Edible Products. 



424 



November, 1911. 



sugar was included in the list of imports. 

 For many years the industry was con- 

 fined to provinces near Manilla on the 

 Island ot Luzon, but shortly subsequent 

 to the period in which the Crimean War 

 occurred a great impetus appears to have 

 been given to it due to a largely increased 

 use of sugar by the European nations. 

 The Industry was then extended into 

 the islands of the Visayan group, and 

 the western half of the Island of Negros 

 known as Negros Occidental, grew to be 

 its centre. As early as 1854 the exports 

 of sugar from the Philippines reached 

 the very respectable figure of 47,000 tons, 

 valued at $2,225,022, and in that year it 

 constituted 33*07% ot the total exports. 

 The period from 1890 to 1894 witnessed 

 the full development of the cane sugar 

 producing industry in the Philippines. 

 The average ot the annual exports for 

 those five yeais amounted to over 200,000 

 tons of a stated value of $7,535,838. Up 

 to this period the cane sugar in common 

 use throughout the world was of the 

 classes termed Muscovados and Molasses. 



It was at about this time that the Beet 

 Sugar industry began to reach a high 

 state of development in Europe, and as 

 beet sugar is turned out in refined form, 

 a demand was created for a higher 

 quality of cane sugar than that previous- 

 ly in general use. This gave an impetus 

 to the cane sugar refining business on 

 which the so-called Trust has been deve- 

 loped in the United States. Refiuers of 

 cane sugar demanded a higher quality 

 of the raw product, and this necessitated 

 better mills. Most cane-growing coun- 

 tries were able to meet this demand, but 

 the Philippines — on account of the out- 

 break of the insurrection against Spain 

 which came to a head in 1896 and the 

 subsequent entrance of the United States 

 into the islands ; later the outbreak 

 against United States authority, and 

 after that, as if to complete the demoral- 

 ization of industry, an epidemic of 

 Rinderpest which destroyed upwards of 

 80 % of the work animals of the plant- 

 ations — were una ble to keep pace with the 

 improvements that were taking place in 

 the industry elsewhere, and as a result 

 the production of sugar declined rapidly 

 from the plane that it reached in the 

 early nineties. 



In 1902 Congress enacted a law which 

 admitted Philippine products into the 

 United States under a duty 25 % below 

 regular rates. This, however, did not 

 prove a sufficient inducement to draw 

 the outside capital necessary for the 

 rehabilitation of the industry. It was 

 not until the enactment of the Payne- 

 Aldrich Bill in 1909 that any mate- 

 rial relief was afforded. This bill pro- 



vided for the free entry into the United 

 States markets of Philippine sugar to 

 an amount each year not exceeding 

 300,000 gross tons. As the duty in 

 the United States on a 96 degree test 

 sugar is ftl'682 per 100 lbs., the effect of 

 this law has been to greatly advance the 

 price of the better grades of sugar pro- 

 duced here. While very little has thus 

 far been manufactured that goes above 

 88 degrees test, this is greatly benefited 

 in price, and the lower grades ranging 

 down to 75 degrees, that are consumed 

 locally or are marketed in China for 

 consumption in raw state have partici- 

 pated in some measure in the advantage 

 enjoyed through free access to United 

 States markets, as all of the better 

 grades are removed from competition in 

 supplying this near-by demand. Very 

 little of the low grade sugars go to the 

 United States. 



For several years past the annual pro- 

 duction of sugar in the Philippines has 

 ranged around from 150 to 175,000 tons. 

 It is estimated that from 40,000 to 50,000 

 tons of this was consumed in the 

 islands, which has left in the neighbour- 

 hood of 125,000 tons available for export. 

 Prior to the enactment of the Payne- 

 Aldrich Bill the greater part of the sugar 

 exported went to China, but since that 

 Act went into effect the exports to the 

 United States have increased very mate- 

 rially, and during the fiscal year 1910 

 94,000 tons out of a total of 127,000 tons 

 exported went to the United States, 

 while about 30,000 tons went to Hongkong 

 and China proper. For the fiscal year 

 1911 exports increased to 149,000 tons, 

 nearly seven-eighths of which went to 

 the United States. While there is natur- 

 ally a great benefit derived by reason 

 of the law providing for free entry of 

 Philippine sugar into the United States, 

 the limitation imposed has undoubtedly 

 been a decided hindrance to the develop- 

 ment of the industry. It is true that 

 the amount fixed is above what the is- 

 lands have ever produced, yet the fact 

 is always present that it is easily possible 

 to exceed that limit, in which case the 

 surplus product would have to be sold 

 on the basis of the world's price, and the 

 effect would be to place the Philippine 

 grower in the power of the American 

 refiner. This has discouraged American 

 capital that otherwise mi^ht reasonably 

 be expected to invest in the industry in 

 the Philippines. There are certain 

 sections of the islands that are particu- 

 larly well adapted to the production of 

 sugar* and the industry gives assurance 

 of very substantial profits, but so long 

 as the limitation remains it will prove a 

 great deterrent to the investment of 



