The Hawaiian gazette., 1884-07-16


place Of, and raise the price Of sugar.
Dr. Smith (speakinc to Mr.. Macfarlanel How
Is it that exchange has not reached higher during
past years when we were dealing in reality on a
silver basis Silver is the basis Of exchange now
and the kalakaua dollar is not worth any less
than other silver coins for the purposes of trade.
EIchanre, however, in times past, gentlemen, has
been kept down artifcially.
W. g. Irwin, one of the members Of the firm of
which Claus Spreckels is n partner, showed his
lack Of knovledce Of the business of the countFy,
BY emphatically saying. NO, Nor
NJ. Spreckels. Il agree with the doctor" which
settled it,
Mr.. G. W. Macfarlane said that it would he of
little to bring gold into the country, it would
60 out again. 1t would be necessary TO pat up
the urice Of exchange to keep the gold In the
country. (Daughtet.)
nr. Davles sud that the high rate of exchange
was not the result Of supply and demand. and this
could be very simply tested. Let a man take
to the bank one bag containing $1,000 in L. 5.
gold. and another containing $1,000 in Hawaiian
silver, and see how much exchange he could get
for each. He would find that the rate did not de-
pend on the demand for exchange, but on the
quality Of the money with which he was prepared
TO pay for It. Practically all our debts
have be paid IN San Francisco, and eur currency
must be such as Will pay those debts. If we take
Hawaiian silver to the bank and ask Bishop & Co.
to pay debts in San Francisco, they will reply
that this money will not pay these debts and that
We must either give them money that will pay the
debts, or must pay them the difference Of value
between the money We give them and that which
We ask them to pay. This is all that we call ex-
change. II we were beginning de- nara the course
would be clear and simple. We should start on a
gold basis, Our position Is this: instead of having
one fifth or one-siIth of our currency in silver and
the remainder in gold, we have about one-ffth
gold and the rest silver. The currency bill nov
before the Legislature provides for the conversion
into gold of all the silver coin IN circulation.
exceui the Hawaiian and L. 5. silver, and 1t is os-
iimaled that this operation will give Us about
$l,sOo,ocO IN gold, and nearly the same amount in
silver II it were made optional with the debtor
to paw In either gold or silver. he would certainly
pay out the silver and hoard the gold, 50 far as he
could; but the new law, making gold payments
compulsory would prevent this; and therefore it
WAS the speakers opinion that the law under dis
cussiuu was the only way Of correcting the evil of
the present system. lie would however 60 further
than this and place one half of the Hawaiian sill
yer IN the Government vaults against the silver
certificates. In other words, the Government
should undertake to redeem all the silver certif-
Gales with gold, and should hold for the purposes
OF said redemption, say $4,000 in gold and 500
600 IN silver, assuming the certificates to amount
IN all TO millionl- These certificates, with
their guarantee, would be practically gold certlh-
Gates, and would have all tile value OF certified
cheques and he Mr.. D. believed that the certif-
cafes would never be presented for redemption TO
nearly such an extent as TO exhaust the gold half
of the amount held against them. applause
Mr. Gseen. This IS the proper time 10 say what
have to saw. There Is a bill before the Assembly
which has passed by large majority. was not
asked to Go on the COMMITTEES gave my views IN
i
and exchange them for Hawaiian. We all want
to be paid In gold we do not want TO pay high
rate of exchange TO San Francisco; IL Is only
balances that you send away abroad here our
balances Get tremendous: they get TO an amount
equallinc the whole amount of our currency. In
December, January and February We shal want
to send away more than a million of dollars.
Mr. LYMAN of the firm Of Hyman Bros of this
CITY said: great deal has been said about the eX-
pense Of bringing the gold here and TO keep sum
Gent in the country for the requirements of the
currency law as now before the Legislature, and
this all merely for the benefit OF fee iefhieIS ard
fufp8f-fsTs: nov Mr. Chairman, wish to show that
this is an entirely wong idea Our imports amount
ing to over FIVE millions, even at per cent eI-
change, costs the consumer SilO,OOO extra. As
saming that gold will be shipped and used IN part
to pay our debts abroad, At the highest calculation
We should have to reimport one million yearly,
and this at an expense Of II per cent would cost
$1,000: there We will have a saving TO the con-
sumer Of SeSS5OOO per aunum. This charge of
per cent falls every person IN the country on
the capitalist, planter, mechanic, clerk and labor
ing man. Anybody familiar with commerce knows
that If barrel Of -four costs $3.50 in San Fran
cisco and exchange rules at per cent, that with
the freight, insurance. etc, this per cent Is add
ed to the cost and the consumer has TO pay for IT.
