The Birmingham age-herald., 1920-01-26
POINT ID
 EARLY RELIEF FROM SUGAR SHORTAGE
Sugar Supply in Sight Will Bring Back Normal Con- ditiOns and Reduction
 in Price, Is Stated


 Sugar is still scarce-and high-but there are signs ahead of relief from the shortage and probable decrease in prices during March and April
 Birmingham wholesale grocers, asked to explain the conditions governing the sugar market. replied yesterday that they had been informed that quantities of raw sugar held up in Cuba by longshoreman's strikes and other troubles had been re- leased, and that Louisiana refineries. upon which Alabama depends for it's main supply, expected soon to approxi- mate normal production.
 Regarding the price of sugar. they quoted the governments recent decfara- tion that it is possible that when the flow of raw sugars from the large crops Of Cuba and Porto Rico reaches it's peak in March and April, prices may be somewhat reduced"
 Amercas principal sources of sugar supply are the Western beet sugar crop,
 
 tions of Cuba. Porto Rico and Hawaii. While beet sugar is cheaper in the West than cane sugar is in the South, it is explained it could not usually be sold more cheaply in the South, because of the long freight haul Under normal compete with Cuban or Louisiana sugar here.
 When the zoning restrictions were im- posed by the Sugar Equalization board it was provided that each section of the country should obtain it's sugar supply from the nearest available market. The south was to be provided with it's sugar by the Louisiana refineries, handling Cuban and Louisiana crops. Weather conditions were bad in the cane growing section of Louisiana last year, and the crop was not normal. Moreover. there were longshoremen's strikes in Cuba end in New Orleans which greatly retarded the receipt of raw sugar. Hence the famine which prevailed in Alabama during October and November.
 SUPPLY FOR CHRISTMAS
 New York refineries were prohibited from shipping their product out of the east, and western beet sugar refineries were required to meet the needs of the west only. It Vas then that the Alabama food administrator. Richard M Hobbie, went to New York and requested the Sugar Equalization board to permit the shipment of western beet sugar to Ala bama so that this state would have supply for Christmas. This requess was complied with, and the situation was temporarily relieved Since that time, sundry shipments of cane sugar have been received from Louisiana, sold at a. price agreed upon by the Louisiana refiners and the Department of JustitS, This price is somewhat higher than thai fixed for western beet sugar, the govern ment making concessionsb because of un- favorable crop conditions in Louisiana. Tt is not generally appreciated by the public that grocers throughout the war sold sugar practically at no profit at all, and that the same condition prevails now" said Victor S. Gage, vice president of the Tyler Grocery Company. Whole sale dealers were restricted to a profit of one-half a cent pound or about 31a per cent of the cost. As 8 matter of fact, according to statistics of the Harvard Bureau of Business Research a jobber operates his business at a cost of 9.4 per cent. approximately, so that it may readily be seen that if he were handling sugar alone he would be selling at loss of more than 61a per cent
 ."rhe same thing applies to the retailer, whose profit was limited to 1R cents a pound.''
 The tremendous consumption of sugar during 1919 was an important factor in the sugar situation.
 SUGAR PER CAPITA The year after the Civil war, according to authentic government statistics, the npnnla n Ifnifad only IS pounds of sugar per capita. In 1919 the per capita consumption was g pounds. For the Tears -914 to 1918 the consumption per person had been about 'S5 pounds, and this was regarded by the government normal. Thus the average American ate seven more pounds of sugar in 1919 than he had been accustomed to eating. The nation consumed 300000 tons of sugar more than had ever been used il any year in history.
 Despite the unnecessarily large basis of consumption, it is believed that the 1920 supply will be able to meet the demand, Of 4,500.000 tons of sugar consumed at this rate annually, the United States pro- duces normally 100000 tons The Cuban crop being marketed now is unusually large--abont iS00, 600 tons. The crops for Louisiana, the West Indies, Porto Rico and Hawaii vii be about 100000 tons. The foreign demand will not be tre- mendous factor, as it is estimated that the allies will take only about i,250 600 tens of the Cuban crop owing. to the fact that their aggregate purchasing power is limited.
 Conditions in the American sugar mar ket are not stabilized as yet. The Me Nary law, which has been signed by the President, provides for continuation of sugar control, but President Wilson an- nouneed in signing it that he would not this time invoke the power granted in the law, his intention being to permit the law of supply and demand take it's course.
 Louisiana Banks Show
 Big Increased Resources New Orleans, January 25-The conn