The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1866-06-16
THE PACIFIC
Commercial Advertiser.
SATURDAY. JUNE l6.
" G.. money. Sill get money, boy,

The writer of the leading article in last week
Gazette, on paper currency, endeayOrs 70 be
funny at somebody's expense, but. like lis at
tempt TO seat the member from W]aialua, it fails
Of It's mark, and in the minds Of sound reason
ers must result in placing lis financial ability
in a less favorable position than it before held.
:. Such Missionaries as Calico, Fulton and Morse
were in the right, though legiJns of nobodies
predicted their ignominious flilure=,'' and there
fore the Gazette scriJbler must be right, though
lesions of = very young men, women and chill
dren, that write financial articles for the CO.
temporary press may talk to the contrary.
The silly arguments advanced by him. If such
they can be called, are more worthy of cery old
women and rcry old children, than Of any one
making pretensions to financial capability.
There was 4 time wien the Government organ
could command literary merit, bat thae day is
past. We quote u few lines as Il specimen Of
this simpleton's ideas:
lst. The issue Of these valid liabilities must have the same
s[s@ls'o 40 The d.m"1S H. nc Inls,f LJ - III x x,r'7 NJ NJ
more ANXIOUS u sell than Consumers to b1y. Sugar would tail
to five cents per ~p"und-m"uey to ten. eight or five per cent.
per annum. No one need he reminded taat / oney is as uer-
chantsb.- a commodity a. sugar or mol,sses. Hence We con-
slider hat the Issue Of honest paper money viii tighten the
price q money to consumers which includes all our producing
Community, and in this way viii reduce ue rate Of interest,
The paper money being at par value
Accepting the above as it reads, and granting
what it claims, !. G. : that money is as mer-
charitable 4 commodity as sugar or moIasses -
let US ask the question-In case Of the extra
ordinary crop of sugar. and the consequent fall
in value, trhO gets hurt? The producers, of
course. 81 in case the writer succeeds in get
ting authority from the three estates of the
realm to issue an extraordinary crop Of pl-
per money, and it becomes Il Hawaiian pro-
duct, and q" CHEAP like sugar and molasses,
uho ciH suffer? The producers, Of course, /. c.
the Hawaiian people.
The issue Of paper money may temporarily
cause a reduction in rates of interest, the sup
ply of money for Il time exceeding the demand,
and the rate may fall to " ten, eight or FIVE per
cent, : but this will as surely be followed by Il
depreciation in the value of the article itself, as
1t was with the sugar or molaSses. When this
takes place. the money lender will seek a better
market for his coin. Our steady rate Of interest
of ten to twelve per cent has for several years
been drawing capital from Europe and America,
and there i now invested 800. 600 here at
those rates, bat the moment the rate falls, and pa
per money becomes a fact. these investments Will
cease. AHforeigH coin uiH5e lrifhdralcH. for it is
a law of finance and trade that specie will flow
where the demand is greatest, and where the
rate Of interest is highest and most reliable.
Interest being higher in California, our specie
will 90 there. Whatever opinion the writer
may have of Hawaiian securities and paper
money, he Will find it a difficult task to make
capitalists " see it = as he sees it. With gold
and silver flowing out Of the country. and new
paper money issuing as the only substitute, its
value Will very soon dcprcciate 10 seventy. sixty
Or fifty cents. 1t must follow the same law as
the surplus of sugar, and fall in value. Why
not? Can any one doubt who viii suffer there
from?
No sane person will hold that Hawaiian paper
money Will retain Il better position in the money
markets of TIE world than American or Euro
pean securities, the former being worth to-day
O. cents and English ConS5ls s. cents to the
Yet this silly writer maintains that
issues will be lat par Value intimat-
ing that he can accomplish what such fnan-
as Chase and FcSsenden could not with
/ first class power to sustain them. Why
should We expect more from 4 pigmy in finance
under a power which a pleasure yacht defed?
rs yet, it is not urged that the new paper
ssue will be a legal tender. but that MUST soon
'pt4p' ~ up llo'A>AbH u lid-C III luc blll Nv
which Government will obtain its coin-all dues
payable IN paper, Consequently, what
Yer coin is obtained by Government to keep on
and as a specie reserve must be purchased.
his, in the long run, viii be expensive, and
he inevitable result, sooner or later, will be a
aw to Gaake paper currency n legal tender.
Simply rs i measure of self protection
nd relief from yexatious payments of cash in
times.
- Another benefit Of Government paper money : she con-
dtia-i1u Il the nation around the thr1ue-thc guarantee
hi-h = assurance q stability ami order. This prfrciple Is
eI ual-r-t7ri blth in Europe and America. = . r one q
r. be- tests " a mans faith and loyalty in his Government; -
h- r1csst- II D cares for the Government. h Will houorits
edged security Il be dis:rusts q. and would fin overiurn T..
. sirsEs - ~ power viii he hateful % him. and Ike the cop
=rh-als % America. he all d-cry 10 honesty u purpose aud
integrity % responsibility. \ paper currency made Il the
~ states one man "a : l. were 10 Keeps them -, and the r-a-
n ~ this = that TIE honor AID resources Of the American p-o-
e are pledged 10 the American people TO redeem a solemn
0u-s % pay
Neither England nor Americas debt was as
-med a a national policy 70 add strength to
e Government. The debt which England
Of was not deliberately assumed IN time
pace. but was forced upon her as the only
tentative TO carry on her foreign wars. The
OF the American debt Is Of too recent q
te Il need explanations. and already the latter
vernment Is devising ways and means to re-
ice it, at the earliest possible period, not deem
nH