300 BEET-SUGAR INDUSTEY ON THE CONTINENT. [Dec. 1895. 



steadily increased until, in 1888, it amounted to lOd. per cwt. 

 Prior to 1861 no rebate was allowed. In 1869, the tax and 

 rebate were readjusted ; a weight duty of 9d. per cwt. was 

 imposed on the roots, accompanied by a rebate on exported 

 sugar, of 9s. per cwt. on raw sugar, and of 10s. to lis. on candy 

 and hard sugar. These measures, which remained in force until 

 1883, are regarded as having had a most important bearing on 

 the development of the cultivation of sugar beet in Germany. 

 As the tax was imposed on the roots, farmers were interested in 

 increasing the saccharine qualities of the beet, while manufac- 

 turers, on the other hand, devoted their energies to improving 

 the methods of extraction. The law of 1869 remained un- 

 changed until 1883, when a slight modification of the rebate 

 scale was made. In 1888, however, fresh legislation was intro- 

 duced, whereby the tax on beets was fixed at 5d. per cwt., and 

 the rebates allowed on sugar exported were reduced tD 4s. Sd. 

 per cwt. on raw sugar, and to, roughly, 5s. per cwt. on candies 

 and white sugar. At the same time, an additional tax was 

 imposed on all sugars entering into home consumption. A radical 

 change in the system of taxation was, however, introduced by a 

 new law which came into force in August 1892. By this 

 measure, which is still in operation, the tax on beet was abolished, 

 and replaced by a consumption tax of 9s. per cwt. on refined 

 sugar, to be accompanied by bounties on the exports of sugar 

 for a period of five years, expiring in 1897, the consumption 

 tax being also remitted on exported sugar. The bounties were 

 fixed for the first three years at 7^d. per cwt. on raw sugar, 

 and at Is. and lOc^. for refined sugars ; for the last two years 

 (1896 and 1897) at 6d, d^d., and S^d. respectively. 



In spite of the encouragement afforded to exporters by the 

 Government, producers in Germany complain that their industry 

 has ceased to be profitable, owing to the fall in the price of 

 sugar. It seems that one effect of tlie bounty system has been 

 to stimulate production beyond the requirements of the trade. 

 That the present state of affairs is regarded with apprehension 

 may be gathered from the following passage, which occurs in a 

 report on the agricultural position of Germany, transmitted to 

 the Foreign Office in April last : — 



In view of the present alarming depression in the sugar industry, the 

 Prussian Government intend, either in this or the next session of the 

 Reichstag, to introduce a measure amending the existing sj stem of 

 taxation of sugar. The changes proposed are an increase of the tax on 

 consumption (Verbrauchsteuer) and the imposition of a graduated 

 industrial tax on sugar factories, which shall have the effect of checking 

 over-production, and at the same time of favouring small local establish- 

 ments in which the landowners are interested, as against the large 

 factories, which are purely industrial undertakings. With the means 

 obtained by these measures the bounties on exportation will be raised to 

 the point necessary to enable the German sugar industry to compete 

 successfully in foreign markets. It is asserted, however, that the 

 production of beet-root sugar in Germany is so highly developed, that if 



