No. 251.
Mr. Adee to Mr. Fish.

No. 324.]

Sir: I have the honor to transmit herewith copy and translation of an editorial article of the Epoca on the sugar-trade between Cuba and the United States. You will observe that the article is founded upon a recent one on the same subject in the Cronista, of New York, wherein the writer foresees danger of future competition and injury to Cuban interests, by reason of the late treaty between the United States and the Hawaiian Islands, which gives to the sugars of the latter free entrance on our Pacific coast.

Without stopping to inquire what the present imports of Cuban sugar on the Pacific coast amount to, or how far Hawaiian sugar is likely to find its way overland to the Atlantic States and so compete directly with that of Cuba, I merely call your attention to the remedies proposed, namely, peace in Cuba and a commercial treaty with the United States.

The whole question of the sugar-production of Cuba and Puerto Rico is one which now excites much interest here, it being generally regarded as the first duty of the government to foster it in every practicable way; and much satisfaction is felt at the circumstance that the exportation of sugar from Cuba has not been diminished by the ravages of the war.

I have, &c.,

A. AUGUSTUS ADEE.
[Page 464]
[Inclosure.—Translation.]

Editorial article on the sugar industry of Spain and her colonies.

the sugar-raising industry.

It does not admit of doubt, as the Diario de la Marina seasonably asserts, that if the island of Cuba is to combat the obstacles in the way of its reconstruction it needs order and repose and great watchfulness, without which there is no possibility of recovering its lost equilibrium. The untiring endeavors to bring about the discredit of the island by exaggerating the evils caused by the insurrection, and holding up the government as being absolutely impotent to overcome it, have not, it is true, accomplished diminution of the faith and perseverance consecrated to their labor by the loyal producers of that Antilla, who see the reward of their efforts in a visible augmentation of production and in the sterility and fruitlessness of the resources which the incendiaries bring into play against the decided protection given by the government to the honest activity of the laborious inhabitants of the island. But, in spite of all this, it is unquestionable that order and repose alone constitute the most solid future guarantee which has to mark the progress of the island.

The protraction of the struggle is causing the production of sugar to be fomented in other parts in the hope that foreign production will soon annul the predominance of this crop in the island. This scheme of competition, which at the present moment offers no danger whatever, may give rise to future peril, if efforts be not made to avoid it in time by putting into action the means which patriotism and experience counsel. The remarks in this relation made by El Cronista, of New York, remarks whose judicious discretion suggests to the Diairo de la Marina the article which, under the heading of “competition,” is published in its number of the 2d instant, ought not to be passed unheeded by our readers, since it comes as a cry of alarm against the stratagems of which our sugar-trade is the object. No less a thing is referred to than the celebration of a treaty of commerce between the President of the United States and the King of the Hawaiian Islands, a treaty which Congress has definitively approved, giving to the productions of those islands free entrance into the neighboring republic through its Pacific ports. The sugar-raising industry, as our appreciable contemporary observes, is there “in the hands of American producers, and the President and Congress have doubtless sought to stimulate their spirit of enterprise in favor of that concession, whose most legitimate and certain result will be to encourage the cultivation of the cane in that most fertile archipelago and to strengthen the influence which the United States already exercise in their administration and government.”

So very clear are the data and observations wherewith El Cronista presents this matter that we can do no less than reproduce those which, in our judgment, are invested with the most important.

“Taking as a basis,” our contemporary writes, “that the convention in question is invested with a character of permanence which will strengthen the interests that spring up in its shadow, the Cronista would not fulfill its duty of watching in behalf of those of Spain and her Antillas did it not at once suggest the unfavorable consequences which this treaty may have for us, and the simplest means of modifying them, at least, now that preventing them is no longer within our reach.

“The consumption of sugar in the Uuited States, according to the latest data just published by the Statistical Bureau of Washington, is as follows:

Tons. Tons.
In 1867 468,393 In 1872 673,471
In 1868 498,649 In 1873 689,249
In 1869 503,812 In 1874 755,728
In 1870 591,538 In 1875 787,941
In 1871 583,147

“The population of the United States during these same years, likewise taken from official documents, was—

Souls. Souls.
In 1867 36,211,000 In 1872 40,604,000
In 1868 36,793,000 In 1873 41,704,000
In 1869 37,756,000 In 1874 42,850,000
In 1870 38,558,371 In 1875 44,060,000
In 1871 39,555,000

“These data show with mathematical accuracy that, while the population of the United States has increased 21.67 per cent. in the course of these nine years, their consumption of sugar (deducting sirups, to which, however, like reasoning could apply) has increased 68.22 per cent. in the same period. It is needless to say more for our [Page 465] readers to appreciate the vast importance of this question to the consuming country and the producing nations.

“Well, then; in 1875, when the United States consumed, according to official statistics, 787,941 tons of sugar, our island of Cuba exported thither 545,395 tons, and Puerto Rico 55,011; that is, 600,336 between the two, or 76.17 per cent. of the total consumption of those States. Estimating at 120,000 hogsheads, of 1,400 pounds net each, the sugar-crop of Louisiana, which, through circumstances which it is foreign to the subject to examine here, will not be increased in the coming years—nor, perhaps, equal that of last year—we have from this source about 84,000 tons; that is to say, 10.66 per cent. of the total consumption. To 13.17 percent., therefore, amounts the required importation from foreign countries to cover the difference.

“The islands of Hawaii helped to make good the deficiency in that year with 10,804 tons of sugar, or only 1.36 per cent. of the consumption, which shows that they have hitherto been far from formidable as rivals. But ought we to infer from this that they will not become such in the course of years? It is to be borne in mind that Cuban sugars, which form the main stock in the markets of the Union, are subject to a gravamen of 2½ cents in gold per pound at least, in the form of impost-duties, and it is to be considered that this represents an income for the Federal Treasury of $12,458,618.40 in years like the last one, an income which cannot be and ought not to be willingly foregone; and that consequently the privilege of free trade with Hawaii is equivalent to a premium of 2½ cents in gold, paid by the American Government for the encouragement of the sugar-production in those distant islands, one day, perhaps, to be theirs; and our readers will agree that, those islanders being incited by so powerful a stimulus, the cultivation of the sugar-cane in the Sandwich Islands will receive so great an impetus that in a few years they will come to be for Cuba and Porto Rico, in the markets of this country, a country which high reasons of policy would counsel them to retain as the principal consumer of their products, an extremely troublesome competitor, which soon afterward would be converted into a constant and dangerous adversary.”

In order to combat this new and terrible competitor, which presents itself to view for the first and most important of the productions of the island, the Cronista observes that there is no other way than to furnish the government with the means needful for the prompt ending of the war, the sole conquest which will restore tranquillity to the fields and peace and contentment to the cities. We agree with the opinion of our contemporary, but to so absolute a pitch that we do not for a moment doubt the success of the remedy. The resources for the approaching campaign being assured, as they now are, and the sugar-raising district being saved from the dangers which threatened it, we hold the conviction that there will not long have to be awaited a measure of an international character which will yield mutual advantage to the commerce of the United States and of Spain, saving our colonial production from the competition which threatens it. To the advantage offered by the geographical position of Cuba, and by the natural influences of the climate on the cultivation of the cane, will be added those springing from improvements in manufacture, which allow of greater yield than that now obtained. Six months of peace will realize all these gains.