Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1905-02-10
Sugar Expert Martineau
Give His Opinion
On Situation.
SHORTAGE IN Beet CROP
CANNOT BE OVERCOME
IMPOSSIBLE TO OVERCOME THE
SHORTAGE CAUSED BY THE
HT-cONvENTiON
NOT RESPONSIBLE.

| ONOOSF I-CONVeN IION
NOT RESPONSIBLE.
The International Sugar Journal
publishes in its January issue the fol-
lowing letter by the sugar expert Geo.
Martineau. The letter was originally
published In the London Times In con-
nection with discussion of the effect
of the Brussels Convention:
Sir: II is difficult to make the general
public understand how absolutely un-
founded is the present cry that the
abolition of bounties has made sugar
dearer. The following figures will con-
vince any one who will have the pa
thence to read them carefully.
The European beetroot crop of 1902
stimulated by enormous cartel and 9TH
Ell bounties, produced 6,720.000 tons OF
sugar. The supply was so excessive
that prices went down to 6s per cwt.,
(which Is at least IS per cwt. below
the European average cost Of produce
ton. At the end of that season. on
September /, 1902, the account stood
as follows:
Tons.
Worlds stocks. Sept. 1, 1901. 1,OS6,00
Worlds visible production.
1902 ..................... 10, 1854 900
! Total supplies. 1912. .12,050, 900
Worlds visible consumption,
19O1-2 neutrality-suspicious. O,OOi,O 900
Stocks, Sept. l, 1902. ......... 100000
This stock was about 1,500. 900 tons in
excess of the requirements to carry us
over into the new crop. This, and the
ruinous price. caused the sowings to
be reduced in the spripg of 1902, In
spite Of the fact that the bounties
would continue for another Is months.
The beetroot sugar production In Eu-
lrope amounted in 1923 10 $50, 900
tons. a reduction of 1,150,000 tons, and
prices recovered-prematurely. as It
turned QUITO SIS per cwt., a price still
below the European average cost Of
production.
II is evident that this reduced pro-
} duction and increased price was the
effect of the over production caused
by the bounties, not of the distant
prospect of their abolition Is months
afterward.
But In spite Of this reduction the
glut Of sugar caused by the bounties
continued. as shown by the account
at the end of the season 1908:
Tons.
Stocks. Sert. l, 1902. 2,Oi6,0O0
Worlds visible production,
1908 observation-disclosures. 9,912,OOO
Total supplies, 1923, ..... l,95S ,00C
Worlds visible consumption,
1908 ..................... 9,9l5,O0C
Stocks, Sept l, 1908. ......... 2,04S, 00(
In 1908 the European beetroot croI
was increased to 5,SS0.000 tons, In spite
OF the fact that bounties were about tc
be abolished before the sugar coult
come on the market. This increas,
was quite justified by the anticipated
increase in European consumption
when duties and surfaces were reduced
The account at the end of the season
stood thus:
Tons
Stocks. Sept. 1, 1903. ......... 2,043,00
Worlds visible production,
1904 .................... 10 90
Total supplies. 1904. 80. .12 LAG, 90
Worlds visible consumption.
19O3-f NEUTRALITY-SUSPICIOUS.. III ,Ol9, 90
Stocks, Sept l, 1904. ......... 1,427,00
Thus the excessive stocks had bee
reduced from 2.O43.0OO tons to 1,427,00
tons. This was still excessive and ha
been fully anticipated Prices there
fore for some months at the beginnin
of this year remained at the low figur
Of ss to IS Cd per cwt.
Clearly the abolition OF bounties ha
had nothing to do with this small ris
in the price OF sugar. II the beetroc
crop this year had given normal yiel
1t would have produced about $4,000
tons OF sugar. We have also rel
able estimate of what the rest of tn
world will produce and can, therefor
frame a prospective account OF no
matters would have stood at the en-
OF the season. The consumption wi
not attain the figure OF last seaso
which was abnormal, owing to Il
depletion of invisible stocks previol
to the European reductions OF duty G
September l, 1908. But, even taking
at nearly that figure. we, get the 70
lowing account for 190i-5:
Tons
. Stocks, Sept. I, 1904. l,427.0
European beetroot crop, about 5,700,0
The rest Of the worlds pro-