Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1895-02-28
RIVALRY OVER SUGAR.
Germany, France and Austria Strug-
gle Over the Bounty
Question.

Washington, D. c., Feb. 23.-Accord-
ing to the cable advices there is promise of
a very singular struggle III Europe for
the control of the sugar market, and the
United States which receives a great
part of its sugar from the countries in
involved will naturally be much affected.
The practice Of encouraging the growth
of sugar beets and the production of
sugar therefrom by the payment of a boun-
ty on exported sugar has long obtained
in Europe. The result was such as to
exceed the expectation and soon the beat
sugar output assumed such great proper
tons as to seriously injure the market
for cane sugar. Without increased pro-
duction prices began to fall and the gov
ernInants were compelled to increase the
bounties in order to satisfy the great ag-
rscultural interests. Naturally the coun-
Try which paid the largest bounty has
command of the sugar market for its pro-
ducers by the aid of the bounty could UNI
dersell their competitors. The burden OF
these bounties at length became too great
to be borne after which an effort was
made to reach some kind of an arrange
ment between the different competing
countries whereby relief could be secured.
The three great rivals were Germany,
France and Austria. Germany began by
giving notice of the termination of her
bounty system in 1897 and the other
countries adopted more or less direct
means of reducing the bounties. But 1t
appears that in Germany the beet sugar
industry has obtained a hold too strong
to be shaken Off Under encoura cement
of the bounty system great tracts OF land
which were formerly covered with wheat,
rye and other cereals We're given up to
the sugar beet, and all through the coun>
try the factories sprung up for the max
ing of the beet roots into sugar, thus
giving employment to many thousands of
people. The government finally became
alarmed and sought to discourage the ex
tension of the industry, but without avail.
The farmers claimed that they could not
go back to cereal raising, for they could
not meet the competition of America and
Russia and Argentine grain, nor could
they raise stock at profit.
The crops of beets increased and
prices went down so that last year all
but the very largest factories lost money
and the assurance is facing the Germans
that this year owing to the enormous
crop they will fall much lower. To save the
farmers from ruin it is believed neces-
sary to extend the foreign market for
German sugar and this can only be done
by the increase of the export bounty.
To do this would violate the tacit under
standing between the three great Compel
ing powers and cause distress, and the
mere suggestion of the German Fro
the French council that they will meet it
by increasing their own bounty. Aus
tria also is expected to be heard from in
the same tone. and it is predicted that
if the battle once begins again the slngu-
lar spectacle will be presented of three
countries striving to see which can pay
out the largest bounty. with the ultimate
result like an American railroad war.
of giving the exporters practically free
sugar to sell.