Grinding 

 the sugar 

 cane 



Review of the During the spring of 1920, there continued to be a shortage 

 Sugar Market of sugar and it was not until August that a real open market 

 was established. The idea of shortage prevailed throughout the 

 world, and domestic and foreign consumers competed with each other in se- 

 curing their necessary supplies. Another factor in the situation was the 

 successive reductions in the early estimates of the Cuban crop. Prices rose 

 rapidly and in May the high level of 23.57 cents per pound was reached. There 

 was no government control of the industry, but the Department of Justice 

 instituted numerous suits under the anti-profiteering provisions of the Lever 

 Act to prevent profiteering, hoarding and speculation, which was rampant 

 at this particular time. It should be remembered, however, that speculation 

 in this period was not confined to the sugar market. The abnormally high 

 prices prevailing attracted foreign supplies from more than 50 countries and 

 sugar was even imported from the interior of China. It became apparent 

 during the second half of the year that the abnormally high prices could not 

 be maintained and many speculators began to make realization sales. Mean- 

 while, the country was entering into the first stages of the recent business 

 depression. Sugar prices began to fall and the decline continued for several 

 months until by October 1st, the price of 96 centrifugal raw sugar with 

 duty paid had reached 9 cents per pound. The sudden and drastic decline 

 in sugar prices produced a crisis in Cuba and on October llth, it became 



27 



