THE CUBA REVIEW 31 



Sugar Review 



Specially written for THE CUBA REVIEW by Willett & Gray, New York, N. Y. 



The market during the period under review has continued more or less unsettled 

 having been under the influence of two important factors, the most important of which 

 is the legislation reported introduced in the Cuban Senate to dissolve the Sugar Finance 

 Committee on December loth, leaving all unsold sugar absolutely free. The other 

 factor is the proposition covering the tolling of some 900,000 tons of the present Cuban 

 crop for delivery over a period of nine months from December, 1921 to August, 1922. 

 While no details are given by the Committee here, the tolling margin is believed to be 

 90c. per 100 pounds with the American, National, and Warner Refineries, the principals 

 in the matter. As the Sugar Finance Committee has apparently no jurisdiction to 

 confirm the tolling proposition, the matter has been submitted to the Cuban President 

 for confirmation. It seems to us that this arrangement will be an expensive affair for 

 the Cuban planter and the Committee might just as well dispose of the raw sugar out- 

 right as possibly some form of extended contract could be arranged with the refiners 

 to take the sugar over a period of months on a guaranteed price and whUe this latter 

 proposition would undoubtedly entail some loss, it does not appear as if the loss would 

 be as large as would accrue under the tolling proposition. Owing to the above circum- 

 stances, uncontrolled sugars have been much easier and declines have been established 

 to 3t|c- and later to 3.875c. duty paid basis at New York as compared with Cuban 

 price of 4.11c., duty paid or 23^c. C. & F. 



The control of Cuban sugars as personified by the Sugar Finance Committee is 

 only another example of government interference with private enterprise. Principal 

 sugar producing and consuming countries throughout the world have at times during 

 the war, under necessity, resorted to government control of sugar and in no instance 

 has it proved successful or even satisfactory to the trade or to the consuming public. 

 For instance, the British Government with the finest control that could be instituted, 

 owing to the fact that there was no domestic crop to be protected, had one combined 

 buying, selling, and allocating medium but even such excellent control, managed by 

 some of the best-posted men on sugar in the United Kingdom, Avas only consummated 

 at a loss of £25,000,000. Now, after the rest of the world has tried government con- 

 trol and found same wanting, including Cuba, who through the medium of the Sugar 

 Finance Committee endeavored to control sugars throughout the present j^ear but with 

 unfavorable results, there is further agitation on the part of some interests to have the 

 Cuban Government institute some control or restriction of trade through government 

 legislation applying to the 1921-22 Crop. 



Various plans have been mentioned, the latest one apiDarently being to institute 

 legislation that would restrict grinding before February 1st and after May 31st; any 

 sugar manufactured before February 1st or after May 31st to be subject to heavy taxa- 

 tion or possibly some penalty. We fail to see that this plan would result favorably as 

 some Cuban interests appear to think that all Cuba has to do is to refrain from offering 

 sugars on the market and that our refiners and consuming public will be satisfied to 

 await Cuba's good time in order to obtain supplies of sugar. Suppose, 

 for instance, such a plan is put in force. , This would only result again in Cuba holding 

 the umbrella for uncontrolled sugars. It would enable our beet crop to be easily dis- 

 posed of in its entirety, which amounts to 900,000 tons, Louisiana would readily 

 dispose of the 200,000 tons there and Porto Rico would sell at least half their sugar 

 crop as well as San Domingo and/or some other full duty paying countries. The sugars 

 just mentioned reach the large total of 1,300,000 tons to which must be added the 

 1,250,000 tons unsold of the Cuba crop just ended and which will have to be carried over 

 until next year. This would give our refiners ample supplies of sugar and when Feb- 

 ruary 1st appeared, with practically all Centrals in Cuba readj^ to start, there would 



