The Hawaiian gazette., 1883-12-26
The Currency Que.tion-souna Logic

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the country.
The Currency Question Sound Logic.
The currency question is again brought proml-
nently before the public and under very remark
able circumstances, Circumstances which impose
upon the whole community the necessity that they
should now If ever, decide what they are going
The saturday Pres last week had some concise,
well written and cautiously prepared articles on
the subject, and which seemed fairly to represent
the views OF those, who believe that it is practic
able, not only to maintain the standard of our
currency up to that of the United States, but who
also believe, that We can keep in circulation suf
fcient silver coin for the wants of commerce of
the same intrinsic value as that of United States
silver, and that keep United States gold
coin in circulation at the same time at its par
value.
If understand the views of the Saturday Pres
Alright and | shall be glad to be corrected if do
not. all that necessary 10 effect thls-as / am
ready 10 admit-very desirable object, is TO alter
the present law as to reduce the amount of sil-
yer coin which shall be legal tender TO five dollars
and for the merchants TO agree among themselves
10 enforce the law il their payments among each
other, but which they have SO far found inconyef-
lent to do, as the law stands, and by mutual con-
sent have given up the attempt.
II seems very doubtful whether the alteration OF
the law would make II any easier 20 enforce gold
payments amongst each other, or even if the large
merchants did that, whether We should have 4
true United States gold circulation. Il is true that
the merchants and bankers would go to the eX-
peuse of importing more gold for their own uur-
poses, but having gone to that expense would they
let il 60 out freely amongst the community and
without charging q premium on it, knowing as
they do. that It would be picked up and sent 20
China Just about as fast as IN the ordinary course
of business 1t would come ingo circulation:
il is known that during the last eighteen months
about one million dollars worth of English SOW
ereiCns have been brought into this Kingdom and
put into circulation; an amount not far under the
whole of our estimated silver circulation. Where
are those soyereigns now 1t is believed that al
least three-fOurths Of them have gone TO China,
where they are worth considerably more than s.
of any Of our current silver coins.
II has been estimated that the Chinese send
every year from this 10 China about one million
dollars in gold coin, and, if consider that this
would only be about dollar week saved from
the earnings of 5000 Chinese, 1t seens reasona-
bic estimate. This would readily account for the
disappearance from circulation of the million dol
lars worth of sOvereigns as well of all the stray
L. :. gold coins which they could pick up at par
and what they could buy at premium. Bat [. S.
gold coins are worth two and one-half ler cent.
more 10 them in China than English sorereicns
50 that there can be no manner of doubt lhat the
Chinese would collect and send away IN each year
an amount of L. ). gold coin equal 10 the whole
amount which would be necessary for the gold
circulation of the country, if it would stay here.
This means that, with gold coin in general cir
culation, in order TO keep up the proper amount,
somebody would have to keep continually import
ing gold coin at a considerable expense in order
that somebody else should send it away at par.
have looked carefully over the article in the
Saturday Press. on The Gold Standard to find
out who is TO keep constantly bringing this god.
1t SAYS: But where is there planters agent
who-under the status qHO-is willing to fore
20 his profit on the exchange he sells 10 the bank,
or To private buyersln In other words, it Is not
a benefit TO merchants and planters agents 10 i'm
port gold at expense TO themselves and let 1t GO
out amongst the community who will Immediately
use it to beat down their profits exchange by
dino fta
TO do SO.
The SliHJqlay Pres sees all this as clear as the
day And now, what remedy does he pro 3osef
IhisIis the proposed remedy-fur he Immediately
goes on to say: Fortunately for this community
there several interested persons willing 10 fore
90 this profit for the common good-hoping to
prosper more by the general prosperity than by the
existing methods in which their profits are az the
expense of the plantations they represent and of
the general public
1t Is hardly worth bringing forward arguments
TO show that commercial or financial system,
which relies for its upon any class of mer
camille men whatever, hoping 20 prosper more by
the general prosperity than by making a large
direct and tangible pro1t, is unsound. The truth
is, the article reasoned along very nicely to the
point where all stick, that is, who is to 60 TO
the expense of continually bringing gold to put
into general circulation at less than it costs them,
70 be Immediately picked up and sent ont of the
country. is il not unreasonable to rely for the
| successful working of financial system, or the
broad views and liberal spirit of the financial men
who are TO work it, and who are expected, by the
schemes, to be going 10 a direct expense in order
| to curtail their own profits on exchange
In other words, whatever the merchants and
| bankers might agree amongst themselves about
gold payments, they would take good care not to
| let the gold they imported go into circulation,
| except at a'premium fully equal to what 1t would
cost them TO get 1t back again.
