The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1898-08-26
REAL ESTATE BLOOMS.

themselves, after that event. So far as
the Industrial stocks go, the belief Is
realized. At this time we do not COM
ment on Il, excepting only SO far as II
involves the values OF real estate and
business other than that connected
with sugar and coffee.
A real estate boom may arise out OF
the large surplus of idle money in the
community, the results Of great local
prosperity, or 1t may arise out OF out
side or foreign influences and from
foreign capital.
Annexation has secured permanent
stability of government. This, OF IT.
self, increases or hardens the values
OF all kinds OF business, and especially
the value Of land.
The prosperity Of the country, more
than all, has increased the value OF
lands and forced a boom of Its own in
raising its prices. II requires no for
eign aid to do 1t. The large sums
poured into the Islands, in previous
years, and especially the comparatively
vast sum OF $4,000, 900 which is the
value of last years sugar crop, Is nat
urally felt in real estate values Sim
liar effects are seen elsewhere, when
ever there is great local prosperity. The
rule is universal. The only "specu-
lation" which the very conservative
indulge in, as a rule, Is the purchase
OF land In their immediate neighbor-
hood, which is always visible and can
not abscond. Profits are not so much
regarded as safety. Values here that
men who are familiar with the prices
of real estate in the great cities of the
Mainland, would, and do, regard as
extravagant and absurd. are largely
the index OF the local prosperity, and
these values will probably hold, so
long as this prosperity continues. They
may even go higher than they are at
present. The prosperity Of the COM
munity is simply dazzling and almost
--ominous. While the exports of the
Il, 100000 OF people on the Mainland
are only $l4 per capita, the exports
from the Islands reach $40 per cap
tia. As we have said before. the state
ment astounds political economists.
But In 1t lies all the element and
force of real estate boOms, without for
eign aid. But even these have their
limitations.
Regarding immigration from the
States, a. a cause for blooms" 1t is
not easy to give any reason why 1t
should be large, unless the sugar plan
tations are about to employ many Am
erican laborers In the cultivation Of
cane. The tendency on their part is,
unfortunately, to substitute Asiatic for
American labor in the mills.
Outside OF the sugar plantations,
how many more men are really wanted
In mercantile business, In the mechan-
ical trades, for general labor. and In
the professions? 1t Is said that even
with our prosperity the Industrial and
market is overstocked.
There are about 1921 American males
here over 15 years OF age. These do
not find that places go a begging" A
are out OF employment. Now
II 1000 more men, an Insignificant
in the States, land here, what
are they to do? And II they find moth
ing to do, how can they cause real
estate values to rise? Ninety-hve per
cent OF the people must work for liv-
ing. The class with independent"
means Is so small In any community,
1t makes no figure. The growth OF this
city and suburbs depends upon the
growth OF industries which furnish a
living. So far. sugar has done 1t. But
WiiA ~ V"pioy "NVs" thouSAhu Ahoi =
men here. and create demand for
Other industries are small
and no new industries are being Gre
ated. The demand for more popula-
ton. aside from laborers and farmers.
seems to be more than supplied. and a
rise In values cannot come from this
direction.
Real estate investors from the Main
land are rather startled at the present
prices OF land. but they hardly under
stand that 1t Ia mainly due to our own
surplus OF wealth.
That the American population will
gradually increase is certain. But 1t
will permanently increase only SO fast
as the immigrants can feed and clothe
themselves. "Old Glory" don't feed
any one. 1t simply protects. All else
is left to the economic laws.
Blooms" do not necessarily follow
the Flag. Millions OF acres on the
Mainland are under the Flag, but yet