The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1874-08-15
A New Idea in Finance.

It is Of course impossible that among the myriaas
Of men who now suddenly develop the possession Of
theories and ideas concerning national finance, some
sound sense should not here and there became ap-
parent. Even our ~neighbor, the Wrapper, has a
little communications from persons
outside Its Office. One Of the theories which the
present excitement " bringing into notice was origi-
mated by Wallace p. Groom, Of The .NSic York
.MsTcastile Journal, and by him happily condensed
into the following proposition Ia e.r.
SIN the interchangeability Cat tho option OF the
holder) Of national paper money with Government
bonds bearing q fixed rate Of interest, there IL "a sab
tile principle that will regulate the movements Of
finance and commerce. ms accurately as the motion Of
the steam engine 10 regulated by its governor
Such paper money tokens would be much nearer per-
feet measures Of value than gold Or silver ever have
been or ever can be. The use Of gold or other mer-
chandise as money is "a barbarian unworthy Of the
age" .nn
This can scarcely be said TO be a new inspiration.
Mr.. Groom has been proclaiming ID for several years
past. He publishes not only the Mercantile Jour-
nal, but four or five frst-olass commercial papers,
and has been In the habit Of putting that proposition
in Italics beneath the titIe Of each 10 0haf posltions
however, il always looked IKE a c6nundrum, and
people, without trying 10 understand il. used 10
blame him for making his humorous department 30
prominent. and still not giving it more variety. He
went further. Every now and then be would stick
that formidable paragraph. as g paid advertisement,
into some daily and weekly papers but even there
II did not attract much attention, because folks used
to thing IL was some new dodge 20 advertise n gin
show. Determined that somebody should see IL who
would get an idea from il, IL Is affirmed that he got
into the way Of telegraphingi IL from time to tipe TO
various potentates aud dignitarea The CEar neyer
took any notice Of It. Gladstone turned Il over TO
an ecclesiastical council, under the hallucination
that il was q subtle argument in favor Of papal in
fallibility--a question whieh didn't concern him at
all. The Steele published the copy sent 20 the
Emperor Napoleon, and lots Of Parisians Of q Reoue-
trical turn Of mind tried @. work ~ ont by eqpatiaDssr
Bismarck threatened to have the MESSENGER hung
who SHOULD bring Il 10 him the third time. 0rAbG
when he got the second copy, only one day after the
frst-Groom having sent him by mistake the one
intended for Victor Emanusl-made an excuse that
one Of his colts was sick, and went right OF TO Long
Branch until q special officer could see Groom and
tell him TO quilt. So II went, all around, and still
Groom did not despair. Now, at last, his patient
persistence is beginning to bear fruit. Under the
spur Of the panic, people looking on all sides Tor.
some system which would promise sult1uniy from
such disaster in the future, got 20 work on Groom
theory, and q good many who have studied il out
affirm that there is o good deal Ia IL. -
Seriously speaking, there are some strong Argu-
ments to be adduced in favor Of Che plan, which be
thus more explicitly states
"a currency as nearly perfect as anything human
can well be, can most easily be secured through q
proper management of the Treasury Department..
not at the dietatiou OF the Secretary, but by the
RsoPas's operations In their individual capacity.
The process IL very simple. Let the Government
coin ; that ~. stamp or print money Of paper, the
promise being only that sucff money shall be q legal
tender for oil dues both public and private, and ex-
changeable at the option Of the holder with Govern
ment bonds bearing o fixed rate Of interest, say
three and sixty-fve one-hundredths per cent. per
cents q day on 81, 0O0-said bonds
being payable on demand, ~including interest, in the
same currency"
The details Of his scheme may be open to beneficial
change. but the primary principle upon which he
bases his reasoning certainly promises TO meet the
great want to which Mr.. Boutwell, In his New York
speech adTerted-that Of " finding a way Of increas-
ing the currency for moving the crops, and dimin-
ishing it at once when that work 10 done" Money
has no other use than as q measure Of value. EhethsS.
ia the form Of paper or gold. aud Mfr. Groom's sng~
Restions appear calculated to give us such q measure
as will be least huctuating and at the same time
most convenient. Whether its full benefits could be
without cooperative adoption Of q similar
system by the other civilized nations. is q large and
question, which may well be recommended
to the consideration Of our fnanciers and political
economists-San FGnefseo (CaL) Chronicle.
The French authorities wish ID distinctly. under :
stood that Rochefort is still on the list Of the exifHd
that his thoughts are not TO be permitted 10