30 THECUBAREVIEW 



SUGAR REVIEW 



Specially Written for The Cuba Review by Willett & Gray, of New York 



Our last Sugar Review for the magazine was dated August 13, 1914. 



At that time Centrifugal Sugar 960 test was quoted at 6.50c. per lb. duty paid, having been 

 advanced from 3.26c July 29th to 6.52c August 13th, an advance of 3.26c per lb., or one hun- 

 dred per cent, in 15 days as recorded in our last review. We wTote then, that our estimates 

 of supplies and requirements for the U. S. consumption were such that there was small reason 

 for any further extraordinary rise in values, which some people were confidently looking for. 



As matter of fact the 15 days advance covered the entire rise to the present time. From 

 August 13th to August 18th the quotation remained at 6.52c per lb., and declined to 6.27c 

 per lb. August 19th, and to 6c per lb. on the 20th, and to 5.77c on the 25th, at which point the 

 market steadied and on the 27th advanced to 6.02c per lb. September 1st the quotation was 

 6.01c per lb., changing on the 4th to 6.02c, and on the 8th to 6.27c per lb., and to 6.25c. per lb. 

 on the 14th. At this wTiting without transactions there are sellers of 960 Centrifugals at 

 5c. per lb. cost and freight, and 6.02c. per lb. duty paid. 



It is of interest to review the cause and effect of the rise of 3c per lb. in 15 days, and the 

 continuance of this rise, especially as to refined sugar from August 13th to September 15th, 

 and it's quite probable continuance at or near 3c per lb. over price of July 29th to the domestic 

 beet crop commencing in October and perhaps to the next Cuba crop in January. 



Last year from August 1st to December 30th, the United States consumption was 1,513,000 

 tons (2,240 lbs.), which at 3c per lb. is the enormous rise of $101,850,000, which the con- 

 sumers of the United States must pay for sugar above what they would have paid except for 

 the war. If not paid, then many families must reduce largely or go without entirely one of the 

 most important necessities of living in these days. 



On July 29th there was absolutely no foundation for expecting a rise in sugar values in the 

 United States to exceed one quarter cents to one half cents per lb. for the remainder of the 

 year, but the outbreak of war found Great Britain entirely cut off from its usual sugar supplies 

 from Germany and other beet sugar producing countries. With immediate foresight. Great 

 Britain looked elsewhere for supplies, and realizing that Cuba and the United States sugar 

 values were and had been for months under the values of cane sugars from any part of the 

 world, she became an immediate and persistent purchaser from Cuba and the United States 

 at rising bids, vmtil within 15 days she advanced these markets to the parity of those from 

 which she could buy elsewhere, then her rising bids ceased, and she secured sugar from other 

 countries, leaving the United States, its further supplies for oiu- home consumption. 



Immediately following this remarkable rise of 3c per lb. in 15 days, investigating committees 

 were set at work throughout the United States in the effort to place the responsibility of the 

 rise upon the importers, refiners, jobbers and retailers of sugar, claiming that these parties 

 bought sugar largely at the July basis and sold it at the August 15th basis, whereas they should 

 have sold it at the usual normal advance for normal profits in the business. 



Had they done this, it is perfectly plain that Great Britain might have taken every pound 

 of these low cost sugars within those 15 days, and left the United States consumers in a pre- 

 carious situation as to supplies and prices. 



As it was Great Britain got only a moderate proportion of such sugar on the 3c rise which 

 she made, and a certain good sized quantity remained in the hands of importers, refiners, etc., 

 which enabled ovlx refiners to keep out of the Cuba and other markets while Great Britain 

 continued to press its requirements upon these markets. 



Had the United States parted with its cheap cost sugar to Great Britain, and then been 

 obliged to compete elsewhere with Great Britain for sugars for our consumers, it is beyond 

 controversy that cost of sugar to the United States consumer to-day would be very much 

 higher than it now is. 



As it is by the policy adopted against the British Government attempt to take all our sup- 

 plies from us, and forcing them by reason of the 15 days rise to go to other countries, we have 

 been able to maintain prices to consumers here without necessary further advances which 

 surely would have come except for the policy adopted. Now, we can congratulate ourselves 

 that "we have abundant supplies within our reach to prevent any further rise in sugar to con- 

 sumers for the remainder of the year, or until the new Cuba crop matures. 



After January next new problems will come to be solved on the basis of war or no war then, 

 which it is not worth our while to consider now. 



There are naturally differences of opinion as to the United States supplies being sufficient 

 for our requirements to end of year, and it may be well for us to specify the basis for our 

 opinion that such will be the case, without entering into full details, which we have made. 



In brief then, the refiners by their foresight in not parting with sugar more largely to Great 

 Britain, had on Sept. 1st a stock of 310,000 tons which, with 55,000 tons bought in Cuba for 

 arrival,' and 35,000 tons to arrive from Hawaii gave without further buying 400,000 tons for 

 refiners use in September, which is more than will be used. 



