The Hawaiian gazette., 1897-02-26
Speculative Ventures
Were Not Fruitful.
Comparative Tables Of Production
and Consumption-Beet Root
sugar Crop.


supply for the American markets.
There had long been an all but general
expectation that, from the condition
Of affairs in Cuba, American importers
would be under the necessity OF max
ing such drafts on European stocks as
could hardly fail TO produce import
ant changes as regards the displace-
ment and absorption of supplies and
the tendency of values. This eXpecta-
ton. however, although periodically
giving signs of being fulfilled, was new
er actually realized to any extent at
all commensurate with its wide accept
ance; in fact, by forced shipments of
fresh cane sugars from Java and other
oenters of production, turn in events
altogether undreamt of as possible
speedily created a position which made
American buyers comparatively indie
pendent Of beetroot There was the
ory common enough that the creation
Of this new position was assisted by
something like a general Outpouring of
invisible accumulations of old and
1ong-neglected stocks, but to what eX
tent this may have been accountable
II
cal effect al all. ii is impossible to say;
one thing is certain, and that is that
the European markets, continuing bur-
dened wifi more than ample supplies,
we're not only disappointed of pros
perity which was regarded as inevita-
bic, but were. besides, called upon TO
encounter difficulties of no ordinary
Kind Perhaps in no single year, not
outstanding that the depreciation had
often previously been much more Sc
vere. were so many disasters ever be-
fore recorded. The constantly recur-
ring rumors concerning the situation
and the dangerously sanguine views
expressed. especially by those most ig-
norant of the subject, in relation to
the golden harvest which it was to
yield. gave rise to outside speculative
adventures without number, and as
few. II any of them. within their brief
existence proved otherwise than I'M
successful, the aspect of affairs was
soon changed into one of far-reaehing
trouble. The misadventure, taken as a
whole, has been productive of deplora-
bic consequences, not the least being
that regulations of contracts, quib-
blings in support of false issues, and
legal strategems. and so-called legal
decisions, have all been sought to oc-
cuny the place of fact. and as means
Tor sinking the responsibility attach
ing TO common honesty in statement
and intention. Under such circum-
stances the legitimate interests of bo-
na-fide dealers could not remain IN
affected but. fortunately, the strain
has not been too severe in most such
cases, and il is still not improbable.
their speculative coadiutors being out
Of the way. the realization of their
more skillful and intelligent estimates
Is only postponed. At the opening of
the year the price of prompt IS per
cent beetnoot {. o. b. Hamburg stood
a. lis; it then, with moderate fuctu-
atoms. reached 12s 9std at the end of
April and from this figure. which was
the highest. the price gradually reced-
ed till In October it reached IS 75bd.
which again was the minimum point.
II may thus be said that the values of
the year were almost equally divided
into two distinctly opposite courses,
and that those courses were directed by
what may be described as the waxing
and waning processes relating to that
hl-starred expectation as to the action
OF America. There were a few other
distracting events. such. for instance,
as an increase Of certain foreign boun-
ties, improved crop returns, etc, but
as a depressing element the American
business was certainly paramount, and
OF course the others only aecentuated
the weakness produced by the failure
o. the main support.
The serious decline in the yearly
average values, which had been at
work since the close of 1898, has been
arrested by the higher range of prices
which obtained during the speculative
movement in the first half of the year,
and By This means a technical benefit
70 the extent OF Cd per cwt. over the
point touched in 1895 may be said to
have been gained. The average price
Of IS per cent beeroot for the current
rear. namely. los Sd. brings the figure
tie about what il was for 1887. In 1888
there WIS an estimate of some short
coming in the crop as compared with
that Of 1887. and. in consequence, a
long period Of good prices and unim-
portant depreciations produced an av-
eraEe Of las Sd. In the following year
-ISSo-when a difference of no less
than It's Sd per ewt. between the min
mum and maximum values suddenly
created untold wealth, an average of
les I'D was established. That was, in
deed, fortunate period for the sugar
trade for although prices advanced
from point IS per cwt above what
they are today, and 6s Sd over this
Years average, 1t is notable that the
elasticity Of the market in those days
was such that on the strength of a
statement, which ultimately proved
tallaciOus. it was capable Of producing
suen profits as $4,000 in the case of
one transaction Of no very great extent
IN Java sugar between the dates of sale
and arrival. and a net result on the
years trading of one firm of little
shorr or half million sterling. 1t is
not intended in this depression to con-
Tey the impression that this is to hap
pen al over again. or that opposite re-
suits Of equal importance have not also
been experienced. but at a moment