The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1885-02-14
A REVIEW OF THE CURRENCY
QUESTION.

in the community on the silver ques-
ton just when it was hoped that the !
measures taken to relieve everyone !
from inconvenience would allay ap- |
prehensiens, and render loss to indi- |
viduals impossible. The fresh diff |
Guilty has been occasioned by the
action of Messrs. Bishop & Co., at
whose virtual dictation the mercan-
tile firms of Honolulu have declared
their intention of refusing to accept
the Certificates of Deposit which
are in circulation in payment for
debts over ten dollars. We have
no hesitation in calling this reso-
luton a conspiracy to deplete the
pockets of the public, and we hope it
will meet with its just reward as
such. We quite recognize that many
have joined in it with no sinister in
| tention but these have been misled
by others.
Everyone is naturally inquiring:
"What is the matter?" Under the
circumstances, a review of the history
of the Currency Act of 1884, and of is
working, may prove useful. The Act
was framed by committee who GER
taInly took a good deal of pains to
inform themselves en- the subject.
They were, however, grievously mis-
| informed as to details. OF all the
| premises on which the Act was
| founded only one was sound This
was the desirability of adhering to a
gold standard of currency here, be-
cause almost all our commerce is with
| places where such a standard is main
| tanned. AS to what the actual con-
ditiOn of the currency of the Kingdom
then was, and as to what measures
fer bringing about the change to such
a standard of legal tender as the Act
contemplated were necessary, they
were badly misinformed. It was
alleged to the committee that more
than $SOO,OO0, probably more than
5000, 900, of those foreign silver coins,
which it was proposed to put out of
circulation, were in the country.
These coins the Treasury was en-
powered to gather in by giving Ha-
waiian silver instead of them, aud was
then to sell, under certain defined
conditions, for gold coins of the United
States. AS it turned out, but little
more than half the expected amount
of foreign silver coin was forthcom-
ing. In the same proportion, the
expected supply of gold coin from
this source fell below what was looked
for. This short supply was still fur
ther reduced by the failure of one o.
the firms who purchased the silver
coin to comply with the terms of the
contract itentered into. The Govern
ment were too easy with the con.
tractors. It allowed them to deposit
silver certificates instead of the Ha'
waiian Government Bonds called fol
by the Act as the security fer faithful
fulflment of the contracts. The Gov
eminent believed in the good faith o.
, the men it was dealing with, and 81
far as the one of the two contractor:
is concerned, was justified in in its
reliance by the faithful delivery in
gold coin of the proceeds of the silver
sold. In the case of the other con.
tracing firm, Messrs. Bishop & Co.
only little more than half the pro
ceeds were delivered in gold and fol
the rest, which amounted to no les:
than 800, 10000, the Government were
quietly told that they might keeI
that amount of the silver certificate!
deposited as security for the due de
/ livery of the gold, or, if not, Messrs
Bishop & Co. would, on the first o
r December last, present said certificate
r and demand their redemption in golC
coin. OF course there was an excus,
2 to be advanced for so glaringa breach
5 Of contract. 1t was stated tina
t Messrs. Bishop 81 Co. had discovered
that Mr.. Hebron and sundry othe
! persons were holding silver certifi
: Gates to more than the amount o
| $1OO,O 900, with the view of presenting
: them at the Treasury as soon as tn
2 Act came into force, and then ship
e ping the coin to America to NEE
= liabilities there. To prevent thos
2 gentlenen from taking this cours
I they had satisfied them with exchang
= on San Francisco, and then--di,
? exactly what they had professed t
t be so anxious to avert-drew $1,000
q gold from the Treasury.
t Let us now consider dates little
: In the first place the 100000 gol
e which Messrs. Bishop & Co. failed t.
It deliver to the Treasury was not her
within the specified time (1st Dec
= it did not arrive until 8th Dec. Whe1
e it did come, it was not as it shoul
o have been, according to contract
n consigned to the Government, but t
1 Messrs. Bishop & Co. Their reter
d ton of it was, therefore, premedi
# tated long enough before 1st Dec t
e enable them to give orders that
= should be consigned in this way. o.