The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-08-14
AUG. II, 1933--
new CODE FOR
CUBA TO LIFT
MISERY YOKE
RooSevelt'S New Deal Plan
May Be Turning Point
for Republic.
BY WILLIAM PHILIP SIMMS
Soripps- Howard Foreign Editor

WASHINGTON, Aug. IA. - Pres
ident RooSevelt's new deal for Cuba
may prove TO be a turning point in
that islands history. second in i'm
portance only TO that which freed
1t from the yoke Of Spain.
American big business. largely re-
sponsiole for the Machados of Cuba,
may be forced 10 agree to a new
code" for the islanders which. in
a measure. will free them from
much OF their present misery, polit-
ical and economic.
II should mean better and more
profitable relations between the two
countries.
Cuba once purchased $500 900. 900
worth of American products in one
year. That vas in 1920 Last year,
she bought only s28, 750,OO0 worth,
and this year things are even worse.
Figures for the first six months Of
1888 showed Cuba buying at rate
of less than S26 5000. 900 a year, one
twentieth of wha. il was in 1920.
L. 6. Is to Blame
The chief reason for this lies at
the door of the United States. One
big cause. Of course, is the world
sugar slump. But this country is
to blame for sugar being Cuba's
one big crop and also for the dis
astrously high tariff.
Under Spain, Cubans diversified
their crops. After independence,
congress at Washington passed
commercial measures" in the in
terest of her material well-being
known as the treaty Of reciprocity.
That treaty, framed IN 1902 grant
ed lower duties on Cuban imports
into this country and obtained
similar treatment for American
products entering Cuba.
The result of this was TO make
the United States Cubas big mar
ket, and as sugar was in increasing
demand. CubanS were encouraged
TO plant less and less of other crops
and more and more sugar cane.
During the World war, the United
States officially urged still further
concentration on sugar production
as a patriotic duty To help win the
conflict. Accordingly, Cuba be-
came virtually a one-crop country.
Price Bottom Drops
Hardly had the war ended. how
ever, than congress raised the DUTY
on sugar. In 1890. the Grundy tariff
raised it to 2.5 cents. Even with the
20 per cent difTerential granted by
the reciprocity treaty. Cuban sugar
had TO pay 2 cents a pound TO get
into the United States.
Meanwhile, the bottom dropped
out of the price. Raw sugar now
sells. in New York. for about 3.5
cents a pound. freight and duty
paid. That means Cubans receive
a cent a pound or less. 1t costs
nearly twice that much to produce
it.
Out of a little over $500 900 popu-
latlon. Cuba has more than 500 900
unemployed. II one is lucky enough
to get a job in the cane fields, the
pay is u or 20 cents a day. In
towns and cities. hit by the general
disaster. it is just as bad. Skilled
cigar makers. when employed at all,
are paid 81 a day. Other industrial
workers get from 20 to 35 cents.
Hardly anybody is employed full
time
That is why Cuban purchases in
the United States have fallen off 95
per cent in the last twelve years.
Investments Diminish
Americans have approximately
81 .500.O00.O00 invested in the island.
A well-informed Cuban today told
the writer these investments now
are probably worth 5000 900 900.
Some 100000 900 American money
is invested in the sugar business.
The rest is in tobacco. public utili-
ties. loans and so forth.
The Presidents back to the
farm" movement means farm di-
versification. Nearly 40 per cent of
Cuba's imports have been food
products.
The sugar tariff is due for re-
duction. and the reciprocity treaty.
it is indicated. will be revised so
the island at least. will not be
economically wiped off the map
In return for these measures
which will help them as much as
Cubans-American interests may
have 20 scale down some to make
it possible for the islanders to pay