The Hawaiian gazette., 1874-07-08
A Utopian Scheme.

We are not about TO reply to the personal
slang INDUCED in by writer IN the last Adrerti
ser, under the caption of The Loan Bill" If we
did, we should be sorely tempted to say some
things which might not be pleasant to the reputed
author of the article and of the loan bill now be-
fore the Assembly. We chose to call the bill
Mr.. Kipis, though we well knew be did not pre-
pare it. Nor can it in any sense be called Min
isterial bill, as a correspondent well observes,
when the cabinet has with wise discretion, pre-
ferred to allow Others to speak before showing
its hand. In the shape that the bill has been
presented 20 the Legislature, it is tangled net
work, intended to supply all the real and imagi-
nary wants of the government for the next ten
years, even though no legislature should convene
during that time, and as such meets universal
! condemnation.
But there are two or three points in the article
referred to, which should be noticed. The writer
says: 1t can scarcely be said that interest
bearing treasury notes of $50 each are paper cur
reney." Admitting that they are redeemabe in
five years, (which by the way was not denied by
us,) it should be added that the rate of interest
is so low -four per cent? that it would not be an
object with any one to whom they were paid
either for services or government debt, to hold
them five years till due, aud the interest becomes
payable. Consequently they would have to
change hands, and would eventually return to the
treasury, not to be issued again, but to be re-
placed by new notes Of the same class. What,
then, can they be called but paper currency, and
though bearing four per cent interest, the latter
may, by express terms, be made only payable at
the end of five years, before which time every
oteissued may have been returned to the treasury
cancelled, and replaced by new issues of the same
class Though bearing interest, the treasury
would probably never be called on to pay it.
This may be perfectly legitimate; but, we say,
let the ignorant natives fully understand its
working.
Another point: The writer denies our state
ment that the $4,000 proposed to be issued
without interest a." is paper currency redeemable
only at the end Of twenty years." by stating that
they are redeemabe at any moment" Does
he suppose that the trading and mercantile public
Of Honolulu are fools that they cannot under
stand the operation of the bill as it reads?-when
it clearly says that they are to be redeemed by
reissue or By new issues, and when no provision
is made for coin payment till the end of twenty |
years" The writer's impotence is unparalleled,
when he asserts that such currency Is in no
sense a paper currency" If this does not satisfy
the public that the bill as presented is not hon
estly framed to benefit the Hawaiian people,
what can?
A loan bill-simple in its provisions, designed
to secure funds for the public service and to aid
our depressed industries, and entirely Invested of
all paper currency schemes-shall receive our cor
dial support. A loan at home, if it can be ef-
fected on any terms, should be preferred for if
we are compelled to 60 into European markets
and fail to obtain what we seek, the failure must
be disastrous one for our public credit, and will
embarrass US to an extent that few can now
realize,