The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1902-03-18
THE PRICE or SUGAR.

Tho present. price OF sugar I'm the
Nurlu's open market IS the lowest on
record III" price iu the United states
be- somewhat higher, owing 90 the tar.n.
The immediate cause of the low price
of sugar is the enormous ovcr-prOduc-
ton lu Germany. France and Austria,
but the cause of the OVer-p production,
and therefore the primary cause of the
low price, is the fact that these Euro
peau countries pay an export bounty on
sugar so large that the manufacturer
can sell their product In England below
cost and sim make "a profit
From small annual payment. this
bounty has now run into the millions,
until. with the high military and naval
expenditures, and the great national
debt interest charges II has become an
intulcrablc burden upon the continental
governments ana for the past twenty
years they have been spasmodically
trying % get rid Of the system,
Two obstacles have prevented 1t,
first. the fact that so many people
have become Interested in the sugar
business and the continuance Of the
bounty system that their united intiu-
cnCe is great; and second, that no
government has been willing to abol-
Ish the bounty unless others would do
the same as the business would b.
forthwith crushed out in the nom
bounty paying country and centralized
in the bounty paying one. The latter
could then gradually reduce its rate OF
bounty while the absence of compet-
ton from the abandoned plantations in
the non-bounty paying countries would,
until production had again overtaken
consumption, raise the price to protit-
able figure.
International convention after con-
l.. "A tt.T md a r. a
at common agreement to abolish su-
gar bounties. Each time, however, the
sugar interest has been able to control
some delegation and prevent the agree
ment In 1898 France was the only
disagreeng nation. Another conven-
ton for the same purpose Is now being
| held in Brussels, and again France Is
| the obstacle to an agreement, and no
agreement has yet been secured.
The remedy seems to be in the hands
of England. only with free market
in England can the anomaly be posi-
BILE of sugar being sold at less than
cost and still netting profit to the
manufacturers. If England should I'M
pose duty equal in amount to the
export bounty paid by the exporting
nation, the whole system would IN
stantly collapse, as no proht. but IN
stead, an absolute loss would result to
the exporter.
There are two reasons why England
has not heretofore done this: first be-
cause of the firm establishment there
of the doctrine OF free trade; and sec
ond because the system has resulted IN
giving the English people the cheapest
sugar In the world, thereby artifcially
stimulating and establishing an enor-
nous jelly. jam and preserves busi'
ness. These two influences have VI
al
The two influences, on the othel
hand, favoring a countervailing duty
are the English sugar retiners, and tht
| English cane sugar producing colonies
These two great interests have beer
nearly ruined by the bounty protected
European sugar. a third influence has
now joined with these two, viz, the fac
that the African war has so strained
the resources of the government tina
revenue is insufficient, and sources ~
additional revenue are being eagerly
sought The United States income
from the sugar duty is it's largest from
any one source. An English counter
VaiinE duty equal to the bounty woult
produce many millions a year. Their
are strong indications that England
will take this course If the European
countries do not discontinue bounties
If she does, there should be an earl,
rise in the price of sugar.
Action at Brussels and London vii
be waited FOR with intense interest b!
I all concerned in sugar,
Since the foregoing was written tn
news has come that the Brussels con
Vention has at last decided to recon
mend to the several governments Their
represented, to abolish sugar bountie
as of September LIST next. This doe
not necessarily mean that the recon
mendations will be adopted, but ii
the first step toward that end, and ia