Statement on Signing a Proclamation Suspending Marketing Limitations on Sugar

I have issued a proclamation today temporarily suspending the marketing quotas on sugar as an emergency measure required under the provisions of the Sugar Act of 1937.

This suspension was made necessary by the increased world demand for sugar as a result of the outbreak of war in Europe, the extraordinary purchases of sugar by consumers, and the apparent speculative activity. Many consumers, presumably, have been purchasing sugar with the view of holding it in reserve against the possibility of a lengthy war and some speculators and other holders have apparently taken advantage of this situation to advance prices rapidly and capture windfall profits.

The continuance of quota restrictions under the Sugar Act would, of course, place a restraint on the marketing of sugar produced this year in the beet sugar producing States and in Louisiana and Florida. A great number of complaints have been made within the past few days that the quota restrictions on sugar marketing are making it difficult and costly for housewives and industrial users to get enough sugar to supply domestic needs.

Sugar quotas first became effective in 1934 with the passage of the Jones-Costigan Act. Under peacetime conditions the quota system protected producers of sugar but made ample supplies of the product available at reasonable prices to consumers. Of necessity, however, the quota system meant certain restrictions. The suspension of quotas removes all these restrictions.

It should be kept in mind that, under the law, the quotas may be reinstated if such a step becomes necessary for the welfare of sugar producers.

It should also be noted that the domestic sugar producers will continue to receive payments under the 1939 conditional payment program now in effect. Producers will, of course, understand that under the provisions of the Sugar Act it should not be assumed that payments can be made with respect to future crops so long as quotas must be continued in suspension. Nor should any one assume that increased acreage planted under the stimulus of war conditions can be made permanent for purposes of determining future allotments.