Evening journal., 1920-08-23
IS Ct. SUGAR
MAY BE near
Housewives Stop Buying
and Big Holders are
Unloading
SPECTATORS WHO
OVERBOUGHT CAUGHT

WASHINGTON. Aug. 23ZThat the
public was impressed with the state
ments Of Herbert Hoover and Attor-
ney-General Palmer that a real sugar
SHORTAGE existed and that thc famine"
was TO grow worse as the year pro
Frsscd and that dealers and producers
mok advantage OF this situation 10
null the dnarket and create a flcti-
tlous nigh price level for sugar. is tho
View taken here Of the spectacular
rise. and fall OF sugar prices.
Along with this view, n is The gen.
eral Delef mat sltgar VIII continue to
60 down until The real price level Ia
forced through the inevitable law Of
supply and dgmand. 70 Is this law of
supply and demand brought 10 the
FORE because OF the relaxation OF the
consumer In his mad chase for sugar
That has brought about the present
sugar crises, And u Is true that those
who took advantage OF an artificial
situation ho boost prices and 10 en-
deavor 30 make a "klllng" are the
ones now suffering. so this Is the
cause for the apathy on The part ~
government officials to the plea OF the
distressed"
There was time when the Depart
ment Of Agriculture insisted there
would be no sugar famine, that there
would be In fact plenty 20 satisfy
every normal demand In this country
Those statements attracted little at
tention. but when Mr.. Hoover ap-
pc0red before a House Committee In
Vcshgating me sugar situation and
when ne declared that real shortage
existed and 10 would grow worse, the
gamble In sugar began.
Nratn aN haN
shortage did exist In the average
household. The big candy manufac-
turers and the soft drink makers and
the spectators had entered the mar
ket and were buying and boarding all
The sugar they could get heir hands
on. The Average cOnsumer was deal
ing with his grocer, The. grocer was
competins with the drive of the big
manufacturers and the boosting OF
prices continued.
TIE prices went up and up, sugar
producers in other countries were IN
duced 20 send their wares 10 the
American market the natural supply
increased until suddenly the big man
ufachirerS with their large stocks be
han to realize there would be no sugar
famine and Immediately they let 20.
They have been letting 20 as rapidly
as possible, strenuous competition has
resulted among them In the mad cf-
fort IN get out nrOm under and the
declning price has resulted. The
panic is not over. Where the retail
price for sugar viii stop eventually
no one will predict. That Il will 90
down even below the real price level
and ultimately rebound is the opinion
reflected herr. This may mean even
70 or i3 cent sugar for a time and
eventually not higher than IS cent
sugar.
For ne year ending June %. 1920.
there was ~ per cent. more sugar
stocks in this country than for the
average OF the last three years, the
Department OF Agriculture shows.
And the three-year average with which
the comparison Is made. was the lau9-
est three-year average in history.
This represents the actual amount
available for consumption as it in
eiudes all the sugar shipped In for re-
fining and then rfshipped 70 Europe.
These figures OF supply are as fol-
lows. Domestic. i.6g. 10000 pounds
Hawaii, i056,O0OO00 pounds; Cuba and
other foreign. 1.5S1000O00 pounds
Porto Rico s3SO0O,00O pounds a totai
OF ii.i7S,oO0O00 pounds. or this
amount, i,i4iOO0OO0 pounds were re
exported. This left a total supply for
the united states Of 9,73iO0OO00
pounds.
The average annual stock based on
the last three years average was only
a42S.OO0O0O pounds, so that a surplus
OF more than one billion pounds was
had over the average consumption in
this country.
II the stock had been distributed
freely and without any attempt at
speculation. there would have been a
supply OF i03 pounds for every man,
woman and child in the country
such a consumption has never been
reached and. even with an increased
demand brought on by prohibition
and the demand for candies and
sweets no one expects 10 10 be reach
"a in many years 70 come And added
to that. the demand - a certain extent
has been decreased by the decreased
consumption which came with the
hirh price and by the ability Of the
housewife 10 substitute syrups where
sucar formerly was used
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