The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1874-07-08


as its issue was not in excess Of thirty millions,
or at the rate Of about ten dollars per capita or
up to January, l77S, its maximum depreciation
was not in excess Of Eve per cent, as compared
with specie.
But all history shows that when q nation has
once embarked in a scheme of irredeemabls paper
money. it is extremely difficult, Il not wholly i'm
possible, TO resist the current and drift OF its in
eaenee and the experience Of Texas constitutes
/ no exception to this general rule. The Eve hun
bred thousand paper treasury dollars had done
good service they had doubtless been printed in
neat form as the law provided had proved
attractive 10 the masses, and had relieved the
most urgent financial necessities Of the republic.
Why should not the people of Texas have more
of so good thing? They accordingly, through
their legislative agents and representatives, de-
termined to have more and in the spring Of 1885,
a bill, bearing the familiar title Of An Aci 10 de-
me and limit he issue Of promiSSory notes"
was reported in the House OF Representatives
which authorized an additional issue Of one hun
dred and fifty Thousand dollars. The Senate,
/ however increased the existing amount 10 one
million, and as thus amended, the bill passed both
houses by large majOrities. Sturdy and honest
/ Sam Houston was then President, and when the
bill came up for his signature, he promptly vetoed
it, and gave his reasons therefor in message, so
full Of common-sense and sound principles that
/ there is nothing which the people Of the United
States could to-day read with greater profit and
/ instruction. Indeed, it would almost seem as If
/ he had before him. at the time OF writing, the
! present condition Of the United States, rather
/ than that OF his own people. He says, When
the Treasury motel currency was projected, both
the government and the country was without
resources. National existence and freedom had
been achieved but the struggle had left US desti-
tute and naked. There were no banksi There
was no money! Our lands could not be sold,
and the public credit was Of doubtful character!
To avoid the absolute dissolution of the govern
ment, it became necessary to resort to some ex-
pedient that might furnish temporary relief. This
could only be effected by creating currency that
should command some degree of credit abroad.
1T was hoped and believed, that if a small
issue Of g0rsHHsHt paper was made, with speci-
ic means Of redemption pointed out, which ap-
peared to be ample and well guaranteed, and the
government should eyinoe prudent and discreet
Judgment in its management, it would command
such articles in the market of the United States
as were Indispensable to the country.
The result has justified the expectation
But he continues, and his words are as full Of
truth now as then, TIE g5rauHsHf JriH ners'
Be able 5y az he issues il cln m1ts, 10 SATISFY
he demands Of prirats speculation and interest.
The vast issues Of all the banks in the United
States reference being here made to the coudi-
ton Of things in lS36-ls37), in their most ex-
tended condition, failed to attain this object
There has not probably beea in circulation at any
time, more than half million Of dollars. The .
present bill requires the secretary Of the treasury
to increase the Issue to a million. No time or
discretion is allowed to that officer. The circu-
lation Of the country is to be doubled IN as little
time as is required to issue the paper"
The objections Of the executive for the moment
prevailed; but another bill was passed week .
after which allowed the President to increase
the amount Of treasury notes to one million, fin
bis judgment the interests OF the country required
it; and at the same time it specifically appropri-
ated four hundred and fly thousand Of such
notes, or an amount nearly equal to the whole
existing issue, to the payment OF army, navy, and
civil Indebtedness. The barriers against uulimi.
ted initiation were thus indirectly removed, and
fsom this time there does not appear to have been
any effort to restrain further action in this direc-
ton. The first issues Of these notes, as already
stated, carried interest. The new issues were
without interest, and on account Of q red impress
sion on their back, were everywhere known as
b red-baeks = thus aIoriing another example in
Illustration Of the trile proyerb that, history
repeats itself"
As might have been xpected with the author
zation Of the new issues the notes began to de-
7reeiate and the depreciation increased With
ZACH additional emission. In all, paper money in
he form OF treasury notes to the nominal amount
# S4,7IT,939 was issued. 10 January, 1889.
hese notes were worth no more than forty cents
10 he dollar; in the spring Of 1889 they we're
worth thirty-seyen and half cents in 1871,
rom twelve TO fifteen cents and in 1872 they fell
o ten cents, to FIVE cents, to fo1r, TO three to
NO, and inally became utterly worthless In the
haracteristic language Of the times, it required,
efore the close Of President Lamar's administra-
ion, fifteen dollars in treasury notes to buy
hree glasses of brandy and water tsitJout sugar
% the treasury notes succeeded what were
ermed ezchequer bills :" bat they were com-
aratively few in number, and never passed to
ny extent into circulation. By this time"
lys Mr.. Gouge, there was little Circulating ne
Jun Of any kind in Texas bat this was no great
llamity, Is the people had but little left to sir-
late. The evils this system did we're immense,
I'd such as for which, even were it so disposed,
he government could afford no compensation to
be sufferers. They no doubt, however, Ike
Tiers in similar circumstances, attributed to the
ant Of circulating medium the evils they suf-
ned from want Of circulating capital" In all
ON first to last, the amount Of @promissory \
otes," audited drafts exchequer bills"
ouds, etc, issued By the Texan treasury, and
irving to greater or less extent as circulating
edium,' amounted to sl3,3Is.I45 or reckon
z the population at fifty thousand, more than two