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

tunity, exerted themselves to the utmost |
in improving processes of cultivation |
and manufacture, and with great sue |
cess alter 1876 until, in 1886, one ton of |
sugar was obtained from s tons OF beet. |
But as the drawback on d ton of sugar
continued to be the amount of tax paid
on twelve tons OF beet, there was practi-
cally paid on each ton exported bounty
equal to the tax paid on 80 tons OF beet.
This clear bounty amounted for num-
Der of years previous to 1889 TO seven or
eight million dollars year, or seven or
eight dollars ton on the entire produc-
ton which increased from 100000 in
1876 to l ,155 900 tons in 1885, or nearly
skiold. Other European countries felt
constrained 10 follow Germany's exam
pie and, in 1884, France levied an excise
tax on beet roots and paid drawback
on exported sugars on the suppositlon
that beets yielded 5h per cent OF their
weight in sugar Improvements were
made until, in 1887, this percentage was
raised to 8 As and the bounty from
s. 100000 in 1885 to $18,000.000 in 1887
$500 per ton exported, or $50 per ton
produced), the output at the same time
increasing from 308, 900 to 500 900 tons
or about 80 per cent. Belgiuin's annual
bounty grew at the same time 10 4,00O,-
900, Hollands to 81 800 600 (Desides
So 900 600 paid to relieve Java sugar
planters), Austria's to So 250, 600. Russia
at first paid direct bounty on exported
sugars, then enacted an almost prohIbI-
tory tariff, which stimulated production
until il equaled home consumption, and
then again paid direct bounty of over
$50 ton The ni;ed States also as
sisted in this work. Besides paying,
through the operation of its protective
tariff, over $40 ton or an aggregate OF,
say, $12,O00,0O annually on domestic
and Hawaiian sugars, causing nine
fold increase in the latter it paid by way OF
drawbacks clear bounty OF s. ton on
exported sugars, with the result that re-
| fined sugars were sold to foreigners at
| less than the cost of the raw material,
| and the export of such sugars Increased
| from III 900 tons in 1881 to l26 900 tons
| in 1885. In Brazil and the Argentine
| Republic, a return OF from to 3 per
| cent on the capital invested in the sugar
| industry has b en- guaranteed and sugar
| machinery admitted duty free. Spain
has relinquished the greater part of the
taxes on the sugar product OF Cuba and
Porto Rico.
To sum up, probably not less than
$35 900, 900, or $l4 ton on the entire
product, was paid in 1885 as subsidy
to the sugar industry in Europe alone.
AS result of this ,andpartly OF the normal
increase in demand and reduction IN
cost OF production, the worlds output oi
beet sugar increased 43 per cent from
1881 to 1885, and of cane sugar, which
received less aid, Is per cent, Of botf
together, % per cent.
This brought about the extraordinary
fall in price a few years ago, and the
consequent depression OF the sugar in
dustry nearly all over the world. Ir
European countries, planters, in blint
reliance upon governmental assistance
brought disaster upon themselves by in
creasing production until prices fell to ;
point where with the bounty adde's
there was little or 10 profit in the bust
ness. At the same time, the price t
consumers was kept so high by the dim
inished supply, due to taxes and tn
large expectations encouraged by tn
draw backs, that consumption range
only from eight to twenty-elght pound
per capita. Prices received from fol
eigners fell until, with the drawbac
! added, they were only equal to price
received at home. The Germans an
, others were merely paying for the sugs
consumed by the English and other TO
eign nations. The bounties We're also
. serious drain on the treasures tror
which they were paid. Cane grower
2 also in other countries were driven
the verge of ruin by competition wit
the bounty-assisted beet growers.
There was bound to be reaction
Germany reduced her bounty one-ha
1 in 1889. France, in 1888, raised tt
estimated yield of sugar from beets fro
. so per cent. to per cent, with anoth'
: Il per cent. to be added to each of Il
:. following four years. Russia, in 1873
' abolished bounties altogether. Spa
u passed a law by which her high duti
u should be gradually reduces until,
1892, they should be entirely abolish'
: as to sugars imported from her own &C
: onies. In the United States the tire
:, sury rules were revised in 1885, reducii
> the drawback bounty from S. to $40
: ton, and now the bounties are about
:, be withdrawn from domestic and II
waiian sugars. The European Cover
= ments are not only each endeavoring
9 gradually reduce and finally aboli:
J. sugar bountirs, but they have recent
= taken steps toward united action. At
= conference held in lSS7, at which ne.r
:, all the European states were represeI
n ed, the bounty system was unanimous
y condemned and a convention adopt
y for submission to the various Cover
:. ments, providing for the complete abo
u ton of all bounties :" open or disguised
u y, At the next meeting, in 1888, new CO
- vention was adopted, some OF the pro-
:, sions of which relating TO modes OF e
~ forcing the agreement were objected
!. by the representatives OF few state
1t Final action will not be taken until Sc
= TENDER of this year.
- Owing in great measure TO the owe
:. production due largely to bounties a
- also to the prospect OF discontinuan
% of the bounties, the sugar planters
= Europe have already begun to check t
y increase in production; and, owing
= competition with beet growers, MAJ
II planters in cane-growing countries.
- for instance, the British and Spani
!, - West Indies, Java, Madagascar, ct,
80 have been compelled to abandon ca
20 growing altogether and TO raise 9th
= things instead, such as coffee, te
= tobacco, tapioca, etc. To these circul
:, stances are largely due the recent hi
:, prices.
10 As general statement. it may be sa
TO that from 1876 to 1887 the production
m sugar was artiticially stimulated to such
H. enormous extent that there was no pro
N in it save in a lev exceptional case
4 that since 1885 this artificial stimuli
r amounting to from fifty to seventy N
40 lion dollars a year, has already be
n partly and probably in time will
to wholly Withdrawn; that production
w fond RI r