The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-16
CUBAN FINANCIAL
SITUATION MIXED
Necessity for { Confined
TO Local Enterprises Lack
ing Foreign Support.
BANKERS INSPECT ISLAND
Action on National Loan Can
not Be Taken Until Congress
Meets in December.

The necessity for relief In Cuba Is con-
fined TO local ENTERPRISES which lack
foreign support. according to Eugene w.
Stetson vice-president of the Guaranty
Trust Company. who. with e. A. Potter.
Jr another vice-rresdent of that COM
pany. returned yesterday from a brief
inspection of the banking and business
sit''a alton in c. ba on behalf of their in
stitution. While in Havana they made
a thorough Investigation of the position
of the Banco National de Cuba with a
view of possible negotiations for the
purchase of that comnany. II is under
stood that for the moment that there
are too many difficulties in the way of
the contamination Of such a purchase. al
though there have been rumors In New
York and Havana that such q step has
been contemplated.
In reply to questions Mr. Stetson dis
cussed the Cuban sit"ation as follows;
The Cuban situation is very mixed
one, for which there is no ready made
solution. There are three obvious courses
which might be followed in order to
bring relief:
''First-The fiotation of a Cuban Gov
eminent loan. the proceeds of which
should be used primarily in supporting
the sugar industry.
Second-The extension of q banking
credit In some form to the Cuban bank
and
''Third-A continuation of the present
moratorium In modified form until per-
haps February l, when the present crop
will have been prepared for the market.
1T must be borne in mind that the
foreign banking interest in Cuba. which
is the FREEDOM nant one, is on a perfectly
sound basis and able to meet its own
problems Furthermore, the large Amer
lean interests in Cuba are also meeting
their obligations. so the necessity for re-
lief is confined to local enterprises viii N
lack foreign support,
This years sugar crop will be one Of
the largest in the history of the island.
and If the difficult period of credit strain
can be passed without serious reaction.
prosperous conditions in Cuba may again
be expected
1.-THE rich productivity OF the island
has, Of course, not been affected The
problem presented is purely a banking
problem. which can only be worked out
I'm some manner along banking line s.
Negotiations to that end are still n
progress, but so far no general agree
ment or decision has been reached"
Re'ative TO the fiotation of a Cuban
C vernmert loan Z may be said that
70 action can be taken until after the
cjnvenes on December /. gets under
Roadway. For the moment the subject
Of Cuban Govern ment loan is noe
dead but Sleeping. although doubts are
expressed in banking circles as to tn +,
ACCESSIBILITY of such a loan. The ex-
tension of a banking credit IN some
form to Cuban banks Is also doubtful
In view of the prior claim to credit b.
cotton, grain or live stock growers in
the United States.
There is, however the possib lily 81
sales of sugar and rice TO American in
terests on large scale. with big cash
payment at the start, If such tran
action can be accomplished IL Is un-
d, rstood that there viii be to-day a
r~eeting between Cuban planters and
American industr al interests which
rray result in the purchase of rice ane
sugar in rig quantities. A meeting wa
scheduled for yesterday. but the session
was postponed for twentyfour hour
c. the present 4.000.0 900 ton crop, 800.
600 tons are said 10 be unso'd, and at
) cents a pound such a purchase woulI
hep Cuba out to the extent of s30,-
0bO, 900. or $50, GOO. 900 if the price Wee
6 cents a Wound still more might he
obtained from the purchase Of rice.