Something about sugar

by George M. Rolph

7. Spain, Italy and Sweden not to be bound by the principal restrictions, so long as they do not export sugar.

Russia declined to come into the pact, stating as her reason that she paid no bounty.

Great Britain’s action in joining the Brussels convention aroused a good deal of feeling at home. The contention was made that it worked an injury to the British consumer in causing an advance in prices; it was also argued that the plea put forth in behalf of the West Indies was really instigated by the selfishness of British investors in colonial sugar plantations. The rise in price that followed the convention was stimulated by the shortage in the European beet crop in 1904, and provoked much agitation and dissatisfaction in England, so that it was not certain that Great Britain would be a party to a renewal of the pact upon its expiration.

Subsequently Peru, Luxembourg and Switzerland joined the convention, and the contracting parties were so well satisfied with results obtained that they extended the agreement for five years beginning September 1, 1908. The conditions were to remain unchanged, except for an amendment that permitted Great Britain to disregard the article that prohibited the importation of bountied sugar, unless paying countervailing duty. This prohibition directly affected Russian sugars, of which England did not wish to be deprived.

Russia joined the convention in 1908, with the understanding that her existing fiscal laws and excise regulations should not be interfered with and that the method of fixing the price of sugar for home consumption should rest undisturbed. On her part, Russia undertook not to export more than one million tons during the next five years outside of Finland, Persia and neighboring Asiatic countries.

The convention with these modifications was thus extended to September, 1913, and on March 15, 1912, it was agreed to prolong it until August 31, 1918, on practically the same conditions as the 1908 convention. Because of the great drought in central Europe in the summer of 1911, there was a shortage of 2,000,000 tons in the beet-sugar crop of 1911-12, as compared with the former year, and, on account of the consequent rise in price, England demanded that the Russian exports be increased. The other signatory powers agreed to this and the amount that Russia was permitted to export in the seven years beginning September 1, 1911, was fixed at 1,650,000 tons.

In August, 1912, Sir Edward Grey gave notice of Great Britain’s intention to retire from the convention on September 1, 1913, and on that date she ceased to be a party to it. Nevertheless, after her withdrawal she undertook to observe all the obligations of the convention, and in return the signatory powers agreed not to discriminate against her manufactures of sugar.

The convention stopped exportation of beet sugar at abnormally low prices. It was instrumental in lowering the revenue tax, increasing the consumption and abolishing artificial conditions.

The outbreak of the war in Europe in August, 1914, interrupted the operations of the convention, and it remains to be seen whether or not, when hostilities come to an end, it will be renewed and its terms reaffirmed according to procedure customary when peace is concluded between warring nations.

As soon as the industry got on a sound basis, cane began to feel the benefit of the new order of things. Factories that had been closed were put in operation again and new enterprises were undertaken. Up to the year 1880 the manufacture of cane sugar had been conducted in a slipshod manner. The planters were lavishly extravagant and spent their incomes as they made them, giving no thought to putting aside funds for extensions and betterments. Hard times taught them a severe lesson, by which they profited, and with admirable courage they bent all their energies to the improvement of methods of cultivation and cutting down the cost of production. This was particularly true of Java; beginning with 1884, abundant new capital was brought in, experimental stations and laboratories were built and equipped and all that scientific knowledge, energy and sound business judgment could do was done. At the same time Hawaii, Mauritius, Porto Rico and Cuba made extraordinary progress, but each of these countries deserves an individual chapter.