BEET SUGAR 935 



It appears that in 1909-19 10 the government collected 

 1 1 1 millions of dollars from the sugar consumers. It put about 

 50 millions into its own treasury, using that sum for meeting 

 public expenses ; and handed over about 60 millions to the vari- 

 ous sugar producers. The proportion going to the sugar producers 

 tended to grow greater during the whole of our period from 

 the close of the Civil War until 191 3. During the early years of 

 the period, the sugar duty had been mainly a revenue tax. By 

 its close, the characteristic features of a protective duty had be- 

 come dominant ; the treasury received less in revenue than the 

 favored producers secured in largess or bounty. 



The sum paid over to the sugar producers would be described 

 by some free traders as a net bonus, or tribute, to the protected 

 persons ; robbing Peter to pay Paul. By other free traders it 

 would be described as so much net loss to the country ; not a 

 source of extra gains to Paul, but merely an inducement for 

 engaging in an industry in which the producer made no improper 

 gains, while the consumer paid more than a proper price. The 

 truth would seem to be midway. Since the production of raw 

 sugar has the characteristics of an extractive or raw-product 

 industry, different producers were in different circumstances. 

 Some were just al^le to hold their own even with the higher 

 price caused by the duty ; they were at the margin, and made 

 no unusual profits. Such would seem to have been the case 

 with many of the Louisiana planters, perhaps most of them ; 

 with many beet-sugar growers ; with some planters in Hawaii 

 and Porto Rico. Others were in the fortunate position of pro- 

 ducing cheaply and yet selling at the duty-raised price ; they 

 secured unusual gains, a producer's surplus or economic rent. 

 Such was probably the case with the majority of the Hawaiian 

 planters, with some beet-sugar growers, doubtless with other 

 sugar producers also. As regards this second class, the sugar 

 duty brought not a net loss to the community, but a transfer 

 from some to others ; Peter really was robbed to pay Paul. How 

 the total charge was divided between the two, it would seem 

 quite impossible to say. 



