The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1882-10-28

EbRlsu anu AustTdlIdu sOfeEeiguS were FateO
at So by a Resolution of His Majesty in Privy
Council, of which public notice was given on
April Goth, 1876. This must mean that sover-
eigns were to be legal tender at the value of So
In the legal standard OF the kingdom at the tune.
4. E., the American hall dollar.
But the Act OF 1876, changed the standard of
this country from silver TO gold 1t also ex-
pressly repealed the Act Of 1872, and by no fair
reasoning can the resolution Of the Privy Council
of April 1876, be construed now to mean that
the sovereign is receivable as a legal tender to
five dollars in American gold. -
| incline greatly to the opinion that the Act
of 1876, worked a repeal OF all Resolutions of the
/ Pryy Council. based NJ on the silver standard
but whether this be SO or not, the rating Of gold
coins, other than those Of the United States. as
worth so many United States silver half dol
lars cannot be stretched to mean any more than
this. A. Z. JUDD,
Chief Justice, Presiding.
October Odd, 1882.
Following is the evidence -
j. Lazarus, sworn l am plaintiff in this case.
| know the defendant, DR.. Troussean. l had a
business transaction with him. | sold him a
piece OF real estate. the price was $4,000. Dr..
Trousseau gave me four drafts for $1,000 each,
payable at sight, on Messrs. A. F. Schaefer and
Co. This is one of the drafts. DRAFT shown
wituess.) 1t is No. IL. went to Schaefer and
Co., and had three drafts in my lett hand, and
had this one in my right hand, and presented it.
Mr.. HOting came to the counter, and | said
= I've got come drafts on this hIuse." Before |
could got any further, Mr. Hoting said I" Are
they from DR.. rousseau" | said 90 Yes" |
then SAID " l want to ask if 1 can get what the
law allows me- Mr.. Hoting said { What is
that?' | said "Seventy-fve per cent. in
United States gold" / could not go any further
when Mr.. Hoting said: DIR. Trousseau has no gold
on deposit here" and he turnsd and said, "a I'll
give you a check on the Bank" said That
means silver?' Hoting said Yes" l said ::
mo, | thank you,' and left. l had this paper
in my hand Showing draft). Mr.. Luning was
present, and could hear what was said. Two
days afterwards Mr.. Bickerton said at his Office
that the doctor considered he had paid me accord
ing to law. | said. - Good bye" Mr.. Tewkes-
bury was with me. He IT. was askedby me
TO write 1t down. | presented the draft on 29th
Augusn. l said nothing to Mr.. Bickerton about
United Statesgold. DR.. Trousseau was going to
make the drafts in one amount of $4,000. 1 said
email drafts will do so as to prevent trouble. as l
had had trouble at the Bank. Ny wife wished
to have small drafts. l thought | would try one
draft first. | held out the draft to Mr.. Hoting,
and said | wanted IS per cent. OF American gold.
| have had trouble about drafts. Mr.. Bickerton
did not say anything about the doctor having
paid me according to law.
j. w. Luning, sworn, said | am a bill col
lector. | know the parties to this suit. | went
to Sthaeier's with Lazarus about the end Of
August. Lazarus asked me to go with him, as
hC u W ElIcCil eOL1C OliS vi h0(Cos duO luOuSDl
he would have some difficulty. He showed me
four pieces oil paper, which | did not read. This
took place in my Office. He had three pieces in
one hand. and said - am going to present
that" They went and saw Hoting. and Lazarus
said = | have got some drafts here Hoting
said Yes, from DR.. Trousseau. we are ad-
vised OF them" Lazarus said {" Can | have
what the law allows mel" Hoting said
- What's that?' Lazarus said - Seventy-ive
per cent. IN gold" Hoting said " No, Trous-
senu has no gold deposited here" Turning to
check-book. Hoting said d" Ill give you a check
on Bank" Lazarus said - Does that mean
silver ?" There was Il broad counter betw ixt
Lazarus and Hoting. Three drafts were held by
Lazarus in one hand, and be held the other draft
open in his right band, resting on the counter.
and Holting. at his desk. could see it.
In cross-exLminatIon he said: Ornithorynchus
is my title. 1t means a beast with a bill. Lazarus
wanted ne to go with him, as he anticipated
trouble. He said nothing more after he had Of
fered the check. | did not read it, but | was
congnizant of it.
j. Tewkesbury said: 1 went to Bickerton's
office with Lazarus in the latter part of August.
Bickerton said: DIR. Irousseau considers he has
paid you according to law. That is oil | heard.
Don t remember Biekerton saying, DIR. Trousseau,
has given you consideration according to the
deed"
Plaintiff rests.
j. Hoting, sworn, said: Remember Lazarus
OA-ho ~ OASS" ~ AN1 IONAN SAoAAo Oo 1SH Z L
said: From DIR. Trousseau, We are advised Of
it," Lazarus said, will you give me American
gold according to law, or words to that effect.
said: w have no gold, aud DR.. rousseau
has not deposited any with US. / will give you
a check on the bank" Lazarus asked if that
meant silver, and | replied, Il suppose So" He
said: mo, thank you. and went of. He did not
cay after this, mo, l want the coin"
R. T. Bickerton, sworn, said: DIR. Trousseau
instructed me to prepare a deed in consideration
r 1T nnn -
they acknowledged it and returned with deed.
Lazarus handed me deed and | gave him Tour
drafts, of which this Is one. Drafts were sent to
me by DIR. Trousseau, in an envelope.
g. TrOusseau, sworn, said: Bought land from
Lazarus and he wanted $50 more. 1t was set
tied at 81 600, and | said: ''Biekerton will draw
deed. There was some question about the pos
session of part of the land which had been let. /
will take possession with the tenants. | sat down
at my desk and began to draw a draft for "a 900.
The stump is still here. Lazarus said: 81 would
rather have four drafts of : $1,000 each. | don't
want any trouble. My wife wants me to have it
in small drafts. l am satisfied with them" |
have nothing more to do with him." | said.
''You take these drafts and that's all | give you
Defendant rests.
After a lengthy address by counsel, the Chief
Justice summed up as follows:
Mouey is the circulating medium for exchange
and values. Anything can be used as money.
but the experience of ages has shown that
gold and silver are the best metals to be used as
such, on account of their comparative scarcity
aud their durability as well as their value in the
arts, and because many articles useful 10 man
kind are best made from thcse metals.
10 this Kingdom, by the Act of 1872, the
American half-dollar (silver) was made the
standard of value and legal tender for all debts
In 1876 this was changed to gold by the Legis-
lature. By this law from and after March l.
1877, the gold coins of the United States were
made the standard and value of legal tender.
United States silver is the legal tender for the
payment of all debts of $50 or less.
In my opinion this is the reason why United
States cold has been driven from circulation. As
the majority ofmoney transactions are in sums of
$50 or less, and as United States silver dollars,
pass at a nominal value, less than their intrinsic
value in United States gold, by q well-known
law of currency the silver has driven the gold
from circulation. Whether this be SO or not
now, By common consent, the law is not enforced
which makes rs per cent. of gold legal tender
where the payment is for $1,000. and silver is
practically the circulating medium.