"Since 1884 the price of sugar has decreased so considerably that it has reached a ruinous figure. During the last ten years, as can be seen by official quotations, 96 degree centrifugal sugars have been quoted from four to five rials, and although from 1889 to 1893 the prices have several times exceeded eight rials, it has only been for a very short while. "At the end of 1893 and during 1894, the average price has been five and one-half rials, which is simply ruinous for the planters. "In Europe there are facilities for obtaining money; and besides, it happens that the beetroot only takes five months from its planting to the making of sugar, while sugar cane, besides having to struggle against many obstacles, requires fifteen months. [Illustration: APPARATUS FOR PACKING SUGAR AT THE SAN JOSE CENTRAL.] "The consequence is that the periods of high prices are always of short duration, since as soon as the prices commence to rise the sowings of beet increase, thereby causing an obstacle to the continuance of the rise. "The lack of capital makes the problem insoluble to the Cuban planter, and whatever means he can use to overcome his difficulties, the final result will always be the same, as he cannot reduce the expenses of his plantation beyond a certain limit. "There is no doubt that to-day (1894) the sugar estates do not cover expenses, and this fact is of immense importance, not only because it explains the present misfortunes, but because in it will be found latent the germs of many future misfortunes. "The causes of the dangerous situation have been well studied; some will be found in history and in the economic management of the Island and others in the effect of beetroot industry on cane. "Consequently, the unfortunate situation of the sugar industry in Cuba is due to three principal causes which by a strange coincidence have acted simultaneously, to wit: the economic régime in the Island, the abolishment of slavery without indemnifying the owners, and the great reduction in the price of sugar since 1884. "The efforts of the planters to save their industry have been interpreted by the Spanish Government as signs of prosperity, and that has based on this misunderstanding of facts the indefinite continuance of a disastrous economic system that is moulded on the old colonial system and is bound to ruin this Island, even if it were as rich and prosperous as the Government states that it is.