The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1873-11-12
The CURRENCY Questfon

Is again the subject OF discussion and it appears
that the proposition to change the value Of the
sovereign twenty francs, and twenty roubles. meets
opposition, on the ground that it tends to estab,
lsh an inflated currency in the country, and that
such an act must necessarily injure the commerce
of the port, reduce the receipts of the govern
ment and disturb its credit. What has been
proposed is simply the restoration of the value oil
certain gold coins 10 what they possessed here
ten years ago, when the country was overrun with
these coins, which it was desired to expel from
circulation on account of the abundance of then
and the wish TO have only American coins.
The rates to which they were deprecated caused
them to be withdrawn, and become an article OF
trade. Owing TO the increase in the production
and supply of silver in America gold has become
more valuable abroad, and our islands have been
literally drained OF gold coins and 10 their stead
we have paper money, termed silver certif-
Gates There is nothing to prevent the con-
tinued drain Of American half dollars, till our
only remaining currency is the five franc pieces,
South American soils. quarters and silver certi6-
Gates. 1t was to remedy this state of things that
the proposition to restore the value Of certain
gold coins to what they possessed formerly. was
made. No injury to trade or to the public exche-
quer attended the circulation of soyereigns 10
1860. nor can any be reasonably anticipated in
1874.
1t is argued that we would pay large profit
TO the importer of these gold coins, which the
business of the country cannot afford. This is
not so. The value Of the sovereign in America,
as Fixed by the last Congress, is S4.s6. Add to
this the freight on the coins insurance, interest,
with perhaps other charges, making in all nearly
if not quite two per cent, and we find the cost
of the sovereign as laid down here by the impor-
ter, TO be 1896, or very nearly the value of ten
half dollars. So then. whatever may be said to
the contrary. the profit which any importer Of
sovereigns might derive will be but triHing, and
nothing compared with the advantages of u con-
venient medium Of circulation. What is wanted
are gold coins which cannot readily ue exported.
We have had the French silver FIVE franc piece
in circulation for forty yesrs and no injurious re-
suit has arisen from it, although it circulates at
three or four per cent above its actual value.
Most Of our merchants and business men are
satisfied that if the drain Of species continues,
land it lie inevitable so long the balance Of trade
continues against us) we shall soon either have to
obtain the gold coins named in the way proposed,
or resort to further issue Of paper money, either
secured with a coin basis as now. or issued sim
ply on the faith Of the government and people.
The increase Of paper money will be very unde.
sirable, but it will soon be demanded by the ext
geuciss of trade, and it is only as the simplest
available means Of relief that the proposition to
introduce sOvereigus has been advocated, which.
so far as is now apparent, can result in no harm.
and may prove 10 be just what the necessities Of
trade call for.