Evening star., 1942-02-08
War Needs Help
Food, but Hurt
beverageLines
Military, Leose-Lend
And Civilian Demands
Expund ShorpIy
et,s,sl Dispatch to The Star.

in 1941 promises to continue during
the coming year under the influence
of the various exceptional factors
brought about by war conditions. it
is pointed out in a survey by the
Standard Il Poor's Corp.
The need for all types Of food
products for our enlarged military
forces will, in itself, lift demand for
this purpose to unusually high
levels. Moreover, Government buy
ing for lease-lend purposes to allied
nations will provide added impetus
to sales as the year progresses.
Finally, increased consumer in
comes, particularly among the low
er income groups, will continue to
support a high rate of civilian de-
mand for some time to come.
So far, civilian buying has become
unduly stimulated by fears of pos
sible shortages as war continues, but
there is no indication as yet that
this buying motive will be checked
in the near future. In fact, reports
from retail outlets would indicate
that this boarding movement has
been accelerated since the outbreak
of war with Japan. AS long as this
condition continues, regular con-
sumner buying will be well above
normal.
Higher Quality Sought.
In addition to the indicated in
crease in the total volume of food
bought, substantial amount of
trading up to higher quality foods
Is expected, particularly on the part
OF the low-income groups, who ap-
parently will not be hit too hard by
prospective increases in income
taxes. In view of the higher prices
for such products, the gain in dollar
sales in coming months will be
greater than that for unit sales.
Every effort to provide adequate
food supplies is being made by the
Government. Production goals for
all important food products have
been stepped up materially and. If
these goals are realized, output for
1912 will be the largest in the his
tory OF this country. While the
greatest threat to realization of this
program Is the growing shortage of
farm labor. drastic steps to be taken
by the Government If necessary to
provide adequate labor is a favorable
factor. Barring unfavorable wealth.
er conditions. there seems little
question that total food supplies for
1912 will be well above those for
l94l.
Sugar Supply Reduced.
One important food, however
which will not be available in in
creased supply this year will be
sugar. Under ordinary conditions.
sugar producing capacity in the
western Hemisphere is excessive
out the war has upset this situation
Western Hemisphere supplies will
be reduced by the cutting of of
sugar from the Philippines, which
sent 854 900 tons here last year. and
oy an tndeterminable reduction In
supplies from Hawaii, which were
903 900 tons In 194l.
Mainland United States prod,,c.
tlon cannot show any important in
crease before late next fall. when
the 1912 crop will be processed. De-
nveries from Puerto Rico can prob
ably not be stepped up more than
lV0,000 tons or so this year.
Cuban production may rise to the
equivalent Of 4.300, 900 tons this wear
but the United States cannot expect
TO receive more than l,070. 900 tons
from this source, compared with
1896 900 tons in 1941. Cuban pro-
ducers can no longer ship out of
accumulated stocks, as they did last
year. They are diverting more cane
to production of molasses for max
ing urgently-needed industrial al
cohol. And much of the Cuban
crop must be diverted for use of our
allies, who have lost their normal
sources OF supply-the Ukraine and
Java. Britain is also taking the
output Of the lesser Caribbean pro-
ducers.
In summary. Government esti-
mates place the 1912 supply of new
sugar for United States consumn-
ton at only 100000 tons. COM
pairing with 1941 deliveries of better
than 100000 tons and consumption
OF 6,700. 900 tons in 1910, an average
year. This 1912 supply figure in
cludes $4,000 tons of frozen and
other stocks. Even though nearly
2,00o,O00 additional tons may be
held by ref1ners, distributors and
consumers, it is apparent that con-
sumption cannot reach the l94I
level of around 1880 900 tons.
Beverage Sales to Be Cut,
Shortly after the Japanese at
tackled Hawaii and the Philippines.
the O. p. M. froze industrial con-
sumers' stocks Of sugar in excess of
60-day supply and provided that
purchases this year should be linn.
ited to the rate of the corresponding
month of 1910.
Provided operating processes per-
NIT q reduction in stocks to less
than the 60-day figure, manufac-
turers could use some of this supply
to maintain sales, but such action
would represent only stop-gap.
In order to reflect population
shifts since 1910, a recent new order
provides that restrictions on use
or resale by jobbers, wholesalers, or
industrial consumers will be based
on consumption in the correspond
Ing period of 1941-the quota for
February is placed at 80 per cent
OF the base. If this quota is con-
tinued, as appears probable, aggre-
gate consumption will be cut II per
cent under 1910 levels.
Meanwhile, there is little prospect
for relief in the form of substitutes.
Corn refiners were operating close
to capacity in 1941 so that import
antly increased supplies of corn
sugar are unlikely, barring q large
increase In corn refining capacity.
Honey, maple sugar and other
natural sweets would be costly and
impractical where flavor is i'm
portant. Coal tar derivatives in gen.
eral, Of which saccharin is one, are