The Hawaiian gazette., 1879-06-04
Financial.

We clip the following from the San Fran
cisco Commercial Herald and Market Review
Of Nav 9Th The views of the writer of the
following article on the subject of English
finances, and the necessity Of calling halt in
the present state Of the money market in
Europe, are based upon sound principles, and
therefore are entitled to full credit by those
who would understand the real condition OF
the monetary affairs OF the world at this criti-
cal janciure in human affairs
EpghsA political economists are begiuurgto revise
the 6nSncial policy Of that eoantry. and are nov
sirsnaoasly bent ea restoring the double standard,
Tue worlds e0nDerrv Is transacted by means OF
money, and for universal AeeeptApee that money
ust consist Of gold And silver. Bank notes bills Oi
exchange. aud Ail other forns Of PAGER money nGst
have backing Vf the precious metals Eugland
iook advantage Of her position in 1916. when she
WAS The manufacturing sud creditor nation Of the
gohe, aud wben her Argoses did far the lions share
Of the worlds carrying trade. 20 adopt the sin gle
gold standard aud levy upon su other nations.
They mOnOpoliSe1 gold; and gave il auI again only
st 4 premium. Within the past ave years British
interests have discovered that continuance OF this
policy no longer profitable, but quite the reverse
The demands Of Germany for gold 20 establish the
single standard, and Of the United States assure
resanPtioo have e0nspred TO the prise Of that
metal 70 some 10 per cent. compared with silver
Germany bought her supplies With silrer, aud the
Untsd States With uerehAndise-;hs products OF ner
sod. The enormous e1ae.ioa Uf Gsrmany forced the
Bank Of France 10 suspend specie payments. The
mintage Of silver first limited in the double
standard countries. and then entirely suspended.
causing serious disturbance the existing 6usucial
situaiion The evils resulIng from that action have
spread far and wide. until Il is now kssnly felt by
EBgiani herself. Exchanges between countries
respectively holding the double and single stsnd1ri
have been sadly deranged. The Indian government
IS compelled 70 pay. Al present rates. prsUiam Of
about seventeen ilions cut Of its for the
current 10 purchase exchange for the eighty or
ninety millions Of obligations il will haVe 10 meet in
Erglsnd Il is now apparent that the stock Of Ger
silver has been 50 nearly depleted that il must
soon be absorbed by exports the East the require
meats Of Spain Tor coinage purposes. and the de-
uAnds 0t Russia. Austria ami Turkey, while the arts
are annually consuming additional large quantities.
In the meantime the supply Of silver has not aug
uen'ed but Is now really less ;hau the gold product
being $40 oe0. GOO silver 10 S95 600 900 Of gold The
Liverpool Chamber Of C0u meree has taken hold of
the question with determination and clear pereep-
tiou Of It's merits. Il is universally admitted thA.
the stock Of gold and silver in existence is rot suHi-
eisnt 20 transact the worlds commerce even now
and that aoy attempt on the part of Or more
commercial nations Of prePoadrant influence estAb
sh the single standard IS frauSht with injury to all
others, sni that its disadvantages will Gually react
upon itself Mercantile and banking paper. and
paper earrercy 10 certain proportions which repre-
sen; the limit Of safety. But these proportions are
now ont Of all bounds. The paper money now in use
is a. the rate Of one Thousand 70 one OF more Of
metallic currency and the di.pruportiou is growing
larger and larger Ia exact ratio to the iucreasei
trade and commerce Of the world. Manifessly. this
- no tiUe 70 ieu0uetEe silver Ani reduce the worlds
metallic money by half. The restoration ofsilyer
70 ~ full function Of money by England, Germany,
and other countries, i. merely question of time
Neither Of them afford 70 20 on in the ruiuous
course they have been pursuing, and they will all
finally agree with the Liverpool Chamber Of Com
ueree. that " l. Is desirable measures should be
De adopted Tor seegring an international agreement
oy which silver may be restored 10 its egitimate
share IA producing metallic currency sgsieen, for
The wants Qf the HurIi -