The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1866-11-17

Nj. EnTTOR Il notice in the letter of your Maui
correspondent, in the -Adrertiser of the l0th. that
some of the planters of Mani are extending the
area Of their cultivation, in order TO make up the
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reasoning. no doubt. that the increased expense of
production will be much less per pound for such
increase.
As no new capital for machinery, and but little
If any increase Of the expensive skilled labor would
be required, the reasoning would be sound if the
present prices could continue to be realized but
as tie present prices have been produced. without
question. by an over production or supply. what
assurance can we have that the price will not go
still lower if We add to the surplus already going
into the market: Have we not reason to expect a
further decline in such 4 case?
The removal of duties from sugars in the United
States would not help the planters very much. if at
all, If the tariff were 50 revised as to make the ex-
emption general for all sugar growing countries.
because it would leave the supply the same. as
every other country could enter its sugars for the
same that we could do but a reciprocity treaty.
BY which we could export sugars to the United
States free. exempting in return certain articles sf
American production of a kind that Spain. France.
Holland and Great Britain could not well furnish
obey being sugar producing countries, having treaties with
the United States with parity aricles), would relieve the mar
bet, as. paying duty. they could not introduce their sugars as
cheapIy as the Sandwich Islands could theirs.
The real obstacle to such a treaty. no doubt, lies in the great
public debt Of the United States, which renders it imperative
(as the authorities think, no doUbt) to continue to tax the pro-
ductions OF every land to the utmost, short Of prohibition.
With things ; they are, increased production will be no
remedy for the evil of low prces-it will tend to depress prices
sul more, making the loss in prices quite equal to the gain in
quantity. The brief history Of our sugar market, for thirty
years past, illustrates the relation Of supply and demand on a
small scale. In 1887. sugar was imported from Boston and cost
here on arrival, without duties, about Il. ala cents per pound ;
but supply and demand were both small. Stimulated by the
high price, tSo or three parties planted cane. and soon gIattei
this home market. and within a few years beautiful sugar va
sold in mat bags at auction for / cents per pound but there
was then only a home market, and parties who had engaged in
planting, finding their sugars a drug. there being absolutely
no compeusatiug demand, turned the cattle and hogs into their
beautiful grgyn cauede.ds. and embarked in other enterprises.
After the acquisition Of California 10y the United states. and
especially after the discovery Of gold, a demand arose in that
quarter which has kept IN to the present time, and at good
prices. till within a year. through all phases Of imposs duties
by the Unised states, from an ad vaIorem duty equal to I0l!
cents per pound, and subsequently, a uniform specific duty Of
tGs cent per pound just previous to the war. Subsequently, a
graduated specific duty Of from y to cents per pound was
imposed, and later still from 3 10 . cents. which still remains.
Under all Of these different tariff : sugars continued to pay veil,
ami without much variation in the nat proceeds to the planter.
until tie prizes had so stimulated production as to oyer.tock
the market, maxim z the supply much larger than the consump-
'on and depressing prices as a necessary result. To restore
prices the cause Of depression must be removed, the supply be
reduced to the demand for consumption, and then. ad not till
then, will sugars experience any permanent advance; aud to
put additional quantities into the market viii only d.press il
more aud more. Unless a treaty ~ reciprocity can be obtained.
l can see no other feasible method Than what I have before in
dcar-d. The rrdneres VIII buy our sugars in cas- II a tr.atr
because they wHi have the advantage II all duty paying sugars.
my VII huy them IA case there IS 10 treaty, instead Of going
elsewhere, and cooperate with the Planters in reducing the
supply to the demand, because with them they have d common
interest il such a result.
Yours truly, :. y. Castle.