John M. Kapena to Comly, May 21, 1879
Mr. Kapena to Mr. Comly.
My Dear General: In your dispatch of the 15th instant you make a remark to the effect that your home producers were overweighted by competition with the Hawaiian producer.
In my public dispatch I have taken no notice of that remark, but trust at some future time, perhaps, I may be able to remove that impression from your own mind, if, indeed, upon reflection, you shall find that it has effected a lodgement there. I think I shall be able to show you that the production of rice in the Southeastern States has so fallen off as not to be able to supply the Eastern demand, and that the imports into the Pacific ports of the United States of Asiatic rice are so immense, that the product from the Atlantic States forms so inconsiderable an item that ours cannot be said to compete at all with the South Carolina and Georgia rice.
With regard to sugar this remark would apply very largely; but more especially I would call attention to the fact that supply of any particular article follows largely the course of business. I mean by that, that when there is no direct trade—as, for instance, there is none from New Orleans to San Francisco—it is impracticable to buy in the New Orleans market for the San Francisco market, and the oftener that an article passes through the hands of middle-men the more expensive it gets to the consumer; thus, if the New Orleans man ships to Boston or New York, his sugar is handled and stored there and then purchased by an agent of a San Francisco man, who pays transportation again by sea or land. Such a transaction does not follow the legitimate course of exchange of commodities. Hence, it is very difficult to change the customs general to traffic. The buyer buys of him who, in return, buys something from him, and it is difficult to establish new relations of business. I think I shall be able to show you that even though our sugar was not at all in the market on the Pacific coast, the Louisiana sugar would not be a competitor to that of Peru, Mauritius, or Manila.
I am conscious of not makiug myself very clear at present; but, as my main object is to make an impression upon your own mind personally, perhaps it will be sufficient if I should succeed in directing your thoughts and inquiries more especially to the subject.
I remain, my dear general, yours, very truly and respectfully,