| Show How Low Will T l Sugar GO 0 f Present Case With 1921 On a Tuesday a cargo caro of Cuban raw I sugar sold eold at cents cent a pound cost cot and freight the lowest lowet point reached since e sugar ugar started Us it Ia decline from around 4 cents cent In October 1924 12 says ey eythe the Boston DOlton News Newl Bureau Dureau Holders of sugar securities are aro asking themselves how much lower tower sugar may ay be M tp expected to go and how long the slump may be expected t d to la last a The table shows that Cuban raw sugar lugar Is II today selling aeling within two fifths two of s scent a cent ot Sf the lowest price It has has- hal reached in the past pat t entY twenty five years year and Is la within bOOths JI of a cent of the lowest low low- est act et price since the war Year High High Low Average Averre 1925 1924 12 62 2816 1923 3 1922 1813 Z 2577 1921 1021 12 20 1813 1469 1920 1020 2600 1919 1250 68 1918 4 86 01 1917 11 1918 1016 11 I 1915 41 2626 I i 1914 1876 1875 2745 2746 1 11 1913 24 1876 2160 2150 1912 1012 11 i J 24 s 2804 2104 1911 1511 11 I 1910 4 v 2828 2825 1909 2646 2640 fg 1908 5 i i 2713 1907 2896 2396 I 1906 2318 1905 1005 2918 2915 98 1 1904 04 19 2626 1903 2226 1816 1815 2035 2036 1902 1903 1666 1565 1666 1867 nOI 1901 2687 2681 19 2382 2862 38 18 1900 1800 8 2565 2665 2881 When h ih the de decreased P purchasing p power er I of the dollar dolar is II taken into consideration sugar ugar Is I today considerably che cheaper per than at any time since Ince 1900 except for a 0 short ort s time in 1921 1021 and 1 1922 22 EFFECTS OF or CONTROL AND DE The World war decreased European Europen beet sugar augar production by come eme ton tons It IL I wIll be remembered that to conserve the allied aled sugar ugar supply the United Unite Kingdom established governmental governmental govern govern- gover- gover mental control as a. early as a. 1914 11 that Inter allied aled European control came ce In 1916 1318 and that by 1917 11 the United States Cuba Cuba- Cuba and Ind Canada Canada hac had ha Joined In an an in international international In in- regulation of sugar lugar Thus the armistice in 1918 1910 found sugar euga a a ra rationed rationed ra- ra In toned supply in most moa countries 1919 11 without any any- warning and ad without accumulating surplus stocks France decontrolled de do- controlled sugar lugar for purpose The result was wa greatly greaty stimulated de demand demand do- do mand roamS for sugar a rise In prices and eventually the diversion to France of much Cuban sugar lugar that that would have been rationed out to various nations under under under un un- un- un der the control plan The Tle United Stats States attempted to decontrol decontrol decontrol de control sugar In January 1920 1820 The price of ot raw sugar had already nearly nealY doubled In a s year and with decontrol decontrol con de there ther came a wild wid scramble for sugar augar at It any price There was wae every ever Indication of a world shortage but an as anthe the price of sugar Igar rose until It reached a peak of 2250 2 60 50 cents cent In May 1020 peak a large quantities of foreign sugars solar ugar from Om over fifty countries found their way ay into this country people over bought and ana America c found d herself s with an oversupply oversupply over- over supply f Instead nt of ote a shortage ch As might be expected this spectacular a h of sugar Igar prices accompanied by overbuying trained strained credit and the like precipitated a sugar panic Sugar dropped more rapidly lular than It had risen and when the casualties were counted It was wa found that the United States States States' wee was overstocked Cuba had a 8 carryover of tons tOR and sugar was a drug on the market markot WILL WIL 10 1022 RECOVERY BE lIE DUPLICATED Such were tho the conditions under which sugar reached a a low point of ot J. J 1813 81 cents in 1921 Compare tOil this with wih present conditions Fundamentally the cause caul of the present low price Is overproduction resulting from the reappearance of Europe Europe Eu Eu- rope ropo as a 5 a large 1814 beet bret producer coupled with a Cuban crop which Is la in great part the tho outcome of Ireat stimulation from the war wa while consumption con con- um ton has ha Increased It Jt has has not kept pace with production so 1 that there will i most mOlt certainly be a a large carryover this year Cuba the tie most mOt vital vial factor from the point of ot View of the United States Statu Is variously estimated aa u likely to have hava havea a carryover of ot from to tons tOR With only tons of raw raw In Inthe Inthe inthe the Island on October 10 as u estimated by Gray it seems likely that Cuba will enter 1926 1826 with wih nearer than wJ tons tone Assuming to be conservative tons tona this is 1 lees leea lathan than one half one hal the carryover of 0 1921 12 Into 1922 12 In January 1 1922 2 sugar augar sold lold at around 1 18 8 cents cent and this appears to be a I likely price for January 1926 2926 In In Jan Jan January an uary 1922 tIle prospect was waa for a crop larger by tons tOne than the year before and here again we find a parallel paral paral- lei lel e a although t estimates have av not yet been n na announced for 1926 1026 Expectations aU are ae for a crop as aa largo large If f not larger than this year however I Yet Yet despite t t the re black II no outlook tl t Jn in Jannary January Jan Jan- I nary uary 1922 1022 sugar a sold on a steadily advancing advancing ad ad- market up to cents cent In December December De Do- DeI I cember discounting the prospects of a a smaller crop in 1923 which by the way did not materialize Is I It I not reasonable reasonable reason reason- able ahle to suppose that the low prices of lug sugar r today will further stimulate de demand demand demend de- de mand mend and In decrease wi production chiefly beets beet so 1 that by the fall fail fal of 1926 there ther will wJ be a healthier r situation with consumption consumption con con- somewhere near production prospects a for 1927 encouraging and discounting discounting dis dis- counting these thes Il r prospects the tUo t o price of ot sugar considerably higher The Immediate outlook Is anything but encouraging to be sure aure but one thing is I reasonably certain certain no no essential commodity like 10 sugar Is I. going to sell sel long below Its Ita cost COlt of production Al Alray Already Already Al- Al ready ray we w hear of Cuban planters taking curb the law into Inlo their own hands handl to production by burning buring the cane fields fielda felds A foolhardy proceeding this thle but vastly vasty significant of the growing realization on the patt palt of ot sugar auar producers producer producer that tha too much much sugar lugar does doe not spell pel prosperity |
