The daily times., 1922-02-02
.CUBA'S SURPLUS
/. SUGAR THREATENS
AMERICAN MARKET
If Cuba by Enactment of a
Law Will Restrict Her Crop
During 1922 This Together
With Her Big Surplus Can be
Absorbed and the Sugar
Market Return to Normal.
(By David LaWrence.)
Copyright 1922 by The Daily

(By DaVl0 LaWrence.)
Copyright 1922 by The Daily
Times.)
Washington, Feb. President
Harding is trying to work out COM
promise between the various sugar
producing interests of the United
States and Cuba whereby the price
of sugar to the consumer shall never
again go to the heights that were
reached during the war.
The President is constantly dis
cussing the problem with Secretary
Hoover, Senator Smoot and agricul-
'tural senators on the one hand and
the representatives of Cuban pro-
ducers on the other.
The big question underlying the
whole thing is whether the slight in
crease in the cost of sugar to the con-
|sumer which the producers say is
inevitable if their industry is to be
preserved will cause such dissatis-
faction as to be politically dangerous
this year.
Back of the sugar problem is the
vivid recollection of inordinate prices
after the war when the government
ceased regulation. The Administra-
tion knows that few things come
closer home than the price of sugar
and it is therefore anxious to work
out a compromise that will satisfy
the sugar producers and the farmers
and will not rouse the ire of the pub
lie as a whole.
All the various interests concern
ed-both producers and refiners are
of the opinion that whatever solution
is worked out the price of sugar
must go up slight1y-possibly four
tenths of cent pound-as it now
; is being sold at less than their cost
of production. During the war when
the government controlled the best
beet sugar industry through it's abil-
ity to fix the price, the American peo-
pie bought sugar at lower rate than
did the peoples of other countries. It
Cuban producers thought there was
a world wide shortage and when the
government at Washington declined
to purchase the Cuban crop but did
control the American domestic out
put that prices went up. 1t is realized
that as long as Cuba furnishes fifty
per cent of the sugar consumed by
the American public, some balance
must be preserved between Cuban
and American production.
American beet sugar producers
claim that the Cubans extended them
Iselves and really imagined that the
high prices of sugar would continue
indefinitely. While they were holding
100000 tons came into the United
States from forty four different coun-
tries and even though the full duty
was paid, the imported sugar found a
ready market. This, however, caused
the accumulation in Cuba of a sur
plus of about 100000 tons. It's this
!surplus carried into the present
|grinding season in Cuba which is the
monkey wrench in the whole situa-
tion. If somebody tomorrow could
wipe out that surplus and leave the
Cuban producer without any loss
} everybody would be happy and the
question of duty to be imposed in
the future wouldn't be complicated
But so long as the surplus remains,
the American producers claim they
are menaced and that unless some
other solution is found a higher duty
than that now existing is necessary to
enable the American producer tc
/ grow fifty per cent of the amount
= normally consumed. OF this fifty per-
1 cent, twenty five comes from the beet
: and twenty five from the cane in
: Louisiana and Hawaii, Porto Rice
s and the Philippines.
Il Secretary Hoover who had good
Il Continued from Page p.