But this is not having United States gold cir
culatiOn. II would be little more than the con-
dition that we are in to-day. There is plenty of
| United States gold here now locked up, and any
one can get it by paying premium on it.
must take exception to a position inCeniOusly
assumed by the Saturday Pres rather than directly
statedt hat whilst IT it for the gold standard those
who believe it is inpracticable to keep American
gold coins circulating here at less thal it costs
import them, that Is, at less than they worth
| are agHiHsf the gold standard.
Nothing of the kind. What Is the matter with
| the gold standard to-day: We told. and it Is
so far correct, that the rate of exchange is good
criterion of how much the currency is deprecated
As matter of fact that rate or the premium on
exchange has for years, and up this hour ranged
round the figures it would cost to send United
States gold to San Francisco, and bring 1t back
again. Our currency has not deprecated, because
| IN the hrst place. our laws declare when we talk
about dollar or trade for dollar, in important
/ amounts we mean dollar IN United States gold
and We have legal tender Act limiting the amount
that may be paid in silver. We have further i'm
posed duty on all silver coins other than Hawai-
/ ian or United States. The silver in the country
| before the importation by the Governmentl was
the circulation of the country, and there seemed
1 to be no probability whatever, If the government
had done what the Law contempaies. BY calling in
all silver, other than United States OF Hawaiian.
of our being swamped with silver in the natural
| course OF trade and depreciating the currency,
Whether our silver currency Is 10 be deprecated
OF not IN the future seems to depend on the power
/ that the government may possess TO break either
the letter the spirit of the coinage and currency
| Acts. IL seems impossible, when they realize the
position that they are IN, that they will persist in
| the course whlch-as Tar as al present appears-
| they seem TO be taking. do not pretend TO touch
| upon the legal points of the question, bat. how
can the Minister OF Finance go into court and
claim that the government arc receiving S50Ooo0
and possibly million in silver coin equal IN value
to United States gold coin, when it is notorious
| that the very act of forcing such an amount of
the Hawaiian silver coin into circulation, over ana
above the silver coin which Is now IN the country.
and without taking steps to call in an equivalent
| amount, must inevitably depreciate its value. No
| government could commit such q serious and
damaging blunder and live. There are sensible
| men IN the Cabinet and they will, trust take
| steps to prevent, not 20 much the arrangement of
| the gold standard the depreciation IN yslle OF
their own coin: for, they force into cir
cIlatinn more silver coin than the commerce of
the country requires, 80 surely will their own
coinage only pass ut discount; for the merchants
and traders viii then, IN selfdefence have to in
ssf on payments in United States gold com accord
ing to law, which they will keep locked up and
| only receive the Hayaiian coin and other silver
coins equal OF inferior to it, at a discount
The whole business Community would in such a
case rally round the gold standard, and let the
| Hawaiian coinage deprecated by the act OF the
Government, pass foE what it may be worth. How
ever, for the present they seem to have deposited
/ the Hawaiian coin in patent spring lock safe
and accidentally left the key inside
Ii the Government, when they set the silver,
withdraw from circulation As much silEer coin as
they introduce, all will be right, and shall hear
no more of enforcing gold payments but If they
force an excess of half million or a million Of
silver into circulation, the merchants will insist
on gold payment or its equivalent, but they viii
find II more impossible than ever to keep United
S.zies eod in circulation so for double eagle
when It will be worth at least So in the depre-
eiated currency, and they won't attempt IL 50