The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1914-08-15

100000: Russia, 100000, and other
European countries 796,700 tons, max
ing In all a total OF 8,254.700. SO
you see that the war has cut on the
sources practically of more than g.
0O0, 900 tons out OF 100000 tons Of
the worlds supply. The most signifi-
cant feature OF the situation is that
England Is not among the sugar-pro-
ducing countries Heretofore she has
drawn most OF her supply OF raw pro-
duct from the continent. Her source
there is largely cut OF because even
In the countries which are fighting
with her In the war, only fraction
of the beet crop will be harvested
while the war Is In progress. The re-
suit Is that English refiners have
turned to this country. The pressure
OF the whole world market Is being
borne largely by the market for the
remaining portion Of the Cuban sup
ply:
1.-TWO weeks ago, raw sugar was
selling In New York for 1926 We
selling In New York this morning for
$7.25 hundred. which is within 10
cents of the Wholesale price OF the
refined product. You can figure out
what that will mean for the refiner
unless the price of the finished pro-
duct goes still higher. II takes a
margin of from 70 cents to 81 to
cover the cost of refining. You can't
stay In business and pay more for
your raw material than you get for.
your goods after they are produced.
Sugar Is a product that responds
quickly to changes in It's supply be-
cause of the inelasticity of its con-
sumption. When the supply of pro-
duct falls of, the price goes up till
1t Is adjusted to the new condition.
The amount which II will advance de-
ponds on the number of persons who
are willing to pay the higher price.
Some products are such that we
want just about 80 much OF them
whether the price Is high or low.
With them II takes q large rise In
price to exclude any large share Of
the purchasers from the market.
Sugar Is one Of those products. We
had prices almost as high as they
are now three years ago when there
was shortage of the world crop and
there was no war In progress then
either"
You couldn't speculate. in sugar
now II you wanted to-" declared K.
A. Elliott. Of G. Elliott. q Co., whole.
sale grocers, Friday morning. I'VE
were In the market yesterday for
5000 barrels. but 500 was all that we
were able to get Nobody will sell
sugar to you. From the reports that
have been circulated. one would think
that an effort was being made to
boost the market. Just the opposite
Is true. The American Sugar Refining.
Co. has been quoting q nominal price,
approximately 80 cents a hundred be-
low what you can buy at, In an effort
to hold down the market.
English refiners may deny that
they are buying In New York, but
they are all the same. There Is q
reason for such denial. 1t Is to
their interest to keep the price down
all they can.
1T used to be that the retailer was
blamed for high prices. Now 1t
seems to be the wholesaler who is
charged up with them. Perhaps at
that rate the responsibility soon will
be carried back to nature and nat
ural conditions where It belongs.
THE wheat and -four situation Is
somewhat different from that OF
sugar. Wheat always has been q
speculative product We have seen
that In the past. Whenever there has
been the rumor Of Balkan war,
wheat Immediately jumped peg or
two on the market. That Is the con-
dition now except that It Is more
than a Balkan war. The public Is
specializing on the possibility Of the
re-esta blishment OF trade relations
and consequent opportunity for the
export Of wheat to Europe. IL the
expectation does not come soon there
may be q reaction and fall In price,
but otherwise 1t likely Will remain
high.
But II isn't the miller or the
wholesaler who has bid up the price.
There il no speculation going on in
sugar except that OF the consumer.
The consumer q laying In supply.
Our sales have been in the last week
the equivalent OF an ordinary months
business"
Mr.. Turner predicted that the price
Of sugar. will remain up for at least
a season or two unless the war IL cut
short soon.
The women. children and old men
who are left at home to harvest the
present crop, cannot do It except In
superficial way" he said. "The
seed supply for future crops n bound
to suffer SO that II probably will take
several seasons for conditions to
reach normal again even after the
close Of the war;"