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Economic aspects of the world's sugar industry Bans, Raghbir Singh 1936

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ECONOMIC ASPECTS OF THE WORLD'S SUGAR INDUSTRY by Raghbir Singh Bans, ;JBeSeA» A & ± A Thesis submitted as a p a r t i a l requirement f o r the Degree of Master of Science i n A g r i c u l t u r e i n the F a c u l t y of A g r i c u l t u r e The U n i v e r s i t y of B r i t i s h Columbia A p r i l , 1936 Submitted - February 1936 Approved Head of Department i LIST OF CONTENTS i Contents Pages Introd 1101 i o n e « e * e « o a o o * o a o « o v l i — iX PART 1. Chapter I H i s t o r i c a l Development. Sugar i n Nature • • • • • < • • « • • • • • • » 1 Cane sugar, o r i g i n and h i s t o r y * « • ° • « 2 - 4 Beet sugar, h i s t o r y . o . o o . < > . < , • • • • 4 - 8 Competition between Beet and Cane • • • • • • 8 - 1 3 Chapter I I l i m i t i n g F a c tors of Cane and Beet Canej Climate • • • • • • • • • • • • • • • 14-16 3 o i l 9 • e o e e » e * » » e « e » o 16—17 labOUr • • - • • • • • • • • • • • • • o 17—20 Chapter I I I I n d i a H i s t o r i c a l Development o f the Industry • • • 21-24 l i m i t i n g F a c t o r s ; Climate • . . » « „ „ . • 24-25 S o i l o s o e e e e e © 25-26 labour ° » » » • «> « • • 26 Economic E s s e n t i a l s • « . . > • « 26-32 Chapter IY Cuba H i s t o r i c a l Development of the Industry • • • 33-35 l i m i t i n g F a c t o r s ; Climate . » . . » o = . . 36 S o i l 37 labour ' 38 Economic E s s e n t i a l • « > . « e c o « . 0 < > e 39-44 Chapter Y Java H i s t o r i c a l Development of the Industry « . • 45-48 i i LIS'T OF CONTENTS L i m i t i n g F a c t o r s ; Climate • • • « 0 0 •• ° • • 0 48-49 S o i l c « o o o 49—50 Labour • • « • o • . . o <> 50 Economic E s s e n t i a l s o 0 , o e . 0 . o e o o « 50-55 Chapter VI B r i t i s h Empire (Excluding India) . A u s t r a l i a H i s t o r i c a l Development of the Industry * ° 0 56-57 L i m i t i n g F a c t o r s ; Climate . • « . o . • e v e . 57-58 S o i l • • • • • • • • • • 58 Labour e 0 e • ° 9 » « • • 58-59 Economic E s s e n t i a l s o . 5 9 - 6 1 South A f r i c a H i s t o r i c a l Development and L i m i t i n g F actors • 61-63 Economic E s s e n t i a l s « 0 c . » e o « o 0 < . o < > 63-65 M a u r i t i u s H i s t o r i c a l Development and L i m i t i n g F actors » 65-66 Economic E s s e n t i a l s . • • • • « 66-69 The West Indies H i s t o r i c a l Development and L i m i t i n g F actors • 69-72 Economic E s s e n t i a l s •• •• • . « • • . • • • • • • . • <» » 72-75 Chapter V I I The United States and I n s u l a r Area The United States H i s t o r i c a l Development and L i m i t i n g Factors 8 76-78 Economic E s s e n t i a l s e . e . o e e e . o o . c o 78-80 Hawaii H i s t o r i c a l Development and L i m i t i n g F actors • 80-?81 Economic E s s e n t i a l s • • . « • • • •> o . . . . 82-83 Porto Rico o o o o « » » « o o « » o « » c « 84-85 The P h i l i p p i n e s .• • • o • • » . • . • • • • > . • ' • ' • 86-88 i l l LIST OF COHTMTS . Chapter V I I I Other Cane Sugar Producing Countries B r a z i l • 89. Peru . . . . . . . . . • • . . . . • • . • 90-91 ' San Domingo . . . . . . . . . . . . . . . . . 92-93 Formosa • < , * > < > « , « > * < » a « 9 o « > < » * « « » * « > 93 MexioO 94 Egypt o * . • . . • . .' . • • • . • • . » 94 Argentina « • « • . . « . » . . . 95 Chapter IX European Beet Sugar Producing Countries L i m i t i n g F actors . • . . • . • . . . • • • * 96-99 Economic E s s e n t i a l s . . . o « . . « « o o . e 100-102 Chapter X Other Beet Sugar Producing Countries United Kingdom . . . . . 103-107 Canada . . . . . . . . . . . . . . . . . . . . 107-109 United States . . . . . . . . . . . . . . . . . 109-112 Chapter XI S c i e n t i f i c Improvements Cane • . . . . . . . . . . . . 113-115 Beet • • • • • . . * . . . • • • • • - • • • 116 PART I I S t a t i s t i c a l P r e s e n t a t i o n Chapter X I I Production I n d i a . . . . . . . • • • » - • • • • • • • • 117-119 Java . . . . . . . . • 117-119 United States » . ° <> . . 1 1 9 - 1 2 1 Cuba . . . . . . . . . . . . . . 119-121 European Beet Sugar Producing Countries 0 • (Excluding United Kingdom) . . . . < = . 121-123 Other Countries . . . . . e . « 121-123 i v IIST OF CQNTEITS B r i t i s h Empire (Exclud ing India) • • • 0 ° ° ° 122-124 World • • • • • • c o o . o o o » o » o © o o 123-124 Chapter X I I I Consumption Cl a s s of Consumption • < , < > e o o 8 , > c c « , e 126 -128 Factors Governing the Development of Consumption . • • o o « » o » » c 128-133 Income as a Factor i n the Inc r e a s i n g Consumption «.<,<>«>. . . . . . c c 133-134 Influence of Taxation on Sugar Consumption . . 134-135 Chapter XIV • The T a r i f f P o l i c i e s i n Various Countries H i s t o r y of T a r i f f • • • « • • < > • • • 136-137 pre-war and Post-war . < , . . < , « . « « > . . « > . . 137-141 The Present T a r i f f P o l i c i e s : Great B r i t a i n . • • • « * • • 141—143 The United States T a r i f f P o l i c y . . . . . . 144-146 I n d i a » o . e . . . e « » < > . e » « o « » . 147—148 Other Countries . . . . . « • « . • < > » « • 148-149 Chapter XV Marketing Schemes and Agreements The Chadbourne Plan and Others • • • • • • • < » 151-156 Chapter XVl The World Sugar S i t u a t i o n General S i t u a t i o n f o r period under survey • « 157-166 Causes of the Sugar C r i s i s • . • . « • • • • • 166-170 Chapter XVII The Future of the World Sugar Industry •<><>• 171-175 V LIST OF APPENDICES Pages Appendix A ° 176-178 Appendix B • \ B•• • ° • • » Table of World Production 1871-1931. « - . 179-180 Appendix 0 Tables Showing A c t u a l Production i n Various Countries Ind i a • « o o e » « • • • • • • • • • • • 181 Cuba c e c o e » « # o o • o e o • • o ® 181 tFaV a e © e e © a © 9 » » © £ » © © © e 181 B r i t i s h Empire (Excluding India) . < > . . . 182 The United States • . c e o o ' c o e . . . 183 Other Countries e e « o e « o « e » . . « 184 European Beet Sugar Producing Countries • 185 Appendix D Table showing A g r i c u l t u r a l P o p u l a t i o n and Consumption per c a p i t a . . o o o o o . o . 186 Appendix E "Relative Production and Consumption i n Various Countries . • . • o e e « « « e . 187-1878. Appendix F Table showing Sugar Consumption i n Various Countries • • • • • • o . • • • • • * • • • 18$ Appendix G Beet and Cane Sugar Separately . . . . . . 189 Appendix H . Sugar Production as Percentage of World 8 * 190 Appendix' I Table Showing World Stock • . . . . . . . 191 Appendix J U n i t s of Measure . . . « e . . . . < , < > « . 1 9 2 v i LIST OF DIAGRAMS Page World Map Showing.Distribution of Beet and Oane. . . 10 Diagram of world Production from 1871 to 1935. . . . 12 Chart Showing Production of I n d i a and Java . . . . . 118 Chart Showing Production of United States and Cuba . 120 Chart Showing Production of Other Countries and Beet Countries . . . . . . . . . . . 122 Chart Showing Production of World and B r i t i s h Empire 124 Chart Showing Consumption per c a p i t a 127 Chart Showing Product ion and Consumption i n Various Countries . . . . . . 129 Chart Showing Consumption i n Various Countries i n R e l a t i v e Percentage of the World. . . . . . . . 130 Chart Showing Percentage of Beet and Cane Sugar. . . 160 Chart Showing Production of Various Countries i n R e l a t i v e Percentage of the World „ . 162 Chart Showing V i s i b l e Stock. . . . . . . . . . . . . 164 Chart Showing C o - r e l a t i o n of P r i c e and Stock . . . . 165 v i i INTRODUCTION . Sugar i s today e s t a b l i s h e d both as an i n t e r n a t i o n a l commodity, and an e s s e n t i a l c o n s t i t u e n t of human food. E a r l i e r i n i t s h i s t o r y , i t was used f o r m e d i c i n a l pur-poses, and l a t e r i t was considered as a luxury commodity. At that time, cane was the only source of sugar. Toward the end of the 18th century, when the use of sugar increased i n Europe because of i t s food value, Andrew Margraf, chemist i n the U n i v e r s i t y of B e r l i n , discovered a method of p r o c u r i n g sugar from beets. The beet sugar industry expanded r a p i d l y i n Europe, aided as i t was by government a s s i s t a n c e . The world sugar production was affected by the production of beet sugar, and cane sugar production increased r a p i d l y as the demand-grew i n Europe. In the" post war p e r i o d , there was a rapid recovery i n the beet sugar i n d u s t r y as a r e s u l t of government assistance and the r a i s i n g of t a r i f f b a r r i e r s * This, combined w i t h the increase of cane sugar production, led to c a t a s t r o p h e i n the world sugar i n d u s t r y . In other words, at the present time, c o u n t r i e s which produce sugar cheaply are forced out of the world market, w h i l e the c o u n t r i e s producing on cost i n s i s t on pursuing t h e i r p r o t e c t i o n i s t p o l i c y i n d e f i n i t e l y . The purpose of t h i s w r i t i n g , t h e r e f o r e , i s to study the world sugar p o s i t i o n and to see how deeply these protec-t i o n i s t p o l i c i e s are rooted, and to what extent the world sugar i n d u s t r y has been a f f e c t e d . v i i i In a d d i t i o n , reference w i l l be made to the development of the i n d u s t r y which has taken place i n I n d i a since 1931. The b a s i s of t h i s development i s the p r o t e c t i o n i s t p o l i c y , as i s shown by the f a c t that the sugar production of I n d i a increased 77 per cent i n the f i r s t two years a f t e r t h i s programme was adopted. For t h i s reason, p a r t i c u l a r a t t e n t i o n has been given t o l a study of the recent change i n the p o l i c y of the Indian Government to see whether i t would enable I n d i a to expand her i n d u s t r y behind the p r o t e c t i v e w a l l . I t i s also the d e s i r e of the w r i t e r to study I n d i a i n r e l a t i o n to the r e s t of the world i n connection w i t h sugar p r o d u c t i o n . Furthermore, the v i o l a t i o n of the economic law of comparative advantage has lower.ed the purchasing power of t r o p i c a l c o u n t r i e s , and t h i s i n t u r n renders them unable to buy the products of the i n d u s t r i a l c o u n t r i e s . Thus, i t s infringement has helped to prolong the present depression. I t i s also the purpose of the w r i t e r to observe to what extent t h i s v i o l a t i o n of the law has played a r o l e i n the present c r i s i s . On the b a s i s of these e n q u i r i e s , the work i s d i v i d e d into two p a r t s . The f i r s t part mainly covers the h i s t o r i c a l development of both cane and beet sugar, and g i v e s t h e i r l i m i t i n g f a c t o r s and economic e s s e n t i a l s . The second p a r t c o n s i s t s of s t a t i s t i c a l diagrams of production and i x consumption, of a general survey of the world s i t u a t i o n , and of a d i s c u s s i o n o f the p o l i c i e s of the va r i o u s governments. The w r i t e r wishes to express h i s hearty a p p r e c i a t i o n to a l l those who have a s s i s t e d him In completing t h i s work. E s p e c i a l l y does he thank P r o f e s s o r F. H. Clement, Dean of the F a c u l t y of A g r i c u l t u r e , the U n i v e r s i t y of B r i t i s h Columbia, f o r h i s i n v a l u a b l e s u p e r v i s i o n throughout the course of the i n v e s t i g a t i o n ; Dr. A. F. Barss, Pro-f e s s o r of H o r t i c u l t u r e , f o r h i s general guidance and help from time to time; Dr. G. H. H a r r i s , A s s i s t a n t P r o f e s s o r of H o r t i c u l t u r e f o r h e l p f u l advice i n the e a r l i e r stages of t h i s study; P r o f e s s o r G. F. Drummond, Department of Economics, and Mr. D. K. B e l l , A s s i s t a n t i n S t a t i s t i c s , f o r t h e i r advice i n s t a t i s t i c a l matters; and to- Miss Anne Smith, A s s i s t a n t i n the L i b r a r y , f o r valued help i n securing f o r e i g n r e f e r e n c e s . PART 1 "The Regional ana Economic H i s t o r y ana Development of the Sugar I n d u s t r y * w 1 Chapter 1 ri'he H i s t o r i c a l Development of Sugar  The Occurrence of Sugar i n Hature In the modern world, a l l a u t h o r i t i e s accept the phenom-enon of the presence of sugar i n a l l plant sap. I t occurs widely In nature and c o n s t i t u t e s Important food f o r "both p l a n t s and animals. The green p l a n t s manufacture i t from • carbon dioxide and-water. Many p l a n t s store sugar and use I t i n other seasons; even the onion u t i l i s e s sugar during the period of germination, while other p l a n t s such as the beet use part of the stored-up sugar when the flower i s maturing i n t o seed. Some of the sugar s t o r i n g p l a n t s are beet, c a r r o t and parsnip. Some of the t r o p i c a l p l a n t s which store sugar are date, palm, palmyra palm and cocoanut palm and they were used f o r manufacturing sugar. The plants which have heavy sugar content are c a l l e d sugar-producing p l a n t s . Sugar con-tent i s found predominantly i n sugar cane, beets, sorghum, maples and melons. Besides these enough sugar i s present i n small and orchard f r u i t s . However, In plants sugar i s found In a more concentrated form i n f r u i t s , seeds, roots or sap depending upon the sp e c i e s . Chemically, cane, beet and maple are i d e n t i c a l . . Since the 'subject of t h i s t h e s i s i s l i m i t e d to cane'and beet sugar, the w r i t e r w i l l develop i n the f o l l o w i n g paragraphs the e a r l y h i s t o r y of both cane and beet sugar. 2 Pane Sugar • I t Is believed that sugar was not unknown even In the f i r s t century. The c l a s s i c a l w r i t e r s n oticed the sweet sap of the Indian reed. However sugar was f i r s t prepared e i t h e r from cane or from bamboo. Both belong to the grass f a m i l y on the genetic s i d e . The gramine&e i s the n a t u r a l order and 'the genus i s the saccharum. Sugar cane I s pe r e n n i a l and sometimes under favourable c o n d i t i o n s i t grows about twelve to twenty f e e t h i g h . I t grows In a l l t r o p i c a l and sxib-tropieal regions but the lower l e v e l s are considered best. I t r e q u i r e s a hot moist climate with a heavy r a i n f a l l during the growing season and c o o l , dry, weather during the r i p e n i n g p e r i o d . O r i g i n In s p i t e of the d i f f e r e n c e of the opinions of some a u t h o r i t i e s , I t i s g e n e r a l l y b e l i e v e d that sugar cane o r i g i n -ated i n I n d i a . I t i s claimed that the f i r s t mention of sugar cane i n h i s t o r y appears i n c e r t a i n Chinese w r i t i n g s of the' eighth century B.C.. I t i s there recorded that the knowledge of sugar cane came from I n d i a . Furthermore, Alexander the Great, more than three c e n t u r i e s before C h r i s t , gathered, on the banks of the Indus, the "honey-bearing reed" and took i t back to Europe. The secret of sugar making, however, remained 'undiscovered u n t i l the t h i r d or f o u r t h century A.D. when the Bengalese were c r e d i t e d with the .art of sugar making. In Europe i t was known as "Indian S a l t " . I t i s c a l l e d "Shakara" i n the S a n s k r i t and i t i s from t h i s that .the name of sugar i s derived. In the f i f t h century cane sugar spread to P e r s i a , Arabia end Egypt. Arabian doctors user] i t f o r medicine. The Moors introduced the sugar cane i n t o Spain i n the e a r l y eighth century. Under the Arabs the growth of cane, spread f a r and wide from I n d i a , and i t was a l s o introduced i n t o S i c i l y and Andalusia. During the Middle Ages Venice was the c h i e f sugar centre i n Europe and traded with I n d i a , Arabia e t c . I t Is shown i n one of the e a r l i e s t references that i n 1319, Tomasso loredano shipped 100,000 l b s . of sugar from Venice to England i n exchange f o r wool. About 1420, a Venetian invented a meth-od of making a l o a f of sugar and was awarded 100,000 crowns (§120,000) as a p r i z e . About t h i s time a l s o , sugar cane was planted i n Mad-e i r a by the Portugese. By 1472 i t had! vbeen c a r r i e d along the western coast of A f r i c a to the South as f a r as St. Thomas I s l a n d ; l a t e r i n 1494 i t was c a r r i e d t o San Domingo. In the e a r l y l o t h century the Spaniards introduced sugar cane i n t o Java and the P h i l i p p i n e I s l a n d s . About 1880, the c u l t i v a t i o n of sugar cane was developed i n A u s t r a l i a and F i j i . Captain Cook, when he discovered the Hawaiian Islands found sugar cane growing l u x u r i a n t l y there. This shows that sugar cane was also indigenous to P o l y n e s i a . During the s i x t e e n t h century the development of sugar cane spread r a p i d l y . Spain and Portugal dominated the sugar i n d u s t r y of Europe,. The Antwerp r e f i n e r y was important at that time, but i n 1,585., London became an important r e f i n i n g center. In the 1 7 t h century B r a z i l was' an important sugar producing country under Dutch a d m i n i s t r a t i o n . Sugar was used 4 i n Europe as a medicine. I t was used to a greater extent when the i n c r e a s i n g iise of t e a , coffee and chocolate i n the 13th century brought these drinks i n t o the l i s t of p r i n c i p a l food s t a p l e s . Consumption also increased because of i t s use i n candy, jams, j e l l i e s and i n haking. The increase i n eomsump-t i o n i s c l e a r l y Indicated; i n 1 7 0 0 the t o t a l amount of sugar consumed was 10 ' ' ,000 tons and i t Increased to 1^0,000 tons-by the year ending 1800. The consumption In Great B r i t a i n Increased to 1,100 , 0 0 0 tons by the year 1 8 8 5 . There was a st r u g g l e i n the e a r l y 18th century f o r the sugar trade between the E n g l i s h , French, Dutch and Portugese. However, the l a r g -est sugar exporting country i n the 1 8 t h century was the West I n d i e s . The' sugar i n d u s t r y expanded In Java l a r g e l y during the 18th century. During the 19th century Jamaica and Cuba were the l e a d i n g sugar producing c ountries.•_" The sugar pro-duction of Cuba was one-third of the t o t a l world cane sugar production by the end of the season 1929-30. Next to Ouba was Java and i t produced f i f t e e n percent of the t o t a l cane sugar output. Since 1931, the sugar i n d u s t r y has expanded r a p i d l y i n B r i t i s h I n d i a and by the year 1932-33, India' was again the l e a d i n g sugar producing country, followed by Cuba, Java, Hawaii and the P h i l i p p i n e I s l a n d s r e s p e c t i v e l y . The. H i s t o r y of Beets and Beet Sugar Undoubtedly, the"' h i s t o r y of the beet . i s as o l d as that of most' other• a g r i c u l t u r a l commodities. The e a r l i e s t references to the beet are recorded i n e a r l y Roman w r i t i n g s of the f i r s t century. I t i s there s t a t e d that the beet was used f o r food by human beings and animals. P l i n y says that "Next to g r a i n 5 and beans there i s no more se r v i c e a b l e plant than, the white beet. The root i s used f o r human and animal .food, the young sprouts as a vegetable and the leaves as accessory fodder".^ Not u n t i l the 1 6 t h century was any f u r t h e r attempt made to make use of the beet when O l i v i e r de Serres found by exper-iment that "The_juice y i e l d e d . i n b o i l i n g i s s i m i l a r to sugar 2 syrup, being b e a u t i f u l to look at on account of i t s v e r m i l i o n " . The f i r s t date of the e x t r a c t i o n of sugar from the beet i s 1 7 4 7 , when Andrew Margraf, chemist i n the U n i v e r s i t y of B e r l i n , succeeded i n ob t a i n i n g c r y s t a l s of sugar from beets. The sugar content at that time was three per cent, very much lower than now. However, on account of h i s f a i l u r e to invent any large scale method of e x t r a c t i o n , Margraf's d i s -covery was not put Into p r a c t i c e . About f i f t y years l a t e r F r a n c i s K a r l Achard, a student of Margraf's, discovered the c o m m e r c i a l ' u t i l i t y of the beet. This a t t r a c t e d F r e d e r i c k Wil l i a m 1 1 1 , King of P r u s s i a , who helped him to construct a sugar f a c t o r y . I n 1799 the f i r s t beet sugar f a c t o r y was e s t -a b l i s h e d at Ounern i n S i l e s i a . The i n d u s t r y was developed then by P r u s s i a , Bohemia and France. A f t e r t h i s , Napoleon 1 became i n t e r e s t e d and sent a group of s c i e n t i s t s to repo r t on Achard's f a c t o r y . During that period s e v e r a l small f a c t o r i e s were s t a r t e d and p r o v i s i o n was made f o r studying the p o s s i b i l i t y of improving the sugar gontent. As a r e s u l t , they discovered that when they rotated 1 . Sugar Beet and Beet Sugar f Bowling, p. 1 1 2. Sugar Beet and Beet Sugar , Dowling, p. 11 beets a l t e r n a t e l y w i t h corn, there was an increase i n the y i e l d of g r a i n . Besides t h i s , Napoleon e s t a b l i s h e d s i s tech-n i c a l beet sugar schools and t r a n s f e r r e d one hundred students from other sciences to the study of beets. The French, govern-ment aided these students f i n a n c i a l l y . By g i v i n g a l l t h i s assistance they' were t r y i n g to improve the method of e x t r a c t i o n and to increase the q u a l i t y of the beet. Another fundamental reason f o r the s t i m u l a t i o n of the beet sugar i n d u s t r y was the "blockade". This e f f e c t u a l l y cut of f the sugar stipply of Europe and spurred on both France and Germany i n t h e i r experimentation. The French government paid a bounty to beet sugar producers and r a i s e d the sugar p r i c e to p r o h i b i t o r y l e v e l s . The average pr i c e between 1807 and l 8 l j ? remained at t h i r t y cents per pound. In 1811, the f i r s t sugar f a c t o r y , n e e r i b i l l e , on the estate of Oraspel-Delisse , wss e s t a b l i s h e d i n France. During the year 1812 , 1,000,000 fr a n c s were granted f o r the study of the commercial source of beet sugar. The t o t a l production t h i s year was l6>0 tons of sugar. On' the r a i s i n g of the blockade beet" sugar production showed a d e c l i n e which was due to the a v a i l i b i l i t y of cane sugar at cheaper p r i c e s . The Germans stand at the f o r e f r o n t In thec-sugartbeet i n d u s t r y from the s c i e n t i f i c and t e c h n i c a l s i d e . They im-proved the content of sugar from 3 to 12.8 per cent. The t e c h n o l o g i c a l phase of the i n d u s t r y w i l l be discussed l a t e r . However, i n 1 8 7 8 , Germany became a leading.country i n beet • sugar production. In .1886. the t o t a l production was due p a r t l y 7 to the increased, demand f o r sugar. The increased sugar con-tent and reduced cost of production a l s o had. an i n f l u e n c e on t h i s increase i n production. Germany, as France had done, paid a bounty on export. Outside Europe there was ••- very l i t t l e p o s s i b i l i t y of developing a beet sugar i n d u s t r y . In A s i a , A f r i c a and South America general c o n d i t i o n s are u n s u i t a b l e , but a great amount of work was c a r r i e d on i n North America, and the United States became i n t e r e s t e d at an e a r l y stage. The f i r s t occasion was when--David C h i l d of Kassaclmsetts c a r r i e d out an experiment and e x t r a c t e d s i x per cent sugar- The United States was g r e a t l y Induced to develop the Industry and, consequently, a Committee on Agriculture, was appointed, to i n v e s t i g a t e the pos- . s i b i l i t i e s of the beet sugar i n d u s t r y . The Committee reported that "from a l l the i n f o r m a t i o n which the Committee hass been able to o b t a i n , they are induced to b e l i e v e that no country i n the world i s b e t t e r s u i t e d f o r the production of sugar beets than most parts of the United S t a t e s , whether we 'consider the 1 s o i l , the climate or- the people." Although v a r i o u s attempts to manufacture sugar f a i l e d , a permanent f a c t o r y was e s t a b l i s h e d In 1 8 7 0 at Alvarado. The United States paid a.bounty to en-courage the beet producers,gust as d i d France and Germany. The system and rates of bounty w i l l be treated l a t e r . However, 1 8 9 0 i s .the important date i n the commercial beet sugar prod-u c t i o n i n the United S t a t e s . This i s the date of the Sugar Bounty Act, passed. In -the United S t a t e s . As a r e s u l t there 1. . The Story of Sugar f Surface, G. T., page 115 8 occurred a great increase i n production. For example, 4 5 , 2 4 5 short tons were produced i n 1897 as compared w i t h 15,000 tons i n 1892 and 5 0 0 , 0 0 0 tons i n 1908 against 218,406 tons i n 1902. The t o t a l production by the year 1933 was 1 , 2 0 6 , 6 5 6 tons. In Great B r i t a i n the f i r s t sugar f a c t o r y was b u i l t i n 1912 at Cantley. In 1915, the B r i t i s h Beet-Sugar S o c i e t y came i n t o e x i s t e n c e . The production of sugar showed a great increase every year and the peak was reached f o r 1931. In t h i s year, 8,486-,000cwt. were produced. A f t e r t h i s date there i -sign' of decline i n production. Great B r i t a i n followed the same, p o l i c y of encouraging i t s home i n d u s t r y and passed the B r i t i s h Sugar Act i n 1925. To sum up, besides Great B r i t a i n , the United States and Canada the other beet sugar c o u n t r i e s are Germany, France, Czechoslovakia, Poland, I t a l y , Spain, Hungary, the Netherlands, Belgium and the TJ.S»S»R. • About twenty-three c o u n t r i e s i n Europe are orodueing beet sugar. The most important sugar producing c o u n t r i e s w i l l be discussed i n d e t a i l i n chapter X„ Competition ...Between Cane and Beet j^ugar Cane and beet sugar are both i d e n t i c a l i n t h e i r chemical s t r u c t u r e when r e f i n e d . But. as regards a g r i c u l t u r e they d i f f e r i n t h e i r requirements. Cane i s a t r o p i c a l commodity and r e q u i r e s a warm climate and heavy r a i n f a l l , while beet i s a temperate commodity and r e q u i r e s l e s s r a i n f a l l . In other words there i s no r i v a l r y between sugar beets and sugar canes Q / i n the matter of areas of c u l t i v a t i o n . The world map on page 10 shows the d i s t r i b u t i o n of both commodities, beets and canes. In the cane r e g i o n , the gr e a t e r part of the money invested i s used i n f a c t o r i e s and a very small amount f o r c u l t i v a t i o n . This means that overhead charges of manufactureC-sugar are higher. Therefore i t i s necessary to operate the f a c t o r i e s tip to t h e i r c a p a c i t i e s . F u rther the canes are bulky and c o s t l y to t r a n s p o r t . I t i s , f o r these reasons, ad-vantageous to have the f a c t o r i e s In the center of the cans-growing areas. The cane crop i n some cane sugar producing co u n t r i e s takes longer to mature than i n others. Cane crops occupy the f i e l d s four times as long as the beet crop. The cost of production of cane sugar i s much lower than that of beet sugar. On the other hand, beet sugar c u l t i v i t a t i o n has, throughout i t s h i s t o r y , been encouraged "by government a i d . . There i s very l i t t l e doubt that d i s c o n t i n u a t i o n ' o f government aid would cause the disappearance of beet "sugar. On account of i t s de pen dance on bounty and the, h i g h cost of production, the c o n d i t i o n s do not seem favourable f o r the expansion of the i n d u s t r y . However the continuance of the beet sugar i n -dustry i s ensured because of i t s value i n crop r o t a t i o n , that i s , because beet c u l t i v a t i o n helps to increase the s o i l f e r t -i l i t y which, keeps other a g r i c u l t u r a l commodities under s t a b l e Operation. I t can al&o be used as a valuable by-product to feed to l i v e s t o c k and i t provides employment. The chart on page 12 shows the world annual produc-t i o n of cane and beet sugar, from I 8 7 2 to 1934. Up to 1883 cane sugar remained a l i t t l e higher than beet sugar i n 11 production but a f t e r t h a t the beet sugar exceeded the cane sugar and i t remained high up to- 1901. In t h i s year beet sugar production- was almost twice as high as the cane sugar production. The p r i n c i p a l reason f o r the decrease i n the l a t t e r i s that the beet sugar producing c o u n t r i e s developed t h e i r Industry with government a i d and became strong competitors of the cane-sugar producing c o u n t r i e s . Beet-sugar producing co u n t r i e s expanded t h e i r production w i t h government encourage-ment and by "dumping" t h e i r sugar on f o r e i g n markets w i t h the a i d of export d u t i e s . Towards the end of the century, "the cane sugar i n d u s t r y of I n d i a was ruined and the West Indies were badly a f f e c t e d . In 1905, under the agreement of the Brussels Conference, a l l kinds of a i d were stopped, and•as a r e s u l t cane sugar production exceeded the beet sugar production. The production of cane sugar a l s o increased because of imp-roved v a r i e t i e s of cane, A f t e r 1913, both types of sugar moved i n opposite d i r e c t i o n s . From 1913 to, 1 9 2 0 i n a seven year period beet sugar p r o d u c t i o n - f e l l o n e - t h i r d of the cane and one-fourth - of the t o t a l world sugar production. This de-crease was due to the Great War. The reasons f o r i t w i l l be discussed l a t e r . Since 1920 the trend of both sugars has been upward and.somewhat p a r a l l e l . On the whole the t o t a l of world sugar- production increased and the production of -1931 shows • a decrease. The c o n d i t i o n s prevalent i n t h i s period w i l l be discussed i n a l a t e r chapter. In short, the t o t a l sugar pro-'" duction i s i n c r e a s i n g because of the f a c t that beet sugar i s recovering through having been a s s i s t e d by government measures 13 and cane sugar has al s o "benefited as a r e s u l t of the increase i n consumption, e s p e c i a l l y i n the United States and the United Kingdom. The consumption of the United States increased from 3,921,000 tons i n 1920 to 5,012,000 i n 1923, and f u r t h e r increased i n 1930 to 6,200,000:tons» The consumption of sugar i n the United Kingdom, increased from 1 , 5 2 1 , 8 2 1 tons i n 1921 to 2,004,839 tons i n 192 8 and remained about tlie same up to 1933, Both c o u n t r i e s consujne l i t t l e l e s s /bhan one-third of the world sugar production. 14 Chapter I I L i m i t i n g f a c t o r s In the nreceed'ing chanter the development of the sugar i n d u s t r y , with regard to both cane and beet sugar, has been discussed. The competition between the two and t h e i r r e l a t i v e importance has a l s o been d'ealt w i t h . In t h i s chapter the w r i t e r wishes to set f o r t h g e n e r a l l y the l i m i t i n g f a c t o r s of sugar cane c u l t l v i t a t i o n . The d i s c u s s i o n w i l l be l i m i t e d to c l i m a t e , • temperature, s o i l and l a b o u r . Sugar Cane  Climate The sugar cane i s na t i v e to t r o p i c a l regions and i t r e -quires an abundance of moisture and sunshine. I t s range extends towards the north up to 32° i n Spain and to the south to 37° i n Few Zealand, w i t h an average annual temperature of 7 5 ° to 80°. P. As concerns the water supply, cane grows suc-c e s s f u l l y w i t h i n a wide range, namely 40 to 100 inches annual r a i n f a l l . However, i n c o n s i d e r i n g the water supply, one must take Into account water l o s t through r u n - o f f , p e r c o l a t i o n , evaporation and t r a n s p i r a t i o n . The water required during the growing period i s greater than that of the. maturing p e r i o d . Excessive water i n the maturing period d i l u t e s the j u i c e and lowers the sucrose content on account of the 'reaction of r e v e r s i o n . As a whole an excessive supply of \TO.ter i s i n j u r -ious and favours the spread of diseases. On the other hand d e f i c i e n c y of water checks the growth and causes the leaves to 15 w i t h e r . But i t increases the .sucrose content. This demon-s t r a t e s that i t i s d e s i r a b l e to have a generous r a i n f a l l during the growing season, with i n t e r v a l s of c l e a r s k i e s a.nd hot sun-shine, but a. comparatively dry season f o r maturing and h a r v e s t -i n g . A.rainy season during the r i p e n i n g period lowers the sugar content and makes the c r y s t a l l i z i n g process d i f f i c u l t . The most favourable c o n d i t i o n s are those i n which there i s s u f f i c i e n t coolness to check the growth and increase the sugar concentration. During the most a c t i v e growing period the canes are very s e n s i t i v e to drought s and s h o r t , t h i n canes r e s u l t . Under these c o n d i t i o n s there Is a greater amount of f i b e r and l e s s j u i c e . More expense i s caused i n the e x t r a c t i o n process because more power Is required, f o r crushing such canes. In a d d i t i o n , drought, "by t r a n s p i r a t i o n decreases the q u a n t i t y of juic e and also lowers the q u a l i t y by causing a c i d i t y . There-fore the r e g i o n which i s s u i t e d to i r r i g a t i o n i s most d e s i r a b l e Another Important c l i m a t i c f a c t o r I s temperature. Both the temperature of the a i r and s o i l a f f e c t the growth. I t i s b e l i e v e d that growth i s a chemical r e a c t i o n and i s a phenomen-on of the l i v i n g organism^' Thus the minimum and maximum r e -quirements are l i m i t e d . Stubbs expressed that "very l i t t l e growth takes place In the cane below 60° to 70° 3P while i n j u r y does not occur t i l l the f r e e s i n g point i s reached and there i s a wide range of temperature". The ex pain s i on 1 o f sugar cane i s questionable i n the areas where f r o s t i s u s u a l . The growth i s checked by the f r o s t . A temperature of -1.5°C. a f f e c t s the growing point of the young p l a n t s ; -3° 0 . k i l l s the sprotits 16 and matured canes are a f f e c t e d by the severe f r o s t , that i s -6° 0 , The growth of the cane i s a l s o a f f e c t e d by cloudy days Clear and s h i n i n g days are necessary f o r cane production. V i o l e n t wind has a harmful e f f e c t , s i n c e , as the roots are not deep the wind blows the canes down. The wind also t w i s t s and breaks the s t a l k s and the r e s u l t i s fermentation at the broken j o i n t . This decreases the p u r i t y of the sugar and the canes are more s u s c e p t i b l e to d i s Furtliermore , v i o l e n t wind tears or destroys the leaves and r e t a r d s the growth. The area i n which hurricanes occur i s very unfavourable f o r the expan-si o n of sugar cane. S o i l In s e l e c t i n g a type of s o i l that i s favourable f o r cane c u l t i v a t i o n , one must make c a r e f u l observations. The optimum' c o n d i t i o n s of s o i l vary according to the v a r i e t y of cane , climate and l a b o i i r cost.' Neither heavy c l a y s o i l s nor loosd sandy s o i l s can be recommended f o r sugar cane production The he^vy c l a y s o i l shows poor a e r a t i o n and i s hard to work, while the sandy s o i l i s not only poor i n water-retentive power but a l s o , the r o o t i n g c o n d i t i o n s are not such as to enable the root to support the weight of the s t a l k . I n most of the t r o p -i c a l c o u n t r i e s where high temperatures.. &re followed by heavy r a i n , red s o i l i s more acceptable f o r cane c u l t i v a t i o n . "These s o i l s are s t i c k y and more mo i s t u r e - r e t e n t i v e when wet, yet they are porous and w e l l - d r a i n e d and therefore easy to work' even a few hours a f t e r r a i n . This type of s o i l i s more 17 s u i t a b l e f o r sugar cane growing. However, such s o i l s are ge»* " e r a l l y found to he d e f i c i e n t In organic compounds, because l e a c h i n g , due to heavy r a i n s , re faults i n a low lime content and exhausts the phosphoric a c i d , a l k a l i s en<? n i t r o g e n . The use of commercial f e r t i l i z e r t h e r e f o r e 9eq& %%Tse"h4;ia-iojrto S o ^ w t h o r i t i e s claim that b l a c k s o i l w i t h c l a y s u b - s o i l i s p r e f e r -able i f i t i s c u l t i v a t e d p r o p e r l y . F e r t i l e loam, however, i s best adapted to the needs of the crop. The loam wi t h r i c h humus or decayed vegetable matter derived from the a l l u v i a l deposits and from the decomposition of v o l c a n i c , c o r a l or c r y s t a l i n e rock i s more productive* The decayed vegetable" supplies an abundance of nitrogenous plant food which i s ess-i n t i a l f o r the growth of the crop. A l l u v i a l s o i l contains a l l the necessary plant foods,, i s comparatively easy to work and r e t a i n s I t s p r o d u c t i v i t y f o r a long p e r i o d . Lab our The sugar Industry demands heavier labour than any other a g r i c u l t u r a l Industry. I t s requirements are not uniform i n a l l countries and not f o r the whole sugar season. I t v a r i e s too, i n kind,, according to d i f f e r e n t c o u n t r i e s . In many co u n t r i e s such as the United S t a t e s , where the rate of wages i s higher than i n Java, the use of mechanical I '- — labour Is more acceptable than manual labou r . Mechanical labour, a l s o , In count r i e s such as Haw-#iii and N a t a l , where the population i s inadequate to meet the demand, i s destined to replace manual labou r . The demand f o r /labour i n newly devel-18 oped: lands i s l e s s than that f o r the developed land becau.se weeds do not grow e a s i l y i n the former and thus very l i t t l e work i s done a f t e r the p l a n t i n g . Besides t h i s , there i s great v a r i a t i o n i n the amount of labour between the p r i m i t i v e type of country and modern types of country* The amount of labour again v a r i e s according t o the v a r i e t y of the cane, f u r t h e r -more, the p r i m i t i v e and small-holding.