Evening star., 1919-10-12
By SIDNEY BALLOU.

TINE facts in regard to the SUI
gar shortage are fortunately
undisputed, whatever may be
the difference of opinion with
regard to what should or should not
have been done. These facts as estab-
lished before the Senate committee on
Agriculture are as follows:
l. There has been no shortage of
actual supplies Of sugar available in
this country for this year. On the con-
trary. more sugar is being furnished
and consumed in the United States
this year than ever before.
2. The shortage is caused by an ex-
cessive demand and the effort to sup
ply sugar enough to meet that de-
mand. Our pre-war consumption ave-
ragged about eighty-three pounds per
capita and our wartime consumption
seventy-f1ve pounds. This year the
consumption Is running at the rate
Of ninety-two pounds per capita.
3. For the first nine months Of the
year there has been furnished and
passed into consumption-thati is. sold
by producers and refners to the trade.
-3.263.000 long tons. as against last
years figure to the same date of g.
661. 900 long tons. Our total consump-
tion for the whole of last year was
100000 tons.
4. The world production Of sugar
is about 100000 tons short of the
pre-war average and this years pro-
duction is nearly million tons short
s. In the midst of this world short
age the American consumer has been
furnished sugar at price substan-
TALLY lower than that prevailing in
any other country, and very low In
comparison with the increase in price
in other basic food commodities.
Variance in View.
AS to the deductions to be drawn
from these facts there is a difference
of opinion. The Sugar Equalization
Board takes great pride in having
thus furnished this sugar to the
American consumer at this price In
the midst of a worlds shortage. 1t
is open to question, however, whether
they have not made an economic mis-
take in so doing, for which we are
about to pay in the shape of short
age and Of extraordinarily high
prices.
It would be an ideal arrangement If
the price of sugar could be fixed at q
point which would yield fair profit
to the producers, the ref1ners and the
distributors and could be supplied to
the consumers indefinitely at the re-
sulting price. Such an arransement
and that is the law of supply and de-
mand.
fuctuates and is constantly main
tanned at a point at which the COM
try ia lust consuming the available
s,innly as it comes to the market. If
the demand increases or the supply
10 diminished, the price rises until
the consumption Is checked accord
inp1y II the contrary happens de-
crease in price stimulates the con-
When price is fxed based solely
vnon cost of production and distribu-
tion MUS a fair profit, 1t may happen
that the resulting price Is such that
the consumer will proceed to do as he
has done this year-that is, eat up a
nnruaI years supply in nine months.
when this happens, one of two things
wat he done, either the price must
10 Increased or the sugar must be
ra+ioned. Failure to do either will
Inevitably result in shortage. Dur
ine the war Hoover administered su-
& as mon the basis of cost plus a fair
55rna+ for all concerned. The costs of
~ nroducers and refiners were care
e,i1,i and tmpartially determined, the
a,,yas In most cases being checked
,,5 5 Nv the tariff commission. The food
INSTRUMENTATION - never fixed the price OF
a commodity without first calling the
nroducers together, examining their
costs, and finally agreeing on a p@ee'
This avoided the most dangerous pit
tam ~ nrice fixing. which is the dis
camra cement of production.
Hoover's Drastic Rationing System.
At the other end Of the line, in order
+o overcome the natural working of
The law Of supply and demand. Hoover
adonted a drastic system OF rationing.
l aS 10 atnrera who used SuRar were