New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-08-13
LOSSES IN THE SUGAR TRADE.


The OTHER To INITIATE IA PANIC Noi
FEARED-HIsTORY or THE sTECUIAlIoN-DEA"-
BACKS AND COIORfyG.
The speculation in sugars has caught W
some operators on oyer-stocsed market and WIN
limited demand but IL has not resulted disastrou-y hs
yet and there il immediate prospect OF pane III TIE
sucarrade or anything looking in that direction Ihere
are two parties in the market at present waiting Tor
speculative movement; one laboriDg to break uo"n
prices 80 as make heavy purchases on the eNpec"o"
of rise and the other striving 10 force prices ABOVE ~
present low figures, ia order TO avoid loss hcpoSi
nished by Interested dealers on either SIDE are moro OF
less colored by their present prospective operations
and ID has been difficult to secure an unDassea account
NJ thu recent gpecuaons and the causes that ed 10 INC
rapid decline. 4 member OF dsinteteN"u "i"'
thoroughly familiar with the sugar-trade' anu
10 THE TRIBUNE, has furnished clear statement VI 'no
entire subject. In the course OF q lohs '"iN WV"
TRIBUNE reporter, he said:
on rracanainted with the matter would suppose from
what has been published that there had never been 30
heavy a stock Of sugar In New-fork rs at the pro'cn
time and that the price was lower than ever before io
fact is that the stock here on August l. although
more than double that OF last year, was not so
heavy a. on August l Of each year from 1870 TO
1az5 The consumption has fallen only a little
The decline is estimated by The NEG YORK Frice
Current AT per cent and the stock is ouly lew
months supply If suppose the receipts Tor inc pa
ance Of the year be equal to those of the same nne
Iaefyr W
market OF the world aud the lowest The price
to-day is no than it was in March last soon after
that date there was a strong upward movement and the
price Of fair good refining Ndscoyato sugars-Whcn
are the staudards-adyanced to 1O4SIOi2c. since
that time the price has declined, until II is now oiaS2c'
for the grades"
As 10 the losses this informant stated:
"They have been greatly exaggerated To reach INC
figures which have been given must start Win the
supposition that all the stock here bought at
the very highest point and is to be sold mt INC very low
est but this is treat deal, IN fact the buk Oh
the stock less than the highest price, ana lo
holders do not loose very much at the present hg
urcs There has failure 10 make money 'nn
actual loss Take for nsan the sugar held here no"
ON account Of Cuban plantcrs-aud there is great deal
OF It, They have failed get 1Ol2 cents for Their good ro
timing Muscavado and can get today only o2 ceh'S' o
they have not actually lost the difference moreover
the loss is well divided up There are only lew very
large holders and they all well able To sustain the
los, without Inconvenience great part OF the loss VIII
be borne IN Cuba and the profits OF Last season ana Tue
early part Of this viii 20 far to reduce the amour"
For the causes the heavy decline Of prices IL the last
two months We must 20 back lttle during the war
and for some years aiterward, the business oi Ie"s
sugar was very profitable aud many new rcfneHes we're
built and several reincrIes were enlarged. Atier the
manic there came change and the early months Of 1870
foupd the market very dun and unsatisfactory aud sew
era refners in critical condition. This state oi tlhnS'
continued. and when Congress added 20 per cent
TO the duties which nearly one-haif cent god
per pound it had little or no effect on the prices mere az
though il increased the cost Just that much Soon 10"
lowed failures anng refners aud ia the spring OF $50
while the weak firm, wecic out, the entire class
of rcfncrs was somewhat dlscredited and I'M
able 10 buy TO the extent needed, nom the
fact that the banks and capitalists would not take
refner- paper Tbs forced many ~ the large rrhhers -
import on their own account Abou, tins time 1t became
settled fact that tine Cuban crop short and prices
advanced In November 1-7G fair 10 good refining
reached o. los cents from Tiara cent, I'm the Spring
of that year OF an who had touched sugar made
money, particularly the rehucrs, who had WNestcu
largely in an parts OF the suSirproducnS world a l'"
rife. and As IL wele against their will. The season
may BE- said Ia end in November and To re open lh req
ruary, when the new Cuban crop begins TO come
i'm During the interval tIe stock dwnd.ed down To
almost nothing. Meanwhile the refners on account OF
the success their importation venture of 1876 sent
ont heavy orders The first arrivals of sugar are rs
rulc largely Of low Musc0yadocs, which not properly
wrced aud which, # put into store, Will lose very
heavily IN weight aud in that way do away with almost
all ralu which an advance IN price might bring. These
have Ia be sold eX-Wharf and under the pressure To
realize the price declined TO e5-ass cent?. But
iu the meantime. the Cuban crop Mas again re-
ported to be short, and The moment this pres
sure was removed prices began to advance uniil al
ie end Of May they reached the highest point These
nigh figures attracted TO this market sugars which natu
rally wouI have gone to other points, and at tIe same
time the impoItatlous Of the retuers came in freely.
There were not buyers and the stock accumulated Then
followed a series of incidents which, while not OF nuch
importance separately taken together had considerable
influence ON the market First came discovery OF great
discrepancy between the stock OF sugar given by the
Custom House books and that furnished by the brokers.
The simple explanation Of this seems To ne mat
the brokers had not added the stock Of the regular i'm
porters which they knew, the unknown quantity I'M
ported by the rcGneIs The next Incident was the APP
uontmcut Of the committee rather the request To the
committee already appointed from the Secretary OF the
Treasury to inquire INTO the question OK The drawback
on refined sugar Then the strikes occurred. when put
an end to an business; then the fraudulent colorng
agitation and newspaper articles about the millions
locked up III sugar Naturally there mill ons locked
M in that as in all great products. The stock on Aug
600"
In regard 10 the exact amount OF losses sustained, this
gentleman said tho entire stock could hnd mar
F now il could he DISPOSED of at an aggregate loss
creased should further decline occur The 'uik OF the
loss would fall upon the consignors AT tuD aud else
where He denied emphatic terms that there was the
rcmotest fear of panic, that any firms oil standing
would be seriously affected by the decline.
on the subject OF ' draw bdgSs," he said:
The agitation Of change always very injurious to
the trade The fear is that "a sudden order from the
Treasury Department mIy interfere with contracts, ana
upset cmcnts already made, rs IN the case Oh the
change suddenly ordered by secretary BrisOw. The
drawback question Ia this country, where tie underlying
principle that 10 bounty shalt be paid but only the
duty snail he refunded, is very difficult one aud one
winch cannot be settled, under our present ttrn
10 have fixed uuclaug,ahir rate 4 liable To De
,ugi ,youI KIN me a. port trade therefore the only
true and practical plan 10 allow refining IN bond.
The single objection have heard 10 this D., that 10 would
open 10 fraud AID corruption. II this be valid
objection II Is one that applies 10 every department 81
the CusOmlOuse, but 10 10 not real or substantial civil
service reform VIII gave rs honest officials. aud that Is all
In regard 10 the charges authorizations Of sugar by
the coonEs pr3Cos-, tnt lolioNs statement was mali