Cuba in Usa

It was only after the United States shifted her attention from the French West Indies and began to pay more attention to the Spanish Caribbean did the Cuban Economy get into the hands of the United States between 1900 and 1933 due to the great economic potential Cuba had which led to the increased American penetration and control.

American investments in the Cuban sugar industry began to change during World War I with the war time destruction of the European beet sugar holdings, particularly following the 1919-1920 ‘Dance of the Millions’, and many Cuban planters could not resist the temptation to sell their property for the attractive prices offered. Following the United States’ example, Cuba declared war on Germany in 1917, following which several battalions of American troops were sent to the island, ostensibly for training, but actually to protect the sugar industry. Following the war, the American grip on the industry was tightened with the spectacular decrease in the price of sugar that started in 1920. Many sugar Centrals went into bankruptcy and were taken over by American banks from which they had obtained loans earlier on, while others had to turn to these banks for funds. By the 1950s, the entire Cuban economy was under the domination of ‘King Sugar’ and the United States market.

The United States’ control over banking was extensive with the 121 branches of the American owned Banco Nacional de Cuba, as well as 24 branches of National City Bank in the island, in 1926. This control meant large amounts of Cuban savings were transferred to the United States for investment there. Cuba became an attractive tourist resort during the period, with its nightclubs, casinos, hotels, cinemas and other tourist attractions, which were established with United States’ dollars.