Mr. Stevens to Mr. Blaine.

[Confidential.]
No. 20.]

Sir: The archives of the Department of State are conclusive evidences of the interest which the Government of the United States has long taken in the affairs of the Hawaiian Islands. That these territories are of great importance to the future development and defense of American commerce in the Pacific, hardly will be questioned. To secure the influence over them which the United States so long has considered its right and duty to maintain, some decisive steps must soon be taken which, in the past, were not of pressing necessity. For more than half a century the American Missionary Board, with the agencies and influences in its control, has served as a strong fortress to the United States in these islands. The large financial contributions, amounting to nearly one million of dollars, which that organization obtained through innumerable channels of American benevolence and religious zeal, and the large number of educated and resolute agents which it sent to these islands, secured an influence over the ruling chiefs and native population which held them as firmly to America as a permanent military force could have done.

But a change of facts and circumstances in recent years is bringing near the time when this well-sustained power must be strongly reinforced. In a large and increasing degree other influences have come in to counterbalance and relatively to decrease the American missionary influences. The native population of sixty years ago is reduced to [Page 316] less than a third it then was, and is continually growing less. The chiefs, who were formerly the supports of monarchy and mainly controlled the affairs of the islands and who for many years were largely influenced by the teachings of the American pastors, no longer exist. The grave has closed over them forever. The native pastors, who now hold the places once occupied by the American missionaries, have not the strong American sympathies of their predecessors, and if they had they possess not the strength of character to hold their parishes by any effective influence relative to affairs of government. Of the ninety thousand population now on these islands less than one-half is of the original Hawaiian race, and but a small proportion of the lands and other property are in their possession.

The following is believed to be very nearly the present make-up of the population: Natives, 37,500; half-cast, 5,000; Chinese, 19,000; American, 3,000; Hawaiian, born of foreign parents, 3,000; Britons, 1,250; Portuguese, 12,000; Germans, 1,500; French, 150; Japanese, 8,400; Norwegian, 250; other foreigners, 500; Polynesian, 500; total, 92,050. It is not necessary for me to elaborate the argument to show that a population thus composed has not the inherent tendencies and unity of force to hold them to American interests. It is doubtless true that more than one-half of the property of the country to-day is possessed by those of American birth or of American blood. But wealthy men of other nationalities are becoming numerous here, and the number of adventurers and of those of cosmopolitan ideas, caring little for any country, is always considerable in lands peopled as this now is, with commercial and political circumstances as they are.

To thwart and hold in check the increasing influences here hostile to the United States some effective measures are absolutely necessary. In view of the facts as they existed for half a century a drifting policy was safe enough. Rapidly changing circumstances demand a prompt abandonment of the drifting policy of the past. Left to themselves, the prevailing logical force of things would ultimately drive out the best American elements and swamp these islands with adverse influences. To hold an assimilating control of the largely preponderating Asiatic and native Hawaiian population there must be maintained an American policy, strong, conservative, but not costly, if adopted in time. The longer this is postponed the more difficult and expensive it will be in the end to secure the desired result. The laying of an ocean cable from San Francisco to Honolulu, with the aid of the United States Government, and the expenditure of a sufficient sum of money to make a fair commencement of the improvement of Pearl Harbor would be of immediate benefit to American commerce, would be a salutary notice to foreign powers of our intentions in these waters, and operate as a powerful incentive to retain and to increase an enterprising and influential American population in these islands.

As monarchy and feudalism, formally so strong here, have no longer any solid foundation, and government has become constitutional, and largely by the ballot, the moral pressure of the United States is absolutely necessary to enable the Americans and other intelligent citizens of the country to withstand the Asiatic and other influences adverse to Christian civilization, its laws, and agencies. Fairly governed and retained under auspicious American influences, these islands are capable of supporting a population of 250,000, possessing financial resources ample to pay all the taxes necessary for the support of their institutions and the ordinary means of defense. The vital question, one that can not be possibly ignored or held in abeyance, is: Shall Asiatic or [Page 317] American civilization ultimately prevail here? The near future is to show conclusively that only the strong pressure and continual vigilance of the United States can enable American men and American ideas to hold ascendency here and make these islands as prosperous and valuable to American commerce and to American marine supremacy in the North Pacific as the isles of the Mediterranean have been and are to its adjacent nations. The data in possession of the Department of the Navy, and doubtless well known to the Department of State, show how valuable Pearl Harbor easily can be made as a commercial marine and naval station, and the great and pressing importance of an ocean cable, under American control, is so plainly obvious as to require no elaborate argument for its clearer demonstration.

