10 THE SUGAR INDUSTRY. 



industry by a liberal system of direct subsidies, high protection and export bounties, 

 until the European beet-sugar industry has practically ruined the cane-sugar industry 

 of the tropics and monopolized the sugar market of the world. To complete the 

 destruction of the American sugar industry, or at least to prevent the further devel- 

 opment of the beet-sugar business in this country, Germany has recently increased 

 its export bounty. And France is about to follow suit, thus enabling their sugar to be 

 sold in the United States below the cost of production in this country. The United 

 States is supporting the sugar industry of Europe at the expense of the American 

 farmer. 



WHAT IS NEEDED 



is a reasonable specific duty on all imported sugar, with an additional discriminating 

 duty from countries paying an export bounty, equal to that bounty. Then with such 

 aid as the various states and localities interested may offer to secure sugar factories, 

 the beet-sugar industry could be put on its feet in this country, within a very few 

 years. 



It would afford farmers the new and profitable crop that they must have. 

 It would also offer a new market for labor and an immense business to machine build- 

 ers, railroads and others, and a fair return on the capital invested in the business, 

 and it would distribute among these people the 100 million dollars that are now 

 paid annually for imported sugar a billion dollars during the past ten years! Amer- 

 icans being the greatest users of sugar in the world, its consumption here has doubled 

 in 15 years and is likely to increase in the same ratio in future. Thus by 1910, if the 

 domestic industry supplies the home market as it should, it will be putting into the 

 pockets of our people 200 million dollars a year that otherwise would be sent out of 

 the country. 



We want to divert capital from further investment in refineries on the Atlantic 

 const to refine imported raw sugar, and induce capital to invest in the hundreds of 

 new factories that will be required to work up the amount of beets and cane neces- 

 sary to supply the home market with sugar. To build and equip these factories, 

 and to supply the paraphernalia incident to this vast industry, means an investment 

 of $300, 000, 000 or so. 



AMOUNT OF PROTECTION NEEDED. 



Opinions differ as to the precise figure, but all are agreed upon the points made in 

 the preceding paragraph. Also that the new tariff should go into effect promptly, so 

 capital and agriculture may know what to bank on. and that no reciprocity to the 

 detriment of sugar should be enacted. The tariff of 1883 imposed a duty of about 2c 

 per Ib on raw sugar, which yielded a revenue of $54,000,000. Some such rate, with a 

 fraction of a cent per Ib bounty on domestic sugar (to be gradually reduced) to 

 directly encourage it and to protect it against unscrupulous competition by the sugar 

 trust, would doubtless be sufficient. 



It will be seen from the table below (Table D) that the proposed duty in the 

 United States of about 2c per Ib on the best grades of imported raw sugar is only one- 

 third to one-half as much as the present duties on sugar imposed by European coun- 

 tries. It is this high protection, coupled with direct subsidies and export bounties, 

 which has brought about the immense development of the beet-sugar industry on 



