Page 1 |
Previous | 1 of 6 | Next |
|
This page
All
Subset
|
42 HASKINS & SELLS May Cuba's Financial Situation By C. M . CLARK, Acting Manager, Havana Office GE N E R A L post-war conditions augmented by the reaction from an unbridled speculation in sugar and an almost total prostration of the Port of Havana have brought upon Cuba its financial crisis. Delayed by the moratorium but not averted, the latest development has been the closing of the doors of what had been Cuba's most important banking institution. Much greater panic would, doubtless, have resulted had it not been for the American and Canadian banks with the reserves of their parent organizations behind them. Dating as far back as the year 1918, the Port of Havana has been subjected to serious strikes interfering with the delivery of goods. During the closing months of the war, it became extremely difficult for merchants in Havana to obtain any goods. Orders were not being filled and those goods which did arrive were so involved in the dock congestion as to be almost unobtainable. One of the customs regulations of the Port refused the clearance of a shipment except in total. If part of a shipment were missing, nothing could be cleared. Strenuous objection to this practice did finally bring about the establishment of the "quedan," which is a deposit or guarantee covering all possible charges against the missing portion of the shipment. Even this to-day is applicable only to certain classes of merchandise. Havana merchants placed large orders in the hope that some of the goods would get through. In some instances goods were ordered shipped to Matanzas to be brought to Havana by truck. Price meant little so long as the goods were to be had. Then there came the time when the overstocking of merchandise, particularly in the United States, was realized, and Cuban orders, shipment of which the merchants little expected, were filled promptly. In the summer of 1920, the Port of Havana was completely paralyzed with ship after ship lying at anchor waiting to discharge its cargo. What little work the dock laborers did was handicapped by customs regulations. Goods were transferred to wharves and lighters until such capacity was exhausted. Any breakage in shipments in the transfer meant refusal of clearance. Millions of dollars' worth of goods were thus piled up in the Havana congestion when the storm began to break in the fall of 1920. Merchants who had obtained letters of credit at banks became powerless to take up their shipping documents and banks found themselves with shipments to be disposed of. Sight drafts with shipping documents attached were not accepted and accumulated in large numbers awaiting advice from shippers. A campaign started by the Rotary Club of Havana when its members donned overalls and went to the docks to work was finally successful in centering opinion upon the dock congestion. A commission was sent from the United States to assist. A new regime was established and merchants were told that they must remove their goods immediately upon notice. An old abandoned cemetery and other vacant properties were obtained and enclosed, and non-perishable goods uncalled for by consignees were deposited there and stored under tarpaulins or such other protection as could be erected. The docks were cleared but the credit situation will take many months to work itself out. Vast quantities of merchandise are now on hand in Cuba bought at tremendously high prices and surcharged with
Object Description
Title |
Cuba's financial situation [News items] |
Author |
Clark, Clarence Milton |
Subject |
Cuba -- Economic conditions |
Personal Name |
Kracke, Edward Augustus Conner, Thomas Urner |
Office/Department |
Haskins & Sells. Havana Office Haskins & Sells. Chicago Office Haskins & Sells. Atlanta Office |
Geographic Location |
Cuba |
Citation |
Haskins & Sells Bulletin, Vol. 04, no. 05 (1921 May 15), p. 42-44 Haskins & Sells Bulletin, Vol. 04, no. 06 (1921 June 15), p. 52-54 |
Date-Issued | 1921 |
Source | Originally published by: Haskins & Sells |
Type | Text |
Collection | Deloitte Digital Collection |
Digital Publisher | University of Mississippi Libraries. Accounting Collection |
Date-Digitally Created | 2009 |
Identifier | HS Bulletin 4-p42 |