The Forgotten Man, and Other EssaysSumner, William Graham
Science
The Forgotten Man, and Other Essays
Sumner, William Graham
Economics; Social sciences
80. No sooner, however, does Germany get her export bounty in good
working order than the Austrian sugar refiners besiege their government
to know whether Germany is to have the monopoly of giving sugar to the
Englishmen.[12] They get a bounty and compete for that privilege. Then
the French refiners say that they cannot compete, and must be enabled
to compete in giving sugar to the Englishmen. I believe that their case
is under favorable consideration.
80_a._ I have found it harder (as is usually the case) to get recorded
information about the trade and industry of our own country than about
those of foreign nations. However, we too, although we do not raise
beet-sugar, have our share in this bounty folly, as may be seen by
the following statement, which comes to hand just in time to serve my
purpose.[13] “The export of refined sugar [from the United States]
is entirely confined to hard sugars, or, to be more explicit, loaf,
crushed, and granulated. This is because the drawback upon this class
of sugar is so large that refiners are enabled to sell them at less
than cost. The highest collectable duty upon sugar testing as high as
99° is but 2.36, but the drawback upon granulated testing the same, and
in the case of crushed and loaf less, is 2.82 less 1 per cent. This
is exactly 43 cents per one hundred pounds more than the government
receives in duty. But it rarely happens that raw sugar is imported
testing 99°, and never for refining purposes. The following table gives
the rates of duty upon the average grades used in refining:
Degrees Duty
Fair refining testing 89 1.96
Fair refining testing 90 2.00
Centrifugal testing 96 2.28
Beet-sugar testing 88 1.92
It will be clearly seen from the above figures that with a net drawback
upon hard sugar of 2.79 our refiners are able to sell to foreigners,
through the assistance of our Treasury, sugar at less than cost.
Taking, for instance, the net price of centrifugal testing only 97° and
the net price less drawback of granulated:
Centrifugal raw sugar testing 97° 6.00
Less duty 2.28
Net ----- 3.72
Granulated refined testing 99° 6.37½
Less drawback 2.71
Net ----- 3.66½
--------
6½
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