The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1880-04-24

THE SUBJECT Of the currency % perhaps
more correctly speaking the circulating medium
in these Islands, is the topic of a carefully
written letter from the Hon. A. f. Judd, which Is
unayoidably omitted, but will appear in our next
The writer has evidently devoted attention and
study to tie subject, and in drawing conclusions
he speaks with confidence Of the soundness OF
his theories, and is somewhat inclined to discredit
the financial doctrines of practical merchants,
whose opinions are based upon experience and
not so much on the published works Of the imam
cial lights of the world. Our acquaintance edi-
torially with the supposed intrieacies and mys-
terious, hidden laws controlling the currency and
money markets Of a country, is not extensive,
and we trust that some Of our correspondents
who may be learned in that direction, will take
up and discuss the points made, or sought to be
made in the letter of Mr.. Justice Judd. We
shall probably lay ourselves open to the charge
Of being e old fogy," but we frankly admit a
leaning 70 the sentiment Of an old saying, to the
effect that the less the lawmakers have to do with
the currency the better. This, of course, with
certain very paIpable exceptions.
A fair proportion of gold coin in general circu-
lation, along with paper and silver, would be
agreeable But making all payments of over ten
dollars in amount imperatively payable in gold,
would, we think, be a harsh measure, and be so
regarded generally. In fact, to try to enforce it
would elicit a howl Of discomfort from Hawaii to
Kauai, and any such law would naturally and in
evitably fall into disuse.
The Gazette of this week has also taken up
the subject of a "a sound currency" Paper
money, which is properly hacked with collateral,
we believe to be a sound currency. The gold
coin now in the Government yaults-or a consi-
derable portion OF it's held, as we in our sim
plicity believe, as the basis of the Government
promises to pay, otherwise silver certificates. the
use of which so facilitates the handling of large
sums. If that coin, or its equivalent, were no
longer in the Treasury, how long would public
confidence be maintained in the Government pa
per money?
A good deal has been said about the importa-
ton here of silver coins from san Francisco at a
considerable profit to the importer, and the in
ference is apparently drawn that the practice is
an outrage on the public. We confess to being
so obtuse that we fail to see the difference be-
tween this and any other business operation by
which the operator can make a profit on his capt.
tai. If \ buys say a hundred tons of sugar in
DOnOlulus upOu huiCu uS IcdllLec oil dufdnCS III
San Francisco; takes the gold which is paid him
and buys Mexican dollars to bring to Honolulu
at 90 cents;-A has probably made a very good
speculation all round, having cleared SO much a
pound on his sugar and so much a
piece on his Mexican dollars. Now the transac-
ton is quite as legitimate as though A had in
vested his gold in dry goods instead of Mexican
dollars to sell again at a profit. 1t seems, how
ever. that some are apt to forget that this coin is
merchandise as much as cotton or sugar.
The Chilean and Peruvian soils and pesos, to
which allusion has been made, were really de-
based cSins, and our community was victimized
by their introduction. But it is not so with the
Mexican dollar that is now so plentifully in cir
~culation here. The U. S. authorities at San
Francisco rate this coin at less than their OWL
standard dollar, for the reason that it is a for.
eigner. Taking the American standard dollar a
100 cents, the Mexican is intrinsically worth 10l
6l-lO0ths. 1t is quoted in the market at from
9l1 to 92d cents. If, as pretty clearly seems tc
be the case, silver coin is really merchandise, or
the Importation of which a profit is made, why
should not the article be made to pay a custom
house duty like any other merchandise?