The Hawaiian gazette., 1915-10-08


Had the administration determined to press the
matter of free sugar to the limit, the sugar indus
try of the United States could not have survived
the dumping that would have followed the con-
clusion of the war in Europe. Under the original
provisions of the Underwood tariff, the United
States would have been the one great country with.
out countervailing duties against bounty grown
and the stores accommodating would have flooded
the American market and sold below the cost OF
production Such a prospect. coupled with the
absolute necessity for revenue, undoubtedly in
duced the reversal of policy so welcome to Hawaii
Facts About Sugar" in its issue just off the
press, dealt with this danger from bounty sugar.
The expectation that the belligerent countries
not only OF sugar but also of many other commodi-
ties, is held by leading trade authorities it says 1t
is recognized that this is important factor in re-
straining development in many American indus
tries that would be making rapid progress except
for this consideration.
The incentive to the nations now involved in
war to do this will be strong as they will have
large ncermuht ed stocks of goods of many kinds
and the disposal OF these even at a sacrifice will
help them to iquidate the heavy balances against
them in the United States and to secure fresh sup
plies of raw materials.
+ In the case of sug"r the opportunity to dispose
OF large supplies in the United States will be par
ticularly inviting for the United States will be the
only important sugar-purcNasing country in the
l,,i,L /
no penalty against bounty-fed sugars
Russia is one of the great sugar reproducing
countries Of Europe and one in which the industry
is expanding rapidly. Russia pays a bounty t,
its sugar growers. Russia produces a surplus OF
sugar iur export but for two years it has been
-, impossible to ship any OF this surplus westward
and it has been accommodating within the country
AT the conclusion of the war it will be simple
matter for Russia to ship to the United State, ;
large part Of the supply which will have been
accumulated by that time, and to sell it far below
what it costs to produce sugar here.
Germany and \ustra-I hungary in the past have
sold annually 100000 more of sugar +,
Great Britain. This market Is now shut off by
the war and it is doubtful if it will be avaabl,
learned from her experience of the past year the
great national value OF growing her sugar supply
& from her own soil and is giving serious consider
alton to the encouragement OF beet growing III
England and OF cane production in her colonies
In any case Great Britain will be disinClncd I,
buy sugar of her former antagonists so long Il, il
can be secured elsewhere. German and Austrian
sugar, therefore, may seek the American market
especially II these countries relmp0se bOuntIcN
export sugars
Had it not been for the war in Europe the Uni.
ted States might have been protected in a meas sure
from the uurcgulated competition OF bounty ir
Although the United States not member u
this great international trust which in the past hl,
regulated the sugar business of Europe, the con
ference regarded the United States as COnycntiuI
territory and its regulations against dumping an,
- for minimizing the expectation of bounty-fed ~u
gars applied to the American market. The war
however, has put an end to the Brussels convcn
ton, and it is almost incOnceivable that it will b,
renewed at the cor>lu fusion Of the struggle
Accordingly no bar will exist to prevent Euro
pean countries from entering the American mar
ket and dumping their stocks here without reStric
ton as to amounts or prices. In the ecunuml,
stress under which these countries will find them
selves at the declaration Of peace it is extremely
likely that this course will be followed