-1Qountries require more labour, u s u a l l y manual, while l a r g e scale operations require l e s s labour, and steam ploughs and t r a c t o r s ' are used» In c o n s i d e r i n g the whole sugar season, one may d i v i d e the labour requirements i n t o three d i s t i n c t periods; that i s the time of p l a n t i n g and f i e IS. operations; next the period of time from p l a n t i n g u n t i l m a t u r i t y and f i n a l l y the time of h a r v e s t i n g . Many c o u n t r i e s , f o r instance I n d i a and Cuba, con-s i d e r t h a t i t i s e s s e n t i a l to have extensive ploughing and harrowing before the p l a n t i n g i f the output i s to be s a t i s -f a c t o r y . In a d d i t i o n , there i s a h i g h labour requirement during the p e r i o d of p l a n t i n g . At t h i s time, the cane pieces have to be placed i n a hole or at the bottom of a furrow, u s u a l l y by hand. A f t e r the p l a n t i n g , .weeds grow l u x u r i a n t l y and weeding i s necessary. Other p r i n c i p l e tasks such as c u l -t i v a t i o n and hoeing between the cane rows are done e x c l u s i v e l y by-'manual labour. Hoy^'ever, i n many c o u n t r i e s , experiments with the use of machinery were c a r r i e d out. ' s u c c e s s f u l l y . The use of the g y r o t i l l e , combined with cross ploughing and harrowing gives- s a t i s f a c t o r y r e s u l t s . Labour Is used very i n t e n s i v e l y i n Java because a large amount of lab out? Is a v a i l a b l e and i s 19 u s u a l l y cheaper. There i s a great demand f o r labour during the h a r v e s t -ing p e r i o d . This Is mainly due to two reasons. F i r s t , i t i s necessary f o r the economical operation of a m i l l , to keep .the output close to the c a p a c i t y of the m i l l , to keep t h i s con-d i t i o n many large m i l l s absorb n e a r l y 7 , 0 0 0 .tons of cane d a i l y and one man cuts from 2:k to 3 tons d a i l y * This could be explained more c l e a r l y by reference to a statement of Dr. Robertson concerning 'J-a largevAmerican company owning two Cuban c e n t r a l s with a combined out pit t i n the season concerned of 1 6 0 , 0 0 0 metric tons of rax? sugar. The h a r v e s t i n g Involved the work of 12 rQQQ.jm.en_in the f i e l d f o r a hundred and f i f t y days, 9,.00jl..iC^_£has^ an'/ a d d i t i o n a l 1,300' men were'required f o r work i n the f a c t o r i e s r on the r a i l w a y s and f o r administrate Ion and other purposes."^ He f u r t h e r stated as a r e s u l t of the I n v e s t i g a t i o n of 2 5 p l a n t s In Cuba, that " h a r v e s t i n g costs made up 48 per cent of the t o t a l , c u l t i v a t i o n 16 per cent and p l a n t i n g 8 per cent" . The Falkener harvestor was experimented w i t h i n Florida.. This has an output of work equal to the work of 8 0 men. The experiment was s u c c e s s f u l and t h i s w i l l have Important r e s u l t s where there Is a s c a r c i t y of l a b o u r , f o r example BawMl-and N a t a l . The c a p a c i t y of the h a r v e s t e r Is such that I t cuts the cane at a rate of twenty tons an-.' hour per machine.-Twisted: canes do not create any d i f f i c u l t y , and the machine can be operated on wet ground. This i s outstanding, In that c u t t i n g , thrashing and l o a d i n g are a l l c a r r i e d on i n a s i n pie. 1 & 2 . ftob§rtson,C.J.., $0rid Sugar Production and Consumption,p.13 20 operation. However, the operation of machinery i s found to be very d i f f i c u . l t om rocky -ground.. In s p i t e of t h i s d i f f i c u l t y machinery i s h . eing adopted more e x t e n s i v e l y . 21 Chapter 111 There are 2f5 cane-sugar producing c o u n t r i e s i n the world. I t i s not i n the scope of t h i s t h e s i s to deal w i t h t h e m ' i n d i v i d u a l l y and i n f u l l . However, I s h a l l discuss the main producing c o u n t r i e s such as I n d i a , Cuba and Java separ-a t e l y , and the others w i l l he placed i n t o two groups according t o - t h e i r p o l i t i c a l a f f i l i a t i o n s w ith f i r s t , the United K i n g -dom, and second, the United S t a t e s . F i n a l l y , there are some other l e s s important c o u n t r i e s which are producing cane-sugar and which w i l l he considered i n one group. The t o t a l production of the i n d i v i d u a l c o u n t r i e s w i l l he shown i n the t a b l e s . (see appendix) I n d i a H i s t o r y I t has been mentioned i n the f i r s t chapter of t h i s t h e s i s that sugar cane o r i g i n a t e d i n I n d i a . I n d i a was a sugar exporting country up to the middle of the 19th century. The bulk of her sugar was exported to Europe. Her export decreased with the discovery of beet sugar, e s p e c i a l l y a f t e r 1811. About t h a t time the s n i r i t of "Nationalism"' began to Influence European l i f e . France was the f i r s t to adopt t h i s new a t t i t u d e . A l i t t l e l a t e r Germany followed her example and then n a t i o n a l f e e l i n g s spread g r a d u a l l y a l l over Europe. As a r e s u l t , n e a r l y a l l European c o u n t r i e s e s t a b l i s h e d t h e i r beet sugar i n d u s t r y with st a t e aids such, as bounties, s u b s i d i e s , drawbacks and the c s r t e l system. "Bounty fed"' sugar was the common name used at 22 that time f o r European sugar through oil t the world. These measures stimulated beet sugar production and the supply ex-ceeded the demand. As a r e s u l t , a surplus began to accumulate In order to dispose of t h e i r surpluses the governments of these c o u n t r i e s r a i s e d the p r i c e of sugar at home and s o l d abroad below the cost of production. F i n a l l y they r a t i o n a l -ised the i n d u s t r i e s by paying an "export bounty". In s h o r t , the s i t u a t i o n was such that the beet sugar producing c o u n t r i e s supplied cheap sugar to the f o r e i g n consumers at the expense of t h e i r own taxpayers. The pr i c e of sugar was lowered to such an extent that Indian cane sugar producers were r u i n e d . Indian sugar was thus d r i v e n out of the world market. Ghosh, i n h i s book "Sugar In I n d i a 1 1 , commenting on these various measures, sta t e d that they ha^e "operated most against Indian sugar.. They have reduced I n d i a from i t s l e a d i n g p o s i t i o n " . * From' I 8 7 O up to the present, I n d i a has been importing f o r e i g n beet and cane sugar. In the l a s t quarter of the 19th century, I n d i a remained a free trade country. During that time, the German and A u s t r i a n sugar was mainly imported i n t o I n d i a . In the 20th century up to 1913 the bulk of the West Indies sugar was exported to I n d i a . During and a f t e r the war, the Javan sugar took the Indian market and r e t a i n e d I t s pos-i t i o n t i l l 1930. A f t e r t h i s the import from Java f e l l sharply The f o l l o w i n g t a b l e shows the annual Import of sugar i n t o I n d i a . * Ghosh, "Sugar In I n d i a r t »,page II5 23 Tear Tons of sugar 1922 728 , 6 6 6 1923 504,030 1924- 4 7 6 , 0 3 5 1 9 2 5 7 2 9 , 0 8 9 1 92 6 8 8 6 , 7 7 3 1927 • 7 8 4 , 4 1 5 1 9 2 8 8 5 5 , 2 7 8 192 9 1,014,720 1930 1,161,368 1931 1,128 ,887 1932 701,740 1933 369 , 4 5 0 From the ebove .table we n o t i c e that a f t e r 1931 the Import of sugsr i n t o I n d i a f e l l s h arply. This f a l l Is due to 9. number of reasons. F i r s t , I should. Say, to the p r o t e c t i v e p o l i c y of the Indian government. I s a r e s u l t of t h i s the dom-e s t i c white sugar production was increased. Secondly, the import of sugar decreased because of world wide depression, During the depression, the p r i c e s of a g r i c u l t u r a l commodities f e l l to a low l e v e l . The purchasing p r i c e of the farmers was lower and t h e r e f o r e , the consumption on the whole dropped. T h i r d l y , the production of "gur" (raw sugar used i n India) Increased tremendously. The production of gur i n 1930-31 was *. Sugar Reference Boole and D i r e c t o r y page 7 24 2 , 7 5 2 , 0 0 0 tons a n d i - t increased'to 3,970,000 tons i n 1951-32. In 1932-33 i t increased f u r t h e r to 4,684,000 tons. 2• L i m i t i n g F a c t o r s (a) Climate I n d i a i s a l a r g e country and t h e r e f o r e the c l i m a t e i s not uniform throughout. Although I n d i a i s c a l l e d a t r o p i c a l country, northern I n d i a i s s u b t r o p i c a l . C l i m a t i c c o n d i t i o n s make I t p o s s i b l e t o produce beet sugar i n northern I n d i a but i t cannot be produced i n southern I n d i a . The sugar canes are c u l t i v a t e d between 8° and 54° north l a t i t u d e . U s u a l l y canes are produced throughout I n d i a , but there are s i x p r i n c i p a l cane sugar producing p r o v i n c e s , namely: the United-Province, Punjab, Bihar and O r i s a , Bengal, Madras and Bombay. About nine-tenths of the cane sugar i s produced i n the f i r s t two provinces* There are two r a i n y seasons "in I n d i a . F i r s t there i s the south-west, monsoon from June to September w i t h heavy r a i n i n June and J u l y ; secondly there i s the north-east monsoon wi t h r a i n during October and November. In the north the time extends to March. The dry season i s longer than the wet and i r r i g a t i o n i s th e r e f o r e necessary f o r the c u l t i v a t i o n of cane. We a l s o n o t i c e that the annual p r e c i p i t a t i o n v a r i e s from prov-ince to province and even, from d i s t r i c t to d i s t r i c t . The average annual r a i n f a l l i n Madras i s over 100 inches; Bengal ranges from j?5 to 100 inches; Bombay from £0 to 52 inches-B i h a r and O r i s a from 42 to 5 J? inches; the United Province from 27 to 5 3 inches and the Punjab from 27 to 40 inches and 25 i n many d i s t r i c t s even l e s s than 5 inches. The two l a s t provinces mentioned show a d e f i c i e n c y i n annual r a i n f a l l , but thanks to the canal p r o j e c t the d i f f i c u l t y of an i n s u f f i c i e n t water supply has been overcome. The Punjab has one of the most outstanding canal systems i n the world. In regard to temperature we f i n d t h a t the marginal temperature i s reached i n the Punjab during December and January. In these months the temperature goes down to 32° F. As a r e s u l t , f r o s t often causes damage. Dry, hot winds blow from the middle of A p r i l . The growing season i s very short as compared with that i n other c o u n t r i e s . Oanes are planted from December to A p r i l and harvested from the l a t t e r part of November to A p r i l . S o i l I t has been demonstrated by many a u t h o r i t i e s t h a t I n d i a has a d i v e r s i f i e d s o i l . In. Decoan, canes are grown u s u a l l y on red and black c o t t o n s o i l . In the north where 9Q per cent of the crop i s grown the s o i l i s t h a t of the "Gangetic P l a i n " . The w r i t e r , f o r h i s undergraduate t h e s i s c l a s s i f i e d 2 34 s o i l samples of the Punjab s o i l which were analyzed by l a d n e r . He concluded that "the Punjab has a great range of i t s s o i l s , that i s c l a y , c l a y loam, loam, s i l t , s i l t loam, sand, coarse and f i n e sand. As concerns chemical con-t e n t , the s o i l of the Punjab Is a p p r e c i a b l y low i n nitrogen and h i g h i n potashi I n the north-west dry area calcium and phosphorous V a r i e s according t o the l o c a l i t y " »^ 1. Bans, Raghbir Singh, "Undergraduate Thesis".Expansion of H o r t i c u l t u r e i n the Punjab, n .58 26 and the s o i l i s mostly a l f e l i n e * According to Ghosh, most of the s o i l where the canes are c u l t i v a t e d i s a l l u v i a l i n o r i g i n , (c) Labour Since the s i z e of the population as compared with that of other sugar-producing c o u n t r i e s i s a well-known f a c t , I do not consider that there i s much to discuss w i t h regard to the question of la b o u r . I n I n d i a , labour i s g e n e r a l l y e f f i c i e n t and p l e n t i f u l . Wages are low, even l e s s than i n Java. In most of-the cane-producing provinces very l i t t l e cash i s paid and the work i s g e n e r a l l y c a r r i e d on by members of the f a m i l y or by neighbours h i r e d to do the work. Economic -Essentials I n the e a r l y part of t h i s chapter i t was pointed out that the production of sugar i n I n d i a i s i n c r e a s i n g r a p i d l y , and that the import of f o r e i g n sugar i n t o I n d i a shows a sharp decrease. The reasons f o r t h i s s i t u a t i o n were al s o mentioned. The government p r o t e c t i v e measures would seem to be a p r i n c i p a l reason f o r t h i s change. Before e x p l a i n i n g the present pro-t e c t i v e p o l i c y , l e t us examine the past h i s t o r y of t=he sugar i n d u s t r y to see whether any p r o t e c t i v e measures had been en-acted p r e v i o u s l y . I n my survey up to 1950 I found no such aids were provided by the government to advance the Indian sugar Industry. I t might w e l l be described as a "neglected i n d u s t r y " . Ghosh s t a t e d that "The Government of I n d i a has done nothing to h e l p the sugar i n d u s t r y of t h i s country com-pared to what the European Governments were doing before the Great War to help the beet sugar i n d u s t r y of t h e i r countries."'*" 1 . Ghosh, Sugar i n India,, p. 14. 27 Up to 1899 the Indian market remained f r e e of duty. The Eur-opean co u n t r i e s reaped the b e n e f i t . Around that time, probab-l y a l i t t l e e a r l i e r , the competition of European beet sugar had not only r u i n e d the Indian sugar producers but a l s o a f f e c -ted the West Indies sugar i n d u s t r y . In 1899 on the request of the Secretary f o r C o l o n i e s , the Secretary of State f o r I n d i a forced the Government of I n d i a to impose a c o u n t e r v a i l i n g duty on "bounty f e d " sugar. This was the f i r s t time i n the h i s t o r y of the Indian sugar Industry that "bounty fed" sugar was de-barred from the market by the Imposition of a duty. This was not done f o r the b e n e f i t of the Indian producers* the motive was to b e n e f i t the M a u r i t i u s producers at the expense of the Indian consumers. From the correspondence between the Secretary of State f o r I n d i a and the V i c e r o y of I n d i a , one has no h e s i t -a t i o n i n accepting the statement made i n the "Economist", London 1899, page 681. I t i s s t a t e d there that "the whole a f f a i r seems to us a device to b e n e f i t Maurtius p l a n t e r s at the expense of the Indian consumers of r e f i n e d sugar against whom the p r i c e s are sought to be raised*.....and that we h o l d , that i t i s a mean device, f o r the c o l o n i a l o f f i c e , i f i t des-i r e s to extend to M a u r i t i u s any such help should do so at our own c o s t , and not seek by underhand means to throw i t upon our Indian s u b j e c t s , who have had no voice i n t h i s matter. 11 • The next measure was when the Government of I n d i a imposed an import duty i n 1 9 1 6 . The main purpose of t h i s was to r a i s e the revenue, f o r , to quote Ghosh, "No e f f o r t to up-l i f t the down-trodden sugar manufacturers of I n d i a was ever 28 made by the S t a t e " . 1 F i n a l l y we have the present p r o t e c t i v e measure under the Sugar P r o t e c t i o n Act of 1932. Itsfmotive i s to encourage the Indian sugar i n d u s t r y . The d e t a i l e d rates of the p r o t e c t i v e duty w i l l be discussed l a t e r . In b r i e f , the import duty i n 1932 was Hs. 9 - I - 0 * per cwt. As a r e s u l t the p r i c e s of sugar went up as f a r as the world p r i c e plus import duty. This high o r i c e a t t r a c t e d manufacturing companies and thus the sugar i n d u s t r y was expanded g r e a t l y . The production of sugar increased very r a p i d l y . Undoubtedly, the p o s i t i o n was r e a l i z e d by the f i n a n c i a l member and In h i s budget speech he announced that "On the one hand i t does not appear that i n a l l cases the a c t u a l grower of sugar cane i s g e t t i n g f u l l ad-vantage which he was intended to receive from our p o l i c y . On the other hand i n many cases l a r g e p r o f i t s are being made by sugar manufacturing companies, and the a t t r a c t i o n of these p r o f i t s i s a r e a l danger of over production on a scale which may lead to very serious r e a c t i o n both on the manufacturing i n d u s t r y and on the cane sugar growers who r e l y on i t . " ^ The Government, t h e r e f o r e , imposed an excise diity of Rs. I - 5 - 0 per cwt. on manufactured sugar. The above stated p o l i c y i s one that i s d i r e c t i n g I n d i a towards s e l f - s u f f i c i e n c y . This p o l i c y had been accepted ten years p r e v i o u s l y by the United States and the -European beet sugar producing c o u n t r i e s and seven years e a r l i e r by the United Kingdom. I n two years a f t e r 1931, the production of 1. Ghosh, Sugar i n I n d i a , page 2 8 5 . 2. Ind. Sugar J o u r n a l , May 1935, p. 181. *. 36<3r = 1 rupee 29 I n d i a increased 70 per cent and at the same time i t s imports decreased 68 per cent. Such r a p i d change u s u a l l y brings up the question, I s I n d i a on the r i g h t t r a c k ? Sooner or l a t e r w i l l she hare to face the problem of over-production? In ans-wering the f i r s t question i t seems to me that I n d i a i s on the r i g h t path* I f these measures had been taken years ago the Indian farmer would have b e n e f i t e d and would have been pros-perous today. I should l i k e to give some f i g u r e s * t h a t show how much money I n d i a sent out of the country f o r the sugar imported. These are s i g n i f i c a n t i n view of the f a c t that formerly the balance of trade had been favourable to I n d i a . Year * 1913-14 §51ir m i l l i o n 1926-27 ' 166 l / 3 m i l l i o n 1927-28 $52 m i l l i o n I 9 2 8 - 2 9 §57 m i l l i o n 192.9-30. l 5 2 t m i l l i o n 19 3D-31 $38 m i l l i o n 1931-32 $22 m i l l i o n W r i t i n g on. the developement of the i n d u s t r y Ghosh s t a t e s " i n f a c t throughout the l a s t century I n d i a might have acquired u n t o l d wealth by the export of sugar i f her i n d u s t r y had been developed 1 1.^ *Sugar i n I n d i a ( p a g e 28^8 1 . Ghosh , ! Sugar i n India, page 285 30 Turning to the second question, we f i n d that the pres-ent c o n d i t i o n s are favourable f o r the increase of production. The Government organized the Imperial Council of A g r i c u l t u r a l Research whieh represents the whole of I n d i a and covers almost every phase of a g r i c u l t u r e i n c l u d i n g A g r i c u l t u r a l Chemistry, .Agronomyi Bathalogy, Entomology Physiology and A g r i c u l t u r a l Economics. Furthermore, experimental s t a t i o n s have been e s t -a b l i s h e d i n each province to develop new cane v a r i e t i e s and improve the technology of c u l t i v a t i o n * The outstanding breed-ing s t a t i o n i s Goimbatore* P.O.J* and Co., v a r i e t i e s have been imported i n t o I n d i a and the breeding work i s c a r r i e d on at the Coimbatore experimental S t a t i o n . The improved v a r i e t i e s are sent from t h i s s t a t i o n to a l l the provinces. As a r e s u l t the sugar y i e l d has increased two to three tons per acre and i s s t i l l i n c r e a s i n g . I n a d d i t i o n , recovery of sugar i n f a c -t o r i e s increased from 6 . 8 5 to 10.43 per cent. Aside from these s c i e n t i f i c improvements, I n d i a i s blessed w i t h cheap abundant and e f f i c i e n t labour and p l e n t i f u l n a t u r a l resources. A l l these f a c t o r s w i l l combine to b r i n g about a great increase i n production. Therefore, there a r i s e the dangerous clouds that the F i n a n c i a l member mentioned i n . h i s speech on the "danger of over-production". In .order to check t h i s danger the Government of I n d i a imposed an excise duty of Rs. I - 5 - 0 per cwt. on man-ufact u r e d sugar. Mr. S r i s a s t v a v e r i f i e d t h i s i n the I n t e r -n a t i o n a l Sugar J o u r n a l . He s t a t e d that "excise duty made a wholesome check on modern f a c t o r i e s manufacturing sugar from 31 cane, from excessive expansion."-5-But I am convinced that I n d i a should not worry because of over-production* She has a greater domestic market than any other sugar producing country, p a r t i c u l a r l y Java and a l s o Cuba, the West Indies and Hawaii. I f I am not o p t i m i s t i c and i f the consumption of I n d i a were not to be discouraged she could consume twice as much as she does today. Arthur Moore w r i t e s i n "The Fortnight',', " I n d i a does not consume n e a r l y enough. The world appears t o be s u f f e r i n g from over-production and t o be longing f o r new markets, f r e s h consumers, -ti-ere i n I n d i a i s a vast p o t e n t i a l market, a hungry army of consumers w a i t i n g to e n r i c h those who w i l l supply t h e i r needs i f only they can he endorsed with more purchasing power i n r e t u r n f o r t h e i r labour i n the f i e l d . " The increase of one kilogramme of consumption per cap-i t a increases the t o t a l production by 350,000 tons. The con-sumption per head i n 1924 was 12.5 kilogrammes and t o t a l eon-sumption was 4 ,000,000 tons. In 1928 the consumption per head increased to 13.3 kilogrammes and the t o t a l consumption increased to 4 ,350,000 tons. The consumption per c a p i t a i n I n d i a i s about one-fourth of that of iaost of the European and American c o u n t r i e s . This i s not a f i t t i n g place to set f o r t h any scheme which could c o n t r o l a l l the f a c t o r s r e l a t i v e to the increase of consumption. However, I should l i k e to point out that Import duty i s up to a c e r t a i n point responsible f o r : 1. I n t . Sugar J o u r n a l , Oetober 1934. 32 discouraging the f u r t h e r increase i n consumption. I t does a f f e c t the sugar consumption, even though sugar i s a l e s s e l a s -t i c commodity. Pro f e s s o r Thomas w r i t i n g on " I n d i a i n the World Depression", i n Economic J o u r n a l , s t a t e d that "the con-sumption of white sugar i s even more discouraging. The annual average per c a p i t a consumption of sugar was 7 ,7 l b s . during the f i v e years ending 1930, but i t has f a l l e n since and was 5 . 8 l b s * i n 1952-33 (the year i n which the import duty was r a i s e d ) , a f a l l of 24 per cent." I t might be advantageous i f the government of I n d i a were to consider the c o n t r o l of the i n d u s t r y by l e g i s l a t i o n . I t might, f o r i n s t a n c e , as has been done i n A u s t r a l i a , p r o h i b i t f o r e i g n sugar from coming.into the country while at the same time l i m i t i n g the production to the requirements of the t o t a l consumption plus an emergency surplus. Expansion could be f u r t h e r e d , i n the opinion of the w r i t e r of t h i s t h e s i s * by the development of the.by-product i n d u s t r i e s to provide molasses f o r use i n a l c o h o l , f u e l , f e r t -i l i z e r e t c . At present molasses i s used simply f o r the manuf-acture of tobacco. The use of baggage f o r a r t i f i c i a l s i l k , paper e t c . could be encouraged. The question of employment i s m a t e r i a l l y i n f l u e n c e d by the sugar i n d u s t r y , f o r apart from the number of men employed i n the i n d u s t r y i t s e l f , s u b s i d i a r y i n d u s t r i e s such as the manufacturing of machinery and jute f o r bags, absorb a c e r t a i n amount of labour* 35 Chapter 17  Cuba H i s t o r y Sugar cane was introduced i n t o Cuba soon a f t e r i t s discovery by Columbus i n the e a r l y part of the s i x t e e n t h cen-t u r y . . The year 1772 marks the beginning of r e a l progress i n the development of the i n d u s t r y . From then on, the Spaniards were f r e e to produce sugar, and the production increased i n two decades to about three times that of I76O. In 1790, about 14,163 tons of sugar were exported from Cuba. The development of the sxigar trade i n Cuba was due to the r e v o l u t i o n of San Domingo. r-Qae export of sugar i n the year 1802 increased to 40,800 tons. However, the i n d u s t r y s t i l l remained f o r another t h i r t y years, on a small s c a l e , but no s c a r c i t y of labour was exper-ienced* I n 1834, the O-ahan Government e s t a b l i s h e d the i n d u s t r y upon the foundation of slave labour. I s a r e s u l t , a great number of f a c t o r i e s were set up i n Cuba. The work i n these f a c t o r i e s was c a r r i e d on almost e n t i r e l y by manual labour and very l i t t l e progress was made i n the adaptation of mechanical equipment. Nevertheless the output f o r the year 1870 increased to 610,300 tons. The year 1875 shows a change i n p o l i t i c a l thought. At t h i s time, a movement to a b o l i s h s l a v e r y was s t a r t e d . In the year 1880, a law was passed that a l l s l a v e s born a f t e r I872 were t o be declared f r e e . Thus labour became scarce and 34 expensive. About t h i s time the i n d u s t r y was unstable because of the outcome of the war with Spain. This u n s t a b i l i t y was a l s o due to the keen competition of beet sugar. Beet sugar was produced under various measures of p r o t e c t i o n provided by the d i f f e r e n t s t a t e s . These governments thus enabled the producers to market t h e i r sugar below the marginal c o s t . In the year 1894, the production of sugar Increased to one m i l l i o n tons. The r e v o l u t i o n of 1896 against Spain and the Spanish American.War caused the i n d u s t r y to decrease. The production diminished to 212,221 tons i n the next year and i t remained at a low ebb u n t i l 1900, a year of great drought. From 1901, the production increased g r a d u a l l y every year; i n 1903 the Industry regained i t s former p o s i t i o n . The t o t a l production f o r the year 1907 was 1,444,310 tons, and f o r I 9 1 2 i t was 1 , 8 9 5 , 8 9 4 tons. With the exception of I 9 0 8 , another year of great drought, thee p r e v a i l i n g trend of production continued upward. In 1913, the production was 2 , 4 2 8 , 5 5 7 tons, that i s , i t increased about a h a l f m i l l i o n tons from the previous year. During the Great War, beet sugar production dropped to one t h i r d of the 1915-14 l e v e l , and p r i c e s of sugar went up. This made i t p o s s i b l e f o r the Cuban sugar producers to increase t h e i r output along w i t h world demand. Hence, the production i n 1917 was 3 , 0 1 9 , 9 3 6 tons. Furthermore, the great increase i n the United States consumption and t h e i r 20 per cent preference i n import duty on ^uban sugar gave the i n d u s t r y a stimulus. In a d d i t i o n the p r i c e of sugar remained h i g h during t h i s p e r i o d . A l l these 55 ' f a c t o r s l e d to a great extension i n the Cuban sugar i n d u s t r y . As a r e s u l t , the production i n 1922 was 5 , 9 6 6 , 1 8 9 tons and the year I 9 2 5 shows the i n d u s t r y at a high l e v e l , when the produc-t i o n reached f i v e m i l l i o n tons. On the other hand, the Eur-opean c o u n t r i e s hastened to b r i n g back beet sugar production to.the pre-war l e v e l . The high p r i c e of sugar checked the f u r t h e r Increase i n consumption. Consumption, t h e r e f o r e , lagged behind production. The v i s i b l e s u r p l u s , consequently, began to accumulate. In the one year 1925 , stocks on hand i n -creased two m i l l i o n tons, and the t o t a l stock was seven m i l l i o n tons. The crop of 1926 added another m i l l i o n tons. At t h i s p o i n t the Cuban Government adopted a p o l i c y of r e s t r i c t i o n . I t cut down i t s production about a m i l l i o n tons, and p r o h i b i t e d the f u r t h e r extension of c u l t i v a t i o n of v i r g i n l a n d / Besides t h i s , the Cuban Government t r i e d to induce the other c o u n t r i e s to l i m i t t h e i r output. But, as the p r i c e s of sugar d i d not show f u r t h e r v i o l e n t decrease, Java, the producing country next i n importance refused t o p a r t i c i p a t e and increased her pro-duction i n 1927 about two m i l l i o n tons and three m i l l i o n tons i n 1929. Consequently, the Cuban Government ended the r e s t -r i c t i o n and her production of sugar i n I929 again increased to 5 ,230,-OOOtons which was 1,125 ,000 tons more than i n 1928. The t o t a l accumulated su r p l u s stock i n the year 192 9-30 was 10,566,000 tons. The average p r i c e , c a n d f . , Hew-York dropped below !•§ cents per l b * i n 1950-31 and even lower i n 1931-32. The Cuban Government was therefore forced t o reduce i t s pro-duction. Consequently, the production of 1932-33 was cut down to 1 ,995,079 tons. . 3b L i m i t i n g F actors (a) Climate Cuba i s a t r o p i c a l country and l i e s north of the equat-or between 20 u and 23°. The annual r a i n f a l l ranges from 4[5 to 6Of inches. The climate of Cuba i s favourable f o r sugar cane c u l t i v a t i o n according to Dr. Robertson, who st a t e d that "Cuba i s very w e l l s u i t e d f o r cane sugar production. There i s a w e l l -marked a l t e r n a t i o n of wet and dry seasons, the wet season l a s t -i n g from May to November, a per i o d when the .North-east trades are strong, and being c h a r a c t e r i z e d by a h i g h degree of r e l i a b -i l i t y of r a i n f a l l and by short showers and cl o u d l e s s s k i e s " . 1 The annual temperature i s 7 7 ° i?* Dr* Maxwell s t a t e d that "Cuba i s t r o p i c a l and d i s t i n c t l y i n s u l a r i n c h a r a c t e r i s t i c s of hum-i d i t y , e q u a b i l i t y and hig h mean termperature. According to Crawley there has never been one year over a period of f o r t y -nine with three months drought, and during the f o r t y - n i n e years more than h a l f the r a i n has f a l l e n i n l e s s than four months."^ The sugar cane crop, t h e r e f o r e , I s e n t i r e l y produced under n a t u r a l c o n d i t i o n s of r a i n f a l l . Cuba, however, i n sp i t e of these c l i m a t i c advantages, cannot avoid the p r i n c i p a l d isad-vantage of l y i n g i n a hurricane b e l t * The hurricanes occur between August and October and cause great damage to the sugar cane crop. Almost two d i s t i n c t seasons of p l a n t i n g sugar cane i n Gxiba are recognized. The spr i n g p l a n t i n g season i s one, which l a s t s from A p r i l to June. This season i s important i n 37 p l a n t i n g . This continues from September to November. The greater part of the crop i s planted i n the F a l l p l a n t i n g season. The crop matures i n Cuba i n twelve to f i f t e e n months. The canes planted i n the F a l l p l a n t i n g period are harvested a f t e r f i f t e e n months, (b) S o i l Many a u t h o r i t i e s , t o my knowledge, cl a i m that Cuba has the best s o i l c o n d i t i o n s f o r cane sugar production. In des-c r i b i n g i t , I cannot improve on the statement of Dr. Robertson that "there are extensive areas of good s o i l , the most Impor-tant being the Matanzas c l a y s ; these are r e d ' s o i l s , deep and uniform.throughout, w e l l drained and e a s i l y worked; though s t i c k y when wet they dry i n a few hours a f t e r the r a i n , so that p r e p a r a t i o n csn be c a r r i e d out i n the wet season."! I t may, I t h i n k , be worth while to quote li e . Maxwell that "the e x t r a o r d i n a r y f e r t i l i t y of the n a t u r a l cane land i n that i s l a n d i s a w e l l known f a c t " and."Cane once planted appears, as i t were, to t h r i v e l i k e a weed; i t s roots continue to y i e l d annual, crops f o r a decade."£> For f u r t h e r a p p r e c i a t i o n of the char-a c t e r of Cuban s o i l , l e t us r e f e r to the Economist, London, which, on February 4, 1928, w r i t i n g on "Sugar i n Cuba" sta t e d "With her n a t u r a l advantage of f e r t i l e and comparatively new s o i l , c l imate and p o s i t i o n , Cuba could put most other producers out of the market." I t i s mainly due to pronounced f e r t i l i t y that i n some places cane has been growing f o r over one,hundred I Robertson, C. J., World Sugar Production and Consumption^. 26. I?. Maxwell, Eco. •Ispect; of 0 &ne Sugar Ereduction, page 13 38 years without the use of any f e r t i l i z e r . I n reference to the b l a c k s o i l I would l i k e to again quote Dr* Robertson. He s a i d that "of the b l a c k s o i l s , the '•Samaguey c l a y s are best, being §uit@,bH><be f o r many v a r i e t i e s and g i v i n g good crops i n both wet and dry y e a r s . " 1 The A l t o Pedro c l a y i s another type of s o i l . $t comes next to Matanzas c l a y s i n u t i l i t y . According to Rob-er t s o n , " i t i s shallow, with an impervious and s a l t y lower l a y e r and deep ploughing i s not a d v i s a b l e . " 2 (c) Labour I t has already been mentioned that the development of the Cuban sugar i n d u s t r y was based upon slave trade. Undoubt-ed l y , the a b o l i t i o n of s l a v e r y was responsible f o r a s c a r c i t y of labour i n the i n d u s t r y . The t o t a l area of Cuba i s 44,000 square m i l e s and the t o t a l p opulation Is. 3,000,000 i n h a b i t a n t s ; i n other words, 71 per square m i l e . One f i n d s that 58 per cent of the population are owners of farms, 32 per cent are labourers and 9 per cent are t r a d e r s . On comparing the population of Cuba wi t h c o u n t r i e s such as Java and I n d i a , we at once r e a l i z e the d i f f i c u l t y of the Cuban sugar cane producers. However, the development of "Oolono" farms had solved the problem to a c e r t a i n degree* At present, the Cuban government i s encour-a g i n g the use of labour saving machinery and i s modernizing the Cuban sugar i n d u s t r y . The s o i l of Cuba i s f l a t and adapt-able to the use of machinery. The wage rat e i n Cuba i s r a t h e r higher than that i n I n d i a , Java, the P h i l i p p i n e s , Natal and 1 Maxwell, Economic Aspect of Cane Sugar Production, p. 13., 2 Robertson, C. J . , World Sugar Production and Consumption,p.38 39 - M a u r i t i u s . Economic E s s e n t i a l s . I n s p i t e of n a t u r a l advantages., that i s , climate and s o i l c o n d i t i o n s , the p r i n c i p a l advantage i s the proximity of Cuba to the United S t a t e s , the great sugar market. As a r e s u l t of t h i s , Cuba b e n e f i t s not only by g e t t i n g a lar g e share i n the i n c r e a s i n g demand, but also by the f a c t that the t r a n s -p o r t a t i o n charges are lower than i n the i n s u l a r area. This enables Cub>a to compete i n the United States market even dur-i n g the per i o d of most p r o t e c t i v e p o l i c y . The .United States i s a la r g e and growing market. The consumption of the United States increased t h r e e f o l d In the l a s t three decades. The t o t a l consumption i n 1900 was 2,4QQ,000 tons. This increased between 1901 and 1910 to 2,912,000 tons; between 1911 and 1920 to 3,921,000 tons. The great increase occurred a f t e r 1-920, that i s , the consumption i n 1921 to 1923 increased to 5,012,000 tons and i n 1930 t o 6,2 00,000 tons. Expressing t h i s i n a d i f -f e r e n t way, the consumption o f the United States increased from 64 l b s . to 103 l b s . per c a p i t a . The bulk of the American sugar supply was imported form Cuba up to 1930. The f o l l o w i n g table shows, from year to year, the percentages of the United States sugar consumption supplied by' Cuban and by domestic pro-ducers.' 