Sugar Prospect

The recent marked rise of sugar stocks has led investors to look into the sugar situation with more than usual interest. During 1922 the price of raw sugar rose fairly steadily; last Spring it shot up rapidly, but fell again, accompanied by considerable political oratory. After a dip early in January, 1924, another marked rise in raw sugar has occurred. European purchases have been large, and the high labor costs seem to indicate good consumption at home.

The Cuban crop has been the real source of the world's sugar ever since the practical destruction of the beet sugar industry of Europe during the War. Last year the drought in Cuba reduced the output and ruined many growers, and there is no large excess of sugar overhanging the markets.

In order to protect the "War-baby" beet sugar industry of this country, a tariff on imported sugars was placed in the Fordney-McCumber tariff act. The beet sugar growers of Utah and other centres have strongly supported this tariff. And the sugar refineries and the American companies producing cane sugar in Louisiana, Cuba and elsewhere have strongly opposed it. Without the tariff, the American beet sugar industry is doomed, since it cannot compete with the lower costs of producing Cuban sugars. With the tariff, we have a situation analogous to taxing American sugar consumers in order to subsidize the domestic beet sugar industry.