The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1888-07-24

duty it is to examine into the circum
stances, and, if he deems it advisable, car
ask the House to make the necessary ap
preparation. Recommended the petitions
be laid on the table to be considered will
the Appropriation bill.
Signed, A. Jaeger, P n Makee, C. Der
lehman, j. Nazareta, and adopted.
The same committee reported on petit
tions for sundry improvements, not II
Honolulu or vicinity: D for 81 500 fol
roads in North Kona. ~ for an appropri
alton for bridges on Molokai, (3) for 81 ,0OC
for improving the harbor of Hamoa, Hama
Maui, (4) for a mail road around Lanai
(5l for $4,000 for roads on Lanai, (6) FOL
So, 900 for bridge across kaneohe stream
90 Tor 81 500 for roads at Honuaulo, Maui
90 for $500 for q breakwater at Makena,
(9) for $1,000 TO build bridges and repair
roads in Koolauloa, Oahu, l10) for $1,000
for roads and bridges in HamAkua, (11)
for $50 900 for wagon road from LahalRa
to Waikiki, Q2) for bridge at keanae,
Koolau, Maui. OBJ that the English school
house at KeanAe, Koolau, Maui, be en-
larged, I'D for IS 900 for q road from He
leieikeohe TO OUpuola at Koolau, Maui,
(l5) that the bridge at Keanae, Maui, be
built shortly, (l6) that the Road Board OF
the island OF Oahu be abolished.
As to the last mentioned petition, Com
mittee do not ind that the Road Board
has yet had time to demonstrate whether
it is useful body or otherwise. The 10th
petition. as above, they recommend to be
laid on the table and the other fifteen to be
considered with the Appropriation bill.
The report was adopted.
Rep: F. Brown reported the Savings
Bank bill printed
I'll Tl,o Efnonpa fam
mittee's report on the Commercial Paper
bill:
To the Hon. W. r. Castle, President OF the
Legislative Assembly,
Sir,-The Finance Committee to whom
was referred the bill introduced by Noble
Waterhouse TO prevent the issueOf Com
mercial Paper as circulating medium,
beg leave to report that we have had the
matter under careful consideration, and
have held conference with leading business
men in town on the subject.
The subject of currency is very impor-
tant one and should have the close atten-
ton of the Government.
We recommend the adoption of this bill
with the following amendments: That in
the first and second line, Section l. the
words "or pass" be stricken out, and in
the second line the words other than
foreign bills of exchange" be inserted be-
tween the words bill" and" order" and the
words " payable to bearer in the same line
be stricken out. The Section will then
read:
Section l. Any person, corporation or
of persons who shall issue any
note, bill (other than foreign bills of ex-
;hange), order, check, or certificate OF de-
post, in any sum of money with intent
That the same shall be circulated as cur
'eney shall be guilty of misdemeanor, and
shall for every offense be punished by
inc of fifty dollars.
The words payable to bearer" would
negative the intention of the bill, since
With that wording, private certificates
,ould be issued payable to the order of the
makers and be Endorsed by them.
The bill so amended is almost a tran
script of the Massachusetts Statute, and
eemS to be no more or less than is requi-
lite to protect the public against the issue
If illegal and unauthorized paper money,
ind to be practically the same legislation
Is is found in the United States.
1t is undoubtedly true that the issue of |
liver certificates would be convenience |
o the public, while there is surplus of |
ilver coin, but if private persons or bank |
ng houses are allowed to do the business |
II bank of issue, it would be necessary |
hat a new legal tender Act and also |
Banking Act be passed.
But we are of the opinion that to author !
re even the Minister of Finance to issue |
liver certificates of denominations of over |
10, and to make them legal tender, is to |
10 away with gold currency, for the sim
lie reason that silver is cheaper than gold, |
nd if made legal tender for larger sums |
han $40, would inevitably drive gold out |
f circulation and force up the cost of |
Oreign exchange.
Its evident from the demand for gold |
DIN now shown, by the preference every |
7here given to receiving gold and paying |
ut silver, that the present volume OF /
l ,000, 900 of silver coin is larger than can
e used as circulating medium for debts
ot exceeding $40. 1t is useless and pro-
ably mistake to disguise this fact, by |
sSuing certificates payable in silver coin In
arger sums than $40. The only remedy
Or the evil of an excess of silver coin is an |
Increased demand for it by an increase in
he volume of business transactions involv-
" not over $40, or else by decreasing the |
olume of Hawaiian silver coin now in ex-
itence.
The too prevalent credit system has
luch to do with keeping silver in excess.
ash payments for all small purchases
'ould keep and therefore necessitate a
lrger amount of silver coin in circulation.
1t is hoped that as the cash system shall
lore and more be adopted, and as the
eneral business activity OF the country in
reases, the pressure of a surplus Of silver
Din will disappear.
We are of the opinion that the wisest
lethod of obtaining relief will be to reduce
he amount of silver currency by at least
zoo, 900. This would entail an expense of
OF less than $4,000
Chapter S5, Acts Of 1885, states that all
silver certificates and all certi-
Gates authorized by that Chapter, except
o certificates, are redeemable on demand
Q. s. gold, and when so redeemed are
.quired to be cancelled. No certificates
ave been issued under this Act, but of
'rmer issues there was outstanding,
.arch 81, 1888, $685., 800 in Government
.rtiicates of deposit represented by a cor
spending amount in the Treasury in
liver coin.
As this coin Is all silver the Government
not in a position to meet their obligations
lder law to redeem said certificates in
nited States gold coin. Moreover, as the
rtiicates of deposit which represent this
Iver are mostly in denominations over
0, to release this silver and put it in cir
llation by redeeming the certificates,
ould only add to the silver coin now in
rculatIon and increase the already super
,und4nt currency for transactions under
0.
BY Section of chapter Is of the Acts of
81, to regulate the currency, repealed by
apter IS Acts of 1886, the Minister OF
nance was authorized to keep the equili-
ium between gold and silver coin, bv
lrchase of United States gold with silver
= L. II. |