40 Table * Showing the. Source of Sugar Supply of the  United States i n Percentages. 2 e a r U.S. includ-ing insular area percent. Cuba per-cent . : lear U.S. includ-in g insular area percent. Cuba , per-cent. ; l | 2 , i ' \ 54.0 4 5 . 4 1927 : 44,8 55-o '' 1922 * ;42*5 1928 52.4 4 7 . 0 1923 42 .0 54.4 1929 47.8. 5 1 . 9 1924 40 #0 58 ,2 1930 55-6 4 3 . 9 1925 47.6 52.8 1931 62*2 37 .2 1926 41.2 58.O 1932 71 • 4 28.2 * U. S. T a r i f f Commission Report 1 9 3 4 . H". B. The remainder of the sugar supply i s obtained from other c o u n t r i e s * The above t a b l e shows that up to 1930 h a l f of the United States market was supplie d from Cuba, but a f t e r 1930 we see an ext r a o r d i n a r y f a l l i n the import of Cuban sugar i n t o the United States* ihirthermore, the bulk of the Cuban sugar was exported to the United States and only a small percentage l e f t f o r home and. world markets. In 1922 , Cuba exported 4-fe- m i l l i o n tons of her t o t a l year's production. The average export to the United States market i s l i t t l e l e s s than 71 per cent of her t o t a l production. The whole s i t u a t i o n f o r the period under survey w i l l be discussed p a r t l y i n the t a r i f f s e c t i o n . From 41 the e x p l a n a t i o n , however, i t i s obvious that the e n t i r e ec-onomic l i f e of Cuba mainly depends upon the sugar i n d u s t r y . Let me s t r e s s more d e f i n i t e l y the point that seven-eighths o .' of Cuban economic l i f e i s based upon t h i s i n d u s t r y . In 1925 Cuba exported sugar to the value of §300,000,000 to the United States and imported from the United States other goods to the value of $160,000,000. But the sugar export of Cuba to the United States decreased i n 1932 to $81,000,000 and im-ports from the United States decreased to 128,000,000. Besides the p r o x i m i t y to the American market, Cuba has, under the r e c i p r o c i t y agreement, another advantage i n a 20 per cent preference on i t s export to the United S t a t e s . This enables the Cuban producers t o secure a high p r i c e i n the United States market. The f o l l o w i n g t a b l e shows the range of preference f o r Cuban sugar as compared with other c o u n t r i e s . The duty on sugar i n the United States i s based upon 9 6 0 p o l a r i z a t i o n . *Table showing d u t i e s on sugar i n the United S t a t e s , Cuba and other c o u n t r i e s s e p a r a t e l y . Tears Gen. duty Cuban 2 Of* per pound preference 1909 1.686 1.548 1913 I . 2 5 6 1.0048 1921 2.000 1.600 1922 2.206 1.7648 1930 2 . 5 O O 2.000 * United States T a r i f f Commission Report, 1954. 48 H ' H i XI * » 54 a CO s « o <d cl • O o 'H Pi + 3 O 54 CJ* <D •d Pi o 14 f 4 4 3 <H Cj © o jp m o o © x ! cj •H p» O X i to <D H jd M> EH w to » : • H to r H H tO » O H O to t C M to C M C M C M H C M H O C M o» H O C M I o> H H CO H &> H 00 H _c=L IN H I to H T to H r H 0» 54 4 = O O tO tO C M IN EN o C M to CO tN to IN in • CO C M • C M * C M r H in e- CO C M C M fe- tO EN O rn" cvj to O * * « • • * H to C M C M O o CO *vH GO £N tO IO tN tO o CO H H H • • • C M C M to C M fe- to H rn IN H cn to to H to • • • to in H OV H to C M O CN o co On • • C M C M to H o IN to to O to J in to 1 * IN CO IN m IN in M a* CO at * • * to in to in tn to. H i n to to to i to IN H •1 «. • • C M to to 63 o o • H « o 54 o 63 I El * H P ) r H PHI i r t i N o IO m I • i to t t • • to: to cj C3 • H •rH a a cvl H O to y l * in to in w GO JN • o> to <&. m tg to IN, OV C M « 1 lO ! IN to t I CO • * •* to IN to CO in -« SN o C M to * to co » C M o CO co to co in JN m to H O <o C M 1 i !N • 4 • 1 8 « C M C M to <D pq to ro 0: 4 = ! 4 E l 6J x ! • f e • +» O W (D - .« O CQ r H Q) i> in H ro ro 63 a <D Xi O +3 a 54 V I o fcl o ^ <D P t 03 r d O m 0} SH ro r H Pi • H >Q 54 05 += O C j CD • o W o o o d EJ • H ro ' H cri x ! - P © P 4 a p 63 o x l o • H S4 * d ro ro d x i si • H += o to cn H - d E| « 3 C M cr> <H + 3 $4 o P i ro EJ o 'r-i ra « O o EH ra ro + 3 4 3 CO nd ro 4 = • H ro x i EH ro o o CO 43 This w r i t e r b e l i e v e s that the lower cost of production i s mainly' "due t o the system of purchasing cane from Golono farmers. They are independent growers and the farms are sm a l l . Such farmers have the advantages of l e s s overhead charges because they i n v e s t l e s s as compared wi t h the company farms. Cuban sugar a l s o has an advantage i n the United.States market over the Hawaiian i n respect to l e s s marketing and transpor-t a t i o n charges, and l e s s i n l a n d h a u l i n g . In a d d i t i o n , the Hawaiian sugar could not compete i n the United States market with Cuban sugar unless i t were to r e c e i v e s p e c i a l concessions because Hawaiian traders have to pay a c e r t a i n amount which i s known as "Contract deduction" against the market p r i c e . These m u l t i p l e advantages, that i s , p r o x i m i t y , cheap t r a n s p o r t a t i o n and lower cost of production enable the Cuban producers to compete on the American market and on the f r e e world market as w e l l . With regard to beet sugar i t has to be marketed during the low p r i c e season. I n s p i t e of a l l these f a c t o r s , the Cuban sugars have the advantage of the "drawback". This keeps Cuban sugar moving. Considering c a p i t a l , the t o t a l investment according to Dr. Robertson i s 1,2^0 m i l l i o n d o l l a r s and two-thirds to three-quarters of t h i s i s American c a p i t a l . The Cuban pro-ducers have the main disadvantage of poor methods of c u l t i v -a t i o n , ^ h i s handicap counter balances most of the advantages. The y i e l d of sugar i s two to three tons per acre. This lower y i e l d of sugar i s not due to the poor v a r i e t i e s but to the f a c t that the cane v a r i e t i e s are su s c e p t i b l e to disease such 44 as mosaic and to pests such as the mouth borer i n s e c t . The Cuban government, however, at present i s paying much a t t e n t i o n to the improvement of technique and management of the f a c t o r i e s . The government tendency i s to c e n t r a l i z e the i n d u s t r y and r e -duce the number of f a c t o r i e s . In regard to s c i e n t i f i c improve-ment, the Cuban government i s encouraging "sugar clubs" and t e s t i n g machinery f o r r e p l a c i n g manual labour. 45 Chapter V Java H i s t o r y The exact date when the sugar-cane was introduced i n t o Java i s unknown. I t i s an e s t a b l i s h e d f a c t , however, that e i t h e r the Chinese or the Hindus have the c r e d i t of i n t r o d u c i n g sugar cane i n t o Java. Overlings stated that "a Chinese t r a v ^ e l l e r , J'abian, who v i s i t e d Java i n 424, mentions the presence of sugar cane i n the i s l a n d , so t h a t , c o n s i d e r i n g the many com-m e r c i a l r e l a t i o n s between Java and China, I n d i a and A r a b i a , there i s no doubt that the knowledge of evaporating the j u i c e to a s o f t , brown sugar e x i s t s on the i s l a n d as w e l l as i n the co u n t r i e s i t trades w i t h . 1 ' 1 According to Rbhertson, sugar cane was manufactured e a r l y i n the n i n t h century. However, 1640 marks the date when cane sugar manufacture entered i n t o the commercial world. At t h i s time, the i n d u s t r y made progress under the d i r e c t i o n of the Dutch p r o p r i e t o r s . The Dutch East I n d i a Company had the monopoly i n c o n t r o l l i n g the sugar i n -dustry during the 1 7 t h and 18th c e n t u r i e s . The company i n 1637 f i r s t recorded the shipment of the Javan sugar to H o l l a n d . The company had seen ahead and made p r o v i s i o n f o r a supply of sugar i n the f u t u r e and f o r the maintenance of trade with E a s t -ern c o u n t r i e s , and had decided to e s t a b l i s h i t s own sugar i n -dustry i n Java. The company s e t t l e d Chinese on the l a n d and gave them 1. GeerlingSj World Cane Sugar Industry, page 115. the p r i v i l e g e of c u t t i n g firewood from the woods, hut they were hound to d e l i v e r t h e i r whole output to the company at the p r i c e f i x e d hy the company i t s e l f . Such c o n d i t i o n s l a s t e d u n t i l 1795 and the product d i d not become s t a p l e i n q u a n t i t y , q u a l i t y or even i n p r i c e . In s p i t e of various events such as war, diseases among the men and. animals, which, combined w i t h the S c a r c i t y of labour and c a t t l e f o r c u l t i v a t i n g the f i e l d s , the i n d u s t r y had suffered g r e a t l y . Because of the disturbance i n B r a z i l the demand f o r Javan sugar increased i n Europe; thus the progress of the i n d u s t r y was maintained* Javan sugar l o s t i t s market to a considerable extent during the Bantun war i n 1660 and by the i n t r o d u c t i o n of West Indian sugar to the European market. From the d i s s o l u t i o n of the Dutch East I n d i a Company i n 1795 up to 1816, a great many p o l i t i c a l changes occurred i n Java. I n 1797 f o r the f i r s t time p r o v i s i o n was made that producers were only bound to supply 15,000 baskets of sugar f o r the company and any excess over t h i s they could dispose of as they wished* This concession was a l s o followed by an encouraging government p o l i c y and by a r a i s e i n the p r i c e of sugar. As a r e s u l t , the production increased g r e a t l y . On the other hand, the disturbance i n Europe made i t impossible to move Javan sugar because of l a c k of t r a n s p o r t a t i o n . Thus, i t was impossible to t r a n s p o r t sugar from the i s l a n d . The indus-t r y was severely checked and the production, t h e r e f o r e , i n 1811 was reduced to 6 l 8 n t o n s . Because of the d i f f i c u l t y of d i s -posing of the stock, the government was forced to allow the manufacturers to s e l l t h e i r product independently. At the 47 same time the growers a u t o m a t i c a l l y gained t h e i r freedom. From the year 182b on, the industry was given c a r e f u l -a t t e n t i o n . Heal progress i s marked from 1850 when Governor General Van den -Bosch made the r e g u l a t i o n s known as the " c u l -t u r a l system". The r e g u l a t i o n s are explained as f o l l o w s : "the nativ e population of the d i s t r i c t s s u i t e d f o r sugar growing, was to give one-third of i t s arable land f o r the p l a n t i n g of sugar cane, to be disposed of as n e c e s s i t y r e q u i r e d , so that the e n t i r e t h i r d need not be taken i n t o c u l t i v a t i o n * F u r t h e r , the n a t i v e population was to t i l l the f i e l d s , supply f u e l , draught and ploughing e a t t l e , and i n t h i s way was exempted from corvee duty. A l l labour was to be paid out of the money the given produce fetche d , from which the r e q u i s i t e land tax was to be deducted f i r s t * In order to work up the cane to sugar, sugar c o n t r a c t s were d r a m up wit h p r i v a t e p a r t i e s who received loans In money f o r the e r e c t i o n of f a c t o r i e s , the con-t r a c t i n g p a r t i e s were to d e l i v e r a l l t h e i r produce to the gov-ernment at a f i x e d . p r i c e , and were allowed to redeem the money advanced by means of sugar s u p p l i e s . " 1 Further changes occurred i n 1870 when the government stopped i t s d i r e c t i n t e r f e r e n c e and t o t a l l y ended i t s connection w i t h the i n d u s t r y i n 1891. -ft t h i s time, the understanding was reached that the government would give the land and labour at some proper p r i c e to the producers and would charge' a prem-ium at the rat e of £2.Is. f o r 1 . 74 acres. L a t e r , t h i s premium 1 . G r e e r l i g s , World's Cane Sugar Industry, page 118-119 48 ' was reduced to h a l f . In the l a s t quarter of the 19th century-Europe put beet sugar on the world market. The competition between beet and cane sugar became more pronounced. The p r i c e of sugar i n 1882-84 f e l l down below the cost of production. The output f o r the year 1891 was decreased to 406 ,000 tons, p a r t l y because of the competition of beet sugar and p a r t l y as a r e s u l t of the outbreak of a mysterious cane disease* Three experimental s t a t i o n s were e s t a b l i s h e d to check the disease. Not u n t i l . 1911 was there any marked increase i n sugar production. From then on, the production increased suddenly and during the f i r s t year of the war Java benefited from a l l s o r t s of advantages i n the d i s p o s i n g of her output on the Eastern market, and even i n Europe. But l a t e r the supply of ships f o r sugar t r a n s p o r t a t i o n became d e f i c i e n t and a l l sugar was h e l d up on the i s l a n d . As a r e s u l t , therefore,, sugar pro-duction remained steady f o r another decade. The year 1928 marks the h i g h l e v e l f o r sugar production. The t o t a l production f o r t h i s year was 2 ,936,164 tons.'1 From then on the production decreased g r a d u a l l y . A f t e r 1930 the annual output of Java shows sharp r e d u c t i o n . The production f o r 1930 was 2 ,92 3 , 0 0 0 tons and i t decreased i n 1932 to 2 , 5 6 9 , 3 9 0 tons, but a d i s a s -trous f a l l i n production occurred i n the year 1953 when the output was only 1,580,449 tons. In other words s r e d u c t i o n of over 50 per cent took place i n one year. L i m i t i n g F actors \ v (a) Qlimate The i s l a n d l i e s i n the Indian ocean between IO5 0 and 1 1 5 ° longitude and 5° and 9° l a t i t u d e south of the equator. I t s length i s 657 m i l e s and i t s breadth i s 13 to 50 m i l e s . The t o t a l area i s jjO,000 square miles and the population of the i s l a n d i s t h i r t y - f i v e m i l l i o n , that i s , 702 persons per square m i l e . The r a i n f a l l i s heavy and averages 100 inches i n the year. But most of the r a i n occurs i n a very short p e r i o d . The r a i n y season l a s t s from November to March-and the time from 4-pril to October i s u s u a l l y dry. The canes are planted from June to September and harvested from May to October. I r -r i g a t i o n i s necessary because, a f t e r the heavy r a i n i n the e a r l y part of the r a i n y season there i s a, period of scant r a i n f o l lowed by drought,. The temperature of the i s l a n d i s quite warm, that i s 79°^« and shows very l i t t l e v a r i a t i o n between day and n i g h t . Maxwell w r i t e s , "Java has the most t r o p i c a l and consequently the most s u i t a b l e climate f o r cane c u l t u r e ; i t has a h i g h and f a i r l y constant mean of annual temperature; the r a i n f a l l i s abundant and occurs with seasonal r e g u l a r i t y ; no appreciable strong winds or drought prevail.":*- Yet i r r i g a t i o n i s c o n s t a n t l y made use of to supplement the r a i n f a l l i n the d r i e r months, (b) S o i l I n c o n s i d e r i n g the s o i l of Java, I should l i k e to mention here the Report of the Imperial Conference published i n 1932. This r e p o r t described the s o i l of Java, as f e l l o w s : " a s e r i e s of v o l c a n i c mountain ranges and peaks border the southern edge, while the northern part i s low and f l a t . " 2 Furthermore, 1. Maxwell, Economic Aspect of Cane Sugar Production^ page 20 2. Imperial Sugar Cane Research Conference, London, ±931,p.36. 50 according to Robertson the cane s o i l i s mostly a l l u v i a l and n e u t r a l i n r e a c t i o n but r e l a t i v e l y poor i n nit r o g e n and phos-phoric a c i d content, (c) Labour I t has been remarked that the I s l a n d i s t h i c k l y pop-u l a t e d * The labour supply, t h e r e f o r e , i s adequate, abundant and e a s i l y a c c e s s i b l e . The wage r a t e s are low. This i s due p a r t l y to the low standard of l i v i n g and p a r t l y to the den s i t y of the population* The rat e f o r u n s k i l l e d labour i s 1 0 d . per day and s k i l l e d from l i d . to 5 s . a day. The s k i l l e d work, that i s f a c t o r y work, i s almost e n t i r e l y c a r r i e d on by Chinese. The i n d u s t r y employs about 7 0 0 , 0 0 0 to 8 0 0 , 0 0 0 workers during the crushing period and 4 5 , 0 0 0 are permanently employed. Economic E s s e n t i a l s The abundant supply of ©heap labour i n Java has made i t outstanding i n the sugar cane i n d u s t r y . I t has enables. Java to compete with c o u n t r i e s such as Cuba where the n a t u r a l resources are more favourable than i n Java. Robertson states that Java "on the whole", has n e i t h e r climate nor s o i l s so favourable as i n Cuba." 1 But the y i e l d of sugar per acre i s even twice as high as that i n Cuba* The reason f o r t h i s h i g h -er y i e l d I s a matter of opinion. One may approach the prob-lem i n d i f f e r e n t ways. I n my estimation i t is.due to the method of i n t e n s i v e c u l t i v a t i o n , which i s made p o s s i b l e by the supply of cheap labour. Let me quote Maxwell i n support 1. Robertson, 0 . J . , World Sugar Production and Consumption.p.32. 51 of t h i s view: " t h i s i s l a n d i s blessed with a c c e s s i b l e and the cheapest of l a b o u r . " 1 Mark the word "blessed". This area i s a l s o baeked up by Oliver "Report on West Indian Sugar Indus-t r y " , "There i s an abundant supply of very cheap labour a v a i l -a b l e . " 2 Hext to cheap labour as a f a c t o r governing higher y i e l d i s the i n t r o d u c t i o n of new cane v a r i e t i e s * In the year 1925, there were nine cane v a r i e t i e s . 46 per cent of- the whole areaunder c u l t i v a t i o n was devoted to one s i n g l e v a r i e t y , t h i s being the highest percentage. A f t e r the i n t r o d u c t i o n ' o f P.O.J:. 2878 which spread very r a p i d l y between 1927 and 1929 when i t covered 93 per cent of the t o t a l area under sugar cane, O l i v e r concluded that the y i e l d of sugar was increased 30 per cent by the i n t r o d u c t i o n of new v a r i e t i e s . Robertson expresses i t .thus: '^introduction of new v a r i e t i e s brought a s e n s a t i o n a l i n -crease i n p r o d u c t i o n " A t h i r d reason f o r the increase i n the y i e l d of sugar i s the c o n t r o l of sugar cane diseases. This was made pos s i b l e e s p e c i a l l y by the method of a c q u i r i n g land f o r sugar c?ane c u l t i v a t i o n . In short t h i s method r e s t -r i c t s the ratooning system and the canes have to be planted every year. • C u l t i v a t i n g and c l e a r i n g the f i e l d s , i s a strong check against the spreading of cane diseases* Before I leave t h i s t o p i c , I should l i k e to point out also the c y c l o n i c e f f e c t . Of course, I consider that c y c l o n i c i n f l u e n c e s on the i n d u s t r y are n o t r e g u l a r * I t i s one of the n a t u r a l advantages that Java 1. Maxwell, Economic A S p e c t of Cane Sugar Production, page 88 2* Report of the West Indian Sugar Commission, page 33 3 c: 4 Robertson » World Sugar Production and Consumption, p. 34. $2 i s out of the c y c l o n i c area. Robertson says that "freedom from d e s t r u c t i v e cyclones i s a notable a d v a n t a g e " L e t me conclude the proceeding statement i n the f o l l o w i n g words: the e f f i c i e n c y of the land was increased,by i n t e n s i v e c u l t u r e and at the same time i t s capacity remained unchanged. Thus i t gives the advantage of low cost per u n i t i n p u t . The cost of production f o r sugar i n Java i s even lower than i n Cuba. Com-menting f u r t h e r on l a b o u r , I wish to s t r e s s two outstanding f e a t u r e s . F i r s t , an arrangement of mutual advantage f o r both labourers and f a c t o r y owners; secondly the government r e g u l -a t i o n f o r a c q u i r i n g l a n d . Both of these are wrell explained by Maxwell* ! iQuoting from the report of the Indian Sugar Com-mittee (1920) " v i l l a g e r s who are temporarily l a n d l e s s have an opportunity, t h e r e f o r e , of obtaining i n a d d i t i o n to a reason-able rent per acre, s u f f i c i e n t continuous employment to give them the income which they would have received i f they had c u l t i v a t e d the land themselves, inuring the m i l l i n g season those who c u l t i v a t e t h e i r own lands have a market f o r t h e i r labour at t h e i r own doors and can work on the f a c t o r y p l a n t a t i o n e^ery day that they can spare from t h e i r own f i e l d s . ' ' 2 Further he commends Java because i t ''has been secureidfby an admirable o r g a n i z a t i o n f o r mutual assistance i n a l l d i r e c t i o n s , above a l l i n regard to research ,,• generoa'&s expenditure on which i s recognized to be a most p r o f i t a b l e investment, and by the adoption of methods of c u l t i v a t i o n and manufacture on which i t 1. Robertson , C. J . , World Sugar Production and Consumption, p.32 2 . Maxwell, -&eo. Aspect of Cane Sugar Production, i'age 80 would tie d i f f i c u l t to improve, c a r r i e d out under h i g h l y t r a i n e d and w e l l paid s u p e r v i s i o n " 1 According to s c i e n t i f i c measurements, there i s no def-i c i e n c y i n Java* The research work has been much extended. There i s a research i n s t i t u t i o n which c a r r i e s on the work i n chemical, t e c h n i c a l and other s c i e n t i f i c l i n e s such as agronomy, diseases, entomology e t c . The Javan sugar i n d u s t r y i s b e n e f i t e d by having increased the use^ of the carbonation process i n the f a c t o r i e s . , A word about t r a n s p o r t a t i o n , the co n d i t i o n s are very s a t i s f a c t o r y . There i s a network of r a i l w a y l i n e s . Robertson w r i t e s : ''transportation f a c i l i t i e s i n the i s l a n d are e x c e l l e n t , there being a comprehensive r a i l w a y net with main l i n e s on e i t h e r side of the mountain backbone, and good roads." The port f o r shipment i s w e l l s h e l t e r e d and has up-to-date equip-ment* The number of f a c t o r i e s i s decreasing but the tendency i s to increase e f f i c i e n c y . I n other words they concentrate on c e n t r a l i z i n g the i n d u s t r y . The number of f a c t o r i e s decreased from 190 to 1 7 8 . About 90 per cent of the output i s c o n t r o l l e d by V*J .i3.P. (Vereeniging bet P r o e f s t a t i o n voor de Java Suiker-i n d u s t r i e s ) the s o c i e t y c o n t r o l s l£>4 f a c t o r i e s out of 1 7 8 . The t o t a l investment i s l e s s than i n Cuba. The Dutch are the c h i e f i n v e s t o r s ; next come the Chinese and the Japanese. P r i o r to I 8 7 4 almost the t o t a l production was shipped to the Netherlands but a f t e r that competition of beet sugar 1. Maxwell, Eco. Aspect of Cane .Sugar Production, page 8 2. Robertson, C.J., World Sugar Production and Consumption,p.35. made i t impossible to snip any more sugar to European markets. L a t e r Java found.free markets i n the United Kingdom and i n 1890 i n the United S t a t e s . The p r e f e r e n t i a l treaty between the United States and Cuba ended the shipment of sugar from Java to the United S t a t e s . From then on, Java food a steady market i n the E a s t , that i s i n I n d i a , China, ^V8JD±& and Japan. But the the year 1951 i s notable i n the h i s t o r y ofj^Javan sugar i n d u s t r y , f o r i n t h i s year I n d i a r a i s e d her t a r i f f w a l l and stopped the Javan sugar from e n t e r i n g i n t o the country. The a f f e c t of t a r i f f and the measure of the t a r i f f w i l l be discussed i n a l a t e r chap-t e r . In short Java was forced to cut down i t s production disas-t r o u s l y . The production i n 1926 was at a low l e v e l . There was a 50 per cent r e d u c t i o n from the previous year. This decrease was due to c r i s e s i n China, b e t t e r production of sugar i n I n d i a and a f a l l i n p r i c e s as the supply of sugar increased. Beet sugar production increased 12 per cent. The r e s t r i c t i v e p o l -i c y of the Cuban government made i t p o s s i b l e f o r Java to i n -crease i t s production* At t h i s time p r i c e s f o r sugar went a l i t t l e h igher than before. But Java cannot protect i t s indus-t r y from the c r i s e s which occurred a f t e r I 9 2 8 . A f t e r t h i s year, the export from Java decreased each succeeding year. The p r i c e s f o r sugar a f t e r 1928 f e l l and at the same time they were a f f e c t e d by the change i n n a t i o n a l p o l i c i e s ; that i s , there was p r o t e c t i o n of home production c a r r i e d on by continuous r a i s -i n g of the t a r i f f w a l l . Thus Java suffered g r e a t l y with the shrinkage of i t s Eastern market* 35 In s p i t e of a l l these favourable c o n d i t i o n s Java i s at great disadvantage i n i t s l a c k of a domestic market. Chapter VI B r i t i s h Empire (excluding India) A u s t r a l i a The i n t r o d u c t i o n of sugar, cane i n t o A u s t r a l i a i s com-p a r a t i v e l y recent and the development of the i n d u s t r y has only taken place i n the past seventy years. The cane was f i r s t imported i n t o the country i n 1864,and i n 1868 the f i r s t m i l l was erected. In 1879 the i n d u s t r y produced 10,000 tons of sugar. At the beginning Kanakas provided the main labour sup-p l y . They were imported i n t o the country at that time as i n -dentured labourers w i t h three years agreement. A l i t t l e l a t e r white labourers made strong protest against the employment of ••Kanakas even though they had enough work i n the f a c t o r i e s f o r themselves. The whole s i t u a t i o n l e d to the appointment of the "Royal Commission" to i n v e s t i g a t e the problem. As a r e s u l t of the Commission's Report, the f u r t h e r immigration of the Kana-kas was p r o h i b i t e d i n 1890. Besides t h i s , the A u s t r a l i a n government advanced the amount of £2^,000 and £20,000 i n I 8 8 9 to.two d i f f e r e n t groups, Vv'Ith the idea of e s t a b l i s h i n g the i n d u s t r y on a sound f o o t i n g . About three years a f t e r the date when the employment of Kan-akas was p r o h i b i t e d the "Sugar Workers Grantee Act" was passed. This was i n I 8 9 3 and t h i s e n t i t l e d the government to f i x the oane p r i c e and to take possession i n the management of the f a c t o r i e s and cane planted areas. I n a d d i t i o n the Exchequer was granted the r i g h t to have the f i r s t mortgage on land and 57 f a c t o r i e s . The "•Exchequer was . a l s o empowered to s e l l the f a c -t o r i e s by p u b l i c a u c t i o n . The Act was amended i n 189J? and pro-v i s i o n was made g i v i n g the government the " r i g h t to buy up a l l the shares i n sugar f a c t o r i e s that were put up f o r sale at the government's expensed" Another l e g i s l a t i o n , namely "The P a c i f i c Island.labour Act" was passed i n 1901, and the g i s t of the act was t h a t . a l l coloured races should be barred from entering the country. Thus from 1906-08 about 9,000 Kanakas were ex p e l l e d from the country. We f i n d as a r e s u l t that A u s t r a l i a i s the only country i n t r o p i c regions which has white labour engaged i n the sugar Industry. These ideas may have been c a r r i e d out with the. aim of making A u s t r a l i a a "white man's country". The production i n 1913 was a l i t t l e higher than that i n I92O but a f t e r t h i s date the production trend i s upward even during the period of depression. The annual output f o r the syear 1924 was 430,344 tons and we f i n d a gradual increase u n t i l 1933- In t h i s year the t o t a l production was 608,000 tons and the high l e v e l was reached. L i m i t i n g F a c t o r s (a) Climate The sugar cane t r a c t i n . A u s t r a l i a i s separated by great distances and occupies two d i f f e r e n t d i s t r i c t s , namely Queen-sland and New South Wales. The areas where sugar cane i s c u l -t i v a t e d are between 16° and 30° south l a t i t u d e . The north i s e x a c t l y i n the t r o p i c r e g i o n and the southern d i s t r i c t i s on the margin of the t r o p i c s * Thus there occurs great v a r i a t i o n 1. C e e r l i g s , The World Cane Sugar I n d u s t r y , page 332. 58 i n c l i m a t e . Besides the c l i m a t i c c o n d i t i o n s j the annual-rain-f a l l v a r i e s . I t i s " u s u a l l y too heavy i n the north and c e r t -a i n l y d e f i c i e n t i n the south"! The southern t r a c t of sugar cane land i s subject to drought, and f r o s t s . When the annual r a i n f a l l i s l i g h t the crop from the north may be l a r g e and s a t i s f a c t o r y , but i n the south the crop would be poor. There occurs wide f l u c t u a t i o n i n y i e l d per acre from year to year. The h a r v e s t i n g period of canes i n A u s t r a l i a i s from June to December and the crop i s harvested a f t e r twelve to fourteen months from the time of p l a n t i n g . We f i n d that many cane sugar diseases are present i n A u s t r a l i a , i n c l u d i n g gumming, l e a f - s c a l d , mosaic. The only i n s e c t pest i s the grey-back b e e t l e , (b) S o i l The s o i l i s very w e l l described as f o l l o w s : "the s o i l i n the cane t r a e t i s l a r g e l y a l l u v i a l , bearing v i r g i n f o r e s t when f i r s t opened f o r cane; there are also some free working v o l c a n i c s o i l s i n the s o u t h . " 1 Robertson sta t e s that " i n the v a l l e y s a dark a l l u v i a l s o i l i s found while i n c e r t a i n areas deep, e a s i l y - e x p l o i t e d red to chocolate loams predominate". 2 (c) .Labour Recognizing the c o n s t i t u t i o n a l motive f o r the s e r i e s of acts mentioned e a r l i e r and "white A u s t r a l i a n " p o l i c y , one does not see the n e c e s s i t y of g i v i n g more d e t a i l e d explanation about labour. The r e t a i l p r i c e f o r sugar In A u s t r a l i a i s 1. Imperial Sugar Cane Research Conference , London, 1931 ,p'.*42. 2. Robertson, w.. J . World production and Consumption, p. 51 59 higher than i n any other part of the world. This i s because the i n d u s t r y pays high wages as compared with other sugar pro-ducing c o u n t r i e s . The;;-buyerTs p r i c e i n . A u s t r a l i a i s a l i t t l e over twice as much as i n "New York and three times as h i g h , as edtapared w i t h London* Furthermore, i t i s a l i t t l e l e s s than f i v e time higher than the open market p r i c e i n London. The ra t e of wages i s $4.10 p e r day. There i s no comparison w i t h wages i n other sugar producing c o u n t r i e s . Maxwell remarked of the i n d u s t r y that i t i s "the highest paid a g r i c u l t u r a l indus-t r y . " 1 The s i t u a t i o n may - b e summed up thus: A u s t r a l i a n con-sumers are w i l l i n g to pay more i n order to ensure, the existence of the sugar i n d u s t r y i n i t s present form. Economic E s s e n t i a l s C o n s i d e r i n g the i n d u s t r y as a whole, I do not h e s i t a t e to say that i t i s an a r t i f i c i a l i n d u s t r y . On the other hand i t i s an example of a state a d m i n i s t r a t i o n on a larg e s c a l e . The i n d u s t r y depends a b s o l u t e l y upon t a r i f f p r o t e c t i o n even i n a normal year* The A u s t r a l i a n government has comprehensive con-t r o l over the i n d u s t r y . Dumping of a l l f o r e i g n sugars i n t o A u s t r a l i a i s p r o h i b i t e d . The government c o n t r o l s the p r i c e s * The Commonwealth of A u s t r a l i a according to i t s agreement i n 1915 with the government of Queensland purchased the t o t a l out-put of the i n d u s t r y * In 1920 the sugar p r i c e was f i x e d at a high l e v e l f o r three years. The i n d u s t r y as a r e s u l t was stim-u l a t e d and the production of sugar increased i n 1923. The zone of sugar c u l t i v a t i o n was expanded. A new agreement was draughted between these two governments and the Sugar Board was e s t a b l i s h e d . 1* Maxwell, E Con. A s p e c t of Cane Sugar Production, page 88 60 Under t h i s agreement the Board was empowered to Tray a l l the sugar produced at £27 per ton, and was e n t i t l e d to s e l l to the r e f i n e r i e s . At the same time the r e t a i l p r i c e f o r sugar was f i x e d at 4-fe- cents a pound. The "Excise drawback'1 and "Rebate on* Export" was allowed. Sugar used i n almost a l l f r u i t pro-cesses, i n i n d u s t r y and i n export goods was given the rebate. The surplus sugar prodiieed could be sold on f o r e i g n markets at the world p r i c e and the Industry was to be r a t i o n a l i z e d at home. Such s i t u a t i o n s , o b viously b r i n g on f u r t h e r increase i n produc-t i o n . Thuii, the surplus ims increased because a higher p r i c e i n the country tends to l i m i t the consumption. The Sugar Board disposed of the surplus on the world market at a low p r i c e . _ 'The average p r i c e that "was paid to producers was reduced g r e a t l y . This l e d the government to f i x the p r i c e s i n such a way as to discourage the sugar production i n s t e a d of encouraging i t . Thus a new agreement was signed i n 1931. Under t h i s agreement the p r i c e f o r raw sugar was f i x e d at £22 per ton f o r 340,000 tons. The embargo on f o r e i g n sugar was renewed f o r another f i v e years and the s e l l i n g p r i c e was f i x e d at 4-g cents f o r another three years. In 1933 under the s p e c i f i c sanction of the Commonwealth the c o n t r i b u t i o n of the i n d u s t r y to the f r u i t processors was reduced from £315,000 to £200,000. Besides t h i s the r e t a i l p r i c e was reduced to 4 cents a pound. These con-d i t i o n s w i l l e x i s t f o r another f i v e years. However, a f t e r c o n s i d e r i n g the movements of sugar we f i n d that the A u s t r a l i a n producers, a f t e r a lengthy .-period of pro-t e c t i o n , are i n the same d i f f i c u l t i e s as the other bounty paying ! 61 c o u n t r i e s . I t i s obvious that the s i t u a t i o n i n A u s t r a l i a i s reaching a c r i t i c a l stage. This i s w e l l i l l u s t r a t e d from the s i t u a t i o n that occurred a f t e r 1951. In that year the surplus increased to h a l f of the t o t a l production. This was sold on the world market. In s p i t e of the p r e f e r e n t i a l duty on imports i n t o Canada and exchange r a t e s the price obtained was £ 9 . 7 s . pe ton; This reduced the average p r i c e to £17 . 