The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1885-01-10
THE CURRENCY ACT.

Under the heading Mysteries of
Hawaiian Finance" the San Fran
cisco Bulletin of the 30th uItimo, has
a clever and amusing article on the
position of affairs here in regard to
the currency. The writer has smartly
hit the weak points of the Currency
Act, and his remarks appear to US
well worth reproducing az eGtenSo.
They are as follows:
"The Kingdom of Hawaii has gone
and set up the single Standard of
Gold. Tt has Joined hands with EGG
land and Germany. Whether under
such adverse circumstances there is
any chance for the rehabilitation of
silver, the experts alone can deter
mine. It was only q short time ago
that Greece signified her intention to
retire from the Latin Union and leave
the white metal to it's fate. It IS an
old saying that misfortunes never
come singly. The detection of the
Mediterranean Kingdom we might,
however, have stood. But with Ha-
wall added, the cup may be regarded
IS full.
"The law under which this change
was Effected was approved on the 18th
day Of July LAST, amp went into effect
On the first of the current month.
Section of the Act provides that
after the aforementioned date all
&c nf
America shall be the standard and
legal tender at their nominal value in
payment of all debts, public and pri-
vate, within the Hawaiian King
DOM Section 2 provides that the
standard silver coins of the United
Of America, and the silver coins OF
the Hawaiian Kingdom shall be,
from and after December 1, 1884, legal
tender at their nominal value for any
amount not exceeding $10.' Of course
that settles the business. Silver, by
this law, is reduced to the position Of
Token Money, the same as it is IN
England and Germany. Under such
q rule it matters little how much bull
Iien the silver coins contain. Our
halves aud quarters, which do not
contain as much silver as the standard
dollars, would answer the purpose Of
the Hawaiian financiers as well as
the latter.
"But there appears to be sone fric-
ton in the execution Of the law. In
Section 4 the Minister Of Finance il
directed whenever it shall appear
that there is such an EXCESS Of silver
coins in circulation, as disturbs the
equilibrium between gold and silver
coins under the provisions of this Act
In order to restore such equilibrium
to replace sufficient silver coin from
any silver coins under the provisions
OF this Act, in order to restore such
equilibrium, to replace sufficient sill
yer coin from any silver coin that
may be in the Treasury, either Is
Government realization or on deposit
on account of any silver certificates
with gold coins of the United States.
What the equilibrium is, which being
disturbed, is to set the Finance Minis
ter at work, is not positively known
outside of Hawaii. Questions of trade
and industry can alone determine
how much silver is needed for the
purposes of exchange when silver is
only legal tender for $40. The pro-
portion which suits England or Ger
many might not do for Hawaii at all
Further, how the Finance Minister is
TO determine when there is an excess
of silver in circulation, must be re-
Rarded as among the ArcoraG of Ha-
Svaiian finance. The fact could only
be reached by making everyone show
how much silver he had on given
day. But it is not seen how any
financial cataclysm could occur even
IL the assumed equilibrium were dis
turbed. In all other countries, il
there is an excess Of coin of any des-
cription it is turned into the arts or
exported. The presumption is, that
An Hawaii like conditions viii be
found.
To perfect the scheme of setting up
the single Standard of Gold the Min
lister was also directed within sixty
days after the approval Of the Act to