Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-06-23
CRISIS IMMINENT:
POVERTY INCREASES
Further Suspensions In
Cuban Industry and
Plantations Are
Announced.

HAVANA, Cuba. June n.-Develop-
rnents OF last week fully confirm the state
ment to The Herald a week ago. Those
statements were underdrawn rather than
overdrawn. and the situation has become
even more tense this week
Cubans generally. including officials.
have become convinced that nothing viii
be, done BY the American congress and
no relief is now looked for in that quar-
ter.
The week has shown further suspensions
in the sugar industry. an increase in the
number or unemployed and greater APP
prehension for the safety OF life and
property IN the country districts
A considerable number OF estates have
been OBLIGED 70 entirely suspend the usual
preparations for another season, because
they have neither money nor credit
Large estates Ike the Providencia- Hor-
migueros SeIedad. Santa Lucia and Santa
Gertrude are reducing their field forces
10 the utmost possible limit.
All reports received from the sugar
producing sections declare that there Is
a constant increase OF poverty and dis
tress and serious prospects for the COM
ing days. The government is considering
an increase Of the numbers OF the rural
necessary for protection
In interviews yesterday. several leading
merchants and bankers OF Havana assert
ed that there was complete stagnatton
OF business throughout the country, and
all are seeking 10 close outstanding &C
counts preparatory 70 weathering the
coming days OF commercial paralysis.
Merchants report large stocks OF mer-
chandise on hand and few orders being
placed for Imports
A prominent banker IS authority for
the statement that July importations viii
show a large falling on. with a conse-
Quent marked reduction in revenues Of
the government This Is based on the
knowledge OF orders placed.
The local ONCE Of an American mercan-
tile company states that failures OF coun-
try merchants are occurring constantly
and increasing from week TO week
insolvency Is at Hand.
This reacts on wholesale houses in Ha-
vana. several Of which are reported on
the verge Of insolvency.
No Widespread commercial crisis Is an
ticipated. however, because the firms rely.
as heretofore. upon European creditors to
carry them through
All reports declare that business con-
ndence II shattered and say that country
merchants do not dare buy and wholesale
houses are afraid 10 sell. because OF The
fear Of seizure OF goods without payment
BY the lawiess element OF the hungry
unemployed.
These statements are made by the best
Informed and most competent authori-
ties IN the island. including leading mer-
chants. bankers and planters. These con-
ditfons are also well known TO the gov
eminent officials who are seeking by all
possible means 20 avert widespread ca
lauity and disorder resulting from the
~w Ma M
aEn1g the laboring classes.
In gs-srnmeut matters as In industrial,
the country Is faced by financial condi-
ton IN which the government was left
BY the Americans are wholly unsupported
BY facts. Otherwise officials would not
be obliged to spend so many hours OF
anxious discussion in an effort TO discover
some method OF securing the necessary
revenue and put money into circulation
through the. country which would enable
thousands OF now impoverished persons
to live BY honest labor.
Bounty 20 Cane Growers.
Among the methods now under consider
alton Is a bounty to cane growers There
IS a proposition by which Il Is hoped the
cattle industry viii be greatly stimulated
and the island be enabled 10 supply its
own demand for fresh and salt meats
which are now imported.
President Palma states IL is his inten-
ton % use every effort 10 effect an i'm
mediate general revision OF the tariff.
with a special view TO the interests Of
the Cuban people and the government. AS
q now stands. the tariff shows considera-
ton for such American products as -four
bacon and other supplies rather than for
the benefit OF the Cubans.
The whole atmosphere I'm official circles
e one OF great anxiety. because there ex-
lists no reason to expect that current rev.
enues Tor the coming months viii be ad-
euuate 10 meet even the most economf-
cal expenditures. while the nominal bal
ance left BY the previous administration
r. quite insufficient 70 cover outstanding
contracts and obligations incurred BY that
administration. The amount OF these
contracts has not yet been ascertained,
but Il IS known they will approximate
q million dollars.
Reductions are being made wherever
possible in departmental work. and the
government Is convinced that great re-
trenchment Is now imperative. IL will
probably be forced TO curtaIl expenses
even IN the departments OF education and
sanitation which IL Is very loath TO do.
Much talk Is being heard in certain circles
which are becoming wider. regarding the
possibility Of effecting favorable trade
treaties with England or some other coun-
Try The idea Is growing that as the Uni
ted States does not see NJ 20 give consid-
GRAFTON 20 Cuba's economic welfare, Cuba
IS obliged for self-protectiOn to seek
other channels TO benefit her industries.
on which her life as a nation and as a
people are entirely dependent. No definite
proposals. have yet been made. but the
matter Is being given general careful con-
sideratiOn-
Situation Precarious.
II Is folly 10 attempt 10 deny OF refute
the extreme precariOusness Of the Cuban
situation. either in department. industrial
or national life. An artificial situation has
been maintained by the repeated hopeful
assertions from Washington that favora-
bic action would be taken on the Cuban
reciprocity bill. The reaction has now set
In. The gravity OF the situation Is real
iEed and uncertainty regarding the out
come now prevails
Unless early solution OF the industrial
and financial distress be found all indi-
cations are that the situation viii become
more and more critical with the passing
days
There Is TO be submitted TO the Cuban
congress on Monday proposition looking
10 the establishment Of a Cuban National
hank. authorized TO issue paper currency
10 the extent OF 70 per cent OF such funds
40 purchasers OF breeding cattle TO the
amount OF - head each.
The proposition provides that all gov
eminent funds must be kept in the bank,
which must always have on hand sufii-