Daily Honolulu press. [volume] (Honolulu, Hawaiian Islands) 1885-1886, 1885-09-26
The Silver Problem.
Treasurer Jordans Action Criticized
Scarcity Of Small Bias.

Scarcity Of Small Bias.
Another important phase of treasurer
Jordan's effort to circulate standard sill
yer dollars and subsidiary coin has been
developed II was learned yesterday
that the supply of legal tender notes
held by banks in this city has been
decreased in the last two weeks nearly
So, 900. This extraordinary de-
crease eoccasioned much comment among
ong the presidents OF, banks represented
in the Clearing House Association.
Comment is not favorable to Jordan's
construction of the clause in the silver
bill providing for the issue of silver
certificates deposited in lieu of standard
sjlvers dollars. A bank president said
last night that Jordan's construction OF
the clause, while undouptedly within
the law, nevertheless is decidedly too
rigid at this season of the year, when
cotton and other crops have to be moved
by money supplied by Now York banks.
The big banks in this city," continued
the bank president, care now sending
South every week everyware from a
quater to half million apiece, in five, ten,
twenty and fifty dollar bills. We are
compelled to do it because we haven't
silver dollars to deposit with the Sub
Tresury in order to get silver certificates.
We will not handle silver dollars. We
will not even take advantage of the. law,
which gives us the right to make them
part of our reserve. Last year
General Spinners construction of the
clause gave us $a3,ooo,oo in silver
certificates in lieu of deposits of gold.
Of course there was an evasion of the
law, but it tided us over and assisted
Southern merchants. and everything
was serene Now we haven't any sill
yer certificates. Our supply Of small
bills is daily growing less, and if some
thing is not done we shall have to fall
back on our gold supply. OF course
we could send them silver dollars, but
southern merchants will not stand the
expense Of handing silver. Why, l
know OF bank preeidents chasing around
in cabs, securing the city for small bills
for Southern customers. The Sub
Treasury cannot supply us, and we are
in a preety fix, all because Of Jordan's
Interpretation of the clause relating to
the issue of silver certificates" 1t is
declared that there is movement on
foot by which the effect of Jordan's
order will be annulled Certain bank
presidents suggest it would be possible
to deposit gold treasure with the Sub
Treasury and receive in return standard
dollars, and the next day return silver
dollars, and get silver certificates. The
gold would remain here, the silver certif-
Gates wouldbe returned in time,
and the force of Jordan's contract
would be broken
The World says, The decrease in
the amount of legal tenders held by the
banks is explained by the bankers by
the fact that large sums of money are
being forwarded South by the banks to
move the cotton crop Last week $4,-
900, 900 was sent South and by the end
OF this week probably $4,000, 900 more
will be forwarded. The bankers say
the amount is sent in small denomina
tions, ranging from SIS to$5o.
The Financial CHOuniele says: New
York bankers thing the gold movement
from abroad which began this week,
is to reach large proportions, but in
view of the uncertainty which surrouds
the future ofthe silver issue in this city
country, we think the shipmen to this
will at least be largely delayed. The
recent fall in the price of bar silver in
London is, for good reason, attracting
wide attention in financial circles.
The decline has been steady. The
price is now 47Ssd per ounce, on which
basis the bullion value of the standard
dollar is equal to about SO cents. The
fall is due to silver being poured into
India from every part of the world in
an increasing volume, and as conse
qencc the large amount oflndia Council
bills offered are in excess of the
demand
WASHINGTON, Sept. ra.-1reasurel
Jordan says the discontinuance OF
assaying and the analysis of ores al
nints and assay officer is due to the
insignificance of revenue thereirom
which is entisely out of proportion to
the expenses extending the work. The
practice is without sanction of law ano
is open to many obvious objections.
Convenient as it may be to the public
in one or two instances, as in the
Southern States, where private assayinl
] establishments are few, it is found II