The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1914-10-08
WHY THE PRICE OF SUGAR is
HIGH

Europe and America are now engag
ed in a battle doyal for sugar. That
is the primary cause of the high prices
that o prevail. Cut off by the out
break of the war from her supply of
l 800. 900 tons of sugar ordinarily Sc
cured from Germany and Austria-Hun-
gary, England turned to the nearest
available sugar market. which happen
ed to be New York. Backed by cash.
assuming all the war risk involved in
shipment and ready to pay whatever
prices might be necessary TO secure
sugar. British buyers invaded the
American market. Within little more
than a week, they purchased almost
100, 900 tom of raw and refined sugar,
bidding up the market nearly 8 cents
a pound in the process of getting it.
Their buying subsidized temporarily
only when they found it impossible to
secure further prompt transportation.
AS another war measure for securing
a supply of sugar, orders were issued
in all the ~sugar-growing colonies of
Great Britain forbidding the sale of
sugar except for imperial use.
At the outbreak of the war the Wis
ible supply of sugar available for the
American market was barely sufficient
to last until the new crop of American
grown sugar should begin TO become
available in October. The withdrawal
of 100 900 tons from this supply Great
ed a serious shortage. and inquiries
received in the New York market in
dicating hat England would seek to
obtain several hundred thousand tons
more of sugar. and that other Euro
pean countries might endeavor to pur-
chase sugar here, threatened to max
this shortage much more serious. AS
a result, American purchasers in the
sugar market, seeking to protect their
own trade. entered into active com
petition with he foreign buyers in the
scramble for sugar. To make the stu
alton more acute, in all
parts of the country rushed to lay in
supplies far in excess of their ordinary
purchases, thus accentuating the
scarcity.
The prize for which the buyers of
Great Britain and America are con-
tending 8 the Cuban sugar crop. Eng
land and the United States each i'm
port annually about 1000. 900 long tons
Of sugar. The Cuban crop Is about
SscVVsNVO tOLS ChO0Sh ~ ooPPAy OhN vi
these two big customers. but entirely
inadequate to meet the needs of both.
The prospect, therefore. Is for a keen
struggle on the part of these two coun-
tries to secure I he bulk of the coming
Cuban crop in case the war continues
for any considerable length of time.
When the present blockade of ship
ping is relieved. it is probable that
Great Britain. and possibly also the
United States. may obtain some sugar
from tropical ane growing countries
other than Cuba. The fact remains,
however, that the European nations
producing annually 5000. 900 long tons
of sugar. or As per cent. of the entire
worlds sugar supply. are now at war.
A large part of this crop will be sacri-
iced-how much remains to be seen.
At any rate, approximately 2,000, 900
tons ordinarily exported from these
countries IL withdrawn from accustom-
ed trade channels. and this means a
worldwide scarcity Of sugar while the
wal continues and probably for some
time afterward-
The n great lesson for the Ameri-
can people in the present situation is
the necessity Of encouraging and de-
veloping the production from Ameri-
can soil of all I he sugar required by
the American people SO that we may |
be Independent Of other nations and
our consumer may be assured OF a
permanent adequate supply of cheap
sugar.