The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1892-09-23

reported TO your com mittee, consist OF /
little more than 30 per cent. Of gold, |
and nearly 20 per cent. OF silver, in |
which term We include both coin and /
certificates. It is but just TO say, in |
this connection, that the acceptance |
of silver certificates at par by the Is-
terror Office, is, a. reported 10 your /
committee, due TO a standing order,
promulgated by the predecessor OF
His Exceilency, the present incun1-
bent, which IS still observed
The receipts Of the Water Works
Bureau, comparatively few Of which
exceed $3.50 IN one item, are also
composed in much the greater part,
of silver.
The present legal tender law makes
silver coin reeei cable in payment OF
debts, only TO the amount Of $1,000
upon any one payment. 1t - thus
obvious that the law Is being relaxed
by the Interior Department, as well,
your committee understand, as by tax
collectors, and other public officers,
by the receipt OF silver at par, for
dues In excess Of $1,000. But, under
the existing circumstances, your COM
mittee cannot censure such Ieniency,
a. an insistance upon the strict legal
ously embarrass Government debtors,
and in others 1t would result in
failure to collect the money due the
Government, for lack Of sufficient
available volume of gold coin to meet
the full demands of business.
The Custom House, In insisting up
on the legal tender, az it does, has the
double effect Of draining the available
channels to meet payments Of duties,
and supplying the greater proportion
OF gold coin which finds its way into
the treasury.
But your Committee are aware that
1t IL becoming increasingly difficult
for our business men to obtain even
sufficient gold coin TO meet their pay
ments of duties, and, strange as It
must appear to anyone with definite
ideas Of the true functions Of bank
Ing institution, it Is even impossible
to purchase gold coin at our local
banks.
This, then, was the condition which
presented itself to the Minister of FIJI
nance in the latter days of July, 1892.
| There were salaries to the amount Of
| about S62, 600 to be paid on the both Of
I that month, and only about S43, 900 of
| gold in hand with which to pay them.
| It was obvious that the Treasury
could not meet the demands upon it,
| in the legal tender of the country, and
a choice of expedients became neces-
sary. The Minister could have paid
gold during the early hours of that
day and until about two-thirds of the
days obligations were met, when the
gold supply would have been exhaust
| ed, and all later corners would have
/ oh 81 all IN fx1ft
payment, or go unpaid.
such q course would have been a
violation of the law, in leaving the
! Treasury without the gold reserve re-
quired by the Postal Savings Bank
Acts to meet drafts against its depos-
it's
The second expedient, was to fix a
definite ratio of gold which he would
| pay, for the time being, and to pay the
balance in silver, of which there was
about S62, 900 on hand.
This expedient was accepted and
acted upon by the Minister, who fixed
the ratio for gold payments at 25 pei
cent, after having Instructed the Reg
istrar of Public Accounts to put aside
S25, 900 in gold, as reserve to meet
the demands from the Postal Savings
Bank, interest on bonds, and similar
obligations.
Your Committee cannot censure the
Minister for having taken the course
adopted by him, further than to say
that the ratio of gold to silver author.
lied might, we think, have safely
been somewhat higher than 25per cent
still, the Minister acted in good faith
and, as we think, exercised a com
mendable prudence in not allowing
the gold in the Treasury to become 81
} far depleted that a large draft from tn
Postal Savings Bank would have ex
hausted the supply of that metal an'
go jeopardized still more the Gov
eminent credit, and, possibly
have precipitated q run on tina
Bank. Besides, the order il
question was made only for TIL
day mentioned, and, having served it
: purpose, is not now enforced.
We would remark that the amour
of gold on hand after payment of Jul.
salaries, and up to the 18th of August
was not sufficient to meet the demand
!: of the law, respecting the holding @
reserves against the Postal Saving
Deposits, and while this condition
shall continue, or recur, the Minister
will be obliged to violate either tn
ItGdk lcuuEl laws Va
the security of Savings Banks Depes
itors.
,, For the future, the Minister in hi
answers referred to Us, has promise
nothing except that he will pay gol
; | while he has it to pay.
We do not we'll see how His Excel
! lency could have promised, or how q
; can. perform anything more. It
evident that silver will not discharg
obligations payable in gold. TIL
d receipts from the Custom Hous
5 have fallen from an average {
: about $4,000 per month, during 1897
! to an average of about $4,000 Pc
Q month, during the present period,
8 shrinkage of about IS per cent, henc
5 the customs duties cannot, as hereto
5 fore, be relied upon to meet salary d.
8 mands payable in gold, nor are othe
. ordinary sources more promising.
= On August 26th there were notice
z of withdrawal on file, covering aboU
s S97, 900 of the Postal Savings Ban
deposits, all of which, and others, :
u they mature, must be met with gol
q coin. On the same date there was
$ total of S67s, 661. Is due TO depositors i
J said bank, leaving about $685. 900 nc
$ yet notified for withdrawal, br
which is practically payable on d.
a mand. The necessity of meeting nc
: only current expenses, but this larg