Evening star., 1936-01-13
BY q staff Correspondent Of The Star.

nOmtc ana diplomdttc dDdTS tn
Cuba.
BY staff Correspondent Of The Star.
HAVANA, January 13 (N.AN.A).-
"Loteria! Loteria!" The cry Of the
lottery ticket vendors is always part
of the street symphony of Havana. As
we sip our cafe au lait, watching the
crowds pass the Manzana, a sheet
one complete tickets spread before
us. Our Cuban host waves it away,
looks thoughtfully at the ceiling for
a moment, then mutters bitterly,
Cuban economicsl"
AS the picture Of the general eco
nomic scene in Cuba Is unrolled, its
likeness to the fortunes Of lottery be-
comes apparent. 1t has been a game
of chance in which few have won, and
the changes Of fortune have been
swift-and usually dismaying. Only
in the last year has the drawing
favored the majority with small win
nings, but these have been so general
as to arouse hope that q new deal
has come to Cuba, the substitution Of
business principles for lottery through
the influence of q more generous ad-
ministration in Washington.
Both Extremes Reached.
Trade relations with the United
States are generally regarded as a fair
barometer Of business conditions in
the island republic. A glance at the
figures is enough to show the changes
wrought in few years. There was o
drop Of nearly 95 per cent in Cuban
imports from the United States from
the boom year Of 1920 to the bottom"
year of 1888. In the last two years
the increase has been nearly 300 per
cent, but the 1885 level was only half
as high as the average for the decade
beginning with 1920.
To illustrate the controlling influence
Of trade relations with the United
States, the Cuban business man
merely cites for you the month-by-
month reports of exports to the United
States from February, 1885, just be-
fore the new agreement was signed,
through September, the month fol-
lowing the exhaustion Of the quota.
Here they are:
February, s5.722.321: March, $1o.-
s77.394; April, $13,233,542: May
sl2, ,445,0 900; June, $10,243,569; July
SIS, ,736.000; August, s25,271 .057. and
September $4,271,057.
The figures for six months during
which Cuba was enjoying its new
export quota for the United States
market tell their own story.
Sugar, Of course. is Of paramount
importance to the welfare Of Cuba
Tobacco is second and the tourist
business third-now a very poor third
Tourist Trade Drops.
Back in 1880 Cuba entertained
more than $4,000 visitors, port records
reveal. In 1881 the number slumped
to $4,000, the following year to $4,000
BY 1888, 1t was down to $4,000. and in
1884 there were only l7,257, or about
one-fifth as many as entered the port
in 1880. There was little change In
1885, although prospects for this
Winter are considerably brighter.
Cuba's tourist business has suffered
chiefly from the increasing proportion
Of arrivals, who are passengers or
cruise boats, living aboard ship and
pausing only briefly in transit between
various ports Of the West Indies and
Central America. A brief whir
through the capital, visiting a few
bars and perhaps one night club, and
these visitors have "done Havana"
While the number of tourists en-
tering the port at Havana to reside
their temporarily decreased from
$4,000 to 17,257 from 1880 to 1894
the number of cruise" customers call
ing in transit increased from 53,o94
to 64,400.
Much the same curve of business
conditions as Is found in reports on
trade with the United States may be
traced in clearing house reports al
Havana. The figures for 1924 and
1925 were slightly above 81 900 900 900
There was not much change through
1929, but in 1880 they were down to
| 50,000,0 900, and by 1881 were only
slightly above s400,000,000 The fol-
lowing two years they stood at ap-
proximately $500, 100000, and in 1884
rose to s377 All ,883 A continued gain
was recorded last year, although OFF,
cial figures for 1885 are not yet avail
able.
Retail Business Rising.
Retail business in Havana has been
rising slowly but steadily. The city's
largest department store reported its
1885 Christmas trade approximately
10 per cent above that of 1884.
Overshadowing the general business
scene is the cloud created by a heavy
government bond debt, which reached
$164, ,934,700 in June, 1888. Approx
mately half of this was accounted for
by the s80,000.00O public works issue
noated by Machado, bearing 5l2 per
cent interest and maturing in 1943.
Through the Chasse National Of New
York, all but $50, SV0, 900 of this was
passed on to the bond-buying public,
it is reported, the remainder being
debentures held by Chase, the Cont
llCllldl 4lllliOlS oduh nll0 IL Auoe Va SAAA-
cago, and the National City of New
York. The debt also includes $54,-
464, 1000 .Speyer and Morgan loans
contracted between 1904 and 1927;
1864, 900 outstanding sugar stabili-
zation bonds issued under the Chad
bourne restriction plan Of 1880. and
an internal funded debt of $7,816, 600.
The more responsible residents OF
the island recognize that this debt
must be settled, but insist that it can
only be Iquidated through liberal
long-term refunding agreement. The
government budget, now $65, 1000, 900,
places a heavy strain on country Of
1900, 900 population that is only be-
ginning to regain its earning power.
Tax collections are now and subject
to political manipulation. Only the
$14,5O0,00 set aside for the depart
ment Of national defense (Which is
Col. Batista) seems assured Of pay.
ment. The department of education
will be fortunate to receive a major
portion Of the $11 ,OO0, 900 allotted It