar refinado, y durante el mes pasado la demanda ha sido notable- 

 mente pequena. Algunos compradores que anticipaban precios mas altos de consideracion 

 en los azucares refinados compraron mas de sus requerimientos, y de ahi el que se vieran 

 obligados a revender sus excesos de existencias a otros compradores que habian sido mas 

 moderados en sus compras. Al escribirse nuestra ultima revista la cotizacion era 6.75c. 

 pero ahora es 6>^c., vendiendose a 6.15c. de trasmano. La Compania Federal Refinadora 

 de Azucar que vendio unas 12,000 toneladas de azucar para la exportacion hace cosa de un 

 mes a 5c. en deposito y pago neto al contado, al no recibir instrucciones para embarcar 

 azucar de esos contratos dentro del tiempo requerido, se vio obhgada a ofrecer esos azucares 

 al comercio del pais a quien quisiera comprar, y al presente la cotizacion de dichos azucares 

 es 6.20 c. Como ya hemos observado anteriormente, el acercarse la estacion de la recoleccion 

 de las cosechas de remolacha de Europa ha afectado la demanda por el azucar para la 

 exportacion, y la venta de este azucar va ahora despacio. La cotizacion nominal es de 

 4.25c. aproximadamente pago neto al contado y en deposito. 



Nueva York, Septiembre 26 de 1922. 



I 



Financing the Cuban Sugar Crop. 



The unprecedented decline in the sugar 

 market in 1920, which culminated in the 

 Cuban moratorium of October, was fol- 

 lowed by such a severe business depression 

 that a number of important banking insti- 

 tutions of the country were forced to 

 liquidate. In fact financial conditions in 

 Cuba became so unsatisfactory that during 

 1921 it was freely predicted that the sugar 

 crop for 1921-22 would be materially be- 

 low normal because of the apparent im- 

 possibility of obtaining the financial sup- 

 port required for agricultural and manu- 

 facturing operations. 



Americans and Canadian banks with 

 branches in different parts of the island 

 found that many of the sugar centrals were 

 not in a condition to warrant the extension 

 of credit to them in the usual way, and 

 that a few were so disorganized as to be 

 unable to operate without supervision as 

 well. These banks also discovered, after 

 some experimenting, that it was neither ex- 

 pedient nor practical for them to intervene 

 directly in the running of these plants, 

 and they therefore organized separate cor- 

 porations to carry on this work for them 

 by developing and maintaining trained or- 

 ganizations to administer the funds needed 

 for operating expenses and to effectively 



safeguard the interests of the banks by 

 supervising the production. It has been 

 the policy of the operating companies to 

 permit the owning companies to carry on 

 as much of this work as possible and to 

 make their intervention one of helpfulness 

 rather than of interference. 



Two banks that were particularly active 

 in this work of crop financing enabled 25 

 mills to operate during the grinding season, 

 which is just closing, thus materially in- 

 creasing Cuba's 1921-22 sugar crop. 



It is not believed that these operating 

 companies will become permanent organi- 

 zations, as it seems to be the purpose of 

 the banks to withdraw from active partici- 

 pation in the affairs of the mills as soon as 

 practicable. At least one corporation has 

 been organized, however, independent of 

 the banks, but backed by strong financial 

 interests, with the object of being in a 

 position to purchase the equity of the 

 owners of any of the sugar centrals in 

 Cuba that can not overcome their difficul- 

 ties. Present conditions indicate that there 

 will be few. if any. cases of this kind, pro- 

 vided that the sugar market continues rea- 

 sonably strong. It is now generally ac- 

 cepted that the Cuban sugar crop for 1921- 

 22 will amount to approximately 3,800,000 

 tons, which is virtually a normal crop. — 

 Vice Consul Charles B. Hosmer, Habana. 



