New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-17
Trading in Sugar
Futures Halted
To Check Rise
Dealings on Local Exchange
Suspended at Request of
Food Administrator

Initial steps in the regulation of
prices for sugar were taken yesterday
when, acting on a suggestion from Her
bert c. Hoover, National Food Admin
istrator, the managers of the New York
Coffee and Sugar Exchange ordered
trading in that commodity for future
delivery suspended.
This action comes as a climax to a
long period of advancing prices, during
which the quotation for raw sugar has
advanced from about 1882 cents
pound, cost and freight, at the begin
ming of the war, to ga cents last week,
the highest price on record, and the
price of the refined product has been
steadily boosted from about Az cents
to above cents a pound.
Shortage in Europe
Mr.. Hoover, in a letter to officials
of the local exchange, explained his
action on the grounds of decreased pro-
duction of sugar in France and Italy
and the isolation of England from its
usual Continental supply.
George W. Lawrence, president of
the exchange, complying with the re-
quest to suspend further trading in
sugar, stated that it was the purpose
OF the members of the organization to
cooperate with the government in every
possible way in stabilizing prices of
commodities. He also announced that
a committee had beer appointed to go
to Washington to confer with Mr..
Hoover.
Heads of the large refining concerns,
it is understood, nave also been sum-
moned to confer with Mr.. Hoover in
regard to fixing sugar prices.
Among brokers who have been deal
ing heavily in sugar futures in recent
months it was the general opinion
that such trading would not be re-
vived, during the remainder of the
war, and the action taken by the eN-
change caused a considerable stir in
Wall Street, especially in the vicinity
of Hanover Square, where the majority
of coffee and sugar dealers hold forth.
Officials of the exchange appointed
temporary liquidating committee,
through which members desiring to do
so may liquidate existing contracts.
Prices at which contracts may be
closed out were established by this
committee as follows:
August, 6.2s; September, els; Octo-
Der, 5.9s; November, 5.73; December,
5.3S; January, 4.9S; February, 4.8O;
March, $50; April, 4.S2; May, 4.S4;
June, 4.S6, and July. 4.SS.
II was stated that it was not com
pulsory 70 settle up contracts now, but
if settlement is made it must be in
accordance with this schedule. No new
contracts whatever will be allowed.
Officials of some of the refining CON-
panies expressed the opinion that the
suspension Of trading in sugar futures
would not have much effect on prices
one way or the other. Some Of them
did not conceal the fact that the ces-
sation Of speculative operations would
cause them no displeasure whatever
It was admitted, however, that since
trading in sugar for future delivery
was inaugurated in December, 1914,
there have been occasions when the
refiners have found il to their advan-
tage to trade heavily on the Coffee and
Sugar Exchange.
Rise Induced Speculation
There has also been heavy trading
for the account of Cuban and Euro
mean interests. Plantation owners in
Cuba. it is explained, have taken adj
vantage of the opportunity to sell their
crop in this market for future deliy-
cry when they deemed prices satisfac-
tory, and on the other hand exporters
have bought heavily to assure them
selves of sufficient supplies to fill for
ward orders. All the while the steady
rise in prices which has taken place
since the war started has inspired a
great deal of speculation Oy those
whose only interest in the market was
in the profits represented By adYanc-
ing quotations.
or late, rising prices have been CO.
incident with the shipments every
week of large quantity of raw sugar
from Cuba 20 England. Il is esti-
mated that there are some 100000 tons
of sugar now in Cuba awaiting ship
ment to Europe. Owing to the revolu-
ton in that country early in the sea-
son. estimates of the Cuban crop were
cut from 100000 tons 70 around 3,0OO,-
600 tons. Stocks of raw sugar at At
lantic ports on August were estimated
at l76.79l tons, or about 10000 tons
less than last year. while consumption
for the first half of the year 1917 in
creased 10 per cent over last year when
for the entire year 3,65S,6e9 tons were
consumed. On August s, 1917, Cuba