19s .8d. per ton and t h i s i s below cost of production. In s h o r t , even when the government has a monopoly over the i n d u s t r y i t cannot save the producers from the a f f e c t of c r i s e s , without at the same time l i m i t i n g the production. South A f r i c a In South A f r i c a , sugar canes are produced i n Natal and Zululand. The cane t r a c t i s about 2^0 m i l e s along the coast. I t l i e s between 28" and 51° l a t i t u d e south of the equator. I t i s outside the t r o p i c s and therefore f r o s t would be a l i m -i t i n g f a c t o r , but f o r the f a c t that the warm current from Mozambique makes f r o s t unknown there.. South A f r i c a has a disadvantage i n that "cane takes longer to grow—approximately two years from p l a n t i n g to h a r v e s t i n g . " 1 This i s due to the f a c t that the r e g i o n l i e s out of the t r o p i c a l t r a c t . The canes are harvested i n N a t a l a f t e r 24 months from the time of plant-i n g and ratooned a f t e r 18 months while the h a r v e s t i n g period i s d i f f e r e n t i n Zululand where the f i r s t planted crop i s har-vested a f t e r 18 months and ratooned a f t e r 12 months. The 1. Maxwell, &GO. Aspect of Cane Sugar Production, page 2 62 h a r v e s t i n g period l a s t s from May to September. The annual r a i n f a l l ranges from 55 to 50 inches. The s o i l of South 1 A f r i c a shows v a r i a t i o n . The s o i l i n "Natal proper i s somewhat l i g h t but i s heavier and r i c h e r i n Zululand where the lowland i s a l l u v i a l . " 1 The labour supply i n South A f r i c a i s d e f i c i e n t and f o r t h i s reason, during the time of h a r v e s t i n g the canes are burned. This lowers the sucrose content. Formerly indentured labourers were imported from iindlita. This system ended i n 1911. At pres-ent a l l labourers are Bantu. I n order to give a c l e a r p i c t u r e of the labour supply I would l i k e to quote hereD. M. Jiady, who^  stat e s "Labour c o n d i t i o n s , so f a r as they p e r t a i n to n a t i v e s , d i f f e r g r e a t l y from those of other parts of the world, today the main labour f o r c e of the sugar i n d u s t r y i s supplied by the a b o r i g i n a l n a t i v e s so that knowledge of h i s l i m i t a t i o n s as a worker and r e s t r i c t i o n s as a c i t i z e n i s very necessary* Indian c o o l i e s f o r a good many years were considered to be e s s e n t i a l f o r the success of the i n d u s t r y and n a t i v e s were regarded as pa r U c u l a r l y u s e l e s s f o r the work to be done. Probably about 9 ,000 Indians, men and women are now employed on sugar e s t a t e s , but these people, descendents of .indentured Indians, seldom t r a n s f e r t h e i r s e r v i c e s , unless i t i s to abandon a g r i c u l t u r a l labour a l t o g e t h e r . Today, no employer expects to have any great part of h i s work done by Indians; he has to r e l y almost e n t i r e l y and i n many cases e n t i r e l y , on n a t i v e s * " 2 1. Robertson, 0. J . World Sugar Production and Consumption, p.54 2. Maxwell, Economic Aspects of Cane Sugar Production, p.. 79. ,-63. Labourers have to work-from sunrise to sunset. A d e t a i l e d d i s c u s s i o n of rate of wages i s outside the scope of t h i s t h e s i s . The ra t e paid i s 40 cents per day, which i s higher than that i n India,. Java, the P h i l i p p i n e s and lower than i n M a u r i t i u s * Cuba, Hawaii and Queensland. Economic E s s e n t i a l s I t i s learned that there are two d i f f e r e n t types of farming, namely " H i l l farming" and " F l a t farming 1*. In the f o r -mer cane i s c u l t i v a t e d on the h i l l y l a n d and "uba" i s the c h i e f v a r i e t y of cane grown there. F l a t farming i s predominant on the " r i v e r a l l u v i a l valley"-. In t h i s r e g i o n the cane v a r i e t i e s appear somewhat " s o f t " . Uba i s hardy and drought r e s i s t a n t . Most of the crop i s s o l d to c e n t r a l m i l l s by the European plan-t e r s . Formerly the price was mainly based on s t r a i g h t weight of the canes but at present the p r i c e i s f i x e d according to sucrose content. Rapid development i n the i n d u s t r y occurred a f t e r 1906, and i n 1918. the production balanced the consumption f o r the f i r s t time . A f t e r 192.5 c a r e f u l a t t e n t i o n was given to the me-thod of production and d i s t r i b u t i o n . On the other hand, the f a l l i n sugar p r i c e s on the world market caused a great l o s s , to the i n d u s t r y . The South A f r i c a n sugar also bore a severe l o s s on account of the competition provided by beet sugar. After.the year 1926-27 the export trend i s upward. I t may be i l l u s t r a t e d by the f o l l o w i n g t a b l e . * * Imperial Cane Sugar Research Conference , Juondon 19-31, p. 68 64 ¥ear Export 1926- 27., 67,000 tons 1927- 28 69,000 » 1928- 29 85,000 " 192 9-30 127,000 " 1930-31 195,000 " We f i n d that the question of Imperial preference i s of great importance* I t i s a l s o r e a l i z e d that the S.outh A f r i c a n sugar production depends g r e a t l y on the United Kingdom because the bulk of i t s surplus goes there and part goes to Canada. I n both c o u n t r i e s South A f r i c a n sugar has Empire preference . On the other hand, the other great sugar consuming c o u n t r i e s are w e l l p r otected. At the same time costs of production of sugar i n South A f r i c a are higher than i n the other sugar producing c o u n t r i e s except Queensland and Argentine. Besides t h i s , the crop matur-i n g p e r i o d i s longer. I t seems that the f u t u r e of the indus-t r y shows some u n c e r t a i n t y . This i s p a r t l y due to the former stated reasons and p a r t l y because export i s exceeding home con-sumption. The Imperial Cane Sugar Research Conference conclud-ed '''without adequate p r o t e c t i o n the South A f r i c a n sugar indus-t r y could not continue on i t s e x i s t i n g scale."" 1" The reason f o r p r o t e c t i o n i s l a i d down as f o l l o w s : becau.se of " i t s slowly maturing cane, the i n d u s t r y could not withstand even f a i r l o c a l I . I m p e r i a l 0 ane Sugar Research Conference, London, 1931, p. 67 6 5 competition from Java,. Cuba, and Europe w i t h s u b s t a n t i a l pro-t e c t i o n . M a u r i t i u s Although sugar cane was introduced i n t o M a u r i t i u s I s l a n d i n I65O by the Dutch and l a t e r by the French i n 17,50, never-t h e l e s s , the r e a l date of the establishment of the i n d u s t r y on a sound f o o t i n g under the E n g l i s h a d m i n i s t r a t i o n i s 1814. The i s l a n d had been p o l i t i c a l l y r u l e d by four European powers, namely the Portuguese, Dutch, French and E n g l i s h . The t o t a l production of sugar i n 1914 was 4 , 0 0 0 tons. This increased to 12 , 0 0 0 tons i n I 8 5 5 , and 1 2 0 , 0 0 0 tons i n I 8 8 5. In I 8 9 9 the annual output was 1 5 7 , 0 0 0 tons and 100 per cent was exported. The production i n 1914 increased to 2 3 9 , 0 0 0 tons. From then on with s l i g h t f l u c t u a t i o n up and down the annual nroduction remains about 240 , 0 0 0 tons. L i m i t i n g F a c t o r s (a) /Climate. The i s l a n d l i e s between 1 9 ° and 20° l a t i t u d e , south of the equator. I t i s almost as close to the t r o p i c of Capricorn as Cuba and Hawaii, '^'he annual r a i n f a l l ranges from 50 to 1^0 inches and i s heavy from December to A p r i l . The average tem-perature of M a u r i t i u s runs from 67 to 77 — n o t as high as i n Java. There are two d i s t i n c t p l a n t i n g seasons, f i r s t from A p r i l to November when the crop i s harvested a f t e r 22 to 24 months i n the ground, and secondly the canes are planted from 1* Imperial Cane Sugar Hesearch Conference, London; 1931, p.67 66 September to November; canes planted at t h i s season are har- • • vested a f t e r 12 to 14 months from the date of p l a n t i n g . (b) S o i l The s o i l of M a u r i t i u s may be described as " r i c h but very shallow averaging only 10 inches in,depth; beneath t h i s i s a barren s u b s o i l , apparently l a t e r i t i c , the surfaoe covered by s t o n e s . " 1 According to ^ a t t s , "the s o i l i s l a t e r i t i c derived from d i s i n t e g r a t i o n from the b a s a l t i c rock. This l a t e r i c s o i l i s u n d e r l a i n i n most parts by an u n f e r t i l e s u b - s o i l which appears to possess t o x i c p r o p e r t i e s . " 2 (c) Labour) The i n d u s t r y was b u i l t on slave labour* A f t e r the ab-o l i t i o n of s l a v e s , the East Indians were imported. At the present time 527,000 are Indian out of 580,000. In my survey I have come to the conclusion that "the labour shortage i s s e r i o u s l y a f f e c t i n g the progress of the sugar i n d u s t r y . " ^ There are two types of l a b o u r , namely "casual" and"permanent" The r a t e of wages i s 65 Gents a day* .Casual labourers earn about 78s . (Rs. 52) i n a month and the engaged labourer makes about 48s. (Rs. 52) a month. The wages i n 1925 were r a i s e d but at the present time they have f a l l e n to the pre-war l e v e l . Economic &ssentaials From the economic point of view M a u r i t i u s has quite a d i f f e r e n t p o s i t i o n from the other cane sugar producing coun-t r i e s . Considering e f f i c i e n c y Watts s a i d that " c u l t i v a t i o n 1. Imperial Cane 3u gar Research ..Conference , London 1931, p.39 2. Watts F . R e p o r t on the Mauritius Sugar Industry, p. 17. 3. Maxwell, Economic Aspects of Cane Sugar Production, page 77 67 of the cane i s c a r r i e d on with a high degree of s k i l l and e f f i c i e n c y , and that much care i s devoted to the c u l t i v a t i o n of the s o i l and to manuring of the crops, I n c l u d i n g the use of n a t u r a l manure and chemical f e r t i l i z e r s . " - 1 - In. reference to f a c t o r i e s he says "they are mostly equipped with machinery of a f a i r l y e f f i c i e n t character; maintained i n good order by very capable l o c a l engineers and mechanics." 2 .Besides t h i s , the M a u r i t i u s government has under c o n s i d e r a t i o n a scheme f o r b u i l d i n g a lar g e water r e s e r v o i r to be used f o r i r r i g a t i o n . The Department of A g r i c u l t u r e i s w e l l s t a f f e d and w e l l equipped and i s g i v i n g great a t t e n t i o n to progress i n a g r i c u l t u r e . Even with a l l these favourable c o n d i t i o n s the M a u r i t i u s sugar i n d u s t r y has been shaken many times by severe l o s s e s . I t i s also learned that the i n d u s t r y has face d f i n a n c i a l c r i s e s many times i n i t s past l i f e . Great B r i t a i n helped the Maur-i t i u s government f i n a n c i a l l y i n 1892, 1898, 1908 and 1 9 0 9 . Recently i n 1950 f u r t h e r a i d was granted* Let us see where l i e the causes of t h i s u n c e r t a i n t y and of the co n d i t i o n s e x i s t e n t there* I t seems t o me that the main blame may be placed on d i s a s t r o u s h u r r i c a n e s , which sometimes destroy the whole crop, f o r instance i n 189E. Next to the hurricanes can be placed, I b e l i e v e , the shallowness of the s o i l . This f a c t o r r e s t r i c t s deep ploughing and cane does not t h r i v e as w e l l as i n Java, thus the y i e l d per acre remains low and the cost of production high. The stony surface of the 1. Watts , Report on the Ma u r i t i u s Sugar Industry, p. 42, 2. Watts, I'., Report on the Maur i t i u s Sugar Industry, p. 4. 68 s o i l i s another reason which does not permit the use of labour-saving .machinery. I n a d d i t i o n to the above, i t s absolute dependence on f o r e i g n markets i s also important; when i t i s r e a l i z e d that cost of production i s higher there as compared with those i n the other cane sugar producing c o u n t r i e s , i t i s impossible f o r M a u r i t i u s sugar to compete on the protected market and even on the open market unless there' i s s p e c i a l preference. According to Watts the cost of production per ton i s £13:ls: 2d. and the s e l l i n g p r i c e i s £12:2s:10d. that i s , there i s a l o s s of about 18s:4d. per ton. Aside from t h i s , M a u r i t i u s imports r i c e from I n d i a to the value of £1,688,938 per annum yet she exports no commodity to I n d i a . According to the Commission's report the sugar i n d u s t r y cannot be replaced by any other. The h i s t o r y of Imperial preference begins i n I 8 9 9 , when the Indian market was opened by imposing a c o u n t e r v a i l i n g duty on "bounty fed" sugar. A f t e r the war the United Kingdom made p r o v i s i o n f o r the import of sugar, by g i v i n g an Imperial pref-erence of 4s:6d. per cwt. I n 1928 an increased import duty on high grade sugar and a reduced Imperial preference disturbed the sugar trade s e r i o u s l y . I n 1 9 3 2 , the Imperial preference was increased f o r a short time and reduced i n 1934. However the s i t u a t i o n i s a l l e v i a t e d somewhat on the Canadian market because of the preference on Im p e r i a l sugar. The i n d u s t r y i n M a u r i t i u s i s a l s o p e c u l i a r even the prosperous times are not easy because of the d i f f i c u l t y of obtaining enough labour. 69 F i n a l l y , I must not omit mentioning how the i n d i v i d u a l growers or p l a n t e r s are financed. £'or f u l l information see Apendix A. To r e f e r b r i e f l y to t h i s s u bject, a few p l a n t e r s operate w i t h t h e i r own c a p i t a l but others borrow from bankers or brokers commonly known as ""Bailleurs de.fonds" . The West Indies  H i s t o r y Since t h i s t h e s i s i s l i m i t e d , the w r i t e r would l i k e to discuss a l l the i s l a n d s of the West Indies together* The sugar cane was introduced there i n the l_5th cen-t u r y , during the r u l e of Spain, France and Holland, sugar cane growing was<not of much importance* The f i r s t date of importance i n the development of the sugar cane in d u s t r y i n the West Indies i s 16^4. At t h i s time the Dutch who were dr i v e n out of B r a z i l and who s e t t l e d i n the West Indies im-proved the q u a l i t y of the sugar. The United Kingdom was a great market f o r the West Indies sugar at that time but l a t e r i t s u f f e r e d by competition from the French c o l o n i e s . The i n -dustry was also hampered by a A-k per cent export duty end i n a d d i t i o n by ah import duty i n t o the United Kingdom. Never-t h e l e s s , d e s t r u c t i o n of S a n Domingo balanced a l l these d i s -advantages. Therefore, the production of West Indies sugar increased. In the l a s t quarter of the 19th century the sugar production was cut down because of the competition from the European beet sugar produced under a bounty system and under a c a r t e l , Consequently the p r i c e f o r the sugar i n the market f e l l below the cost of oroduction. 70 The c o n d i t i o n s changed a f t e r 1898 when Canada gave a p r e f e r e n t i a l tax of 25 per cent to Imperial sugar and when the c o u n t e r v a i l i n g duty against the bounty fed sugar was.- introduced i n t o I n d i a . Up to 1915 the sugar produced i n the West Indies went almost e n t i r e l y to I n d i a and Canada. The United States bought some West Indian sugar a f t e r 1899 but t h i s market was closed a f t e r the r e c i p r o c i t y agreement with Cuba i n 1903. A f t e r 1915 the United Kingdom absorbed most of the West Indian sugar. Canada gave a preference of $L per 100 pounds. The i n -dustry now Is more or l e s s dependent on the p o l i c y of Great B r i t a i n w i t h r e g a r d to I m p e r i a l preference. L i m i t i n g F a c t o r s • (a) Climate A n the, i s l a n d s of the West Indies are i n the t r o p i c zone and l i e between 10* and 1 7 ° north l a t i t u d e . The climate of the i s l e s i s s u i t e d f o r sugar cane production. The annual r a i n f a l l v a r i e s . Barbados i s d i v i d e d i n t o three zones, namely dry, wet, and intermediate and the annual r a i n f a l l i s 4 5 t 70 and 57 inches r e s p e c t i v e l y . In St. K i t t s , Antigua, S t . L u c i a and v i n c i the annual p r e c i p i t a t i o n i s r e s p e c t i v e l y 52,44,82 and 85 inches. The temperature on the whole i s of "great uniform-i t y from month to month". The crop season-is from February to June and i n B r i t i s h Guiana from September to December. (b) S o i l The s o i l of these i s l a n d s a l s o shows v a r i a t i o n . In B r i t i s h Guiana i t i s "heavy a l l u v i a l c l a y " . In Barbados "60 per cent of the colony i s covered,by black s o i l and the rem-aining;- 40 per cent by r e d " . 1 I t i s stated of S t . K i t t s that 1 Imperial Sugar Cane Research Conference, London, 1931, p. 73. 71 s o i l and climate are " w e l l s u i t e d to the c u l t i v a t i o n of "both sugar and c o t t o n 1 1 . 1 but " d e f i c i e n c y i n organic matter i s the p r i n c i p a l and most general s o i l d i f f i c u l t y . " 2 (e) labour T The f o l l o w i n g may be worth study i n connection with labour c o n d i t i o n s . *Table showing acreage and pop-u l a t i o n of various i s l a n d s * I s lands 'T ' o t a l 1 • a c r e s J n d e r c u l : i v a t i o n . - Under c a n e Total;:-.: p o p u l -a t i o n i f i n g a g e d P i n - " s u g a r i n d u s -t r y ; p e r -c e n t -a g e B r i t i s h Guiana 1 5 4 , 8 6 8 5 7 , 6 2 5 307,000 50,O0O; : 16 Barbados 1 0 6 , 4 7 0 67 ,682 5 5 , 0 0 0 168,000 34,000 20 St. JCitts 73,853- 22 ,600 1 2 , 5 5 0 : 18,000 6,000 53 • I n t l g u a 68;, 980 1 9 , 4 5 4 1 6 , 4 8 0 30,0,00 : 9 , 0 0 0 .51 St. L u c i a 152 ,32 0 72,000 4,500 : 57,000 6 , 9 0 0 12 T r i n i d a d 1 , 2 6 7 ,2 36 514,000 52 ,874 3 9 7 , 0 0 0 40,000 16 Jamaica 2 , 8 4 8 , 1 6 0 270,240 4 3 , 6 0 5 975 ,000 30,000, 5 The table shows that the labour c o n d i t i o n s are favourable and cheap. The r a t e of wages f o r the post-war period remained high but at the present time wages are at the pre-war l e v e l . The Imperial Sugar Cane Research Conference mentioned that the rates of wages are f o r a "man SO cents, a woman 18 to 20 cents, and 1. Report of the West Indian Sugar Commission, 1950, p. 74 |. Robertson, C. J . World Sugar Production and Consumption,p.48 * Report of the West Indian Sugar Commission 72 youth 10 to 18 cents per day. 1 , 1 The work i n the West Indies i s almost e n t i r e l y c a r r i e d on by hand* Economic E s s e n t i a l s I t might be of value to open the d i s c u s s i o n with a table This t a b l e w i l l show the percentage of sugar export from the various i s l e s . •Table showing f i v e year export of sugar, and i t s r e l a t i o n to the t o t a l export from the d i f f e r e n t i s l a n d s . I s l a n d s of the West Indies Year S t . A n t i - : St. St. Bar b- B r i t i s h T r i n - Jam-gua L u c i a Vincent • ados Guiana idad a i c a 1925 81 94 51 8.4 — — ; - • — I926 80 86 51 10.0 ~- --1927 81 95 51 12;. 0 ~- — 1928 76 97 : 44 14*5 95 60 20 19 I929 .67 95 42 I 7.I — --Though the f i g u r e s f o r Barbados, B r i t i s h Guiana, T r i n i d a d and Jamaica are incomplete, we understand that Antigua, St. ICitts and Barbados c h i e f l y depend upon sugar production, while B r i t -i s h Guina and St. L u c i a depend to the extent of 50 per cent of the economic l i f e on the sugar i n d u s t r y . Considering the table as a whole w i t h the e x c l u s i o n of T r i n i d a d and Jamaica, 70 per 1. Imperial Sugar Uane Hesearch Conference, London, 1931, P«75 * Report of the West Indian S u g a r ' C o m m i s s i o n cent of the economic l i f e of the West Indians, depends upon sugar production. A very small p r o p o r t i o n of West Indies sugar i s used f o r domestic consumption. I t c h i e f l y goes to f o r e i g n markets. At* present the cost of production I s high and domestic demand i s l e s s ; consequently the i n d u s t r y i s i n great danger of r e -duction. Considering the high cost of production, O l i v e r s t a t -ed that i t i s due "to the extravagant use of low paid labour. On account of cheap labour the work of cane c u l t i v a t i o n i s en-t i r e l y done by hand. furthermore the p r o s p e r i t y of the sugar i n d u s t r y i s jeopardized by the development of beet sugar production a f t e r the war and by the p r o t e c t i v e t a r i f f p o l i c y of various coun-t r i e s . A g a i n t -the West Indies suffered great l o s s e s from the change of p r e f e r e n t i a l import duty i n t o the United Kingdom. The import duty on high grade r e f i n e d sugar was increased and at the seme time the Imperial preference was reduced. Combined with the change i n t a r i f f p o l i c y the market p r i c e f o r sugar was decreased as f o l l o w s : *1929 l i s . 9 s/4d. per owt. 1930 10s* 2 i d . " " 1931 9s* 1 l / 4 d . " " As a r e s u l t of these m u l t i p l e reasons many growers aban doned cane c u l t i v a t i o n . The question of unemployment was an-t i c i p a t e d very f e a r f u l l y because there i s no other i n d u s t r y 1. Report of the West Indian Sugar Commission, 1930, page 44 * Imperial Sugar Cane Research Conference, London, 1931,p.7& 74 which could absorb labour. The United Kingdom helped the i s l a n d s by i n c r e a s i n g the Imperial preference. Barbados i s an outstanding cane breeding s t a t i o n i n the B r i t i s h Empire. There, they have extended the department of A g r i c u l t u r e and i t i s considered as a center of research i n the West Indies * I n t h i s i s l a n d an i n t e n s i v e method of c u l t i v -a t i o n i s used. A high q u a l i t y of molasses i s produced there. T r i n i d a d gained importance because of the T r o p i c a l College of A g r i c u l t u r e . Jamaica experiences some d i f f i c u l t y i n t r a n s p o r t a t i o n because cane i s produced on sc a t t e r e d farms. A good q t i a l i t y of •rum i s produced i n Jamaica and about a l l the production i s ex-ported. B r i t i s h Gulna besides producing s t r a i g h t sugar a l s o c a r r i e s on some by-product processes. She produces rum, molas-ses and malascut. Hum was manufactured i n the f o l l o w i n g quan-t i t i e s : 3,4-64,405 g a l l o n s i n 1919, 2,077,619 g a l l o n s i n 1924 and 1,571,371 g a l l o n s i n 1950. *he f o l l o w i n g are the dominant cane v a r i e t i e s i n the various i s l a n d s : D.625 i n B r i t i s h Gulna, B.H. 10(12) i n T r i n i d a d , B 6450 i n Jamaica, Ba U 5 6 9 i n St. i C i t t s , •Mevis, St. Jiucia and Barbados. The production i s marketed by i n d i v i d u a l s and by syndic-ates* Syndicates assure b e t t e r p r i c e s to producers than can be obtained by i n d i v i d u a l growers. The colony came i n t o the B r i t i s h Empire i n 1874. Sugar cane was introduced i n 1880 under the s u p e r v i s i o n of the Col-o n i a l Sugar r e f i n i n g Company M5&• The t o t a l production i n 1882 was 5,282 tons; t h i s doubles the next year. In I898 75 production increased to a l i t t l e l e s s than f i v e times t h i s amount. The production i n 1902 increased to 35 ,901 tons, i n 1911 to 75,000 tons. The trend of production remained Upward. Production reached a peak i n the year 1952-33 when the t o t a l output Increased to 155,000 tons. The i s l a n d i s i n the t r o p i c a l r e g i o n and i t l i e s between 15" 47.T- and 21" 4 r south l a t i t u d e . The climate of the i s l a n d i s "warm and moist and the termperature moderate. There i s an abundant supply of pure, water" S o i l can be considered as most f e r t i l e , and s u i t a b l e f o r a l l s o r t s of t r o p i c a l vegetation. "Up to 1916 labour was supplied from I n d i a . At the pres-ent time' labour supply i s inadequate and never completely meets the requirements e i t h e r i n f a c t o r i e s or f i e l d s . Most of the workers are land holders and t h i s makes the r a t e of wages l e s s important! The i n d u s t r y i s operated under the d i r e c t i o n of the C o l -o n i a l fugar R e f i n i n g Company L t d . The same company operates i n A u s t r a l i a and f i v e m i l l s are operated i n PijJ^-s. The t o t a l cap-i t a l i n v e s t e d i n the i ? i j l isugar i n d u s t r y i s 5,000,00.0. poUmds. A bonus at the r a t e of 3s.6d. per ton i s p a i d to cane growers. This provides the share of p r e f e r e n t i a l import duty i n the mar-kets Of the United Kingdom and Canada. Some sugar i s s o l d i n the Mew Zealand market. I n order to maintain the i n d u s t r y some Imperial preference i s necessary. As a r e s u l t of the cancel-l a t i o n of war bonus there was a r e d u c t i o n i n sugar production. 1. Imperial Sugar ^ane Research Conference, London, 1931, p. Q g 76 Chapter V l l The United States and I n s u l a r Areas In the preceding chapters the w r i t e r has dealt i n d i v i d -u a l l y with the p r i n c i p a l sugar producing c o u n t r i e s and with the United Kingdom. In t h i s chapter the subject of sugar pro-duction w i l l be discussed w i t h reference to countries such as the united S t a t e s , Porto Hico, Hawaii and the P h i l i p p i n e s . The United States Sugar cane c u l t i v a t i o n was known i n the United States i n the c o l o n i a l p e riod. I t was f i r s t introduced i n t o L o u i s i a n a i n 1751 but the i n d u s t r y developed i n 1794. In the e a r l y stages of the i n d u s t r y , the methods of c u l t i v a t i o n and processing were p r i m i t i v e . The t o t a l production i n I 8 5 I was recorded as 120,189 tons. The production then increased. In the year 1864-65 we f i n d a f i r s t c r i s i s i n the i n d u s t r y . ' In t h i s year production decreased from 235,756 tons to 5,331 tons. This sharp decrease i n the production was due to the American C i v i l f a r f o l lowed by the f r e e i n g of the Negroes. A f t e r that time the i n d u s t r y began to recover g r a d u a l l y . In the year I 8 9 4 -95 production reached 272,690 tons and at the turn of the cen-tu r y the annual output increased to 360,277 tons. The year 1917 marks the highest point i n production up to date. In t h i s year the output of sugar was 397,000 tons. Another c r i s i s i n the i n d u s t r y occurred i n 1926-27* 2he production of sugar had f a l l e n d i s a s t r o u s l y . I t f e l l t o 47 ,166 tons. The• p r i n -c i p a l cause f o r this.was the d e t e r i o r a t i o n of the purple and s t r i p e d canes. I t was a c c e l e r a t e d by the increase of mosaic 77 disease' and pests sueh as mouth borer. At the present time the i n d u s t r y has almost recovered. The production i n the year 1933 increased to 221,03.5 tons. The cane sugar area of the United States i s around the •Mexican Gulf and i n c l u d e s the s t a t e s of L o u i s i a n a , Texas, F l o r i d a , and Georgia. The t r a c t i s outside the t r o p i c a l zone. C l i m a t i c c o n d i t i o n s , t h e r e f o r e , are marginal. F r o s t occurs from December to February. This i s a l i m i t i n g f a c t o r f o r the i n d u s t r y . I t reduces the growing p e r i o d . The canes are plan-ted i n March or October and November and harvested from Nov-ember to December. The s o i l of the cane producing area i s f e r t i l e . The water supply i s s u f f i c i e n t f o r cane growth. The annual average r a i n f a l l i s bO Inches. In the l a t t e r part of the season, heavy r a i n occurs and t h i s reduces the sucrose content. The area i s subjected to hurricanes which often r i s e from the Gulf of Mexico and damage the e-anecrop severely. The h a r v e s t i n g and manufacturing period l a s t s from October to J anuary. Labour c o n d i t i o n s f o r the i n d u s t r y are very unfavourable since labour i s scarce and expensive. The present tendency i s to use labour saving machines. The Falkener harvester has been t r i e d i n F l o r i d a . Besides t h i s the United States Govern-ment t r i e d to solve:-the problem i n a great many ways. F i r s t an experiment was made i n g i v i n g l a nd to i n d i v i d u a l farmers who c o u l d , i t was hoped, meet the d e f i c i e n c y of labour them-sel v e s . Secondly, by importing South European "white labour", those who were accustomed to a warmer c l i m a t e . T h i r d l y , i n I909 convict labour was used to meet the labour requirements. 78 F i n a l l y , the use of machinery was adppted as the p r i n c i p a l method, but the problem i s s t i l l unsolved. Economic E s s e n t i a l s The United States sugar cane producers have t o compete with four cane sugar producing c o u n t r i e s , namely Cuba, Hawaii, Porto Rico and the P h i l i p p i n e s . Over these countries the United States has the advantage of a p o s s i b l e domestic market. Only over Cuban producers have the Americans an advantage of a Government p r o t e c t i v e p o l i c y . Economically, the p o s i t i o n of the United s t a t e s producers i s not stronger than that of t h e i r competitors, '^ he United States producers have disadvantages i n s c a r c i t y of labour and higher wage r a t e s . From the follow!: t a b l e we f i n d that the cost of production i n the United States i s higher t h a n " i n the other c o u n t r i e s . *Table showing the cost of production of sugar per pound •Countries Cost of production per pound i n 1952 United States 4,273 cents Hawaii 2 *7§7 cents Porto - W I G O 2.587 cents P h i l i p p i n e s 1 .862 cents Cuba I . 2 6 6 cents The above table shows that the cost of production i n the United States i s even more than three times higher than i n Cuba and the P h i l i p p i n e s and a l i t t l e l e s s than double that of Porto *The United States T a r i f f Commission Report, 1934 79 Rico and Hawaii. The United States producers are only able to compete i n the market w i t h the a i d of p r o t e c t i o n . The home i n d u s t r y has been protected since 1 7 9 4 . The d i f f e r e n t measures of protec-t i o n w i l l be discussed i n a l a t e r chapter. The p r o t e c t i o n f i r s t s t a r t s as an import duty. Then bounty was paid to the home producers and f i n a l l y , since 1897 the t a r i f f r a t e s are so much per pound according to the degree of p o l a r i s a t i o n . I t may be worth while to i n d i c a t e the percentage of the United States sugar i n the market. *Table showing the percentage -of the U.S. sugar used i n com. 190 9^ -13 7-9 192 6 1 .2 1921 6*7 I927 .7 1922 5 .4 I928 2*1 1925 4 . 5 I 9 2 9 2.7 1924 1.7 1930 2.9, 1925 2 . 5 1931 3 . 1 1932 2.6 The remainder of the sugar supply comes c h i e f l y from Hawaii, Porto Hico, the P h i l i p p i n e s and Ouba. The low percentage of 1927 represents the decrease i n production. *Uhited States I ' a r i f f Commission Heport, 1934 80 Hawaii  H i s t o r y The r e a l date of the i n t r o d u c t i o n of sugar cane i n t o Hawaii i s unknown. Captain C 0ok discovered the i s l a n d i n 1778 and he found that sugar cane was c u l t i v a t e d there at that time. The sugar Industry was developed i n 1835 but the r e a l advance was made a f t e r 1876* In t h i s year, the United States Government signed a r e c i p r o c i t y t r e a t y w i t h the i s l a n d . About 11,600 tons of sugar were exported during t h i s year. Under t h i s t r e a t y the raw sugar imported from Hawaii i n t o the United States was exempted from import duty. The r a t e of import duty was 40 per cent of the value; consequently the p r i c e of Hawaiian sugar was increased to t h i s extent i n the United States market. A great increase occurred i n the i n d u s t r y towards the end of the 19th century. 'The production Increased to 521,000 tons i n I898; that i s , there was a 60 per cent increase over a four year p e r i o d * Up to I905 the greater percentage of the cane area was under n a t u r a l c o n d i t i o n s of water supply. A f t e r t h i s time the use of i r r i g a t i o n was expanded g r e a t l y . I t made pos s i b l e an increase of the annual production. Hawaii i s outstanding f o r i t s t e c h n o l o g i c a l work. F e r t i l i z e r and various methods of i r r -i g a t i o n were used and b e t t e r cane v a r i e t i e s xvere selected. Careful a t t e n t i o n has been given to the c o n t r o l of diseases and i n s e c t s and pests* A n these a c t i v i t i e s made i t p o s s i b l e to increase the; y i e l d . Consequently, according to Robertson "the average y i e l d i n 1924 jumped from 4.646 to 6.110 short 81 tons. I n 1953 the EWA P l a n t a t i o n increased i t s y i e l d to 18.6 short tons per acre on 50 acres.! r l G l i m a t i c a l l y , the i s l a n d l i e s i n the t r o p i c a l b e l t between l 8 c and 2 2 " north l a t i t u d e . I t c o n s i s t s of eight i s l a n d s but sugar cane i s grown only i n Hawaii, Oahu, Maui, and iCouai. I t i s Impossible to average the annual p r e c i p i t a t i o n because o f the great v a r i a t i o n between the north, east and west. A heavy r a i n f a l l occurs i n the nor t h during the c o o l e r season* I n some places the annual r a i n f a l l goes up t o as much as 200 inches while i n the west i t may only be 2 inches. As the great part of the sugar cane re g i o n i s i n the leeward part of the country, i r r i g a t i o n t h e r e f o r e , seems necessary. Of course, nine-tenths of cane land today i s i r r i g a t e d . The annual temperature o f the i s l a n d remains between 72 £', and 74F. temperature shows very l i t t l e v a r i a t i o n . On the whole i t i s not as advantageous as i n Java. The use of i r r i g a t i o n has made possible p l a n t i n g at any time of the. year* There may be two p l a n t i n g seasons. •fl'ormerly the crop was harvested a f t e r two years but at the present time v a r i e t i e s have been introduced which can be harvested twice i n three years. A c c o r d i n g to Robertson the s o i l of Hawaii i s "formed by l a t e r i t i o decomposition of the b a s a l t i c l avas and i s predomin-a n t l y composed of dark; red c l a y and c l a y loams, and i s heavy but porous, r e t a i n i n g considerable f i n e organic matter and n i t -rogen, but g e n e r a l l y very weak i n phosphates.'" 1 The Imperial 1. Robertson, G. J . K o r l d Sugar Production and Consumption, p.66 Robertson, C. J.,World Sugar Production and Consumption, p. 67 82 Research Conference considered it a " r i c h , free working, and f r e e d r a i n i n g soil""*" Labour supply i n Hawaii i s u n s a t i s f a c t o r y . The i n d u s t r y has experienced shortage of labour. For t h i s reason wages per d a y are higher than i n any other cane sugar producing country except Queensland. The average r a t e of wages per day i s $ 1 . 5 0 . The labour i n Hawaii i s c l a s s i f i e d as, f i r s t , short term con-t r a c t labour; secondly,•long term contract labour. "Short term Contract" labour i s u s u a l l y contracted according to the nature and extent 'of the work. The r a t e of wages f o r such labour v a r i e s from $1 .50 to ^?4.50 per day. ^Long term contract" l a b -ourers are those who v o l u n t a r i l y b i n d themselves and agree to c u l t i v a t e and care f o r the cane on a d e f i n i t e area of land u n t i l m a t u r i t y . They are paid on t h e b a s i s of tonnage of cane pro-duced. Besides these there are other workers, namely, millmen, mulehandlers, rough carpenters, mechanics and helpers e t c . The wage sc a l e f o r these jobs ranges from |30 to $70 per month. Economic E s s e n t i a l s The p r i n c i p a l advantage enjoyed by the Hawaiian sugar i n d u s t r y i s that i t s product i s given f r e e entry i n t o the United S t a t e s , the greatest world market. Over 95 per cent of the t o t a l production i s sold on the United States market. The United States p o l i c y of decreasing the import from f o r e i g n countries r e s u l t e d i n an increased demand f o r Hawaiian sugar. The f o l -lowing t a b l e w i l l i l l u s t r a t e the s i t u a t i o n . 