The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1884-11-05
The GnldLnu.

EDrroR GAzETTE-Sir: We are within month Of
the date when silver coin ceases to be legal tender
for any sums over ten dollars; and already think
much of the anxiety that felt lest there should
not be gold enough in the country is passing away
The first good effect of the 'fCfold Law is even
now being realized, in the fall Of exchange which
next month, will be at one or one and a half per
cent premium, never to rise again. During the
discussion which preceded the passage of the Act
some OF Us laid very great stress upon the necessity
for the Government guaranteeing the redemption
of the silver certificates in gold; and 90 so far as
to say that the Act would have been almost inop-
erative without that provision. There appears,
however, to be some uncertainty as to the working
of this redemption, and it is important that il
should be well understood.
II Is stated that in some instances silver certi-
Gates are being collected and held back for the
purpose of presenting them at the Treasury early
in December, and 50 drawing out the gold This
can only be done, with one of two motives-either
to Iniure the government. or to create profit to
the holder. Ny object is to prevent this course by
endeavoring to show that neither of the objects
described is likely to result from it. but that serious
Inconvenience may be caused 10 the community by
the cancelling Of large portion of certificates.
and the substitution Of gold for actual circuIa-
| ton.
Speaking roughly will assume that the silver
certificates over ten dollars EACH amount 10 $780,
600; against which the Treasury will hold. Deem
Der LIST, say:
SSld Coin: SCOOP
Silver 1 DIN sj0OOO
Now If a combination could be made to present
100000 Of certificates for redemption, unques-
tionably the Treasury would find difficulty in re-
deeming the last $4,000; but without the conniy-
ance Of the bank and nil the capitalists here, no
| such an amount could be collecled-and to present
$4,000, $4,000, or 100000 would simply have
no effect on the stability of the Government, but
would have very bad effect on the reputation Of
| any one who attempted in such reckless manner
| to iniure the Government.
Secondly, it is clear that there could be no profit
4 49, --ag.. A.
premium, either for circulation or remittance II
Mr.. holds $4,000 in certificates on the LIST OF
December, he can do everything with them that he
can do with the gold. He can buy exchange at the
bank. at the price it would cost him to send his
gold to San Francisco; and the bank would prefer
| his certificates to gold, and would il necessary
l'Rive him gold for them. Therefore there would
be no profit but good deal of trouble, in getting
his certificates redeemed at the Treasury: and to
obviate any rum" should strongly recommend
| the Government TO announce that they will begin
| to redeem in gold at on the LIST of December
The third point is that as the Government are
bound to cancel certificates once presented great
Inconvenience may result from the withdrawal OF
the paper currency to any greater extent than com
merce actually requires and of this the bank viii
be the best judge. Therefore for every reason
1t appears TO me that the boarding of certificates
simply for early redemption, would be mistake.
There is, however one element that is entirely
| within the control of the Government-but itl
effects are entirely beyond their control. Their,
|
that the gold and the silver for those certificates
are permanently secured Any doubt upon this
point, whether justified not will be fatal to tn,
silver certificates and they will then find theil
way to the Treasury, whatever the inconvenience,
may be.
Unfortunately the Government have shown {
lack of appreciation of this confidence on the par
of the public, and it will require the greater exer
ton TO win it In relation to these certificate
| the Government are not simply the Ministers bu
the Trustees of the people; and as trustees, they
would / venture TO think, be acting with police
and Judgment, if they invited some one or m orr
unofficial experts to examine and certify the accu
racy of the certificate deposit.
| The $4,000 of silver which has been shippeC
to San Francisco, will be only about $4,000 wheI
it comes back, and there will therefore be $50 90
TO provide from the ordinary revenue before tn,
end of this month, so as to keep the deposit in
tact, which must be done without shade of doubt
This gold redemption of certificates is not pro
cedure for which the Government is responsible
and il would be most unfair to use it as mean
of warfare; and in the hope of helping to ALA,
some of the difficulties by which this redemption
attended, have troubled you with this tediou
address. am, Sir,
| Your obedient servant,
THEo. II. DAVIES.