Evening star., 1923-07-24
SUGAR TRADE Slow;
PLENTY IN STORAGE
Refiners Alarmed as Dealers
and Housewives Keep Up.
Conservative Buying.
BY j. C. ROYLE.
Special Dispa tch TO The. Star.

Special Dispatch to The Star.
NEW YORK, July 24.-EXpert scor-
ers In the sugar trade have come to
the. conclusion that the tariff cannot
be given an error ON the advance in
the price of that commodity this year
or on Its present condition. They
put it down. instead. as a. woeful
misjuA4ment on the part of the re-
finers - to the consumption OF the
country. But none of them gives the
Injunction action by the federal gov
.ernment so much as an assist.
Refiners'. warehouses today are full
OF refined sugar. But the trade is
not buying and, neither is the con-
sumer." The answer, sugar men say
Is that re6nerS far overeStlmated the
amount this country would consume
1923. For the last five years there
has been an increase in sugar con-
sumption in the United States. IN
1892 this became phenomenal. rlslns
TO an average of more than 100 POUNDS
per capita.
Rate of Consumption.
While consumption so far this year
has been ahead of the five-year aver
age, ii has dropped materially below
the rate of increases for last year.
1t is believed by many in the trade
1923 may fall to less than eighty-hve
pounds. Willett & Cray today eSu-
mate the consumption for the hrst
six months of the year at 1,6O5:o9l
tons, and requirements for the last
six months at 100000 tons, or an
average of about eighty-one pounds
for each inhabitant.
Refners, according to market eN-
perts, counting ON heavy consump-
ton, and alarmed at indications OF
oh nf- ha rushed
into the market early in the year and
bought raw sugar at high prices.
Right here is where the hard headed
Dutch growers Of Java and Sumatra
come in. Sensing the signals more
clearly than their American oppo-
nents, they sold sugar futures at high
prices, against which they now are
delivering East Indian grown raw
sugar.
Heavy Arrivals Reported.
Shiploads of this product are being
unloaded at Philadelphia. The Amer
lean refinerS, IL is reported, then be-
came alarmed and sold futures. hedg-
ing on their heavy earlier purchases.
But the Cuban growers, having. dis
posed of part of their crop at high
figures, are adequately financed and
now are able to hold the remainder
OF their raw sugar for high levels.
In addition, the estimates OF the
Louisiana crop have fallen off
slightly.
AS a result Of all these factors, the
ref1ners now find themselves with
heavy supplies of fairly high cost
sugar which the trade is buying on a
hand-to-mouth basis in the hope OF
lower prices.
Encouragement has been given this
hope by the maneuvers of one COM
pany as 1.-The bad boy of the sugar
trade" in making occasional reduc-
tions. Competitors assert that these
a A
face value, as care is taken to limit
the amount sold to each buyer to less
than his requirements and to serve
buyers in as widely separated. fields
as possible.
Beet Sugar Awaited.
Then, also, the trade is waiting for
the beat sugar yield of the western
states and the product of the Louis
lana cane fields 20 come on the mar
ket.
However, it is the housewife who is
the dominating factor in the lull in
buying. according to experts. Her at
titude IL not basically due TO the price
of sugar, according to Robert S. Wins
more of Lamborn, Hutchings q Co.,
sugar traders.
Consumption undoubtedly has fallen
off," said Mr.. Winsmore.. but ] do not
is the main cause. Only 40 per cent
Of the sugar consumed goes Into the
American household in the form OF
granuIated or powdered sugar. The
remainder is consumed in the form of
cake. candy, sirups. soft drinks and
other manufactured products.
IAN increase of 3 cents a pound
would mean an addition of less than
IL cents a week for each household.
In view of the present prosperity, l do
not believe IL cents a week would
either induce an American housewife
to buy sugar or to refrain from buying
1t. But, whatever the cause, she is
buying less"