The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1891-06-23
REDUCTION OF BOUNTIES ON EURO
PEAN BEET SUGAR.

The Germans have tried the boEnty
system in their sugar industry, and have
come to the conclusion that it is mis-
chievous and must be abandoned.
Heretofore the bounty was NJ. 425, or
81. Henceforth for three years the
bounty on export will be NJ. 125, and
for two years one mark, and then pre-
sumably will be dropped altogether.
In the course OF the debate on the
third reading OF the Sugar bill in the
Reichstag, Freihen Won Maltzahn, Sec
retary OF the Treasury, asked: Is it
right to subsidize the unnatural growth
of an industry against the laws of supply
and demand?" He then proceeds to
show that the beet root crop OF 1871 was
2,000,0 900 tons, and of 1891, 10,000,000
tons, and says: &c This fact would not be
deplorable if the increase were on a
sound basis" In 1878, the export
premium paid amounted to about two
millions of marks; in 1890-91, it was
twenty-one millions. In fact, in thirteen
years NJ. 213, ,243, ,S73, or about fifty mil
lions of dollars, have been; and, adds
the Secretary, "The industry cannot
deny that this sum has been paid cash
by the German taxpayers without equiv
alent."
Reichskanzler Won Caprivi, Bismarck's
successor, says: "By continuing the
present system We shall have an un-
healthy increase Of beet sugar factories
on an artificial basis, and L may state
that an overdone sugar industry will be
hurtful to general agriculture"
Several other speakers followed in the
same line OF argument. Representative
Barth said: "Our export premiums have
reduced artifcially the worlds market
value of sugar, so we receive less for our
sugars than we should receive without
premiums, and this loss is made good by
the bounty! must state that this is un-
ineligible nonsense"
The French Government, it is believ-
ed, will be compelled to reduce or aban-
don the bounty for financial reasons. In
Austria the bounties will be abolished by
treaty with Germany, and Russia either
has or is about to abandon the system as
well.
The Germans believe that they pro-
duce the best beets; they certainly are
at least the equals OF any, either in cul
tivation or in manufacture; their chem
lists and their mechanics are perhaps
without equals, and they believe that
they can control the sugar trade OF the
world, and that the abolition of the
bounty system throughout Europe may
tend to raise the price of beet sugar
trife, and so indirectly benefit cane
sugar. But it appears to us that there
is disturbing element not taken into
consideration here, and that is the pro-
liability OF increase of beet cultivation in
the United States-and even Canada is
talking of trying it; but this can have
no great influence for some years to
come.
Five years ago the production of cane
and beets was nearly equal, the total
quantity being something over four and
half millions of tons. This equilibrium
was maintained until 1859, when the
yield of beet exceeded that of cane bv
half million tons, and the excess of the
present beet crop is expected to reach
l, 1000 tons, making, with 2,246,OO0
tons of cane sugar, total worlds crop
of 5,S76,OOO tons.
Now, either the demand must keep
pace with the enormously-increased sup
ply, estimated at 100000 tons for this
year, or prices can hardly be sustained.
The fruit-preserving business is one great
and that seems to be capable
OF almost indifnite expansion, iu Cali
fornia more especially, as it has lately
done in England.
Throughout Australasia market al ]
most has to be made. Every particle of
their preserved fruits is imported. With
a rapidly-growing population already
reaching towards five millions, it has
not single factory. No doubt the con-
of sugar will increase through
out the world, but it is difficult to fore
tell which will increase the more RAPIDLY.
production or consumption.