The Hawaiian gazette., 1884-04-23

CURRENCY.


following article for publication, not because it
contains any original IDEAS but with the hope that
it may lead to some action on a subject which
people do not like to write about, though they have
much to say ON it. The views of any one man can
have little weight only as they help to disclose the
weak or strong points of the subject discussed,
and to turn the current of public thought into
channel, crystalizing, it were the floating germs
and combining them into a compact mass that
carries with it the force and conviction which
truth always possesses
When the currency of the United States became
depreciated during the civil war, and the people,
after submitting to long continuance of high
prices and losses from premiums on gold, sought
to restore it to par value, the first step taken was
to provide gold reserve in the treasury equal to
any demand that might be made. The time was
set for the resumption of gold standard, and on
that day there were in the national treasury over
one hundred million dollars in gold, but before the
day arrived, great was the confidence of the
public in the ability of the government TO meet
any crisis which might arise, that the premium
on gold quietly disappeared, and paper money and
silver became of the same value as gold. The ma.
tonal currency had been redeemed from the grasp
of spectators, and without struggle was placed
on solid gold basis, though spectators and
croakers predicted panic and financial ruin.
This bit of recent history should not be lost
sight of now when our currency is becoming every
week more deranged. few timid men predict an
Impending CrlSS, Wllle most people feel tlat some
effort should be made to restore gold basis, of
which have in reality been deprived for several
years, if we date this period from the time when
silver certificates and the currency law of 1876
combined to drive away our American gold coin.
The fact that it costs merchants now at least
five per cent more to settle their bills for goods
imported than it did year ago, and that it may
cost them ten per cent before the close of this year,
should open our eyes to the gravity of the situa-
ton. The present condition of things connotlong
continue without this reSult-that the consumer
every man, be he rich or poor, must bear his pro-
portion of the burden, according to what he con-
sumes. Virtually it will be tax of five per cent
or more on all the people, tax which were it i'm
posed by the Legislature, would result in popular
uprising throughout the Kingdom, such as has
never yet been witnessed here.
This, then, is the situaton-Our currency is be
coming deprecated to the extent of the premium
on gold drafts whatever that may tie. No matter
what the cause whether it be the influx of mil
lion dollars in kalakaua silver, the expectation
OF a million dollars IN gold and silver lately in
circulation, or combination forcing up the rate
of premium, or all these combined the fact remains
incOntrOyertable that currency is becoming
deprecated, and the depreciation threatens to be
indefinitely increased, and accompanied with re-
snts which foresee The new coin is
here and will remain here, unless the much dread
| ed Chinaman shall find that the Kalakaua dollars
happen 10 contain one sixteenth more pure silver
| than the Mexican trade dollars, and taking a
fancy to them, should gobble them all up Just as
| We are becoming accustomed to them, and send
| them off to the Flowery Kingdom where all good
| coins go, to be cremated. The new coin is sup
posed only to fill the place of the American and
other silver coins formerly in circulation here but
which are rapidly disappearing
Now what is the remedyI With a unanimity
that has rarely been equalled, all intelligent per-
sons are satisfied that the importation of American
| gold coin is the one most available Sore have
doubts to the extent that it will correct the evil
and the time required for it; but all approve of
making the effort. And the Government should
1,af to- tIa
| the public treasury, in some way other, with n
sulicency of gold to meet all payments, and to
satisfy the public mind that il is determined To
carry its measure. gold supply of four hundred
thousand dollars is ample. This may seem small
amount but it is average of five dollars per cap
ita for each nhabitant, estimating our population
at $1,000 The United States provided a gold re
serve of one hundred millions in its treasury when
it restored the gold basis which seems very large
| sum, but this was only two dollars per CAPITA for
| her population of fifty millions.
| But how can the Government obtain the goldi
Section eight of the law to regulate the currency
| passed Sept 1876, which was designed to guard
| against depreciation of our currency, and which
| has never been repealed, reads: "And be it fur
ther enacted, that from and after the date of the
"passage of this Act it shall be the DUTY of the
| Minister of Finance to require that all duties
paid on imports shall be paid IL United States goio
''e0ig, or its equivalent This is certainly very
| clear, and Is moreover mandatory. Although this
law is not as perfect as it might be made vet had
it been carried out here during these eight years
| past, as q similar provision was in the Unitet
States, it would have provided all the gold re
CURED for the wants of trade and the Government
| Kept the rate of exchange at fair and moderate
figure, as it did in the United States and made tn,
currency of Hawaii among the best of any non
Old-producing nations OF the earth. If its pro
| visions be now adopted and carried out or sOmt
new law of the same purport, but more definit,
and complete, be enacted doubtless the same re
suits may be realized. Its enforcement can be nj
hardship to the producers of domestic products
to their agents, for every dollars worth of suga
rice, bananas, or other domestic produce shipped
abroad, is paid in gold, and fair proportion o
our eight millions of exports should be returned
here in gold if the public necessities require it, a
is done in other countries where gold is being con
stantly shipped back and forth whenever the want
of commerce demand it. HMw