The daily star-mirror. (Moscow, Idaho) 1911-1939, 1920-01-31
HIGH PRICED SUGAR
LAID TO CONGRESS
''WATCHFUL WAITING" PERMIT
TED OTHERS TO CORRALL
CUBAN SUGAR CROP
WASHINGTO.

WASHINGTON, D. C-The 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-
troll, 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 tho government to get out of the
market, and the sentiment among
among the majority in Congress
seemed to urge such course. One
school of economists holding this
theory urged that the peace treaty
would be signed and all the nations
would be released from their war al
liances and ready to go into the mar
ket 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 its existence be
continued until December 31st, 1920,
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, lack
ing congressional continuance, would
cease to function after December 81.
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 donw.
There would be no market control.
There would be no wholesale dis
tributing scheme and every corner of
the world was to get what it would
pay for. Realizing what their failure
to act was bringing on, congress at
the last minute got busy and on De-
cember Goth the sugar equalization
board was continued for another six
By this time, however, the Central
Cuban agency had gone out of ex-
istence and control of the market
could not be secured through one
agency as before, but the market
must be chased down wherever Cuban
purchases were possible. Meanwhile
the allied nations who controlled the
Cuban market last year had un-
pound themselves from their alliance
and were already in the field as
Besides in renewing
The life of the Board Congress had
failed to provide it anew with its
former powers of equalization and
In face of the new situation the
board had been forced to act in the
most servicable capacity possible
and will continue to make available |
purchases and the licensing opera
ions. But to go into the Cuban field |
1T this time would mean that it |
would become bull in the market,
irving prices up against itself and
against all other purchasers. In other
words, congress acted SO late that it /
S now impossible for the government |
agencies to secure control of the
Cuban supply by purchasing opera
ions without "sky rocketing" prices.
And since it is going out of business
n July it would be uneconomical to
the entire crop.
Uncle Sam will undoubtedly secure
he bulk of the Cuban crop ''by de-
aulC, because mOSC OF Ine OCHeT III
erna tional bidders will be limited
o their purchases. 1t is estimated
hat there will be approximately
100000 tons available. The nations
f Europe are limited as to purchas
ng power and only part of their
purchases can be sugar. 1t is esti-
mated that the United States will
et considerably more than half the
,uban supply.