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Rh supply on the basis of his trade before the war, the actual quan- tities being fixed from time to time in proportion to the sugar held by the Government; and it is not too much to say that the sugar control was the most successful of the many Government controls.

It may be noted that in the Final Report of the Commission issued in June 1921 it was stated that: " The wisdom of the Government in at once taking over in 1914 responsibility for the sugar supply was, in our opinion, fully proved in the sequel. But while we recognize that in the special circumstances State management was a necessity, our experience does not lead us to think that State control is a desirable thing in itself in the region of trade in commodities."

The total consumption of sugar sold under control was approximately as follows :

Tons 818,488

1915 1916 1917 1918

IQI9 1920

,219,761 109,905

,595,004 952,408

The stocks held by the Commission on March 31 1921 were 390,- 479 tons of raw and 57,787 tons of white.

The Commission had desired to carry out their operations free of cost to the Exchequer. " This aspiration cannot now be realized," they add, " but the fault is not ours. From time to time since the middle of 1919 the Commission has on various occasions pleaded for an increase in the selling prices of its sugars, so as to build up a re- serve to meet the loss which it foresaw as probable on the liquidation of its stocks on the conclusion of its operations. But on no occasion has a rise been authorized until weeks or months after it was recom- mended, and then not always to the extent recommended.

" From a calculation we have made we are able to say that if our recommendations (which were always kept as low as possible in view of the reluctance shown by the Cabinet to an increase in prices) had been approved at the time they were made pur receipts would have been 16,000,000 more than they have been in fact. Even that sum is less than the deficit which it is probable that the Exchequer will have to meet on our operations, and which we estimate at not less than 24,500,000. Some may perhaps hold that it is not of material importance to the public whether it has to bear a burden of this kind in its capacity as a taxpayer or in that of a consumer of sugar. But to us it is a matter of regret that we shall not be able to claim that we discharged the duties imposed upon us without having re- course to the funds of the Exchequer otherwise than for the purpose of the temporary financing of our operations. The advances made to us under this latter head by the Treasury stood on March 31 at 27,281,937."

The cost of the establishment of the Commission from 1914 to 1922 is given as 103,239.

The year 1920 stands out as having the most violent fluctuations the sugar trade has probably ever experienced. The British Royal Com- mission on the Sugar Supply and the American Equalization Board acted conjointly in 1919, and by their actions controlled both the American and European markets. Prices were kept between 303.

1 and 633. per cwt. for Java 96 F.L., but there was some hesitation in


 * the autumn with regard to the continuation of the operations of the

! American Equalization Board, which did not decide on further action until December. In the meantime a good deal of the Cuban crop

1 had been sold to Europe and the East on a basis of 6^c. per lb., and when the American Equalization Board decided to continue control it was too late to secure the Cuban crop. The planters, having sold

, a certain quantity of sugar, were independent, and prices were forced up to I2c. (equal to 765. gd. per cwt.) at the end of January. In Feb. there were, however, large offerings on the part of the Cuban planters, owing to supplies of sugar coming into the market, and quotations declined to gc. (equal to 593. 3d. per cwt.). In March the American refiners began to buy freely, and this increased demand was intensified by two serious reductions in the estimate of the Cuban crop. Wild speculations took place, and in May as much as 23Jc. (equal to 1363. per cwt.) was paid. Large purchases were also made in Jan. and May of Manila sugar for shipment during the summer months. The effect of these inflated prices brought its own remedy ; consumption decreased rapidly both in England and in America, and by the end of July Cuban prices had fallen to l6c. which was

' equal to a fall of 405. per cwt. This fall continued until, at the end of the year, Cuban sugar was actually sold at 3c. per lb., or equal to a total fall from the highest point of over lios. per cwt. The result of these heavy fluctuations caused a financial crisis in the trade. Enormous losses were suffered by the American and Canadian refiners, who had bought and sold heavily for the autumn months, and these forward sale contracts were largely repudiated when the time came for delivery. The British refiners, being still under con-
 * trol, escaped these violent losses.

