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Blount Report: Affairs in Hawaii

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194	HAWAIIAN  ISLANDS.
with the approval of President Pierce and Cabinet, authorized the ne-
gotiation of a treaty for making these islands a Territory of the United 
States.   Commissioner Gregg was authorized to facilitate the negotia- 
tion by the promise to pay $100,000 for pensions to the King, chiefs, 
and other official persons, on condition that the sovereignty and prop- 
erty of the islands should be transferred to the United States.
Commissioner Gregg exceeded his instructions by stipulating to pay, 
in all, three times the sum which Secretary Marcy named in his instruc- 
tions. These terms were deemed onerous and unacceptable by the 
Washington Department of State, and consequently the treaty was 
dropped, after all negotiations had been completed, the King finally 
being induced by his Scotch minister of foreign affairs not to sign it, 
though the King and cabinet had previously given their support to 
the spirit and terms of the negotiations and the conclusions reached. 
The embarrassments and objections that then existed as to the number 
of the royal princes and chiefs, the small number of the American pop- 
ulation, the want of ready communication with the United States, and 
distance from Washington, now no longer stand in the way of making 
Hawaii a well governed and prosperous United States Territory. The 
, reasons for annexation in 1854 were certainly much less adequate and 
pressing than they are now.
THE EXISITING BUSINESS STATUS.    
It is well to consider the existing state of things here resulting from 
the change in the United States sugar tariff. Only personal observa- 
tion and a careful investigation of the facts can give an adequate idea 
of the severe blow sugar raised here has received. The production of 
sugar being the main business of the islands, the great reduction of 
the market price has effected powerfully the entire affairs and condi- 
tion of the islands. I think it underestimating, truth to express the 
opinion that the loss to the owners of the sugar plantations and mills, 
etc., and the consequent depreciation of other property by the passage 
of the McKinley bill, wise and beneficial as that measure is proving to 
be for the vast interests of the United States, has not been less than 
$12,000,000, a large portion of this loss falling on Americans residing 
here and in California. Unless some positive measures of relief be 
granted, the depreciation of sugar property here will continue to go 
on. Wise, bold action of the United States will rescue the property 
holders from great loss, give the islands a government which will put 
an end to a worse than useless expenditure of a large proportion of 
the revenues of the country, using them for the building of roads and 
bridges, thus helping to develop the natural resources of the islands, 
aiding to diversify the industries, and to increase the number of the 
responsible citizens.
WHAT  SHOULD BE DONE?
One of two courses seem to me absolutely necessary to be followed, 
either bold and vigorous measures for annexation or a "customs 
union," an ocean cable from the Californian coast to Honolulu, Pearl 
Harbor perpetually ceded to the United States, with an implied but 
not necessarily stipulated American protectorate over the islands. I 
believe the former to be the better, that which will prove much the 
more advantageous to the islands, and the cheapest and least embar- 
rassing in the end for the United States. If it was wise for the United

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