Newspaper Page Text
THE SUNDAY ADVERTISER, DECEMBER 18, 1910.
19 The Philippine Sugar Industry A-Usxold M. ritt, i: The Federal Reporter iov November, 1910. S3".' to ly:;. fur which year t ii at L:.-2 pica's, which e are f the greie " ; ami en'- 1 ' ;,aeuts is sil-i man's lit'.' or corn, or :i .,that eoti-tit'. i.fe-sntainin ,iB practical!) sn extent in 3 a? to permit ,rinet article mailable for the Ijodoal. There r.i .wt.s in w!i:h rvuu' -.-::-::M,!:tic- ,.f , ,;-.-:. ..f :,! Uliiie not CS- T I i - -euse that .- 'if these ol hi-r The basis ot i'. ye; it is !i of them and i -1 . ;-, ra i'ii:e ngn segregation into that commerce "'cific use of two ngrieul has been de- ', the sonree ot supply ot sugar separate commercial commodity. )S a certain hind of cane and of jown as siijr.iT cane ami sugar fte cane is a tropical product ,a;tivated principally on island j Tell within the tropic zone al jt is produced To some extent i warm temperate region? a 5, and Texas in the I r.ited tie islands of Formosa, Argen Sonth America, atid on the con ,f Australia. The hulk of the ;npply of cane sugar, however. ;om he islands of toe East and t Indies, including f'uh.a. Porto 'ava, and the Philippines: from in the midpacihV and the i?!antl of Mauritius wliich lies ast of Madagascar. The sugar i temperate zone pro.ltict and ijp P0 was grown exclusively in is countries wirh the exception $;m!I quantity that had been experimentally in the United The business of extracting ion the cane dates back into that of utilizing beets for sim- poscs was nor unaenaiien sori- sitil about :o. when the sents of Germany and Austria- T-songht to establish the in- in order to le freed from de- e upon the tropical countries itsnpply of sugar. Other Euro dons followed the example with alt that beet sugar produced on meet of Europe came to exceed asnmption in several countries. ;to competnon among them export trade. The system of touBties on exports was then in i the expenses for which va- ytf sugar exporting nations had vr levying excessive cousump :es within their own confines, -ral result was to make sugar ia those countries, where nu ke necessary to supply the de- r consumption, than in those iated it. In the meantime the 3 of beet sugar had outgrown :e cane product and In- reason aortbonntv devter. wa serious iiag it in the world's markets. ! l;e.' i-i-.i''1- had their eil'.-ct on '"' -'flurry I'-. ti- I'hilippin.-s. where moi,.. than '.-lie hun4rod years can. v': " '' had :. ;. a important export prouuet. 'l'i:e firt auTi.ej.tic record we have been able to tit:-; relating to Philippine '.!.'., r ;s from tie- import- into the PniTed Sr;,f-s dating back to 17-"9. in whicli y.-ar r!''t.l,i: pounds were credit ed t ti:.'-,.' : 'an. is. For ten years follow ing the importations were not important exrep? as they Lowed the existence of the industry in the Philippines. Sail vessel ,-arlv learned to complete their cargoes w.th sngar from Manila am! tea from I'anton before starting on their return voyages from the Orient. The most notable advance in the in dustry in these inlands appears to have been coincident w-ith the I'rimean war and was probably due to an increased consumption throughout the civilized world which o-r-atiy enhanced the price and made the .Teiu-try so profitable as to prove- an nilming attraction for capital, the ir-e investment of whicli' quickly d; ve'i-to-e plantations in the provinces of I a:pan.:a. P.at.mgas. and Tarlac. Lnzo.. ;;i,! later in the islands of Nr.'tiK. i ',- :-. . ,tud Pa n a v. Suya c.-u,;1 is cu:Tiv:.t-1 r: nearly every sec t'i'11 of tii-1 ;,r-:, :-t -iago and sugar is m . . k -) t",, ,-t vi l - .i -, , , ihiiiiM'cial quantities for loeal -., s-n'.p: .--n in many prov- 'let-s. hut .. -L;i;,ed above furnish l'!'actic:ii!v is exported. The on.'y Sp-iiiisi) T---. i-.js available show;ng ixpoits of -'.ig.i-r bi not date earlier liian 1 "4. for w:,I.-h year the figure were 47.7"4 ;.-tr:.-- tons. Of this arammt Xeeros ,'n'i'r ! a trifle over five thousand ton. Renditions for the cul tivation were f. i', . To be exceptionally tavornble i sland and nroduction im-i-eascd r-e r-' r q-i-liy there than in any other s. .,-'!..-:. r.tiiping from fi.ftOO tons iii is". to,iiH - in ison and 12.non in 1 9?. There a difference among authorities as to -he largest production of sugar in The 7'i.ilij pines in anv given year. Sei-or .T,--se ;e Luzuriaga. in an article eor.frib-.ted to the Philippine census, yives the --j-'-.n of 1S9.T as the largest and de-ai's the production as follows, express.-, In tons of 2.000 pounds: Xegros . . 