The Bridgeport times and evening farmer., 1920-01-28
SUGAR SHORTAGE BROUGHT ON BY PARTISAN STRIFE Equalization Board Was Handicapped By
 Congress. PART OF CUBAN
 CROP MAY YET
 BE SECURED Prices Would Be Sent Up Because of Competitive
 Buying.


 present high sugar prices are one of the fruits of the partisan strife stirred up here early last year when the Re publicans took control of the special session of Congress.
 Along in August, after the parti- sans had shouted all summer about the overexercise of government con- tro1, the question of continuing the Sugar Equalization Board another year and buying the Cuban sugar crop came up. At that time there was at least one member of the Board itself who thought it was time for the Government to get out of the market, and the sentiment among the majority in Congress seemed to urge such a course. One school of economists holding this theory argued that the peace treaty would be signed and all the sations would be released rom their war alliance and ready to go into the market on a supply and demand basis.
 Then came October with world markets still unsettled and when the Sugar Board appeared before Con- gress it urged that it's existence be continued until December S1st, 1920, and that it be authorized to purchase the coming Cuban crop. But Congress still seemed to favor getting out of the market and there was no action. In December the Attorney General, who had taken over the food situa- ton, announced that the Board, lacking Congressional continuance, would cease to function after Decem- Der 31st.
 This meant that the relentless law of supply and demand would have to be allowed to enter an unready field again after that date. In other words with an actual existing sugar short age, the bars were to be thrown down. There would be no market control There would be no wholesale distri- outing scheme and every corner of the world was to get what 1t would pay for. Realizing what their fail are to act was bringing on, Congress at the last minute got busy and on December goth the Sugar Equalization months.
 By this time, however, the Central Cuban agency had gone out fo exist ance and control of the market could not be secured through one agency as befo1e e. but She market must be chased down wherever Cuban purchases were possible. Meanwhile the allied na- tions who controlled the Cuban mark ct last year had unbound themselves from their alliance and were already in the field as our competitors. Be sides in renewing the life of the Board Congress had failed to pro- vide it anew with it's former powers of equalization and distribution. In face of the new situation the | Board has been forced to act in the [ l. .I.T will continue to make available pur- chases and the licensing operations l But to go into the Cuban field at this time would mean that it would l become a bun in the market, driving | prices up against itself and against | all purchasers. In other words, Con- l gresS acted so late that it is now inn i possible for the government agencies 1 to secure control of the Cuban SUD- ply by purchasing operations without | "sky-rocketing" prices. And since ! it is going out of buainess in July il | would not be economical to purchase | the entire crop.
 | Uncle Sam will undoubtedly secure the bulk of the Cuban crop 'by de. fault, because most of the other in. ternationa1 bidders will be limited tc their purchases. It is estimated tha
  900 tons available. The nations O. 1 Europe are limited as to purcT1asins power and only a part of their pur chases can be sugar. It is estimated I that the United States will get con si6prajb1y more than half the Cuban supply.
 Had we bought a. control or tn
 entire crop in October or Novembe prices would have been somewha
 stabIiized by this time. As it is, how
 eyer, January prices are considerabl
 above normal. February quotation . are slightly lower and March price show further receding with the fore
 cast that the sugar furry may en
 with the coming of Spring, an Q re
 turn all over the world to more near ly normal conditions. Meanwhile , with a greater consumption in thi l country than ever before, with a
 normal conditions generally, an6 it the necessity for higher quots ons secure preferred sugar stoc-.s fror ! other fields than the Cuban and wit
 some isolated hoarding and profiteel l ing still going on, the law of suppl | and demand is gradually worIxin back into its own.