1. Imperial Research Conference, London, lage 41 83 •Table showing the percentage of the t o t a l production and percentage of consumption i n the United States. .fear percentage of U*S* con-sumption percentage o f t h e t o t a l production . imported to U.S. 1921 Tl>7 95.8 : 192=2 . 9-1 101.1 1925 9.6 96.6 1924 10.4 96.6 1925 11.$ 97.3 I926 10*9 94.6 1927 12.0 95-8 1928 12 .5 97,1 1929 15.5 93.2 1930 12.0 95.6 1931 14.7 97.6 1932 I 6 . 4 • 99-6 1935 100.2 The t a b l e i n d i c a t e s that Hawaiian producers are w e l l assured of a market f o r t h e i r product. On the other hand c o n d i t i o n s are not favourable because the cost of production i s higher than i n Cuba, the competing country. Other disadvantages are high t r a n s p o r t a t i o n charges and greater costs f o r i n l a n d h a u l -age * •United States T a r i f f Commission Heport 84 Porto Rico The sugar cane was introduced i n t o Porto Rico soon a f t e r the Spanish took possession. The i n d u s t r y under the Spaniards d i d not show any rap-id progress. The highest output under the Spanish was 100,000 tons. The export of sugar to Spain de-creased to 35,000 tons i n 1900. This i s because greater a t -t e n t i o n was paid to the import of c o f f e e . Other p o s s i b l e reasons are the a b o l i t i o n of s l a v e r y , and the increased com-p e t i t i o n from other sugar producing c o u n t r i e s together w i t h the e f f e c t of d i s a s t r o u s hurricanes* A f t e r the i s l a n d was incorporated with the United States i n I 8 9 8 , the i n d u s t r y made r a p i d recovery. The t o t a l production f o r the year 1917 increased to jj00,000 tons. The production was stimulated by the g r a n t i n g of f r e e entry to Porto Rico sugar by the United States whose p o l i c y g e n e r a l l y was one of p r o t e c t i o n . However i n 1924, the annual output of sugar f e l l on account of mosaic. In 1928 production again increased to 679,852 tons. Hurricanes i n I929 caused considerable damage to the i n d u s t r y . The i s l a n d i s rectangular i n shape and has a length of one hundred miles, and a breadth of 38 m i l e s . I t l i e s between 17° and 18° nacfch l a t i t u d e . I t Is a monotonous i s l a n d and con-s i s t s of a great many rows of h i l l s and v a l l e y s . The climate of the i s l a n d i s u n i f o r m l y warm and favourable f o r cane c u l t i v -a t i o n . The temperature ranges from 66° to 86° P. The r a i n y season l a s t s from A p r i l to December and heavy r a i n occurs dur-ing September and November. In these months the r a i n f a l l i s about 47 inches. The season during January and March i s known as the dry season. In t h i s season the r a i n f a l l i s only 10 inches. The i s l a n d i s subject to hurricanes which occur from J u l y to October. There are two p l a n t i n g seasons. The main crop i s planted from September to December. The canes planted i n these months are harvested a f t e r 14 to 18 months and u s u a l l y give a l a r g e y i e l d * The second p l a n t i n g season.is from Jan-uary to March. This crop i s harvested a f t e r 12 months. About 5 to 6 ratoons are harvested. The i s l a n d i s densely populated and therefore labour i s abundant and cheap. Porto Bieo has an advantage i n being able to enter i t s sugar i n t o the United States f r e e of duty. The exemption from Panama Canal dues also b e n e f i t s the I s l a n d * The cost of pro-duction i s higher than that i n Cuba. However, the United States p o l i c y of s e l f - s u f f i c i e n c y has made i t p o s s i b l e to maintain the sugar i n d u s t r y . At present a p o l i c y of c e n t r a l i z a t i o n i s being pursued i n the f a c t o r i e s . There are 42 c e n t r a l m i l l s of which 8 produce about h a l f of the output. The mosaic disease i s rather impor-t a n t , but the y i e l d of sugar has been increased by the i n t r o -duction of mosaic r e s i s t a n t v a r i e t i e s . The sugar export rep-resents the h a l f of the t o t a l export from the i s l a n d . The P h i l i p p i n e s Probably sugar cane c u l t i v a t i o n was introduced by the Chinese. In 1^20 when Magellan v i s i t e d the i s l a n d f o r the f i r s t time he found sugar cane c u l t i v a t e d there. Nevertheless, 86 i t was not u n t i l I85O that the i n d u s t r y was d e f i n i t e l y estab-l i s h e d . In 1816 sugar was exported f o r the f i r s t time and the t o t a l production i n 1881 was 2 0 0 , 0 0 0 tons. The Spanish r u l e d the i s l a n d up to 1898 and during the whole Spanish administ-r a t i o n the i n d u s t r y d i d not show any remarkable progress. This was because of l a c k of c a p i t a l , u n s k i l l e d labour and bad roads. The highest production year under the Spanish was I895 when the t o t a l export was 541 ,469 tons. A f t e r t h i s a r a p i d f a l l occurred. In 1901 the t o t a l production f e l l to 52,274 tons. This f a l l was due to the r e v o l u t i o n against Spain anditotthe n a t i v e s 1 a t t i t u d e towards any f o r e i g n government. Besides t h i s the low pr i c e of s i l v e r reduced the production. A f t e r the i s l a n d came under the j u r i s d i c t i o n of the United States the production of sugar increased very r a p i d l y . F i r s t a drawback of 25 per cent was given and l a t e r 25 per cent pre-ference was allowed o f f the f u l l duty. Then the P h i l i p p i n e sugar was imported free of duty i n t o the United S t a t e s . This brought about a r a p i d increase i n production. In 1916 the t o t a l output increased to 552,157 tons. Further a f t e r 1921-22 the production rose sharply and i n 1933 the t o t a l production was 1,061,955 tons. This development was mainly due to the United States p o l i c y . The United States provided the major amount of c a p i t a l and e s t a b l i s h e d l a r g e companies and f a c t o r i e s . The i s l a n d l i e s between I 5 0 and 28° north l a t i t u d e . Sugar cane i s c u l t i v a t e d i n the Negro and Luzon i s l a n d s . The climate of the east d i f f e r s from that of the west because of a c e n t r a l mountain range. I n the west we have the wet season followed 87 b y the dry season and the annual p r e c i p i t a t i o n i n t h i s t r a c t i s jjO inches. The r a i n y season l a s t s from June to October and the dry from November to May. This shows that the dry season i s longe r . I n the east the annual r a i n f a l l i s 20 inches. There i s not much r a i n from November to May. Thus i r r i g a t i o n i s necessary. The canes are planted from October to March and harvested from December to A p r i l . The i s l a n d i s subject to typhoons which occur between J u l y and November. Besides t h i s , drought and l o c u s t s cause great damage. The average temper-ature of the i s l a n d ranges from 2j>° C. to 28°Q. and there i s not much v a r i a t i o n . The s o i l of the i s l a n d i s a l l u v i a l and i s hard to work. labour i s cheaper than In any other sugar producing country but I n d i a and Java. The average ra t e per day i s 3j> cents. The work i n the sugar i n d u s t r y i s seasonal and l i m i t e d to p l a n t i n g the cane and h a r v e s t i n g . The workers are engaged by the agent who gets 10 per cent commission on the t o t a l amount of wages paid. The contract i s signed f o r 170 working days. The United States has changed the conditions of the i n -dustry from those ob t a i n i n g p r e v i o u s l y . They have set up a programme of c e n t r a l i z a t i o n i n the i n d u s t r y . Advance a l s o took place i n the i n d u s t r y a f t e r the establishment of the P h i l i p p i n e s N a t i o n a l Bank i n 1916. This f a c i l i t a t e d the f i n -ancing of the i n d u s t r y . The p l a n t e r s co-operated and organized a sugar a s s o c i a t i o n which takes care of the various phases of the i n d u s t r y . The i n d u s t r y made progress i n technique. New methods of e x t r a c t i o n were adopted and new v a r i e t i e s were 88 introduced* As a r e s u l t , the y i e l d per acre increased. As compared with Guba the cost of production.per pound of sugar i s higher but the i s l a n d has the advantage of free ac-cess to the United States markets. According to the new In-dependence B i l l the s i t u a t i o n may change a l t o g e t h e r . This b i l l provides that ten years a f t e r the date of the enforcement of the new c o n s t i t u t i o n , the import of sugar f r e e of duty from the P h i l i p p i n e s to the United States w i l l cease. I t i s i n the scope of t h i s aet that f o r the f i r s t f i v e years 800,000 long tons and j?Q,000 tons of r e f i n e d sugar w i l i .be allowed f r e e of duty and f o r the remaining f i v e years the i s l a n d s h a l l impose an export duty which would he equivalent to the United States import duty. The.export duty w i l l increase i n the f i r s t , sec-ond, t h i r d , f o u r t h and f i f t h years to 5 , 10, 1 5 , 20, 25 per cent r e s p e c t i v e l y . 89 Chapter VIII Other Gane Sugar Producing Countries A f t e r grouping the s e v e r a l cane sugar producing countries i n t o two c l a s s e s we s t i l l have other c o u n t r i e s which do not come i n t o e i t h e r and which do not c a l l f o r d e t a i l e d d i s c u s s i o n . The w r i t e r of these l i n e s has considered i t worth while to place them together i n t h i s chapter f o r the sake of convenience In t h i s chapter, t h e r e f o r e , there w i l l be b r i e f d i s c u s s i o n on B r a z i l , Peru, San Domingo, Formosa, Mexico, -%ypt and Argentine B r a z i l Sugar cane, was introduced i n the e a r l y part of the 16th century, but sugar production d i d not develop as an i n d u s t r y f o r 100 years. M i r i n g the 17th eentury, e s p e c i a l l y between 1624 and I654 under the Dutch a d m i n i s t r a t i o n , B r a z i l was the l e a d i n g sugar producing country i n the world. The i n d u s t r y was based on slave labour and t h i s continued u n t i l 1888. Under the Portuguese regime, the sugar production shows a d e c l i n e . From then on, i t was not u n t i l the war caused a r a i s e i n p r i c e s that the i n d u s t r y showed any amount of increase i n production. The g r e a t e r increase occurred between 1922 and 1933. The t o t a l production f o r the year 1950 was 1,020,00? metric tons. The sugar cane area l i e s i n the t r o p i c s between 4° and 21° south l a t i t u d e . The sugar canes are c u l t i v a t e d i n the northern provinces, namely Pernambuea, Alagoas, Sereipe and Pasatrabya and i n the c e n t r a l provinces, namely Babia, tfiode 90 The northern t r a c t of cane area gets r a i n from the north east trade winds. She dry season i n t h i s t r a c t extends from September-October to M a r c h - A p r i l . The c e n t r a l sugar cane area gets r a i n from the south-east trades and the drjr season extends from June-July to October-November. The r a i n f a l l as a whole i s s u f f i c i e n t . The s o i l and climate i n B r a z i l are i d e a l f o r cane c u l t i v a t i o n . Wages are low, but workers are i n e f f i c i e n t . Mosaic i s the p r i n c i p a l cane disease i n B r a z i l . The present tendency i s to replace the o l d v a r i e t i e s . P r i m i t i v e and. i n f e r i o r methods are s t i l l used i n c u l t i v -a t i o n and consequently the sugar y i e l d i s low. So f a r only very few m i l l s have been modernized. l a c k of c a p i t a l and un-s a t i s f a c t o r y t r a n s p o r t a t i o n are the main causes which hold the Industry back. The p r i n c i p a l market f o r i t s products i s the United Kingdom, Portugal and Belgium. Peru Sugar cane, was known durin g the period of the Spanish occupation. The f i r s t sugar manufacturing m i l l was erected i n I57O. The sugar i n d u s t r y bore a great l o s s i n 187.5 from the competition of Mexiean sugar and from the low p r i c e of sugar g e n e r a l l y . About 1900 the sugar production increased. The i n d u s t r y was e s p e c i a l l y stimulated by the opening of the Panama Canal. Between 1914 and 1920 there occurred a r a p i d increase i n sugar production. In the year 1930 when production was at a high l e v e l , the t o t a l production was 422 ,3^0 metric tons. 91 Peru l i e s between 3° and 19° south l a t i t u d e and i s i n the t r o p i c a l zone. There the canes are grown i n the narrow s t r i p between the Andes and the P a c i f i c Ocean. The annual temperature i s uniform. The highest temperature i s 95° 3?. and :JJhe.vlowest i s 52° f-.» As the sugar cane area i s almost e n t i r e l y on the P a c i f i c side and the annual r a i n f a l l i s very s m a l l , i r -r i g a t i o n i s necessary f o r the c u l t i v a t i o n of sugar cane. The cclimate i s v a r i a b l e because of the mountainous country. The canes are harvested a f t e r 20 to 24 months. P l a n t i n g can be done i n any part of the year. According to Robertson, i t has V a l l e y s o i l , deep sandy loams, w e l l drained and e a s i l y worked. A l l s o i l c o n d i t i o n s are favourable i n that there i s an adequate supply of n i t r o g e n , phosphoric a c i d , potash and lime. Labour i s u s u a l l y supplied from the mountain t r i b e s . Wages are low, but owing to m a l a r i a and T. B;. the workers are i n e f f i c i e n t . However, the use of machinery i s progressing. E f f i c i e n t methods of c u l t i v a t i o n are used, there i s c a r e f u l c o n t r o l of the ?/ater supply, no serious cane diseases are pres-ent and there i s e f f i c i e n t estate management. . The sugar from Peru g e n e r a l l y goes to two markets, namely Ch i l e and Great B r i t a i n . On the whole Peru i s away from the world sugar market and as a r e s u l t , costs of t r a n s p o r t a t i o n are h i g h . The absence of new cane v a r i e t i e s i s another d i s -advantage; the older canes are & i l l predominant there. The s c a r c i t y of c a p i t a l i s the p r i n c i p a l reason f o r not i n t r o d u c i n g the b e t t e r v a r i e t i e s * 92 San Domingo The i s l a n d i s i n the t r o p i c a l zone and l i e s between 17° and 20° north l a t i t u d e . I t i s mountainous and has three sep-arate mountain ranges. These mountains are separated by wide p l a i n s and extend from east to west. P o l i t i c a l l y , the i s l a n d i s d i v i d e d i n t o two r e p u b l i c s , namely, the Kepublic of San Domingo and the Republic of H a i t i . The sugar production i n H a i t i i s not very important, while i n the other i t i s important. In the Republic of San Domingo, the sugar canes are c u l t i v a t e d hear San Pedro and de Macoris. The climate of the i s l a n d i s moist and hot. The seasons are p e r i o d i c a l l y wet and dry. The annual p r e c i p i t a t i o n i s about 60 inches and occurs from May to December. The canes are planted from June to October and the h a r v e s t i n g period l a s t s from December to A p r i l . I t i s found t h a t i r r i g a t i o n i s necessary. The i s l a n d i s subject to hurricanes and earthquakes which cause great damage. The hur-ricane period u s u a l l y expends from J u l y to October* With r e f -erence to the s o i l of the i s l a n d , Robertson says, "The most f e r t i l e s e c t i o n i s i n the n o r t h , on the black loams of the Veg Real i n the Olbao v a l l e y . " 1 Labour i s u s u a l l y imported from the West Indies during the harvest time. I t i s obtained cheap-l y , the usual r a t e s paid being 50. to 70 cents per day. On account ©f m a l a r i a e f f i c i e n c y i s very low. The older v a r i e t i e s of canes are being replaced with B. H. 10(12) and S. 0 . 12(4). Mosaic i s a p r e v a i l i n g disease, but i t i s kept under c o n t r o l . The canes are cxxltivated under the Colony Farm sys-tem. The production increased sharply during 1922-33. IN 1. Robertson, C.J. World Sugar Production and Oonsurnption, P.77 . ' 93 1932 production reached i t s high l e v e l , that of 4 4 8 , 5 6 3 tons. There are 15 a c t i v e p l a n t s which produce 300,000 t o ' 3 5 0 , 0 0 0 tons. The l a r g e s t part of the in v e s t e d c a p i t a l i n the sugar i n d u s t r y comes from the United S t a t e s , next l^o&xbOuba^hsthen •Porto Rico or European c o u n t r i e s . The sugar i s c h i e f l y expor-ted to Canada and the United Kingdom. As the cost of producti i s low, the i n d u s t r y may expand. Formosa There i s hot very much to discuss i n the h i s t o r i c a l development of the sugar i n d u s t r y i n Formosa. The i n d u s t r y shows a gradual increase under Chinese s u p e r v i s i o n . A f t e r Japan took over the i s l a n d the i n d u s t r y made r a p i d progress. In 1906 the f a c t o r i e s were modernized. The output of the l a r g e s t f a c t o r y i s 3 , 0 0 0 tons. The production i n 1931-33 increased to 9 8 9 , 0 0 0 tons. The canes are grown i n the c o a s t a l area which gets r a i n f a l l from the summer monsoons. The crop i s harvested from November to May* The i s l a n d i s subjected to f r o s t s , typhoons and sometimes to f l o o d s . These cause great damage to the i n d u s t r y . A p r i n c i p a l v a r i e t y i n Formosa i s P.O.J, which i s spreading very r a p i d l y . The main point which I should l i k e to emphasize i s that the sugar i n d u s t r y i n Formosa was developed e s p e c i a l l y to sup-p l y raw sugar f o r Japanese r e f i n e r i e s . The Japanese Govern-ment pays a bonus to the cane c u l t i v a t o r s who s u b s t i t u t e t h i s crop f o r r i c e . This i n d i c a t e s that Japan i s t u r n i n g towards s e l f - s u f f i c i e n c y . She i s aiming to secure her sugar supply w i t h i n the Empire. 94 Mexico The f i r s t sugar m i l l was erected here i n I5SQ. However, not u n t i l the t w e n t i e t h century d i d the sugar cane i n d u s t r y show any improvement. We f i n d steady increase i n the l a s t decade. The production i n I933 reached 209,000 tons. The canes are grown i n v r a r i o u s p a r t s of the country and under var-i a b l e c o n d i t i o n s . The hulk of the cane i s grown on r i c h black s o i l . The c l i m a t i c c o n d i t i o n s and s o i l are s u i t a b l e f o r cane production; labour i s cheap and p l e n t i f u l . There i s not serious disease. The main point which a r i s e s there at the present time i s that the production exceeds the home demand and d i s -posal of the surplus i s a problem. Sgypt The sugar i n d u s t r y i n Egypt, e x i s t e d i n the e a r l i e r cen-t u r i e s . Under the Arabs i t gained importance i n trade, but during the Middle. Ages the i n d u s t r y remained disorganized. I t was re-introduced i n the 19th century. The f i r s t m i l l was b u i l t i n I858 and systemic development occurred a f t e r ten years. In 1&97 the Societe General des Sucreries et de l a K a f f i n e r i e d'Egypt was organized and the whole sugar i n d u s t r y swas consol-i d a t e d under the s o c i e t y . Canes are grown i n the v a l l e y of the K i l e . The s o i l of the t r a c t i s a l l u v i a l , heavy c l a y . N i l e f l o o d s help to main-t a i n the f e r t i l i t y . . $he s o i l seems low i n nitrogen and humus. P.O.J. 105 i s a dominant v a r i e t y there. The government of tgypt has adopted, a p o l i c y of s e l f - s u f f i c i e n c y . I t imposed sin import duty on f o r e i g n sugar and prepared to subsidize 95 home producers. Argentine Sugar eanes have heen c u l t i v a t e d there since I67O, hut the i n d u s t r y d i d not enter the commercial phase u n t i l 1876. I n ' t h i s year, the r a i l w a y l i n e was f i n i s h e d . Thus, transpor-t a t i o n was provided which made p o s s i b l e the expansion of the i n d u s t r y . A f t e r 1918, the sugar production shows a great i n -crease. In the year 1926 I t increased to 475,000 metric tons. The production now i s at a high l e v e l * The canes are c u l t i v -ated i n the northern part of the country. They are planted from J u l y to October. U s u a l l y i r r i g a t i o n i s made use of, be-cause there i s a dry season at the planting: time, Harvesting i s c a r r i e d on from June to September. The i n d u s t r y s u f f e r s g r e a t l y from f r o s t , from diseases such as top r o t and from pests such as borers. The s o i l Is loam and r i c h i n humus, v/ith high n i t r o g e n content. P.O.J, i s the p r i n c i p a l v a r i e t y and the older v a r i e t i e s are completely replaced. At the present time c o n d i t i o n s are not favourable. Pro-duction exceeds consumption and hence a surplus has begun to accumulate. In a d d i t i o n the cost of production i n Argentine i s higher than i n many other c o u n t r i e s . In order to maintain a minimum p r i c e f o r sugar, the government p r o h i b i t e d the im-port of f o r e i g n sugar and at the same time r e s t r i c t e d the su-gar production. % Chapter IX Beet Sugar Producing Countries The map of the world on page ,10 shows that sugar beets are grown i n almost the whole of Europe, i n the United St a t e s , Canada, Sou.th Argentine, South A u s t r a l i a and Korea ( i n Japan). Tlie percentage of. sugar produced i n these countries i s very ' small i n r e l a t i o n to the world trade. I n other words i t i s used i n the domestic market and beet sugar i n d u s t r i e s are e s t -a b l i s h e d mainly at the expense of the governments i n order to reduce the import. Because of the small part played i n the sugar trade by beet sugar, and al s o because I t i s not i n the scope of t h i s t h e s i s t o go i n t o much d e t a i l , the w r i t e r w i l l deal with a l l the. beet-sugar c o u n t r i e s i n t h i s chapter. .  The main p o i n t s under d i s c u s s i o n w i l l be the l i m i t i n g f a c t o r s , the production of va r i o u s c o u n t r i e s , and the a t t i t u d e of some prin-» c i p a l c o u n t r i e s towards the : industry'* L i m i t i n g F a c t o r s The requirements of beet during the crop season are not uniform. They vary as to the period of ha r v e s t i n g . These periods are f i r s t , from A p r i l to the middle of June, second, from the middle of June to the middle of August and t h i r a , from the middle of August to September, October and November. I should l i k e to give the r e s u l t of an experiment dealing w i t h temperature, sunshine and r a i n f a l l , f o r the crop season i n each month from 1921 to 1926. 97 © .. •H St fa 60 o 3 4 = -H o <:j O tH fa © 'd xl © +> H <d 6 0 • 5 d CO -H fa *d c3 60 bo d « 03 -H r H ^ - H 0 o3 r> 01 © o , fa • O - 'Dr. fa a. H O s5 - H O - H 4 = <d -© o x: o . -p O " 'H * H O + 3 03,, 4= g O • © 4 3 fa O fa cs3 o ftp fa • H '" % « : QD C D o d > in © o ©"xlM 6 . 0 4 = * ^ C J fa <d 4 * © d o3 > 03 •« fa * o5 © N O © X l CVJ l v 4 = O N t H X i fl O a3 •rl-P 0 O H <H' OJ o O N r H ra a +?• ,.. fa o iH « H S X ! N O O J O N CVJ O N | H CVJ O N r H to CVJ O S r H CvJ CM ON| H H .el -UTig BJCTLOg UT38W seijoui H N O O O N ^ - C O < t C O C O N O L A Cvl r—I O N C~-GO • • * • • • » • t H H CvJ i H t O H cvl C — L A L A O N O N O r-J C " » •» ..• • • LfN ••. .» N © N O C O O O N e«<^cvj t > L A t O t ~ C O N O O N<<h r — ririHri O N r - H t O t O x + O N O N t D O N •• * » * • » •» . O N Q C ~ - t O H C--NO r H "tf L T \ L A N O V O L A * t <^ © U T t [ S -xms Nt ON p-j OVO tO i—| Cvl C O < * H K ) t - r i L A O * • • • . « .« H tQ CvJ H tO cvj CvJ U 3 3 © ] f ©xixqs -•cnag sjrnoj; cre-©w/ C O H H ' ^ d * O O H to -» « • • • • r -^ e N O O co l A i - H t O •• <tf H Vt* C O C — O O I fxt^-' r l r l r l H H H C— C O N O O N C O N O O C — H L f \ t 0 c 0 t 0 O t 0 O 0 0 I X \ I T \ N O V O L T \ L f \ t O CVJ t O O N , H c- cvj ^ 4 CVJ ^ ONO r)VO O t O • . e R • e • H C V J cvl t Q cvj H © L f \ l A C ~ - 0 N O ^ C v J • • » • • .» Cvl N O N O C O 0 N N O LT\CX) cvj H l A i A O H M O H H H H H H - u n S SJT10JJ - 5 1 1 ©uxxrs -tmg SJUOJJ •dinex ssqonx") m m S J T I O T I arasx LA L T \ C O C - CVl H O LAI • • • • • e .« » L T \ t 0 C ~ - O 0 0 t - O ' s 3 ' •\t LA IX\NO ( A L A L A c v j c v j t r - ^ o N C v j N O t O c — H c o o c v j c v j N i - t O • * v« • • . • • « . « H t O t O cvl Cvj r H Cvl N O C O ^ C V J N O C — r l v O G N O N C O t r -*** LA to C O H cvi a L A O to c— LAI r-i H r-i r-i r-i r-i N O "s* t O L A L A I A L A cvl • * • • L * Y • « L A O N L f ^ s J * O N U S ^ O N C O <t L A N D l A l A * * tO C — N O N O C — O t O N O Cvl C O r H C O t O L A t O f - O N J e * O • • Ki> -# cvj rt t O N O CO H O 10 t— t O O N o to • o • • « 9 O N C O C V J C V ! C*- ^ H H H H C V J tO * C 0 - C O N O r H C V J C V J r H H N O r H C O i— I CVl O N C O O N C O »' ' • . " # • . « « * • e C V I L A O C ~ - N O N O C V J •x* L A L A L A L A l A * ^ ^t-NO L A * 5 J - O c v j C v J O N t O O t O ^ L A ONNO t O O i—1 H to Cvj r H r H t O O O O t r - O N ^ > s j -« '*' • • • • • C V J C V J L A N D N O O N N O t O H C V I C V J C V J r H r H r H C O C V J C O t O O O O N C v l » * « « • • • C - ^ - t O c o L A r H C O O N ] • ^ J - L A L A N O v£> L A L A t O • • |>s • 4 S • * fa 0s ti H 60 D . 4 S ! > C u c S p . d f H f l B O O L A O C O O N o C O H C V J C O cvl to H C O I* vi-es r H O N O O N N O to O N O N C M LA to C V J N O IK o _5lL fa 6 0 © d © ra pq o o « G -r H N O to N O r H N O H L A H N O * N O C O N O LA r H fa^ © © fa t a <5J 4 = 6 p o d o <! cd oca *HW • 98 Ji'rom the t a b l e on the proceeding .page we f i n d that the best r e s u l t s were obtained i n 192b. l u r i n g J u l y and August high temperatures are d e s i r a b l e . Below 40° i s not favourable f o r germination. With regard to r a i n , an abundant supply i s required i n June, J u l y and August and a moderate amount during . the germination and h a r v e s t i n g periods. Excessive r a i n en-courages weeds and causes excessive top-growth and lowers the sucrose content. I t also causes the spread of fungus diseases. Considering the i d e a l climate f o r beet sugar, Robertson w r i t e s that i t r e q u i r e s a season of "moderate r a i n f a l l f o r the prep-a r a t i o n of the seedbed and f o r germination t followed by abun-dant r a i n f a l l c o i n c i d i n g with maximum temperature and thus favouring vigorous growth, and f i n a l l y a period of g r a d u a l l y d i m i n i s h i n g r a i n f a l l , the l a s t month being quite dry".-^ C Q O I n i g h t s and warm days favourable« This makes f o r a r a p i d flow of sugar towards the r o o t s and increases the sugar content. S o i l . Medium loam i s considered the best type of s o i l f o r sugar c u l t i v a t i o n * S o i l should a l l o w f r e e movement of water and should have enough organic matter to hold s u f f i c i e n t moisture. A c i d or sour s o i l i s not favourable, while s l i g h t l y a l k a l i n e s o i l or s o i l which i s n e u t r a l i n r e a c t i o n gives b e t t e r r e s u l t s , trood drainage i s a l s o r e q u i r e d . I should l i k e to. give the r e s u l t s of an experiment which was c a r r i e d out i n 192 3 and 1924 to t e s t the a f f e c t of various types of s o i l on the sucrose content. 1. Robertson, C.J., World Sugar Production and Consumption,p.18 99 • * % b l e Bb.-Qw.ing sugar content per cent and tons of sugar beet -per acre. Type of S o i l 192 5 .. 1924 Sugar content per cent Tons per acre sugar content per cent Tons per aere Sandy loam 17.44 '7.00 17.65 11.80 Glay loam I6.70 6 ?00 17 .80 15.85. O o l i t i c Limestone 17.20 5.84 17.70 8.75 A l l u v i a l Loam 16.40 14.40 I7.OO : 8.30 Peaty Fen I5.5O 9 • 50 -1=6 ••8:0 • 10.00 Black 15,76 8.43 14*65 12.80 . , - '••••"'•••••,. '., . The above t a b l e i n d i c a t e s that c l a y loam sandy loam and a l l u v i a l loam give b e t t e r r e s u l t s than other types of s o i l . Labour Beet sugar c u l t i v a t i o n r e q u i r e s a great amount of labour. I t i s considered a somewhat i n t e n s i v e type of farming. The demand f o r labour i s high during the crop season. Pressure of work i s greatest i n the f o l l o w i n g a c t i v i t i e s ; singling],- .block*--ing or chopping out the other root crops, l i f t i n g and topping the beets and c l e a n i n g them. The work i s also d i f f e r e n t i a t e d according to whether -It r e q u i r e s s k i l l e d or u n s k i l l e d labour. The s i n g l i n g i s not s k i l l e d labour. I t i s c a r r i e d on by hand and women and c h i l d r e n ' c a n be employed f o r t h i s purpose. Blocking r e q u i r e s s k i l l and strength, Men workers, t h e r e f o r e , •2- f o w l i n g , Sugar Beet and Beet Sugar, page 97 100 are needed. Experiments have been t r i e d to replace manual labour w i t h machinery f o r cleaning and topping . The use of machinery has been s u c c e s s f u l up to a c e r t a i n point. Economic E s s e n t i a l s . • F r o m the chart on page 12 we w i l l f i n d that the production of beet s u g a r - f e l l during and a f t e r the Great War u n t i l the production of beet sugar i n European countries i n 1919-20 was 2 , 5 6 9 , 9 2 3 metric tons. This shows a decrease by almost two-t h i r d s of the amount produced i n the year 1913-14. The causes of t h i s decrease are the f o l l o w i n g : f i r s t a c t u a l h o s t i l i t i e s between the c o u n t r i e s , part of which were i n the region where the beets were grown i n t e n s i v e l y ; secondly the shortage of labour i n a l l the b e l l i g e r e n t countries;, and t h i r d l y , many countri e s saw the n e c e s s i t y of supplying the n a t i o n a l food from t h e i r own c o u n t r i e s even at the cost of beet sugar. The t a b l e i n the Appendix i n d i c a t e s the recovery of beet sugar production i n European c o u n t r i e s . We see from t h i s t a b l e that the year 1927-28 shows the t o t a l production at about the same l e v e l as i n 1915-14. The recovery period of the European beet sugar i n d u s t r y s t a r t e d In 1921. At that time the i n d u s t r y again advanced w i t h state encouragement. The same pr o t e c t i v e measures such as, export bounty, s u b s i d i e s , p r o t e c t i v e t a r i f f and the C a r t e l system as i n the l a s t part of the nineteenth century, were adopted by the various Suropean governments. Na t i o n a l f e e l i n g i n each country was i n t e n s i f i e d very r a p i d l y and a high t a r i f f w a l l was erected around the industry* The p o l i c y of high 101 p r o t e c t i v e t a r i f f s adopted by the various countries was d i r e c -ted against t h e i r competitors w i t h i n Europe and against the p r i n c i p a l cane sugar producing c o u n t r i e s such as Java, Cuba, e t c . I n 1950 the t a r i f f r a t e s i n Europe were increased from 75 to 100 per cent of the Wholesale sugar p r i c e . The f o l l o w i n g w i l l i l l u s t r a t e the amount of the p r o t e c t i v e t a r i f f s * • T a r i f f r a t e s on Sugar, 1950 Country Custom duty per cwt. France l i s . J?d. Great B r i t a i n l i s . 8d. United i t a t e s of America 12s. 2d. I t a l y 14s. 5d-r Hungary 15s. 5d. Germany 15s. l i d Russia 19s* 5d. Czechoslovakia 21s. 2d. Poland 2 5s* 4d. Germany, Poland and Czechoslovakia have- a G a r t e l system. Through the c a r t e l the p r i c e of sugar i s f i x e d i n the home market a t a high l e v e l and they export below the cost of pro-duction. In other words they '-'dump" t h e i r sugar on f o r e i g n markets. In I925 the United Kingdom adopted the same p r i n c i p l e s and s t a r t e d to subsidize r e f i n e r i e s and beet growers. The p r i n -c i p a l argument i n favour of these measures i s s e c u r i t y against dependency during war; i n other words they are s eeking s e l f -* World A g r i c u l t u r e and I n t e r n a t i o n a l Survey, page 185. 102 sufficiency.*.' The "beet sugar i n d u s t r y gives increased employ-ment to the r u r a l p opulation. The i n d u s t r y Is considered, more b e n e f i c i a l where the population i s dense and i t gives cash and quick r e t u r n s , t h e r e f o r e , the presence of the beet sugar i n d u s t r y i s e s s e n t i a l f o r small h o l d e r s . From the a g r i c u l -t u r a l point of view i t i s necessary f o r the crop r o t a t i o n sys-tem because i t increases the p r o d u c t i v i t y of the s o i l . In "World A g r i c u l t u r e " i t i s s t a t e d t h a t European s t a t e s i n s i s t upon t a r i f f s because c u l t i v a t i o n of beet sugar i s necessary f o r an i n t e n s i v e a g r i c u l t u r e . Further "the sugar f a c t o r i e s en-able many f i e l d labourers to earn good wages during the winter months when otherwise, owing to the c l i m a t i c c o n d i t i o n s , they would be unemployed.". The f o l l o w i n g t a b l e shows the d i f f e r e n c e i n r e t a i l p r i c e s of sugar i n v a r i o u s c o u n t r i e s -Countries Pence per pound * L t a l y 6f Gze.oho Slovakia 4-g Holland 4 Poland 5 5 / 4 France 5 5 / 4 Germany 5 l / 4 U.S.A. 5 . 3 / 4 Belgium 2-g-Great B r i t a i n 2-fe Consumers i n I t a l y have to pay three times as much per pound as do consumers i n Great B r i t a i n . This i s mainly because of the p r o t e c t i v e measures. 1 League of Nations Economics Organization, The World Su°-ar Situation,1929,p. IS. to * World A g r i c u l t u r e , An I n t e r n a t i o n a l Survey, p. 183. Chapter K A l l the European "beet sugar producing countries except the United Kingdom have been discussed i n the preeeeding chap-t e r . The main subject of t h i s chapter w i l l be a b r i e f o u t l i n e of the beet sugar i n d u s t r y i n the United Kingdom, Canada, and the United St a t e s . The United Kingdom In the second quarter of the 19th century, some i n d i v i d -u a l s t r i e d to e s t a b l i s h the beet sugar i n d u s t r y i n the United Kingdom. At that time, the government d i d not encourage the beet growers or sugar manufacturers. The manufacturing of beet sugar was of minor importance and i t g r a d u a l l y disappeared. In. 1909, as a r e s u l t of many experiments c a r r i e d on i n the e a r l y years of the 20th century, i t was found that sugar beets could 'be s u c c e s s f u l l y grown i n t h i s country. In 1912, however, some Dutch people erected the f i r s t f a c t o r y at Cantley i n Nor-f o l k . The f a c t o r y c l o s e d i n 191^ because i t was running at a l o s s . In 1920, the f a c t o r y was reopened by a company of com-bined E n g l i s h and -i-uteh manufacturers. The government consen-ted to remove the e x c i s e duty i n 1921. This provided a pro-t e c t i v e margin of 25s:8d. per cwt. The f a c t o r y , t h e r e f o r e , showed a p r o f i t f o r the f i r s t time i n 1922. I t was apparent that even more assistance would be neces-sary, and i t was d e f i n i t e l y understood that i t would be im-p o s s i b l e to operate a beet sugar f a c t o r y without government a i d . In 1913,iherefore , a sum of £11,000 was granted from the 104 : development fund, the purpose of which was to finance exper-iments i n the c u l t i v a t i o n of heets. L a t e r i n 1917, on the recommendation of the A g r i c u l t u r e P o l i c y sub-committee of the Reconstruction Committee, an estate was purchased with govern-ment as s i s t a n c e at the Jielham E s t a t e i n Nottinghamshire. The money was advanced from the d.evelopemnt fund f o r t h i s purchase. The f a c t o r y was set i n operation i n 1922. In short, the i n -d u s t r y was e s t a b l i s e d but government xe^fr&!mr&$mm&s necessary. The p r o t e c t i v e p o l i c y of the United Kingdom w i l l be d i s -cussed i n a l a t e r chapter* In order to show the main currents i n the development of beet sugar as an i n d u s t r y the w r i t e r wishes to mention here only the d i r e c t assistance that was pro-vided by the government to the beet sugar producers on the b a s i s of the amount of beet sugar produced. The Industry was safeguarded by the customs duty up to 1924 but i n that year i t was reduced from 2j>;8d. to l l s : 8 d . per ewt. However, since then the government has granted d i r e c t assistance to the home produced beet sugar on a descending scale over a period of ten years. For the f i r s t f our years the a i d was to remain at 19s: 6d. per ewt. and i t was then to be reduced to 15s. A f t e r three years, a f u r t h e r r eduction i n a i d to 6s.:6d* was to be made and a f t e r the tenth year i t would be removed al t o g e t h e r . On the other hand, an excise duty equivalent to the p r e f e r e n t i a l customs duty was imposed f o r the same per i o d , i'or d e t a i l s see the table on page 143 , A"s a r e s u l t of t h i s assistance the indus-t r y progressed, as i s i n d i c a t e d from the f o l l o w i n g t a b l e . 