The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1884-03-26

II HAwAu had gold or silver mines, there
might be reason for a Hawaiian coinage,
or rather there might once have been rea
son for coming the bullion into national
coins, before the business of the country
had accustomed itself to American coins:
but as matters are, there is absolutely no
advantage to be gained by introducing, at
this late day, this relic Of barbarisn. for
such no doubt IT Is. The custom of coin
ing money for use only in the country in
which It Is coined. originated in times
when international exchange and com
merce were unknown.
Even the Cnjustly censured Chinese
would gladly buy bills of exchange rather
than use the inconvenient method of ex-
porting coin. as long as exchange can be
bought at the actual cost of shipping coin.
plus the premium for insuring II. and the
loss of interest while IN transit. with rea
sonahle brokers' charge for his trouble.
But whenever for any reason exchange is
any higher than that, the usual and proper
course Is to remit the coin. II our cur
rency were in pounds. shillings, and pence.
they ought to be of the same actual value
with English coins: as it is in dollars and
cents. they should be Of the American
standard of value. Shutting our ewes.
to the fact that our principal exports are
payable IN American gold coin. and there
fore that by making that coin our national
currency our exchange would cost pre-
clsely what It costs to send coin to San
Francisco with the addition of the brokers'
profit, we have persisted in policy which
keeps or sends United States gold out of
the country. We have committed the eyre
Slous error Of making coins current here
at more than their actual gold values. for
the impossible end that gold may not be
sent off. And now, after proving conclu-
slvely that such course illustrates. in
stead Of accomplishing the ostensible OBJ
jet of keeping gold in the country. we
have made the equally egTegious and
equally unnecessary blunder Of securing
a coinage which viii pass elsewhere only
at Its market value as bullion.
The one or two brokers who control our
exchange may OF may not be able to keep
the rate low enough to enable the commu
nifty at large to pay it and keep on doing
business upon an independent footing
But whether they can or shall furnish ex-
change at living rates, or not. how fool
hardy it Is for a country to hamper
itself with a currency which places its PEG
pie literally at the mercy of exchange
brokers The strain Is too great for any
community to bear.
1t Is not impossible that the recent coin
operations may be a blessing in disguise
1t Is doing by wholesale that which had
been going on at retail for several years.
This coin as It Is said. Is introduced with
out payment of duty. being. consigned TO
the order of one of the Ministers. for gov
eminent use, and by him transferred to
the importers; but the imposition of the
ten per cent duty would merely add one
hundred thousand dollars to the public
treasury. while the effects of the coin
itself upon the rate of exchange. would be
no less evident and sudden. The position
has now become so clearly defined that it
may lead the way to thorough reform.
No argument Is SO cogent as that of ex-
peTlence
1t viii do no good however, to send off
foreign silver to be replaced with Hawai-
ian coin. as long as we retain silver cur
rency with which debts of over five dollars
can be paid Such a currency NAV as well
be composed of sols and pesos as ANYTHING
else. 1t will stay by Us with vengeance