The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1865-07-01
From the Gazette
The SuZ mr. Crop Of the Sandwich Islands.

pEAE SIR My attention has been directed to an article on
the 18th Of April. signed - Planter" which discusses the circu-
lar l addressed to the sugar planters, under date OF April Sd
As the subject is Of great interest TO an Important industry of
the Islands, / take the liberty to r-state the matter in its stats
tcal aspect
The production of sugar il the Islauds-so far as I have been
able to collect statistics, has reached from eight to nine millions
OF pounds yearly, and is increasing with such rsP'dty that an
intelligent sugar engineer CMr; McCiregor) from the Islands, IS,
in 1866 at eighteen million pounds
A question Of grave Importance to producers IS, " What shall
unless, % sjthsT "a an -srecisi marsetoi is own. or can De
produced low enough 70 stan! in compeutiol with other sugar
producing countEie. in the general markets Of The world;
export markets the Sandwich Island planters can prodtably Ito
themseIyes) supply, are those Of California Oregon and British
Columbia. To supply the distant markets OF the Atlantic
States and Europe, they must be prepared to produce sugar
lea, Peru, the West Indies, Brazil. Mauritius, etc, | say cheaper,
because all these countries ar. -earer in point OF freisht q those
in those producing countries for a good dry brown sugar equal
to No. Il Dutch standard which is a TAR eomnon ss0eery sp-
or mats. To compete with these sugars, the price in the Islands
would require to be SO per ton less, or say 81 cents per pound.
. My information 1 think enables me to state positively, that
the Sandwich Island planters are not prepared al present .
ing 8: cents per pound, free on board Tor good common grocery
sugars.
To obtain prices which they consider remunerative, and
which they have actually obtained in past years, limits them to
that they are prepared to grow sugar for the distant markets of
Europe, etc, as the shipping rate in Honolulu would be too low
would in fac, leave them a loss. The object Of my circularot
April Sd was to point out TO the planters a method of maintain
.0F ih sg markets Of the 'Ain0Fn'' 0A'' !
1 there stated that the consumption of sugar equal to the best
grocery grades OF raw sugars in California, Oregon and Srnlsh
Columbia, in 1864 was sixteen million pounds ofthi. amount
seven millions five HUNDRED tho6sand pounds. Peru and China
had sent and would send four million pounds, and if the sand,
witch Islands Of their increased production sent ten millions, We
should have an import and production OF twenty-oneand ahan
million pounds, which is rs per cent. over the entire consumi-
ton; a state of things which would result in lowering prices to
Il losing point for the planter.
The remedy 1 pointed out was a very simple one. stated
that the sugar refneries in San Francisco now import from the
cheaper sugar countries, such as Manila, Batavia, etc, twenty
four million pounds brown sugars yearly. The Island planters
do not make these kinds of sugars fer refners' use, but strive
for a high grocery grade at once. If they would max thfn'
the san Francisco reiners would diminish their orders to Ba-
tavia, Manila, etc. and buy the same class in the Islands: Inc
result would be. that though the planter made as much sugar as
his crop. and preserve his market on the California Coast for
his fine grades from being overstocked and depressed by his own
" Planter" in his letter before referred to, says in effect, that
the planters can make fine sugars fl for sale at once to the gro
: 10 . ibs sr rlsners' The p,anter, in other words, had better take the
refners business and his profit. This seems quite plausible,
fine sugars, he would be foolish not to make them but 1 am
striving to point out that ii he made So mneh me ha,,s sugar ga hi n
to make less of that grade, and more OF a lower grade Q whieh
there was a large market open. Planter" suggests that the
market would be released if the refners did not produce their
II millions Of yellow sugar yearly. The answer to TINS IS thas
is to make loaf and crushed white sugars, but they are compelled
TO turn out a certain proportion OF yellow tor al u "m'e.
Hence their production OF yellow cannot be stopped without
stopping the production Of white.
from his cane. say l00,0 900 los. of fine raw sugar; or, he make
from the same cane, $4,000 lbs. fine sugar. and say o5,ooo IDS.
refining sugars. If by throwing on a limited market so much
fine raw sugar, he reduced the price, so that 1t only nets nun .
cents per h., (without containers--equal to 10Y cents in San
Francisco he will obtain 5000 for his crop. But il he makes
65 900 lbs. Of refining sugars at say 1 cents and by 81 doing
can obtain o cents per 10. for the 90 600 lbs. fine sugars he "ih
obtain IS coo for his crop, and with less outlay.
NV object in addressing a circular TO the sugar planters, was
for their and our common or mutual benefit. We are poth en-
gagged in supplying the same market with sugar. That marke
is limited one. The entire states of the Pacific Coast with Bit
ish Colu mbia do not consume as much sugar as Philadelphia
and its suburbs. Once overstock our market and We nave ho
outlet, except by transhipment to cheaper markets. me sugar
refneries can effectively, certainly and Immediately releve me
Island planters of their surplus stocks, and they can d reie'eu
in no other lUay that will at all pay them. III my arguments
will not convince them, the neNorsble logic OF events certainly
will, though at a sharp loss, for as certainly as n largely III
creased crops of the Islands come into our small market IN the
shape Of fine raws, so certainly will prices be forced down and
down, until the nett returns OF a seasons salesW VIII ial 10 pay
the planters expenses, to say nothing of proht.
These considerations are worth the study of the planter. Ihey
are certainly offered, as all business communications are, irom
interested motives, but are not for that reason to be under
valued. The occupation Of the writer for the last nine year
has given him full knowledge of his own market ana oil tt
sugar markets of the world in connection with IL, and n ieeis
justified in reasserting, that the only profitable outlet Tor ne
sugars of the Islands which will be made this year and next IN
excess of their former quantities, is in making refinery grades
which it will be equally the interest of our rehneries o buy.
The matter of price will adjust itself-in my circular L named
Is per cent. above Manila quotations as a basis. This at the
present time, would give the planter S4,75 per 100 lbs. cash IN
Honolulu, for sugar in mats or bags of quality equal to stand
ard Manila, OF which 1 send samples by this opportunity u
Messrs. Hackfeld & Co, where they can be seen.
Your oh-dient servant. GEO. GORDON,
Manager San Francisco and Pacific Sugar RehneT'es'