The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-03-26
PRICE OF SUGAR
IS TO ADVANCE
Chicago Sugar Broker Explains
Workings of Reciprocity
Treaty with Cuba.

The blessings which have come to
the Cuban sugar growers since the
reciprocity treaty became a law and
the benefits which are to accrue to
American consumers when Cuba sup
plies all of their sugar are set forth In
the following interview with Horace
Earle, of the firm of Earle & Bend,
Chicago, sugar brokers.
Mr.. Earle shows that the Cubans are
not only enjoying great prosperity but
will continue to reap large benefits
from the treaty for years to come. Re-
garding the actual workings of the reel
proc1ty measure, he said:
At the time the reciprocity treaty be-
came effective last December there was
large quantity of the 1902-1903 crop
held in Cuba which had been carried over
for the purpose Of securing the benefit OF
the pending reduction In duty under the
reciprocity measure. There were per
haps 100000 tons, or 20 per cent of. this
sugar.
In addition to this amount the, 1903 1904
crop. the largest ever raised on the island,
began to come onto the market about the
same time. Production had, of course,
reduction in duty The result was that
the combined offerings OF the crops mem
toned were considerably in excess of the
requirements of this country during the
is especially light, SO that prices were de-
pressed approximately 15 cents to 20 cents
per hundred pounds below the parity OF
the rest of the worlds markets.
The actual reduction in duty on Cuban
sugar under the reciprocity treaty is about
30 cents per hundred pounds, SO that dur
ing the time of heavy marketfngs of the
Cuban crop In January and February the
Cuban grower actually secured the benefit
of about one-half Of the reduction in duty,
the remainder going. to the American re-
finerles. AS result of this cheap raw
sugar during the months Of lightest con-
sumption and sharp competition between
the various American interests, consum-
ers in this country secured the full ben
eft Of the reduced prices at which the
American refiners were able to buy their
raw product
Price of Raw Sugar Advances.
About the beginning of March suf-
ficient quantity of the winter sugar haG s
been marketed, say about 40 per cent OF
the crop. 1t removed the pressure on the
part of the Cuban holder to sell, with the
result that the price on Cuban raw sugar
in New York began to advance to par
ity with the other markets of the world
and today that parity has just about been
reached.
the Cuban growers will receive the full
benefit of the reduction in duty on the
remainder of their crop.
AS the Cuban production of sugar Is at
present. ctIQ Will LOT S0pStdl Cells COI-
tinue to be, only portion of the Amer
lean requirements from exporting coun-
tries, Cuban growers are: likely to reap
the same benefits from the reduction IN
duties in the years to come and to the
same extent that they have enjoyed this
year. This will make them prosperous
and greatly encourage the production of
sugar in Cuba SO that eventually that
island will probably produce all of the raw
sugar required by the United States from
exporting countries. When that time
shall have arrived Cuba's sugar industry
will be- so strong that they will need no
protection against other countries in the
American market and the American con-
sumers will secure. much cheaper sugar
than at present.
Concerning the present market. Mr..
Earle said that from now on into the
summer the price of sugar in this
country should gradually rise owing
to the approach Of the fruit season
and the fact that raw sugar from all
countries comes on to the market dur
ing the winter months, and from now