105 *Table showing the beet sugar production from 1924 to 1935. If ear Tons of r e -f i n e d sugar • Xear Tons of r e -f i n e d sugar 1924-25 25,885 1930-31 417,940 1925-26 51,745 1931-52 246 v452 1926^27 153 ,296 1932-55 324,563 1927-28 189,149 1955-54 455,337 1928-29 193 ,644 *1954-55 602,000 192 9-30 288,524 •approximat e. From the above t a b l e we f i n d that production increased very r a p i d l y * In 1934, i t increased to a l i t t l e over twenty-f i v e times that of 1924. The maintenance of the in d u s t r y i s advocated from the a g r i c u l t u r a l and from the n o n - a g r i c u l t u r a l points of view, and f o r i t s value as a r e l i e f measure. Considering i t from the a g r i c u l t u r a l point of view, we f i n d that beet sugar c u l t i v a t i o n provides f o r a good r o t a t i o n system, i t increases the f e r t i l -i t y of the s o i l , i t i s a cash crop, e t c . From the hon-agrie-u l t u r a l point of view, i t reduces the dependence of the country upon imports, i t i s valuable i n the event of war, i t i s ben-e f i c i a l to connected i n d u s t r i e s , and i t provides s p e c i a l oppor-t u n i t i e s f o r the small h o l d e r s . F i n a l l y , i t s value as a r e l i e f measure i s s t a t e d i n the rep o r t of the "united Kingdom Beet Sugar I n q u i r y , that "Sugar beet has s u b s t i t u t e d a paying crop '* Report of the United Kingdom Sugar Industry I n q u i r y Com. p.22 f o r the other u n p r o f i t a b l e r o o t s , and so become the support of the c e r e a l crop."^ On the other hand, the cost of production of beet sugar i s twice as much as that of cane sugar* The r e l a t i v e costs are 12' to 14 per ton f o r beet and 5 to 7 per ton f o r cane sugar. Therefore, the enquiry committee, although r e a l i z i n g the above-mentioned advantages s t a t e d that "there seems no reason to suppose that t h i s country i s l i k e l y ever to be a s p e c i a l l y cheap producer of beet, having regard to the labour requirements of the crop." I t i s learned from the statement attached to the report that the beet sugar i n d u s t r y i n the United Kingdom has been a s s i s t e d both by subsidies and by the remission of excise duty. This i s shown i n the f o l l o w i n g ; * -Direct Subsidy £50,112,077 Abatement of Excis e Duty £10.180.000 To t a l Assistance £40,2 92,077 Sale of Manufactured product £26,648,274 To t a l r e c e i p t s , saLe and assistance £66,940,5^1 Cost of Beet £40,321,025 Cost of manufacturing £15,424,207 Factor y t r a d i n g Margin £11,195.119 £66,940,351 • Report of the U.K. Sugar Industry Enquiry ••Committee.., p. 66 Report of the United Kingdom Sugar Industry.Enquiry, TableXX 107 •From the statement above i t i s c l e a r that the beets f o r sugar manufacturing were paid f o r by the government and the margin of p r o f i t i s a l i t t l e l e s s than 50 per cent of the man-u f a c t u r i n g c o s t , i'he annual t o t a l production i n the United Kingdom f o r the period under survey i s included i n the d i s -cussion of production i n the whole B r i t i s h Empire and w i l l be discussed i n the s t a t i s t i c a l s e c t i o n . Beet sugar' i n .'Canada The foundation' of the beet sugar i n d u s t r y i n Canada was l a i d on the same p r i n c i p l e as i n the other beet sugar producing c o u n t r i e s . In 188.9, the Ontario A g r i c u l t u r e College proved by experiments that the s o i l and climate of Ontario were favour-able f o r the' production of sugar beets with sugar content equal to that of beets grown i n the European c o u n t r i e s . As a r e s u l t four beet sugar companies; namely, the Ontario Sugar Oo. L t d . , the Dresden Sugar Co* L t d . , Wallaceburg Sugar C 0. and the Wiarton Beet.Sugar Manufacturing. Co. L t d . were organized i n 1902. The Dominion Government paid a bounty on sugar produced i n Canada. In 1902, the Ontario government passed an Act prov-i d i n g a i d to these companies. .Taxpayers of Dresden paid a bonus of $40,000 and • Wallaceburg paid f50,000. The Ontario Govern-ment paid a bonus of i cent per pound up to 1907» Besides t h i s , the dominion Government exempted from duty the importation of machinery. These companies remained i n operation from 1903 to 1914 when they went out of business. At the same.time the Knight Sugar Go. was running with the a i d of the A l b e r t a Gov-ernment. The Aiberta Government granted a bounty f o r f i v e years, the term to end i n 1910. For the same year the value of the manufactured sugar was $2,728 ,961. About 1-f- m i l l i o n d o l l a r s were paid to beet growers and $525,046 paid as wages. A f t e r 1909* the-Dominion Sugar Co. at Chatham, c o n t r o l l e d three sugar manufacturing companies; namely # Chatham, Wallace-burg and,Kitchener (Dresden). From 1921 to 1924, i t c o n t r o l l e d only the f i r s t two. The Knight Sugar Co;, at Raymond s t a r t e d operation again i n 1924 under the name of the Canadian Sugar Facto r y L i m i t e d . In 1934, there were eig h t sugar r e f i n e r i e s l o c a t e d as f o l l o w s , two i n Ontario, Chatham and Wallaceburg, producing beet sugar, two i n Quebec, both i n Montreal, pro-ducing cane sugar, one i n Hew Brunswick at Saint John, r e f i n i n g cane sugar, one i n Jlova S c o t i a , at Dartmouth r e f i n i n g cane sugarj one i n A l b e r t a at Raymond, r e f i n i n g beet, and one i n B r i t i s h Columbia at Vancouver r e f i n i n g cane sugar. The t o t a l c a p i t a l i n v e s t e d f o r a l l these companies i s a l i t t l e over 33 m i l l i o n d o l l a r s and the t o t a l value produced i n a year i s 36 m i l l i o n d o l l a r s . The t o t a l amount paid to the beet growers was $24,099,994. The t o t a l number of persons employed i n the i n -dustry was 2,080 and about three m i l l i o n d o l l a r s was paid out i n s a l a r i e s and wages. The manufacturers* p r o f i t amounted to $11,^07,214. These f i g u r e s show that from the n a t i o n a l point of view, the presence of the beet sugar i n d u s t r y has a great Importance. The demand f o r sugar during the war increased g r e a t l y . The chart of annual production w i l l be given i n the s t a t i s t i c a l s e c t i o n . % e production f o r the year ,1920 shows quite a sharp increase over the previous year but a f t e r that .. date the production trend was downward f o r s e v e r a l years. The 109 . production f o r I925 rose again and the annual output of beet sugar was. 370,000 tons and from 1925 to 1950 the production trend was upwards Since then i t - has been upward and the year 1952 marks, the peak. In that year production reached 505,671 tons. The sugar i s imported i n t o Canada from San Domingo, Cuba and the B r i t i s h West In d i e s , A u s t r a l i a , and F i j i . The Empire sugar on the Canadian market has a preference of 40 per cent import duty f o r sugar of over 98 p o l a r i s a t i o n . .A considerable q u a n t i t y of maple sugar i s produced i n Canada on a commercial b a s i s . Howecer, i t w i l l not be dealt with here as t h i s aspect of the i n d u s t r y does not come with-' i n the scope of t h i s t h e s i s . Beet Sugar ;in.the United States _ - ' i'he i n d u s t r y developed here l a t e r than i n other beet sugar producing c o u n t r i e s ; that i s , the Eur ore an c o u n t r i e s . I t i s l e a r n e d that an attempt was made to develop a-.beet sugar i n d u s t r y i n 1830 but i t was unsuccessful. Some progress was made i n the beet sugar production a f t e r 1880. In t h i s year the beet sugar production of the United States was 1,000 tons* The production f i g u r e s show a sharp increase between I89I and 1900 the average production f o r these years being 55,000 tons. This was mainly due to two reasons: f i r s t , from I89O to I894 bounty at the rate of two cents per pound was paid; secondly, between 1894mand I897 a d e f i n i t e attempt was made to encourage the beet sugar 1 production by t a r i f f . In other words, the beet sugar i n d u s t r y i n the United States advanced with a r t i f -110 . i e i a l -S-se&staaoe; that i s , . t h e bounty system and l a t e r , import d u t i e s . "The average production from 1901 to 1910 was 521,000 tons, and from 1911 to 1920 i t was 695,000 tons. In 1912 the t a r i f f was r a i s e d and an increased production followed and i n I 9 I 5 - I 6 the increase was mainly caused by the Great War. From ' 1921-25,. the average production remained around 767,000 tons. Since 1930 the production trend has been upward and the produc-t i o n f o r the year 1955 increased to 1 ,460,000 tans. A f t e r 1920, the orbductlon o f beet sugar was stimulated as a r e s u l t of the' increase i n consumption of sugar i n the United St a t e s , followed by the government's p o l i c y of s e l f - s u f f i c i e n c y , ^ h i s p o l i c y i s quite apparent a f t e r 1930., when an import duty on Cuban sugar increased from l.?64 cents to 2.000 cents per pound. The market p r i c e of Cuban sugar, In that year was 1.22 cents per pound as compared with 1.88 cents per pound i n 1929. The duty r a t e on value, t h e r e f o r e , Increased from .93.6 per cent to 165 per cent. , S i n c e ' then the p r i c e trend has continued d o w n * ward, and the percentage of duty r a t e on value increased to I 7 7 . 5 . I n a d d i t i o n t o these f a c t o r s , the improved-methods of c u l t i v a t i o n served to increase the production; Beet sugar production i n the United States has spread to. the mountainous regions; namely, Colorado, Nebraska, Wyoming, Utah and Idaho, Montana and to the Herth C e n t r a l States e s p e c i -a l l y Michigan, Ohio and Wisconsin. The - c u l t i v a t i o n of sugar beet was introduced i n t o C a l i f o r n i a , but the i n d u s t r y i s now s d e c l i n i n g f o r s e v e r a l reasons. F i r s t l y , other cash crops are competing f o r the best l a n d i n C a l i f o r n i a ; secondly the com-p e t i t i o n of the cane sugar produced i n i n s u l a r areas that I s I l l i n Hawaii, the P h i l l i p p i n e s and Porto -"ico i s causing a de-c l i n e i n the beet sugar production. T h i r d l y , at the time that beet sugar comes on the market, the other supply i s very plen-t i f u l ; and f o u r t h l y , the beet area i s at a greater distance from the market. .About 70 per cent of the crop i s produced i n mountainous regions and 40 per cent of the whole i s produced i n Colorado alone. •' In the north c e n t r a l s t a t e s , sugar beets are produced on dark loam s o i l . This t r a c t has the advantage of being i n a c e n t r a l p o s i t i o n , and there are, t h e r e f o r e , good.transport-a t i o n f a c i l i t i e s . But scare!ty.'of labourers and the high rate of wages keep the cost of production high. Considering i t as a whole, the beet sugar i n d u s t r y i n the United States does not show much p o s s i b i l i t y of expansion. The requirements of i r r i g -a t i o n act as a check on the i n d u s t r y up to a c e r t a i n extent. F u r t h e r , s c a r c i t y of labeui 1 and the competition of other crops a l s o hinder f u r t h e r expansion of sugar beet c u l t i v a t i o n * Two main diseases are -.mainly found-there* namely; ".curly top" and "nematode". On the other hand, the beet sugal* cultivation.-.Is favoured because i t gives a b e t t e r rotation.system and improves farming c o n d i t i o n s . I t provides more employment ..and increases ,the'yield per acre. The annual production of beet sugar i n the United States i s included i n the t a b l e on page 183 . I t does not seem; to mfevery necessary to discuss the p o l i c y of the ''.pn-li.ed.. States. Gove;rnment as concerns t a r i f f s . A part of t h i s has already been mentioned on page 7? and there w i l l be f u r t h e r d i s c u s s i o n l a t e r . The c h i e f t h i n g to note i s that the i n d u s t r y 112 i s protected by the p r i n c i p l e s of " s e l f - s u f f i c i e n c y " n a t i o n a l f e e l i n g . " 113 Chapter X l • S c i e n t i f i c Improvement The- t o p i c " S c i e n t i f i c Improvement" covers mainly three f i e l d s of the Industrypnamely, improvement i n c u l t i v a t i o n t im^ provement i n f a c t o r y equipment and improvement i n the process of sugar recovery* The improvement i n c u l t i v a t i o n covers other f a c t o r s of which the development of y i e l d per acre i s one.. Since a l l these i n d i v i d u a l l y are t h e s i s subjects d e t a i l e d d i s -c ussion of these t o p i c s i s t h e r e f o r e , beyond the scope of t h i s t r e a t i s e * However, the w r i t e r cannot proceed without touching on these t o p i c s and wishes to give a b r i e f d i s c u s s i o n concern-ing each of these phases. Development of y i e l d per acre The y i e l d of sugar per acre c h i e f l y depends on a great many f a c t o r s , such as, environment; that i s c l i m a t e , s o i l and i r r i g a t i o n , on the proper use of f e r t i l i z e r , on the improved method of c u l t i v a t i o n and on the i n t r o d u c t i o n of new v a r i e t i e s which are r e s i s t a n t to disease and pests. In the previous dis-r c u s s i o n , i t was pointed out that the c h i e f aim i n v a r i o u s cane stigar producing c o u n t r i e s i s to increase the y i e l d i n sugar per acre. To achieve t h i s end, they are c a r r y i n g on a l l kinds .of: experiments. Many c o u n t r i e s , f o r i n s t a n c e , B r i t i s h West Indies and I n d i a , are mainly i n t e r e s t e d i n breeding new var-i e t i e s . Hawaii i s concentrating on various methods.of i r r i g -a t i o n and Cuba i s t r y i n g to improve f a c t o r i e s and i s c e n t r a l i z -i n g the i n d u s t r y . In A u s t r a l i a , experiments are being c a r r i e d 114 on f o r both purposes, that i s , to increase the tons of can per acre and at the-same time, they are t r y i n g to increase the recovery of sugar per ton of cane. The r e s u l t of t h e i experiments i s shown a s f o l l o w s . • r *Table showing the production of tons of eane per a c r e j and the recovery of sugar. The f i g -ures represent a ten year average. Period-'' - Tpns :vo;f -.cane, •: per acre. Tons of sugar per acre Tons of cane to recover one ton .. . of sugar 189-9-1908 15.04 1*63 9-20 1909-1918 17-52' 2.01 8.69 191^9-1^28 16*74 '•2124. 7.46 Java i s f a r t h e r ahead i n the a p p l i c a t i o n of the s c i e n -t i f i c methods than any other cane sugar producing country. She uses intensive, methods of c u l t i v a t i o n and has introduced higher y i e l d i n g . v a r i e t i e s . In the past-100 years the y i e l d of sugar per acre increased about f i v e times. The f i g u r e s are shown in,the f o l l o w i n g t a b l e . Imperial Sugar Oane Research Conference, London;', p.100 115 Table showing the development of y i e l d per acre Period.and dominant v a r i e t y Y i e l d i n long tons White D y p r a i'859>70 1.1 Black Oheribon 1880-96 2.5 Archipelago group 1896-1905 P.O.J. 100 and B. 24? 1905-1916 E.K. 28 and ^ .1 . 52 1916-1925 P i O . j . 2878 1928-1952 5.8 4 . 3 These f i g u r e s are a record of the highest y i e l d devel-oped i n cane sugar producing c o u n t r i e s . Java increases t h i s by i n t r o d u c i n g b e t t e r v a r i e t i e s of cane, by the c o n t r o l of b i o l o g i c a l f a c t o r s , that i s , n a t u r a l enemies, and by c a r e f u l treatment of s o i l and by the use of f e r t i l i z e r . The number of cane v a r i e t i e s i n cane producing c o u n t r i e s i s v e r y l a r g e , but P.O.J., 0.0., H, E.K., D.I., Yellow Oalodoria, B a d i l a , >Q,, D. t 1^ t are outstanding at present. • Since n i t r o g e n shows inverse r e l a t i o n to the y i e l d of cane sugar the p o t e n t i a l y i e l d per acre w i t h .084 percent n i t r o g e n contact i s 22.7 long tons. The highest y i e l d of cane sugar per acre, i s obtained i n Hawaii which produces 18.6 short tons per acr e , i n other words, 73 per cent of the poten-t i a l y i e l d . In Queensland a s i m i l a r r e s u l t i s obteined, but production i s on a smaller s c a l e . * Robertson, C.J., World Sugar Production and Consumption,p.127 116 ' •• The development of y i e l d i n beet sugar producing has been touched upon i n an e a r l i e r chapter of the t h e s i s . At-t e n t i o n has been concentrated on improvement i n methods of c u l t i v a t i o n . A l l the beet sugar producing c o u n t r i e s used high y i e l d v a r i e t i e s i n g e n e r a l . In other words they had reached close to the l i m i t of high y i e l d . 'The f i g u r e s given here are f o r the Netherlands because t h i s area was not disturbed.by the war. •Table showing y i e l d of sugar per hectare P e r i o d M e t r i c tons per-hectare 187.1-1880 • ; •:• 1881-1890 2'4.9 1891-1900 50.1 1901-1910 50.4 1911-1920 30.7 1921-1930 5 3 . I F a c t o r y equipment and f a c t o r y operation ' T h i s aspect of the cane sugar i n d u s t r y , together with t r a n s p o r t a t i o n and l o c a t i o n of f a c t o r i e s i s too l a r g e a sub-j e c t to include w i t h i n the scope of t h i s t h e s i s . I s h a l l t h e r e f o r e , omit d i s c u s s i o n of these questions f o r the time being. 'obertson, G.J., World Sugar Production and Consumption,p.128 PART 11 "STATISTICAL PRE SENTATI01 Off THE WORLD SUGAR IIDUSTRY" 117 Chapter Z l l Produetion In the f i r s t part of the t h e s i s , both cane and beet sugar producing c o u n t r i e s have been ctealt w i t h under the head-ings of h i s t o r i c a l development, l i m i t i n g f a c t o r s and economic e s s e n t i a l s i n the r e s p e c t i v e c o u n t r i e s . In t h i s p a r t , the purpose i s to give a condensed explanation byypresenting s t a -t i s t i c a l graphs of production and consumption* In a d d i t i o n , there w i l l be a d i s c u s s i o n of the t a r i f f p o l i c i e s of various c o u n t r i e s and of the marketing schemes and the Chadbourne agreement; a b r i e f summary of the world s i t u a t i o n and d i s -c u s sion of the f u t u r e of the i n d u s t r y w i l l also be given. This chapter w i l l be devoted to a presentation of the prod-u c t i o n of the d i f f e r e n t c o u n t r i e s and of the world as a whole. Before d i s c u s s i n g the world sugar i n d u s t r y l e t us r e f e r to I n d i a and Java together; There i s a d e f i n i t e connection between these two c o u n t r i e s . Figure 1 represents the pro-duction f o r I n d i a , and Figure 2 represents that of Java! The a c t u a l production of I n d i a f l u c t u a t e s about the trend, and the t r e n d up to. 1951 shows a s l i g h t l y upward d i r e c t i o n . The, trend f o r Java i n d i c a t e s a more r a p i d increase up t o 1931 than i s the case f o r I n d i a . The a c t u a l production f o r the period under survey up to 1931 i s r a t h e r above the general trend. The steady demand f o r Javan sugar i n the Far East market namely I n d i a , China, and Turkey, and the Cuban r e s t r i c -118 (Data; 'Ippendix,:6, \page 1.8l) 119 t i o n p o l i c y of 1926, helped Java to maintain the upward trend i n production. The Cuban r e s t r i c t i o n made i t possible f o r Java to ship her sugar to the European market. In a d d i t i o n there remained to, be enjoyed by Javan sugar an extensive f r e e market i n the w o r l d t e s p e c i a l l y t h a t provided by Great B r i t a i n . The p o s i t i o n of both c o u n t r i e s a f t e r 1931 i s much more s i g n i f i c a n t . The production of I n d i a i s i n c r e a s i n g , while the production of Java i s decreasing rather more r a p i d l y than the increase of I n d i a . Let us examine some reasons f o r t h i s . Of course, an abnormal increase i n the production of I n d i a i s an evidence of her p r o t e c t i o n i s t policy*. In r e l a t i o n to. Java there must be some other causes, since the decrease there i s twice as r a p i d as the increase i n I n d i a . Erom the graph, the w r i t e r of t h i s t h e s i s i s enabled to conclude that both c o u n t r i e s have been a f f e c t e d by the p r o t e c t i o n i s t p o l i c y of I n d i a , com-bined w i t h the p a r t i c i p a t i o n of Java i n the Chadbourne agree-ment and the shrinkage of the x^orld f r e e market, a l l of which faeters forced Java to cut down her production d i s a s t r o u s l y . However, there i s s t i l l no s i g n of recovery i n the Javan sugar i n d u s t r y . L e t us now examine the next group, that i s , the united States ( i n c l u d i n g Hawaii, the P h i l i p p i n e s and Porto Rico) and Cuba. The chart i s given on page 120. Figure ~M i s f o r the F n i t e d States and Figure ^ r e p r e s e n t s Cuba. The production of the United States''" shows a sharp upward trend up t o 1929 withr.a s l i g h t r e d u c t i o n f o r 1930. Erom then on, there i s a d i s t i n c t i n c r e a s e . The production trend of Cuba up to I929 i s upward. ISO (Data -'.Appendix 0, page 181 and 183) This i s e s p e c i a l l y due to the r a p i d increase i n the consum-p t i o n i n the United States because Cuban sugar has a 20 per cent preference i n the united States market and the import from Cuba i n t o the United States up to 1930 f l u c t u a t e d about around about 50 per cent of the consumption of the United S t a t e s . f:e may add another reason, namely that of improved p r i c e s up to 1924* A f t e r 1930, the production was reduced very sha r p l y , hut the year 1934 shows a s l i g h t recovery. The causes of t h i s r e d u c t i o n are e x a c t l y the same as those s t a t e d i n r e -l a t i o n to the Javan s i t u a t i o n . The import of Guban sugar i n t o the united States dropped r a p i d l y a f t e r 1930. We may say then, that the p r o t e c t i o n i s t p o l i c y of the United States served to maintain the upward trend; on the other hand the e f f e c t s of t h i s p o l i c y , together with the r e s t r i c t i o n and quota p o l i c y of the Cuban Government are the p r i n c i p a l causes of t h i s heavy r e d u c t i o n . A f t e r 1933, the s i t u a t i o n i s somewhat d i f f e r e n t from t h a t i n Java, because the Cuban sugar production shows some recovery* The chart on page 122 i s f o r the other countries and f o r European beet sugar producing c o u n t r i e s . In the Other coun-t r i e s , the production i s upward and i s rather above the trend. The general increase i n consumption has served to maintain the upward t r e n d . The bottom graph represents the European beet sugar producing c o u n t r i e s w i t h the exception of the United Kingdom* The deductions to be made from the graph are very c l e a r . The general tendency of a c t u a l production i s above the trend l i n e . The main reason f o r t h i s i s that there was a recovery 122 (Data Appendix q > p a g e i y 4 a n f l 12 3 period in-••$ar ope an'beet sugar, e s p e c i a l l y a f t e r 1924 . 'The production up to : 1931 was stimulated by state assistance and by the development of intense n a t i o n a l i s m . The w r i t e r accounts f o r the decrease i n production a f t e r 1931 as being a cons-e que nee of the Ohadbourne F l a n . 1'here are i n d i c a t i o n s of recovery i n the i n d u s t r y . The charts, on page 124 show the sugar production f o r , the world and f o r the B r i t i s h Empire (excluding. I n d i a ) . Before d i s c u s s i n g the world sugar production, l e t us examine the f i g u r e f o r the B r i t i s h Empire . The production of the Empire i s d e f i n i t e l y upward and i s r a t h e r r a p i d . This i n -crease i s due to s e v e r a l reasons- namely, the development of home beet sugar Industry with government, a i d ; the r e s -t r i c t i o n p o l i c y of A u s t r a l i a and the preference f o r Imperial sugar,, e s p e c i a l l y from the B r i t i s h West'Indies. • 'The world production of both cane and beet sugar i s shown on the chart on page 124 and shows a steady increase up to 1931 and a f t e r . Then we observe a decline i n world pro-d u c t i o n . The production trend turned upward i n 1934. Jfrom the previous d i s c u s s i o n i n t h i s chapter and from the s t a t i s -t i c a l diagram, evidence i s found foiv:.the' statement that i n sugar producing c o u n t r i e s such as I n d i a , the United S t a t e s , the United Kingdom and other beet sugar producing sections Of Europe, where p r o t e c t i o n i s t p o l i c i e s have 124 125 been f o l l o w e d , the production of sugar has increased* On the other hand, In c o u n t r i e s such as. Java and Cuba, where no p r o t e c t i o n i s t p o l i c i e s have been f o l l o w e d , the pro-d u c t i o n of sugar has decreased, though t h i s d e c l i n e has been hastened by the Ghadbourne Agreement. 126 Chapter X l l l Consumption : •' In the previous chapter, the production of p r a c t i c a l l y a l l . s u g a r producing c o u n t r i e s has "been-'shown -diagrammatic a l l y . The subject of t h i s chapter i s the consumption of these coun-t r i e s and the f a c t o r s which infl u e n c e i t . Consumption r e q u i r e s the a t t e n t i o n of economists because i t maintains the production at i t s l e v e l or s h i f t s the point up and down. I t may be stated that the success of any indus-t r y rests, upon consumption, l e t me s t r e s s the point i n d i f f -erent words, that the people of any country w i l l endeavour to produce the commodity i f there i s a market f o r that commodity. Consumption v a r i e s from country to country. I t i s i n f l u e n c e d by a number of f a c t o r s . These f a c t o r s w i l l be""discussed l a t e r i n the chapter* I n the f o l l o w i n g paragraph, consumption w i l l be discussed under d i f f e r e n t headings. . The- consumption may^ f o r convenience, be c l a s s i f i e d in. three groups; namely h i g h , medium and low. With few modif-i c a t i o n s from the f i g u r e s published by the league of Nations i n 1929, . i n order to. c l a r i f y the d i s c u s s i o n , one may group va r i o u s c o u n t r i e s under these headings. From the attached chart on -page 127 we may group these countries as f o l l o w s : South America comes w i t h i n the medium rat e consuming c l a s s -i f i c a t i o n * I n south-eastern Europe and i n O r i e n t a l countries the consumption i s low. 127 (Appendix D, mge 186) Sugar Consumption Per Capita, i n Kilograms 0 20 40 60 K£ 20 40 60 80 100 fo Population engaged i n A g r i c u l t u r e . | | Population engaged i n other i n d u s t r i e s . I j Consumption per capita i n Kg. 128 T&e,chart on page 32 9 shows the ' r e l a t i v e p o s i t i o n of production and consumption I n various sugar producing count-r i e s . In a. great many of them production j u s t balances con-sumption. I t I s observed from the chart that the United ' ; ;States-,• I n d i a and the United Kingdom are great consuming coun-t r i e s . I n Germany a l s o consumption i s greater than production. This, perhaps, i s due to her r e s t r i c t i o n p o l i c y i n the past f i v e , y e a r s under the Chadbourne plan* The countries depending on the import of sugar are the United S t a t e s , the United King-dom, China, .-India and Canada. The United States and the United Kingdom are e s p e c i a l l y great markets. These three countries; that I s , the United S t a t e s , the United Kingdom and India con-sume approximately l i t t l e l e s s than one h a l f of the world production. I t i s not i n the scope of t h i s t h e s i s to deal w i t h a l l these c o u n t r i e s separately; the w r i t e r , t h e r e f o r e , w i l l deal with the three major consuming countries* '-She f o l l o w i n g diagram shows the r e l a t i v e percentage of the t o t a l consumption of these three c o u n t r i e s i n r e l a t i o n to the world sugar con-sumption. (Page 1S9-.) ffactors governing the development of consumption I n the development of consumption, there are two main f a c t o r s to be considered; namely, increase i n population and increase i n consumption per c a p i t a . Consumption of sugar from 1921 to 192 9 increased. The year 1926 was a peak year f o r many c o u n t r i e s such as Czechoslovakia, Prance, Denmark, the United States and Canada. A f t e r t h i s there was a s l i g h t decrease i n consumption. Up to the year 1928-29 consumption F i g . 10 129 R e l a t i v e Sugar Production and Consumption of Various Countries (Appendix isi, page lb*7J .6 1.2 1.8 2,4 3 3.6 4.2 4.8 M i l l i o n s of Metric Tons Produc t i o n Consumption 150 , .. 130 (Appendix J?, page 188) Wov/d Suyar C c s u ^ c n &'•pressed ,^ per t^\-11 ZZ * '00 100 1922 23 24 25 26 27 28 29 .30 31 32 33 34 *u9»*g^™?p*ioh4*f_ • a-f:. United. Shtfes . Sugar -Cotitvfrffun -of'United, ktngddhi. Pev Cenf- of W o y W Cnr*sumpht,r, Par cen'r of Me v/orW ~z-r\surr>t\hc f<?22 Z3 Z* 2 s 26 27 2 g 24 30 J; 32 33 ^ • Sugar Con5c/Tvi|Dl-tay) .op vewfo<-/;s Gjc/n/V<'es 26' 26 27 2S 29 JO Jl 3 ? 28-/ 5 « ? 2 . 25 24 25 26 27 MS 2.<? 30 31 J2 J J •iwe 23 2* 25' 26 ;27. 28 £<? 30 51 52 33 Jim 131 remained h i g h . The t o t a l increase of consumption i n c o u n t r i e s i s given i n the f o l l o w i n g t a b l e : • * rJable showing the t o t a l increase of consumption per c a p i t a i n kilograms from 192 3 to 1929 Countries Increase per c a p i t a Ln kilograms Countries Increase per c a p i t a i n kilograms Germany Czechoslovakia IO.9 1 . 2 .Formosa (Japan) Java 1.9 .. 2 .9 A u s t r i a 7.1 ' South A f r i c a 2 ..4. . . Hungary •7,5 ; M a u r i t i u s 5.8 Switerzland 5.7 United States . 4 France 3 . 2 •Hawaii .7 Belgium 4.5 Porto Hi e 0 •7 Netherlands .8 Cuba •. 11 . 2 Great; B^ritain ; 6..»4•'.• ; Canada .8 -Poland 5.5 I t a l y • 4 5.7 San Domingo . 4 Denmark 3.5 Mexico ; 2 . 2 S w e d e n 3 1 9 Argentine 3 . 3 > S p a i n 1.7 B r a z i l .9 % i n a B r i t i s h I n d i a .1 1.1 B r i t i s h West Indies .5 * League of Nations, The World Sugar S i t u a t i o n , 1929 - O W 132 • , The consumption of the .European countries was at a l i ehh during the Great War* But a f t e r the war-many-countries, such as the United S t a t e s , Germany, A u s t r i a , Hungary, Switzer-l a n d , Great B r i t a i n • the 'CVS*S.&*, Itenmark, -Mauritius and Cuba showed a r a p i d increase i n t h e i r consumption. On the other hand, many other c o u n t r i e s , such as Belgium, Sweden, Java and Egypt, i n d i c a t e d an increase, but i t was slower than i n the former group of c o u n t r i e s . With regard to the i n f l u e n c e of population, the consum-p t i o n trend remained upward toward the end of the nineteenth century u n t i l 1905. The World War had a r e t a r d i n g e f f e c t and -checked the f u r t h e r development of consumption. The fu t u r e development of consumption i s also doubtful. I t may increase i n the near future and w i l l d e c l i n e i n the f a r f u t u r e . Whelpton, at the I n t e r n a t i o n a l Conference of A g r i c u l t u r a l Economists, st a t e d that the population of Worth-west Europe and America may reach a peak w i t h i n twenty years and then de-c l i n e . Thus, the f a r future d e c l i n e i n population would be a serious check on the i n d u s t r y . As concerns the increase of consumption per c a p i t a i n the f u t u r e , there i s some-, o b s c u r i t y , because many countries such as the United S t a t e s , Argentine, Peru and Czechoslovakia have shown a decline i n per c a p i t a consumption. Since the per c a p i t a consumption i s a f f e c t e d by various f a c t o r s , i t seems to be worth while!- to give a b r i e f explanation of them. I t i s i n f l u e n c e d by d i e t a r y consumption, standard of l i v i n g , urban and country l i f e , type, of work, f o r instance, i n I n d i a , * 133 s t r a i g h t sugar i s taken a f t e r hard work. With regard to urban and country populations, the - diag-ram on page 127may help to e x p l a i n the d i s t i n c t i o n . I t i s n o t i c e d from the diagram that consumption p e r c a p i t a i s r e l -a t i v e l y higher i n i n d u s t r i a l c o u n t r i e s such as the United King dom.-, the United S t a t e s , Canada, A u s t r a l i a , etc* W h e r e the lar g e p o r t i o n of the population l i v e s on the l a n d , f o r instanoe/ i n . the U i i . S i K i , , I n d i a , I t a l y and B u l g a r i a , Poland, Hungary, e t c . , the consumption per c a p i t a i s low. This probably i s due to s e v e r a l f a c t o r s . E i r s t , more l u x u r i e s are enjoyed by the urban population than by the r u r a l , and they spend more f r e e l y Secondly, the flow of money i n c i t i e s i s more r a p i d than i n the r u r a l communities. T h i r d l y , the annual income of urbsn people i s greater than that of country people. The high consumption per c a p i t a among urban people may be due to the hi g h purchasing power of c i t y populations. Because, i n the l a s t decade, p r i c e s f o r a g r i c u l t u r a l commod-i t i e s f e l l f o r t y per cent more r a p i d l y than the p r i c e s of i n -d u s t r i a l commodities, the value of the farmer's d o l l a r was 60 per cent of the i n d u s t r i a l d o l l a r . I t may be due, f u r t h e r , to the hi g h standard of l i v i n g of the urban population* Income as a f a c t o r i n the increase of consumption Although the e l a s t i c i t y f o r sugar i s l e s s than f o r meat, vegetables and m i l k , and much smaller than f o r b u t t e r and eggs, ne v e r t h e l e s s , the consumption rates between high and loxv i n -come groups are quite d i s t i n c t i v e . According to R o b e r t s o n , the increase i n consumption of the hi g h income group i s 2.6 per 134 cent as against 18 per cent of lower income groups, between c l e r i c a l and commercial workers r e s p e c t i v e l y and 11 per cent In the ease of o f f i c i a l s . •4'- common rate of sugar consumption of the working c l a s s i s 25 to 30 kilograms while the middle c l a s s consumption i s 30 to 35 kilograms. A s i m i l a r d i s t i n c t i o n i s found i n Russia between the same c l a s s e s . The h i g h rate consuming c o u n t r i e s , the United Kingdom'and the United States show that sugar plays an important r o l e i n the d i e t of the higher income group. The Influence of t a x a t i o n on sugar, .consumption From the h i s t o r y of the sugar i n d u s t r y i t i s learned that the beet sugar i n d u s t r y developed i n a l l producing countries with the a i d of p r o t e c t i o n i s t p o l i c i e s . At the same time i n many c o u n t r i e s , f o r example, I t a l y , the consumption of sugar was discouraged by the imposing of an excise duty or consumption t a x , that i s , a customs duty plus a eonstimption t a x . This Is not the proper.place to discuss the t a x a t i o n , t a r i f f , and ex-c i s e duty; these w i l l be discussed i n a l a t e r chapter. I t i s an a.dmitted f a c t that high t a x a t i o n r e t a r d s the consumption and that low t a x a t i o n increases the consumption, -^ he con-sumption per c a p i t a i n Ne?