The Hawaiian gazette., 1918-03-22
Cuban Sugar Crop
Is Financed
IN New York City
FINAL Details Completed and
Most of Hundred MiIlion Dol
lars Subscribed But Particu-
lars Are Not Announced

NEW YORK, February 16-7H. n.
Morgan, special representative Of the
United States in Cuba, .anpe snced there
Yesterday, said n despaten from Havana
lust received, that plans for financing
the Cuban crop had been contaminated
in New York this week and that funds
we've now available for local producers,
says Facts About Sugar. This news has
resulted Ia a much better feeling among
sugar producers here. The impression
reflected is that the American Govern
ment is fulhlling to the utmost the
pledges given 70 Cuban producers in
the Cuban Agreement. Faa g.
At the close of the market this week
II was learned from official sources
that the plan inaugurated by tho
International sugar committee and q
syndicate Of New York bankers to
provide the financial resources required
10 meet the needs OF the Cuban sugar
producers during the present crop sea-
son and fulfill the spirit Of the Cuban
Agreement, has been contaminated.
Announcement Forecast Ne
The announcement was forecast by q
statement from the international
sugar committee earlier in the week
to the effect that the loan arrangements
,tfe progressing satisfactorily and
that In 4 short time the committee
hoped TO be able to report that the
entire loan Of 500 900, 900 was m ac-
eosnplished fact. 4 1t was intinated by
the committee that $50, 100000 Of the
amount had already been Subscribed
BY New York bankers and refners and
that the balance would be Forthcoming.
willie the details of this important
financial plan are not available at
present IL Is now known that all OF tho
obstacles that have prevented its con-
summation prior to this date have been
overcome. II is known that the Fed
erif reserve board has finally made a
ruling which permits the commercial
paper involved to be discounted by
federal reserve banks. 1t is also
known that on Friday practically all
Of the 800, 00o, 900 asked for had been
subscribed. ~ n ,S| .hefh 81 (.
Full details relative .. to- Discount
terms and the various methods of
procedure uhaer FVshich loans will be
allowed are to be made public early IN
the coming week. 1T is understood ON
good authority that the Cuban govern
ment has satisfied the State Depart
ment at Washington that the validity
of Cuban warehouse receipts viii ba
guaranteed. The question of the valid
ity of these receipts was one OF the
obstacles that held up the carrying out
Of the syndicate's plan. Il, 1I-+4z
According to latest Washington ad-
vices, on the receipt Of an Interchange
of international correspondence rela-
tive to this loan and accompanying
advices from the State Department, the
final decision on the loan was made by
Felix Warburg Of the Federal Reserves
Board on Thursday of this week. Mr..
Warburg passed upon the question max.
| ing the American bankers aeeeptances
! dis ountable at, the Federal Reserve
' banks. 1t is understood that he ap-
proved this form of commercial paper
and set an acceptable discount rate.
" The disposition Of this important
! matter was welcomed by the trade, In
asmuch as it was the only step not
| Yet taken to bring about the full con-
summation of the Cuban Agreement
With the perplexing financial problem
settled, the shipping situation well in
hand and every evidence in sight that
the major portion of the Cuban crop
will be purchased by the International
Sugar Committee, all matters relative
to the marketing Of Cubas become
matters Of routine. r","" ~ ~
1