The most careful study of the situation here leads me to urge a limited appropriation for Pearl harbor, financial aid to the ocean cable, and such modification of the existing treaty as shall increase the American population here and permanently strengthen the bonds between Hawaii and the United States. The sooner this is done the less difficult and expensive it will be in the end. It is certain that time and events will not wait for us, and that a drifting and waiting policy is now the most hazardous.

I have, etc.,

John L. Stevens.

From the Minister of Finance I have just received the inclosed report of the Collector of Customs, a single advance type-written copy, showing the increased commercial importance of these islands to the United States.

His Excellency S. M. Damon,
His Majesty’s Minister of Finance:

Sir: In conformity with the provisions of section 553 of the Civil Code, I have the honor to submit to your excellency the annual report of the business of this bureau for the year ended December 31, 1889.

I beg to call your excellency’s attention to the reports with each table, which, I think, will give more information than in former years. Your attention in particular is called to tables numbers 1, 3, 5, 6, 7, 8, 9, 11, 12, 13, 14, 15, and 16.

The exports have increased from $4,875,694 in 1880 to $13,874,341 in 1889, and the imports from $3,673,268 in 1880 to $5,438,790 in 1889.

The trade with the United States has increased 5.78 per cent during the past year, and is now 79.10 per cent of our entire imports.

Our exports, virtually, all go to the United States. The exports of our principal product, sugar, has increased over the exports of previous years, as follows: 1889, 242,165,825 pounds, against—

Year. Quantity. Increase.
Pounds. Pounds.
1877 25,575,965 216,589,879
1878 38,431,458 203,734,377
1879 49,020,972 193,144,863
1880 63,584,471 178,581,364
1881 93,789,483 148,376,352
1882 114,177,938 127,987,897
1883 114,107,155 128,058,680
1884 142,654,923 99,510,912
1885 171,350,314 70,815,521
1886 216,223,615 25,942,220
1887 212,763,647 29,402,188
1888 235,888,346 6,277,489

An average increase of 119,035,144 pounds per year.

Rice has fallen off from the output of 1888, 3,208,704 pounds; a large amount of this shortage is due to the number of Japanese laborers having been introduced. The true amount of rice produced in this Kingdom can never be ascertained from the records of this Bureau for the reason that this article is used to a greater or less, extent by our own population.

[Page 318]

Wool has decreased to 241,925 pounds. The export of this article reached its highest point in 1882 and its lowest in 1887.

Bananas have increased in the number of bunches exported from 1876 to the present year, when it reached 105,630 bunches.

Tallow has decreased from the amount exported last year.

Molasses has increased slightly.

The manifested value of sugar for the past year was 5.45 cents per pound.

It will be seen by reference to the table that the United States received practically all of our domestic products.

Japan imported 92 head of Hawaiian cattle.

China did not import anything. In former years a large amount of betel leaves and tallow have been exported there.

Our import trade with the various countries of the world has increased to a considerable extent. The aggregate of our imports for 1888 was $4,540,887, while for 1889, $5,438,790, an increase of $897,903. Reviewing our trade with each country, we find that we imported from the United States 79.10 per cent, an increase of 5.78 per cent over the previous year, or more particularly an increase of $976,108 from that country alone; from Great Britian 12.38 per cent, a falling off from the previous year; from China and Japan 3.68 per cent, also a slight falling off; and from other countries a similar falling off. The relation which our imports from the United States of free by treaty and goods paying duty bear to each other is as 4 of the former to 1 of the latter. The class of goods which compose the duty-paying class are to a great extent of foreign origin, and American beer and wines.

The United States received the bulk of our trade, both in exports and imports; Great Britain received 3.45 per cent, and China and Japan 1.10 per cent.

