The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1886-07-20
Horner vs.. creiehton.

EDITOR GAzETTE:-Please allow me to cri.icise,
through the GAzETTE. criticism, or rather bur
lesQue made OF my pamphlet on Hawaiian bank
king by the weekly -AdUeTfser IN ITS issue OF the
18th of last month.
The Advertiser SAYS my plan is far too crude TO
merit serious discussion. but Il appears not too
crude 10 burlesque and falsify. The following
from Its columns Is a specimen. Ihe writer says:
f'Mr. Aorner's IDEA Is, when any person
wanted small advance of legal tender Tor tenn
porary purpose, be would 60 10 the National Bank
and pledge his wife's piano or other personal ef-
fects, etc. Let me here say TO the iareiTiSe' that
such are not Mr., Horner's views, neither IS such
an idea oppressed or implied 81 fhe pdmpbiet from
which he pretends 20 quote.
There are only three different kinds of securities
the directors are allowed TO receive for public
money. under this bill, and they are all plainly
named in the pamphlet. Personal notes ana per
ishable property are forbid by the bill. See Sec
ton >. Such property Is moi considered good 10
secure public money, as money issued upon per-
sonal notes or perishable property would cease TO
be a representative of value upon the destruction
Of the property or the bankruptcy of the indiyid-
ual. Hence il would not be good security for pub
lie money. All perishable securities are left TO
commercial banks and private individuals 10 secure
their loans. The National Banks hold no exclusive
right over the securities named IN the bill. but the
bill confines the directors Of the Bank 10 those
securities only-wIth them II would be those or moth
ing; hence what money they did circulate would
always be good and an honest representative OF
value-as all money should be. Neither the green
back the gold silver coin OF the United States
or any OF the Hawaiian currency of to-day, Is
representative OF value, as nothing Is now known
10 exist the value received Tor II by the govern
ments when IL was put in circulation al least the
governments hold nothing THAI the currency repre-
sents hence none of II is representative of value
as ell money should be. But had II been put II
circulation as this bill proyldes-2 property ample
for its redemption would now be held BY the Ma
tional Bank, and that would be the property II
represented, thus making II representative Of
value. The government would now be receiving
yearly interest OF four per cent on the whole ISSUE
thus making quite q difference between being
lender receiving interest, and q borrower paying
interest, as the government now does
The Advertiser attempts to reason by saying 1T
is true that the scheme contemplRtes coming
money, but as provision Is made for purchasing
bullion and erecting and operating mint, We are
reduced 10 the simple proposition, that the only
money IN use shall be certificates of national in
debtednessn
dieested the above objected point and con-
clnded that for the present there was as much sll
yer coin, such II Is, now here would be wanted
for many years, and the only thing required with
regard 10 II was 10 make II OF better quality. which
this bill provides for and our present law Is sup
posed 10 provide all the gold coin, hence no sppro
priatiOn Is yet required for bullion or mints. As
soon as the directors OF the bank discover def
cheney IN their regular order Of business II viii be
time enough for them TO ask for an appropriation
or otherwise supply the demand.
The 4GrariiSer gives no reasons but continues
schemel Is very ridiculous and absurd" Yet II
acknowledges the scheme might possibly work if
Hawaii had no commercial relations with the out
side world What particular commercial rela-
tons that our currency does would affect In the
outside world the writer does not IN form me even
as burlesQne. So / think he sees nothing. He
knows as well as anyone that our King and Par
lament have no more authority 10 make money
TO measure the values produced in Europe, than
the English Queen and Parliament have TO make
a currency 10 measure the values produced here or
IN America.
Finally the Adrer9issr says: Mr.. Horner's plan
ignores nearly all the factors in the mon
etsry problem VIII the 4GuerfiSsr be kind
enough 10 point out few of the factors II the
monetary problem ignored by the psmphle; bill.
That Is factors or problems necessary TO be solved
in order 10 make better domestic money under
this bill than the world has ever known.
The wrlteS will ind, nNaibereI 10 tie pamphlet,
more tsctofWor monetary problems that would all
be solved by this National Bank than he ever saw
anywhere else, summed up in so small space. snd
think the combined powers of all the money sys-
TENS ths gentleman Is acquainted with, aside from
this, could not solve the fourth part of them. Yet
the writer SAYS ignore nearly all the factors In
the monetary problem" l claim that this Ma
Onal Bank If established would solve thirty
out of the forty-tvo problems numbered IN the
pamphlet
I think the editor OF the AdreyfiSer caHAof p59us
% the ooH.ruFy. Neither can be name money
system that would solve even eight ont OF the
forty-two problems numbered IN the pamphlet.
JNo. N. HOENEE.