Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-13


In Cuba amounted to 1920 ,000, 900, while
Cuban American commerce totaled
, 9206, ATS, 900, Of which SIS. 2S8, 900 rep
resented Cuban purchases in the United
States and $l3l, 1877. 900 American i'm
ports from Cuba giving the latter q
favorable balance with the United States
Of almost $50 900, 900. This sum was
equivalent to more than 90 per cent of
Americas total investment in the island
in 1918. 1t appears on the basis OF
these figures that additional American
investments in Cuba could be effected
without materially increasing the is
lands burden.
Payable in Gold Coin.
United States investments abroad.
which take the form of fixed income
bearing securities, contain stipulation
to the effect that principal and interest
are payable in United States gold coin
on the prevailing weight and flneness.
Subsequent to the granting Of the loan
the lender manages to secure all or
most of the gold held by the debtor,
but Goes nothing about changing the
provisions of the loan contract The
borrower simply must discharge his OBJ
legations through a medium which ne
does not posSess-a very curious Situa-
ton indeed
Cuba proved no exception to the gen.
eral policy pursued by the United States
In respect of debtor countries. A tariff
was imposed upon Cuba amounting to
100 per cent of the present price Of
sugar, a rate difficult to explain, be-
cause the United States does not pro-
duce, nor does any one seriously expect
that she will ever produce, enough sugar
to meet the home demand. Cuba Is
Americas natural source of supply. 1t
is with this in view that American
bankers and investors have placed hun
dreds of millions Of dollars in the secu-
rites of Cuba and her industries.
Within the last Is years American in
vestrnentS in Cuba have increased all
most six times. somewhat out Of proper
ton when compared with the gain dur
ing the same period Of Cuban American
trade, amounting TO less than 5 per
cent. United States sales to Cuba in
1880, amounting to $685. 900, repre-
sent an increase as compared with 1918
of more than "a per cent, while Cuban
exports to the United States. aggregat-
ing 1922, 039, 900, showed loss Of about
I per cent when compared with pre-war
exports.
Default Might Be Serious.
1t may not perhaps be aniss to in
quire whether the trainers of the tariff
Dill realize tnat some OF the Blano
obligations reld by American investors
are selling today for less than so cents
on the dollar, and that a default might
entail serious complications to the
American Government. Do they appre-
ciate the significance of document
known as the Platt amendment, which,
by virtue of treaty between the United
States and Cuba. has been incorporated
by the latter into the constitution?
This amendment-adopted let 1t be
emphasized, at Americas instance
pledges Cuba mot to assume or contract
any public debt, to pay interest upon
which and to make reasonable sinking
fund provisions for the ultimate dis
charge OF which the ordinary revenues
of the island after defraying the cur
rent expenses Of the government, shall
be inadequate"
According to the amendment, the gov
eminent of Cuba further consents that
the United States may exercise the right
to intervene for the maintenance of a