The Pacific commercial advertiser., 1892-10-26
An Answer to Mr.. CREIGHTON.

}. Creighton respecting "The Ha-
waiian Banking Act" which opin-
ion appeared in the Bulletin some
| days ago. [ looked over it care
fully at the time, but decided that
the part relating to the Hawaiian
Banking Act were such old chest
nuts that l had answered to my
own satisfaction time and time
again as they were urged by vari
Gus writers during the past fifteen
years. On that account | did not
care to answer again, believing the
historical facts referred to by him
were well understood by our island
readers, but as the same communi-
cation appeared again in the Bulle-
tin of Oct. 8, urging its Importance
as a justification, [ now wish to
notice it.
Mr.. Creighton, after making
some strong assertions against the
bill, remarks: 'But the foregoing
are simple objections to the details
of the BILL" So we, with Mr..
Creighton, will pass the details,
which may be easily amended if
faulty. to the consideration of what
Mr.. c. alleges against the principles
of the bill. He says: "The main
and fatal objection is to it's princi-
pie, x it is based upon the
fallacy that the State, by fiat, can
make or create money" We claim
that, and more than that, Mr..
Creighton. We claim that Govern
ments can make money by fiat,
and no other way; that Mr.. Creigh-
ton never saw a piece Of money
that was not so made-by the fiat
of some supreme authority; and
the same authority can make, loan
and redeem money, which is the
essence and principle of the bill,
and the Constitution grants that
right to the Hawaiian Government,
and to stamp it's money power upon
either gold, silver or paper. The
Hawaiian Constitution commands
'the King shall coin money and
regulate the currency by law"
Notwithstanding this plain COM
mand, Mr.. Creighton tells us that
it is "fallacy to believe that the
State, by fiat, can make or create
money" Yet the United States
and other countries have done what
the gentleman says cannot be done.
The United States takes 95 cents
worth of gold, ga cents worth of
silver, a fraction of cents worth
of paper, coins them into dollar
and, by fiat, declares each legal
tender for a one hundred cent dol
lar, as indicated by the stamp upon
their face.
Yes, we know Mr.. Creighton says
this cannot be done. Yet the Unit
ed States have "went and done it,"
and if Bill 7S becomes law the Ha-
waiian Government will also be
empowered to perform Mr.. Creigh-
toms impossible feat of making
good fiat money, and the value will
be fixed to it by law the same as
value is now fixed to Government
Bonds, postage, revenue stamps,
etc. But under the provisions of
Bill IS this money will not be
loaned to bankers only, and for one
per cent. per annum interest, as is
now done Nth the National Bank
currency of America, but it will be
loaned for four per cent. to every
citizen who presents the legal Sc
curity.
French Assignats," "Continen-
tai Currency" "John Laws Mis-
sissippi Scheme" and other fail
ures are ghosts of evil omen con-
jured up by the bullionists to
frighten the timid, and thus pre-
vent proposed improvements for
making, circulating and redeeming
money. Mr.. Creighton has referred
to them suppose as a warning to
show how much loss and suffering
must be endured by the people Of
Hawaii if Bill rs becomes law; the
| Queen, all the Nobility and other
important dignitaries of the King
dom will be guillotined or impris-
oned and the Government over
thrown, in the political and
social cataclysm that will fol-
low the issue of paper money un-
der that bill, caused wholly and
solely by scarcity of money"
which caused "the great social up
heaval in France at the close of
the 18th century, and bore its ripe
fruit in the French Revolution,
with its attendant horrors gull
lotine and prisons. However, the
gentleman seems to repent of his
extreme view, as he continues (;
"The French object-lesson is too
remote, however, to be of practical
value to US, although the French
{ people have profted by it them
selves" [ will add that not only
France, but most Of the Govern
poapfc of F,1ropa and ADnnrioa