Something about sugar : $b Its history, growth, manufacture and distributionRolph, George M. (George Morrison)
History
Something about sugar : $b Its history, growth, manufacture and distribution
Rolph, George M. (George Morrison)
Sugar
Owing, however, to a severe agricultural crisis at this time, American
cereals were brought into Europe at such low prices that the home grower
could not compete. It therefore became necessary to find another crop for
the land that had been sown to corn and the beet-root was the logical
substitute. The increase in beet production from this cause was followed
by a crash in sugar prices. With such a condition confronting it, the
German government could not do away with, or even reduce, the bounty,
especially as none of its neighbors seemed to have any intention of doing
anything in this direction. In the interests of the beet growers, the
output of beets in 1895, instead of being restricted as proposed, was
doubled, and the export bounty on raw sugar was raised from 1.25[24]
marks to 2.50 marks per 100 kilograms and on refined from 2 marks to 3.55
marks per 100 kilograms.
This legislation was meant to foster the export trade and bring the sugar
business of foreign countries to German manufacturers, and the framers of
the law were confident that other countries would not venture to follow
suit. In this they were utterly mistaken. Germany’s competitors simply
raised their bounties to her figures, thus nullifying her plans for
expansion of her export sugar trade.
In 1897 the United States levied a countervailing duty on all
bounty-nourished sugar, in addition to the regular protective tariff,
so that the bounty paid by European countries on sugar exported to the
United States simply went to enrich the United States treasury.
The manufacturers of Germany and Austria enjoyed a profit over and above
the bounty by the adoption of what was termed a cartel, or pool, a plan
borrowed from Russia.
Public-domain text, read in full here on John Shaqi.
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