1 2o,000 Pampanga and Tr.rlirt 43.730 Batangas 40.f-2." Pa nay 4S.750 ebu' 1S.750 Paugnsinati 3,12-") Baraan 1.87.') T.tignna 1.75 P.ohol 1.2."0 Tnvabas 1.2.0 Hocos Xorte 1.2o0 TIocos Pur r2." X'ueva Ecija f)2") n0.000 ei s records give exports Total Spanish tor ist2 as the largest and the official fienres for th:"f year place the amount exported at 312.7f metric tons. The belief, however, that there is some error !n tie-so Sg-rfs is well founded for th reports of the Manila hamlier r.t ( 'otnr-reree compiled bv calender rears frediT the heaviest ex ports giver l'til.)M'i tens. !i ciiovir hgures :n'e cerrei-t. and if is preicible that iiiesc of Sr. LsiZiiriaga si iv on. iv nearly so than the ,ne from f'-cord- i fh.-y agree w it'u ex poris ;,, ce-npih-d by the ( 'haml.er of ' i in :i : ,' i-c - uhea aleoviuo-e is mad.' for iec.-ii i-i i is -1 1 in ; t inn ). liiere can be no doubt that tiiat year marked the high est po'iit ol de elepinent readied bv liie Migar industry in the Philippines. Immediately following this period, a number of causes combined to check its development, important among which was the panic and break in silver that oceurcd in .1 S!'.'. The manner in which the industry was adversely atVoeted bv a financial upheaval on the other side of tlie globe came about in this way: Russell. Stiirgis it Co., a commercial fine, founded by Americans, had grown to be one of the largest institutions of its kind doing business in the Orient. Their branch at Tloilo was ex tensively interested in sugar and had been instrumental to a considerable degree in developing the industry in Panay and Xegros. It was her custom to make advances to planters for tho purchase of machinery and for planting ami cultivating crops, then take pay ment in sugar after harvesting. As they were heavy exporters of' sugar and this system enabled them to control a big proportion of the crop, it proved highly profitable, hut at the same time made it neeessarv for them to make verv j libera! use of their banking credit, as the capital required from one season to another was naturally great. When the pa lib; came it found them with asset- that were undoubtedly ample and good but entirely lacking the very es sentia! liquid quality which permits of readv conversion. Hanking facilities were th 'n controlled by British instifu tions who were influenced to call in their loans by he great Baring failure in London and the fall in Silver then the money basis ,,f these islands. Pus sell, Sturgis & Co. were not prepared to meet the demand and were forced into bankruptcy. The planters who had de pended upon them for financial assist ance were deprived of this support and thus obliged to restrict their operations. The depression in the value of silver placed a heavy burden of exchange on the commerce of the islands thus re ducing the market value of all export oroducts and increasing the cost of foreign goods. The result was evi denced in a falling off in exports of sugar for Is'dt of nearly seventy thous and tons or twenty-six per cent. ,It was about this time that the beet sugar industry was receiving attention and government assistance in the T'nit ed States. That country had become a large user of European beet sugar whi 'h was imported at low cost on account of the export bounty it had rece'v.-i fn n the governments of the countries vlr're grown. Recognizing the de! r i b! I v of producing more of the sugar it ivn consuming the Tn'fed States was pav ing a bounty on ttie local prohiet !r cluding both the cine and bee.-. I'his later gave way to a high protective duty which is wholly effective for the reason that large importations of sugar are stil necessary notwithstanding the fact that production has recorded an enormous increase under the stimulus of Vgh or'ces Beet sugar is turned nut by the mills in refined form and. due largely to This fact, offered it necessary f -iigai to obta had been cii o i-i cement wa e.t .-tates as i ,-t sugar became portant factor in the market, pr; in pal cane growing miine -I'l.v 'uba. Hawaii and .lava, u hid: the Cuited States had bee,. nig ti,e larger part ot its a competition that made 'i' the refiners f raw cane n a higher grade than it ternary To ue. This ,-e-' emphasized in t he I'nit- III! Mil In the -. llot f loin dr.'i w y. the but t he ot if was lia supiov ministry response,! to this demand .1. 1 - 1 r . , Mie i in ippme planter deprived .Inancia! assistance upon which Deconie i is cutom To depend nb.e M procure the expensive equip ment that, would alone enable him to produce sugar of the highest grades and so was compelled To fall behind in The race. The best grade of sugar ex ported from these islands jtolarizes around or Si) degrees and is in the class designated as Muscovados, the value of wnich. in the Xew York market, is .fl1.2i less per ton than that of the standard 96 degree article. This is our best grade most of the crop 's of the heavy molasses variety, rang ing down to 7-j degrees test and worth .slti.si.l less per ton than !