Evening star., 1919-10-12
DEMAND FOR SUGAR IN u. S.
IN EXCESS OF PRODUCTION
Present Shortage Believed Due to Eco
nomic Mistake-Call for Bringing the
Consumption Back to Normal

dividual consumers were appealed to
sponded to an extraordinary degree.
Offenders against the regulations Of
the food administration were hailed
before perfectly illegal tribunals and
nned for the benefit of the Red Cross.
al! OF which was approved and sus-
tanned by public sentiment.
The present Sugar Equalization
Board Is corporation which was
formed by the food administration for
| the purpose of assisting in the control
OF the sugar situation. 1t purchased
the entire Cuban crop for this year.
o-thirds on our own account and
one-thfrd on account of our allies.
Added to our domestic sugars. this
seemed an adequate provision OF sup
! plles Tor the present year.
With the cessation of hostilities.
however. the consumption of sugar
began to increase enormously. Physt-
cal workers. who particularly need
sugar, were being paid high wages
| and could indulge in the luxury of
| sweets. Prohibition added to the de-
mand. By July / it was established
| that the country was consuming sugar
| at an unparalleled rate of ninety
| two pounds per capita, and at the
| same time the revised estimates of the
worlds production were published,
showing a shortage of a million tons
! production.
1t was evident that the law Of sup
ply and demand was making itself
| felt and should be reckoned with
Nevertheless neither alternative for
| checking consumption was adopted
An increase in the price would have
been unpopular and even at present
| the equalization board insists that it
/ will maintain the present price on all
sugar still within its control until
the close of the year. Rationing would
| have been still more unpopular. even
If 1t were still practicable after the
relaxation of war tension.
Renders Shortage Inevitable.
Failure to adopt either expedient
rendered a shortage inevitable. The
Sugar Equalization Board apparently
proceeded on the theory that this
shortage could be postponed until
after the end Of the year, when 1t ex-
pected to go out of business 1t began
to borrow against the future First it
instructed the refiners to flll no more
export orders. thereby practically
placing an embargo on exports. All
our so-called exports. however. were
merely our allies one-third Of the
Cuban crop, which was being refined
in this country. SO that this amounted
to a temporary stoppage of their sup
plies, doubtless on the expectation
that 1t could be repaid without tncon-
yenience in the future. Like 80 many
| borrowers expectations. this has been
disappointed. For the balance OF the
wear the equalization board is de-
bending upon the domestic beet sugar
! crop to relieve the situation: This
again would involve a marketing OF
an unusually large percentage before
January l. and even IL the limits OF
railroad equipment permitted this to
be done. it would be more borrowing
against the future.
In August there arose the question
of the desirability of purchasing the
cuban crop for next year. The Cuban
committee opened the subject by pro-
fessing its readiness to negotiate,
though no price was mentioned. The
equalization board requested author
ity from the President. who is nomi-
nally its only stockholder. to begin
negotiations. but received no reply to
it's communications other than formal
Acknowledgements. On September %
the Cuban offer to negotiate was
withdrawn and President Menocal
! stated that it would no longer be pos
sible to control the Cuban producers
sufficiently to effectuate the sale at
fixed price. Nevertheless this Ques-
ton is still being agitated. and a bill
has been introduced in the Senate to
give the equalization board the neces-
sary authority.