The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1891-06-02
Horner's Banking Biu-No. re

Mr.. EDITOR: l must be excused
for referring again to Secretary
WINDOWS great money speech, as
l wish to make further comments.
He tells US plainly what an Ann
erican currency should be to avoid
coming disaster. l repeat, it must
be "sound in quality, adequate in
quantity and elastic of volume to
adjust itself to the varying neces-
sites of the people" He further
states, could such u medium be
secured the grave commercial dis
asters which threaten our future
might be averted."
The Secretary's opportunities for
acquiring financial information
have been great and powerful
enough TO convince him that Am
erica requires a different system Of
money than the "cast.iron system"
she now has. His ideas seem clear
as to what kind OF q currency is
there required, but his ideas were
not clear rs to money system
that would produce that kind of
currency, or no doubt he would
have given 1t to the world at the
time he made his great speech.
However he has left an idea, viz:
That the United States bonded
debt should be IN part exchanged
for an incontrovertible bond bear
ing low rate Of interest and always
interchangeable at the will of the
people" This interchangeable
bond is DoUBLY provided for
in Horner's Banking Bill"
and has been incorporated in
his money system since 1874,
but q part of it is there called
certificate of deposit" not an Gin
terconvertable bond" We think it
would make no difference to the
permanent money supply of ma
ton, whether it be ''bond" draw
ing low rate of interest and con-
vertable into money at the will of
the holder, or Certificate of de-
post" drawing low rate Of inter-
est and payable on demand in
public money, the mere name does
not change the principle of the
transaction. So, if the "bond" or
the certificate" referred to above,
would be good to ingraft upon the
money systems of America to pre-
vent grave commercial disasters,
it would be good for the industrial
development of these Islands, and
good for the people of all civilized
countries to keep business alive
and prevent money panics.
There is no difference between
the Secretary and the above bill as
to the advantages of an inter-
changeab!e bond for regulating the
money supply of nation, but the
difference between the way the
Secretary suggests for getting up
the bond, and the way this bill
provides for it, are so marked that
a little criticism seems necessary.
The Secretary commences his
task by changing a part of the
Government bonded debt into inter-
bonds bearing "a low
rate of interest" After this work |
is done the bonds would be inter- /
changeable for money at the will |
of the holder. This could only |
be done by those who held
that part of the bonded debt
by the Government
to become interchangeable. The
would undoubtedly
have to perform the labor and bear
,he expense of the exchange and
get nothing in return.
1t Is supposed the Secretary sees
some way to persuade bond
holder to change his bond drawing
a large interest for an intereon-
vertable bond drawing a small in
-erest. l confess do not only by
The government paying the differ
ence.
There is one important objection
hat comes in here, Congress would
nave to declare that part of the
bonded debt selected for inter-
change ability, perpetual, if it is
'yer payable this regulation be-
comes only temporary.