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In Hawaii, the government became concerned that the subsequent United States Tariff Act of March 3, 1883, which lowered sugar tariffs imposed on product imported from all nations, had left them at a disadvantage. Article IV of the reciprocity treaty prevented Hawaii from making reciprocity treaties with other nations.
The treaty's most immediate result was an increase in new United States plantation owners. San Francisco sugar refiner Claus Spreckels became a prime investor in Hawaii's sugar industry. [101] Over the term of Kalākaua's reign, the treaty had a major effect on the kingdom's income. In 1874, Hawaii exported $1,839,620.27 in products.
Former plantation land was used by the conglomerates to build hotels and develop this tourist-based economy which has dominated the past 50 years of Hawaiian economics [citation needed]. Hawaiʻi's last working sugar mill, in Puunene, Maui , produced the final shipment of sugar from Hawaiʻi in December 2016.
Many of these foreigners bought Hawaiian land and invested in the lucrative Hawaiian sugar industry. In 1887, these men forced the then reigning king, Kalākaua, to sign the so-called Bayonet Constitution, which stripped him of much of his power, in turn creating a constitutional monarchy.
In 1871 Alexander managed the Haʻikū sugar mill which had been constructed in 1861 by Castle & Cooke. [8] The Reciprocity Treaty of 1875 removed tariffs on sugar exported to the United States. But to raise their production a steady supply of water was needed for the semi-arid dry forests of Pāʻia.
In 1875, the Reciprocity Treaty with the U.S. was forced through and removed all tariffs from cane sugar from Hawaii and contained a provision allowing the U.S. exclusive rights to maintain military bases in the islands. Protests by Native Hawaiians erupted immediately, taking eight days and 220 armed soldiers to put down.
U.S. tariffs on sugar meant a heavy drop in Hawaiian exports. The 20% to 42% tariffs between 1850 and 1870 meant the profit margin for sugar was greatly decreased for sugarcane plantations. However, the 1876 reciprocity treaty between the United States and Hawaii led to free-duty trade between the two.
The Hawaiian sugar strike of 1946 was one of the most expensive strikes in history. This strike involved almost all of the plantations in Hawaii, creating a cost of over $15 million in crop and production. This strike would become one of the leading causes for social change throughout the territory.