The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-05-03
OF SUGAR
BLAMED UPON
SHORTAGE
Analysis of Conditions Dis
closes That Surplus" is
Lowest for Years.
CONTINUED from First Page.l

NSAlA1luSA HUM GASI LdSSD
-strous rise are overlooking one out
standing fact. That is that the
quantity of sugar Immediately af-
fected by speculation is SO small
that the present soaring specula-
tive price is no necessary justifi-
.cation for the present actual price
of the bulk of actual sugar.
No World Shortage.
The Department of Commerce has
printed figures showing that the
world sugar crop of this calendar
year 1923, will be larger than the
world sugar crop Of the last calenC
there is therefore no world short
age"
The Massachusetts, Special com
mission on the necessaries of life, !"
under date Of April 15, of, this year,
has reported that "the estimated
amount of sugar available for 1921
from sources normally supplying
the United States indicates that
eur consumption this year than
last. = To that extent there is
therefore no shortage" in this
country.
The statistics of sheer standing
quantity of sugar in the world and in
this country in 1923 justify on their
surface no price advance at all.
The case begins to look different,
however, and 1t begins to justify a
certain anticipation of higher prices,
IL the quantity of sugar in this coun-
try is considered not as a standing
quantity but as q moving quantity.
II. s. Surplus Lower.
Our sugar has been moving
through each year lately with a
lower surplus at the end Of each
annual sugar period.
At the end Of the period of 1921
our surplus" -our "carry-over''-
was i 100000 tons. At the end of
the period of 1922 it was 1900, 600
tons. At the end Of the period of
1879 it viii be less than 100000
tons, il consumption continues to
rise at its recent rapid rate, accord
ing to Department Of Commerce
calculations.
This steady diminishment of
surplus" would justify q steady
speculative anticipation of an event.
ual Shortage"
The speculative market accord
ingly did in faet-throughou 1922
and on into February of this year,
1923-show a firm and very am
bilious, but quite gradual rise.
Rises ON Exchange,
In January, of 1879. the price of
raw sugar on the New York Sugar
Exchange was 1.41 cents a pound,
On February 8, 1923, it was 4.02
noufs IF % IN ho n0fad fhof this
rise took place before the publiea,
ton of the Commerce DEPARTMENTS
unfortunate recent sugar bulletin,
which made it's first appearance in
newspapers on February 10.
Helped BY Bulletin.
A rise Of approximately 3 cents
was, therefore, accomplished with
out the help of any governmental
thirteen months. Thereafter, with
in seven weeks. on the basis of the
Commerce Departments bulletin,
which was held to prophesy a
shortage" a second rise was &C.
connlished Of again approximately
2 cents.
Such are the cold historical facts
without partisanship. They prove
that gradual natural rise was on
it's way. They prove that on top
of that gradual natural rise the
sugar exchange went and erected
a sudden artificial rise on the
flimsy basis of bulletin.
Observe now, however, the follow
ing further facts:
One. The sugar refiners do not
get their sugar from the sugar ex-
change. They get it direct from
where it GEOGRAPHICALLY, Cuba.
Two, The overwhelming bulk of
the Cuban production is controlled
directly by the refiners themselves
or by bankers who live within easy
speaking distance of them on the
Atlantic Coast.
Three. The overwhelming bulk of
Cuban sugar coming into this
country was therefore originally in
the hands of responsible owners and
not of mere spectators.
Four. The costs incurred by these
owners in gaining their sugar We're
not in any way increased by the
Commerce Departments bulletin or
by the Sugar Exchanges speculative
quotations.
The true question therefore is not
ultimately either the bulletin or the
quotations. 1t is the gentlemen
whose necessities and temptations
will be discussed in succeeding dis
patches. 1t is the owners.
Copyright, 1929, by Washington Press
Service.)