The Hawaiian gazette., 1885-02-18
THE TRUTH OF IT.

n N. r
woven as to make it difficult for those not fully
informed to distinguish one from the other.
The two articles in the 4dreTfiscr, headed res
Pectively "The Currency" and "a review of the
Currency question" are so spteful, vicious and
personal in tone, to put any reasonable person
on his guard, and they prove cur first statement
They are evidently intended mainly for foreign
market partly to excuse the action of this govern
ment as well as to show the zeal of the 1drerisei
In the cause of Its masters abroad.
Any disturbance of the Currency is likely to be
damaging to business for while even if change
be desirable.
Il is well known By those acquainted with the
firm of Bishop d Co., at least with Mr.. Bishop
that he not satisfied with the Currency-law or
with the currency it was before the present
law was passed, that he considered change in
evltable and yet bad dread OF the transition
and of the large expense of starting fairly on a
gold basis and then of maintaining it.
Since the present law came into force Messrs.
Bishop Co. have, in conservative manner
worked steadily towards its enforcement-but in n
gradual way
On the ist Dec. they had large amount in
Treasury Certificates, and were owing, of course,
largely to depOsitors, their interest in the free
circulation of such certificates a very impor-
tant one.
They were holding, also, in certificates, payable
only in silver (Sl0l-considerably more than any
o ther house.
By the mail which left on the LIST Dec they sold
Thousands of dollars of exchange and took pay
ment in silver. From that date until the present,
it has been clearly for their interest to have the
credit of the certificates maintained until a part
of the Hawaiian,silver could be exchanged for gold
as they were of the opinion that if the Currency
Act to be enforced, it could not very well be
done without reducing the umount of silver coin
which is not legal tender and replacing it by coin
such as would be legal tender a thing contempla-
ted and provided for in the Act.
They felt the Importance of getting more gold
from abroad and of retaining in the country the
gold already here-and IN order TO do the latter
they overdrew their own account largely and in
duced others to do the same and thereby did pre-
vent some large sums from going away, hoping all
the time that the Government would try to carry
out the law, as far as possible by getting coin
from abroad to keeptheir certificates current and
safe.
Messrs. Bishop d Co., could not control the ac-
ton OF others nor prevent demand for gold, nor
could they refuse gold to their depositors but as
far as they could they made those demands as
light as possible. When exchange was scarce and
high, some OF our people ran into debt abroad,
and others saved up certificates of deposit, both
waiting for the 1st Dec. when exchange would be
lover, or gold obtanable for shipment. The demand
for exchange is said to have been very strong ever
since, SO that there has beenno surplus with which
| to purchase gold-and the Government has done
nothing towards getting any, except for the uncur-
| rent coins, but the Bank, G. Brewer Il Co., and
Castle and Cooke, have each imported gold.
Bishop d Go. did not ship away the uncurrent
coin for the government, nor did they promise to
import any gold coin before the 1st of Dec. to be
consigned to the government. They had one
third interest on the profit and expenses of the
VIII the parties who did make
the shipment, and deposited Government bonds
as security. They shared in the expense of all of
the gold imported for the Treasury, and they i'm
ported all the gold that theyseyer engaged to i'm
port. They gave their certificates for S2l0 coo
payable in Gold on demand and did not wait to
have it demanded: but, being ready to pay it with
gold which they had in hand; took it (their GER
tlhcatel from the Registrar at the Bank ON Dec. A.
paying him SlOO,OOO in gold and $4,000 in Trea.
sury certificates.
They would have paid the gold earlier had it
been required. They would then have sent the
whole $4,000 in gold to the Treasury had thew
been requested to do so, but they would have
drawn half of it at least, the same day or soon
after, as they had right to do without violating
any promise or obligation.
They had not promised that nobody should
draw any gold from the Treasury for Certificates
or that they would not under any circumstances es
do so themselves, they had to guard their own
credit, and protect their customers
It was expected that quite large amount of
gold would be wanted Immediately it could be OBJ
| tanned, and that considerable amount would 90
away because of the scarcity of exchange, to say
nothing of the drain towards China.
