The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1868-05-20

iars-it shows us that the method of doing
our business, or drawing against shipments,
docs not affect the interest Question-that
an actual loss Of time on the ocean, although
it mar be concealed from observation by
mercantile devices cannot be saved-except
by steam. And il also explains, what in
deed we all feel TO be the case, that no
number of intermediate sailing vessels can
be any substitute whatever for a steam yes
sci at regular Intervals. The fallacy in
these arguments about frequent trips
consists in ignoring the fact that unless they
are at the same time rapid and regular, the
advantage of frequency is nullifed. Indeed
to a certain extent the more we have of them
the worse we are off in the particular res
poets required.
1t is only right to observe that on the TO-,
600. 600 pounds or so of sugar already bargain
ed for the Planters here cannot get back the
half per cent already lost by them for want OF
more rapid communication, but their con
tract expires ut the end of this year, except
in case Of the Reciprocity treaty going into
effect when another contract comes into
force for two years. II the Reciprocity Urea
ty does 90 into effect, it strikes me that we
shall have two steamers put on the route
any way, and il might then become ques-
ton whether the So, 900 year might not be
better spent on a thorough system OF Inter
Island steam-communication, unless II be
considered that it is worth the money to bind
the Ocean Company and to limit the rates Of
freight, etc.
With reference to the observation that it Is
usually found too expensive to carry sugar
and molasses by steam, and that they do not
do it from the West indies or Mauritius to
Europe, will just remark, that the con-
veyance of freight by steam Is difficult and
expensive, or impracticable, according as the
distance is increased, and that Ii would never
suit any Government to substitute vessels
enough to carry the immense sugar crops
of those countries so far by steam. II so
happens that our little crop can be carried by
two of the smallest steamers that could well
be subsidized for ocean travel, and the Amer
lean Government have agreed to pay S55,-
600 year towards enabling us to have ON.
, sugar and molasses carried by steam Why
shouldn't we, by the payment OF Il small ex-
ira sum, reap the full advantage of IL.
Having so far, met the objections urged
against granting this subsidy, il was my in
tention TO have enlarged upon some of the
many great advantages of frequent, regular
and rapid steam-communication with the
principal source of supply and demand. 1t
however looks so like assumption to begin
to explain what every one knows that hesi-
tate to 90 into these questions at any length.
1 will therefore, taking my cue from the let
ter of H. A. p. c., merely observe that ID
was shown before the Committee" or rather
let us say, attempted to be shown, that il
was a great comfort, pleasure and convent
ence to get our letters and news quickly and
reguarly-that San francisco connected us
with the rest of the civilized world, that this
is the last aud only link wanting in the chain
of universal -iines--that 1t would be
preposterous for US to refuse to connect If
we can, that it would lead TO direct orders
from San Francisco, and TO contracts with
manufacturers, dealers and Others there for
our produce, thus saving commission, that 1t
gives flip toall our enterprises by enabling
us to get quickly whatever we require to
carry them on-that II helps us to get the
top of the market in San Francisco for all
our produce, and thus raise our average
price, that we can keep smaller stocks of
imported goods, that we can do more bust
ness with the same capital, or the same bus
iness with less capital, that we can turn
over our profits oftener or give the advan-
tage to the consumer, that the market will
be more regularly supplied and scarcity or
very high prices prevented, and thus reduc-
ing the average price to the consumer, that
il facilitates our business with Europe and
with all the world-that in fine it lies at the
very root of commercial prosperity, and
that II is the most direct cut towards attain
ing the end and object of all commerce, by
the ehedpeniRg Of Uhdt are rant 10 buy, and
enhancing The rdtue Of rldt ne hare 10 sell il
assists us "to buy in the cheapest and sell
in the dearest market" the first principle of
the wealth of natiOns''-also that it would
assist US in our competition with San Fran
cisco in getting the whalesbips, helping to
supply us with what we most lacked, in that
competition, by lowering the cost of money,
facilitating the gettRg of supplies, the char
terng of ships for their oil and communicat-
ing with their owners.
1t was also urged that il would bring peo-
pie who would spend money and invest mon
ey among u.s. II would bring more capital
to the country, and also certain class and
very valuable class of labor, such as the small
hard working farmer class of California and
the Western States Here we were met by
the answer that zoe hare no room for he
profitable employment Of more capital al pres
ent. that the rate Of interest Is decreasing
among US, and capital is idle. that any stinu-
idtion Of our products just nor could be disas-
trOus." As certain facts give color to these
statements, and as / venture to think that a
clearer view of how we really do stand in
this respect is of the last importance to all
of us, especially whilst we are legislating, |
propose to examine them for a monument.
y Is a fact that there is in Honolulu a good
deal Of capital lying idle at the present mo-
ment, and as a consequence the rate of in
terest shows tendency TO decline. This
cause and effect apprehend to be precisely
analogous to what has been lately so remark
able In England, they have had a great crisis
and an infinite variety of schemes and enter
prises which were in the habit of employing
and wasting vast amounts of money at any
interest have collapsed, capitalists have taken
the alarm, and they not only have lost these
questionable openings for the employment Of
their money, but they are now afraid offend
ing even where they fairly IIight do il with
safety. The VIGOROUSLY and unexception-
ably safe means of employment of CAPT
tai are us natural consequence beseiged
with offers Of money. Consols 20 up as do
all the prime securities and interest falls
lower than ever was known. In the mean
time many a good enterprise, and many
sound merchant is unable TO raise a dollar,
for legitimate wants, solely from the general
want Of confidence.
Have we not just gone through a similar
crisis herey Has not our main industry Just
suffered a collapse? Is il not a fact that If a
capitalist secs a man coming along the street,
whom he may suspect wants TO offer sugar
plantation security for some of bis money
does he not dodge back or turn down the
next street? l. not the main property on
the Islands either sugar plantation property
or directly connected with aud influenced by /
the value of sugar plantation property /
What wonder then that for the moment cap
ital is lying idle, and Government bonds are /
not to be got at any price, for there is moth /
ing else but these or sugar plantation property /
to invest in. Capitalists have been badly /
treated. they have been "taken in and done /
for and in consequence, as it was foreibly /
said lately of capital in England, 1t is "on /
the strike" and is therefore out Of employ |
ment. Now when men get ION the strike" I
we send elsewhere for hands,-men from
other places, who are often glad to come