The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1921-06-24
FOUR CENT SUGAR.

Continued declines in the price of raw sugar present to citizens
of Hawaii a situation the seriousness of which is not to be mini
mixed and which should be the signal for strict economy in business
and personal affairs. At the same time it does not give reason for
pessimism nor for discoura cement, rather it must be the signal for
persistence, determination and vigorous action.
Coming after years when plantation wages were high and after
present crop are abnormally large. Combining high cost of pro-
ducton with low prices for the the outtu1n il is evident that the
sugar companies of the Islands generally will onerate At = loss This
year. This is most unfortunate not only for the stockholders of the
companies and their employees but for every citizen and resident
of the Islands To the stockholders if means absence Of dividends
to the employees it means smaller revenues from the lack of large
bonuses, to the government it will mean decreased revenue and to
the individual taxpayer it will mean increased tax burdens Here
ON Maui 1t means even more sacrifices than elsewhere for the
Maui plantations have been generous in sharing their prosperity
in the past. There are many things that the plantation managers
and owners have been doing which they would like to continue,
but they cannot when deficits appear in place of earnings, when
there are no profits to be shared with the public and for the public
Admitting all this to be true, it is not a time for extreme pcsi-
mbm as was remarked. The situation, serious as it is, might be
worse. Had this very lean year followed a series of improbable
seasons there would indeed be ground for Encouragement. But,
on the contrary, it comes suddenly and unexpectedly on the heels
OF several highly prosperous seasons. 1t is as if a strong and
healthy man met with illness or accident. His chances of recovery
are the best while if already run down and debiltated his hopes
of life would be slim.
Cheer up. It's no time to be disheartened. For the population
generally there is no cause for Encouragement. The individual
business man has had a period of good business. The worker has
had his times of high pay. They, like the plantations, are in a
1ealthy condition to meet the illness that has overtaken business.
Conditions are not desirable, admitted, but it will suffice nothing to
Jemoan. 1t is time to adjust ones business and life to conditions
as they are, for economy, but economy is not to be confused with
parsmony.
Four cent sugar is not here to stay. This is not the first time
it has touched that price. In the past it has rebounded from the
low level and SO 1t Will again. Prosperity will come again in due
season.
Looking on the brighter side, the price of pneapples is ad-
mhtedly good, that is, a fair profit will be realized by the grower,
and that will tend to alleviate the unsatisfactory conditions created
by four cent sugar. Costs of production of sugar next season will
be affected by the lower wages of this year and with a fair price
then profits will appear once more. Many things that Maui folk
have planned will have to bde a bit, but it is postponement merely,
not abandonment.
In considering business generally it is not fair to compare that
of today with that of last year and the years of the world war,
which were abnOrmaly good. Comparison should be made with
pre-war days. 1t will then appear that industry is far from being
at low ebb.
1t is the sugar companies of the Islands that are hardest hit and
they are taking their losses philOsOphically an example for the in
dustmes which merely face a smaller profit, not an actual loss.
Mauis course and the course for her industries is a plain one,
to go on as near to the normal as possible but without extravaganza.
To halt o II turn back is cowardly. Maui will continue to move for
ward though not so swiftly a s was expected a short year ago.