The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-12-26
The Sugar Shortage.


Babst. president OF the American Su-
gar Refining Company, made public
today a report on the sugar shortage
which has just been sent to stockhold-
ers of the company.
The report shows that with one
third Of the worlds sugar production
within the present battle lines, Eng.
land, France and other foreign coun-
tries have turned to Cuba and other
sources which ordinarily supply the
United States. 1t is also shown that
the immediate causes of the present
shortage are increased consumption,
too inadequate supply and delayed
distribution.
Early in 1917 there were serious
strikes in nearly all the Eastern re-
iineries This caused public appre-
hension. Sensational sugar famine
stories began to appear in the papers
later, and the public fears were still
further excited by stories of the de-
strutciOn Of cane in the Cuban insur-
rection. A desire by the trade to
avoid excise taxes proposed in con-
grcss added to the call. This de-
nand among dealers manufacturers
and sugar consumers continued all
the year and was accompanied by
hcarding.
A great midsummer canning and
preserving campaign urged by the
government. furthered by the trade,
by the canning clubs. and womens
magazines. and by the press general
y followed. SO that by November the
! consumption was shown to be more
han one thousand tons day greater
han the year before. 1t amounted to
nearly nine hundred million pounds
more than for the same period in
GIG. SO much for the demand.
Now as to the supply and distribu-
ion. java had plenty Of sugar. but
1t is SO far that ships took other trade
| channels The harvesting Of both
cane and beet crops in the United
! States was delayed, but, more import
ant car shortages and traffic congcs-
tion prevented the free movement of
hese crops to the Atlantic seaboard.
Very important in its effect on the
supply for, America from Cuba was
the proposal In June OF the senate
nance committee to repeal the draw
back Of over one cent q pound on re-
lined sugar sold abroad, and the
placing OF AN excise tax OF one-half
cent q pound. When raw sugar is
imported from Cuba or elsewhere, the
refiner pays duty on it. When the
sugar is refined and exported the duty
8 paid back to the refiner 1t Is call
I'D a drawback If the duty were not
hus refunded the reflner would have
% add the amount Of the duty to his
price to the foreign customer. This
would have the same effect as plac-
ng an export duty Of over one and
l-half cents a pound ON all refined
sugar sold abroad. Neither this nor
lny other great commercial country
imposes export taxes. because they
end to discourage foreign trade.
When the senate finance commit
ee made these propositions the sugar
industry urged that the higher prices
TO foreign customers would so dis
| urb the worlds sugar market as to
| ,reate q troublesome situation for the
United States. Seemingly to forstall
the expected higher prices, foreign
BUYERS went into the Cuban market
and bought heavily, thus reducing the
supply available for America. Our
imports from Cuba were about the
same as in previous years. but so
,reat was our consumption that these
imports were not nearly enough,
The proposition to repeal the draw.
back failed in the senate three months
later by SO to IL. but the damage had
already been done. Cuba's extraordi-
nary shipments to Europe had reduc-
ed our available supply for the fall
Aonths by nearly 45C,000,OO0 pounds
The sugar shortage in the Eastern
States will be relieved when the new
cuban crop begins to arrive in large
volume, early in the new year. The
report also explains the operation of
the United States food administration
40 IL offactS Sllpnr