( test sugars. Cuba, which is the heaviest grower among countries from which the United States draws its supply of raw cane sugar, produces very little that falls under 94 degrees polarieopie test and the greater part goes to Po and 90. Hawaii's product is practically all high grade, and Java, where the government exercises infinite care in the supervision and regulation of the industry, supp!io-k. to the I'nited States each year several hundred thousand tons of raw cane sugar that averages above 97' C degrees test. This furnishes a striking illu.s'ni tiou of the advance that lias been ac complished by the industry since twen ty '.ears ago when the sugar generally produced was of the same grade as the present output of the Philippines where not mlv has the grade remained un improved, but where production has actually fallen off. The outbreak of an insurrection against Spain in 1 s9rt disrupted con ditions as rear's labor and all interna! economies and before the country had hipl opportunity to become tranquillized the insurrection of 1S99 against Amer ican authority, which quickly degener ate:! into a devastating guerrilla war fare, kept the islands in a state of fer ment that stifled nearly all industrial activity. Then, .hist when affairs began to icttle and. the people were to have opportunity to renew their pursuits in peace, an epidemic of rinderpest lasting through two years killed a full SO per cent, of the work animals on the farms and left the people without their nc dp'tooe'd help in tilling the soil. This completed n demoralization that had become general but affected most seri ously the sugar industry because of the ru'uous state into which it had already 'eeu. Plunged, firs by the loss of the fim ricia! snpicnt upon whicli it had mainly been built up. then the competi tion created bv a demand for higher grades of raw sugar which it was un prepared to meet, followed bv two in survoctions but a short p-riod apart which caused great destruction of prop erty and depletion of the labor supply. Then eain,e the culminating misfortune of loss of the work animals upon which depended the cultivation of the fields. There is little wonder that the industry was prostrated; the only wonder is that it continued to exNt at all. When the sugar industry was at its height iii the Philippines there were nearly :',!H,noU acres under cultivation to ca.ie at one time. The area in sugar acres. The Bureau of Internal Revenue has compi'ed a report, based m personal ' u est igat ions made by its agents, .vho-h places the area contiguous to that already under cultivation, which may be class. d as ,gar land, at ap proximately goO.ooi) acres. Those figure- indicate the amount of uueuiti- , vated sugar land that is available! and show how small is the acre yield I in these islands. The census of Plug j gives the average product of sugar per j acre for 'ho entire archipelago at 2.200 pounds and Pampanga and adjacent I provinces where it was but 1,200 pounds and the highest in Xegros where the average yield was 2,S0( pounds to the acre. During recent years the production of sugar in these islands has ranged from one hundred and seventy -five to two hundred thousand tons. Of thia amount approximately fifty thousand tons have gone into local consumption, thi' remainder being exported. China has Icon the best customer taking about, two-thirds of total exports. Part of this has gone to the refineries on the cane at present is estimated at 16S.263 British island of Hongkong and part to China proper where it is consumed in its raw state. There is a small refinery at Malabon a point near Manila, but it is not a modern plant and does not ap pear able to compete successfully with the Hongkong refineries even for the local trade. The consumption of re fined sugar in the islands has been com paratively insignificant; annual im ports, conclusive of that supplied to the Cuited States Army and Navy, amount to less than four thousand tons. The United States lias taken varying quantities of Philippine sugar each y"::r. usually from a sixth to a third of the total exported. The legislation re cently enacted by Congress, which pro vides for admission duty free of up to 300.00(1 gross tons in a year of Philip pine sugar into the United States, make it probable that all of th" better grades produced here will be diverted