The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1879-08-13
Not Satisfied.

The Advertiser does not seem to be salts
fed with the suggestions thrown out last week
in our commercial letter. We are not surprised
at this, because we did not expect it to agree
with us on this, as it never has on any other
occasion, that we remember. But then, the
Advertiser should remember that whilst it
differs with the GAZETTE on the subject of
what is the best mode of relief at the present
moment, for the pressure of hard times and
scarcity of money, it must not console itself
on the fact that, by the use of epithets, exple-
tives and coarse adjectives, it is effecting any
other purpose than exhibiting its own want of
good breeding. Denunciation is not argument
and the use of epithets is but vulgarity, which
always argues want of sense. The Adver-
tiser evidently does not understand the propo-
sition it attempts to find fault with 1t asks :
''If two dollars of paper for one of coin in the
Treasury, why not three or four and so on ad
Llbitun. The relief afforded by the imitation
like the one proposed would be but temporary,
and the process would have TO be repeated to
the end of the chapter, which could only be
disaster to the Treasury, as we'll as to those
temporarily relieved"
In answer we say, that the Advertiser does
not understand the proposition as we put it,
because, by the very fact of limiting the issue
of paper in the proportion of two dollars in
paper for one of coin in the Treasury, the is
sue of paper would be limited to the amount
of coin actually in the Treasury, and could
not go beyond that limit, which would make
it perfectly safe as a post note issue, which
could not be presented for redemption till the
/ 81 Co. ,sal I.
pired; and that very fact, would give the
Government time to make preparations to meet
the notes as they become due, without embar-
rassment to the Government, or the possibility
of failure to redeem the notes. The difference
being in favor of easing the money market by
the use of the credit of the Government, which
for the time being, had stepped in to afford
relief to the community suffering financial
pressure consists in the fact that a post note
issue instead of an issue of paper. payable on
demand, as il now is, would give double ad-
vantage to the Government, and at the same
time keep within its control the whole paper is
sue of the Kingdom The imitation of two dollars
in paper for one of coin in the Treasury to re-
deem it, which the Advertiser characterizes as
"bngbear, and an insane project, rag baby of
the United States, &C., &c - would really not
amount to an imitation at ALL The usual pro-
pOTllOu Vi paper ISSUE, III ali COuulTlce, Will
coin, has been as three to one, and when
properly guarded, hasiworked well and afford
ed sound, convenient circulating medium for
the wants of business. The apprehensions of
the Advertiser therefore on this point are i'm
aginary, not real, because not founded on fact
ard the experiences of other nations When a
paper issne is based upon dollar for dollar,
that is, dollar of coin for every dollar rep
resentative of paper, there is no advantage to
either the, Government that issues it, or the
people who use the paper as medium of ex-
change, apart from the mere fact, of the por-
liability of the paper over coin, Which does not
amount to compensation for the use Of the
money.
To illustrate this point fully let us ask, of
what advantage is it 10 this or any other Gov
erument to hold in its Treasury coin, dollar
for dollar, for the paper issue in circulation
We answer that there is positive loss instead
of gain. The coin lies idle in the Treasury,
bringing no interest or equivalent, while The
paper issued to the amount in circulation per-
forms the simple Office of exchange; but When
there is an issue in the proportion of two of
paper for one of coin, there comes in the differ
ence of the interest on the one half of the
capital; which is an important factor, OF more
correctly speaking, a positive gain to the Gov
ernment os 80 much as the interest will be.
This is a proposition so plain that it needs no
argument to prove its soundness.
We are somewhat surprised at the position