The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1912-01-05
RUSSIAN BOUNTY
IS EXPLAINED


The London correspondents of Will
lett G Gray, in letter to that firms
sugar trade journal, under date of De-
cember 8, thus explain the Russian
bounty:
You are, no doubt, aware of the
fact that the Russian Government
regulates the marketing of the Rus
sian sugar more or less. A factory
with an annual output of say 10000
pools has a home contingent G) of
say II 500 pools, besides it must keep
permanent stock of say $500 pools,
leaving a free contingent Q1D of
say 10000 pools.
/ The Russian consumption is thus
fixed annually by the ministry, allow
ing each factory a certain home con-
tingent. The latter may be sold in
Russia or exported according to the
will of the factory, whereas the free
contingent must be and is generally
taken for exports. When a factory
wishes to sell part of Gid in the in
terror the consumption tax must be
paid twice. This is evidently done by
the government with the intention of
not depressing the markets unneces-
sarily. Is,
A factory, however, which exports
Ia part Of the whole of % gets So
called export certificate stating the
amounts which have passed the front
Ter. This paper frees the bearer from
the consumption tax payable in the
latter part of the campaign, at time
to be specified by the ministry, enti-
Ting him at same time to sell the cor
responding amount of Gid in Rus
STA without paying the tax of r. LIS
twice, but only once.
Now one lubricant exports the
whole of and perhaps large part
of L. Another, however, is not in a
position to export at all, possibly be-
cause he can sell his sugar at a bet
ter price in Russia lowing to high
/ freights, etc.. This latter buys from
the former an export certificate, and
avoids the double tax. The value of
these certificates vary, of course, l. e.,
/ if the demand from the home trade
/ is very brisk the price of this paper
will rise in proportion. 1t can never
surpass r. LIS, the amount of the con
sumption tax.
This is no doubt, what your friends
4 call export bounty. The sugar for ex-
port is cheaper than that sold in the
interior of Russia, as che exporter
gets the consumption tax back, or is
freed from its payments; besides he
can sell the export certificate. The
latter is worth at present 50 kopeken
per pood, and as it means a net profit
/ for the lubricants who export, he can
sell his sugar so much cheaper.
The allowance to ship sugar to con-
vention countries is another matter.
The 100000 tons which Russia is al
lowed to export to convention coun-
tries are divided amongst the Russian
factories, each one participating in
accordance with it's size and annual
output and receiving a permit with
the corresponding amount
The lubricants have formed a pool
which gets all certificates or permits
from them. AS the Russian Govern
ment will not let sugar to be shipped
| to convention countries pass the
| frontier, the exporter must provide
himself with these permits and buy
them from the pool which fixes the
price for them Last summer they
were worth only II kopeken per pood,
whereas now they cost 80 kopeken.
The big advance is explained by the
fact that Russia has a large crop and
wants to export every bag she can
get to other countries Thus conven-
ton permits are in good demand and
the pool knowing this circumstance,
has raised the price in accordance.
The money obtained by the sale of
these papers is distributed later on
amongst the lubricants in proportion
with their export contingent TO con
vention countries, no matter if the
lubricant has export or sold his sugar
to the home trade.
We arrive at the present export
value as follows:
Per pood.
The last price at which Crys-
tails were selling in Russia r. 1897
Deduct consumption tax pay
able in June, less interest. 1.72
225
Export certificates sold by
lubricants at present ..... so
66