THE CUBA R E V T E W 35 



SUGAR REVIEW 



Specially Written for The Cuba Review by Willett & Crav of Xew York 



Our last re-i'iew for this magazine was dated December i:!, 19 1:;. 



At that date centrifugals sugars of 96° test from Cuba were quoted at 3.?.9c. per lb. 

 duty paid and are now- 3.26c. per lb. duty paid, a decline of A',)c. per lb. Virtually all 

 business during this period has been in new crop sugar. During this time a very large 

 and the principal business has been the selling of the Porto Rico crop, which this year is 

 estimated to reach 345,000 tons. As .3432c. per lb. comes off the duty on Cuba sugar on 

 March 1, 1914, thus reducing the value of free duty sugar to the same extent, the Porto 

 Rico planters started in early to sell the production as fast as it is made. 



As refiners can use only a limited amount of free duty sugar during January and 

 February, just enough to supply the necessary demand for refined, the Porto Ricans 

 began discounting the reduction of duty and have sold nearly all the amount of produc- 

 tion thus far at prices from 3.61c. per lb. down to 3%c. and up again at the close to 

 3.23c. The amount of the crop sold thus far is estimated by us at 25,000 to 30,000 tons. 

 For further production 3.23c. is asked for January delivery. Concessions may again 

 come for February shipments if Cuba remains at a low level for new duty sugar. 



From our annual statistics for 1913 as given in our paper of January S, 1914, it is 

 shown that the consumption of sugar in the United States was 3,743,139 tons, an increase 

 of 6.819 per cent over 1912. Low prices during- the year caused much of the increase, 

 raising the per capita consumption from 81.3 lbs. in 1912 to 85.4 lbs. in 1913. 1,990,831 

 tons of Cuba sugar went into consumption. The crop of Cuba of 1912-13 was 2,428,537 

 tons. A considerable surplus not required in the United States was necessary to be sold 

 elsewhere and, in order to do this it became necessary to sell for Cuba at prices sufficiently 

 below Hamburg prices to induce shipments to the United Kingdom and elsewhere, 259,195 

 tons being taken by Europe alone. This accounts mainly for the low prices for Cuba 

 sugar as compared with the Hamburg parity. 



The Cuban reciprocity treaty is directly and mainly responsible for the increase of the 

 Cuba crops since 1904 and also for the decrease in value of sugar in the United States 

 as compared with the world's prices at Hamburg since that date. 



The duty preference given Cuba of .337c. per lb. was given for the purpose of stimu- 

 lating- the production and for marketing such production in competition with the world 

 market as fixed at Hamburg for many years preceding Cuban reciprocity in 1904. Tables 

 prepared by us show that for 6 years (1S9S to 1903 inclusive) all sugars sold in New 

 York at the same parity as Hamburg because of the amount required for the United 

 States consumption. The larger proportion came from all sugar producing countries of 

 the world, and the United States competed for its supplies with European markets. 



In 1900, for instance, 1,417,842 tons came under such competition outside of Cuban 

 imports to meet 2,219,847 tons United States consumption. However, such progress had 

 been made in world production up to 1903 that during that year prices fell in the United 

 States to .22c. per lb. below Hamburg parity. Probably this condition had much to do 

 w^ith the putting through of the reciprocity bill to help Cuba to compete with the world. 

 In 1904 the first year of reciprocity advantage to Cuba, the price in the United States' was 

 .167c. per lb. below world's price and still 645,733 tons of full duty sugar was needed for 

 consumption. 



Local and Cuba crops increased, so that in 1906 but 535,870 tons full duty sugar was 

 required and the parity was .114c. below. In 1908 for short crop reasons 684,625 tons full 

 dutv sugars were required and prices were .135c. below. In 1910 increased crops at 

 home filled requirements within 72,393 tons and the parity was .534c. below Hamburg, not 

 only absorbing the .337c. of treaty advantage, but .197c. per lb. more. In 1911 the differ- 

 ence fell to .295c. per lb. and Cuba saved a little of the concession, but in 1912 and 1913 

 Cuba crops increased so abnormally that 126,000 tons in 1912 and 317,634 tons in 1913 

 were exported to other countries Ihan the United States and the price declined to .532c. 

 per lb. in 1912 and to .473c. per lb. in 1913 or so far below world's price as to put Cuba 

 back to the price conditions of 1903 before she had the .337c. concession. The reciprocity 

 treaty has accomplished its object as far as increasing production was the object and for 

 8 vears out of the 10 Cuba has had the advantage of the treaty concession but now Cuba 



