The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-04-05

export. when it has actually cost them
e12. They get e1 5s 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 the
combines.
CONTEMPLATING DUTIES.
The contracting powers undertake to
enforce its provisions, not only upon
themselves, but upon powers which are
not parties to it. Thus, if 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 a
measure of the kind. Legislation is nee
essary also in France, Austria and Ger
many, and it is said that the sugar COM
bines of Austria and Germany will en-
deavor to block the convention by OPP
posing legislation in their Parliaments.
There is no reason. however, for sup
posing that action of the kind will be
effective and probably, at least for five
years. the new policy will have trial.
By the end of that time its actual effects
upon British industries may possibly be
apparent and it will be seen how far the
price of sugar is INCREASED.
EFFECT ON TsIE MARKET.
And this is matter as to which the
most divergent opinions exist 1t is GER
tain that the West Indies lost their con-
OF Iar heaao ca
their machinery and methods were out OF
date.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. If the effe~t of the convention
were to ruin the beet sugar trade on the
Continent, this country would have grave
reason to complain of the new policy.
But it 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 a raising of the price, there
may be a lowering. Some of the Con-
tinentaI experts believe that cane sugar
can be produced more cheaply than beet.
This is also the opinion of the american
beet sugar manufacturers, who dare lot
face free importation from Cuba under
the new political conditions of that isl
and. But the fact has yet to be proved.
RISE IN PRICE PROBABLE
In the meantime, after the existing
stocks of beet sugar are cleared off, no
doubt there will be rise in price That
is a natural consequence of the policy
adopted; indeed, it 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 a 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 new one
for this country to adopt. 1t marks
new departure, and, the country loses the
bonus given to it by the bounties-a
bonus which, combined with the over
stocking of the market, has enabled the
existing duty on sugar to be paid without
any increase in the price falling upon the
british consumer