The Forgotten Man, and Other EssaysSumner, William Graham
Science
The Forgotten Man, and Other Essays
Sumner, William Graham
Economics; Social sciences
Nothing could demonstrate the absurdity of the present rate of drawback
more clearly than the above. A refiner pays 6½ cents per hundred
more for raw sugar testing 2° less saccharine than he sells refined
for. Not, however, to the American consumers, but to foreigners.
After paying the expenses necessary to refining by the assistance
of a drawback, which clearly amounts to a subsidy of about 50 cents
a hundred pounds, our large sugar monopolists are assisted by the
government to increase the cost of sugar to American consumers. One
firm controls almost the entire trade of the east; at all events it is
safe to say that the trade of the entire country is controlled by three
firms, and the Treasury assists this monopoly in sustaining prices
against the interest of the country at large. Up to date the exports of
refined sugar have amounted to 83,340 tons, which, taken at 50 cents
a hundred, has cost the treasury over $830,000. All this may not have
gone into the pockets of the refiners, as the ship owners have obtained
a share, but the fact remains that the Treasury is the loser by this
amount. Besides this bounty presses hard upon the consumers. They not
only have to pay the tax, but during the late rise they were compelled
to pay more for their sugar than they otherwise would have done had not
the export demand caused by selling sugar to foreigners at less than
cost, the Treasury paying the difference, increased prices. While an
American consumer is charged 6½ cents for granulated, foreign buyers,
through the liberality of our government, can buy it under 3¾ cents.
Certainly it is time that the Secretary of the Treasury asked the
sugar commission to commence a comprehensive and impartial inquiry.”
Public-domain text, read in full here on John Shaqi.
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