32 THECUBAREVIEW 



increase of 250%. This great increase in quintative money would in itself advance the price 

 of the products of the world approximxting today's level, wholly independent of the war and 

 without regard to the great scarcity in supplies. Shall we fill this need with all its benefits, or 

 deny it with all its deprivations? 



Tae question, therefore, is again presented — -what shall be done to sustain and to stimulate 

 the production of sugar? As far as we know, Cuba alone of all the exporting countries, is 

 capable of largely increasing her output. The Island's present production cannot lie maintained 

 nor could it be considered — 'On the basis of 4.60c. There are hosts of farmers asking for figures 

 that the Cuban Government in keeping with its purpose would not entertain; there are many 

 others who insist upon 6 cents as the minimum, to all of which the Government suggests some 

 modification. 



In reviewmg the figures which we have herein set out and the present state of labor and 

 cost of material — ^in our deliberate and concurring judgments, we offer as our conclusion the 

 price which we feel will meet the requirements of the owners and operators of plantation sugar 

 houses and estates — 'that of 5.60c. f. o. b. North Ports of Cuba and 5.55c. f. o. b. South Ports. 

 The figures are based on the prices current for material and labor employed in our recent cam- 

 paign, while every assurance is offered that both will be higher and in the instance of labor, 

 much higher in the coming year. While sugar, the cheapest product in general use today is 

 being discussed, it ought to be stated, and publicly understood, that its advance to the con- 

 sumer is only a moiety of the advances that are witnessed in a hundred articles, most of which 

 'ugar producers are obliged to buy as they constitute their daily life; flour, corn, meats of all 

 kinds ; cotton products, containers and fuel, while staple necessities, are only a few elementary 

 articles of the vast store that enter into the production of sugar. 



With the foregoing brief r6sum6 of the cardinal points of this business, we submit to you 

 what should be done to sustain and promote it. 



Respectfully, 



CARLOS MANUEL DE CESPEDES, Chairman. 

 R. B. HAWLEY. 

 MANUEL RIONDA. 

 New York, July 26, 1918. 



Allotments of raw sugar by the International Committee for August shipment are showing 

 a considerable falling off, being to the present time only about 65,000 tons of sugar, which, under 

 normal conditions, would be only about a week's meltings. 



The Refined sugar market is dull with quotations unchanged on the basis of 7.50c. less 2% 

 for_Fine Granulated. The certificates are coming in very slowly and the refiners can ship all 

 orders promptly. The question of an increase in the differential between raw and refined sugar 

 which would give the refiners a larger margin of profit is in the hands of a mediator, Mr. Strauss, 

 formerly of the Public Service Commission, who has been holding conferences in this connec- 

 tion. Some parties are looking for a small temporary increase, while the matter of a perma- 

 nent figure is pending. 



Since we last wrote you we have issued our estimate of the Domestic Beet Crop at 655,000 

 tons, which is less than last campaign and much below the high record made in 1915-16 of 779,- 

 756 tons, the decrease being attributed to the unfavorable late Spring, and also to the fact that 

 farmers have been able to secure much better prices for other crops than for beets. 



Based on the statistics of the International Sugar Committee we have calculated the con- 

 sumption of the United States for the first 6 months as 1,977,566 tons, against our own figure of 

 2,365,542 tons for same period last year. The quarterly statistics of the International Com- 

 mittee for April, May, June, 1918, show a per capita consumption of 25 pounds, as against 20 

 pounds for the quarter January, February and March, or a total of 45 pounds for the six 

 months. It is very probable in our minds that a good percentage of this 25 pounds has been 

 tucked away by the thrify housewives, and as there wUl be drawing on this invisible supply dur- 

 ing the next quarter the per capita for July, August and September will probably show a con- 

 siderable reduction. 



We received on July 16th, our cable from the Philippine Islands giving exports during 

 June to the United States of only 700 tons with 11,500 tons to other countries. 



Our domestic cane crop in Louisiana continues to pressnt an encouraging appearance 

 although complaints of persistent dry weather are heard. The new crop is estimated at 

 246,000 tons, against 21^,499 tons for 1917-18. 



WILLETT & GRAY. 



New York, N. Y., August 6, 1918. 



