The daily banner. (Cambridge, Md.) 1897-2008, 1917-12-20
TIE Sugar Shortage

Washib gton Dec, 19,-Earl d.
Babst, president of the American
Sugar Refining Company, made pub
lie today report on the sugar short
age, which has lust been sent to
stockholh hers of the company.
The Report shows that with one
third OF 1.-THE worlds sugar production
within the present battle lines. Eng
land, France and other foreign cOun-
tries haSe 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 Il supply and delayed
distribution.
Early lin 1917 there We're serious
strikes I'm nearly all the Eastern re
tineries. This caused public appre-
henSion.f Sensational sugar famine
stories began TO appear in the pap
ers latek. and the public fears were
still further excited by stories of the
destruction of cane in the Cuba in
surrecutn desire by the trade tC
avoid excise taxes proposed in Con
gress added to the call This de
mand almOng dealers. manufacturers
and su4ar consumers continued all
the yea{ and was accompanied by
hoardina
\ GREAT midsummer canning and
preserving campaign urged by the
GovernlRent. furthered by the trade
by the icanning clubs. and women's
magazines, and by the press general
ly followed, so that by November the
consumption was shown to be more
than on9 thousand tons a day great
er than 1.-THE year before. 1t amount
ed to r2early nine hundred million
pounds imore than for the same per
iod IN &916. So much for the de
mand.
Now Es to the supply and distri-
button. | Java had plenty of sugar
but 1t Isf so far that ships took other
trade CHANNELS. The harvesting oil
both caIn he and beet crops in The
United States was delayed, but more
ilnportaInt, car shortages and traffic
congcSt1t ion prevented the free move
mont of these crons to the Atlantic
seaboarf.
Very Smportant in its effect on the
supply For America from Cuba was
the protposal in June of the Senate
Flnancek Committee to repeal the
drawback of over one cent a pound
on rehr1 ed sugar sold abroad, and
the placing of an excise tax of one
half cerS a pound. When raw sugar
is lmpoHted from Cuba or elsewhere
the renAh pays a duty on it. When
the sugar is refined and exported the
duty is Spaid back to the refiner. II
is calleE a drawback. If the duty
were nXot thus refunded the refinel
would Eave to add the amount of the
duty TOT his price to the foreign Gus
toner. This would have the same
effect as placing an export duty OF
over o1Re and half cents a pound
on all Eefined sugar sold abroad
NeitheTk this nor any other great
commercial country imposes export
taxes b&ecause thew tend to discour.
age ~ eign trade.
VINE the Senate Finance Commit
Tee M g these propositions the sug-
ar ind try urged that the higher
prices foreign customers would sc
q = = - 2lcrld's sugar. market as
to creaqe troublesome situation for
he United States. Seemingly to
the expected higher prices,
foreigni buyers went into the Cuba
market and bought heavily, thus re-
lucing 1.-THE supply available for
America. Our imports from Cuba
we're about the same as in previous
years, but so great was our cOnSump-
ion tn bat these imports were not
nearly Enough. The proposition to
repeal the drawback failed in the
Senate three months later by 50 TO
Il, but Ithe damage had already been