The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1914-08-27
REASONS FOR HIGH
PRICES OF SUGAR

Europe and America arc now en-
gagged in battle royal for sugar.
That is the primary cause of the high
prices that now prevail. Cut off by
the outbreak of the war from her sup
ply of 100000 tons of sugar ordinar-
lily secured from Germany and Aus
tria-Hungary, England turned to the
nearest available sugar market, which
happened to be New York. Backed
by cash, assuming all the risk involv-
ed in shipment and ready to pay what
ever prices might be necessary to Sc
cure sugar, British buyers invaded the
American market. Within little more
than week, they purchased almost
100000 tons of raw and refined sugar,
bidding up the market nearly 3 cents
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
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
brown sugar should begin to become
available in October The withdraw
al of 100000 tons from this supply
created a serious shortage, and in
quiries received in the New York mar
ket indicating that England would
seek to obtain several hundred thous-
and tons more Of sugar, and that 9TH
er European countries might endeavor
to purchase sugar here, threatened to
make this shortage much more serious.
AS a result, American purchasers in
the sugar market, seeking to protect
their own trade, entered into active
competition with the foreign buyers
in the scramble for sugar. To make
the situation more acute, consumers in
all parts of the country rushed to lay
in supplies far in excess of their or
binary purchases, thus accentuating
the scarcity.
The prize for which the buyers Of
Great Britain and America are con-
tending is the Cuban sugar crop. The
Cuban crop is about 100000 tons,
enough to supply one of these two big
customers, but entirely inadequate to
meet the needs of both. The prospect,
therefore, is for keen struggle on
the part of these two countries to Sc
cure the 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 cane growing countries
other than Cuba. The fact remains,
however, that the European nations
producing annually S,000,0000 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 sacrifced--how much remains to
be seen. At any rate, approximately
100000 tons ordinarily exported
from these countries is withdrawn
from accustomed trade channels and
this means a worldwide scarcity OF
sugar while the war continues and
probably for some time afterward.
The one 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 the sugar required by
the American people SO that we may
be independent Of other nations and
our consumers may be assured of .
permanent adequate supply of cheap
sugar