*/ Zealand Is an evidence of the e f f e c t of low t a x a t i o n . E x a c t l y the same thing a p p l i e s to Swi t z e r l a n d and Sweden, while. Norway and the Netherlands, i n s p i t e of h i g h l i v i n g standards and. higher incomes per cap-i t a , show a low r a t e of consumption. The other European coun-t r i e s , such a s ' I t a l y , Rumania, .Bulgaria, §j>ain, P o r t u g a l , and Yugoslavia f a l l w i t h i n the low r a t e consuming groupi and t h i s 135 i s a l s o because of nigh t a x a t i o n * 4- recent example can be found i n the p o l i c y of the Indian government. Professor Thomas i n the"Economic Journal" shows that consumption per c a p i t a f e l l from 7.7 pounds i n 1930 to 5.8 pounds i n 1932-33, that i s , a f a l l of 24 per cent. This f a l l i s mainly due to the increase i n the rate of customs duty. 136 Chapter X l V The T a r i f f P o l i c i e s i n Various Countri es "The network of p r o t e c t i v e duties with i t s i n f i n i t e l y v a r i e d and h i g h l y complex mesh has undoubtedly served to pro-long and i n t e n s i f y , the sugar . c r i s i s . " 1 The importance of. the t a r i f f and i t s r e l a t i o n to the world sugar i n d u s t r y i s w e l l expressed i n t h i s quotation. I t i s e s s e n t i a l to devote a cer-t a i n amount of time to a d i s c u s s i o n of the p o l i c i e s of various co u n t r i e s and t h e i r e f f e c t on the course of the sugar trade. Since the subject i s quite l a r g e and since i t i s hot w i t h i n the scope of t h i s t h e s i s to deal i n d e t a i l with i n d i v i d u a l c o u n t r i e s , the p r i n c i p a l d i s c u s s i o n w i l l therefore be treated under d i f f e r e n t headings; namely, the h i s t o r y of the t a r i f f , pre-war and post-war t a r i f f as concerns the sugar i n d u s t r y ; and the pe r i o d under survey.,, that i s from 1919 to 1954,will be discussed. H i s t o r y of the t a r i f f I n the e a r l y h i s t o r y of the sugar i n d u s t r y , sugar was considered as a l u x u r y commodity. From i t s e a r l y development, t h e r e f o r e , i t remained subject to high t a r i f f s . In the Middle Ages i t was considered as an a r t i c l e on which duty could be l e v i e d and i t was regarded as a convenient source of revenue. I n the fourteenth century, I t a l y f o r the f i r s t time im-1. ,G. Mikusch, S u g a r League of B a t i p n s f G.148M>_57, page 35. 137 posed a duty on oane sugar. l a t e r a d i s t i n c t i o n was made "between the r a t e s on raw and r e f i n e d sugar, and France started to rebate the duty that was paid on raw sugar when the sugar was r e f i n e d f o r export, '^oward the end of. the eighteenth cen-t u r y , the rebate system l e d to the payment of bounty on export sugar. The United States f o r the f i r s t time i n 1789, i n t r o -duced the t a r i f f on sugar. The t a r i f f at that time was one cent per pound f o r brown sugar,, three cents f o r l o a f sugar, and f o r other sugar 1% cents per pound. 2he h i s t o r y of the "united States t a r i f f on sugar from 1789 to'. 1930 i s f u l l of changes and w i l l be discussed i n a l a t e r part of the chapter. ®n the whole, the t a r i f f r a t e s i n the 19th century were im-portant, e s p e c i a l l y on b o i l e d sugar i n the twenties, t h i r t i e s and f o r t i e s . Towards the end of the 19th century, counter-v a i l i n g d u t i e s on bounty f e d sugar were introduced i n I n d i a . In the l a s t quarter of the 19th century "Nationalism* 1 was most in t e n s e . A n the European beet sugar countries were w e l l pro-t e c t e d behind the t a r i f f w a l l s and i n a d d i t i o n , bounty was p a i d on export sugar, ^he beet sugar producing c o u n t r i e s also enjoyed exemption from i n t e r n a l t a x a t i o n . In 1837, the tax was introduced i n France, i n .1840 i n P r u s s i a , i n 1841 i n Germany, 1843 i n Belgium and"1850 In A u s t r i a . These taxes v a r i e d from country to country. Pre-war and post-war t a r i f f There i s not much to wri t e on pre-war and post-war t a r i f f r a t e s * The table published by the League of Nations i n 1929 gives the d i f f e r e n t r a t e s i n various c o u n t r i e s and i t may give a c l e a r understanding about the p o l i c y of the various c o u n t r i e s . 138 *;;^bij.-ghowing pre-war .and post-war t a r I f f r a t e s i n T f l r i m , , countries i n terms of united States currency. Countries Pre-war. D o l l a r s per 100 Kilogram 'Post-war.' D o l l a r s per 100 Kg. ( c a l c u l a t e on the average: of October, 1928. ; Refined Sugar 139 Gauntries Pre-war. " D o l l a r s per 100 Kilogram Raw "•'• Sugar R&f ihed. Sugar Post-war.Dollars per-1GQ "Eg., ( c a l c u l a t e d oh "the.; average of October. 1928) Raw>-Sugar He f i n e a. Sugar ' Dutch East Indie (Norway A u s t r i a n Republic [Hungary Portugal P e r s i a Peru Poland Rumania Rus s i a Sweden -Switzerland S e r b i a Spain South A f r i c a Gze eh o s l o v a k i a Turkey :• Hungary United States s 6$ ad. valorem. 5-35 I . 0 5 19.97 0.47 0. 97 4.82 14 .16 2.14 1.45 • = 4.82 , 9.17 1. %% • 5.35 1.15 I 5 . 6 7 0.47 1.95 6.75 18 .86 2.97 2.12 7.72 9.17 2 .69 11 f Q ad valorem 2.77 3.00 12f0 ad 8.00 3.64 4.32 6v48: 6.73 0.49 5.61 .6/31 7.47 5 .15 ,1.87^ 0.39 4.82 9.71 4.29 5.02 . 9.89 5.27 4', 8 6•, ," valorem. 8.00 3.64 5.40 (min. 7.56 (max. 6.73 12.56 6.73 IO .74 (min. ( 15.91 (max., 9.26 2.67 .1.9.6 9.16 9 .71. 5.09 5..O2 16.70 5-27 5-17 * The league of Nations P u b l i c a t i o n 0. 148. M. 57, 1929, f i g u r e s converted by the League of Nations Economic Committee. 140 In a d d i t i o n to the import duty many cou n t r i e s imposed a consumption tax and the f o l l o w i n g table shows the rat e s of pre-war and post-war periods. 1'able showing the consumption tax i n the pre-war and post-war periods i n various c o u n t r i e s . , -f re-war D o l l a r s per 100 Kg. Countries Belgium a l g a r i a Denmark Germany iFranee Great B r i t a i n I I t a l y Japan Netherlands Poland A u s t r i a Austria-Hungary| Rbumanla Russia Sweden Serbia Spain Czechoslovakia Raw Sugar 55.86 1*07 3.33 4.82 12.97 2.90 IO.85 Refined Sugar Post-war D o l l a r s per 100 Kg. ( c a l c u l a t e d according to the average rate of exchange i n the month of Oct. 1928). , 0 1 ™ ~ T ~ -Rarif Sugar £3.86 3.86 I . 5 3 3 7 3 5 4.82 15.54 7*88 10.85 7.70 £•79 5.49 4.29 £-79 7.24 7.70 £•79 5.49 4.29 £•79 7.24 $1.11 5.98 I.07 2.50 4.88 2.78 20.11 5*21 10.61 4.51 ' 3.24 Refined Sugar Si.11 5.98 1.53 2.50 4.88 2.78 20*95 7.O5 10.82 4.31 5.24 2.43 2*4-5 12.35 I5.44 1.07 1*07 8.80 8.80 7.28 7.28 5.45 5.45 141 Table «- continued. Countries Raw Refined Raw Refined Sugar Sugar Sugar Sugar Turkey 7*72 7*72 Hungary 7.70 7.70 7.07 7.07 Source pf table - League of Nations p u b l i c a t i o n 0. 148. M.57, 1929. Figures converted i n t o by the League of Nations Economic Com-mittee * The present T a r i f f P o l i c y of d i f f e r e n t c o u n t r i e s . I n t h i s part of the chapter, the p r i n c i p a l consuming ce n t r e s , namely, the United Kingdom» the United States and I n d i a , w i l l be Siscussed separately and the remaining coun-t r i e s w i l l be de a l t w i t h together* Great B r i t a i n * . I n 1874, the duty on f o r e i g n sugar was abolished and the B r i t i s h market remained f r e e up to 1901. I n that year, the tax on r e f i n e d sugar was reimposed at the rate of 4s* 2d. per ewt* I t was reduced i n I908 to I s . lOd. and remained unchanged t i l l 191.5. The t a r i f f p o l i c y on sugar from 1915 to 1929 was progressive. I n I 9 I 5 , the duty on sugar increased to 4s* 9d. and the year a f t e r to 14s. per ewt Erom 1919, the p o l i c y of Great B r i t a i n changed d e f i n i t e l y * I t became more and more p r o t e c t i v e and she i n c l i n e d to l i m i t her import from the Empire. Since 1919* the. tax against sugar played a very important part i n r a i s i n g the revenue. 14S Other reasons f o r the increase of the t a r i f f r a t e were the p r o t e c t i o n of the home i n d u s t r y and the safe-guarding of the cane sugar i n d u s t r y i n the c o l o n i e s , throughout the whole world at t h i s time, p o l i c i e s had changed to the pro-t e c t i o n of home producers. Consequently, the s i t u a t i o n can be w e l l expressed by saying that n a t i o n a l i s m was at i t s z e n i t h and there was i n c r e a s i n g b e l i e f i n s e l f - s u f f i c i e n c y . Great B r i t a i n adopted the same p o l i c y and debarred f o r e i g n sugar with heavy t a r i f f s * However, a p r o v i s i o n f o r p r e f e r -ence on Empire sugar was made* The whole p i c t u r e i s such that Great B r i t a i n ' s p o l i c y i s very complicated* Great B r i t -a i n , a country which had remained a free trade country, now became p r o t e c t i o n i s t . She v a r i e s her t a r i f f from time to time and at the same time puts preference on Empire sugar and grants a d i r e c t subsidy to her home producers by c o l l e c t -i n g a customs duty and excise duty. The f o l l o w i n g t a b l e i l l u s t r a t e s the p r o t e c t i o n i s t p o l i c y throughout the period* The high p r o t e c t i o n years are 1925-26-27. The i n d u s t r y between 1921 to 1931 was g r e a t l y protected ; i " Table she wing-e x e i s e y f e i n Great B r i t a i n from 1919 to 1934. 1 . • 143 general import.:.duty,,: Empire preference, . Tear; General im-port duty • pe/r >ewt.: • ^Empire ]-Sugar. Excise Protee t i onTo t a l : preareren. ce duuy per duty per cwt f o r home • pr 6du.ee j 1' pro- ;'• fs AQQ-1919 - S -25 a 8 4 3. a 3 ;s 21 Cl ; 5 •;.s 19; d per cwt. S d •  t i o r i s d 12 5 1920 25 ; 8 : 4 3 21 19 5 .' 6 3 12 5 1921 25 8 .4 3 21 5 19 5 :. 6 5 12 5 1922 25 , 8 4 3 21 8 25 8 1 •192-3 25 8 , .4 3 21 5 25 •8 25 8 1924 11 8 1 H 9 9 9 9 21:: 8 3/4 25 8 1925 11 8 4 Sir L i - . 7 5 21 8 3/4 26; 0 1926 11 8 4 m '. 7 : 5 7 5 21 8 3/4 26; Q \ 1927 11 8 4 3 i . 7 7 21 8 3|4 26 0 :1928 ; 11 8 . 3 6 8 2 ' * 8 2 21 •8 5/4 18 Q 192'9 111 8 3 6 8 2 8 2 ' 14 6 1?39 11 8 3 6 8 2 8 2 14 6 18 .. 0 7 1931 11 8 3 6. 8 2 8 2 14 . 6 12 0 1932 11 8 3 6 :. 8. • 2 8 , 2 8 • 10 9 1933 11 8 4 9 11 , 5 ' f t . 7 5 12 0 1934 11 8 4 5 11 5 11 7 • •• 12 0 <j> f h i s t a b l e was prepared: from a statement::. Some f i g u r e s •may be s l i g h t l y out. 144 The United States T a r i f f ^ P o l i c y . . I t : has already been mentioned that the t a r i f f on sugar i n the United States was introduced f o r the f i r s t time i n 1789 when brown sugar was subjected to a tax. In I794 r e f i n e d sugar was a l s o taxed and a duty of 4 cents per pound was imposed. I n 1832,. sugar i n the form,of syrup was made tax a b l e . But i n 1846, t h i s system changed to the ad valorem form, that i s , duty was imposed at the rate of 3$ per cent of the value. L a t e r i n 1861, the Dutch Standard was made the b a s i s f o r the rate, of sugar duty. I n t h i s year sugar not above no. 12 D.S. was taxed at the rate of 2 cents per pTOund; above no. 12 D. S. , at the rate of 2% cents per pound; and r e f i n e d sugar at the rat e of 4 cents per pound. In I876, the R e c i p r o c i t y Treaty with Hawaii was signed and sugar from Hawaii was allowed f r e e of duty i n t o the United S t a t e s . Under the M o r r i l B i l l i n 1883, the duty on sugar was changed on the b a s i s of degree of po l o r i s c o p e . Sugar not above 75 degrees poloriscope was taxed a t the rate of 1.40 cents per pound and f o r each degree above 75 degrees an a d d i t i o n a l 0.04 cents per pound was added. Sugar above no. 13 D. S. but not above no. 20 D. S. v?as taxed at the rate of 2.75 and above no. 20 D. S. at 3«7J? cents per pound. In I89O, the H i f c i n i l e y B i l l was passed. Under t h i s b i l l , . t h e rate of duty was reduced, but .1 cent per pound c o u n t e r v a i l -i n g duty was imposed. This b i l l a l so provided a bounty at the rate of 2 cents per pound on home produced sugar.. I n 1897, the rate was again changed to 40 per cent ad valorem. In 1903, the R e c i p r o c i t y Treaty with Cuba was signed.. The duty on Cuban sugar was reduced by 20 per cent of the general r a t e . By the Payne-11drieh B i l l i n I909, the duty on r e f i n e d sugar and on sugar of no. 16 D.S. or above was levied, at the rate of I.90 cents per pound. Sugar not above 75 degrees pol^ariscope was taxed at the rat e of O.95 ce,nts per pound and f o r each degree above 75 degrees and a d d i t i o n a l ' 0.35 cents per pound was added. I n 1913 these r a t e s were Seduced by 25 per cent. In 1921 under the Emergency T a r i f f B i l l a customs duty was again increased' The duty on sugar under ' , 75 degrees was increased, to 1.16 cents per pound and f o r each succeeding degree above 75 degrees, an a d d i t i o n a l 0.04 cents per pound was l e v i e d . The general rate of duty on sugar of 196 degrees 'polariseope was 2.0 cents per pound, but. on Cuban sugar it,was 1.60 cents per pound. Further, an increase wasmade i n 1922 , from 1.16 cents, to 1.24 cents; an a d d i t i o n a l increase from 0.04 to 0.046 cents per pound was made and the general duty on 96 degrees sugar was r a i s e d from 2 cents per pound to 2.206'cents per pound. There was another increase i n 1930 when the general duty was increased to 2.65 cents per pound, but the Cuban sugar was given a preference on 20 per cent. The duty rate on Cuban sugar from 1919 to 1934 i s given i n the f o l l o w i n g t a b l e . 146 s^owi^g, ra t e of duty per pound and the rate of duty on values i n percentage' of Cuban sugar. YeaE:.A Duty per pound* Du'tiable value per pound Rate of duty value i n percentage 191? 1,0048 £.61 I?-? ~ 1920 1.0048 II..53 §•7 1922 1.60 2.5Q .64.1 , >; 1923 1.7648 4.84 36.5 1924 1.7648 4*29 41.1 1925 •1.7648 2.^5 69.I 192^ v; ' 1-764| 79.2 1927 1.7648 .£...-78 • 65.4 192:8. I.7648 2 .'3? 74.7 ; 21929 1*7648 1*!83 9-6.6 1930 1.7648 I.70 103.6 1931 2*0000 : l«i? 169 .p 1932 v 2.0000 1.90 1933 2.0000 l..;p4 192-2 Irom the table above we f i n d that the duty i n 1930 i s equal to the p r i c e of a pound of sugar and a f t e r that date the pr i c e of sugar decreased f u r t h e r and. the r a t i o of duty and pri c e became 2:1. United s t a t e s T a r i f f Commission Report, 1934. 147 I n d i a . The subject of the sugar t a r i f f p o l i c y of the Indian government has been touched upon i n chapter three. In t h i s paragraph the subject w i l l be d e a l t with i n d e t a i l . In 1899, ,amcountervailing duty.on bounty fe d sugar was imposed i n I n d i a , but there was no t a r i f f u n t i l 191-6. In that year the duty was imposed at the rate of 5 per cent ad valorem. I n 1 9 2 1 , the rates increased to lj? per cent and i n 1922 to 25 per cent. In ,192.5, the ad valorem rate was changed i n t o a s p e c i f i c amount, that i s , Re. 4/8/- per cwt. I t was increased i n 1 9 5 0 . In that year, the duty on c r y s t a l l i z e d or s o f t sugar of no. 23 D.S.: was r a i s e d from Rs. 4 / 8 / - to Rs.. 6 / 4 / - . Sugar below no. 8: D. S. was taxed a t the rate of Rs. I / 8 / -plus 25 per cent, ad valorem per cwt. I n 1931, the Indian: government f o l l o w e d the example of other c o u n t r i e s and adopted a p o l i c y of p r o t e c t i o n . On the recommendation of the. T a r i f f Board, the; government sanctioned, a protective^ p l a n f or 15 years. : The. customs duty was i n c r e a s e d from; Ra> 6/4/- : t o Rs. 7 / 4 / - f o r seven years, that i s t ' i - l l . I938: and a f t e r that date the t a r i f f r a t e i s . to be reviewed f o r a f u r t h e r p e r i o d of p r o t e c t i o n . . I n a d d i t i o n to t h i s , the. government was empowered to increase the duty on sugar imported i n t o I n d i a to prevent the under-c u t t i n g of' p r i c e s i n . I n d i a . In March 1931, the duty f o r no. 23 D.S. sxigar was Rs. 7/&/- per cwt; sugar between no. 8 D.S. and no. 25.D*S. was taxed at the.rate o f R s . 6/12/- and below no. 8 B.S. at the rate of Rs 2/12/- plus 25 per cent 148 ad valorem. But i n the f o l l o w i n g September a 25 per cent s i r c h a r g e was imposed. Shis means that duty on f i r s t c l a s s sugar increased to Es, 9 / l / - per ewt. In 1932, "The Sugar Industry P r o t e c t i o n Act" was passed, which provides a l l ' these above stated powers. Other Countries. There i s not much d e t a i l e d explanation to be given about the change and increase o f t a r i f f r a t e s . The p o l i c i e s of various c o u n t r i e s may be w e l l i l l u s t r a t e d from the f o l l o w i n g t a b l e . . 1* Table showing the t a r i f f rates of d i f f e r e n t c o u n t r i e s expressed i n United States currency. Country United States equivalent cents per pound. Consumption tax cents per noUnd tcaw Sugar : Refined Sugar . «aw Sugar Re i me d Sugar A u s t r i a 3.91 4.90 3.79 3.79 Belgium 2.14 ; 2*14 1.29 B u l g a r i a .5.94 8.16 9.80 9.80 CzechoSlovakia 6.42 6.42 3.50 3.50 Denmark 0.68 1.74 . - 1 ® 5 Est h o n i a 6.08 . 6*08 • mm : Finland 5.18 5.87 - — m • France .. 5 .00 5.13 2.40 2.40 Germany 4.95 5.87 3.85 3.85 Greece 5.94 to 8.90 5.94 to 8.90 - „ Hungary . 6.05 6.05 6.73 6.73 149 Table - continued. Country United States equivalent cents per pound Consumption tax Cents nfif nnnnrt xtaw Sugar Refined Sugar Raw Sugar Refined Sugar 'Italy 4*65 6.98 15.40 16.04 J u g o s l a v i a 2.97 to 3.71 4.11 to 5.59 10.12 10.12 L a t v i a 2.68 to 5.37 2.68 to 5.37 ~. tm L i t h i a n i a 6.97 to 20.91 m bat Netherlands 0*74 6.03 Norway 4.57 4.57 m fca Poland 7.77 to 9.93 9.06 to 11.22 11.87, 11.87 P o r t u g a l 2.75 3.45 «• Eoumahia 4.11 1.82 4.56 4.56 Spain 8.90 8.90 2.96 2.96 Sweden 0.94 1.34 Switzerland 1*04 1.04 to 1.93 fii 1 ma Turkey 6.73 10.17 *» ' ' Argentine 6.69 8.16 China 2.49 2.59 Soviet Union QOfo ad valorem 150$ ad valorem ad 48 to 86$ 60 to 70% valorem ad valorem Canada - T a r i f f per 100 pounds 96 - 97 General t a r i f f l e 7 4 2-77 P r e f e r e n t i a l . .99 1*01 % Sugar Reference Book and D i r e c t o r y 97 - 98 over 98 1.80 1„89 1*03 1.09 Prom the previous d i s c u s s i o n , one may ha<?e no d i f f i c u l t y i n understanding the n a t i o n a l aims of various c o u n t r i e s . I t 150 has been mentioned again and again that almost a l l the count r l e s have turned to s e l f - s u f f i c i e n c y by c u t t i n g down t h e i r imports w i t h the use of high t a r i f f s . In other words, every country wants to s e l l and no one wants to buy. Hence, the quotation which opened the d i s c u s s i o n i n t h i s chapter i s a complete explanation of the e x i s t i n g c o n d i t i o n s . However, there have r e c e n t l y been some tendencies toward change. The n a t i o n a l aims are t a k i n g on a two-fold character. Home i n d u s t r i e s are being protected by Great B r i t a i n , the United S t a t e s and Germany, each country i n i t s own way. At- the same time, some r e g i o n a l pacts have been made, such as the Empire pact, Germany's agreement w i t h Holland, Switzerland, Poland, Denmark, F i n l a n d , Esthonia, Hungary and Yugoslaviaj the agreement between A u s t r i a , Hungary and I t a l y ; the agree* ment of Greece, Turkey* Y u g o s l a v i a a, Roumania, e t c . I t may be that these changes are an evidence of the t r u t h of the prophesy of Dr. S e r l i h g , professor at the U n i v e r s i t y of B e r l i n , who stated that "Hardly anywhere do responsible people s t i l l b e l i e v e i n complete s e l f - s u f f i c i e n c y . " 1 1 Proceeding of the IhiEdrrilnterjaati-ona'lrOonfereh.ee of A g r i c u l t u r a l Economists, p. 36. 151 Chapter TTt Marketing Schemes and Agreements. The c o n d i t i o n s of the world sugar industry have been d e a l t w i t h i n the previous chapters. The conditions were such that during the World War, the beet sugar production was cut down from 49.3 per cent to 21.1 per cent. On the other hand, cane sugar production increased from 50,7 per cent to 78ii8 per cent of t o t a l production. In the year 1919-20, beet sugar was at i t s lowest l e v e l , w hile cane sugar was at i t s peak. From then on, the European beet sugar producing c o u n t r i e s developed the industry w i t h the aim of r e g a i n i n g t h e i r pre-war p o s i t i o n s . In proportion to cane sugar production i t increased to 35.6 per cent. At the same time, cane sugar production increased about 40 per cent of the .1919920 output. Consequently, the period, f o r convenience, may be described, as a period of i n c r e a s -i n g production stimulated by the v i o l e n t development of consumption l a s t i n g t i l l 1924-25. Since 1925, there has been a period of continuous increase of production w i t h a check here and there where consumption lagged behind. Hence the s a l e lagged behind the production and a surplus started to accumulate. At t h i s time, i n t e r n a t i o n a l measures of r e s t r i c t i o n came i n , and p r o t e c t i o n i s t p o l i c i e s were adopted by v a r i o u s governments. .Thus there was caused a-shrinkage i n consumption and a change i n market occurred. As a r e s u l t 152 of the favourable c o n d i t i o n s of production, combined w i t h the n a t i o n a l i s t i c or p r o t e c t i o n i s t i c p o l i c y of various c o u n t r i e s a surplus was-'created and the p r i c e f o r sugar decreased. The p r i c e s f o r sugar dropped d i s a s t r o u s l y even below the cost of produ c t i o n . Hence, marginal producers were forced to stop, f u r t h e r c u l t i v a t i o n of cane. In order to preserve the con-d i t i o n s , v a r i o u s measures were taken by d i f f e r e n t c o u n t r i e s . These w i l l be d e a l t w i t h i n the f o l l o w i n g paragraph. From the various measures used to a l l e v i a t e the con-d i t i o n s , we f i n d that the f i r s t step we|s taken i n Cuba i n 1926. In t h i s year, the production of sugar was decreased from .5 m i l l i o n tons to 4 m i l l i o n tons. Those who produced any excess were to be f i n e d at the rate of $20 per bag of 325 l b s . In a d d i t i o n to t h i s , an export corporation was organized. Under t h i s , a. scheme f o r compulsory co-operative marketing was set up, which provides quotas f o r home pro-d u c t i o n , home consumption, export to the United States and other c o u n t r i e s . In a d d i t i o n to t h i s a p r o v i s i o n was made to stock a c e r t a i n amount as a reserve. This r e s t r i c t i o n and co-operation was followed by a c e r t a i n measure of success i n that the p r i c e of sugar increased to 2 cents, but w i t h the i n t e r f e r e n c e of the European beet sugar countries, Java and Formosa, the b e n e f i t of the scheme was l o s t . The same type of o r g a n i z a t i o n under the name of "The Sugar Syn-d i c a t e " was est a b l i s h e d i n the B r i t i s h West Indies. Through the syndicate, a b e t t e r p r i c e was obtained. Another measure, 150 the C a r t e l , was introduced i n European c o u n t r i e s , f o r example Czechoslovakia and Germany. Under the Czechoslovakian C a r t e l system, s e l l i n g d i s t r i c t s were f i x e d and a quota was given to each area. The time was l i m i t e d to ten years and the members were not allowed to p a r t i c i p a t e i n any f o r e i g n concern-. There could not be any withdrawal of membership and the n o t i c e of withdrawal had to have the support of 80 per cent of the members. The p r i n c i p a l motive of the C a r t e l was to maintain or r a i s e the p r i c e of sugar. L a t e r i n 1930, a world -wide movement was s t a r t e d . I t o r i g i n a t e d i n the c a p i t a l i s t i c i n t e r e s t s of the banking w o r l d . Without d e a l i n g w i t h every move of the n e g o t i a t i o n s , i t i s s u f f i c i e n t to say that,an agreement under the name of "The Chad bourne P l a n 1 1 was signed i n May 9, 1931, I t was between the main" sugar e x p o r t i n g c o u n t r i e s ; namely, Cuba, Java, Germany, Czechoslovakia, Poland, Hungary and Belgium, and Peru joined l a t e r . I t i s not very important to discuss the P l a n i n d e t a i l . The agreement, however, c o n s i s t s of nine a r t i c l e s and the important a r t i c l e s are that every member of the P l a n was given a quota f o r export, and the P l a n was v a l i d f o r f i v e years. The f o l l o w i n g t a b l e shows quotas f o r export i n the d i f f e r e n t c o u n t r i e s . 154 t. Table showing quota. (Cuba, long tons, others, metric tons.) Tear CUBA y— r** f"— JAVA $SBO-TAICIA GIB-MMY P01AM3 .'HUH-. GARY BEL*. GlUIf TO TAB PERU 1st 655000 2300000 570817 500000 308812 84100 30275 4449004 360000 2nd 805000 2400000 570817 350000 308812 84100C •30275 4549004 373750 3rd 855000 2500000 570817 300000 308812 84100 30275 4649004 373750 ith 855000 2600000 570817: 300000 308812 84100 30275 4649004 373750 5th 855000 2700000 570817 300000 208812 84100 30275 4849004 373750 For Cuba, the year was reckoned from January 1st, f o r Java, from A p r i l 1 s t , and f o r beet sugar countries, from Sep-tember 30th. The second a r t i c l e of the Plan was r e g u l a t i o n of stock and production. The other fundamental a r t i c l e d e a l t w i t h the formation o f the . I n t e r n a t i o n a l Sugar Council and i t s a c t i v i t i e s . This C o u n c i l was authorized to regulate the quotas on a s l i d i n g s c a l e ; that i s , i f the world p r i c e rose to 2 cents, the quotas would be increased 5 per cent, and a f u r t h e r increase i n quotas would be made i f the p r i c e increased to 2.25 cents and 2.50 cents. The motive of t h i s plan was the r a i s i n g of the p r i c e s f o r sugar and the di s p o s i n g of the surplus. The scheme was su c c e s s f u l i n g e t t i n g r i d of the surplus, but i t f a i l e d to & Memograph of the Chadbourne P l a n . 155 increase the p r i c e . T h e - f a i l u r e of the.scheme could be accounted f o r i n s e v e r a l ways. In the f i r s t p l ace, the '"Chad-bourne P l a n only covered c o u n t r i e s which produced 40 per cent of; the world: sugar. 1* Table showing the production of the Chadbourne group In r e l a t i o n to other c o u n t r i e s . ( M i l l i o n long tons raw value e) Year |l929-30 1930- 31 1931- 32 11932- 33 11933- 34 Wo r i d 27.3 28.4 26.2 24.1 25.1 Chadbourne group 12.6 11.4 8.8 6.4 6.1 U.S.A. and d ependencies 3.5 3.6 4.0 4,3 5.0 B r i t i s h Empire 4.6 5.2 5.8 6.7 7.4 Other Countries 6.7 8.2 7.6 6.7 6.6 The scheme mainly depends on a p o l i c y of r e s t r i c t i o n , which was o f f s e t , howevir, by the production of non-member c o u n t r i e s . .Secondly, i t s f a i l u r e was due to the o v e r - e s t i -mation of the consumption, f o r example, Cuba f a i l e d to d i s -pose of the given quota i n the United States market. This was due to the decrease of consumption and.the increased production of beet sugar i n the U, S. A. And s i m i l a r l y Java, l o s t her Eastern market because of the development of sugar i n I n d i a . T h i r d l y , the scheme f a i l e d due to the r i s i n g t i d e of p r o t e c t i v e measures, as a r e s u l t of which, countries which had h i t h e r t o imported sugar, now started to produce at home. * Report of United Kingdom Sugar Industry I n q u i r y Committee, p. 14. 156 .Besides the Chadbourne Plan, Great B r i t a i n , on the recommendation of the Greene "Report, decided to. organize an independent sugar commission. The f u n c t i o n of the Com-mission i s to o b t a i n b e t t e r p r i c e s f o r sugar and to reduce a s s i s t a n c e to the sugar i n d u s t r y on a d i m i n i s h i n g s c a l e . This commission w i l l s t a r t to operate from A p r i l 1936. Under t h i s scheme, a l l the sugar f a c t o r i e s are to be amal-gamated i n a s i n g l e c o r p o r a t i o n . A l l the f a c t o r i e s are given quota r i g h t s of 720,000 tons o f white,sugar, but they cannot compete w i t h the f o r e i g n r e f i n e r i e s . Today many co u n t r i e s are l o o k i n g forward to some i n t e r n a t i o n a l agree-ment and va r i o u s measures are suggested by d i f f e r e n t c o u n t r i e s . These new ideas w i l l be discussed i n the chapter on'"the f u t u r e o f the sugar i n d u s t r y " . 157 Chapter XVI. The World Sugar S i t u a t i o n , Up to the present time, the sugar industry i n various c o u n t r i e s has been discussed separately. Almost a l l the important phases of the i n d u s t r y are covered i n the previous d i s c u s s i o n . The theme of the chapter i s to be a presentation of a l l the f a c t o r s that have been stated before and a d i s -c u s sion of t h e i r i n f l u e n c e on the world i n d u s t r y as a whole. Before d e a l i n g w i t h the p r i n c i p a l part of t h i s chapter, I w i s h to o u t l i n e the general s i t u a t i o n o f the sugar pro-ducing c o u n t r i e s as r e l a t e d to the world at large i n respect to t h e i r aim i n sugar producing; to t h e i r trade operation and to t h e i r .'various t a r i f f systems. I t w i l l be more convenient to d i s c u s s these subjects separately. With regard to t h e i r aim, we may d i v i d e "the who'le world into three groups. F i r s t ; the c o u n t r i e s such as Cuba, Java, Peru, San Domingo, B r i t i s h C o lonies ( M a u r i t i u s , F I ^ l and B r i t i s h Guiana), Porto Rico, the P h i l i p p i n e s and Hawaii, which are outstanding i n the i n d u s t r y and which s p e c i a l i z e i n sugar production. The en-t i r e production of these countries depends upon export trade. Secondly; the Union of South A f r i c a , A u s t r a l i a and the European beet sugar producing c o u n t r i e s (Czechoslovakia and Poland), which produce f o r i n t e r n a l home consumption but which have an exportable surplus. The t h i r d group includes 158 the United Kingdom, the United States, France and Indi a , which produce sugar but have to import some sugar from other c o u n t r i e s . In a d d i t i o n to these, Germany also comes under the t h i r d group, but I b e l i e v e t h i s to be a r e s u l t o f the Chadbourne P l a n . We may observe s p e c i f i c a l l y that the pro-s p e r i t y of the f i r s t group of countries depends on the ex-port trade i n sugar. As concerns the t r a d i n g operations, Dr. Mikusch d i v i d e s the whole world i n t o four zones. He states that "The e n t i r e - trade operates w i t h i n four concentric c i r c l e s , i n whieh t a r -i f f p r o t e c t i o n e x e r c i s e s i t s e f f e c t s i n a decreasing propor-t i o n from the centre outwards, w h i l e freedom of trade pro~ p o r t i o n a t e l y i n c r e a s e s . "In the innermost c i r c l e i s the sugar which i s e i t h e r consumed under the p r o t e c t i o n of duty i n the country of pro-d u c t i o n or which i s consumed i n another country where some other form of duty i s l e v i e d but where sugar i s exempt from duty. "To the next e i r e l e belongs the sugar consumed i n a country where i t enjoys a preference over that of other o r i g i n , "In the t h i r d c i r c l e i s the sugar consumed i n c o u n t r i e s i n which i t r e c e i v e s no kind of p r e f e r e n t i a l treatment w i t h regard to t a r i f f s or other d u t i e s but enjoys a favoured po-s i t i o n which may i n some cases almost amount to a monopoly, on account of i t s geographical s i t u a t i o n , f r e i g h t c o n d i t i o n s , marketing, customs or any other circumstances, as f o r example, 159 the p o s i t i o n enjoyed by Peruvian sugar i n the C h i l i a n market or by Java sugar i n the Par Eastern markets. " F i n a l l y , sugar which i s r e a l l y sold i n the open market belongs to the outermost c i r c l e . " From the d i s c u s s i o n i n i i i s paragraph we n o t i c e that sugar only moves where there i s p r e f e r e n t i a l t a r i f f . With regard to the various t a r i f f systems, i t does not seem to me to be necessary to go i n t o much d e t a i l , f o r t h i s subject has already been discussed i n a previous chapter. However, by way of conclusion of the t a r i f f chapter, we may d i s t i n g u i s h the d i f f e r e n t types o f State assistance as f o l l o w s . , a. Complete import p r o h i b i t i o n of the sugar, e.g. Aus-t r a l i a . b. P r o t e c t i v e t a r i f f which i s exercised i n the United Kingdom, B r i t i s h I n d i a , Japan and i n the United States and i t s dependencies. c. The p r e f e r e n t i a l t a r i f f , which e s p e c i a l l y a p p l i e s to the Cuban and C o l o n i a l sugar. d. D i r e c t s u b s i d i e s provided i n Great B r i t a i n . e. Rebate tax used i n Czechoslovakia. 1 Report of the West Indian Sugar Commission, p. 31. 160 World Production Cane and Beet Sugar in Relative Percentage. 1^1^-20^100 (Appendix 0, page 189) ' 4 30S6 o 31-61 763077.09 8203 330* \Z7 84-70, 51.21 S3£&tf.5te776\60.56]58'7& 12-02\I02-I /03.S yo6.oyio,i8\ 7£-70 1/7 0(, 1(7.68 I/O, 67 J/S:tC lOC-d >kar- IW 20 21 ZZ 23 24 25 26 27 28 21 30 31 32 33 34-Beet Dane 161 The d i s c u s s i o n i n the preceeding three paragraphs i s merely a b i r d ' s eye view of the world p i c t u r e . I t c e r t a i n l y helps one to understand the underlying causes of the present c o n d i t i o n of the world sugar i n d u s t r y . In the remaining part of the chapter an attempt w i l l be made to present a b r i e f e x p l a n a t i o n of the period from 1919 to 1934 and the main causes of the sugar c r i s i s . In developing the background of the subject l e t us s t a r t from the l a s t quarter of the 19th century. Towards 1900, the e q u i l i b r i u m of the sugar trade was upset. Thanks to the B r u s s e l s Convention o f 1903, the ^equilibrium was r e -e s t a b l i s h e d before the war. At t h a t time, cane and beet sugar e q u a l l y shared the world production. During the war, on account of m i l i t a r y operations i n the important areas of beet c u l t i v a t i o n and the d i s o r g a n i z a t i o n of production and • trade, beet sugar production i n Europe was reduced to one-t h i r d of the world production, but cane sugar production was increased to f o u r - f i f t h s of the world production. A f t e r 1919-20, the European beet sugar producing coun-t r i e s turned to r e s t o r i n g t h e i r pre-war p o s i t i o n . Up to 1927, t h e r e f o r e , we have the r a p i d recovery period f o r beet sugar. The diagram on page 160 (-F-i-gv-1-1-•)> i n d i c a t e s the development of the beet sugar i n d u s t r y . At the same time, cane sugar production was stimulated w i t h a rapid increase i n consumption. The world production has already been discussed i n chapter 211, but the charts on page 162 ( F i g . 12) represent the r e l a t i v e 162-PERCEHTAGES OF WORLD SUGAR PRODUCTION Base 1919-20 = 100 ,• (Appendix H, page 190) 2.0a, [00 111 3* I . - - -War/. 3. y — 1 71 1 / ££ 35-1$. IS a. t-V So Ay-SO-iff 10 IS 10 im -j;£L. V •3*r—1—^A^4~P^P^Ofi^f^&. 3 3 1 30 •4 ad -IS, 34- im C-u.ba 34-AO IS 10 11 1^1 1 /. JJZ. 7<7_ 1 \ 10 /o 1111 34 if/f r J n J r { is A y 34-163 index form, They show the general increase i n production up to 1 9 2 2 3 } u r i n g -that . p e r i o d t h e r e was a high demand f o r cane sugar i n Europe. The p r i c e s toward the end of 1922 Increased suddenly. In the e a r l y p a r t of 1922, Cuba had a Surplus of 1,500,000 tons, which disappeared towards the end of 1922. In 1923, the consump-t i o n of the United States increased by one m i l l i o n tons. Thus we have the period of high production combined w i t h a rapid develop-ment o f consumption. With the exception o f I n d i a , a l l sugar producing countries . show a continuous increase up to 1950. The chart on page 162 i n -d i c a t e s the percentage increase of sugar i n various c o u n t r i e s . . The t o t a l w o r l d production increased from 100 per cent to 183 per cent; the best sugar shows an increase from 15 per cent to 65 per cent of the t o t a l world production; Java from 10 to 19 per cent of the world production; the United States from 15 to 33 per cent; Ouba from 20 to 31 per cent. On the other hand, the conditions of the world sugar i n d u s t r y show a conspicuous change. The v i -s i b l e stock s t a r t e d to accumulate and the p r i c e f o r sugar i n d i -cated a downward trend and dropped below the cost of production. The diagram on page 164 ( F i g . 