Stability Few industries have such a constantly expanding and 



of Sugar stable demand for their product from the consuming public. 



Demand ^ e d eman d f or sugar expands with the growth of population 



and rising standards of living. The physical volume of sugar consumed is 

 apparently little influenced by the ups and downs of the business cycle. 

 Even in periods of abnormally high prices, we continue to buy sugar for our 

 imperative requirements, and our total consumption either remains station- 

 ary or declines only a little under such conditions. When prices are lower, 

 increased quantities are consumed. The sugar industry, unlike many other 

 industries, has a fundamental advantage in the growth, stability and recurrent 

 nature of the demand for its products. 



TT . t . Between two-thirds and three-fourths of our annual sugar 



Household 



and Non- consumption is for direct household use. In recent years, 

 Household the non-household use of sugar has also become important. 



T Tstf* 



In 1917, it was estimated that manufacturing use of sugar 

 represented 966,000 tons, of which 350,000 tons were for confectionery, 

 135,000 tons for soft drinks, 100,000 tons for condensed milk, and 64,000 tons 

 for ice cream. Since 1917, however, with the advent of prohibition, there 

 has been a notable expansion in non-household use. For the present year, 

 it is said that 130,000 tons of sugar will be used in the manufacture of ice 

 cream alone, while soft drinks, confectionery, and bakery products will also 

 show a substantially increased consumption of sugar. One needs only to 

 consider the increased sale of confectionery, soft drinks and ice cream in recent 

 years to realize the present and potential importance of this demand to the 

 sugar industry. 



Investment The broad basic character of the sugar industry has caused 



in Sugar investors to place millions of capital in the production and re- 



Industry fining of sugar. This is true not only for those areas in which 

 the United States is particularly interested, but also for other great producing 

 regions. It is said that more than $1,000,000,000 has been invested by Amer- 

 icans in the sugar industry of Cuba alone, while the beet sugar industry of 

 the United States represents an investment of perhaps $173,000,000, and our 

 cane industry $33,000,000. The cane sugar industry of Porto Rico repre- 

 sents an investment of nearly $60,000,000; Hawaii $209,000,000; and the 

 Philippines, $71,000,000. Only an industry of proven financial merit could 

 have recruited such tremendous sums for its exploitation and development. 



6 



