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The public works taxes originally levied to meet the interest charges have for three years been absorbed in the general budget, and last week, with Boss Batista's approval, this absorption was extended for two years more. This was a blow to the assembling creditors, and Chase Bank's Vice President Shepard Morgan sped to Washington, then to Cuba to protest about it. The Cuban Treasury politely explained that not to absorb the public works taxes would mean further unbalancing Cuba's proposed budget of $68,000,000 revenues and $74,000,000 expenses. Shaving expenses would mean throwing many deserving Cubans out of Government jobs and stirring up discontent—a problem precisely comparable to President Roosevelt's Relief-swollen budget equation.
Upon this financial scene, meanwhile, has appeared an enterprising, colorful group named Cuban American Banking Corp., which stole a march last fortnight by getting introduced into Congress by Dr. Marcelino Garriga, the extremely adroit Negro-blooded president of the financial committee of the lower House, a bill authorizing it as agent to convert all Cuba's existing foreign debt into a new 3¾% issue. Cuban American proposed taxing Cuba's foreign-owned businesses and foreign labor some $3,000,000 per annum to meet the interest load and amortization.
Moving spirit of Cuban American Banking Corp. is Eduardo Greñas, 37, industrious, ambitious son of Colombia's late Liberal Leader Alfredo Greñas. His silent backers include the Bank of Mexico and Manhattan's potent old Ladenburg Thalmann & Co.
Plan. Cuban American's plan was privately attacked by U. S. Treasury officials, who echoed the Chase Bank in describing the 5% commission asked by Promoter Greñas as exorbitant for a "purely mechanistic function." Unpractical, visionary, grandiose were their words for a larger plan that Cuban American had in the back of its head.