Harper's Pictorial Library of the World War, Volume XII : $b The Great Results of the War
History
Harper's Pictorial Library of the World War, Volume XII : $b The Great Results of the War
League of Nations; Treaty of Versailles (1919 June 28); World War, 1914-1918; World War, 1914-1918 -- Economic aspects; World War, 1914-1918 -- Finance
Among the multiform activities of the American Food Administration, the
distribution of sugar was most difficult. America had to supply sugar to
the Allies and retain enough for the use of its own people. The matter
of the feeling of personal self-sacrifice was difficult enough but there
was the further question of how to organize and allocate distribution.
The government had to decide the amount to be distributed to sugar-using
industries. These industries had to be classified. For the manufacture
of soft drinks it was decided to allow only one-half of the sugar used
in normal times. Bakers were given a 70 percent. allotment and hotels
were permitted three pounds of sugar to every ninety meals served,
including cooking.
The sugar resources of the country, both cane and beet-root, were
regulated by the so-called Sugar Equalization Board. The operation of
this body was explained officially in the _Literary Digest_:
"This board is a part of the Food Administration and approved
by the President. Its purpose is to equalize the cost of
various sugars and to secure better distribution. It can also
coöperate with the Allies in the procurement of sugar for them
and in the adjustment of overseas freight rates. Through
capital supplied by the President through his special funds, it
is enabled, when desirable, to buy up all available sugars at
different prices and resell them at one fixed and even rate.
"In other words, it provides a sort of vast storehouse of
sugar, which may be doled out where it is most needed, at a
price secure from the fluctuations otherwise inevitable in war
time."
KEEPING DOWN THE PRICE
What might happen without this Sugar Equalization Board is illustrated
by the Civil War, when sugar, because of speculation, went as high as
thirty-five cents a pound. And at _that_ time there was no world
shortage of sugar. If there were no sort of sugar control today, it may
readily be believed that the consumer might have to pay sugar prices
soaring far above those Civil War levels.
"It costs more to produce and market some sugars (such as
domestic beet sugar and Louisiana cane) than it does others,
such as Cuban cane sugar. But that is no reason why the sugar
manufacturer, whose production costs are high, should suffer,
even to the extent of being forced out of the market. Nor can
the country afford to have this happen under present war time
shortage of nearby supplies. Consequently, when it becomes
necessary, the Sugar Equalization Board through its purchasing
powers can insure fair profits to the manufacturers. Then the
Board may resell this sugar, so that it reaches the public at a
price lower than what the maximum would otherwise be."
POTATO ECONOMY
Public-domain text, read in full here on John Shaqi.
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