The morning call., 1892-08-26
THE HAWAIIAN TAEIFF.

Tie Hawaiian Government has assumed
tho right of resiliating its treaty with tie
United States without giving the stipulated
notice OF u months. 1t will be remembered
that the original reciprocity treaty. which
was concluded in 1875, expired In January.
1852, but its provisions were allowed to re-
main in force, as no notice had been given
on either side of desire 10 terminate ii.
On December g. 1884. new treaty, which
was in fact. a copy of the old one, was
signed at Washington. and was confirmed
by the Senate in January. 1887. This in
strument ceded to the United States Pearl
Harbor as a coaling station. Ii further
stipulated that the treaty should endure for
seven years (Which would expire in 1890,
and further until the expiration of u
months after either Of the high contracting
parties shall give notice TO the otter of its
wish to terminate the same" If The Ha-
walian Governmentsery this notice on the
Government at Washington IL months ago.
or at any other time, the fact has not trans
pired.
BY the treaty Of 1887 the United States
agreed to admit free Of duty the sugar.
molasses and rice of Hawaii, and the
island kingdom agreed, in return, TO admit
free number of American products, chiefly
manufactures
rluding the treaty was to secure a free
market for her sugar. all other sugars being
taxed on arrival in the United States about
, cents a pound. When the Mckinley tariff
was enacted. admitting West India sugar
free, this motive ceased to operate. The
cane sugar of Hawaii no longer enjoyed
an advantage over other cane sugar with
favored nations. hence the islanders re-
oar Oh traa oF Nd 6
but little advantage TO themselves.
Hawaiian exports Of raw produce
chiefly sugar-have fallen off from
S14,o74151 in 1889 to SILL 64O,664 in 1891,
though the quantity of sugar showed an in
crease. This year not only are prices
nearly as low as they were last year, but
in consequence of drOughts. there will be a
deficiency in the crop. which Mr.. Spreckels
estimates at not less than 10000 tons. The
consequence is that plantations have fallen
greatly in value, and that hard times gen.
orally have befallen the people. American
citizens have invested some SO, 100000 in
land and improvements on the islands. a
few years ago this was excellent property
which was making its owners rich; now il
is hard TO say what it is worth. When
plantation does not pay it loses money very
fast.
The purpose of the Hawaiian Govern
ment is TO supply the islands with what
they have always needed above all things
pablic revenue. At present they have no
customs revenue and direct taxation las
been unavailable. The planters have
always had influence enough to escape tax
alton and the other classes have owned
little taxable property. This was the cause
OF the financial straits IN which King hala-
kaua Was always immersed. and which CON-
PEELED him 10 resort 10 schemes Of loans
which were fatal TO the credit Of his Govern
ment Under the new tariff, assuming
that the impOTtati0ns continue TO approx
mate TO an aggregate of $4,000, coo, a % per
cent duty, such as the new plan proposes,
would net the Government something like
a million year, which would keep the
wolf from the door The sugar industry
Of the Islands was built up by American
legislation, and its profits have mainly gone
into American pockets. This is the first
time that any Government in Hawaii has
made the interests Of the islands them
selves its chief concern.
Meanwhile, it is to be hoped that the
adoption OF a new fiscal policy does not
mean the resumption Of Pearl Harbor by
the Hawaiian Government. The United
States cannot afford to lose that coaling
station. And again, the islands will lose
the advantage of an American market,
should they proceed to levy a duty on our
products,