Saturday press. [volume] (Honolulu, H.I.) 1880-1885, 1884-03-22

/ your trunk ?" II don't know. but I'm
not going to lose money on it by buy
ing exchange "But your money is in
silver. isn't it2' "Yes." "Do YOU
know how much it is worth in San
Francisco?7 about ninety cents on
the dollar, isn't it p Rather less than
that, ] think "rhen guess I'd
better buy exchange after all, said
Mechanico. "Or wait till the clouds
roll by suggested 1elemachus.
Hampden sat in his office chair. his
democratic heels as high as his patri
clan head He saluted Telemachus
with stately courtesy and answered
the young mans queries thus "The
present Unprecedented high rate of ex.
change is an injury to the public.
Those owing debts abroad have to pay
a heavy extra tax for the privilege OF
paving those debts.
"And ultimately asked Telem.
achus ultimately" answered Hamp-
den, "thc consumer Of all kinds of i'm
ported goods has to foot rhe damages
by paying enhanced prices The cause
of the increased rate of exchange is
mainly the importation of the kalakaua
currency, as it is called. which cancels
so much exchange that would other
wise be available. Low prices of sugar
have also an influence in putting up
exchange, but the principal cause, with
out doubt, is the foolish importation OF
the new coin in large amounts, coin
that is worth about eighty-two cents to
the dollar. Who is responsible for this
state of things3 The new silver has
not been coined under the coinage act
of 1880. Therefore it is not a govern
ment enterprise, at least not legti
mate one. And yet if it is a pri.
vate speculation by Sir Claus
Spreckels, he could not have imported
this mass of adulterated coin into the
country without paying ten per cent.
duties od aaiorem but he has paid no
duties, the Hawaiian Government al.
lowing it to come in as government,
property. Now this is mysterious and
perplexlng. The government stated in
their answer to the mandamus case
that they were intending to take this
same money in exchange for gold
bonds, thereby admitting that up to
that point the money did not belong to
them. The old and exasperating ques.
ton of who is who ? becomes a per.
tinent one at this juncture. Is the gov
ernment the government, or is Spreck.
els the government ? Or is Spreckels
holding the not exactly lucid position
Of silent partner, or possibly real
premier or real king to whom the
nominal respective holders of those
positions play sedond fdah. In the
meantime, what gigantic intellect is to
be emblazoned with the credit, in the
future pages of Hawaiian History Of
having thought out and carriedt through
the enterprise of making one blade o
grass or stalk of cane-for that matter,
grow where two grew before ?"
" But what are we going to do abou,
it p said the youth. "Beshew me,
lad, know not We have Legislature
and" more eloquent than words, that
abrupt pause.
Midas streked his auburn beard and
smiled pleasantly as Telemachus enter.
ed. at is long story l may not
tell you in half day and you could
not gather the detailed statistics
in week Many causes combine to
make exchange as it is. Every one
knows the immediate cause.-the intro
duction of the Spreckels' silver That
money has taken the place of the ex-
change Irwin g. Co have hitherto had
to draw against All that silver has
been paid for in exchange. OF course
the elimination of SO large proper
ton of available exchange has made
that commodity scarce, and, conse-
quently, dear. How could it be other
wise ?"
" | think you ought not rest content,
continued Midas, "with so shallow a
view as that which holds up its hands
IN childish alarm and senile wonder be-
cause the apparent difference in our
favor between exports and imports has
not accrued to our advantage. A little
calm examination Of the facts ought to
convince you-as it has convinced me
that the actual difference IN our
favor is by no means so great as it
seems"
"Here are certain statements of fact
which may be proved Tor disproved by
patient examination" continued Midas.
''Our exports do not exceed our i'm
ports by anything like the sum that
appears in our custom house statistics.
Let us try and get at the reason. A
principal reason is over valuation. Our
sugar, on the average of all cargoes
exported, do not realize, by fully
twenty per cent. the valuations at which
they are invoiced at the Honolulu Gus
tom house. The actual shrinkage in
weight value is fully two per cent.
and the other eighteen per cent. is
made up by fall in price, by freights
and by commissions"
"But why are they over-valued p
asked Telemachus. "For this reason
BY agreement, the Honolulan shipper
is allowed to draw on his San Francisco
agent for from two-thirds to three fifths o
the invoice value Of the sugar shipped
II is of course to the interest OF the
shipper to have the invoice valuation
as high as possible. Heretofore the
foreign agent has rested content in the
| known solxency Of the simmer and