The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-11
The SUGAR BOuNTIEs

1t is reported from Washington that
our government Is intfull accord with the
action of the recent international con-
ference at Brussels, which decided to
abolish all direct and indirect bount.es on
surtax to a uniform rate OF francs and
the imposition of countervailing duties
on foreign bounty-fed sugar. Our govern
ment will therefore remove the counter
vailing duties on bounty sugar so far as
the parties to the Brussels conference are
concerned.
The conference, according to our minis
ter, Mr.. Townsend, agreed to adopt uni
form tariff on imports of sugar OF $1.1e
per 220 pounds or half a cent pound
Our government cannot, of course, agree
to such a rate on sugar without congress
stonal action. AS to the removal Of the
countervailing duties. this can be az
complished by the treasury department.
The conference wrestled long before it
decided to abolish bounties on sugar.
They discussed the matter for two months
and were only moved to action by the
pose countervailing duties if the sugar
bounties were not abolished. There was
in this British threat desire, If 1t was
not expressed, to protect the English SUI
gar refiners and the British colonial SUI
gar producers who have suffered through
the crowding out of cane sugar by beet
sugar. England is an enormous consumer
OF sugar, the per capita consumption be-
ing 81 pounds. while in our country it is
81 pounds. The idea of being shut off
from the British market led the Brussels
conference to its decision.
The bounty system of building up indus
tries has been carried to very irrational
extreme in Europe. The enormous out
put of beet sugar, notably In Germany,
and the resultant competition, are due to
the big cash disbursements in bounties
by the several governments. The beet
producers have been so long fed from the
government treasures that all efforts to
get them to cultivate reduced areas have
failed. The bounty payments have be-
come serious burdens to the public treas
uries. France has come to the point when
she has not enough money in, her treasury
to pay more than half the bounties and
meantime the production of beet sugar is
far in excess Of the demand and it's ef-
feet upon cane sugar production has been
disastrous, notably in the West Indies.
AS, the sugar bounties are not to be abol-
ished at once. but in September, 1903,
PtaY~ f1uo rtx tad G h
able that the overproduction of beet sugar
will continue until that time, as produc-
ers will hardly curtail their operations
out Of consideration for the bounty pay
ers, and low prices will continue for some
time Had the British government levied
countervailing duties it is possible some
of Germany's 400 sugar factories would
have been obliged to close. The beet
sugar interest in this country has as
sumed that the action of the Brussels
conference would cause an Immediate adj
vance in the price of sugar, but this is
evidently mistake as has been shown,
Mr.. Oxnard has used the action of the
conference as an argument against giving
any tariff concessions to Cuba, saying
that higher prices will relieve the Gu
ban producers. High prices would indeed
relieve the Cuban planters, but they will
not get them from present appearances
until 1904. -..... l.
The action of the Brussels sugar con-
ference will have to be ratified by the
governments represented at the confer
ence and some protests against it have
been recorded. 1t does not look now as
If the determination of the conference
can be overthrown. Forcing sugar pro-
duction artifcially has become an opera
ton and burden too grievous to be borne.