The Hawaiian gazette., 1873-04-23
WEDNESDAY, APRIL %.
The Currency Question.

In its last issue, the AdrerfiSer very oppor-
tunely opens the discussion OF our currency, now
consisting almost exclusively Of silver coins and
silre- certificates These latter purport TO repre-
sent silver deposits in the treasury vault They
vary from fifty to Eve hundred dollars IN value,
and the holder can at any time demand the coin
IN lieu Of the certificate Gold coin has almost
entirely disappeared from circulation. Our CO.
Temporary attributes this condition of the cur
rency to the passage Of the Act to regulate the
currency. BY the last Legislature, and fears that
the next may attempt to legalIze the issue of pa
per money.
Some three or four years ago, in conversation
with the then Minister of Finance, we expressed
an opinion that the issue of these silver certi6-
Gates would result in the loss to Us of a part of
our coin currency, and hat coin would be remov-
ed which could be most readily transported. Our
prediction has proved correct, and today the
Kingdom is practically without gold circulating
medium.
The working Of this currency problem is easily
explained Let Us suppose the amount Of coin
in circulation ten years ago, when silver and gold
were both abundant, to have been four hundred
thousand dollars. half in silver and half in gold.
Whatever the amount was, it sufhced for the trade
Of the islands. The issue Of City thousand
dollars more or lessl in silver certificates re-
quired the locking up of an equal amount of sill
yer ia the treasury. The currency might then be
stated as follows Sl5O.OOO in silver; 100000 in
gold; and $4,000 in certificates. The whole
amount Of our circulation at this time is prOba-
Big not over $500 900.
There has been constant demand for coin for
shipment abroad, varying according to the rate
and scarcity Of exchange. Silver, being bulky
aud dffcult to transport, is not taken so long as
gold Is obtainabIe. Our certificates, being IN
known abroad, are not available for remittance.
The coin most available is gold, of which there
has been constant drain to every foreign coun-
Try. To some extent it has been replaced by sill
yer brought in every vessel The result is We
ere reduced to silver coin and certificates of silver
LAtierly, IN the absence of gold for export, there
has been demand for silver, and American half
dollars being worth most, are shipped away.
These, in t0rn. are replaced by Eve franc pieces
and South American dollar coins, which, not be-
ing circulating medium in California, Australia,
or China, remain here, giving US permanent and
convenient dollar coin.
Nov the question for our business men is
can ne DOT provide gold eurrencyi 1t is Of no
use to talk Of American gold coins. because being
more valuable in California and China than here,
fwhere We place them at par with Eve franc silver
money!, they siH not remain If imported We
must End coin that viii stay here. The gold
coin most available Cor orr use is the soreeig'i-
By fixing its val1e at Ehst it formerly was-fve
doUnrs-it viii remain. when once introduced, for
the same reason that The Eve franc piece does
because worth more here than abroad. Both
coins are Of about the same relative standard, i.e
Eve French dollars equal one sovereign
Ii seems to Us that this is the best way 70 pro
vide = gold circulating medium The advantages
are. that natives az well rs Others are familiar
with It, and that the supply is abundant in the
coEouies. II would, no doubt, displacs all Amer
ican gold coins, but still it would supply OIL