The Philippines must be considered domestic. because they have enjoyed free trade with the United States up to this time. But as of 1933 the Philippine Islands had increased their production and their deliveries Into the United States from a normal of 251.000 tons in prewar -days before 1914 to 1.580.000 tons. The cost of production in the Philippine Islands made it possible for che Filipinos to encroach upon the United States market formerly supplied by Cuba at such a rate that gradually the price of sugar had become less than the cost of production in the United States. and less than the tariff plus cost of production in Cuba. : The Congress understood what was happening. and responded to recommendations by the administration that a quota system should be established for the stabilization of the domestic sugar industry and of the sugar market in the United States. It was also true that at that time every nation in thp world was seeking to make itself selfsufficient in sugar. Home production was increasing in every countryof Europe and even in tropical countries.
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quota system