The Blackfoot optimist. [volume] (Blackfoot, Idaho) 1907-1918, 1914-12-10
WHY SUGAR Is CHEAP


the movement attracted q great
amount of attention in every part OF
the country. All sc1ts of alleged ex-
plantations were put forward. The
increase was attributed to the hold
ing back of beet sugar, regardless Of
the fact that not beet sugar fac
tory in the country was in operation
when the war began and that scarce.
ly a pound of beet sugar was avail
able in any part OF the country. 1t
was attributed to the big seaboard
refiners, although the refiners were
taken as greatly by surprise as was
everyone else in the country by tn,
outbreak of the war and had only
their usual stocks on hand. Gradually
the facts in the case reached the
public, and it became generally under
stood that the increase in prices
was due to the very heavy purchases
of raw and refined sugar in New York
by Great Britain, due to the shut
ting off of her usual supplies from
Continental Europe.
Since August refined sugar has de-
clined from its high point of rs cents
a pound to cents, while unrefined-
sugar went down from 6.5 cents to
3.5 cents. Outside of tho sugar
trade, however, this declining move
ment has attracted very much less
attention than did the earlier in
crease in prices. No public official
has accused the beet sugar compan-
les of a conspiracy to bring down the
price of sugar; no threats of an in
vestigaticn have been made; and the
consumer has accepted the lower
cost of this essential commodity with
satisfaction and has not bothered to
ask questions as to the reason for it.
And yet here is presented an in
dictment to which the domestic su-
gar producers of the United States
must plead guilty. They arc primar-
lily responsible for the great decline
in the price of sugar during the past
two months. Except for the dOmcs-
tic sugar industry the consumers of
the United States would still be pay
ing the high prices that prevailed in
August and early September. It is
just as important to the welfare of
the American people that they should
understand this fact as it is, that
they should rightly appreciate the
cause Of the increase in prices at
the beginning of the war.
The downward movement in the
price Of sugar began about the middle
of September. It's direct cause wac
the appearance on the market in Chi
cago and other Western cities Of Cali
fornia beet sugar, which was offered
at 6.25 cents a pound, about cent
a pound below the price of cane re
fined in New York. The first Of
this sugar to appear was what is
known to the trade as second hands
That is, it was sugar owned by those
who had contracted to purchase II
from the beet sugar factories at low
prices before the beginning of the
war and who were able to realize {
very satisfactory profit although
selling we'll below the level of sea
board prices.
AS the campaign of the beet suga
factories advanced and the factorie.
throughout the West began turning
out out sugar, after October first
more and more homegrown sugar. wa.
offered in the markets of the Middle
West. The competition Of tho variou!
supplies of beet sugar offered from
many directions forced down price:
still further. The seaboard refinerl
practically retired from the marke
in large section Of the country ant
reduced their purchases of raw suga
to minimum. Several refinerie
actually closed down. Low prices ar
expected to prevail until the end Q
the year or until the bulk Of tn
American-grown and American mad
beet sugar is disposed Of.
Thus the domestic sugar industr
has performed it's annual function {
effecting a huge saving to America
consumers on the cost Of their 8,
gar. How great this saving will b
in the aggregate it is impossible
estimate as yet, but it is safe
say that the economy is far create
than any increase ever caused, by rel
son Of the existence OF tariff raj
that made the upbuilding Of the d.
nestle sugar industry possible.