The Hawaiian gazette., 1891-01-27
HAWAIIAN INDUSTRIES.
Continued from Page l.,


under the new law, or that the effect OF
the new law will be'the same as that OF
an abrogation of the treaty. But, obvi-
ously, removal OF duties from others
sugars would not have the same effect as
an imposition OF duties upon our own. 1t
is true that in either case Hawaiian
planters would be placed on the same
footing with other foreign planters, but
1t is equally true that all would be worse
of paying duties than not paying duties.
For the duties are borne in part at least
by the producers. Moreover, since Ha-
waiian sugars constitute only about seven
per cent. OF the total amount consumed
In the United States, and since their
price is already as high as the price of
duty-paid sugars, an imposition of duties
upon them would scarcely affect the
price OF sugar in the United States, but
would merely reduce the price now re-
ceived by Hawaiian planters TO that re-
ceived by other foreign planters, trans
ferring the balance into the United States
treasury; but removal of duties from
others sugars (which constitute about
IS per cent. of the total amount consum-
ed in the United States, and which
therefore determine the pricel, would re-
suit in s1ch reduction of price as to
greatly increase demand, and so prevent
the price from falling the full extent of
the duty-especially since such a re-
moval would practically operate as a re-
moval OF duties, amounting to $70,000,-
| 600 annually, from all sugars consumed
in the United States, including domestic
and Hawaiian sugars, the price of which
| is enhanced by reason of the duties. 1t
is absolutely certain, therefore, that the
| prospective loss will be less than the
present gain.
But what will be the amount of the
loss? This involves discussion of sup
ply and demand, the sole causes upon
which the price of sugar, as of every
other commodity, depends. In general,
1t is possible to say in what direction,
but not to what extent, an event will
| affect supply and demand and so price.
Thus it may be said that as the time APP
proacheS when the duties are to be re-
moved, the price of sugar will fall in an
tlcipation OF an increased supply; that
when that time arrives, sugar will flow
into the United States from other coun-
tries resulting in reduction of price but
not TO the extent OF duty; for, the fall in
price will be checked by the increased
demand occasioned thereby in the
United States, as we'll as by q cessation
OF the inflowing from other countries
due to the increased price occasioned
thereby in those countries. And so the
temporary oscillation will 90 on, until
equilibrium is established with the price
of sugar lower than before in the United
fhnr1nh tn no nf hn
duty, and higher in other countries. The
rise OF price in these other countries will
tend to stimulate production, until the
price shall fall to point at which only
ordinary profits will be obtained. Such
will probably be the qualitative effect
upon the price of sugar caused by the re-
moval of duties in the United States.
What Will be the Quantitative effect, it
equal degree Of probability. But it will
not be fruitless to consider some matters
bearing upon this point. The inquiry
will naturally be ID of the immediate
effect on price due to the immediate
effect on supply and demand, and ~ of |
the ultimate effect on price due to the |
ultimate effect on supply and demand.
% OF the immediate increase in de- |
mand. 1t will take time to cultivate the |
tastes and habits of the people and also
to start and extend industries in which !
sugar is used as raw material. More |
over, statistics show that temporary vari- !
ations in the per capita consumption of |
sugar depend not so much upon tempo |
rary variations in price as upon other |
causes, perhaps chiefly on the general |
state of prosperity or depression The |
immediate increase in demand will |
therefore probably be small.
(2) OF the immediate increase in sup
ply. The present supply i'll the United
States is furnished by more than thirty
different countries scattered all over the
world, and next TO the largest source of
supply is Germany, the chief beet sugar
country across the Atlantic. There are
few articles OF food produced in a larger
number of countries or over a larger
area of the earth's surface than sugar 1t
is a commodity the distribution of which
easily adjusts itself to circumstances.
There will be little TO check an increased
flow into the United States from other
countries except the increase of price in
the latter caused by the outflow and the
reduction OF price in the former caused
by the inflow In 1883 the beet sugar
supply OF the United Kingdom fell off
l39, 900 tons as compared with the previ-
Gus year, but cane sugars rushed in from
Java and the West Indies and nearly
made up the deficiency, but still there
was an increase OF price. May not addi-
tional beet and cane sugars be expected (
to rush into the United States with
nearly equal ease? The immediate in
crease in supply will, therefore, probably ;
be large.
(3) OF the ultimate increase in de- :
mand. The aggregate demand for sugar,
in common with other commodities, will {
go 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
,reasing with the increase OF per capita
wealth, or purchasing power, which also {
S very rapid in the United States. But {
here are certain peculiarities in the de-
nand for sugar which require special
notice. s
Demand varies inversely as price, but {
lot proportionally So Represented /
automatically, the former is a curve, t
he latter a straight line. A variation in {
,rice is generally followed by q greater t