The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1902-04-08

ton will allow them to continue their
protoctionist policy as to sugar in the
limited degree stated. Under this ''sur-
tax" the sugar companies, which have
practically monopoly OF their home
markets, can sell at loss their surplus
production This is what has happened
in the case of German and Austrian SUI
CARS In the last two years, since the COM
bines were formed. France has no ac-
knowledged combines. 1t is said that
manufacturers or traders who tried to
form a combine there would come under
the criminal lava fact showing that the
system Is not exactly a necessary one
Tho delegates at the Brussels Confer
ence believe that the Limitation OF the
'SirtaN Will prevent the operations OF
the combines. which are said to have
been selling sugar. latterly. at &c los for
export when 1t has actually cost them
el2. They get Ct rs as bounty and the
rest out OF the consumers OF sugar in
Germany and Austria; the manufacturers
cannot restrict their production because
a part OF the total profit goes to the
growers of beets who are associated in tho
combines.
CONTEMPLATING DUTIES
The contracting powers undertake to
enforce its provisions, not only upon
themselves. but upon powers which are
not parties to II. Thus, IL the powers
are in agreement with the United states
in holding that sugar receives an indirect
bounty in Russia, they will put up a spe-
cial countervailing duty against Russian
sugar. For this, in England's case. spe-
cial legislation will be required and
doubtless the Government will pass a
measure somewhat on the lines of one
suggested in 1898. which will authorize
the Crown by Order in Council. TO i'm
pose duties on bounty-fed sugar, or even
to prohibit its importation. 1t would,
Of course. be impossible to carry out
the policy of the convention without q
measure Of the kind. Legislation is neG-
essary also in France, Austria and Ger
many, and II is said that the sugar COM
bnes of Austria and Germany will en-
deavor TO block the convention by op-
posing legislation in their Parliamcnts
There is no reason, however. FOR sup
posing that action of the kind will be
effective, and probably, at least for i've
years, the new policy will have a trial.
BY the end of that time Its actual effects
upon British industries may possibly he
apparent; and II will be seen how far the
price of sugar ia increased
EFFECT ON THE MARKET.
And this is matter as to which the
most divergent opinions exist 1t is GER
tain that the West Indies lost their con-
troll OF the sugar market largely because
their machinery and methods were out OF
date But for the cheapening of the pro-
duction of beet sugar, as a result Of the
competition of one Continental nation
against another, under the stimulus OF
the bounties, there would have been no
progress. II the effect of the convention
We're to ruin the beet sugar trade on the
Continent, this country would have grave
reason to complain of the new policy.
But 1t may be that this policy will en-
courage the producers of cane sugar.
which Is undoubtedly superior to the beet
article, to put up machinery which Will
further cheaper all the processes, so that,
instead OF raising Of the price, there
may be lowering. Some OF the Con
unental experts believe that cane sugar
can be produced more cheaply than beet.
rms Is also the opinion OF the American
beet sugar manufacturers, who dare not
face free importation from cuba under
the new political conditions of that ISL
ana, But the fact has yet 10 be proved
RISE IN PRICE PROBABLE
In the meantime, after the existing
stocks of beet sugar are cleared of, no
doubt there will be a rise in price. That
is natural consequence of the policy
adopted indeed, IL has been the hope OF
the agitation. There is no Interference
with free trade. This is admitted on all
hands, on the contrary. the British set
up rule OF trade free from the COM
petition OF rivals having a special and
unnatural advantage. And the Govern
ment binds itself not TO give any such
advantage to Colonial producers. What
ever duty is put on beet sugar must be
put equally on cane. Yet the principle
of countervailing duties is q new one
Tor this country TO adopt. Ii marks 9
new departure. and. the country loses the