New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-12-12
AMERICAN CAPITAL IN CUBA.
NEW CONDITIONS IN THE FUTURE DE-
VELOPMENT OF THE ISLAND.

THE CARRYING TRADE UNDER THE AMERICAN
FLAG-HAvA%A RETAIL TRADE DESTINED
TO REMAIN IN SPANISH HANDS
Havana. December 8
New enterprises in Cuba are for American
capital The opening this week OF increased
means Of communication between Havana AMI
the Florida ports has clnched this conclusion.
Communication is now established three times
a week with Tampa on the west coast. and
twice a weel: with Miami on the east coast. The
business may not be sufficient in volume for
a while to keep two lines Of steamers employed.
The competition for what there is Of it WIFI
probably be sharp But after a time there will
be enough for both. The Gulf ports with the
exception Of New-Orieans are also awakening
to their opportunities, and an increased trade
with the Southwest promises soon to be de-
veloped.
These are only incidents in the future de-
velopmsnt of the island. What Is significant Is
the complete recognition by the foreign capital
invested in Cuba of the new conditions. None
OF this capital will be crowded out has been
assumed in many quarters. Instead it will re-
main in the assurance cf future stability given
by the United States Much English money is
invested in the railways and the tobacco plan
tations and manufactures Some Of 1t was
actually pushed into Havana In order to seize
the opportunities that were open before the time
was ripe for American investments. French and
German houses also reached out to insure the
trade that already theirs
SPANISH ENTERPRISE sPURRED
Spanish capital has done more than that. II
Is probable that the Barcelona houses will carry
out their plan OF erecting jute mills in Cuba.
This is something they never seriously contem-
plated while Spain ruled the island. 1t was
enough to have a portion of their capital in
vested in the mercantile business without the
additional risks Of the manufacturers. A common
deldson that the retail trade Of Havana and
other cities will pass rapidly into American
hands must also be noted. The Spanish mer-
chants VIII hold this trade so stubbornly that
It's future Is not worth considering at present
The only point Of consequence is that they will
buy in larger quantities from houses in the
United States
Wi,h the full knowledge then that American
capital Is not expected to dislodge existing Eu-
Korean carital. the interest will be in the new
feds which Will be opened up for II. The Eu-
rovoan trade representatives, have a tolerably
clear ilea Of where the first development will
come. They have a vivid remembrance OF the
American ships which were beginning To- crowd
the harbors OF Havana. Matanzas and other
ports when the Blaine reciprocity policy was
interrupted by the eXigencies OF partisan poll
tics in the United States Now they know in
dependent Of the political significance. what II
will mean 10 have the ports OF the United States
brought much nearer 10 Cuba by shortening
the time and increasing the means Of communi-
cation That was the first reflection to-day
when the vessels came into the harbor
CARRYING UNDER THE AMERICAN FLAG
It is a swift method Of reasoning by which the
conclusion has been reached that the future
carryiIg trade Of Cuba almost In its entirety
viii be under the American flag The depend
ency Of tn, island on the United Stetes what
ever form its government may take. settles that
point IN the minds Of the European trade repre-
sentatives They have also looked little further
than Of the Americans into the coastwise
trade That. in their view. is hereafter solely
question OF American ships The few vessels
under the Spanish flag which are now engaged
in the coasting traffic Will continue in g. The
difference will be that they will not be privi-
legged monopoly. without competition.
The theory OF the Spanish authorities was
that limited coasting traffic at high rates was
better than unlimited business at low rates a
passage from Havana 10 Santiago cost more
tran a voyage from Havana to New-York
Freight rates in the same ratio. The
backbone railroad through the island was not
allowed TO be built. because IL would interfere
with the coastwise vessel monopoly What
should have been Furnishing intcrcoast trade
among the many towns which had natural har-
Dor advantages became an intermittent bust
with a few small vessels engaged in it,
Even the fishing smacks limited. Ameri-
can COasting ships will change all this possibly
faster than has been Anticipated II they do
not precede the industrial development Of the
interior Of the island. they Will at least keep
pace with H.
HELD FAST AND KILLED.