The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-06-25
BoUNTIEs FOR BEET SUGAR.
Effect in Europe Seems to BE General
OverproductiOn.
New York Times.

There is a general cry of overproduction
among the producers of beet sugar in Eu-
rope. 1t has been stimulated by the export
bounty system, and so much capital mas
been invested in the business that compeu-
ton has become destructive.
In Belgium the manufacturers are clam
oring for more legislation for their beneht.
They have sent to the Chamber in Brussels
a petition asking that remedial measures
be at once passed Nor are the otner ma
tions in the struggle in more adEanta-
geous position, for their tables OF statistics
for the fiscal year show huge amounts of
raw sugar left on hand, which can neither
be sold for home consumption nor exported
to their rivals.
According to report recently published
in La Sucrerie Beige, the nations are
ranged according to their production in the
following order: Germany Austria,
France, Russia, Belgium, Holland-Ger-
many last year producing 1850, 600 tons and
Holland 150GO0 tons. But compared on the
basis of population, area and quantity ex-
ported, Belgium passes to the head of the
list
In the past year there has been general
decline in sugar quotations, and prices felI
from $617 per 220 pounds (April, 1886, to
The situation in Belgium is briefly sum-
married. from a report made by Henry Z.
Marris, United States consul at Ghent'
Under the present system the govern
ment annually fixes a certain quantity or
tain gross sum of 81, 15S, 900 as the amount
of tax to be paid by the manufacturers.
This amount is divided pro rata on indlVld-
ual production. The quantity to be exported
by each firm is, moreover, limited by TIE
quantity of production and, of the tax
charged against it and to be paid by 1t;
for the bounties must not exceed the
amount Of the tax, namely A158,0OO. The
quantity for export, therefore, being linn
tied, the surplus of sugar manufactured
must be sold in Belgium This surplus has
been so large in recent years that the price
has fallen to less than the cost of manu-
facture.
It is to avoid this loss that the manufac
turerS now propose to pay the sum assessed
against them, 81, 158 900, Internationally. The
manufacturers would necessarily be out the
amounts paid by them as a tax and which
now in case of deficiency in prOdu lion,
they receive back, but the increase of the
export drawback proposed and the larger
quantity of sugar permitted to be exported
would fully compel safe them. Exports be-
ing larger less sugar would be offered for
sale in the c)uHtry, the supply would be
more proDO.tt3uate to the domestic demand,
prices would De better, and the profits on
domestic sales would surpass the amount
of the excess of tax paid; hence, the SltUa-
ton Of the Belgian sugar manufacturers
would I've much more favorable than under
the existing system
According to the report of Julius Muth,
United States consul in Magdeburg, the
effect of the German sugar law has been
somewhat similar, in spite Of the German
present appearances the stock of 1861 re-
naming unsold will be tremendous, and
must press heavily upon the market when
the new crop comes in.
Reduction in the area under cultivation is
pointed out as a remedy, but 1T can hardly
be expected that the Reichstag will revise
the new law, after its few months trial,
or permit even an amendment. But unless
this be accomplished and the proVOcation
for enforced production thus in a measure
removed, the already dark prospects of the
industry will become still gloomier and the
weaker factories can hardly avoid being
driven to the wall.