The Hawaiian gazette., 1891-01-27

4
in 1885,, In Brazil and the Argentin,
Republic, a return of from 5 to pc
cent on the capital invested in the suga
industry has been guaranteed and suga
machinery admitted duty free. Spain
has relinquished the greater part of the
taxes on the sugar product of Cuba anC
Porto Rico.
To sum up, probably not less thar
$35, 000, 600, or $14 ton on the entire
product, was paid in 1856 as a subsidy
to the sugar industry in Europe alone
Asa result of this, andpartly of the norma
increase in demand and reduction in
cost of production, the worlds output o
beet sugar increased 43 per cent from
1881 to 1885, and of cane sugar, which
received less aid, Is per cent, of both
together, % per cent.
This brought about the extraordinary
fall in price few years ago, and the
consequent depression of the sugar in
dustry nearly all over the world. In
European countries, planters, in blind
reliance upon governmental assistance,
brought disaster upon themselves by in
creasing production until prices fell to a
point where with the bounty added
there was little or no profit in the bust
ness. AT the same time, the price to
consumers was kept SO high by the dim
inished supply, due to taxes and the
large expectations encouraged by the
drawbacks, that consumption ranged
only from eight to twenty-eight pounds
per capita. Prices received from for
eigners fell until, with the drawback
added, they were only equal to prices
received at home. The Germans and
others were merely paying for the sugar
consumed by the English and other for
eign nations. The bounties were also q
serious drain on the treasures from
which they were paid. Cane growers
also in other countries were driven to
the verge OF ruin by competition with
the bounty-assisted beet growers.
There was bound to be a reaction.
Germany reduced her bounty one-half
in 1889. France, in 1888, raised the
estimated yield of sugar from beets from
51s per cent. to per cent, with another
u per cent. to be added each of the
following four years. Russia, in 1886,
abolished bounties altogether Spain
passed a law by which her high duties
should be gradually reduced until, in
1892, they should be entirely abolished
as to sugars imported from her own col
onies. In the United States the trea-
sury rules were revised in 1885, reducing
the drawback bounty from IS to 49, 40 a
ton, and now the bounties are about to
be withdrawn from domestic and Ha-
waiian sugars. The European Govern
ments are not only each endeavoring to
gradually reduce and finally abolish
sugar bounties, but they have recently
taken steps toward united action. At
conference held in 1887, at which nearly
all the European states were represent
ed, the bounty system was unanimously
and convention adopted
for submission to the various Govern
ments, providing for the complete aboli-
ton of all bounties Z" open or disguised"
At the next meeting, in 1888, new con-
vention was adopted, some of the provi-
sions of which relating to modes OF en-
forcing the agreement were objected to
by the representatives OF a few states.
Final action will not be taken until Sep
tember of this year.
Owing in a great measure to the over
production due largely to bounties and
also to the prospect OF a discontinuance
Of the bounties, the sugar planters. of
Europe have already begun to check the
increase in production and, owing to
with beet growers, many
planters in cane-growing countries. as,
for instance, the British and Spanish
West Indies, Java, Madagascar, ETC.,
have been compelled to abandon cane |
growing altogether and to raise other
things instead, such as coffee, tea,
5obacco, tapioca, etc. To these circum- |
stances are largely due the recent high |
prices.
As a general statement, it may be said
hat from 1876 to 1887 the production of |
sugar was artifcially stimulatedt to such an
enormous extent that there was no profit |
n it save in a few exceptional cases;
hat since 1885 this artificial stimulus,
to from fifty to seventy mil
ion dollars a year, has already been
,artly and probably in time will be
Wholly withdrawn; that production in
county paying countries will tend to de-
rease until the diminished supply shall
aise prices to point where fair profits
nay be realized; that in cane-growing
there will be a slight but not
quail tendency to increase production.
It the same time consumption will in
rease in bounty-paying countries on ac-
cunt of reduced prices there. On the
7hole, there will be very considerable
endency to restrict production, and the
demand in the United States
ill be spent rather in off-setting this
than in calling for further in
rease in production, and thus hasten
ne time when prices will again be snch
S to fairly remunerate the labor and
apital invested. Surely the removal of
uties comes at an opportune moment
,r other sugar planters, and could not
ome, if come it must, at better time
Dr Hawaiian planters
To sum up, as a result OF the removal {
sugar duties in the United States, the !
IMMEDIATE increase in demand will be
light, in supply great, the ultimate in
ease in demand great, in supply small.
he immediate will lie about as great as l
le ultimate fall in price, and neither 6
IN possibly equal the amount of the /:
1tv and nrohahly will NOT nearly q