The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1876-09-09

ca5frney @itouf aay PFet~ne- "a sccursey 1
.bjuk ] ras- estimate he
Cad cnrs-7cr
az ~ ss1 Pc:-.: e.. 800
T5NsN
O. T.. ssl> and pesos, dc. .ae treasury holds
soon: $50, oco. and IS probably he nost ecooonl-
. cal plan all D. 10 export them, / assume ths, the
shole sill De exchanged for gold. making IN iAs;
case cur
Gola cons sl:e.eS
SN0sr. lso0o0
9:00o
or about equal proportions.
The desirabiliiy Of iarrn7 a gold STANDARD il oil
bur universally admitted. but The problem Is how
10 gt 10 a gold standard With such sn exhibit as
INC above. sud yet without deprecisting any Of our
present cgrrencs.
on great sdsantage We have, namely. that al
present our silver Is not deprecated, simply be.
, eause We do not need 10 export it and practically
IL purchasing power l. as great as that of gold;
and this Is a piece Of pure good fortune which hardly
any other country with . present silver standard
enjoys.
II appears 10 ne then that in order to remain ~
well ~ s. we are, we must prevent any further
additions to our stock of silver, and endeavor 70
absorb what we have (Which is greatly out of pro-
inv ~ SSfif iiANt 1NBAFNARN'A-
I therefore suggested that from 3 gwen date, =
few months hence, we should adopt a gold stand
ard. but that silver should be legal tender for %
per cent. nf all payments over say dfty dollars.
BY this means the $4,000 gold would carry with
il S57 900 in silver. leaving still 1928, 900 10 be
used in small payments and for plantation nae. A
good deal of money will doubtless be brough,
here. and necessarily in gold, and as the require
ments for plantations, &c. will be much increased.
The glut Of silver will be gradually reduced.
| am aware that ,his scheme will be objectiona-
bic. but | venture To think il IS the least objection
able way Of dealing with very objectionable cir
cumstances, and it avoids a very important error
that of separating gold from silver in their circu-
lation. Il is not with any desire TO criticize but
simply from = desire that We may all do what IL
best for as all. that / refer to what seems to me a
most undesirable element in the act now before
the House. II provides that gold shall be the
standard. and that silver which forms more than
half our currency, shall be constantly aucmating.
In fact it forces It's depreciation. Under my
scheme a man may hoard cheques as long as he
likes, feeling assured that they will always bring
him legal tender for all payments, but under the
act the confusion will be endless-he may have to
meet a note of 81, 900. and perhaps has
. plantation orders Of $50 ssch:....s IS old. . sea silver
2 cheques............f5o $500 esch.... 300 goid.... 500 silver
$3.50 gold 500
But his note for $1,000 can only be paid by $1,000
gold and $500 silver, therefore he must hoard or
buy at a premium the extra gold. Now under the
% per cent. scheme he could pay $500 gold and
$500 silver, but then all his orders and cheques
would have brought the same ratio. Again q ship
per of sugar takes $1,000 exchange TO the bank, re-
c~eiving $3.50 gold and $3.50 silver. lie has to
pay
2 notes Of $1,000 each. say.........$lSoo sOId. {. 500 silver
8 orders Of $500 each, say........ $50 gold. 100 silver
S2o7o $3.50
lie has paid out all his silver and has $20S0 gold
left, which he will hoard for duties or sell to some
unlucky man who must have gold or fail, whereas
by the % per cent. scheme the gold and silver would
come and go together.
The result will be that silver being at q discount,
who lock up will lock up gold, and az emergen-
ces may always arise, many who never do 20 now
have to lock up; and those who control exchange
and sell it in large amounts, will have an immense
advantage over others. / believe that even If gold
and silver accounts could be legally kept at the bank
(which under this act 1 do not think ~possible), there
would be 9 constant drain Of gold from the bank to
pay large cheques and exchange, in return for which
The bank would receive a larger proportion Of silver
because their deposits and sales Of exchange would
be in small amounts. But TO add TO our difficulties,
all duties are to be paid in gold. Where is the gold
10 come from ? And where lie it TO go tof The gov
coins no money, and provides none, and
yet insists that whilst it pays out money in same
as other people, all its more important
are to be In gold only. I am not learned
n the law, but if once legal tender is declared as in
sections 9 and 3, I cannot see how the Minister of
,-s1 - a L.
paid in anything other than legal tender. or how he
IAN refuse to accept the coins which are declared by
his act to be lawful payment Of all debts. However,
that I am mistaken in this, fear "corn-
,rs in gold" will be Of weekly occurrence and the
.reasury will always be the prominent operator"
There are many evils inseparable from the green
system, but the system was 8 necessity. Under
his act we seem to be importing the evils without
he necessity.
But, sir, there is one clause that lies before me,
md yet I can scarcely believe in its reality.
Section 8 provides that from the date of the pss-
of this act, all duties are TO be payable in gold !
The rest of the act goes into effect next March, so
hat we have ii proposed that whilst no one can in
list on the government or any one else for the next
our or five months paying one dollar Of any indebt-
'dness in gold (because silver is legal tender to any
Imount) yet the government can make any one Of
Is bankrupt who does not provide gold.
Why sir, there is not $4,000, gold, In the coun-
Fy outside the treasury. And l fear that any at
emPt to make special gold payments or to reduce
he legal tender value Of silver below rs per cent.
viii have most disastrous effects on the commercial
Of the country. The most important fact
We have to note is the large amount Of silver We
here. We cannot change the value Of gold,
md I feel that we dare not change the value Of sill
er. At present maintain that We have not q
currency, but unless I am much Eistsk-