The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-03-11
rHE SUGAR pANIC OF 1870.

THE SUGAR PANIC OF 1920.
The cratic course of the sugar
market last year, which the public
found itself unable to understand, ex-
cept on the theory that somebody was
profiteering, is explained in the an
aLreport for the year 1920, submit
ted by Earl d. Babst. president of the
American Sugar Refining company.
The report shows an increase in VOL
ume of business done of $50, 1000, 900
over 1919, but the total of over $780,
0o5,e90 represents the smallest ton
mage handled in the history of the
company. the high prices alone ac-
counting for the increase in gross re-
ceipts. The operating profit of ST.
500. 900 was SS,480,O00 less than 1919,
and was about one-half cent on each
dollar of sales or a profit less than
one mill a pound. The operating
profit, says the report, continues to be
one of the narrowest in the manufac-
turing field, and for 1920 is described
as wholly inadequate. Ten million,
one ninety-five thousand dollars was
transferred from surplus to reserves.
in 1920 represented III pounds for
each person.
Sugar poured into the United States
from nearly fifty countries, including
Japan, China, India. Belgium, Czecho-
Slovakia, Panama, Java, Hong kong,
Denmark. France, Holland, Sweden.
Canada. Costa Rica, Guatemala, Hon
| n CoIx
East Africa, Kwantung, Egypt, Straits
Settlements, and even from countries
where rationing was effective. High
prices acted as a magnet.
On July 1, 1920, the price in the
United States was the highest in the
world, and on December 81, 1920, it
| was practically the lowest in the
| world. Prices during the year ranged
| from AS to 241z cents for raw sugar
and from 71z to 27a cents for re-
fined sugar, a difference of about 20
cents a pound. The fluctuations were
| twice as great as any in the past hun
/ bred years, adds the report.
! According to the United States Gus
| toms department the invoice value of
| sugar receipts was $1,294,632,S66 in
1920 compared to $522,259,53S IN
1919. The total cost to the American
people of all sugar consumed in 1920
probably exceeded a billion and a half
dollars at wholesale prices.
| The sum paid by the people of the
United States in 1920 is said to
| amount to many unnecessary hun
fdred millions of dollars in the at
tempted de-control BY our government
of world staple, for two years held
! below its worlds parity, without the
| caution Of accommodating stocks or OF
taking any other preparatory measure
for the transition"
| Ths year 1920 will go down in his
tory as the year of attempted govern
| ment de-control, says the report. In
April, a demand for sugar arose, re-
CARELESS of price, beyond possibility
of apparent supply from ordinary
/ sources. The American people were
eager to outbid the world for sugar.
The demand, according to the report,
was stimulated by flood of reports,
legislation, prophesies and strikes
| The public it is explained, "de-
manded sugar in any form, at any
price, in any quantity, and for any
delivery"
The report places the blame for the
sugar panic where, probably, 1t prop
erly belongs, on the governments in
reference in the business. Uncle
Sam put the public in a hole and then
| left it to get out the best it could.