The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1891-01-24

affect supply and demand and so price.
Thus it may be said that as the time ap-
proaches when the duties are to be re-
moved, the price of sugar will fall IN an
ticipation 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 cessation
of the infiowing from other countries
due TO the increased price occasioned
| thei eby in those countrie:. And so the
temporary oscillation will go on, until
equilibrium is established with the price
OF sugar lower than before in the United
+ States, though not to the extent of the
/ duty, and higher in other countries. The
rise OF price III these other countries will
| tend to stimulate pro iuction, 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, 1t
will be impossible to predict with an
equal degree of probability But 1t 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.
ID 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 a raw material. More
over, statistics show that temporary vari-
atoms in the per capita consumption OF
sugar depend not SO much upon tempo
rary variations in price as upon ether
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
J ply. The present supply in 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 larger
number of countries or over larger
area of the earths surface than sugar. II
Is COMMONLY the utstriDutioh vi 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 ii
3 the latter caused by the outflow and the
reduction of price in the former caused
l by the inflow. In 1888 the beet suga
} supply OF the United Kingdom fell of
t l39 .O0O tons as compared with the previ
t Gus year, but cane sugars rushed In from
} Java and the West Indies and nearl.
made up the deficiency. but still Their
C was an increase of price. May not add
e tional beet and cane sugars be expected
to rush into the United States will
< nearly equal ease? The immediate in
\ crease in supply will, therefore, probabl
r be large.
: Concluded on Monday.)