The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1856-09-18

WEDyEgD4Y. sFPT II I9s8

W~EDNESD4Y, SEPT. Ii, 1856.
EyCHANGE-Thers IS no subject more important to the
Commercial prosperity Of these Islands than that Of whaler's err
change, and in the absence Of anything worth noting IN trade
We vi make 2 few remarks OF It. We see It stated frequently
Il the San francisco papers that the current rate Of discount
demanded at this port for whalers bills Is 20 per cent. This i
entirely tacorrac.- 0ncs, about four years ago, when some 200
Vhaleships eentered inour harbor at once, exchange did force IL
sef down 70 that rate, against the most energetic efforts Of ship
Chambers, bat since the fail OF 1852, We believe +: has neyer been
o-er IS at this Port, while three-fo1ths Of the bills are drawn at
from par TO 10 per cent Discount. And this rate only commands
son October 70 Deceuoez in each year, while from Jan. 1ss to
October z:z CT 3-4shs q The year, therate Ct exchange rules from
par TO 2 per cent. premium for whlers Blk. The average rats
sf discount on vhaers bills for the pat Eozr ysa-7 b = per
cent.
These islands possess so nany advantages ar tbs rseru!slng
Of whaeshfps, that We have 10 s5aT q their being induced to
seek other ports from any other cause than the rate Of exchange.
the rate q exchange for bills drawn BY waalsrs at this port
cannos be kept within 10 per cent. discount, it must WORK against
me prosperIty OF the place. Some discount on their bills is ex-
RSetec y those shIpowners who La&e the trouble 70 look into the
facts. The whale-ships at these islands draw between Oct. Ist
and jan 1st not far from $4,000. And it canoo. be expected
that our ship-chandIers can keep that amoun+, o. even half Of il,
lying idle six months to meet the demand. When the feet
torether- cansiDT an i1Crsa ~ fcrca~5 EGva-G 80 t32z- - %
are forced to 60 into the street AID borrow monty far co N N
days, which in the fall season Invariably commands 3 and ezSo
4 per cent. a north. Or they wfI f.i parties who vii s,nnIg
the captains with money md tlke th ir b1s Of EXCHANGE ~ 80
these money holders generally demand a discount Of 10 =, 12t
either case the ship-chanaler seldom realizes . commission for his
trouble, while in all other ports 5 per cent. Is charged.
ch1po~ners have thought that coin sent from New Be1fyr1 or
san Francisco, mght remedy the evil but coin for traIe-p1r-
usP.p9c Is wOftn IN New b@tfori at least I per cent. q month,
ad IN p FRANCISCO 8 per cent. which, with the c9st Of freight.
Insurance, commissions and charges, brings it up to about 10 Der
cent, or the same rs the discount charged here. Hence the I
remedy has invariably failed to give r~eliefrand the discount is
submitted TO. 1t - true that IL san Francisco whaer's bills viii /
pass at par " eRcOTsea, bt the numerous other heavy charges
and annoyances submitted to by captains fully equal a discount
OF p per cent, hence they prefer this port, as being the cheaper
OF the two. Captains and slipOwneTs who have done business
at San Francisco and Honolulu have become satisfied that. not
withstandiDg the ordinary discount on their bills ut these islands,
the loss is more than made up in the superior advantages
afforded, and cheap supplies furnished to their ships and crep.
Our merchants however SHOULD make special efforts to prevent
the rate Of exchange becoming excessive. though when s high
rate does rule for a short time, it IS always from causes thev
could not foresee- The credit of the port, aud the interests Of its
demand that every effort should be made TO keep ex-
Change as near the par figure as possible.
Trade Of every kind has been very dull during the past week,
and we could only give nominal quotations. We look for some
improvement next week.