The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1873-04-26
THE PACIFIC
Commercial OOrttlsrr.
SATURDAY. APRIL %
THE

wise attempt 70 regulate TIC currency Bt lEEt1-l-
ton. The experience Of all mercantile countries
has proved the %inutility, and, wor-e,-the folly.
of endcavOriDg by legal enacuncnts % strictly
control the movements Of the circulating medium
Like the tides Of the ocean. coin In It's obb and
-fow will follow natural laws. The leading prin-
eiple in modern political economy Is the doctrine
q that individual interest. if let alone, will do
more 10 produce wealth than ANY organized action
Of government, and it Is q generally sound doc
trine, with Of course the necessary and easily
recognized Limitations. The tendency with us
has perhaps been % call for Government inter-
ference and action in too many cases and on too
slight pretexts, and this matter Of the currency
IL one Ia point. Bot now however that Govern
nent has interiered, are not the mizchiegous re-
suits that appear Of such . nature that a simple
undoing or repeal Of what has been done will not
effect a cure Or in other words are we not ncces-
STATED, by the dsmoralized state Of our currency,
To- make = further effort to better il?
We said just now that the Government had
in~terlered in the currency Eorc correctly per-
Laps, we should say it was private parties who
inierfered, by invoking the aid Of the Legisla-
ture, uncOnstituJiJn2liy, 80 we believe, in the
passage of tine "Aet u regulate the currency"
Article Both Of the Constitution reads The
Ming coins money and regulates the currency by
law" The approval Of that Act by the King
made it his act, but he could have made the
regulation himself, under the Constitution, with
out consulting the Legislature. - that, AS we
hold, the King in Priyy Council may at any
time, If it shall be deemed advisable, abrogate
the Act in question, aud proceed To- make and
-. 49, w..- II e. 81. w.-.N.ss.- r. 81.
currency that may be found To- be c~xpcdient OF
necessary. That the Act las been Inischieyous
IN It's effects, will, we believe, he conceded now
by all who have given the subject any considcra-
ton and also that the mischief will still con-
tinue and increase 90 long as the obnoxious
measure is suffered to remain on the statute
book.
We have before spoken Of the ~fve-lranc piece
as peculiarly ours. 1t is brought here from
Tahiti by every vessel that arrives from that
quasi French colony, in quantities; the last ar
rival on the 10th OF the present month brought
seventeen packages Of speeie,-about ten thou
sand f~ve-franc pieces. These, put into circula-
ton here. represent $4,000 Of our currency,
although their intrinsic worth is only S9,726.
And as this community receives them for S274
ANAS NAAA N1Ny VI 81 VIZ AAhN INAA ANlAN
sents the amount to which the country is taxed
for the use Of ten thousand Of the convenient
and gOodIooking though cumbersome coin.
Spanish and Peruvian quarters, the former
much worn and deiaced, continue to stick to US,
for the simple reason that they pass for a great
deal mOze here than anywhere else. In san
Francisco they are received for just half their
valuation with us, that is, they pass for twelve
and-a-lnlf cents. Consequently. any passenger
coming here from there (were he posted on the
condition of our currency might easily make at
least the price of his passage by exchanging some
gold for q bag full of Spanish or Peruvian quar-
ters. The reals, also, which some of us persist
in recognizing at two for a quarter, pass on the
Coast for only ten cents. SoIoe five years ago
the attempt was made tn drive these old quarters
and reals-particularly the latter-out of circu-
lation, by a published rule of the Treasury De
the Hon. s. I'll. Phillips. 1t was dated on the
23d of September, 1867, and read as follows
'In order 10 secure the introduction of American
dimes and half dimes into circulation, all payments
ut the Treasury Of fractional parts of a dollar will
hereafter be made in coins of that denomination"
1t was understood to be the intention of the
Government at that time, to retain a. the old
Spanish quarters and reals that were received at
the Treasury, and send them out of the country
as old silver for recoinage. And the plan thus
adopted worked 50 we'll that those coins soon be-
came scarce in circulation, and the dime was
proIortionately abundant and in general use.
But whether owing to the necessities of the
Treasury, or for some other reason-or for no
reason at all-the old coins have been again paid
.ouf Eg,,, rho Trs, snrv vaults and tho smooth
Spanish quarter and real are almost as plentiful
a. ever. In this connection We must remember,
that tile American half dollar being intrinsIcally
worth only O.4S4O, the American quarters, dimes
and half dimes, are worth in the same proper
ton, gold standard.
The English shilling passes readily with us for
4 quarter of a dollar. The average shilling piece,
by trial at tine United States mint, has n gold
value of O.22I4, and four of them are therefore
intrinsically worth but 0.SS56. Twenty shil-
lings, if taken for a pound sterling, are intrinsic
ally worth but SAB.
The CHILEAN and Peruvian dollars, which Of
late have been seen in circulation here in COM
pany with the f~ve-franc piece, are worth a trlfe
than the latter, being rated at the mint ut
O.964S, while the former stands at 0.9726.
Thus it will be plainly apparent that this COM
munity is being regularly and systematically
feeced through the means of our currency, be
cause the false standard maintained, by enhanc-
ing the cost Of exchanges inevitably operates to
the disadvantage Of the consumer Of goods, who
is the one that is eventually made to pay the
difference.
Now the question arises, what is the remedy
for this state of things?-for it is high time that
a remedy was found and applied. The appear
ance Of our article of last week has directed pub
lie attention to this subject, with no little inter-
est, and various have been the schemes that are
suggested for the regulation of the currency and
it's being placed upon n sound basis. 1t is held
by some that were the "Act to regulate the cur
rnncv - renealed. as il is conceded the King in