DO not say that II Is tue duty OF tue Govern
ruent to regulate exchange but do think that il
is the duty of Government TO provide Its people
with currency with which they can pay their
debts abroad and not causing them loss oil from
TO 10 Per cent. With the currency as heretofore,
Messrs Bishop d Co. have had 1t in their power
at any time during the past seven years, &c raise
the rate of exchange TO ten per cent, more es-
pecially f-um the month of August to January.
Therefore l believe that rs this bill nov before
the Legislature tries TO remedy this state OF affairs
it is worth trying for the oominSttwo years ZAP
plause,l
pose as a legal tender law
Mr. Green. All Of TIE Law as nov passed except
that PORTION where the silver certificates are made
e1chRncelble for gold
H. aVnTa has ed
that some one will send the gold away then what
Is TO be done!
Nj. Green ,InterpolatinGl Better do anything |
MT. Il. H. Davies (Coniinuingj Those people |
who have not got the gold will have to make pro-
vision by exchange. The point Is, If the people |
have confidence enough there will be no serious |
difficulty. The Law Of legal tender does not |
change the ownership Of money.
Mr.. Green. II this million of silver that Is pro- |
posed to be put in circulation be too much, then
exchange will be high, and gold will 80 away.
Mr.. Davies. II own sl.OO,uo in gold, no |
law except a coufscatOry law, can takeit out Of /
nv hands TO pay other peoples dehts-unless /
am willing 10 part with u.
coming monOpolist; / did not think that of you,
thought you were Christian. tLauchter.l
DR.. smith. When gold is Pledntiful exchange |
cannot 60 up. Many persons seem TO be mistaken |
regarding the silver certificates and think that |
they are issued again after payment. The speaker |
desired to say that the new law provided for he |
cancellation Of the certificates upon payment TO /
the Registrar. Ihe POINT made regarding gold 1
going out is easily answered. Suppose four |
months from now that exchange Is at the same |
high rate and that the balance Is against Us ano /
the entire one million of gold goes out Of the /
country, What next? Why the next move is,
that BY the provisions Of the proposed legal tender
act the gold will all lie brought back again,
Applause
Mr. Sprcckels But, hold on. Doctor, suppose
Mr. Bishop and l agree to make combination
against you and lock up our gold and say we wart
a premium from you.
Or. Smith. Even then We have property in
plantations and products of the same which we
can use to obtain gold without having 10 pay
your premium. applause
Mr.. Spreckels. Hos long are you going to make
this new law forT
Dr. smith. For two years. The country will
not be ruined IN that time by currency.
Mr.. Davies said that, as far as the question of
gold Is concerned, the plantation agents will have
70 buy gold and they are bound TO get It out OF
sugar. The gold Is sure TO come into the country.
Al 80 O'Clock Mr. p. c. Jones moved an ad-
jJr4nmeui.
Mr.. Spreckels. will not oppose any of thel
bills you NAY have TO carry through this legis
lature ] can see plainly that am not in accord
with you but rest assured YOU will find that time
wIll tell that the old man right
Hon 5. Il. Dole, one Of the Representatives, who
was present, said: We cannot send away money
ue do not own. II seemed TO him TO be folly to
ooAfne oneself to currency that will not pay
our debts in san Francisco without eutailing
severe loss. The good effect 1t will have will be
the compelling Us 10 buy less. 1t is not unrea-
souable TO demand that the currency be that
which Is approved by those with whom the bulk
Of trade as with, ~; San Francisco. For
business local, the subsidiary coins are not use
full. without loss, in our foreign trade.
Mr. c. X. Bishop nov put the motion to adjourn |
v hich being carried the solvers of the financial
question of the day and the oracle which to
speak, parted, leaving dim impression behind
that they, as well as the question, were yet open
to more convincing argument