The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1897-04-27
GERMAN SUGAR BOUNTY.
System Has Developed Into Some
Thing OF a Boomerang.

tnln5 Oh a Boom Srdng.
Apropos OF the discussion of the new
Dingley tariff bill and its proposed
duty on sugar. the New York Chamber
of Commerce published. on March IS,
an article in which the chief defect of
| the German sugar bounty is pointed
| out. The data Is secured from the Of
fetal reports of the United States Con-
| sui General at Frankfort and of the
Consul at Madgeburg. These reports
state that the bounty system had its
! origin in 1891, and from the first the
German bounty has been paid on eX-
ports solely. One OF it's results has been
| the enormous overproductiOn of 1891
| %. and a corresponding decentralization
of prices. Last year there was an urg
ent demand on the German Parliament
TO devise some means for the relief of
the depressed sugar beet growers. In
the words of Consul Mason, sugar was
declared TO be the last and only agri-
cultural product in which there re-
manned any profit for the German far
mer, and it was recognized that what
ever skillful legislation could do to
preserve and protect that industry
should, in justice to the suffering land
owners, be given a prompt and thor
ough trial
law was accordingly passed in
creasing the bounty on expectation,
advancing the import duty on sugar
and generally speaking doing all that
legislation could do to make the rails
ing of beets profitable. It's effects may
be conjectured from the fact that in
less than six months after its passage
sugar manufacturers have issued an
appeal for new legislation ito rescue
the sugar producing interests from the
very act passed for it's salvation, and
(the results of which have presented
themselves promptly and in a most Sc
riOuS FORM
The increased export bounty was fol-
lowed by a proportionate decline in
the foreign market, so that, according
to Mr.. Mason, the German exporter
now receives only the same price for
his sugar as before, and of this price
the German Government pays more
and the foreign consumer less than
hitherto. The German Government. in
this connection, is of course only an
other name for the German taxpayer,
and we find he pays some 2 cents a
DOuUU OH the sugar ne uses TO SnaDIo
the Government to pay export bounties
for the benefit of the foreign consum-
ers. The bounty under the new law is
80 cents per 220 pounds, so that the in
ternal tax on sugar still leaves con-
siderable net revenue to the Govern
ment. The import duty of S10.71 per
220 pounds 600 kilos) yields, of course,
no revenue, being manifestly prohib-
itory.
The disgust of producers and manu-
facturers with the operation of the
new law springs mainly from the fact
that it has greatly stimulated the rails
ing and refining of beet sugar. 1t seems
that many of the existing factories are
charging their capacity and extending
their operations, while new factories
are projected, and wealthy and power
full companies are beginning to utilize
the advantage which they possess over
the smaller establishments.
1t has come to this, that the Reich
stag will be petitioned to make certain
amendments to the existing statute
so as to restrict instead of stimulating
production, and to invite international
negotiations for the gradual abolition
of the export bounties, which have
been proven to be simply a burden on
the treasury which pays them, for the
benefit of non-producing foreign coun-
tries.