13) explains the conditions over the p e r i o d . The p r i c e s are taken from the two outstanding world, markets; namely-, London and Hew York. The c o r r e l a t i o n between p r i c e and accumulation of stock i s given on page 165. The diagram shows, as the p r i c e s f o r sugar increase, the v i s i b l e stock de-creases, and as the p r i c e s decrease, the v i s i b l e stock increases. Although, f o r the same period, the world consumption of sugar increased from 100 to 150 per cent, (see consumption chart on page 130) t h i s increase Is not proportion-164 M i l l i o n s 13 of Long Tons 12 11 10 9 8 7 6 5 4 3 '> F i g . 13, Exportable Surplus on World Market '•(-Append-?~" T ----- •> '> • A • 7 ^ \ >'-- y ' /1 23 24 25 26 27 28 29 30 31 32 33 34 P r i c e C. & F. New York 1922 23 24 25 26 27 28 29 30 31 32 33 ggg P r i c e Index, London 200 175 150 125 100 75 50 1921 22 23 24 25 26 27 28 29 30 31 165 HARMONIC CORRELATION Curve Showing R e l a t i o n Between Stock and P r i c e ,0000466 1 * ts:000035'6'X M i l l i o n s of Long Tons 16 P r i c e s 0 1 Cents per pound 4 166 a l to that of production. The p r i c e s f o r sugar a f t e r 1924 gra d u a l l y decreased. This made the p o s i t i o n o f producers worse each year. In a d d i t i o n to t h i s , the inc r e a s i n g f a i t h i n a p r o t e c t i o n i s t p o l i c y aggravated the co n d i t i o n s . The Cuban export into the United States declined r a p i d l y a f t e r 1929, (see t a b l e on page 4 0 ) . This was due p a r t i c u l a r l y to the increase of t a r i f f under the p r o t e c t i v e p o l i c y . The s i t u a t i o n was such that the p r i c e of Cuban sugar at Hew York was 1.49 cents a pound as against 2.06 cents a pound f o r costs of production. In 1931, i t was 1.93 cents as against 1.98 cents a pound and i n 1932, 92 cents as compared w i t h 1.73 cents a pound. A f t e r 1926, various methods were used to a l l e v i a t e the c o n d i t i o n s . These methods, such as r e s t r i c t i o n , C a r t e l and the Chadbourne Plan, iihave already been discussed i n a previous chapter. The w r i t e r does not f e e l i t necessary, therefore, to r e f e r to them here. The general outlook of the industry has been explained up to now. In the f o l l o w i n g paragraph, I should l i k e to discuss the p r i n c i p a l causes of the c r i s i s . Causes of the sugar c r i s i s . . Before I proceed, 1 should l i k e to quote Br. Mikusch, who made a statement i n 1929 i n the Memorandum on sugar prepared by the league o f Bations Economic Committee. He st a t e s that "the present sugar c r i s i s , however, i s undoubt-edly due to excessive increase i n production throughout the whole world. Since then expansion of world consumption i s 167 e n t i r e l y s a t i s f a c t o r y and more rapid than before the war. Production, however, has gone ahead so q u i c k l y that since 19.24-85, the world production of sugar f a r exceeds con-sumption and thus the stocks, though not excessive, increased •* p r o g r e s s i v e l y year by.year". 1 The statement i s w e l l supported by the f o l l o w i n g t a b l e . 2 Year *T >*> f\' r-y s-*\ A Production M e t r i c torn Consumption 3 M e t r i c tons Year Production long tons Consumption long tons 1925- 24 1924-25: 1925^26; 1926- 27 1927- 28 21,390*000 24,885,000 26,021,000 24,701,000 26,676,000 21,245,000 23,542,000 ' 24,542,000 24,553,000 25,752,000 1928- 29 1929- 30 19,30-51 1931- 32 1932- 33 28,382,000 28,179,000 29,732*0.00 26,777,000 25,815,000 27,068,000 26,548,000 27,139,000 25,724,000 26,083,000 Undoubtedly, the approach to the problem of depression i s a matter of o p i n i o n . I maintain that although there are many other minor f a c t o r s which have influenced the world sugar industry,, the slump i n the sugar market i s due to the f o l l o w i n g f a c t o r s ; over-production, the p r o t e c t i o n i s t p o l i -c i e s of the r e s p e c t i v e governments and the v i o l a t i o n of the law o f comparative advantage. 1 2 league of Nations, Sugar, 0. 148. M. 57, 1929. Figures from 1923-28 league of Nations, Sugar, p. 37 1929-33, Report of the United Kingdom sugar Industry Inquiry Committee, p. 13, 168 With regard to overproduction, i t emphasized the e f f e c t : of the war. During the war, the cane sugar production increased considerably and a f t e r the war there was f u r t h e r i n c r e a s e . She r a t i o of increase f o r the period 1919-24 as ' compared w i t h 1924-29 .in various countries i s as f o l l o w s : -•*- A u s t r a l i a 100:179 Porto Rico 100:148 Hawaii 100:144 P h i l i p i n e s 100:199 The exportable surplus i n 1926-28 increased from 100 t o 157. This increase was influenced by improved technique i n a g r i c u l t u r e and manufacturing. Many countries show the increase due to the i n t r o d u c t i o n of b e t t e r cane v a r i e t i e s , fo r i n s t a n c e : -* San Domingo and H a i t i 100:184 Java 100:144 In a d d i t i o n t o the increase of cane sugar, beet sugar i n -d i c a t e s tremendous increase. As mentioned before, the beet sugar i n d u s t r y was ruined by the Great War, but the beet sugar c o u n t r i e s , w i t h government a i d , started to recover t h e i r p o s i t i o n . They regained and indeed exceeded the pre-war l e v e l r a p i d l y a f t e r the war. (See chart on page 160), Over-production occurred simultaneously w i t h f a l l i n g p r i c e s and thus the c o n d i t i o n s led to c r i s i s . f and 2 * Report of the-West Indian Sugar Commission, p. 30. 169 Let us pass to the second cause of the depression, which I consider to be the p r o t e c t i o n i s t p o l i c y of the re-spective governments. The p o l i c y as r e l a t e d to various governments, has been f u l l y discussed i n Chapter XIV and i t 'would be superfluous to repeat the d i s c u s s i o n here. However, we may remark that as a r e s u l t o f these n a t i o n a l aims, about 50 per cent of the f r e e market disappeared. F a i r competition ceased to e x i s t and many exporter c o u n t r i e s l o s t t h e i r former market. I s a r e s u l t , producers f a i l e d to dispose of t h e i r production and accumulated a v i s i b l e s u r p l u s . Consequently the depression was prolonged. As concerns the Law of Comparative Advantage, i t i s obvious, that.the bfeet sugar producing countries repudiated t h i s law. T h i s ' r e p u d i a t i o n p a r a l l e l s the breaking of the Von Thuenun s t r u c t u r e by A u s t r a l i a , Canada and lew Zealand, as pointed out by Dr. S i e r i n g , professor at the U n i v e r s i t y of B e r l i n . : Thus was eaused a prolonging of the world c r i s i s . The beet sugar producing c o u n t r i e s , under the pressure of t h e i r l i m i t e d scope, are not using t h e i r labour and c a p i t a l to the greatest advantage or e f f e c t . Hence, the market f o r cheap sugar producing c o u n t r i e s shrank and these countries cannot expand t h e i r production. This lowered: the purchasing power of cheap sugar producing countries, and they cannot buy the goods produced i n the beet sugar countries and A u s t r a l i a , which coun t r i e s have discarded the Law of Com-pa r a t i v e Advantage. The cause of the depression, therefore, 170 might w e l l l i e here. These f a c t o r s may have contributed s i g n i f i c a n t l y to the depression. 171 Chapter 2711  The Future of. the World Sugar Industry. Up to now, the world sugar industry has been discussed from i t s beginning to the present time. The d i s c u s s i o n i n -d i c a t e s that the industry, during the l a s t decade, has been i n a period of depression i n cane sugar producing countries, such as tf&va, Cuba, e t c . The theme of t h i s chapter i s to suggest some means of remedying t h i s s i t u a t i o n . Before s t a t i n g my opinion, I should l i k e to give some other s o l u t i o n s which have been suggested by various autho-r i t i e s and economists. Mr. F. 0. l i c h t , i n h i s memorandum on Sugar f o r the League of Nations, F i n a n c i a l Section, i n 1929, advocated that an increase i n consumption would cure the c o n d i t i o n . He considered that the problem could be adequately solved from the consumer's s i d e . He emphasized that "where there Is a w i l l , there i s a way". In order to promote consumption, he .suggested the appointment of an I n t e r n a t i o n a l Committee which would carry out the work of -propaganda and advertisement to promote consumption. He o a l l s s p e c i a l a t t e n t i o n to countries which have a low per c a p i t a consumption. To ensure a s a t i s f a c t o r y r e s u l t , l i c h t considered that there must be s t a b i l i t y of p o l i t i c a l power and an increase i n purchasing power. This should.be followed by a reduction i n e x i s t i n g taxes, and i n the costs 172 of production by improving technique i n c u l t i v a t i o n and i n manufacturing. Another suggestion made by S i r F. Watts i s that " i t would be of great b e n e f i t i f something could be done to reopen the Indian market to M a u r i t i u s sugar' 1. Later, i n 1934, a suggestion was given, presenting the American view p o i n t , to the e f f e c t t h a t "For pe r f e c t agreement there must be a compensation f o r Java, that i s , 500,000 tons import to I n d i a " . They considered that such an arrangement would be the key to a wo r i d agreement. Besides these suggestions, we f i n d that t h e - B r i t i s h Parliament r e a l i z e d the c o n d i t i o n of the world sugar i n -dustry, and i t was announced that the "Government's b e l i e f t h a t the sugar producing countries can only hope to Set the industry upon an economic basis by means of i n t e r n a -t i o n a l agreement to adjust supplies to the requirements of the world, market, accompanied by the acceptance of the p r i n c i p l e that State assistance i n whatever form, should everywhere be diminished".2 The most recent suggestion was made by Br, Y i r i a t o Gu-t i e r r e s . He b e l i e v e s that the only remedy f o r the sugar c r i -s i s Is a complete, i n t e r n a t i o n a l agreement which must cover the fundamentals, such as the adherence of the present 1 Watts* F., Report on the M a u r i t i u s Sugar Industry, p. 37, 2 I n t e r n a t i o n a l Sugar Journal, re-p-er-t, 1934. 173 -producing c o u n t r i e s , and o f those importing countries which are able to become producers. But i t must aim to balance the supply w i t h the demand. He has also suggested that an agreement between the importing countries would improve the s t a t e of the i n d u s t r y . In d i s c u s s i n g the e f f e c t i v e n e s s o f these suggestions, I do not consider thaUt any of them, except the i n t e r n a t i o n a l agreement, would be sound f o r general improvement. I be-l i e v e that the development of consumption may help to l e s s e n the pressure, but i t would not help to e f f e c t a fundamental cure. S i r F, Watts' suggestion and the Ameri-can p o i n t o f view do not r e a l l y approach the problem, f o r the simple reason that the import of sugar into I n d i a would not help to improve the world s i t u a t i o n . I n d i a could only buy e i t h e r from the West Indies or from Java, and the amount imported would not exceed one m i l l i o n tons. The problem of the country from which she did not buy, and the problem of Cuba,, s t i l l remain unsolved. From -my survey, I b e l i e v e that the s o l u t i o n declared by the B r i t i s h Parliament may help to promote some sound i n t e r n a t i o n a l agreement. Dr. G u t i e r r e s 1 suggestion i s also -comprehensive, but r e q u i r e s f u r t h e r m o d i f i c a t i o n . To my b e l i e f , the only e f f e c t i v e s o l u t i o n f o r the present con-d i t i o n s i s to develope a f r e e world market. Such a move . under the present c o n d i t i o n s Is very d i f f i c u l t , unless 174 there i s a strong i n t e r n a t i o n a l agreement. The agreement must cover the fundamentals. I t must have a wide scope. In other words, i t must include a l l producing and importing c o u n t r i e s i n one large body. According to Dr. Gu t i e r r e s , i f we have a separate agreement between exporting and importing counties, such agreements would not work i n harmony,, because 'either group might attempt t o set up a monopoly. I f we have an agreement between exporting coun-t r i e s , i t would not take us f a r , because non-member coun-t r i e s might attempt to i n t e r f e r e w i t h production. This i s i l l u s t r a t e d by the working of the Ohadbourne Plan . I t s p a r t i a l f a i l u r e i s mainly due to the f a c t that non-member coun t r i e s increased t h e i r production, and t h i s would always happen. One may p o i n t out the su c c e s s f u l operation of tea and t i n , both s u c c e s s f u l schemes. These schemes c o n t r o l 90 per cent of the production, but as there i s no agreement between importing c o u n t r i e s , the danger of monopoly s t i l l e x i s t s t h ere. The w r i t e r , t h e r e f o r e , b e l i e v e s that the i n t e r n a t i o n a l agreement must be between a l l exporting and importing coun-t r i e s , and each country should be given an annual quota f o r production, export or import. In order toset up a quota, the comparative advantages of each country must be recognized; that I s , favourable or unfavourable n a t u r a l c o n d i t i o n s of each country 7 / i t h regard to climate, s o i l , 175 p o p u l a t i o n and t r a n s p o r t a t i o n . To f i m o t i o n adequately and e f f i c i e n t l y , such a p l a n would require accurate and complete s t a t i s t i c a l information, government backing, f l e x i b i l i t y , a s u f f i c i e n t scope of time. These conditions would be necessary i n order to ensure f a i r n e s s to con-sumers, and t o avoid d i s c r i m i n a t i o n against any country. 176 APPSEDIX A Function of the B a i l l e u r de Fonda. * Bezides paying high interest on the mortgage debt, which i s of the nature of a fixed charge, the gSeat majority of the owners have prac-t i c a l l y no working capital, and TO their estates on borrowed money. By the end of the hurricane season, i.e., i n A p r i l , they have exhausted the fund derived from the last crop, andhave to apply to a financial agent for assistance. • This agent i s called, i n Mauritius, a B a i l l e u r de Ponds. He i s often a l o c a l merchant or produce-broker. He has generally a substantial amount of l i q u i d capital of his ovm, as well as good credit at one or other of the two l o c a l banks, and when, as usually happens, the t o t a l amount of money required for the estates which he i s financing exceed his own available resources, he "borrows the "balance from the bank, giving his own name and that of the estate-owner as security. The planter submits to the Bailleur de forids a kind of budget for the coming year showing what he expects to have to pay for interest, and other fixed charges, wages of employees and labourers, manure, r i c e , and other stores, and i n many cases, for household and personal expenditure. In fact, for a l l his anticipated out-going during the year. He gives the B a i l l e u r de fonds the s e l l i n g of the sugar produced on the estate, and right to demand, i f necessary, a mortgage on the estate for any balance which may remain owing at the close of the year's transactions. The Bailleur de Fonds then * ' Eeport of Mauritius Boyal Commission, 1903. 177 "becomes p r a c t i c a l l y the "business manager of the estate. He supplies •the owner monthly, with the funds required for fixed charges, wages, etc., he "buys and pays for the manure, r i c e and stores required for the «state rand, as the sugar Is produced, he s e l l s i t , and credits the -osier with the amount r e a l i z e d . On a l l his out-going i n respect of the estate, he debits the owner with interest at the agreed rate, and on the other side of the account;, credits him with interest at the same rate, the svm received for the sale of produce* At the end of the year, the account i s made tip and the owner receives whatever "balance there may "be owing to himj or i f the balance i s a dehit one,, he gives the B a i l l e u r de ?fends' security for the amount. The charges which the estate "owner has to pay for t h i s combination of financial &xmm&Q$£i#£^Mri!®. "business management naturally vary with, individual cases, Prom the evidence which we have received, the usual arrangement appears to be as follows;— The B a i l l e u r de -fonds charges interest :bii i'ourr.'erit -ra'cWuttt at "bank rate, which i s usually about 1 0 per cent. He also charges a commission, which i s generally 2g- per cent, • on the amount realized "by the sale of sugar, I f he i s also a produce-, •broker, he conducts the actual sale of sugar and charges the usual per cent on the sale price to the s e l l e r , and -g- per cent to the "buyer. I f he i s not, he employs a broker to s e l l the sugar and allow him the -§• per cent "brokerage, charging i t to the estate-owner, 178 I f the estate i s not i n good condition and the owier's a f f a i r s are involved, - i n short, i f the r i s k ran by the B a i l l e u r de fonds,- •-. the needs of the borrower are greater than usual, the Bailleur: de fonds iac.y c barge for the loan -g- or 1 per cent above the bank rate; i f on the other hand, the estate-owner has money, and goes to the B a i l l e u r more for convlenience than of necessity, the l a t t e r may conduct the business of the estate for Iv-, 1, or per cent costnission instead of 2-fc- per cent* 179 a CD M 'CO U - P • © - ->• +»• • H £ to o fs; o u • H p i T J M El erf " - P CD • h, ri « ) U ri U - P ~z! $ CO CD » tj- Pi 03 EiO H f-f i « J to C3 m ^ &D f3 CO O «H J 3 1-3 .o tip ri O n ? i •H P * M ?H P H CO • H • H ri O « 05 03 -{2 CD M • r - ! rt ra w £ & ^ ,33 • H & ^ CD f-1 IS -p CO +s f S3 <D «*~|. 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H « H ri H C J - N CM IS 1 ri JS ca K l j J i L O c O N c O C I > O H « t O ^ • " " - CO CO CO CO I I I I . ^" ^ I I 1 I I I t I W i? ? f ^  tS CO (?> O ri CM tO is IS ts IS CS IS IS IS CO-co CO CO 0 0 ri co c o m c o c o c o c o c o ' c o c o c o ri riririririririririri 180 to o e-t ts ho © E H 44> o o o ft tO o o o o o o o *\ tO <sj as cn to ts rH O o o o o •> o o ft 0> 01 tv -to in * rH tO O O 2 ° o o cv CO O rH OJ o o o o o o o o o o o o o-o o o o o o o » N O H H B H R 5 CO CO rH O ID tO Kj< C\> M O « ' ft ft ft ft ft ft «\ ^ ^ to " s i 1 ^ to J S .is ro to -rf) in cv D J c\j cv cv cv cv cv 'tv cvj o o o o to IS o o o o o o o o rH C O O C O o o o o o o rs IQ CO CV to o o o o o o to to C V ! S r-H ! S to in to to <HI Kjt in to is o o o oo o o o o o o o ft h 14 A r-l t - tO !S ^ tO JS Ch tfl to OS CD N CO o o o o o o o o o o o o O O O CO o o r» «r, «v (<\ t\ o m t~i <->' cv cv CO O tO tO r-! 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O CO CO -r-I -^I O O H N !N CO O CO CV ! S *% «\ 9\ C\ «v CO tO i—S CV rH r-'. rH rH rH co o o o to o o o cn to co H " <n »i <d< to ^ i cn tO 1^ to cn cvj to cv *l 1I\ tf\ *r> t o t o ^ i — i r-! r—i r-I £ 0 0 0 0 0 0 cv o o o o o o to o o o o o o B\ ^ «\ ir% ^ cn' M» r + C T J ! > in o cn cv o cn to tO .rH O rH tO . Cn '*\ ^ ^ Ii J S to CO CO CO to I—I r-l r-H rH r-i rH rH • m « o .;. • E H m o o o o cv o o o o o o ! S O t - rH cn m o o in co is in o o o o o o to to o m o o o to o o Js co cn - - -o to cv a? cv in r-t to o to cn cn js rH cn rH yyo to to A *\ ft <S ^ to ,>ijl CO « ri Wj-<4f cn to w > to lO w o o o o o o o o o o o o o o o o o o M ft (\ «^  ^ cv - ^ i cn cv cn co c\j to cn cv to to cn CO I S to to ^ in in to m to ^ is to to to to co to co co co to ra o " E H fO Ml C3 O O O O O O O o O o o ft ft ft co m •yi-cn cn o co cn cn o g o H C - t a o o . o i n o o o o o o OO O D> O tO O O O cn o, O O O O. O o o o is cv co cn co to cn o o o o O o ft*\ft ft« ft ftc> ft ft ft ft «\ o ! S in to rH r-H co . to . tDKVcv m o w is co m co; in to •sii «#i to J S c\' r-H cv is cn o is cv CO OiO I I CO j s^-o - i s 9 ^ H W CO H to ft ft ft ft % , ft ft ft ft ft ft ft ft ft ft ft ft ft cv cv cv cv to to to to to is" co co cn cn cn o o U CO cn cn ©i cn o rs oo rH co cn cn cn CO CO rH rH rH CV O O ! I O rH O O cn cn to to m O o o ! ; : cv to «5ji o o o _ J S CO Cn O rH O O O O r-l t-i a- I Tft i j . m ito is co cn o O O O O rH cv to *=^s in to rH r-l r-l rH r-i 1 3 1 ! ! rH CV tO r-l i—! r-H in m e n c n c n c n c n c n c n c n c n c n a i c n r-i r-i r—i r~i rH rH rH rH r-H rH rH r—i 181 APPEEDIX G Ta-ole showing actual production of various countries. Tear India Cuba Java Long Sons Long Tons Long Tons ' 1919-20 3,039,000 3,128,975 1,503,755 1920-21 2,522., 000. 3,935,433 1,649,610 1921-22. 2,614,000 3,966,189 1,746,075 1922-23 3,045,000 3,602,910 1,771,772 1925-24 3,317,000 4,052,547 1,977,490 :. 1924-25 2,537,000 5,125,970 2,278,900 .1925-26 2,487,000 4,875,672 1,959,948 •1926-27' ; ,3,255,000 4,508,710 2,360,080 1927-28 "J; 3,215,000 4,095,965 '2,936,164 19 28-'29 •• 2,735,000 5,196,308 2,894,879 : 1929-30 -.' 2,761,000 4,671,230 2,923,010 ." 1930-31 3,218,000 3,120,714 2,798,870 1931-32 .3,970,000 2,602,864 2,569,390 1932-33 4,684,000 • 1,995,079 1,380,449 1933-34 5,067,000 2.315,459 500,000 Source: Sugar Reference Book and Directory, 1934. '. A P P E H p I X 0 TABLE SH0W1HJ SUGAR ' PRODUCTION: IN- LONG TO:?S -OP BRITISH EMPIRE EXCLUDING Countries ; 1919-80 1920-21 1921-22 - 1922-23. - 1923-84 - 1924-25 1925-^26 j 1926-27 - 1927-28 •1928-29 1929-30 , •: 1930-31"' ' 1931-32.• 1932-33 1933-S4X Barbados Jamaica I r i n l d a d Others B r i t i s h Guiana-. S. A. Union-Mauritius 1 A u s t r a l i a ^ P i j i 8 U n i t e d Kingdom eOanada .'. 54,280 46,875 58,415 31,225 86,971 128,330 231,437 183,358 u 343,000 24,820 39,960 54, 935 22,985 87,188 135,268 179,354 301,876 a 199,000 - '36,740 42,165 59,9 50 27,515 110,985 140,070 231,190 309,150 46,000 127,000 82,7.15 39,050 41,620 -28,670 101,128 181,520 . 201,550 889,-500 36,000 :. 159,000 '44,-110 34,33 5: -52,045 22(545 95,494-144 , 20 0 , 224,710 430,344 64,000 295,000 49,315 48,845 69,630 29,085 90,874 213,808 :241,220 520,285 101,000 23,915 370,000 47,535 : .-• 57,6 75 73,560 36,730 . 107,580 216,216 192,591 416,940 69,000 51,784 267,754 58,685 1. 62,140 -j 51,980 ] 46,580 j 97,425 220,800 215,555 49 5,110 : 95,000 153,427 206,713 58,105-63,215i 81,550-45,395 114,610 - 264,285 247,7 52 533,550 94,000 190,109 244,930 66,275 58,-450: 89,925: 32,165 116,578 • 257,710 238,050 532,590 88,000• 19 5,209 235,455-58,700 F 67,850 : 79,850 , 43,100 117,250 348,335 220,960 -538,640 92,000 292,079 - 397,576 SO,548 55,500 98,573 27,525 126,145 291,012 163,210 605,212 76,000 :, 424,298. 435,998 83,261 .58,-606. 97,598 45,369 117,800' 320,-451 247,029 '532,618-73,000 251(383 505,671' 96,021 55,364 120,703 55,867 : 135,000--348,214 240(000 608,000 139,730 330,324 442,391 - . 98,420 - 64,937 ... 123,000 i - - 45,816 • , 137,760 343,500 255,840 619,920 123,000 463,038 430,670 1,303,091 1,036,384 -1,110,765 1,130,.753 1, 406,783 1,857,975 i 1,687,335 1,715,415 1,927,401 1,910,396 ;2,156,340 2,562,913 2,333,686 2,568,674 2,705,901 8 Bset-Sugar . - I a Not a v a i l a b l e | H Estimated - - i Source: Sugar Reference Bo 0* > « a Directory,- 1934* 183 xear U. i . A. Hawaii • Beet Sugar Cane Sugar 1920 972,250 151,000 508,470 1921 910,650 289,600 508,392 1922 602,500 253,300 502,194 1923 784,600 e 479,463 1924 976,700 79,000 620,000 1925 803,400 124,500 692,804 1926 801,800 42,670 705,350 192? 960,600 61,700 724,403 1928 947,300 117,850 807,160 1929' 908,900- 178,200 825,893 1930 1078,000 163,950 827,904 1931 1040,000 139,800 887,320 1-932 1207,000 198,800 915,495 1933 1460,000 206,250 924,595 1934? 1428,500 203,688 924,960 Porto Hioo Philippine 433,100 177,491 438,494 285,295 362,415 356,351 265,242 268,685 363,146 352,176 590,237 538,192 538,354 404,735 561,726 544,579 670,832 554,910 523,895 681,467 773,310 732,221 699,715 741,034 886,100 1,000,501 744,918 1,061,955 851,000 1,328,400 Total 2,24S,3M 2,432,331 2,086,860 1,797,990 2,391,022 2,749,133 2,592,909 2,853,008=; 3,078,072 3,118,153 3,575,385 3,507,869 4,430,656 4,628,753 4,736,548 6 Figures not available. * Estimate!. Sugar Reference Book ana Directory. 184 APPENDIX 0 TABLE SHOEING. .srjGTAB PRODPCIIQH I H LONG? TOHS 'If! YAmoilK B r a z i l San Domingo Formosa Egypt ' . A r g e n t i n a l o t a l 1919- 20 1920- 81 1921- 82 1928-23 1923- 24 1924- 25 1925- 26 1926- 27 19 27-28 1928-89 1829-30 1930- 31 1931- 38 1932- 33 1933- 34 H 492,984 596,304 484,008 600,856 787,200 664,800 637,632 736,198 1,003,680 910,200 913,152 934,800 1,000,000 303,078 258,792 311,988 315,764 311,988 305,040 277,488 369,000 364,080 354,284 415 , 848-401,472 395,568 414,264 485,000. 179,860 191,171 169,485 195,138 235,175 319,550 364,769 316,087 384,563 366,588 380,293 831,522 448,568 384,949 375,000 283,48B 348,176' 406,966 40 5,800 448,736 554,473 616,584 523,054 692,932 900,344 923,873 928, 751 1,147,360 797,678 778,000 . 92,000 110,000 129,218 149j383 16 6,932 165,883 190,282. 181,858 175,214 179,184 209,730 260,683 232,623 209,575 190,000 - 9 5,000 88,000 80,000 94,282 72,000 90,000 98,000 -90,000 180,000 144,368 168,251 185,000 125,000 198,768 169,248 805,656 244,016 241,064 390,680 467,300 414, 264 369,000 334,,560 369,984 376,872 347,352 348,438 315,000 1,057 1,078 1,812 1,994 . 1,907 2,329 ,182 ,087: 177 V 405:. 843" ,832 ,775,682 8,558,463 2,721,481 8,954,046 3,484,808 . 3,403,802 . 3,652,784 3,208,798 3,268,000 Figures not a v a i l a b l e * Estimated, Source: 1, Sugar RaferenceBook ana Direotory, 1934. 185 APPENDIX 0 BEET-SUGAR T?H0DU0TJOW n, m s , a n T n ' EUROPEAN nonfet-as BE^Ptt ^ (Haw sugar i n Metric Tons.) \ V : " Year 1910- 11 1911- 18 1918- 13 1913-14 1 1919- 80 1980-21 1921- 22 1922- 23 1923- 24 1924- 25 1925- 26 1926- 27 1927- 28 1988-28 8 1929- 30 1930- 31 1931- 32 1932- 33 J 1933- 34 Germany 2,606,122 1, 505,479 2,732,, 189 2(719,758 716,627 1 ,101,235 1 .311,419 1 ,463,000 1 ,134,611 1 ,575,684 1 1 585,161 1 1 657,088 1 1, 664,766 1 1, 725,000 1 1, 985,000 1 2, 547,000 1 1, 595,000 1, 088,000 Czecho-s l o v a k i a [1,270,955 504,700 713,166 654,171 786,472 997,993 ,409,703 ,487,920 ,031,489 ,239,155 050,000 814,000 634,000 514,000 'Hungary A u s t r i a 230, 500 11,430 32,700 60,000 82,000 125,000 208,354 166,286 (175,086 ,186,701 210,000 247,000 234,000 125,000 103,000 120,000 63,058 5, 210 14,786 14,219 24, 468 47,000 75,000 78,145 79, 686 1110,004 110,000 120,000 150,000 163,000 165, 000 175,000 724, 897 516,618 972,761 795,149 171,630 336,960 305,892 498,705 490,848 827,472 746,913 705,126 863,205 860,000 917,000 1,205,000 874,000 1,028,000 915,000 284,7.14 246,220 300,253 230,342 146,918 242,589 289,866 268,928 300,121 400,105 332,170 [233, 481 273,113 260,000 52,000 283,000 205,000 265, 000 245,000 221,359 267,607 316,933 229,523 238,692 317,196 380, 479 255,592 231,983 329,244 306,970 1286,185 1259,964 310,000 |l09(003 110,667 |157,000 144,000 [155,874 |l36,600 |146,800 90,500 109,500 141,800 |l82,8O0 55,000 1142,800 165,000 134,000 168,000 122,000 192,000 230,000 173,961 127,376 |131,961 137,106 145,008 |l64,2io 234,771 71,790 1149,427 135,000 204,497 20,871 |145 j 335 160,000 121,000 187,000 144,000 235,000 571,401 93,600 169,200 177,500 ,301,890 389(995 494,854 588,756 562,790 566,961 700,000 917,000 782,000 [492,000 417,006 ' TM n... " 1 1 -p-.'".""" 915,000 245,000 fennnX ZZZ'"™ •• 4".°00 319(00 2 I* t e r r i t o r y of the German Reich • the \ ' 1 , 000 [269,000 355-000 294 00 As estimated w r n n t l " " i o n , the beet-suear t l . 0 a , , / i , ~ I -—-I tea by F . o . L i c h t , November 30th, 192 8. Production amounted to 2,2.59,178 tor.s. Source I t a l y 190,406 173^158 216, 348 1334,064 188,738 139,941 238,196 1297,880 ~i 51,102 482,000 182,000 [313,738 284,876 380,000' 435,000 415(000 36,000 319,000 |2 ,d00l Spain 69,300 75,600 126,409| 188,200 9i,e6o 836 i900 ">88 ,400 .170 , 000 185 ,063 860 ,000 250 000 245 000 259 964 238, 000 867, 000 344, 000 423, 000 279, 000 294, 000 Russia 2,144,139 2,046,065 1,372,214 1,740,360 •'. .[ 88,279 " 100,87.5 56,414 220,000 360,000 ^458,375. .(180,000 •983,000 .,561(986 ,380,000 ,921(000: 1,5 78,000 1,689,000 918,000 1,210,000 Sugar, league of Nations, Economic and F i n a n c i a l Section, 1929* 186 d . o « H • P ft d d . o o H oJ el SH O d - H H cd d H O g • H rH O 1 taD p , « l W EH O O o • r l 4 * P i i • a. - a 03 M P i O o H ' cd rH F) ^ o 4 » <r» r H - P d cd O H • H 0 f-l P ) &o o <4 A) i n EH is; £> o to " O H o O t - O B f J f f l t f l C v O • e • • e <s s « o O H C X J l O r - H M n J t ^ j t c j s H C O t O t O t O t O t O " # ' H . I ^ - t H < d . ! i n i o t O O O O b r l r s H O O f f l i O • • • # « • • a e $ • •* cd o • H eS u d d cd r-i u +» <D tf r d A <D - P d , p j cd © m o d S < l TO o H cd Cj <D fi) (S3 * d © W CD H fn N >d •p cd • H d j £ Cd o m <d <D feO-P PJ cd • H - P M to ; M r-i • d <xi u cd cd OS <D • P +=> •H >H <fl iH d ra F! F i ® d H H tO CM t O 10 t<5 00 O O • o • • © o « e « o © 0 o » o> o cxj t o t o t o t o t o t o o o H H H H H W N W M i f l H t ~ O H O CVJ O t O l O H t O 0ft • A • • « (O <D (D <0 N CO H tt) O CO O H i o c o - * m r > ! D « o t o t o H < i t o © r > » C 0 H • Cd CO 43 * H t 3 tf d cd P< etf >d P i FS . 1-3 CO H J r l rH O cd o d H d © F i d 63 -ri £ bO !4 H © ffl T-t > o H ra d O T H ^ ! H o + » © ra to d d o • H • P P ( a d ® ra F i t o o i - o H ' t o rtf F i H cd d . . M o O • r l O • P c q 6. . d U • d cd o (D u f H P i r H f-l cd cd : O tiO d • P t o M • H r d 4 » H 05 r i • P O CO m i FJ o » e h> ! > 4 » • O cd O r - i {35 i ' « « o <rH d o o O H CQ m 43 » d S4 P I fjfl © p< cd © O r H cc W 187 Appendix E Table showing production and c onsumptionin su^ar producing c o u n t r i e s f o r the year 1932-33 "country. -fro due t i on" Consumption I n d i a United States F n l t e d Kingdom Cane Beet Java (Mb a Hawaii P h i l i p p i n e s f o r t o Sico Germany . Seance R u s s i a . Czech©Slovakia B r a z i l B r i t i s h W. i n d i e s Canada A u s t r a l i a Peru Japan (Formosa & Korea) Argentina Poland 4,727,000 573,000 1,56-3,00.0 240,000 2 ,759,000 2 ,053,000. : 933,000 1,164^000 75^,ooo 1,088,000 1,022 ,000 810,000 634,000 92-5,000 355; 000 a. 427,000. 545,000 420,000 824,000 352,000 417,000 5,162,000 i\112 ,000 2 J'^.ooo 402 ,000 100,00.0 20,000 . .' 75,000* 50,000 1,503,000 1,052,000 960,000* 599,000 840,00.0* 44,000 436,000 339,000 60,000 915,000 350 ',000* 315,000 18? (a) Appendix E (continued) G;Otmtry : I t a l y A u s t r i a Be lgium Benmarfc . Sweden Spain South A f r i c a Egypt M a u r i t i u s Mexico Other European San fiomlngo Other A s i s t i c i l j i . ' Production 319,000 165 ,000 26-5,000 192,000 235 ,000 279,000 526,000 171,000 251,000 190,000 273,000 451 ,000 278,000 159,000 Consumption 319,000 172,000 226,000 195,000 260,000 296,000 169 ,000 150,000* 10,000 211,000 779,000 28,000 168,000 80,000* l _ I * Estimated a Include K e f i r i i n g ~b Beet and Cane •' Source Sugar Reference Book and B i r e e t o r y , 1934 188 tn u •P •H . . L O ^ ' '-° o I N L O to ^fi in cv! S S t W ft H LO M to o o o « tn n 3 hi r-l r-l r-l r-l r-l r - l r-1 • ' i—1 r-H r-l P H n "sf* r-i r-i o o o o o o o ,.~r o to , C O ,o> r-1 r-l O O O O O O 0 o o •* *\ ^ in. o to LQ ( O H CO to tQ ft* ^  0 1 CV! «yt r-i CV? CV? o o o o o o O O O o o o o o " o LO Cv! LO CO W O) IS Is N O Ol B -to • to to ZS cv ca cv> cv? cv? 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O i> C- 03 CO CTi O O O r-l r-l f-l r-l rH 1—1 rH i-H r-l rH r-l O tO tO o to co s <> » lO 'tO LO rH O Q rH 1—I rH r-i '-J o r-t 'rt , 0 a O U P-i S m 03 OJ o 5f <J tf H 1 0 o to C*- rH K I to O H O *4< c:> ^ &. m w to i s w to O r- to I N c> to o- in I N , ! - - , to co c-. 1 0 H q o H H W i o i n i o i o N - t - o to in to rH r-i rH r-l r-t r-H r-l r •  r-i rH r-i r-i r-l r-l rH «s to w t>3 fl'CB P •<-! -H q. u O P (H O .i] ,CCj ( I r O tS . <u co Dt-O 4 fH <U I ' 0 to ^ ts to in co o "«s t-t "in. co ss i s cn a W LI O B tf b ^ cn O C' to to O JN CO • • * 0 9 « » e 4 a • * « © « tO tO LO CO O C M tO O CO IN O <cj< CO ft! rH C M C M C M to «H,i-<^ 4 «Hi ^ 1 «H< LO to ^ l to M< O O !N r-l nil r-l rH to t - O tS JS CO CO O CO Lfj LO O r-l r-H r-l ZN !N O .O 't-t CM CM LO IN to E- oV CM rH bl H O I-l r-l rH r-1 rH r-l r-l rH r-l r-l Cv! OJ C! CM 02 rcf CO <1> <t> •H rj d -P p. CO tO O fc» O tO CO rH i> to co o to t s r- -^i to 3^' t- c~ co r-i O to to co LO ^ L O t o t o i n t - t o c o c n o r-l r-l rH rH r-i r-l rH r-l rH CJ to CVJ Cv! CM to o o CM CM CO o LO t> Cn CO o w tD to CM to CO to o •CJ o on rH CM o o cn o to CTi to O in -P © » » 0 » « & a . « « -» «• « .u - • cn IQ t> CTI CM rH ca CM to to LO to rS f i rH rH rH rH i-l r-H i- l rH. rH ft LO LO CO JN r-l to to CTi 2N tO Cfs r-l to w !S to CM •3' £- !> to cn to CO o LO cn CM 1> * t> 9 » e » e 9 a « » o r-l rH w < ^ LO CO CO. CO CO to CO to , h> rH rH rH H H rH rH l—i r-i r-i l~" I r-l o r-l O to to CO CO rH >f in to «3» O CO * ^ -cd CM CM rH O rH LO r-i rH CO CO cn . ,o - * » St <» e * « •k -. * - 4 « *> d o LO LO to to to rH; CT! to to o to CM o C\2 C\J CM OJ CM' to « w CV2 to CM rH r-l H .' cd . ' .CM' CO C0( to H CO CO rH to to CM !N to r-l •H to C\2 CO to C\2 to w O to CO to CM IS ro' • » la » - « » •A 4 * « to to C7», rH to 01 O O ! N ! N o LO o CM rH H rH r-i r-l W rH r-H CM. rH rH -CM. CM to •to O H CM to <;}< LO to t>- CO cn O r-H CXI c\! CM CM C M W C M C M C M C M t O t O I t I I ! i I ) 'I I I i CJ> O r-H CM bO ^ i lO to IS CO cn O r-H CM CM CM CM CM CM CM Cv! CSJ Cv! fcO 0>'.-.cv> cfs CTJ cn cn cn cn cr> cn cn cr> r-H r~l r-i r-l rH rH r-l r-i rH i-H r-l rH CM tO to to to t I ! r-H Cv! tO t o to to cn cn cn r ! H H 192 APPENDIX J Unit of Measure Long Ton Short Ton Metric Ton Metric ton Short ton Long ton 0 .98420 0.89285 1.00000 1.10230 loOOOOO 1.11999 1.00000 .90718 1.01605 1 Long ton 1 Short ton 1 Metr i c ton 2240 pounds 2000 pounds 2205 pounds 1 cwt. = 112 pounds - 0.05030 Metric ton s 0.05600 Short to 1 hectare = 2.47109 acres; 1 acre = 0.40468 hectare. 193 LITERATURE' CITED". I . Bowling-, .R; N., Sugar Beet and Beet Sugar, Ernest Benn l i m i t e d , London,. 1928. 2.. G e e r l i n g s , H. C. Pri n s e n , The World Cane Sugar Industry, Norman. Rodger, Altrincham:, 1912:. 3. Ghosh, H. H., Sugar i n I n d i a , Industry Book Department, Keatiub Bahabn, 1934. 4. Maxwell, F..» Economic Aspects of Cane Sugar Production* Norman Roger, London, 1927. 5. Reynolds, P. K., The Story of Cuban Sugar? United F r u i t Company, Boston, Massachusetts, 1924. 6. Robertson, C. J B . Sc.;: M. A., Ph. D., World Sugar Pro-du e t i a n and Consumption, John Bale Sons and Danielson, Ltd.., 1934. 7. Smith, J . R u s s e l l , I n d u s t r i a l and Commercial Geography? Henry H o l t and Company, New York, 192B. 8. Surface, G. T., Ph. D'. , M.. Sc., The Story of Sugar, D. Apple ton and Company, New York and London, 1910.. 9. Watts, F r a n c i s , S i r , K. C., M. G., Reports on the Mauri-t i u s Sugar Industry,, 1929.. GOVERNMENT REPORTS. 10. Reports of the We.s*h Indian Sugar Commission, 1930.. I I . The United States T a r i f f Commission Report, 1926. 12. The United States T a r i f f Commission Report, 1934. 13. Imperial Sugar Cane Research Conference, London, 1931. 14. Report of the United Kingdom Sugar Inquiry Committee, 1935. LEAGUED OF NATIONS- PUBLIGATLONS'.. 15. Economic and F i n a n c i a l Section, Sugar, C. 148. M.. 57, 1929. 16. The l o r l d Sugar S i t u a t i o n , Repprt by the Economic Committee of the League of Nations, 1929. 194 OTHER BOOKS. 17. World A g r i c u l t u r e , An I n t e r n a t i o n a l Survey, Oxford University- Press, London, 1932.:. 18. Proceeding o f the Third I n t e r n a t i o n a l Conference of A g r i c u l t u r a l Economists.. Oxford U n i v e r s i t y Press, London, 1935. 19. Encyclopaedia. B r i t a n n i c a , 11th E d i t i o n ^ V o l . XETI, Cambridge U n i v e r s i t y Press, 1910-11. 20. The New I n t e r n a t i o n a l Encyclopaedia, 2nd E d i t i o n , V o l . XXI, Dodd, Mead, and Company, New York.* 1922. 21. Indian Year Book, 193S-34. 2&. Japan Year Book, 1933. JOURNALS. 23. Economists, London, 1871 to 1935. 24. Facts About Sugar, New York, 1934. 2:5. I n t e r n a t i o n a l Sugar J o u r n a l , London, 1934. 2.6. I n t e r n a t i o n a l Sugar J o u r n a l , London, 1935-1936. 

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