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
Great Britain’s action in joining the Brussels convention aroused a
good deal of feeling at home. The contention was made that it worked an
injury to the British consumer in causing an advance in prices; it was
also argued that the plea put forth in behalf of the West Indies was
really instigated by the selfishness of British investors in colonial
sugar plantations. The rise in price that followed the convention was
stimulated by the shortage in the European beet crop in 1904, and
provoked much agitation and dissatisfaction in England, so that it was
not certain that Great Britain would be a party to a renewal of the pact
upon its expiration.
Subsequently Peru, Luxembourg and Switzerland joined the convention, and
the contracting parties were so well satisfied with results obtained
that they extended the agreement for five years beginning September 1,
1908. The conditions were to remain unchanged, except for an amendment
that permitted Great Britain to disregard the article that prohibited the
importation of bountied sugar, unless paying countervailing duty. This
prohibition directly affected Russian sugars, of which England did not
wish to be deprived.
Russia joined the convention in 1908, with the understanding that her
existing fiscal laws and excise regulations should not be interfered with
and that the method of fixing the price of sugar for home consumption
should rest undisturbed. On her part, Russia undertook not to export more
than one million tons during the next five years outside of Finland,
Persia and neighboring Asiatic countries.
The convention with these modifications was thus extended to September,
1913, and on March 15, 1912, it was agreed to prolong it until August 31,
1918, on practically the same conditions as the 1908 convention. Because
of the great drought in central Europe in the summer of 1911, there
was a shortage of 2,000,000 tons in the beet-sugar crop of 1911-12, as
compared with the former year, and, on account of the consequent rise in
price, England demanded that the Russian exports be increased. The other
signatory powers agreed to this and the amount that Russia was permitted
to export in the seven years beginning September 1, 1911, was fixed at
1,650,000 tons.
In August, 1912, Sir Edward Grey gave notice of Great Britain’s intention
to retire from the convention on September 1, 1913, and on that date
she ceased to be a party to it. Nevertheless, after her withdrawal she
undertook to observe all the obligations of the convention, and in return
the signatory powers agreed not to discriminate against her manufactures
of sugar.
The convention stopped exportation of beet sugar at abnormally low
prices. It was instrumental in lowering the revenue tax, increasing the
consumption and abolishing artificial conditions.
Public-domain text, read in full here on John Shaqi.
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