But the amount wanted for remittance was larger
than was anticipated. Three parties held $lS0,000
which from choice or necessity they would send
| away-ln exchange, if to be had on fair terms or
otherwise-in gold. Other large amounts of ex-
traordinary remittances had also to be provided
| for.
Bishop d Co. arranged to satisfy all, and instead
OF sending several parties to the Treasure ty bring
gold thereby giving the appearance of creating a
run for gold, they took the certificates, and used
$4,000 in the settlement of their own certificates
In the main this was an unexpected transac-
tlon, and was inconvenient to manage. Bishop d.
Co. tried to keep the money here, by offering some
good securities held by them, but did not succeed
Those who know anything about banking do not
need to be told that the banker has not the same
control of his funds that merchant or mechanic
has, but must be ready to pay depositors when
they call for their money, and to pay in legal
tender if required
The DOd in the ba NAV I,n said H., oIg,,,, q, ,
large number of people, and any one who has
been there often could see that it was being used
part of the community has been trying TO
carry out the law, and has been paying gold, and
all like to know that they can get gold if they
| ask for it; but the Government and its depend
ents,, and some of more consequence, have been
strongly opposed to the enforcement of the law,
and seemed TO wash that others might think that
black was white, or that non-legal tender silver
worth about 80 cents to the dollar outside of Ha-
wan mel, was Just as good and safe rs U. S. gold
the world over.
What better proof could Bishop & Co. have
given of their wish to maintain the currency of
the Treasury Certificates than they gave by taking
week before last $4,000 in those certificates for
collection draft on the Government for irimigra-
ton account, to remit which they have bought
exchange and paid gold for it, ye: when they
asked for $4,000 in gold for those same oertiii-
/ Gates they could not get 1t.
When they took those certificates they could
have claimed gold and should have done so. Had
It not been forthcoming, the Government would
have been again dishonored, if such government
be dishOnored.
The memorandum of proposed agreement which
has been published was solicited by parties who
for weeks had been trying to find out some way to
induce the Government to relieve the community
by an exchange of surplus silver for much wanted
gold and to aid them in so doing. The Document
was not submitted to lawyer, but it seemed TO
embody the spirit of the law and was so nearly like
what had been suggested by members of the cabi-
net that it was offered for consideration Instead
OF being rejected at sight it was more than
week before the committee received an answer
In the meantime Bishop d Co., were convinced of
the unfrendlY disposition of the ruling spirits in
the Government towards them. This made it i'm
prudent TO put themselves in the power of the cabi
net and they had written to the committee with
drawing the proposition.
Law breakers are very likely to have a hard time
of 1t whether they act as principals as servants
and they often try to shift the blame of their viola
tions on to others.
Nobody can be more sensible of the inconvenience
and danger of the present situation of affairs than
Bishop Co., nor can any one be more desirous
OF hnding proper way out of the trouble If the
Government, however, belongs to a clique and not
to the nation and does not intend to help then
those In authority must take the consequences.
Some people seem TO think 1t is the business of a
bank to take any kind of money, good, bad or in
different Further, that it should always be ready
and willing TO repay only good money whatever it
may have received. And lastly, that it is its busi
ness to bear its own losses and those of everybody
else. 1t is to be treated belonged to NOBODY
The AdreTtiser seems unhappy because Bishop d
Co.. were not caught with large sum in silver on
December, 1st 1884. That amiable sheet may be
comforted. The sum which they did hold would
not seem trife even in the Government vaults
or the p. G. 4drerfisers safe. 1t may be still more
comfOrted to know that Bishop and Co, are also
the unfortunate holders of repudiated certificates
to no inconsiderabe amount
full report of the state of the treasury of these
Islands would be interesting reading for the
Finance ministers in Washington, London. Paris
and Berlin.
Important Correspondence.
The following correspondence is published by
permission of Messrs. Bishop d Co. 1t needs no
comment, and is in itself an answer to the slam
derous remarks which have been made. The
schedule referred to in the Minister of Finances
letter has already been published by authority.