The Hawaiian gazette., 1884-05-07
Currency.

The following is the manner in which the Mini
ster Of Finance deals with the currency question.
The report IS given in full to enable public TO
Judge what arrant nonsense can be talked by an
official upon this point and slso 10 shew what an
unseemly display of temper the Minister indulpes
in. when speaking of those who have objected TO
ministerial methods.
CURRENCY.
One of the most important steps which the
Government has taken since the adjournment of
the Legislature was 10 substitute for all the diff
ferent foreign silver coin Hawaiian coinage of
dollars half dollars and smaller fractional cur
rency. The intention of the Government was TO
acquire this coin for its par in bonds but this
could net be carried out under the construction
which our Court placed upon the Loan Act of 1882
The coin, however. was received in the King
dom, and after receiving its legal standing from
His Majesty the King in Privy Council. has gra-
dually even without direct action of the Authori-
ties taken the place OF the foreign silver coin.
The coin itself is OF equal weight, size aud fine
ness, with the corresponding coins of the United
States
This step of the Government appears to have
given some of its internal enemies umbrace; ali
manEer of dire results were predicted frou it, all
manner OF evils. no matter from what source they
arose were attributed TO this action of the Govern
menL Notably, the increase in the price of ex-
change was an evil laid at the door of the action
OF the Government. If private individual had
introduced into the Kingdom half million of Sill
yer coin of the United States the rate of exchange
would have been the same as it il now, and no.
thing would have been changed except that a rea-
son for caviling and maligning the administration
would have been wanting
respectfully ask leave to submit the following
historical recapitulation before you:
The last Legislature passed the Loan Act des-
lgned to procure funds for certain internal i'm
provements which were deemed necessary.
The Legislature had in view that the bonds
authorized to be issued for the purpose should be
issued at par in Hawaiian money and should be
redeemable in gold coin of the United States.
Our Supreme Court decided that the bonds
could not be placed otherwise than for par yalue
in gold coin of the United States.
This decision which is now our law unfortunate-
ly had the effect that instead of this community
receiving certain amount of money for its paper
one of the largest and most responsible firms
dealing in exchange was driven out of the market
for the time being. There ceased to be COMPETE
ton among those who sold exchange and these be-
gan TO be competition among those who purchas-
ed; adding to this the deplorable fact Of an ap-
preclable fall in the price of the staple product of
the Islands 1t can be easily understood that there
lies the reason for the present rate of exchange
If this country exported manufactured articles
and imported raw material, the excess of imports
over exports would result in the benefit of this
country The opposite being the case it results
IN the temporary injury of the country The action
OF the Government regarding its loan and its bonds
mas nothing to do with the usuriou5 rates of ex-
change to which the people submit. Nor does the
question of monometallic or bi-metallic standard
affect 1t seriously. If the gold could be kent here
it would probably be beneficial to have a sinole
standard of the currency; when established the
gold would disappear and silver again takes lis
places the double standard on the other hand has
net caused this community the harm which the
circumstances mentioned before have wrought
that IS the raising of exchange to usurious rate
The remedy would probably be in the restriction
OF our liabilities abroad, and of our expenditures
at home.