The History of Sugar, Part II

The History of Sugar, Part II

Before we resume our history of sugar and the role it played in

the American Revolution, it”s interesting to note that even today

sugar is at the forefront of political debate. On May 22, a lead

editorial in the Washington Post said in part:

“The current federal sugar program was enacted in the early

1980s to keep the price of sugar high but leave no fingerprints.

Rather than try to buy up surplus production and have the cost

appear in the budget, the architects used import quotas to seal off

the U.S. market and create an artificial shortage.

“The shortage kept prices high, which pleased the producers.

Because the public paid the extra billions per year at the

checkout counter rather than in taxes, politicians were able to

escape blame. A perfect arrangement. The only losers apart

from duped U.S. consumers were low-cost foreign producers in

the Caribbean and other needy parts of the world, who, despite

supposed U.S. fealty to free trade as a way of improving the lot

of people in poor countries, were locked out. Why should the

politicians, looked after so well by their domestic patrons, take

time out to worry about a pesky detail such as that?

“.Why does a Congress opposed to so many other taxes impose

a sugar tax on the American people?”

As to this last statement, we will shortly find out about the

original American sugar tax. And as for the treatment of the

Caribbean producers, we should be ashamed.

But back to our story.In the 18th century, the French colonies in

the Caribbean were more productive than those of England.

Sugar flowed to France from Martinique, Guadeloupe, and Santo

Domingo. After being refined, the sugar was sold throughout

Europe.

[In Britain, one of the most dramatic changes in eating habits

known to human history occurred. In 1700, on average, Britons

used a mere four pounds of sugar each year to sweeten their

drinks and food. By 1800, that total reached 18 pounds. By the

1960s, annual consumption had risen to 110 pounds of sugar per

person!! Almost a third of a pound every day of the year. Did

someone say tooth decay?!]

This British demand for sweets came in the face of high import

duties on tropical products brought into the British Isles. But by

1739, the British government eliminated duties on sugar exported

directly from the West Indies to Europe due to competition from

French merchants. Nevertheless, French West Indian sugar

remained cheaper than British products.

The French planters at this time had an abundance of molasses.

Throughout the 18th century, British North American merchants

purchased inexpensive rum from the French islands, as well as

molasses for their rum distilleries. As a result, British planters

lost the American market. So, to placate planter interests, the

Parliament levied a sixpence-per-gallon duty on sugar, molasses,

and rum imported from non-British islands. It was set

prohibitively high not for revenues but to prevent trade with the

French sugar islands. But “The Molasses Act of 1733” proved

too costly to enforce and American merchants openly and

brazenly violated it.

In 1763, the Treaty of Paris (or Peace of Paris) signaled the end

of the Seven Years War, a conflict fought by the likes of Britain,

Prussia, France, Austria, and Russia. In North America, the

British and French fought the French and Indian Wars. Bottom

line, the Treaty confirmed British supremacy in North America

(and elsewhere).

Historian Paul Johnson calls the Peace of Paris “one of the

greatest territorial carve-ups in history.” Britain had seized St.

Vincent, the Grenadines, Tobago, Dominica, St. Lucia,

Guadeloupe and Martinique during the war that preceded the

peace. The British sugar lobby, fearing overproduction, objected

to keeping them all, so Britain graciously handed back

Guadeloupe, Martinique and St. Lucia. In return, the French

surrendered the whole of Canada, Nova Scotia, and their claims

to the Ohio Valley – “Snow for Sugar,” as the deal was called.

[To complete the triangle, kind of, Britain handed Cuba back to

the struggling Spaniards.]

Meanwhile, George Grenville, Britain”s first lord of the treasury

and later, Prime Minister, thought that the American colonists

had benefited from the thorough elimination of French forces in

Canada and the West. Back home, Britain was suffering from

the large tax burden that had to be imposed in order to pay for

the war. [The nation was now $130 million pounds in debt.]

The colonies had a far smaller burden so Grenville reasoned that

the Americans were obligated to share the cost of their own

defense. [Seems reasonable, mused the editor.] Grenville was

also learning that the American customs service was inefficient

and corrupt.

So, Lord Grenville introduced the Sugar Act of 1764 which

halved the duty on molasses (to 3 pence) while, at the same time,

putting in place a large system from which it was hoped that

the collection of revenue would be made easier (with large

penalties for those who tried to avoid the tax). Grenville was

also reasoning that with the reduced tariff, the temptation to

smuggle or to bribe the customs officers would be reduced.

The Sugar Act also levied new duties on imports of foreign

textiles, wines, coffee and indigo. The estimated revenues would

go “toward defraying the necessary expenses of defending,

protecting, and securing, the said colonies and plantations.”

But if Grenville was looking for a way to pay for defense, the

Sugar Act wasn”t the solution. It only accounted for a fraction of

the cost of maintaining the 10,000 soldiers that were to be

stationed along the western frontier. By some estimates the

Sugar Act cost 8,000 pounds in administration costs for every

2,000 pounds raised in revenue.

And so it came to pass that the Sugar Act became a major

grievance leading to the American Revolution. After passage,

there was a movement to boycott British goods. On May 24,

1764, radical Samuel Adams denounced the duties as improper,

proclaiming that Parliament had no right to use trade regulation

as a means of raising revenue. Speaking after him, James Otis

coined the phrase, “no taxation without representation.”

In July 1765, King George III appointed a new minister, the

Marquis of Rockingham, and he reduced the molasses tax from 3

pence to a penny a gallon.

But then Rockingham (with the blessing of the King as well as

Prime Minister Grenville) introduced the Stamp Act, the first

direct tax levied on the American colonies by the British

government. This was to be another way of raising revenue for

the defense of the colonies. The Act required a special stamp on

all printed material, including newspapers and legal documents.

Whereas the Sugar Act had been a tax on imports, the Stamp Act

levied a tax within the colonies and thereby aroused widespread

condemnation, touching off a violent three-pronged attack – an

ideological assault on the nature of the British Constitution, an

economic boycott of British goods, and civil disorder and

disobedience.

On May 29, 1765 Patrick Henry attacked the Stamp Act in the

Virginia House of Burgesses, declaring that only colonial

legislatures could impose taxes on their respective colonies.

Shouts of “Treason!” interrupted Henry”s speech, to which he

replied: “If this be treason, make the most of it.”

On October 7-25, the Stamp Act Congress met at City Hall, New

York City, to organize a united resistance to the Stamp Act. 28

delegates from 9 colonies resolved not to import any goods that

required payment of duty.

On November 1, a Stamp Act riot in New York City took place.

By now debate back in London was fierce. Charles Pratt,

English Lord Chancellor, proclaimed in a speech to the House of

Lords in December, “The British parliament has no right to tax

the Americans.Taxation and representation are inseparably

united.” Charles, my man!

On March 17, 1766, the Stamp Act was repealed by Parliament.

However, the Sugar Act survived. Tensions simmered down for

a spell but, as Sam Adams stressed, “Where there is a spark of

patriotick (sic) fire, we will enkindle it.”

So you see folks, it all started with a spoonful of sugar.

Next week, the U.S. vs. E.C. Knight Co. as our history of sugar

continues.

Sources: “The Pursuit of Wealth,” Robert Sobel

“The Growth of the American Republic, Vol. 1,”

Morison, Commager, Leuchtenberg

“A History of the American People,” Paul Johnson

“The Columbia History of the World,” John Garraty

“A Brief History of the Caribbean,” Jan Rogozinski

Brian Trumbore