The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1891-01-26

for Hawaiian planters
To sum up, as result of the removal
of sugar duties in the United States, the
immediate increase in demand will be
slight, in supply great, the ultimate in
crease in demand great, in supply small.
The immediate will lie about as great as
the ultimate fall in price, and neither
can possibly equal the amount OF the
duty and probably will not nearly
equal it.
Precedents are few and differences
from them are apt to be fallacious, owing
to the presence of unknown elements,
but for curiosity's sake, | will cite the
two which, so far as | know, come near
est the present case. On January 4,
1871, sugar duties were reduced in the |
United States q OF cent a pound. The
average price for 1871 was only .4o OF a /
cent pound less than that OF 1870, while |
that OF 1870 was 90 cents less than that |
of 1869. The price continued to fall |
steadily for three years after (but not so
fast as it had been falling before) the re-
duction OF duties, and then rose steadily
during the succeeding four years. In
1873, sugar duties. amounting to from L
to 4 cents a pound, were abolished IN
the United Kingdom. The price Of
sugar fell gradually during the following
three years, but no faster than 1t had
! been falling before the removal OF duties,
and then rose higher than it was just be-
| fore the duties were removed.
| The fall in prices due to removal OF
| duties must not be coniounded with the
fall due to other causes. Improvements
will continue to be made in processes OF
! cultivation and manufacture and faclll-
ties of transportation, which will in
| directly tend to cause further reduction
| in prices, but this will not cause reduc-
ton in profits, and Hawaiian planters
will enjoy the advantages of improve
ments as much as and probably more
than most other planters. Supply will
also vary much from year to year on &C
count of climatic and other changes as
| heretofore.
While, however, the fall in prices will
probably not nearly equal the amount of
duties removed, yet planters must ex-
pect a considerable reduction, and one
which will come entirely out of profits.
On the other hand, there viii be some
compensatory advantages. Large pro-
fits are but one of the inducements to
industrial enterprise. Certainty of profits
is equally essential. 1t is we'll known
that where there is little prospect of
reaping the fruits of ones labor and
capital there is little inducement to save
and re-invest or make progress in gen.
eral Such is the case with those who,
like soldiers and seamen, lead lives es-
pecialy exposed to dangers, or those
, whose property is liable to be seized by
the hand Of despot or whose crops are
especially liable to destruction by storms
or droughts, or with whom risk is great
for any cause. These are extreme cases,
but there can be no doubt that, though
/ we may not realize it, much of our sugar
| industry has grown up under the fear oil
/ a removal of all or large portion of the
profits at any time by removal OF duties
: or abolition of the treaty, and that
2 IS consequence the rate Of in-
: terest has been high, much capital
l has been taken to other countries
! and needed Improvements have not been
}, made Hereafter planters and others
: will know better what to count on. In
a dnstry will be more settled. 1t is true
d this element of greater certainty will no
: be as advantageous as former high pro
o fits, but it will do much to Offset the dis
l. advantage of lower profits in future.
e The effect of the new law upon othel
e Industries will now be briefly noticed
d And in the first place it may be promised
8 that the existence OF an industry in on,
: country does not depend so much upoI
K competition with similar industries il
,s other countries as upon competition will
d other Industries in the same country. II
.r illustrate, shortly after the discovery o
r goli in Australia. there were importe'
into that country large quantities of but
n ter and cheese from Ireland and timbe
rs from the Baltic 1t was Inferred b
n tf.o ~ tS
h not ru"ct ssiuly compete in these indus
tries with the so-called pauper labor c
n Europe Gradually, however, profits i
II gold mining declined and at the sam
le time the dairy. timber, sheep and othe
On industries crew up. 1t was soon foun
or that for these industries Australia poi
he sessed facilities scarcely equaied elst
6, | where IN the world. Labor and capt..
in always seek that which pays best, and
es country may be we'll adopted to prof
in able industries which do not exist b,
ed cause of the existence OF other industrie
d. which are more profitable. May it nC
a reasonably be expected that with til
lg decline OF profits in the sugar industr
a an impetus will be given to the creatio
to and growth OF many other well payin
"a industries in the Hawaiian Islands?
n long list of such possible industrie
to mostly agricultural but many manufa
sh turing, might easily be made up.
ly In view OF such possibilities our rec
a procity treaty with the United Stat,
'ly should, if possible, be extended to COW
1t all commodities except those that com
lily within police regulations. An endeav'
ed should be made to accomplish this
n soon as possible, not only that the adva
Ii tages may be enjoyed at an earlier dat
:" but because present circumstances a
m perhaps especially favorable to success
vi such a treaty being in harmony with Il
n policy OF the present Secretary OF Stat
to Congress at the same time feeling
IS. some degree under moral obligations
p remedy the injury done to the Hawaiis
Islands by failure, through its own &C
ar OF the chief consideration for the treat
nd on the part of the Islands, and there b
&c ing at present apparently little Tor I'll
OF United States to lose and much to gal
he the stimulus to other Industries not y
to having taken effect.
ny While speaking of the indirect etfec
as, of the new sugar tariff OIL other Hawai-
sh an industries, it may be we'll TO rema
that there are other provisions OF II
ne Mckinley bill which affect these 9th
er industries directly and in favorab
"a way. Indeed, the retaliatory clause itst
M provides that in case it shall be carrie
On out there shall be duty of three cents
pound on coffee, ten cents on tea, al
'iu some duty on hides.
OF Hawaiian industries are on the eve
an receiving many other boons. The ra
fit road age has lust begun. The tran