The Rise in Sugar and its Causes.
Writing on April 16, the ‘Standard’s’ Vienna correspondent says:—Sugar rose again to-day at Prague, the principal market in Austria, in harmony with the continuous advance reported from other quarters. The reasons assigned for the improvement by the organa of the sugar refiners in this country are partly an actual scarcity of supply—a fact mentioned in the recent discussion in the House of Commons—and partly the prospect of an International Convention, which is distasteful to Continental sugar refiners. There is, however, reason to believe that the chief cause for the continuous rise in the price of the article is the existence of an international sugar trust on the American model—a matter on which the organs of the Continental refiners naturally say nothing. Towards the end of February the ‘Standard ’ mentioned the fact that the Austrian sugar refiners were in negotiation with a view to the formation of a sugar trust, the aim being to raise the price for Home consumption. The proposal was that, in addition to the amount granted by the State, one florin per double hundredweight should be paid as extra bounty to the refiners working for the export trade by those working principally for Home consumption. The calculation was that the larger exports would, by Uiminishina the supply at Home, lead to a natural advance of the latter in price. This scheme, however, has proved impracticable, and a project of quite an opposite character appears now to have been adopted. Statistics show that the quantity corresponding to the maximum bounty in this empire—that is, five million florins—had already been exhausted for the present season, which will last till next beetroot harvest. Fresh exports fiom Austria before the new harvest would therefore cause a loss instead of a gain. Similar calculations with regard to other exporting countries also showed a diminished visible supply. The conditions were therefore favorable to an international European trust, and from that time forward the sugar market appeared to be regulated by some occult means. Like other combinations of the kind, the object of the trust is, in part of course, to secure higher prices; but the principal aim in the present instance appears to be to baffle the efforts of Baron Henry De Worms. In keeping with this object, the organs of Austrian refiners predict that the Convention Bill now before the British Parliament will not pass.
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The Rise in Sugar and its Causes., Evening Star, Issue 7961, 17 July 1889
The Rise in Sugar and its Causes. Evening Star, Issue 7961, 17 July 1889
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