The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1885-12-28
THE CURRENCY QUESTION.

One million dollars in silver coin
is in circulation in this kingdom.
These are all Hawaiian coins and are
therefore non-exportable except at
great loss. They are current in no
country but this. With them no
debt can be paid to our foreign Gre
ditors. Their value in the worlds
market is their bullion value, which
at the present price of silver is
about 70 cents for the dollar pieces,
and less for the halves, quarters
and dimes. Our population of
5000 requires about S. per capita
in silver coin-to be used rs sub
sidiary coin, for convenience in
making change-with gold as the
principal currency. This is con-
siderably more silver per capita
than experience has found neces-
sary in other countries where the
gold standard obtains. At this
high estimate, however, S400, 900 in
silver is all that would be required
for change, if the gold law were
enforced. 1t is this excess of
5000, 900 of silver that is making all
the trouble in our currency at
present. The struggle between
debtor an! creditor is a constant
warfare. No one now pays out
gold if he can help it. Every one
pays out silver if he can possibly
make his creditors take it. Every
one in position not liable to suffer
from retaliation eXacts gold in pay
ment. This warfare is directly
traceable not to the law of 1884,
which is a good law, but to the fact
that there is glut of silver here.
If this was an {" elastic" currency,
that is, one that would flow abroad,
we would have no difficulty. But
it still remains here. The coasting
steamers carry the silver in bags to
the plantations and then bring il
back again to the Government trea.
sury. 1t is the most expensive
metallic currency that country
can have.
Liberal importations of gold make
no impression. Half million o
United States gold imported b.
Bishop d Co. alone, since the Is
Dec, 1884, makes gold no NOR,
fluent. The excess of our export
over our imports has no effect t.
make gold less shy. Hawaiian
silver has driven the American
silver all out of circulation. 1t re
quired no act of the Iawaiia
Legislature, to start it out of tn
country. The inexorable law that
"Am inferior money so tong as I
circulateS at all iuoaria6iy d,'ives
superior money ont Of circulation,
has done this, and this law is wha
keeps United States gold out o
circulation, and which will even
tually drive it out of the country
If five millions of United States gol'
were imported here, during tn
next year, it would not stay in cir
culation alongside of an excess o
silver of SG00,0OO. What is tn
remedy? 1t is Il simple one. TIL
law of 1884 provided for it. Sectio
A imposed the duty upon the Minis
ter of Finance, 4" whenever it shoul
appear that there is such an exces
of silver coin in circulation as di
turbs the equilibrium between gol
and silver" to dispose of silvt
coin and replace it with Unite
. States gold. Inc law OF loc
needs no amendment. The Go
ernment alone is responsible for i
failure. 1t has disobeyed the ma
date of the law. But it is not tt
late. 1t can be done now. III
prospects of the large crops II
1886 promise abundance of e.
change. Let the Government no
ship to the mint of San Francis'
half a million of Hawaiian sily
and bring its proceeds back
United States gold, and the la
would Immediately begin to wol
like a charm.