Saturday press. [volume] (Honolulu, H.I.) 1880-1885, 1884-05-31

majority belief being that there is al
ready enough unemployed local capital
seeking investment to secure the har-
monious development Of our resources.
.Sec0n6-It is not specific upon two vi
tai points, the medium by which bonds
shall be purchased and the medium in
which the bank notes shall be paid.
1t is true that unanimous decision of
the Hawaiian Supreme Court has de
elared bonds can be sold only at par, in
United States gold or its equiva-
lent. But the impression prevails that
at least portion OF the bonds are to be
purchased with siver-and nothing in
the act shows that they are to
be purchased for gold. On this
point it may be urged that
it makes no difference to the holders Of
notes how the bonds are negotiated.
Very true, but it makes some difference
to the tax payer whether the govern
ment realizes the full value Of its bonds
or no. As to the payment Of the pro
posed bank notes, redemption in the
Spreckels' silver would mean probably
indefinite postponement of the gold
standard redemption in gold would
mean a practical solution of our imme-
dlate currency difficulties, and would
do much to rob the scheme OF its worst
feature-the conditional swamping Of
island business under food OF depre.
ciated silver 7HUd-The legal tender
feature Of the scheme is open to the
last objection. 1t means, as the act
reads, that paper redeemable in Spree
kels' silver shall pay all debts, public
and private--except custom dues and
interest and principal Of bonds. If the
notes we're made redeemable in U. S.
gold, the legal tender power of the pro-
posed bank notes could work no injury
SO long as the bonds represented par
value. Fou,M-The new bank pro-
poses to issue notes to the full value Of
the bonds deposited. That ought not
to be permitted. If in the United
States it is deemed expedient to per-
nit the issue Of notes to the value OF
only ninty per cent. of the bonds de.
posted, a safe bank of issue here
ought to be allowed to circulate notes
to the value of not more than seventy
per cent. of the deposited bonds. The
reason is obvious The great republic
of the United States has enormous
resources. Their development is in its
infancy. The national banks assist
that development and secure their
notes on the credit Of the whole
country. But the little Kingdom Of
Hawaii has but few resources, and
the credit of the whole country may
fuotuate so as to effect the value OF
bonds and so imperil the security OF
national bank notes. 1t goes without
saying that distrusted administration
may depreciate the value Of govern.
ment bonds. Our bonds were for sale
at discount not long since (or, if this
be not an exact statement Of fact, could
not be sold at par), and because Of
distrust Of the administration. 1t also
goes without saying that this state OF
affairs may come about soon again.
) Only the professed friendship and sup.
port Of Mr.. Spreckels has kept the pres.
ent ministry in power. Is it not too
much to ask the legal right to issue
currency based upon credit so prone
to fuctuation-except under reasonable
limitations Fy1A-We object to sec.
tion I8, in toto. 1t throws the cloak
of law around dangerous experiment.
AS the law stands, the government may
employ any reliable person or corpor.
alton as its financial agent. There is
danger in this sanction, by legal enact
ment, Of intimate financial relations be-
tween governments and corporations.
The section is bad and only bad, and
: ought to be stricken out without dis.
: senting vote. Enaily-We object to
section 4, in so far as it gives the new
bank the right to increase its capital
stock to two millions. The loan ac,
calls for the sale Of bonds to the amount
of only two millions. To permit any
bank Of issue TO employ all, or nearly
all, the outstanding or soon to be
negotiated Hawaiian loan, as security
for currency notes, would be to play
into the hands Of monopoly and leave
: every industry on these islands at tn.
mercy Of a corporation.
A friend gives the following supple
mental objections: "In section 2
! what do the words or any other place
. mean Do they mean the Legislative
!. :. assembly, where Mr.. Spreckels wa