The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1884-06-04
{)awaiian O3azGttG,
Esr uoDUs IN MINUS.
WEDNESDAY. LrNE I. Issi

THr now Bank Bill has a smack Of the
East India Company's Charter. That
association at last ruled India says Ma
cauley. from the ocean to the everlasting
snow. reduced 10 profound obedience pro
vinccs which had never submitted 10 Ak
bars authority and doled ont a monthly
pittance to his heir And the Hawaiian
Monarch IN his little Iolani Palace had
better ponder on the fate Of the Mogul En-
pirc before signing the death warrant oi
the liberties Of this race and Of himself
AswE read tho Bank Charter the security
offered for the paper currency Is the prom
isc Of the Hawaiian Government TO pay in
~ years. In plain words the Hawaiian
Government borrow Of Mr. Spreckels and
his supporters one OF two million dollars
which they spend and Mr.. ;. x Co. de
post in the treasury as security for the
pavment of their own notes. the promise
Of the Hawaiian Government topay them.
In the United States there is no trouble.
The treasury Is always ready when Ma
tional Bank fails 20 pay out the cash re
auircd. Our Hawaiian Treasury has no
such resources to fall back upon, by its
own statement II has run as low ~ even
two thousand dollars. Should crash
come II would have nothing 10 offer TO the
holders Of the Hawaiian National Bank
Notes but It- own promises 10 pay. 10 be
sold for what they might be worth. ana on
tho failure of that bank those securities
would be- worth very little. There is no
cash behind the scheme: it is specious we
acknowledge. but it Is dangerous, and no
small nation can play with such an edged
tool as the paper currency of ahank backed
by a promise 10 pay Of a tottoung govern
mcut and hope for anything but disaster.
A NIGGER in the fence, The proposed
bank charter says in lieu OF all taxes etc.
the Hawaiian National Bank shall pay or
cause to be paid the treasury annually
"a tax Of one per centum on the average
amount Of circulating notes delivered to
said bank and outstanding. according to
the records Of the Treasury Department
The United States law reads -'a duty Of
one Lalf per crntum each half wear upon
the average amount Of Its notes lI ciT1U-
latiou. and duty Of one quarter of one
per ccutum each half year upon the aver
ugc amount OF its deposits, and duty Of
one quarter Of one per centum each half
wear ON the average amount Of It's capital
stock, beyond the amount invested in
United States banks" These are two very
different things, and yet the turthcrcrs Of
this precious scheme drrr 10 say that their
himsy ill-drawn paper scheme Is the same
a. the United States National Bank Act
The United States protected their citizens,
the proposed scheme allows the new bank
to escape taxation entirely If 1t is SO dis
posed Why should not the bank with
draw It's notes Just before the tax time
And where would be the tax them In
the Golfers Of the bank and not Of those OF
the people.
In ZIG a smart and clever Scotchman
named John Law got the ear Of the Re
gent of France. and upon the following
argument started royal bank Of deposit
and discount: Gold and silver" !" said Law,
-haycno real value and cannot be increased
at pleasure. II. then. this value can be
transferred 10 paper, which can be issued
to any desired amount the national wealth
can bc increased France was flooded
with shinplaster,. bogus trading com
pauy WIS added to the bank, all the hard
com came into the hands Of the Govern
meut. which, with tins at It's command,
could push forward all kinds OF schemes.
There was a regular boom: enormous for
tunes were made. the shares Of the hank
and company rose TO a gigantic price, and
then, in lI2l, the bubble burst. France
was left with a debt of G25,OOO,O0O francs.
thousands were ruined. and Law, barely
escaping with his life. died beggar in
Venice
There is some similarity between Laws
scheme and the Hawaiian National Bank
scheme. The coin Is paid to the Govern
mcnt: is spent by them. The bank can
start with million Of shin-plasters
and not "a dollar OF coin in it,
vaults A. long Us the com lasts
the Government viii be strong There is
every prospect Of a shinplaster boom and
cvcy prospect Of collapse which Will ruin
Of individuals and will dash the
Of Hawaii to the ground.
4 few bcggms, heap Of shin -plasters and
an empty city is an that VIII remain Of
Honolulu when that day comes.
GOLD law is regarded as a foregonc