The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1884-06-04


4 GOLD law is regarded as a foregonc
conclusion. 1t is apparently agreed. that
the Government Will supply the required
volume q United States gold, to replace
silver coin. The only point of difference
seems to be in regard to the amount Of
gold coin required for a gold currency.
In the opinion Of some. It will suffice TO
redeem in gold, say S5OO,OOO of the Mex
can dollars. five franc pieces and trade
dollars. the latter being worth about So
cents 10 the dollar. the Mexican dollar be
ing worth about s. cents and the five franc
pieces - cents each The same persons
propose that gold certificates for $500,
600, be made payable in silver coin, on De.
mand. OF at the holders option payable in
five years in United States gold The ex-
pense 4 now replacing the foreign silver
with United States gold, TO tins extent.
they estimate at about $4,000. They think
that there Is in private hands some $500
600 United States gold at present, and that
this with an importation by the Govern
ment of S5O0.OOO more would answer all
the purposes OF a gold circulating medium.
and that the S50000l of Hawaiian silver,
outside OF the gold certificates. would be
absorbed and required as counters" in
retail business and small payments. Such
is the proposition as we understand it. 1t
Is based on the assumption that there Is
now in circulation. or hoardcd. about 81
SOO,OoO in gold and silver coin.
We do not think that such a plan would
bc successful. and our reasons FOR this
view are these: The amount Of silver coin
now deposited in the treasury against sil-
yer certificates. Is about SS50OOO The
holders Of these certificates would do the
same retail and small business with $3.50
900 in SO United States gold pieces. rs
they now do with using certificates. none
of which are less than for $40 The $500
600 Of gold which Is boarded. or on deposit
by private individuals at the treasury Is
a further amount which Is not used OF rc
quired for counters, The sum Of those
amounts H@ Hoedal and not Usod foF GHg trHas-
aetioa ,D,do SO, Is SL,15O,OO0. II the en-
tire amount OF coin in the country be
regarded as Sl.SO0.0OO. the portion which
is now in use FOR transactions under SO
under the requirements Of the present
silver law las il is practically cannot be
over S650.OOO But, with a law requir
ing gold coin for all payments over -.
il would be impossible TO absorb this $3.50
900 in payments and transactions under
$500
The only reasonably safe estimate OF
the quantity Of silver coin which can be
used and kept for subsidiary purposes tun
der So Is S3500O0
We should say then. that the amount of
II.
gold law will require to be introduced 10y
the Government for actual, present use,
and not depending on gold certificates
payable in five years. would be not less
than SS50,O0O, or enough TO redeem all the
silver certificates now out This, with the
100000 gold supposed to be already in
the country, would furnish a circulation
Of Sl,l5O.00O gold, leaving S6500Oo in sil
yer.
We see no necessity or safety in issuing
gold certificates payable in the future. The
danger would be great, that they would
result in causing n premium TO be placed
on gold II this country is to be delivered
from its present incubus OF high exchange
by introducing gold law, the work must
be done once for all, and thoroughly. or
il might be better not TO touch it.
The outlay Of S20O,0oO for putting the
finances Of the nation on a sound and per
manent gold basis Is not to be considered
in comparison with the danger impending
from the present condition of things
Since writing the above. the Committee
on Currency are reported to have agreed
30 recommend a $40 gold law, and that the
Mexican and trade dollars and five franc
pieces be redeemed with United States |
gold. This cannot accomplish the purpose |
We shall then have a rigid gold law, with |
90 much silver and not enough gold The /
diver viii certainly be kept in use, and the i