Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1920-03-02
Sugar
By Frederic J. Haskin

been made one Of tho wealthiest and GER
tainly one Of the most prosperous spots on
the face Of the earth during the last tour
wears. Tobacco, prohibition and fruit
have contributed something to this pros
pcrity. but the main cause OF 1t Is the trc-
mendous rise in the price of sugar.
That acute shortage in sugar winch mas
inconvenienced almost every individual
in the United States and Europe has pour
ed wealth into Cuba at an almost IN
credible rate. The world catastrophe OF
war has been to Cuba not only . blessing,
but veritablc salvation. just before tne
war broke out, the Cubans were financially
fat on their backs. Raw sugar WAS bring-
ing about two and hall or three Genus
pound. 1t scarcely paid to grind IT. a
financial crisis threatened. Then came
war and the steady upward trend OF sugar
prices. ,xo,o ~
The sugar crops OF 1917-lS and 19ls-i9
were practically Communicated by the
United States Sugar Board. Theoretically
the Cubans were free TO sell their sugar 10
whomever they pleased, but the United
States government let it be known that IL
would regard it az a friendly act II the
Cuban sugar was all consigned to the
United States The ACCESSIBILITY OF per-
forming this act of friendship Was en-
phasized bv the fact that the United States
controlled the shipping, and that Cuban
who wanted to sell his sugar somewhere
else would have had hard time getting
ships. In effect the Cuban sugar crop was
taken by force to this country, but the
Cubans did not object or complain be-
cause they got from S4.60 to $3.50
hundred pounds for their sugar, and that
seemed at the time to be very good price.
BIG PRODUCERS COMBINE.
When the next crop--that is, the one
now being ground-came into the market,
a good many of the large Cuban producers
thought it would be a good idea to sell 1t 10
the United States Sugar Board again. In
this they we're not motivated by frIend-
ship for us or by fear of q shortage OF ships,
but bv the fact that they thought II they
could get sc. SO hundred for the crop
from the sugar board, they would be dong
very WELL Several of the big producers,
owning about one-thrd OF the Cuban
crop. got together and wrote letter TO the
sugar board offering to sell the crop at that
price. Other sugar producers differed WITH
these, and preferred to hold out Tor nigh
or price in an open market, but II the sugar
board had accepted the offer, 1t could have
secured at least half of the Cuban crop IN
Hi pTtDaDiltNs anu IL t'tt
averted the sugar shortage and the high
prices from which we are now suffering.
The sugar board refused to make the
purchase for reasons which have been ex-
blamed in a previous Haskin Letter. 1t
doubted its authority to do so and put the
matter up to the President and to Con-
cress; but neither did anything, and our
sugar was lost. The crop rs now more than
half sold, and is bringing as high AS IL
cents pound. Ii we went into the market
now we could not get much Cuban sugar,
even at that price. The failure OF the sugar
board to buy that sugar at SIX and nan,
while it had the chance was blow TO every
sugar bowl in the United States.
For very soon after the Cuban produc-
ers made that offer. sugar prices began to
soar. American manufacturers of candy,
cakes and other products that require
sugar were the ones who boosted the price
first. The sugar refiners In this country
bought very little at that time because
they believed that six and half was top
notch price and that it would come down.
They made bad guess. The manutactur-
ers, on the other hand, did no guessing at
all They had to have sugar at any price
in order to stay In business, and they
bought all they could get, with the result
that prices steadily mounted until today
they are at level that would have stag
eered the Cuban imagination five years
ago.
The present crop is estimated at about
four and half million tons by II. A.
Himely, an agent for American refiners,
who has the reputation OF guessing every
wear within one or two per cent what the
crop will be. This Is nearly half a m llion
tons more sugar than Cuba produced last
wear. Mr. Himely admits, however, that
the crop NAV be reduced by labor troubles,
which are the bane of Cuban business just
now. Except insofar as it Is interrupted by
strikes and revolutions, steady increase
In the Cuban sugar crop Is expected. |
b. high prices, which promise |
TO last for some time, Cuba will probably
produce in the next few years, 30 per cent |
more sugar than it is now producing. 1t is |
doubtful whether the capacity OF the island |
will make it possible for the increase ever |
TO 20 much beyond that.
ISLAND MADE PROSPEROUS.
The prosperity which sugar has brought |
to the island Is widespread and much in |
evidence. Everyone who raised any sugar |
cane, from President Menocal, who re- |
Gently sold one of his great sugar estates |
for nine million dollars, TO the little fellow /
operating on a few acres Of rented land, |
has made more money than he ever dream |
ed of making. This prosperity has natur- |
ally extended To the merchants, and to al /
most all other classes of business. Trade, |
especially in Injuries is very brisk. A |
of high-grade walking sticks /
down here from New York on a selling |
trip, reports that he is selling thousand
dollars worth OF goods TO merchants who |
never before took more than three hum
lred dollars worth. And the demand is for |
ornate canes, with gold, silver and amber |
heads. A local merchant bought canes for |
fifteen dollars apiece, and Immediately |
placed them on sale at thirty-fve dollars. |
s'You are q profteer," the manu-
facturer told him.
Il give them what they want" he re-