HAWAIIAN ISLANDS. 
 
married to a half-caste sister of the Crown Princess, another son is in 
the Honolulu post-office, and a daughter also is married to a resident 
of one of the islands. The death of the present Queen, therefore, would 
virtually place an English princess on the Hawaiian throne, and put 
in the hands of the ultra English the patronage and influence of the 
palace. 
In 6he existing state of things, with non-American intervention, 
these palace influences, skillfully handled, are nearly equal, frequently

superior, to the power of the Legislature. 'Add to this palace power, 
in British hands, the influence of an adventurous, impecunious, and 
irresponsible mob of "hoodlums," and there results a state of things

which would put it in the power of Canadian and ultra-British schem- 
ers, with a subsidy fund of $50,000, to secure control of the Legislature,

and by prompt and vigorous action secure Canadian and British fran- 
chises, privileges, and rights entirely legal, to get rid of which would

cause embarrassment and expense to the United States and her allies 
here. As is well known to the Department of State, Secretary Marcy, 
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 EXISTING 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 one an adequateidea

of the severe blow sugar raising here has received. The production of 
sugar being the main business of the islands, the great reduction of 
the market price has affected powerfully the entire affairs and condi- 
tion of the islands. I think it understating the 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 by the United States will rescue the property 
 
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