Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-07
CHANGES IN SUGAR |
TARIFF ARE URGED.
Industrial Expert Believes
New Schedules Would Pro.
mote Trade Stability.
Special Dispatch TO Tn. Star.


NEW YORK. July 6.-Regulation of
Cuba's sugar production, continued ex-
pansion OF world sugar consumption
and closer cooperation on the part
Of producers to the end of obtaining
more orderly marketing for raws, are
immediate hopes for relieving depres-
sion in the industry, according to An
drew Blair, sugar expert with Lamborn
81 Co.
REIMBURSEMENT of the tariff on sugar.
now being contemplated by Congress,
should pave the way to an immediate
improvement and supply the basis on
which reorganization of the industry
may be commenced, in Mr.. Blairs
opinion.
See Pool Selling.
Leading authorities on the sugar sit
uation in New York importing and
export houses indicated their belief
that Cuba is contemplating restrictive
measures and pool selling. The state
ment of the Cuban President, Senior
Machado, given last week. was that
free production and sales had been dis
astrous, occasioning price reactions in
the United States which recently
brought raws to a new all-time low
In the collapse Of sugar prices which
followed the World War. Cubas restric-
tive measures resisted the calamituos'
drop In values for a long period. When
the restrictions were finally lifted, how
ever. the bottom dropped out Of prices
completely.
The net result is that Cuban sugars
are being sold currently at level
actually below production costs. This,
In turn, has so injured the purchasing
power Of Cuban planters and allied in
terestS that exports of manufactured
goods and raw materials from the
United States to Cuba have not been
In the large volume which would have
been the case otherwise.
Cubas outstanding importance as a
producing country is illustrated by the
final figures on its last crop of 5,l59,000
tons, a record one.
Meanwhile, the Continental United
States-greatest sugar-consuming mar
ket in the worlds taking refined at
rate of approximately 5000, 900 tons
annually.
OF the total American consumption,
approximately one-Sixth is supplied by
domestic producers-the beet sugar
growers.
Tariff Proposals.
Here enter the tariff proposals.!
Upward reviSions in import duties on
sugar. as proposed In Congress, are de-
signed to make American beet sugar
growers prosperous. The tariff increase
already passed by the House is for an
impost Of 3 cents q pound on foreign
sugars. This. observers estimate, Is
likely to be revised with the probability
of duty Of cents pound or lower
on these large importations from for
eign countries.
Another tariff proposal is for a sliding
scale OF duties. to be raised as sugar
prices recede and to be lowered as the
value of actual sugar increases. This
proposal is primarily price -stabilizing
suggestion and in a sense is predicated
on the old economic law that high
prices encourage production and low
prices discourage production.
In any case, Cuba would receive the
granted her under former legislation.
The effect Of the higher tariff, there
fore. would be two-fold:
First, consumers would be obliged 10
pay to 2 cents o pound more for
their requirements.
Second, American beet sugar grow
ers would profit to the extent Of the
increased sugar tariff.
Result Is Doubtful.
II is considered most unlikely that
Cuban growers would benefit in any
way. In fact. Cuban interests are
pretty we'll solidified in resisting the.
proposed sugar tariff increases on two
main grounds. The first Of these Is
that 1t would encourage expansion of
the American beet-growing industry at
the expense of cane production. End,
second. that O further reduction of
price in Cuban exports might be neces-
STATED in meeting competition with
in
States market.
It Is for these reasons that Cuban
the solution to their problems lies In
political and industrial leaders feel that
cooperative organization for greater
efficiency and to prevent forced sale of
sugars through inadequately financed
and disorganized groups of producers.
Sugar importers and others vitality in
terested summarize the probable effect
Of tariff increases on the commodity as
follows:
/. Each cent a pound increase In i'm
port duties means $120, 900 900 added to
the annual consumers sugar bill in the
United States. A 1-cent increase would
be 81 year more for each man, woman
and child; q 2-cent increase, 81 an
nually, and so on.
2. II q 1-cent increase In sugar duties
was imposed. American sugar growers
WOulQ DSncHC 10 Tie cAIcIlG OL aOOuC
$40, 900 900 annually and the Federal
Treasury 100000, 600; If a 2-cent in
crease, $40 1000, 900 for the American
beet growers and 5000, 000, 900 for the
Treasury, Snd so on.
8. Cuba's possibility of benefit would
be confined to the 20 per cent preferen-
tial she receives compared with other
countries. At the same time, the Cuban
sugar industry would be exposed to loss
In volume of exports to the United
States through encouragement of Amer
lean beet sugar growers to produce in
creased amounts in their protected
market.
4. The heavy bonus entailed in pro-
posed tariff increases for domestic pro-
ducers might seriously decrease the
buying of American-made goods and
raw materials in countries from which
the United States ut present imports
large quantities Of sugar.