The Hawaiian gazette., 1880-05-05
The Currency Question.

Sr:-I have read with interest a letter in the
Commercial Adrsrtissr of this date from the pen
OF Mr.. Justice Judd, in which are advanced again
some of the ideas contained in previous letter
from the same gentleman, 10 which he now refers
as having been published so long ago as last May.
Mr.. Judd complains not unnaturally that the dis
cussion he anticipated from his earlier letter did
not arise-and he appears to attribute this (pos-
sibly again not unnaturally) to the state of con-
tented ignorance in which it is to be inferred the
merchants of Honolulu bask.
l should be very sorry if the pointed reference
to the Honolulu merchants and their advantages
of observation arose from any failure their part
to meet all fair discussions and therefore, endeav-
orlng to keep within those bounds of modesty in
expressing my opinions, which all correspondents,
mercantile and otherwise no doubt seek TO OBJ
serve, will venture to take up the glove which
has lain for Just twelve months untitled.
may state that year ago considered whether
should enter upon this discussion, and only
abstaIned then from desire TO avoid the neceSsi
ty of assuming position at direct variance with
the ideas advanced by Mr.. Judd.
will confne myself now to the letter which ap-
standard, practically silver is and adds no
thing but silver is now In circulation, and gold
commands premium of three per cent?
l claim that gold is our only standard; that
!" standard" and :" circulation utterly indie
pendent terms, and that gold is not at premium
of three per cent, or any other per cent, as any
one will find who attempts to self it.
Again it is stated that sell products
abroad for gold and get silver in return, and that
the result Is that the prices of everything We
buy and consume at the Islands are by 1215 cents
IN the dollar higher than gold were standard.
Now lam not theorist nor even philosopher
-unhappiy am only practical, and practically
all the above are fallaces 1t is true that sell
our products for gold, but we get gold in return;
and we buy what we like with the gold, whether
oats, cube sugar, or Mexican dollar. SO pieces
them from US here pay either In gold or silver
they like, and 1t makes no difference In the price
whether they pay gold or silver.
Another mistake is to claim that exchange is
high in consequence of gold being scarce. The
fact is that exchange is absurdly low, considering
our currency and when silver falls to the price to
which l think 1t may fall, exchange Will go up
with everything else 1t Will be then time enough
to blame the Bank and the shippers of sugar.
In his respect for theory and his disregard for
what Is practical, Mr.. Judd has mistaken theo-
retical evil for practical But sir this Is all
the difference between him and myself. L have on
former occasion endeayored to call attention to
an evil which Is coming, and Mr.. Judd writes as
though 1t had come. Unless the present Legisla-
ture shall take means to prevent, the time will
come when all the evils described by Mr. Judd will
be actual experience.
now come to the remedy that gentleman sug-
gests, compel the payment of all debts over SO
in gold.n This is the good old remedy of salts and
senna and an undoubted cure, provided the pa
tient lived through it which 1 think exceedingly
unlikely. A little child to-day was bemoaning the
hard fate OF the northern fishermen who have TO
go out In dangerous weather, and being told 1t
becauseitheiT children would have nothing to eat,
she quickly replied, why yes, they could have
sausages- A practical parent would have asked
where are the sausages? And would ask where
is the gold?
The drastic remedy proposed by Mr. Judd
would believe make bankrupt every business
man In the place-good, bad and indifferent. The
reason for this is that We have no mint-no foun-
tain from which to draw sum of $4,000 IN silver
could not command 81 coo In gold, for with such
law as Is now suggested, every possessor of gold
com would hold It as he would bread In famine.
Ihe TACT Is that Professor Sumner has probably
written tor an ordinary nation where the govern
mert supplies the circulating medium, and Mr..
Judd applies the theory to "a small nation where
there Is no money except what the humdrum prac-
tical supply. And It Is an essentially practi-
cal point of which Messrs. Sumner and Judd prob
ably have takenno account, that instead of having
i've times as much gold as silver In the country,
We have i've times much silver as gold Try with
that to pay all debt over SO In gold-and another
puzzle viii be added TO those which are distract
ing the world.
It is cruel to taunt Us by saying that the law of
1876 was concession to practical business men
of Honolulu" NY bslisf Is that it was sanctioned
If not suggested by the highest legal tribunal of
the land-ny ksocls5ge Is that 1t bitterly dis
approved by all the practical men with whom !
had any conversation
I am not surprised that the theories held by Mr..
Judd should obtain temporary support but l
scarcely thought they would nave Reid their
ground from May 8. 1873, to April, 1880, and ven
tire to think that had Mr.. Judd remained during
the interval amongst those whose fancied feelings
he describes he would have discovered not only
that those feelings were purely fancled, but that
he might without disadvantage qualify his theo-
ries by dilution with the ruder but practical
ideas of his mercantile friends
am reluctant to trespass your space with a
repetition of my own proposed remedy, but to show
that / am not SO contented with my ignorance as
not to aspire after better things will say that,
am firmly convinced of one great necessity; re-
garding which Mr. Judd and myself are entirely
agreed
We must adopt as the bulk of our currency
whatever Is the currency of San Francisco.
Our money must be available 10 pay our debts
abroad, or we shall speedily find our currency fall
and our prices rise, which It would be erroneous
to assume had already taken place. But, at the
same time, We must regulate the proportions Of
gold and silver, not only BY the unquesti0nable
superiority Of gold as a circulating medium. but
also by the available coins we have to deal with.