The Hawaiian gazette., 1881-08-17
AFessrs. Williams, Dimond q Co.'S Private
Circ.lar.
slN FRANcrsoo. July 80. Isl.

Gan a AANNA9SNf eeAJ ~ -'~--
In view Of the approaching termination Of n
Reciprocity Treaty between the Hawaiian Island
and the United Sistes, it seems fitting time +
consider what action may best serve to insure tn
full benefit of that measure while it remains il
force and al the same time tend to perpetuate tn
advantages that have contributed so largely to tn
commercial interests and general prosperity Of tn
Islands during the last four years
There certainly need be no occasion to multipl
words to prove that these benefits are great, an
well worth retaining. The Custom House statistic
at Honolulu will show the rapid increase Of trad
between that port and San Francisco, and the re
turns that the planters receive for theirsugars Civ
cheering recognition of results much more accepta
BILE than those that they were compelled to submit
to in former years, when, with heavy import duties
and the attendant charges of interest and commits
sions, it became an anxious question how to eridg
over from one season to another.
Under these circumstances, and as the arrange
ments for the business of the next season will sool
be in order we think il due TO constituents ant
friends, with whom we are having such active ant
intimate business relations, to express our convic
ton as to what will make profitable success 70
next years campaign, and at the same time give en-
stipulations of the present Treaty.
We can understand that it Island has been ques
ton under discussion with you whether it is no
better to place your sugar here IN open mnrke
rather than make contract with the refneries i
has been stated:
1st. That the Reciprocity Treaty has become
unpopular with the masses of the Pacific Coast
because they think the reineries only obtain al
the benefits of tue removal of import duty
Dad That our jobbing merchants are isSsltihed
under the existing conditions OF things there Is
no opportunity to speculate IN sugar.
Srd. That Eastern reiners are now bitterly op
posed TO the Treaty, because it gives the rehneres
on this coast undue advantage. should sugar
be shipped to them, it is said they will withdraw
their opposition.
18th. That planters can get better prices for fine
grocery grades than at present realized from con-
tract rates; as reners here make large profits on
re-slles of such grades
To all this we reply as follows:
Ist We have no idea that ''the masses" trouble
themselves to the profits said to be made by the
refiners They know that as Il rule they are getting
their own sugar at low prices, and that the III
creased volume of business with the Islands is a
benefit to all departments of trade
End. This objection is puerile Possibly some
one iobber may feel aggrieyed because he cannot
get no a corner in sugar, rs was generally done IN
this market, and this IS all.
3rd We do not imagine that any such feeling
exists 10 any extent among Eastern renners, ana
there is certainly nothing to warrant the belief that
the remedy proposed VIII prove effective. ne
strongest and most successful argument used IN
Congress to overcome the objections made TO the
Treaty by the powerful Eastern sugar interests was,
that owing to our remote distance from the East
ern industry would be in any way untavorably
affected by the new condition of things; and that,
as APPLYING to sugar, we had for years been able W
supply all the demands of our trade from sources
that did not interfere with Eastern requirements.
This was strong point. and most effective one
and il cannot be cOntroverted so long as Hawaiian
factors continue their present sagacious policy,
and avoid any aggressive action toward the Eastern
market such as would invite the united opposition
of the Southern and Cubln planting interests, ana
prove fatal 70 the continuation of the Treaty. We
have the assurance of New York gentlemen,
thoroughly versed in trade and politics. that snip
msnts of sugar reaching New YORK from Honolulu
would create feeling that would place all former
opposition to the Treaty rs mild protest IN com
parison to what would come; and thus what might
appear as a temporary advantage would, IN enect,
prove an irreplrable disaster The rennerles mere
practically recognize this fact, as they refuse to
avail themselves of the opportunities offered them
of shipping their present overstock of refining
grades to points east of the Missouri River, where
they could do so with profitable result
4th. The retineries Ill reply TO TINS, claim tnat
they are now paying the planters the same prices
that they can import sugar from Mania, and nave
not the benefit of the option of buying when prices
lowest but under their contracts, tney are oD-
Ii ,Ated to take all as it comes forward, and they
e now carrying stock of about three millions of
dollars subject to charge of insurance and storage
a, we'll as the loss of interest; and they think that
Oh this account they fairly earn the profit on such
sugar as they may resell. Unless they control the
Hawaiian sugars there Is no lnoucement TO
buy except as they may require Tor immediate
wants, aud consequently there Is no guaranteed
stability prices; and herein Is, as We esteem 1t,
the advantage to the planters of making contracts
for their crops. certain paying pront Wen Sc
cured is better than the chances and risk of com
d tItiou and opposition; and would 1t not be good
policy to sell ali the retneTies, provided they will
ply prices equal to what they can import sugar
from the other sugar producing countries, or as
much rs can be realized from shipments to eastern
ports We believe the rehnerles Will take your
sugar on such conditions, they fully reallze the
Importance of giving the planters no excuse for
shipping to Eastern markets, for reasons we have
already named
Herewith we hand you comparative proforma &C
count Sales based on present prices ruling at both
points of a supposed shipment of Hawaiian sugar
polarizing 80 per cent. to New York and to San
Francisco, showing net proceeds OF SIX collars per
ton in favor of shipments to SIN FRANCISCO, or a
cent and five-hundreths per pound difference IN
cost and charges to the two ports; and IN this est
mate we have not taken into consideration the
greater loss in weight consequent on the voyage
around Cape Horn, nor the deterioration IN Polarl
cation that will necessarily follow the long sea
voyage-a well known fact, particularly with the
lower grades of sugars-nor for extra tare OF over
IL per cent demanded by Eastern reiners. We
have estimated freights at 80 per ton TO new iork
no probability of decline for at least year to
come, owing to the immense surplus OF wheat TO be
moved from this coast. We have given the sup
posed shipment - New York the benett OF prompt
sales on arrival. which cannot be safely considered
as certain if highest market quotations are ex-
pected 1t will be found that Cuba sugars are held
Ia New York for at least average of four months,
thus greatly increasing the charges of interest and
storage 1t is claimed that five per cent additional
should be charged to cover these points
We will here remark that Hawaiian sugars IN
New York would be absorbed entirely by the re-
fneries las is the case with Cubs sugars) as they
polarize SO high. For example, to-day squotations
from New York are 81 for Yellow refined, and
SIC for Cuba centrifugals polarizlng 70 per cent
The grocery trade will give from one-haif to one
cent per pound more for refined yellows, both here
and in New York, than for the best grade OF Tow
sugars.
In conclusion, we would respectfully submit that
SIN Francisco, from its geographical position, IS
naturally the readiest market tor Hawaiian pro-
dice and also the most convenient point for pro-
curing supplies for the Islands; and our people
give the strongest evidence Of their appreciation
Of the Hawaiian trade in their combined and per-
sistent efforts TO obtain the ratification OF the
Treaty: and it is an admitted fact, that without
these Efforts and the influence that San Francisco
vas able to bring to bear on the subject IN Con
press the Treaty would never have been passed.
The same community of interest still exists, con-
uected together all the more hrmer by increased
and more familiar business intercourse and while
We all hope and trust that nothing may intervene
10 ureyenf continuation Of the existing favorable