The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1886-06-04
T Fl e
FRIDAY
THE CURRENCY BILL AGAIN.

AS we desire that the Currency Act
should be final measure, and there
fore satisfactory to the business and pro-
ducing interests of the country as a
whole, we take this occasion to point out
what appears to us to be radical defect
in the bill under discussion, but which
is likely to escape detection on a hasty
or casual reading of it. Indeed, we go
the length of saying that if the bill passes
in the shape it has been reported from
the Select Committee, the currency OF
the Kingdom will be left precisely s.s it
was when the Legislature passed the law
of 1884, and appropriated $4,000 to get
rid of foreign silver coins in circulation,
substituting United States gold coin
therefor. Yesterday we pointed out
serious defects in the working machinery
of the bill; to-day we shall indicate a
provision which clearly embodies a
vicious principle, and is at least incon-
sistent with the avowed policy of the
measure.
The bill, as reported, deprives foreign
silver coin of the functions of money, but
it makes it legal tender at the Treasury,
"at its bullion value" for all Govern
ment dues, duties and taxes (section 81.
BY section 4 the Minister of Finance is
called upon to redeem all outstanding
silver certificates, over the denomination
of $40, in United States gold coin. But
if Government dues, duties and taxes
may be paid in bar silver, which is the
practical effect of section 8, where is the
gold coin to come from to redeem the
silver certificates and meet all other law
full demands upon the Government?
Manifestly the Treasury cannot redeem
in gold unless the Government revenue
is payable in gold, or in its equivalent
gold certificates.
Furthermore, it is impossible to arrive
at the par value of silver bullion, which
is constantly fuctuating at London,
where the price of silver in the COM
mercial world is fixed daily. Then,
again, what is the Treasury to do with
foreign silver coin taken at it's bullion
value in payment of dues, duties and
taxes? 1t cannot reissue it. 1t cannot
possibly sell it for gold except at a heavy
discount; in which case, who is to stand
this loss, and to what account is the de-
ficieDcy in revenue and assets so created
to be charged?
These are not idle questions by any
means. The gold law of 1884 cost the
taxpayers of the Kingdom $50, 1884 81 to
retire from circulation $524, $50 81 Next
can dollars, five-franc pieces, trade dol
lars and ''uncurrent COINS" imported
from time to time on speculation and
circulated as dollars, half dollars and
quarters. Having gone to that expense
to put the currency on a sound basis dur
ing the last biennial period, the Legisla-
ture is now recommended to pass a bill
which would offer a gold premium on
the importation of foreign "uncurrent
coins'' TO the loss of the taxpayers. Sec
ton 8 should be stricken out of the bill.
1t has no business there, and is probably
there by an oversight The policy of the
bill is to restrict silver currency to the
existing Kalakaua coinage; and not to
embarTass the Treasury and paralyze
trade by permitting the payment of dues,
duties and taxes to the Government in
foreign silver coins at bullion value,
which, as a matter of fact, cannot posi-
bly, be determined from day to day.
These are practical suggestions which
should be considered by the Legislature.
If they are not considered and the bill
passes without amendment as indicated
by US, the Currency Act of 1886 will be
a far greater failure than was the Gold
law of 1884, because it will be impossi-
bic to secure a gold circulation except
by paving the difference in exchange
between "uncurrent silver coin" and /
United States gold coin, upon rates to
be invariably fixed by the speculative |
silver importers, who alone would have |
sufficient inducement to buy it back
again in bulk from the Treasury. We
saw speculative silver importers, because
nobody else could take advantage OF the
section. Men do not travel around the
world paying freight and insurance on