The values of refined sugar in 1910 varied from 173. 3d. to 233. 6d. oer cwt. for Tate's cubes, and in 19 n the year of exceptional

drought prices continued to advance to 273. 6d., but towards the end of 1912 prices declined to 193. 3d. and with slight fluctuations prices were further reduced at the outbreak of war to 173. gd. There was then a steady rise, and in 1914 cubes were sold at 353., and granu- lated at 303. per cwt.; in 1915 cubes were 503. and granulated 333., and then by gradual stages till, for domestic consumption, cubes in 1920 reached Il6s. and granulated 1123., but, under the voucher system which was in vogue during control, the prices of sugar for manufacturing purposes were from i6os. to 1643. per cwt. Refined sugar produced by the British refineries from 1910 till the outbreak of war averaged about 45 % of the total consumption, but after the war the production was about 74 %. The British duty from 1910 till 1914 was is. tod. per cwt., in 1915 gs. 4d. per cwt., in 1916 145. per cwt., and in 1918 it was increased to 253. 8d. per cwt., at which it remained in 1921. This was out of all proportion to the value of the sugar, and naturally checked consumption.

In 1913 the British Government withdrew from the Brussels Convention, which had been adopted in 1903, after many years' endeavour on the part of Great Britain to counteract the effect of the system of continental bounties on beet sugar. The adoption of the Convention had undoubtedly saved the British West In- dian sugar trade from extinction, and British sugar refiners were able to compete on more equal terms. At the same time there was still strong opposition in England from the Free Trade party, who were anxious to have sugar at any price, whatever injustice might be inflicted on the British colonies and the home refiners. In 1911 there was a serious falling-off in the European beet crop, and there was a large deficiency in the world's supply, so that an inevitable rise in price took place. Russia, however, had large stocks on hand, which, under the Convention, could not be imported into England owing to the fact that prohibition was in force instead of counter- vailing duties. Had there been countervailing duties the sugar would have been shipped to England and the difference in duty paid. Giving way to pressure from those who were anxious to get cheap sugar irrespective of the reason for the cheapness, Mr. Asquith's Liberal Government gave notice in Aug. 1912 to with- draw from the Convention. The curious feature was that, as the result of this notice, Russia was permitted to send a considerable quantity in excess of the limit laid down by the Convention, but the quantity she sent had very little effect in making up the shortage of about 1,700,000 tons of the world's production.

In 1919 Mr. Lloyd George's Government (with Mr. Cham- berlain as Chancellor of the Exchequer) took a further step in ac- cordance with the views of the British West Indian planters, and agreed to give preferential treatment to sugar produced within the British Empire, in the form of a reduction in its case of one- sixth off the import duty on sugar. The British preferential duty on raw sugar at 96 polarization is equal to a preference of about 35. gd. per cwt., and on white sugar of a polarization over 98 43. 3.33d. It was too soon in 1921 to know what permanent effect this concession would have upon the production of sugar in the British colonies, but it was hoped that it would enable their planters to compete with Cuba and other countries where costs are considerably less, and consequently secure a larger share of the sugar trade of the United Kingdom.

Since 1910 serious attempts have been made to grow beetroots in England for the manufacture of sugar. A factory was erected in 1911 in Cantley, in Norfolk, but was worked only one season, and was closed during the war. It was purchased by a private Liverpool firm in 1920. A fair quantity of beetroots was grown in the immediate neighbourhood, but the high price which was given for the roots made it impossible for the purchaser to make a profit on the sugar produced. As a matter of fact a loss of from 60,000 to 70,000 was incurred. A further and more ambitious attempt was in 1921 being made at Kelham, Notts, where a large factory was erected, considerable quantities of beets having been planted in the neighbourhood. The British Government not only subscribed 250,000 of the capital, but also guaranteed interest on the amount of public capital raised at 5% for 10 years, and took 125,000 of second debentures.

See also FOOD SUPPLY and RATIONING. (L. A. M.)

SUKHOMLINOV, VLADIMIR (1848- ), Russian general and war minister, was born in 1848. He passed through the cavalry school in St. Petersburg, and in 1867 was given a commission in the Guard Ulans. He graduated from the Academy of the General Staff in 1874. He took part in the war with Turkey in 1877-8 as an officer of the general staff, and was awarded the St. George Cross of the fourth degree. From 1884 to 1886