The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1869-01-13

INT AcC u llfC lLOl<N lNlNQaNAs WIN " e
paper currency, greatly deprcciatcd below
the yalae Of eUin. This fact Is made appsr-
ent when we consider that the bond holders
receive irOm the Treasury upon each dollar
tbey own in Government securities. six per
cent in gold, which Is equal 10 nine per cent
in currency, and that The bonds are then con-
verted into capital for The National banks,
upon which those institutions issue their cir
culstion, bearing SIX per cent interest, sud
Government and the States, and are thereby
enhanced two per cent in the hands Of the
holder. Wethus have en- aggregate Of seven
teen per cent. which may be realized upon
each dollar BY the owners of Government
securities. A system that produces such ~
suits Is justly regarded as fsvoring few, at
the expense Of many, and bad led to the fur
Their inquiry, whether our bond holders, in
view Of the large profits which they have en-
joyed. would themselves be sverse - the set
Element Of our debts upon = plan which
wOaid yield them q fair remuneration, snd AZ
the same time be just 10 the taxpayers of
the nation Our national credit should be
saeredly Observed, hut in making provision
for our creditors, We shoRld not forget what
i due 10 the masses of the people. II may
be assumed that the holders of our securities
have alrcIdy received upon their bonds a lar
ger amount than their original investment,
measured by q gold standard. Upon this
statement of facts, il would seem but Just
and equitable that the six per cent Interest
now paid ~ tbs Government should be ap-
piled 10 the reduction Of the principal in
semi-annnal insialiments, which, in sixteen
years and eight months, would iquidate the
entire rational debt. Six per sent in gold
would. at present rates, be eQusl to nifse per
cent In currency, and equivalent to the
payment OF the debt one and half times 10
4 fraction less than seventeen years. This,
in connection with the other advantages de-
rived frum their investment, would afford to
the public creditors lair and liberal cOmpen-
sation for the use of their capital, aud with
this they should be satisfied The lessons OF
the past admouish the lender that il is not
well to be over anxious in eSaetiug from the
borrower a rigid compliance. Should an ar
rlngement be made for the payment of the
Indebtedness Of the Government In the man-
ner suggested, our nation will rapidly rceov-
er lis wouted prosperity. Its interests re
quire that some measure should be taken To
release the large amount OF capital invested
ia the Government IL is not now merely
but in taxation Il actually con
suules $4,000. go, which would otherwise
BE- used by our enterprisiug people in addi-
ton 10 tue wealth Of the country. Our pe0-
pie need encouragement in their efforts to
recover from the effects of the rebellion, aud
OF iDjudicious legislation. aud il should DC
the wish Of the Government to stimulate
them by the prospect of an carly release from
the burdens which impede their prosperity
II We cannot take the burdens from their
shoulders, We should at least manifest viii
liuguess 10 help them TO bear it.
TIE CURRENCY OF THE COUNTRY.
IN referring to the condition of the circu-
lating medium, stall merely reiferate sub
stantially what ! stated in my last annual
which relates 10 that subject.
The proportion which the currency of any
country should bear TO the whole value o
the annual produce circulated By its means,
5 question upon which political economists
have not agreed. nor can il be controlled BY
egislatiOn, but must De left 20 the laws which
everywhere regulate commerce and trade
This circulating medium will flow 10 those
points where il is liz greatest demand. The
aw of supply and demand IS As unceasing as
hat which regulates the tides OF the ocean;
md, indeed, currency, like the tide, has its I
sbhS and lows throughout the commercial I
world At the beginning Of the rebellion, 4
he hauk-nOtc circulation amounted to rot 4
much more than 500, ooo. eco; now, the cir 1
.ulatiOn Of the National bank-uotes, and 1
hose known as legal tenders, Is nearly STOO.- 4
90, While it Is argued by some that this .
mount should be increased, Others contend 4
hat decided reduction is essential to the F.
hese adverse opinions, It may be well TO as
certain the proportional value Of our paper
ssues when compared with metSiie or con-
-ertable currency For this purpose let US
INQUIRE how much gold and silver could be
purchased by the S700 zoe coo Of paper money
low in circulation. Probably not more than
lalf the amount Of the latter-showinz that.
Eheu cur paper currency is compared with
;old and silver, its commercial value i
'ressed TO $3.50 eco zoe. This striking fact
makes It the duty Of the Government, as early
s may be consistent Eith the principles Of
0und political economy, to take such meas
irss a. will enable the holders Of its notes and
hose Of the National Banks, 70 convert them
Without loss into specie or is equivalent.
eduetiou Of eur paper circulating medium
nay not follow. This, however. would depend
n the law 0f demand and supply; though it
hould be borne in mind that BY making legal
euder and bauk-u0tes convertible into coin or
= equivalent their present specie value in the
.and= Of the holders, would be enhanced -
er cent Legislation for the accomplishment
t a result so desirable, is demanded BY the
igbest conscientious. The Constitution
0uJemplates that the eculating medium Of
be country shall be uniform in quality and
alue- At the time Of the formation Of that
the country had just emerged
ron the revolution, and vas suffering from
he effects Of Z worthless paper currency. The
ages 0f that period were anxious to protect
heir posterity from the evils which they them
elves had experienced hence, in providing a
irculating medium. they conferred upon Con-
Tess the power TO coin money and regulate
be valve thereof. at the same time prohibiting
be States fAm making anything bat gold and
liver tender in the payment Of debts The
condition of our currency i in
trikins contrast With that uhieh-vas original
2 designed Our circulation now embraces
irst, the notes of the National Banks, which
re made receivable for all dues to the Gov
nment, excepting imports, and BY all eredi-
OTIS excepting in payment Of interest upon
e bonds. aud the securities them selves Sec-
I'd, legal tender notes, issHed by the United
rafes, and which the law requires should be
eceiyed a well IN payment Of al debts be-
Ween citi1eus- Third, gold and silver coin.
y the operation Of oar present system Of
nanees, however, the metallic currency, when
elected, Is received only for one class Of Gov
creditors, Who, holding the bonds sem
nnually receive their interest in eoia from the
istionsl Treasury. There il no reason which
ill BE accepted as satisfactory by the people,
Thy those who defend us Hpon tie land, and
roteet Us on the sea the pensioners Gpsn the
rztituds Of the nation. bearing the sears and
rounds received While in it service; the pub
e servants IN the various departments of the
iovsrnment; the farmer, who supplies the
oldiers Of the army, and the sailors Of the
ayy; the artisan. who tolls in the nations
orEshSps. and the mechanics and Iaborsrs
Tho build its edifees aud construct It's forts
nd vessels Of war, should. IN payment Of
heir just and hard earned dues, receive depre-
lated paper, while another elass Of their eSun-
rymeu- no more deserving. are paid in coin.
,aaal and exact justice requires that all the
reiifors Of the Government should be paid in
currency possessing a uniform yAEHe- This