The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1892-08-15
Cheap Money.
EDrToR BuLLETIN:
SIXTH ARTICLE.

EDITOR Bulletin
1t may be remembered that cheap
money, as defined by its enemies, is
any money whose intrinsic value is
less than its face value. There is
one phase of the cheap money ques-
tion which never seems to have been
noticed by its enemies, viz: the
positive necessity at times of nations
having some money, and cheap ma
terial was the only material avail
able to make il of Material wealth
other than bullion was plentiful.
but none of it was available as mon
ely, BY barter alone could exchanges
be made and that was cumbersome
and time-wasting. In these days
when money can be made OF any ma
terial by civilized sovereign law,
neither individuals nor nations are
willing to submit to the extra labor
barter requires in business. What
should be done to tide over the
crisis? The answer is obvious, hav-
ing no bullion they must coin some
of their credit or available wealth
into money, that was practical and
reasonable, and that was done by in
telligent, practical, live men genera
tions ago. The colony of Massachu-
setts in 1896 and l7I5, having neither
money nor bullion, coined its credit
into money, and that paper money
constituted its measures of value for
scores of years. The Continental
currency was also paper and was is
wants of the colonies were urgent,
it was Hobson's choice, that or
nothing" Poor as it was, it assisted
the colonies to independence, the
object sought. In 1897 the Bank of
England closed its doors against its
note holders, it could not redeem its
notes, but by permit of the Govern
ment the bank continued to issue
irredeemable, cheap money for %
years. The Government made these
notes legal tender. the Government
as we'll as the bank directors knew it
was paper money or no money at
all, as those times were considered
too dangerous for gold and silver to
uncover themselves. The issue of
that cheap money proved wise and
profitable policy for the English
people, as the nation was said to
have tlourished as never before dur
ing those years of cheap money,
notwithstanding its exhaustive wars
with the French at the time.
In America during the rebellion
all gold redemption banks failed, the
system of specie payments utterly
collapsed, all coin left the channels
OF trade. The Government borrow,
ed at home and abroad at great
sacrifice as long as its credit was ac.
cepted. The money requirements OF
the government were large and
urgent, it tried every plan known to
statesmen to borrow and supply it
self with money and, failing, there
was nothing it could do but coin its
own credit into money, which was
done. Thus the greenback was born
child of necessity, and the Govern
ment fought out the war to success:
with the assistance of this irredeem
able cheap money. 1t was that o.
nothing and time has shown it.
value. 1t now fills the place of Sc
much gold coin dollar for dollar, fo
all domestic money purposes, ever
to being an acceptable redeemer TO
the National Bank note.
What would the Century write
and others of his faith have done il
such money crises as those referred
to above. Would they recommend
issuing a paper currency which
brought prosperity to the troubled
land as did the wise men of thos,
times. Or shut their eyes, remain in
active and let financial ruin, povert,
and despair overwhelm their coun
try and its people.
JNo. M. HoRNER.