The Hawaiian gazette., 1885-03-11

By LAYING aside such denominations OF
money as dollars, pounds and francs, and
using in their place a uniform system of
weights of gold and silver of uniform fine
ness, a clearer understanding may be
reached concerning the nature and fHnc-
tons of coined money. Instead of express
ing values as we now do, we should then
speak of grains, pennyweights, ounces and
pounds of gold or silver of certain fine
ness.
81 is plain that 412I grains of standard
silver can always and everywhere be ex-
changed for 412l grains of silver, if in the
same form. But such exchanges would
never be made, for the absence of motive
for making them. If the same weight OF
silver were made into plates, it would be
exchangeable for larger amount of bar
silver, or (if the silver were coined at pub
lie expense) of coined silver.
An ounce of gold of Is carats fine il
made at some expense into jewelry can be
exchanged for more than an ounce of gold
coined at no expense to its owner. In each
case however, the idea of actual value ex
lists as much as it does IN ordinary barter
or interchange of things. People barter
or trade from reasons of mutual conven-
fence and preference A yoke of oxen is
given in exchange for one hundred dollars,
because the owner of the oxen prefers, or
needs horse perhaps, which he can get for
the dollars. The coin may be said to meas
ure or in one sense represent the value of
the oxen and the horse, but it must have
actual intrinsic value, as well as measur-
ing quality. II it were not for this, paper
1 10
cate that the oxen weigh one thousand
pounds each, for which paper the signer is
always ready to give fresh certificate to
the same effect, would be as good as any
thing, if the world could be brought
to place any value on such papers. Money
must either have value in itself, like coined
gold and silver, or else like some bills and
notes. be certainly exchangeable at fixed
time for things of value. As promises are
sometimes broken, and those who make
them die, coined money after all is usually
preferred. Gold and silver have gener-
ally and a uniformly understood and ac-
cepted value, are obtainable from the earth
with neither too great nor too little diff
Guilty, in sufficient quantities, and there
fore have thus far proved to be the most
convenient medium with which to trade OF
barter, buy and sell.
But 412l grains of standard silver can
by no human or superhuman process be
made the equivalent Of 400 grains of stand
ard silver in the same form; the former
cannot buy as much gold or anything else
as the latter can buy.
The labor requisite to obtain material
for house and for furnishing it is just
the same whether it is exchanged for 42t
grain or 412I grain silver dollars, or fol
gold eagles or sovereigns. The weight
and value, or purchasing power of 28pen
nyweights of Is carat gold are not in
creased by making it into two coins instead
of one. The labor and difficulty of obtain
ing the gold are factors in its value.
The products of Hawaii are exchanged
for gold coin. They will command NJ
larger number of American silver than O.
American gold dollars. But the purchas
ing power of American gold dollars il
greater in this country than is the pur
chasing power of the same number of sill
yer dollars, especially Hawaiian silver dol
lars. The existing supply of the latte
forces, or keeps the former out of circula
ton, causing a depreciation in its owl
value.
When this excess is removed, the rest o
the Hawaiian silver will have the sam,
purchasing power with gold, and gold vii
, freely circulate All that is needed is I,
start right. 1t is the first step which costs
but the sooner it is taken, the less it costs
and the less will be the depression in bus
mess.
1t is foolish to discuss such matters a
if they could be made to depend on per
sonal or partizan likes or dislikes The,
are as susceptible of pure reasoning as i
the fact that the angles within triangl
are equal to two right angles.