The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1891-04-28
Horner's Banking BiH-No. I.

Horner's Banking BiH-NO. IS.
Mr.. EDITOR: Secretary Window
in his speech just before he was
stricken down by death delivered
the following truthful words, viz;
"The ideal financial system would
be one that should furnish just
enough absolutely sound currency
to meet the legitimate wants OF
trade, and have enough elasticity
of volume to adjust itself to the
varying necessities of the people.
Could such a medium be secured,
the grave commercial disasters
which threaten our future might
be averted. These disasters always
come when unusual activity In
business causes an abnormal de-
mand for money, as in the autumn
for the movement of our immense
crops. There will always be great
danger at those times under any
cast-iron system of currency such
as we now have" We think any
one that has looked into the Amer
lean money system must agree with
the Secretary that it is a "cast-
iron money SYSTEM well qualified
to produce trouble. The money
systems of Europe and these ISL
ands are no better. The Secretary's
forebodings of future evils must
come to pass, if his suggested rem
edy is not found and put in prac-
tice.
1t must be observed that al
though the secretary had such a
clear idea of what should be done
to steer clear of future financial
evils, he proposed no sure plan or
system by which it could be
brought about. 1 wish to CLAIM
here that the bill heading this com
munication would fill every de-
mand of the secretary. 1t would
be a sovereign remedy for money
troubles in every civilized nation
on the globe that adopted the sys-
TEN.
This would not be a castiron
system of currency such as we
(Americans) now have" but it
would be a fountain of currency
that never could be dried and from
which all could draw that possessed
Government bond or gold or sill
yer bullion, or improved real
estate.
This system would furnish just
enough absolutely sound currency
to meet the legitimate wants of
trade" neither too much or too
little.
No one, we think, who has men
tally digested the merits of this
bill, will dispute that point, as in
all countries there are Government
bonds as durable as the Govern
ment that issues them, and real
estate as lasting as the solid earth,
and if a currency issue were based
upon such durable property at less
than its gold value it would be an
absolutely sound currency"
The secretary wants a "sound
currency and also an "elastic
one. That is be wants a system of
currency that can supply to. the
American industries every autumn
when their immense crops are being
removed, measured and exchanged,
one billion or more of currency
more than are required for busi-
ness purposes during the spring
and summer months, and then
when this currency is No longer re.
quired in trade circles to with
draw it without making its with
drawaI a disturbing element.
The above-named bill provides
amply for every demand made by
the secretary Tor sound and
"elastic " currency.
Section l of the bill authorizes
the money to be made.
Sec. 2 deslgnates what kind of
material to be used in its manufac.
ture and fixes the money value of
each piece.
Sec. 3 provides the way the
money must be circulated and the
security to be given.
Secs. 4 and 5 direct how the
currency must be redeemed when
no longer required in the channels
of trade.
The way pointed out by each of
the last two sections is ample to
redeem the whole issue, whether
it be little or much. So there is
one sure way pointed out in this
bill to make and circulate all the
money that may be required, and
two ways of sure redemption, either
of which is ample to redeem the
whole issue.
Let me ask, can any money sys-
tenn produce a better currency or