THE CUBA REVIEW 



I Havana Correspondence 



Havana, Cuba, October 13, 1922. 



Sugar: Reports from all parts of the island are very encouraging indeed, in 

 so far as indications for a good crop for the coming season are concerned. Weather 

 conditions for some time have been extremely favorable throughout the island, and 

 particularly so in Oriente Province, which is producing more sugar every season. 

 Warm, dry weather, tempered with occasional showers, has tended to produce rapid 

 growth of cane, and should these fortunate conditions continue to prevail we may 

 look forward to a banner crop next season. 



The total production of the 187 mills which have finished grinding is estimated 

 at approximately 3,895,000 tons, to which may be added about 85,000 tons, which 

 it is expected the final report of the Preston Central will show at the close of the 

 season, making a total of 3,980,000 tons, of which some 350,000 tons remain on hand 

 for disposition, which is much less than the stock on hand at the same time last 

 year. Market conditions are quiet, with a tendency on the part of the holders of 

 sugar to wait for higher prices. 



Announcement has been made of a new company which will be known as the 

 New York-Havana Finance Corporation, the purpose of which will be to operate in 

 sugar as well as in the financing of operations, together with the purchase and sale 

 of raw sugars. Among other activities called for in the charter of the new corporation 

 are the purchase of bond issues and the granting of loans. Mr. 0. A. Hornsby, formerly 

 manager of the Trust Company of Cuba, is president. 



All factors tend to indicate greater stabilization in the industry next season than 

 there has been for the past two seasons. Outstanding debts are being liquidated, 

 new cane is being planted, much needed machinery and implements are being purchased, 

 and the outlook for the future at the present writing is brighter than it has been 

 for the last two years. 



Financial Situation: At last the much discussed loan bill has been passed by 

 both Houses of Congress and approved by the President. This loan question has 

 been the center of interest throughout the country for more than a year, and has 

 been the subject of more debate in the Senate and House probably than any other 

 legislation ever enacted since the inception of the republic. When the loan issue was 

 first brought up soon after the moratorium period, it was found that owing to the 

 weak financial position of the country after the financial debauch and inflation during 

 the war, a number of reforms would have to be inaugurated in the operation of 

 the government before any banking concern would underwrite a bond issue for such 

 an amount. At that time the government expenditures were in excess of SI 00.000,000 

 per annum, the entire system was honeycombed with graft, and inefiiciency and 

 incompetency were prevalent in every department. 



When these conditions became known and financial help was found necessary, 

 an appeal was made to the United States Government for permission to negotiate for 

 a loan, at that time placed at $100,000,000, and General Crowder was sent down by 

 the Wilson Administration to make a survey of conditions. The Crowder mission has 

 been here ever since, during which time a number of suggested reforms, deemed 

 necessary before a loan of this magnitude could be placed, have been enacted by 

 the Cuban legislature, and the final result was the passing of the loan bill itself. 

 Among these measures might be mentioned, the new budget bill, cutting the operating 

 expenses of the government to about half of that of the former administration; election 

 reform; suspension of the Civil Service Law^ thereby cutting out the ''Botellas" or 

 sinecure government positions: the lottery reform; as well as the replacing of the 

 first Cabinet appointed by President Zayas, with two exceptions, with new men, whom 

 it was felt could be depended upon to conduct their departments honestly and efticiently. 



Practically all of the reforms called for in the Crowder program have been passed, 



