The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-11-09
CAUTIOUS FLNANCIERING.

The Eva Plantation Company pro-
poses to contract loan OF $500 900 for
making economic improvements This
company has already issued So 900 900
in stock for d substantial equivalent
Of cash, and has issued $4,000 900 in
stock in the nature of a stock dividend.
This additional stock represents no
cash, but does represent the probable
tiles and possibilities of the future
value of it's assets and its net income.
But the needs of the plantation call
for further investments and it is now
done by contracting a large bonded
debt. Has a sound principle of bust
ness been followed? There are few
principles of business which, though not
followed by young and inexperienced
communities, are closely adhered 20 in
the older communities, which are con-
sentative, and have learned some les
sons from a bitter experience. l. Is
hardly to be expected that business
men who are suddenly confronted with
extraordinary conditions, and uneX-
pectedIy large financial problems,
should study the methods and eXper-
fences of older communities. Each
community must have its own eXper-
fence, and abide by it.
The Advertiser, some months ago.
| indicated what the history of the
values OF the stocks in all new indus
| trial enterprises has been. in other
lands. The events here show that
commercial and financial history only
repeats itself And so it will to the
end. Out of every one hundred indus
trial corporations organized during
| the last forty years on the Mainland.
nearly ninety-five have gone to the
wall The American brain and ener-
gy has failed to sustain them. The
unknown factors caused their ruin.
This fact is not an argument against
1.-THE promotion of industrial enterprises.
New enterprises must be constantly
promoted The conditions of com
merce demand it. But this fact
teaches the need of the most conser-
lvative conduct of valuable properties.
and the difficulty of predicting what
1.-The dangerous and unknown factors
may be
Secretary of Agriculture Wilson
has predicted that within ten years
the United States will supply their
own consumption of sugar from the
sugar beet If this should prove TO be
. true. the country will, after that peri
cd, become an exporter of sugar. and
be forced into competition with the
sugars of the world. This prediction
of the secretary is, in the opinion o
many whose judgments are entitled Il
respect, optimistic and exaggerated
o But Willetts & Gray's circular declare
S that the sugar beet crop of the Main
o land will. this year, amount to 1000
y tons. This crop will, therefore, sup
q ply one-twentieth part of the American
: demand for sugar. The rate of in
It crease in this supply during the mex
e ten years. is one OF the "unknow
8 factors
sc The protective tariff encourages a
e Increase in the Hawaiian product {
cane sugar, but likewise stimulates IN
+ rapid production of cane and beet suga
te in the States If the present protectiN
ST duties continue. it hastens rapidly I'll
Is arrival of the time, when the State
Ut will become exporters of sugar. an
c. just as the price of wheat at home
40 fixed by the market price of the su
II
ne price of American sugar will be fiXt