The trade of the United States with this Kingdom has increased 1.61 per cent over that of 1888.

The total imports and exports have increased from $16,248,486 in 1888, to $19,313,132 for the period just ended.

The increase in the imports and exports carried by American vessels in 1868 was 66.19 per cent, while in 1889 it carried 72.34 per cent. The percentage carried by vessels of other nations has decreased in each case.

The imports of specie for the year just ended amounted to $1,146,925, and $1,207,555 for the previous year, showing a slight falling off.

The exports of gold increased from $23,935 for 1888, to $40,477 for 1889.

The value of our foreign and domestic goods exported amounted to $13,874,341. The value of foreign goods exported amounted to $64,270, it being the smallest amount exported for ten years past.

The value of our domestic exports has increased $2,178,635 over the previous year, and it represents a production of $172.62½ per capita for the entire population, basing the calculation on the census returns of 1884.

The vessels engaged in carrying our domestic products were divided among principally four nationalities. American, guaged by the value, carried 80.22 per cent against 73.09 per cent in 1888; Hawaiian, 15.20 per cent against 21.72 per cent for the previous year, the falling off being occasioned by one of the regular steamers being laid up for repairs and an American vessel taking its place.

The number of Hawaiian-regi tered vessels has decreased in number as well as in tonnage. This has been caused through the sale abroad of the bark Kalakaua and the brigantine Allie Rowe, the breaking up in port of the bark Lilian and the brigantine Hazard, and the losing of the bark James A. King and the schooner Jennie Walker by being wrecked.

The additions to the list were the steamers Hawaii and Akamai; the bark Andrew Welch and Footing Suey, and the brigantine Geo. H. Douglass, and the sloop Keaolani, all vessels of the first class.

We have in our merchant marine five vessels built of iron, three being steamers, and among the coasters one iron steamer. The number of men employed by all vessels, both merchantmen and coasters, is 850, in the capacity of sailors.

The number and tonnage of vessels entered and cleared at all ports, Hawaiian Islands, remain about the same as in the previous year. The total number entered has increased, while the tonnage has decreased, showing that vessels of smaller tonnage have been employed.

Vessels under the American flag had a total tonnage of 129,095, and in 1888, 113,459; British, 19,139, and in 1888, 29,519; Hawaiian, 54,813, against 64,607; German, 4,197, against 5,820 for the previous year.

There was an excess of departure of passengers and tourists of 53 during the year, as against 499, excess if departures in 1888; while there was an excess of arrivals of immigrants of 1,358, which indicates that there was a gain to the population of this Kingdom of 1,305. The Chinese population has decreased by 1,059 persons; 32 Chinese females have arrived, and 43 have departed.

[Page 319]

The consumption of spirits in this kingdom varies very little from that of 1888, save in the withdrawals of beer, which has increased from 40,000 gallons to 61,000 gallons for the year just ended. The consumption of light wine remains about the same. European wines, which have been always of a high test, have been all along displaced by California wines; but during the past year the experiment was tried of importing a quantity of a lower test, corresponding to its California rival. The result is a small increase in its consumption.

There has been an unexpected increase in the receipts for duties in some articles which showed a decrease in 1888, while others have unexpectedly fallen off, but the total amount shows a slight increase over the previous year. It largely exceeds our estimate for the biennial period, which was estimated at $500,000 per year.

Marine railway.—I would draw your excellency’s attention to the increasing importance of the marine railway, and since the arrival of the warship Nipsic from Samoa was placed on the railway for extensive repairs many foreign vessels have taken advantage of it through the experience gained from that vessel.

The number of coasters and merchantmen placed thereon during 1889 was 70, of which number 33 were steamers, the largest being 1,070 tons and the smallest 18 tons; and the other 37 were sailing vessels, the largest being 1,088 tons and the smallest 6 tons. The demands made upon the statistical department of this Bureau has largely increased during the past year, and is likely to increase with the increase of our commerce and as we become better known abroad. It is on account of these ever increasing demands, and increasing commerce that our report is later than usual.

I have the honor to be, sir, your excellency’s most obedient servant,

A. S. Cleghorn,
Collector-General of Customs.