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Story August 20, 1889

The Pacific Commercial Advertiser

Honolulu, Honolulu County, Hawaii

What is this article about?

Editorial on economic lessons from California's overproduction of grapes and citrus, urging the Hawaiian Islands to diversify agriculture beyond sugar and rice by encouraging minor industries like coffee, ginger, and fruits to stabilize prosperity and reduce market fluctuations.

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OCR Quality

95% Excellent

Full Text

MINOR INDUSTRIES.

Our neighbors in Central and Southern California, are now feeling the lack of a market for some of their staple productions—grapes and citrus fruits—and the questions are asked among themselves despairingly: How shall we dispose of these products? Can China be induced to purchase our raisins? Would it not be better to establish large brandy distilleries, etc.? The root of the trouble is, that our California friends have confined their efforts too much in raising staple productions, and have over-supplied the markets with one or two products, much to their own disadvantage.

All countries are liable to err in this way; because where soil and climate are especially favorable for certain products that may be scarce and dear when the industry begins, the whole or greater part of the attention of agriculturists is given to those particular products, without considering eventualities. There may be great consumption of certain products; but however great that may be it has a limit, and when that limit is reached the sacrifice begins. Overproduction has in every country the invariable tendency toward stagnation; and it cannot be otherwise than inferred from these facts that the productions of a country should be as varied as the conditions will warrant, so that in the event of one kind of crop or product failing, other products can be realized upon to prevent a panic.

From these facts and deductions, a lesson may be drawn that would be serviceable to this kingdom. Valuable as the present staple productions of the Islands are, and much as extended areas of sugar and rice cultivation are commendable; yet our whole trust should not be confined to those products. Every reasonable encouragement should be given to minor industries that would help to swell the exports, and in time might become valuable "standbys" under periods of depression in our staples. We cannot be blind to the fact that the progress and prosperity of the Islands is, at present, measured by the rise and fall of the sugar market, and that general business throughout the group fluctuates from the same cause.

With more minor industries; more varieties of products, and larger quantities of each, progress would be steadier, there would be fewer risks in general business, and trade would have a healthier and more regular tone.

Among other agricultural and horticultural industries that require and should receive special encouragement, during their earlier stages of development, are: coffee, ginger, tobacco, vanilla, spices, citrus and other suitable fruits, etc.; and also industries connected with the preparation and preservation of these products for the purposes of export.

New industries in all countries require and generally receive special encouragements, while in the experimental stages; and, in some countries, government help is given until the assisted industries can stand unaided. These aids are given in the way of government subsidies, bonuses, land grants, special immunities from taxation, franchises, etc. Of course, these helps have to be given judiciously, and each application for assistance has to be carefully weighed and publicly discussed. Hole and corner assistance is wrong in principle and hurtful in practice; but under constitutional government it is seldom that these slips are made, owing to critical legislative procedure.

What sub-type of article is it?

Editorial Economic Advice

What themes does it cover?

Misfortune Triumph

What keywords are associated?

Overproduction Agricultural Diversification Minor Industries Hawaii Economy Sugar Market Citrus Fruits Government Subsidies

Where did it happen?

Central And Southern California; Hawaiian Islands

Story Details

Location

Central And Southern California; Hawaiian Islands

Story Details

Discusses California's overproduction crisis in grapes and citrus, advising Hawaii to diversify beyond sugar and rice by promoting minor industries like coffee and ginger, with government support to ensure economic stability.

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