On the sales for exportation a loss on the difference between 27,685 and 140,454 poods = 112,769 poods of a loss of 112,769 x 47 copecks = 53,001 r. = This leaves a surplus of profit of 148,973 r. - 53,001 r. € 95,972 r. Manufacturers are not debarred by the law from exchanging between them their shares of home market sales, so that an Odessa factory exports the whole of its output and sends its permits to inland factories. M. d'Aulnis de Bourouill calculates as follows the bounty for the season 1898-99, according to particulars of the month of October, 1898. Price of sugar without duty in Russia Difference ... ... ... ... r. 2.95 1.70 Such is the advantage which the sales on the home market produce. To calculate the export bounty we must not take into account the fixed obligatory quantity of 60,000 poods for each of the 244 mills. This leaves for sale 35,500,000 14,640,000 20,860,000 poods x 1.25 r. 26,075,000 r. When we divide this by the amount of ready stock, i.e. 43,187,838, we obtain 0,603 r. per pood or 9 fr. 81 per 100 kilog. = = And such is, at the rate taken for this calculation, the amount of export bounty produced under the Russian system. But Count Khevenhuller Metsch, the Austria-Hungarian delegate, at the Brussels conference of 1898, taking the price quoted on June 10th, 1898, and without deducting the 60,000 poods, said: "A minimum of 33 million poods is sold in Russia yearly at a price which is 12.50 copecks above the price quoted at the world's market." This means for the total number of Russian manufacturers an advantage of 49 million r. or 132 million fr. Taking as basis the current year's output, i.e. 461 million poods- equal to 750,000 tons in round figures this advantage represents a bounty of 17 fr. 60 for 100 kilog. of manufactured sugar. This enormous figure shows conclusively why Russian manufacturers are trying to increase their production, and it explains why Russia, in spite of low prices, can export to the world's markets, and why she is the only nation who has lately constructed new mills and intends to build more. It is true that M. Raffalovich, the Russian delegate, read a paper in which he declared that not only does Russian legislation not grant export bounties, but on the contrary she imposes a fine on sugar made in excess of the requirements of home markets. Le Messager du ministère des Finances (Viestnik finansof) has just published an article purporting to show that this is quite true, yet the figures quoted there prove that the number of mills increases, and that production and exports follow suit. In 1897-98 there were 239 mills with a total output of 46,100,000 poods, and a home consumption of 33,000,000, leaving 12,600,000 poods for exportation. In 1899-1900 there were 268 manufacturers with an output of 53,400,000 poods, a home consumption of 36,500,000 poods and 17,900,000 for exportation, which is an increase of 42% in two years. This, then, is the result effected by the Russian régime. XVII. Belgium and Holland. Belgium. * In comparison with the size of its territory the cultivation of beetroot is nowhere more important than in Belgium. She has 54,000 hectares† devoted to it, yielding 300,000 tons of sugar. *The Bulletin de Statistique et de législation (March, 1901) has reproduced this article. + Hectare 2 acres. * By the law of September 26th, 1895, sugar is taxed at so many grammes per hectolitre of juice. The amount of sugar obtained beyond the assessed quantity is called surplus sugar. The assessment, which was at first rated at 1,750 grammes per hectolitre, was increased to 1,900 by the law of 1897, and to 2,000 grammes by the Finance Bill of 1899. The excise duty, which amounts to 45 fr. per 100 kilog. of raw sugar is refunded on exportation. This reimbursement of 45 fr. is always the same whatever the market value of the sugar may be, provided that the class to which it belongs reaches a certain limit, that of type No. 11. The import duty is 45 fr. per 100 kilog. of raw sugar, to which is added a surtax of 10% or 4 fr. 50 per bag. A minimum receipt of duty by the Treasury of 6,500,000 fr. was, as stipulated by the law of 1895, diminished to 6,100,000 fr. by the law of 1899. In case of a deficit, the shortage is divided by the Minister of Finances pro rata among the manufacturers according to their production as assessed. If there is a surplus the difference is brought forward to the credit of the following season's account. All sugar obtained in excess of the governmental assessment before going into consumption is granted, when passing through the refinery, a bounty on the 45 fr. duty paid, which varies according to circumstances. This premium is called "prime des droits" (duty premium), and is quoted on the Bourse as any ordinary stock. Holland. Holland grants a production bounty. The manufacturer is debited with the amount of the duty on the sugar produced, but a fixed sum is divided at the end of the year between all the manufacturers and refiners. For the season, 1897-98, manufacturers thus obtained 2,500,000 florins† at the rate of 2 fl. 50 per 100 kilog. * Hectolitre = 22 gallons. † A Dutch florin 100 cents. = = 1/8 of sugar entered outward; refiners received 500,000 fl. at the rate of 0 fl. 34. For the season, 1900-01, the figures were 2,200,000 fl. at the rate of 2 fl. 05, and 350,000 fl. at the rate of 0 fl. 25. In 1904-05 it will be reduced to 1,800,000 fl. at the rate of 1.45, and as far as the refiners are concerned they will only receive from the season 1905-06, a sum of 250,000 fl. at the rate of 0.19. We will not comment on the legislation in other countries, as the sugar industry there is not yet of importance, and in leaving this subject will only conclude with the statement that Sweden is the only country where the home consumption duty is not refunded when the sugar is exported. |