The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1884-04-02

contract This lust exhibits the thoroughly
absurd manner in which the Premier acts,
his methods are not actuated by policy |
but by expediency. He Is trying to make
Il appear that he IS shutting the door |
on the Chinese, when he has really left 1t |
open.
IT Is now freely admitted by our banks,
that the rates for exchange on San Fran
cisco are beyond their control, and that 1t
is almost matter Of favor to sell exchange,
except in small sums.
It is significant that exchange on Hong
Kong Is at the same time IN our favor,
drafts on that city commanding ten per
cent discount The difference Is this: one
who desires to send a thousand dollars to
Hong Kong, takes nine hundred dollars to
the bank, and receives his bill of exchange
payable there. IN the sum of one thousand
dollars
Exchange on Hong Kong IS generally
sold at n discount for the reason that all
drafts, freight money etc. are payable there
in Mexican dollars, which constitute the
currency of the country Mexican dollars
can always be bought in San Francisco at
about their bullion valne, say 81 cts; IT
costs about Il per cent for freight and in
surance, and about per cent for interest,
so the coin can be landed at Hong Kong
| for n cost OF about SS.7i per dollar The
| English sovereign, some little time ago,
was worth $40 in Mexican dollars, but
whether that Is the present rate there now
we have no means OF knowing.
One who desires to send a thousand dol
lars to San Francisco, pays one thousand
and fifty dollars for his exchange. Each
fact is explained by natural laws. Week
port nothing to Hong Kong except coin,
and export nearly all our products to San
Francisco. so that if the same currency
which is held here were used in both Of
those places, the condition Of exchange
would be exactly reversed, San Francisco
exchange would be in our favor and Hong
Kong exchange would be against US.
If with our heavy exports going forward
to the Coast. We had only an American
gold currency in use here, except for small
debts. we should see the coin go forward
instead of exchange by every steamer to
San Francisco, when exchange rises above
about two per cent
Who would be the loser by this? Not
the retail dealers, nor the consumers, and,
as We believe, no one in the long run, for
the general prosperity means individual
prosperity.
To illustrate the groundlessness of the
fear that the gold would disappear, and
have to be constantly reimported at great
loss. one Of our residents lately brought
back here, from a visit abroad, 4 consider
able sum in United States gold. which he
has for several weeks been trying to sell
at premium Of five per cent, to Chinese.
Even advertising his coin in the Chinese,
newspaper has brought no buyers of this
coin at that rate.
Small remittances. In British soYereigns
or in Mexican or trade dollars, Will always
be made by Chinese laborers, from the
difficulty of sending drafts to the payees
who can identify themselves, OF who can
secure themselves against frauds; also fol-
the reason that the money IS required to
be distributed in the interior of China, al
places where no bank drafts are used OF
cashed
But this Is not sufficient cause for sad
ding upon this country 4 currency which
may at any time require ruinous rates tC
be paid for exchange.
We believe that upon the general sub
jcct of currency, the present local press
are nearly if not quite in accord. We trust
the time will come when there VII be nc
dissenting views.
Tn various explanations which are
made Of the present scarcity and higl
rate ot exchange, are at least instructiy,
Of the point Of view" There are those
u and they are among our heaviest business
men, who do not hesitate to lay the entir
blame upon the lawyers who brought til,
.bond suits" Their course of reasoning
as we understand it, IS this: The suit
prevented the present issue of the bonds
m certainly to the full amount of one mil
lion dollars as had been contemplated
The silver nevertheless was brought here
and as IL Is not exchanged for bonds. !
represents precisely that amount of ex
change which is not available for drafts OIL
San Francisco. Hence the scarcity an,
consequent high rates which according +
all laws of trade will attend a suppl
which is short of the demand.
The issue of gold paying bonds, payabl
in five to twenty years, in exchange 70
silver, would, say the above named res
soners, place the burden of payment o
posterity, or at least would not have cause
general distress before the bonds becom
payable, meanwhile things would hav
gone on as they have gone ON during tn
last few years Perhaps the most ia
= sighted of those to whom we allude, adm
that this is not desirable condition o
national finances, that it is the penalt
p which had to be paid for having a silve
p currency; but with silver currenc
ut actually upon us, they argue that it was III
st wise at present to precipitate the quesio
= which the bond suits raised.
10 On the other hand, the parties wa
1t brought the bond suits, and we beliey
il they have on their side all Of the studeI
y portion of the community, and most {
'. those who have no personal dealings
exchange further than TO buy bills of e,
~ \. change in order to pay their debts or sen
N money, for any purposes abroad, conten
he that there Is no advantage in, and no Il,
cessity of continuing to rely upon 4 silvC
he currency. That the occasion of the pr,
~ posed issue of the bonds was the great o.
Mt portunity afforded to the government,
~ introducing a volume of United Stat,
a. gold coin to be placed in circulate
n conformity with the enforcement of q
10 amended legal tender Act, making Unite
I'd States gold our currency, except for sma
re subsidiary silver They say that viii
Nj they discard with scorn the notion tn
~ personal or political objects affect the
nd views on this question, they do not adm
oh the propriety Of being at the mercy of Il
3r- banks, or of the principal sugar agent
~ who, or some of whom, now have it in the
power to say what shall be paid for e
change. They think that prices of all il
4. ported goods, and consequently the &C
~ of living, are unnecessarily increased
keeping up a silver currency; and clai
sb. that the planting classes, the mercanti
r. class not concerned in sugar agencies, &
5 salaried and professisnol classes and Ii
: chanics are the losers by keeping up t
~ existing state of financial affairs.
!! We have expressed the views of Il