The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1891-01-26
HA WAIIAN INDUSTRIES.
Effect of the Mckinley Sugar
Tariff.
An Essay Read Before the Honolulu
Social Science Association, Mon
day, January 10. 1891.
By ". T. FREAR.
(Concluded.)

undoubtedly 60 on increasing with the |
increase of population, which in the |
United States is very rapid, and the per |
capita demand likewise will go on in |
creasing with the increase Of per capita |
wealth, or purchasing power, which also |
is very rapid in the United States. But |
there are certain peculiarlties in the de- |
mand for sugar which require special
notice.
Demand varies inversely as price, but
not proportionally so. Represented
automatically, the former is curve,
the latter straight line. 4 variation in
price is generally followed by greater
or less and a retarded or accelerated, not
proportional variation in demand. Each
commodity has its own peculiarities.
Thus, in case of some commodities, con-
sidered necessaries of life, about SO much
must be had, and in times of scarcity
will be purchased, whatever the price
within reasonable limits, while in times
of plenty little more is cared for the
commodity becomes glut on the mar
ket. The same is probably true of some
luxuries used on a small scale. Their
cost is so small that people will have
about what they desire though the price
NAV rise by large percentage, and yet
the consumption will not be greatly in
creased if the price is reduced. But with
some commodities, especially some lux
uries used on a large scale, the rule is
different. People will get along with
paratively small amount when the
price is high, but will indulge largely
when the price is moderate. Sugar is
such commodity. Though it is coming
to be considered more and more 30
called necessary of life, it is still, as to
| large part of its consumption, luxury.
| There is perhaps no article of food which
| is used more widely, in larger quantities
| and in more ways than sugar, and
| every reduction in its price not only in
| creases direct personal consumption, but
| also greatly stimulates old Industries
| and creates new ones in which sugar Is
| used as a raw material.
| In 1884, the price OF sugar in Germany,
| the United States and England was 9, Z
and cents pound respectively. The
consumption per capita in those coun-
tries was II, 81 and 6711s pounds respect
| lively. In 1886, with sugar but 2 cents
cheaper, the British people. though
poorer and more economical than the
American, consumed "A pounds per
| d,
sumed but "a pounds per capita the
year before. In the United King
dom. where, owing TO the European
bounty system, the price of sugar
has been lower than in the United
States by about the amount of the duty,
not only has direct personal consump-
ton increased, but the jam and marina
lade trades have been practically created
these commodities coming to be used to
some extent in place OF butter by the
poorer classes; the confectionery trade
and preservation of fruits have been
greatly stimulated, and sugar is used
more largely in BISCUIT making, brewing
distillng, in mineral waters, land to some
extent as food for cattle, and there has
even been talk of using it as fertilizer
Perhaps more marvellous results may bt
, looked for in the United States, where
wealth is greater and more rapidly in
creasing and the people are more extra
? VACANT, and especially in our own mar
ket on the Pacific Coast where these
things are true in marked degree ant
where also fruit preserving and other IN
dustries which require large quantitie
of sugar are carried on so extensively
: On the other hand, it may be that com
modites in which sugar is used as raw
material are manufactured to create
D extent in the United Kingdom than il
, | the United States TO be consumed else
where and also that the change in con
l sumption in the United States may b
4 rather to better than to more sugar. L
the decade 1S74-1SS3 (Which period i
l selected partly because there was durin
t it comparatively little to cause unusua
disturbance in the price OF sugar, an
partly because it is the decade least faS
d orable TO the point l wish to make tn
price of sugar in the United Kingdom
= where sugar was admitted duty free
d averaged lower than the price in tn
:, United States by about the amount {
:. the duty, and yet during that time tn
1t annual consumption per capita increase
n over fifteen pounds there, while III til
United States it increased less than 6v
Re pounds. Should the consump tion {
% sugar in the United States during til
coming decade increase as fast as it di
in the United Kingdom during the d,
r. cade just mentioned, we should expet
an aggregate increase of 80, 900 tons i
IS the annual consumption, as the resu
% solely OF the reduction of price, suppo
ing the price to fall by the amount of til
duty. This increase is about three
l. sevenths OF the present consumptio
. and is totally distinct from the increas
due to increase OF population, wealth, il
is clination to indulge, etc. There can
- no doubt that it will have a very consit
: cradle effect in checking the fall in Pric,
20 OF course, the price will not actually ia
Il but only tend to fall the full amount
the duty, and the demand will not &C
D. uaily increase but only tend to increa:
V by the above mentioned amount. The:
: two tendencies will come into ecu
librium at some intermediate point.
in a. OF the ultimate increase in suppl
The gradual increase in consumption
III the United States will tend to increa.
is price throughout the world and so
m stimulate production. The presumptic
40 is that production is such that prevail
er ing prices yield the ordinary fair retur
on the labor and capital investe,
Otherwise it would not have been ca
ried 80 far. Ii this presumption is al:
the fact at present, the only result of a
increased consumption would seem
~ be a further Increase OF supply unit
IF. prices fall to a point where only ordinal
<, profits will be realized that is, to pr
30 have been special causes at work whic
is have led to overproduction and if thei
causes are about 10 cease, the increaslI
..I consumption in the United States d,
n,, to the special event OF a removal
&c duties will tend to counteract contra
ton than cause an increase In produ
ton; in other words, prevent d ri
ag rather than cause fall in price. I'll
8 tai most vital point to be considered, ther
az. fore, is the effect of the new law on Il
worlds production This involves
inquiry into the present condition of RI