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f,\\{;*/ )’ ’ f‘ " | : "; ' *’;z ‘ i | & | ) «! V | Q& %\] 7 @ & N (;.@7 « e . 76TH Y AR. : THE ST. CROIX AVIS s printed and published daily (Sundays and Holidays excepted) by G. Johansen at the Avis Offi ce. TER)S---50 cents monthly in advance. 2 cents per single copy. bintered as second-ciass matter May 26th 1917 at the Post OJice at Christian sted. St Crowe, V. (. ofletl. 5. A.. o 8 der the Act of March 3. 1874 Contribution to this paper will "= glad ly received when the same deals wiwh mat- ters of general interest, and is ac:ompa- nied with the author’s name, as a quar- antee of good faith. The editor,cannot be responsible for the views of his correspon- dentsnor does he necessarily endorse them. ol iT s e e s S Re s 1 " THE SUGAR SITUATION A REASONED AMERICAN FORECAST. Messers Hayden, Stone & Co., of New York and Boston, in their Weekly Mar- ket Letter, dated Deecember Z4th, write: “In ali the uncertairty which surrounds the immediate future of the sugar in- dustry, a few facts stands out clearly. It may be helpful at this time to elabor- ate some of these determinable factors. For one thing th> decline which has proceeded to much more drastic lengths than was generally considered probable —has carried the price down below the cost of production. Itis very doubtful if more than a very few Cuban miils could produce “hei- 1921 sugar crov at a selling price of 34c¢c per I and avoid a loss. Therefore, were recent prices to prevail during the coming crop sea- son, it would mean a year of loss to the great majonity of Cuban producers. The same statement is broadly true o Porto Rico of Louisiana, and the vari ous American beet companies. It is of course possible that sugar an agricul- tural erop, during this period of cata- clys:ie commodity price readjustment, will have to be produced for a season on a non-nrofitable or positively unprofitable basis. “The mere fact that any commodi- ty has declined below its cost of produc- tion does not' prove that the price will” instantly or automatically recover to a cost price level. It is a fundamental axiom of political economy, that gocds cannot be long created at less than the cost of production. But there is no rule of thumb by which the exact length of tirpe during which goods may be produc- ed at a loss can be determined. CHRISTIaNSIiED. V.I. U S. A, THURSDAY 24tH MARCH 1921. "Tne sugar equilibrium of the world has been preofoundly disturbad, and the rastoration Hf equilibriam s a parplex ing economic problem. [he Cuban su- gar industry never suffered from a more costly experiencé than the spectacular alvares 1n raw sagar prices to a hzight of 23¢c. per .. When raw sugar got abrve 15¢. per . it got into the danger zone in the sense that the continuance of such prices open-d the flood gates to an avalanche of sugzar in the United States from every corner of the sugar producing world ['nis natural tendency was powerfully aided and abetted by the positive actior as the refi ers in going after heavy tonnages of oriental sugars. It was these sugars whica finally over- loacded the market and created a wide open break in sugar prices thar has cost every factor in the sugar industry, with one exzaption, the loss of some hundreds of milions of 4dollars. The one excep- tion to which we just referrad is the Cu- | nan sugar companies They have been in the unique nosition all through the past few montns o demoraliza‘ion, of having no inventory losses to adjust. | Thanks to the fact of an unusuzally early closing season because of drought, 90 per cent, of the Cuban crop was pro- | duced and sold befor2 the price slump was well developed. [ne other 10 per | cent, of unsold Cuban sugars could have been marketed, except for the greed of | spaculators who ware holding tor h gher | prices. Broadly speaking 80 per cent of | the Cuban erop is produced by "companies | controlled by Americam capital vrhile 50 | per cant is produced by Caban controlled | properties. The American companies, | praciically withou- exception, cleaned ap | their 1920 crop and werc free of sagar | when the August price deciine started. | This is perhaps the most encouraging | feature of the present sugar situation | from the standpoint of the Cuban com- | panies. The American owned Cuban | companies have no 1920 inventory losses to absorb. Thev enter the 1921 crop year with clean hands and, generally speaking, vith a year of record earnings benind them. Th:re is“also the possi- | bility that rhe price readjustment will i be completed in time to perivit them to | gat the -benefit of stabilization before l the 1921 crop year is over. - | “*At present the chief sufferers from l the sugar situation in the United States are the refiners and the beet companies. | The 1920 beet crop promises to run be- | tween 925,000 and 950,000 tons, a 40 ' percent, increase over 1919. In fact, No. 67. this increasein beets nearly offsets the drought shortage -in Cuba. ['he beet companies have sold less than 15 per- ceat, o’ this year’s crop, and will ap- parently carry over in 1921, 709,000 to 800,000 tons of unsold sugar. Other unsold sugars, iicluding the remaining portion of the Cuban erop, are sufficient to bring the carry over of ‘sugav in American markets into 1921 to a total of 1,250,000 tons, which is about three months consumption. The big bulk of sugar is bound tn act as a price de- pressent until largely absorbed. Hap- pily there arve solid grounds for the hope th t Europe may demand severai hundred thoustnd tons of raw or re- fined sugar during the first quarter of next vear Suzh buying is logical to expeet. if England and France are to continue to consume sugar, because the United srates is today the lowest priced market in the world. (West India Com- mattee Circular.) : HE undersioned begs to advise that the business and store heretofore conducted on he first floor of her residence No. 38 Company Street, near the Sunday Market, is removed to the second floor where she is prepared to serve her patrons as usual. The first floor of the building, equip- ped with ecounters and glasscases, is offered for rent upon ressonabie rerms. The quarters are spacious and airy, and admirably suited and located for busi- ness. Christiatsted, St. Croix, V. 1., March 15, 1921. L. ALICE NILES. $ j [he World’s Aimanac For 1921 may bte bought at ihis offi.c a1 75 cents a copy. This issue is leplete with information of varied interest. FOR sALE ¢ " i ® D é -y One Only Ford Car Condition as good as new, for particulars apply at this office.