Too Much Sugar

In the very general feeling of prosperity now experienced by U. S. business, the sugar trade has not shared. Raw sugar has recently dropped to 2-c- a pound--the lowest price since 1922. Prophecies of a further decline in raw sugar to l 3/4-c- a pound are common, since a huge increase in the supply is overhanging the markets.

For 1924-25 the world output of sugar is estimated at 23,233,035 tons--3,418,000 tons over production in the previous year. Cuban output is placed at 5,125,970 tons-- an increase of about a million tons over 1923-24. Similarly European output is set at 7,078,000 tons--an increase of about two million tons.

Worst of all, to the sugar trade at least, is the prospect for still further production increases in 1925-26. The present prices, however, are already below cost of production for most Cuban sugar-mills. There is little prospect of an increase in consumption sufficient to absorb the impending surplus.