The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1884-01-23

lost means loss all over the group, for the
country districts in most cases are far
more bitter against our present mal-ad-
ministrators than even the city opposition
are. 1t Is not yet time to shout oae riefis,
but a premonitory echo of that shout must
be ringing In the ears of those who have
been using the present regime as conyen-
lent stalking horse for feathering their
own nests. There Is so much corruption
which has to be exposed, so many crooked
probably transactions 10 be made straight
that not the whole viii appear before the
next Legislature.
We pity the ministry With the pros
poets before them there Is surely bad
time coming. Some members Of the Cab
met will have to bear the brunt of the
storm. but we may rest assured that the
venerable Premier Will try by some means
or another. no matter how dishonorable,
to sguirm ont of the position and leave
his colleagues in the lurch. For the hide
pendent party things look healthy.
IL TIE early part of the year 1880, this
journal urged the importance of resuming
the [. 5. gold currency which existed here
prior to the Act of 1872. making American
silver half-dollars the standard The cur
rencv Act Of 1876 was intended to restore
the gold standard. and make L. ). gold
coins at their nominal value the standard;
but the same Act made [. ). silver COINS
legal tender for their nominal value IN
payment of all debts not exceeding fifty
dollars The effect OF the law OF 1872
had been 10 remove most of the gold from
circulation. the Chinese especially having
ACQUIRED the habit of exporting IT IN place
Of huyinC exchange. The merchants. ap
urehendinC that an enforcement OF the
gold law Of 1876 would cause serious
trouble from the continued scarcity OF
gold. agreed with the Government to &C
cept the American silver coins at their
nominal value. and other coins at their
values as fixed by the Privy Council.
To arguments that while our exports,
which were payable IN gold We're exceed
| ing our imports, there was no difficulty IN
making gold currency, 1t was replied
that the excess Of exports was only NOM
nal owing TO the fact that they We're
largely over valued in our Custom House
invoices, and our exporters were owing
large sums abroad for machinery and ma
terIals for the new enterprises to which
the treaty gave rse; or, II not so indebted,
were spending or investing abroad large
part Of their profits. This was no doubt
the fact. and would have kept up the pre-
MUM on exchange II was also fact
that the large amount Of silver required
| for transactions not exceeding fifty dollars
would have left unemployed a large
amount of gold and that, as a conse-
uuence OF such an excess of gold over
business requirements, the tendency 70
export gold instead of paying the neces,
sary rates to buy exchange, would continue,
Silver answered all purposes of paying do
nestle debts, especially by the aid of the
silver certificates of deposit. which dis
pensed with the use Of large amounts OF
bulky coin.
As there was no occasion to export coin
in payment of debts abroad, the main OBJ
/ lection TO the silver currency was that
whenever failure of crops or great fall
in the value OF exports should come, the
ordinary method OF buying exchange at
moderate rates to pay for an excess of i'm
ports. or to remit money abroad for any
purpose. would no longer suffice, but coin
would have to be exported in place OF
sending exchange. This with silver cur
rency below the gold par required by ouI
American creditors would mean great loss
and consequent distress.
Apparently the only course was to Is
more the gold law, the bank of Bishop &
Co. leaving in the Treasury the principal
amount of L 5 gold in the country &c
I stand in place of the silver deposits and
/ for use at the Custom House, and TO wait
until the Legislature should lessen the
sums for which silver coins should be pay
able. either to five OF ten dollars, or as
some thought, TO twenty dollars.
Still the business community felt APP,
prehensiye that even with such reduction
Of the amounts for which silver coins are
legal tender, the efilux of gold would con
tinue as long as the volume of silver in the
country continued as large as it is. Ii
was partly to prevent excessive influx OF
silver that duty of ten per cent was laid
on Its importation. There could have beer
no other reason for restricting the impor
tation of silver. than its inferior value as 4
currency. No one would dream of levy
ing duties on L. S. gold coin imports.
\ far better method of providing for {
redemption of gold was given by the coin
age act Of 1880, which authorized the gov
eminent to transmit the gold and silver
coins current here, to the United States
and have them re-coined into Hawaiian
gold and silver coins of values correspond
ing to the American coins The coinag,
Act allowed the proportions of gold and
silver coins thus obtained TO be fixed by
the government. The proportion of gold
might thus have been increased, and the
amount of silver coins now circulating
might have been decreased. The govern
ment in issuing its gold bonds under tn,
Loan Act of 1882 might also have further
increased the volume of gold currency.
reduction of the amount Of debts payabl,
in silver coin would then have found tn,
country prepared for gold payments. GOLD
coins Of the denominations of one dollar
two and a half, five, ten and twenty dol
lars would then have principally done the
work now done by silver, and the entire
amount of gold and silver coin in the coun
Try would be no larger than is requisite fol
business purposes.
In view of the possibilities thus afforded
the government, of placing the nationa
currency on a basis which would have de
fed any disturbance from shrinkage o.
our staple crops, or from loss of treaty ad
vantages, it is much TO be regretted tina
exactly the opposite course has beer
adopted. Silver is brought here, presum
ably without paying duties, in larg,
amounts, with no diminution of the silver
already out, and no increase of gold A:
long as that volume of silver is retained
an enforced gold currency is impossible
without causing great arrangement of the
money market.
! n