The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1892-12-17

III SOiu. Inc DcOpit SOt IuOhey ny |
the opportunity given them by paper |
money to develop their resources. |
That was the reason. Money supplies |
the vital stream of commerce. The !
opposers of the bill have favored |
cheap labor, but when it comes to |
paper money, they oppose it. With |
regard to the objection of the At |
torney-General that the King alone |
coins money, that has never been |
done yet. Claus Spreckels coined the |
silver dollars in San Francisco, and
the people paid for it about % per
cent. more than il was worth. They
paid in gold Sl,000,000 for $750,0O0 in
silver.
Minister Jones said it is fact that
gold has not been driven out by silver
because of the provision that silver
could not be paid for debts over SO.
If that is removed, gold would be
driven out. Rep. Ashford explained
about issuing one million dollars, but
stopped there. What would become
of our poor Government, we've got TO
pay in gold. The member from the
| Third Ward stated that during the
last year it was difficult to obtain
| money even on real estate. If that is
so, why should the Government go in
| real estate business at this time?
When this bill was first introduced
into this House last June, it resulted
in the withdrawal from the Postal
Savings Bank of S150,000. The mere
introduction of the bill did that. If
the bill passes its second reading, a
larger amount will be withdrawn,
and for that reason, the bill should be
killed now. There are nearly $780,
900 now deposited in the Postal Saw
ings Bank. He believed that II the
bill passed that almost every dollar OF
that will be withdrawn.
Rep. Ashford - What difference
does it make to depositors when their
money is secured in gold by the Gov
eminent?
Minister Jones replied that deposit
tors were always afraid of new law.
They do not know what would be-
come of their money.
Noble Horner said that he opposed
the project in 1884. He wanted to
know what had changed his mind ?
The difference was that in 1884 that
was a corporation for the interest of
bankers, but this bill is intended for
i the benefit of the Government and
t the people. Bank notes are promises
to paw, while Government notes are
! obligations to receive. Thirteen banks
with "promise- to-pay-notes" secured
: by United States Government bonds
) failed during last year according to
f comptroller latest report.
Minister Jones-Were not all the
t | notes they issued paid in gold
2 Noble Horner-Those notes were
2 secured by Government bonds. That
: is just what we want to do here. Ii
that worked so finely in America
: WHY shouldn't it work so here. Wher
D the United States Government issued
them, the bonds were worth only 81
: cents, but our bonds are now worth
e 90 cents. We are better of, there
d fore, than the United States.
i Rep. Smiths there any .provi
e sion made for the redemption of pape
money in gold coin in your bill?
o Noble Horner-It is not. If We
Y provide for the payment in gold, thai
e would give the seeds of death to thi
= proposed bank. That was the yer.
r cause of the failures of many banks
:. They promised to pay gold when the.
: haven't gold.
s Noble Young-You asked that
a paper money answered SO well II
= America why should it not be so here
: America carries on its own commerce
it She is a very rich country; but We
faffffrs 81 the e gold banks Of the Wori
b caused these pilikias. But this BAN
r could not be broken. The more none
:. is drawn from it, the richer it woul
e become. Suppose the bank had loan
e ed $4,000, 900, and received 100000
II back on deposit, it would be MAXIM
o a profit of course. Now, suppose ther
b were run ON the bank-which neve
l. would happen-the bank would pa
e out the one million, which it had No
e used, and then it would have two mi
e lions at interest, and owe no ma
n anything, SO it would be better O.
2. than before. This bank would enabl
lie the poor to borrow at the same rate q
the rich
% Noble Marsden said the principle {
g. the gentleman's bill had been trie
E. before and failed. In Rhode IslanC
20 just after the Revolutionary War, til
n people passed bill similar to thi:
/. But nobody would take the money
lie The Legislature passed forcing Act
a but still nobody would take it. Ths
ID is what would happen here. Th
Iy question is not whether the Nation;
OF Bank would fail or prosper, but woul
a. this paper money represent the coin
D. Could coin be got for it? 1t was d.
S, fusion to suppose that this bill woul
IN make money plentiful. Those wit
ut land might mortgage it, but coul
10 they buy the necessaries of life wit
it? They might be bought, yes, bl
er at an enormous sacrifice. Almo
It's everything which we eat, wear an
of use in this country had to be impor
ed and paid for in gold. And tn;
is would put everyone at the mercy
o. those who have gold. He had ofte
asked Noble Horner how that que
en- ton of exchange would be regulated
re Would he sell exchange at a reason
ut able rate? He said he would, but
he did. he would be the only ms
re who did so. He had cited the Argel
ry tine Republic by inference as an e.
ample for us to follow. It's paper w
ly worth 10 cents on a dollar, and it w;
IT. an example for us to avoid. He d
not care whether the bank won
n break or not. It's paper would not
ng worth anything. This bill had n
ot been demanded by anybody, and
ng did not know of merchant or sho
se keeper who favored it.
he Rep. White had listened Wi
he amusement to the boyish argumen
lot advanced by some of the Noble
h There were no gold mines here, b
IL. there were products which won
ice bring gold. The secret OF the oppos
go ton to the bill was that the BAN
in were afraid of losing all their bushes