way of compensation a premium of 9 livres, 15 sous was granted to refiners on every quintal (100 kilog.) exported. This law remained in force until 1786 when it was decided that all sugar coming from French colonies and refined in French ports should receive a rebate of the amount of the duty paid on it as raw sugar. At that time it was estimated that a quintal of refined, which was equivalent to 170 to 180 pounds represented 225 pounds of raw sugar. In addition to this the exporter received 4 livres for each quintal if he could conclusively show that the goods had reached the destination he had declared.

These premiums were abolished by the law of March 15th, 1791, but re-established by the law of 8 Floréal an XI (28th April, 1803). At first fixed at 50 francs, they were increased gradually to 110 francs by the law of March 11th, 1819. Since then laws dealing with the sugar industry came in rapid succession. The endeavour, evidently, was to conciliate two conflicting interests: the interest of the colonial sugar planters and the interest of the beetroot sugar growers at home. The government itself came to the conclusion that the problem could not be solved, and on the 11th of January, 1843, it proposed to buy up the entire beetroot sugar industry for 40 millions of francs, and to put an end to it once for all. Had the proposal, which found warm supporters in Berryer and Lamartine, been accepted it would have saved our political assemblies much time, it would have made useless many a parliamentary intrigue, and it would have kept many hundred millions of francs in the pockets of the French consumers and taxpayers.

The actual legislation in France took shape in 1884. The nature of the bounties now in force is twofold; those granted by the laws of 1884 are bounties on production, while those established by the law of April 7th, 1897, are direct bounties on exportation.

This is the principle: the duty applies to a yield intentionally assumed too low; the sugar produced in ex

cess of this yield is exempted from part or the whole of the duty. The difference between the taxed sugar and the produced sugar constitutes the bounty or premium on manufacture.

According to the law of July, 1884, the weight of sugar to be taxed was fixed according to the weight of the beetroot sent in for manufacture. The proportion was that of every 100 kilog. of beetroot submitted to the diffusion process, 6 kilog. of refined sugar should be dutiable. All sugar obtained in excess of the 6 kilog., as well as syrups and molasses, was duty free. However, the legislators saw soon enough that the valuation of the yield was too low, and it was raised to 64 kilog. for the season 1887-88, to 6 kilog. for 1888-89, 64 kilog. for 1889-90, and 7 kilog. for 1890-91.

Almost immediately the quota of surplus yield reached 31.21 per cent. of the production. The tax was swallowed by the bounty.

The law of 1884 was modified by the law of May 27th, 1887, which shows clearly the mechanism of the whole system.

In order to give a premium to sugar manufacturers the duty on consumed sugar, fixed at 40 fr. by the law of July 19th, 1880, was raised to 50 fr. The law of May 27th, 1887, established a temporary surtax of 20 per cent. on all sugar liable to duty, even on sugar used by vinegrowers. This surtax brought the duty therefore to 60 fr. It is true that this increase was presented as a "temporary one" only. The surtax of 20 per cent.equivalent to 10 fr.-was to be paid on sugar hitherto free from duty, and in reality therefore the provisions of the law of 1884, shielding the manufacturer up to 189091, were violated. The law of July 24th, 1888, reduced to 40 fr. the duty of 50 fr. on every 100 kilog. of refined sugar, but article 2 of the same law imposed a temporary surtax of 50 per cent. on sugar dutiable whatever its origin. Thus the consumption duty of 60 fr. was maintained, but owing to these new arrangements it became

possible "to increase from 10 fr. to 20 fr. a special equivalent duty on sugar free from the ordinary taxation." This special duty was afterwards raised to 30 fr. by the law of August 5th, 1890.

Finally the law of June 29th, 1891, organised the régime of to-day.

The legal yield is reckoned at 7 kilog. of sugar for every hundred kilog. of beetroot.

When the actual yield is not more than 10 kilog. of refined sugar for every 100 kilog. of beetroot, the whole of the surplus yield benefits by the reduced taxation according to the law of August 5th, 1890, that is, all the sugar exceeding the 7 kilog. pays only 30 fr. duty. If the 100 kilog. beetroot yields more than 10 kilog. refined, one half of the additional surplus pays the 30 fr. duty, the other half pays 60 fr., i.e., the weight of refined exceeding 10 kilog. pays 45 fr. per 100 kilog. Supposing that a manufacturer has used 10,000,000 kilog. of beetroot with an output of 11.50 per cent. of refined sugar, his debit account with the Government stands thus:

This amounts to an average duty of 51 fr. 50 for every 100 kilog. of refined sugar and gives to the manufacturer a "boni" (rebate or premium) of 8 fr. 48 for every 100 kilog. of refined sugar, i.c., 9 fr. 75 for each ton of beetroot. In other words it means that whereas 1,150,000 kilog. of refined has been manufactured, only 987,500 kilog. were subject to the normal duty of 60 fr. It will be seen later on* that the manufacturer finds it more ad

* See Part 3rd, Chap. V. Agriculture, molasses, and bounty-fed alcohol.

vantageous to keep to the actual yield of 10 kilog., and thus he limits it. A sum of 0 fr. 30 for each ton of beetroot is paid by the manufacturer as a compensation for the expense of the excisemen on duty in his premises.

For the year 1899, the quantity of sugar which thus benefited by the reduced tariff, was 249,644,526 kilog., being 28.72 per cent. of the total quantity manufactured. The total allowance of the "boni" (premium) at the rate of 30 francs for every 100 kilog. of sugar under reduced taxation, amounted to 74,893,358 fr., i.e., 8 fr. 62 for every 100 kilog. of refined sugar produced (including the 14 per cent. of sugar contained by the molasses sent to the distillers, to agriculturists, or sent abroad).

III.

Colonial Sugars.

ON Colonial sugar, the law of 1884, accorded, as rebate, a fixed percentage of waste (déchet) of 12 per cent., and afterwards of 24 per cent. The law of July 13th, 1886, enacted a different system: sugar produced in the French colonies and exported home is allowed a fixed percentage of waste (déchet) equal to the average surplus of yield obtained in the previous year, 1st September--31st Aug., by the beetroot sugar manufacturers. The French Government calculates and fixes accordingly for every terminated season, the premium to be given to the native industry. According to official calculation the average boni in 1897-98, was 8 fr. 40 per 100 kilog., in 1898-99 it was 8 fr. 79, and 8 fr. 62 in 1899-1900.

According to the law of January 11th, 1892, dealing with the customs tariff, raw and refined sugar exported from the colonies to France is exempted from all surtax, but candy sugar pays a surtax of 4 fr. 20. French molasses for distilling purposes are entirely free from duties, but molasses used for all other purposes are taxed at the same rate as foreign molasses.