THE CUBA REVIEW 



21 



"bears" to cover themselves, as by now con- 

 siderable tension between Servia and Austria 

 existed. For these reasons can sugar became 

 steadier, while a cargo of Java was also sold 

 afloat for Europe. As being the last official 

 figures available it is noteworthy that the 

 German stocks on July 1 were 790,000 tons, 

 and in Austria-Hungary on the same date 

 429,700 tons. The first day of August saw a 

 panic on the speculative beet market, heavy 

 tenders being made, partly on enemy account, 

 the result being that the value of August beet 

 fell rapidly from 8s 6d to 5s 3d per cwt., but 

 new crop was little affected. On the 4th of 

 the month, however, war having been de- 

 clared between France, Russia and Great 

 Britain against Germany, beet value were 

 fixed by the Clearing Committee and specula- 

 tion terminated. The value of sugar on the 

 spot rose many shillings, while British re- 

 finers' goods were soon unobtainable owing to 

 the Government requirements. It was also 

 discovered about this time that the stock of 

 sugar in the pul)lic warehouses was much 

 smaller than stated, and represented a]:)Out 

 six weeks' consumption. The appointment, 

 however, of a Royal Sugar Commission and 

 the fixing of the retail prices had the effect of 

 staying the panic and checking a further rise 

 in values. The Government also made ex- 

 tensive purchases of raw and refined cane 

 from Cuba, Java, Mauritius, Manila, Dem- 

 erara and the West Indies, and also of Ameri- 

 can granulated, so that although there was 

 a great scarcity of stock, more confidence in 

 the future was shown. During August it 

 was computed that the Government's pur- 

 chases reached 500,000 tons of all kinds. 



The month of September opened with the 

 report of further Government purchases of 

 raw sugar for refining and manufacturing pur- 

 poses, including 100,000 tons of Mauritius 

 crystals, one million bags of Cuban for ship- 

 ment between January, March, 1915, and 

 further business in Javas. On the spot, how- 

 ever, the scarcity of many transactions were 

 consequently limited. Fresh arrivals, with 

 the exception of a cargo of Java and a steamer 

 from Cuba were conspicuously absent, while 

 in addition, the high price of refined in the 

 United States checked further business for 

 the time being. By the middle of the month 

 the imports of raw showed signs of increasing, 

 but this again wiis nullified by the falling off 

 in the imports of refined, while the British 

 refiners were also unable to cope fully with the 

 demand. An addition to our sources of 

 supply, however, was provided by the authori- 

 zation by the Italian Government of the ex- 

 port of 25,000 tons to Great Britain, while a 

 fair quantity of white sugar from Spain was 

 also received. Again, later in September, the 

 British Government made further large pur- 

 chases of American granulated and Java 

 sugar for shipment in October, December, and 

 with these last important items buying by the 

 State was suspended. Government sugar 

 now began to arrive in considerable quanti- 

 ties, but the deliveries from stock were also 

 large and the latter was only half that of 



1913 at the same period. Steps were now 

 taken by the Netherlands' Government to 

 check exports, and the British Government 

 put a stop to the import of German sugar via 

 Holland. On September 27, the captiu-e and 

 destruction of the "Tymeric" from Java for 

 the United Kingdom was reported. 



Early in October another steamer with 

 6,000 tons of Peruvian was reported captured 

 and sunk, but the market remained quiet and 

 easy though British refined was still short of 

 the reciuirements of the trade. This un- 

 wonted position was not, however, singular to 

 this country, as owing to the depredations 

 and destructiveness of the German troops in 

 the Ijeet fields of Northern France, it was 

 necessary for that country to provide itself 

 with American granulated and to purchase a 

 cargo of Java. In the closing days of October 

 the British Government prohibited the import 

 of all sugar, having provided themselves with 

 about 900,000 tons. 



In November France was again a large pur- 

 chaser of 50,000 tons of American granulated, 

 causing a firmer tone in New York, while in 

 the United Ivingdom stocks mounted rapidly 

 without depressing the market in any way. 

 Government prices showing no further reduc- 

 tion beyond the 2s 6d per cwt. taken off in 

 October. 



In the concluding period of 1914 the market 

 retained its steadiness during the first half of 

 December, but later on a concession of 3s per 

 cwt. was made in the price of Mauritius crys- 

 tals, and this naturally depreciated the value 

 of similar sugar held independently of the 

 Government. During the month various 

 estimates of the new Cuban crop appeared, 

 all pointing to a slight increase over the pre- 

 ceding record crop. As a final item of inter- 

 est it may be mentioned that in this month it 

 was decided to start trading in specultaive 

 sugar futures in America. 



That the year 1914 would witness a rise of 

 100 per cent, in the value of sugar and that 

 Great Britain would suddenly be deprived of 

 the imports of European beet was entirely 

 unforseen. The crisis, for such it was, which 

 consequently occurred this autumn has, how- 

 ever, emphasised the insecure position which 

 the United Kingdom has long held as regards 

 her sugar supplies. Fortunately the action 

 of the Government prevented the entry of 

 wild speculation, but at the same time they 

 have themselves been compelled to pay prices 

 for sugar, which at other times would be re- 

 would be regarded as extravagant and un- 

 justifiable. A famine has, however, been 

 avoided, thanks to the world's large produc- 

 tion of cane sugar and the present highly 

 remunerative prices should give an incentive 

 to a further extension of cane planting In 

 British India and in Cuba there are vast terri- 

 tories awaiting the influx of capital, and per- 

 haps State assistance in the former country, 

 and while it is believed that European beet 

 cannot be further cheapened in its manufac- 

 ture, the same argument does not a])ply to 

 the manufacture from cane, although stern 

 competition has resulted in many economies 



