The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1865-07-01
(For the Pacific Commercial Advertiser.)

HONOLULU. June &c, 1865.
Mr.. EDITOR The article from Mr.. Gordon, pub
lished in Saturdays Gasette, 1 have perused with
interest, as well as his circular to the planters at On
earlier date.
The subject is one in which the sugar growers have
q deep personal interest, az we'll as the country gener-
ally. for sugar is at present and is likely to be the
great staple of the islands. and the material pros
perity of the country depends very largely upon the
successful prosecution of this branch of industry. 1t
gives employment to the ship,owner. the coasters.
the merchant, the mechanic. the agriculturist and
the common labOrer. and the prosperity of the state
is bound up in the prosperity Of these different classes,
so that all have a common interest in the success
Of the sugar growing interests Of the islands
Nh. Gordon's letter processes to seek a common in
terest, and is based upon the well understood COM
mercial principle of supply and demand. and it seems
TO me that his logic is sound. his deductions incon-
trovertible from his premises, and the subject de-
mands the serious consideration Of not only the
PLANTER but the statesman and merchant, and all
whose interests are interviewer with the prosperity Of
these islands as we'll as the Refineries Of San Fran
cisco, and indirectly with other interests there. II
the supply of money or merchandise is in excess OF
the demand. the price must go doWn or If the demand
exceeds the supply the price WiA go up. No human
law or combination. however powerful. has hitherto
been found able to set aside this natural law or
materially change these results. Now Mr.. Gordon
fears an over production giving an excessive supply
70 our only market, which must result in a depression
Of price to the extent Of inficting losses both upon
nlsuters and refners, which If continued for any
time, will only become a struggle as to who shall
hold out longest or who can bring the most capital
into the field, to drive out competitors and thus di-
minish the production and supply to the amount de-
manded, and so restoring to the largest capitalists
the return of a remunerating market.
Mr.. Gordon's plan to prevent this state of things.
seems to me simple and fair, both to the sugar grow
ers and reaners.
A healthy state Of the sugar market. requires only
q certain amount to meet the demand at paying
prices. He thinks the production of the planters Of
the islands and the refners united, will be in excess
of the demand. resulting in q decline of prices, and
INJECTING loss or disaster upon both. Very little Of
the island sugar has heretofore been manufactured
for refining purposes, but the rehners have imported
from other parts Of the world. He proposes that the
re6ners should diminish their importations from
abroad. and that instead. the planters Of the islands
should boil a part of their crop for refining purposes,
and supply this deficiency in the rehners' impOrta-
tions, who will pay to the planter fifteen per cent.
more for his sugar OF the same quality, than II would
cost TO import it from Manila and China. thus keep
ing the supply within the demand, and by O COM
promise promoting the mutual interests Of the parties
by guarding against such q decline in prices as will
result in loss. This plan appears to me simple and
lust. and [ see no other practicable one, for the crops
on the ground must be taken off, and the rehners
will think that their machinery must be worked up
TO it's capacity, so the result will be q glut of the
market, falling prices, paying neither the producer