The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1873-05-31
THE PACIFIC
Commercial OOrrtisrr
SATURDAY. MAY 81.
CERTIFICATES OF DEPOSIT. AGAIN.

The very fair and frank statement Of the
Minister Of Finance, 1.-THE substance Of which We
gave last Saturday. in relation 70 the recent issue
Of - Certificates Of Deposit Of the denOmina-
tions OF POS and los, leaves the responsibility
Of their further issue or continuance with the
public. II the public approves Of them, they
will remain in circulation If not. they will be
withdrawn. The Minister thus washes his hands
Of the whole matter. The question therefore Is
now fairly put % this community-Is it for the
best interests Of business, present and prospec-
tive, that the Finance Department continue to
issue Paper money in the shape that these certif-
Gates have now assumed?
The writer Of this was a member Of the Legs
lature by which the section in question (4T9)
was passed, and also OF the Joint committee Of
conference Of the two Houses which considered
and passed upon the Civil Code in which the
section Is foand, and be can confidently say, that
it was never considered or spoken Of. either in
committee or in the Legislature, as intended 10
provide for the issue Of certificates as 4 circulat-
ing medium. 1t vac not until after the lapse Of
nearly ten years from the date Of its enactment,
Or in 1868, that the &" happy thought was first
conceived by the then Ministry.
The advocates of the certificates with some
pIausibility declare, that they are a convenience
in business as media of exchange, and that, be-
ing backed by actual com deposits in the Treasury
there can be no risk in accepting and passing
them as currency, in lieu Of the heavy and cum
bersome silver coin.
Are we not, however, leaving a door open
whereby abuseA may hereafter enter? We have
every confidence in the integrity and carefulness
Of the present Minister of Finance and his col
leagues. But we read in Holy Writ that the
lsraelites got along famously in Egypt, until the
0minous verse occurs Now there arose up a
new king over Egypt, which knew not Joseph"
That the coin representing the certificates issued
is always in the Treasury vaults, was a statement
not borne out By fact during quite an interval of
the late Administration Recent Developments
warrant this assertion. Indeed it has been
claimed, with some cleverness of logic, that coll
venience in business was not promoted by receiv-
ing and locking out of circulation many thou
sands Of dollars the convenience was hest pro-
noted when both the coin and the certificates were
in circulation, as we then had double the amount
to operate with So we find that the expression,
For the purpose Of promoting convenience
in business may be construed with elasticity
proportional to the Individual moral sense. If
a Minister-and we wish to be understood now
as leaving the present incumbent Of the Treasury
Office out Of the question-desires to increase the
volume of our circulating medium "to promote
the convenience of business - during a pinch in
the money market, he can, with the exercise OF a
little sopbistry, cut the strings of money bags
and issue the coin deposit.
For the sake of present convenience, are We
not granting a dangerous license to the powers
that may be?