to that market; and, as the industry should prove strongly attractive to capita! for investment in modern mills, there is reason to hope that within a few years improved ntethods of treat ment and manufacture will have chang ed the character of the product, improv ing the quality so that all produced will 1 e enabled to enjoy the benefit of the remission of duty. It is obvious that the future lines of the industry in the Philippines are closely bound up with the question of the commercial relations of these is bands with the United States, and those relations, in turn, hinge on the one proposition of sugar. It was the mighty sugar interests of the United States, represented by the refiners, the beet manufacturers, and the cane growers of Louisiana and Texas nearly all of which are under control of the gigantic Trust- that prevented passage by the Senate in 190fi of a bill providing for unqualifioed free trade which had re ceived almost unanimous endorsement by the House of Representatives. And it is tlnse same interests, the fear of whose power to check any concessions whatsoever, induced the present ad ministration to arrange a compromise under which a limit was placed on the amount of sugar that should be admit ted into the United States from these islands duty free. That this limitation is not necessary for the protection, either of the cane or the beet sugar producer of the Cuited States , is sus ceptible to absolute demonstration. Th real proploni that confronts the Nation is where it can in the future obtain th sugar to supply the needs of its pv)pl and at the same time secure a market for articles of their pioduetion that will compensate as an exchange. Hawaii ami Porto Rico have reached the limit of their productive capacity; Louisiana and Texas have been able to show but small progress in the industry even after the enjoyment for many years of the benefits of bounties and high pro tective tariffs, so that it would seem reasonable to assume that those States will not contribute materially to the increasing demand. The beet sugar in dustry has expanded but little during several years just passed and experience has demonstrated that the irrigated re gions of the West furnish the only prac ticable field for its growth while the area that is there available is so re stricted as to prosevbe a further rapid development There remain only the Philippine Islands of all its territory, to which the United States may look for sugar' to supply the needs of the people and at the same time, gain a trade in its own products to compensate for the purchase of that great staple. In 19)S the United States was oblifel to buy, in foreign markets, 1.64R.456 long tons of sugar. This was 202.798 tons more than was imported in 1S95 thirteen years before; yet in those thirteen years production in its own territory had increased l,11fi,3S2 tons which amount, together with 202,796 tons additional, had been absorbed by the actual .increase, consumption alone, This increase is going on steadily, but neither Hawaii. Porto Rico, Louisiana, and Texas or the sugar beet growing States of the West are able to increasa their quota of supply, and where th requirements of sugar by the people of the United States in 1908 exceeded production in United States territory by nearly seventeen hundred thousand tons, by 191S that excess of consump tion over production will hare grow to more Than three million, tons. Where will this enormous quantity of sugar come from? Will the United! States purchase the product of Europe, of Cuba, and of Java without receiving trade from those countries to recom pense, or will it develop tW industry in the Philippines its own territory and obtain its supply there, where for pverv -dollar if nays for products ot those islands it will sell a dollar's worth of its own? Manila Times. Asa hi & Co. H. MATSTJTO. Contractors and Builders House Paint ing, Paper Hangers Telephone 1420 - - 20S Beretania St. Woodlawn Manoa Valley Sec CHAS. S. DF5KY rhiings ectrical For Chns tma s Gifts s Gifts that reflect the true spirit of Christmas and that will be a pleasure and satisfaction 365 days in the year. TREE LDGUiTDNG OUTEDTS Substitute tiny electric lamps for candies in decorating the Christmas Tree. Safer, cleaner and much more convenient. Flowers, Nuts, Birds, etc. reproduced in tiny electric lamps make charming decorations. Art Glass omes Parlor and Mpbssi amps m Coffee Percolators Chafing Dishes Tea Kettles Curling Irons eaters Toaster g gs Smoothing irons Vibrators Cigar Lighters Heating Pads Bottle Warmers Washing Machines and Vacuum Cleaners i The Hawaiian Electric Co., Ltd. 1 ! - 1 4-