The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1892-08-08
Cheap Money.
FIFTH ARTICLE.
EDITOR BULLETIN:

OF nleunOu ol making ROOu cheap |
money and just and improved ways
of distribution, the object should be
commended, not slurred and fought
against, any more than when con
sidering ways and means of cheap
ening freights and fares, or cheap
ening the necessaries and comforts |
of life
1t is evident that the magazine
writer referred to in former COM
munications has taken superficial
view of the cheap money question
and only one-sided view at that,
or he would not so strenuously in
sist that all issues of paper money
must have a coin redemption to pre-
vent depreciation He should have
discovered that paper money and
other currencies has had, and may
have, acceptable redemption in other
values than coin.
The Pennsylvania, Virginia, and
North Carolina issues before referred
to were redeemed by being received
as taxes in the revenues of the Colo
nists. The S60,000,000 was made a
full legal tender and was redeemed
by being received into the treasury of
the government for duties on i'm
ports and for other dues the same
cold n,,l s,1x,n,- ,,,,,,, ,.,>.n,,yn1
Neither had gold or silver behind
them; neither required a coin re-
demption. Neither deprecated
farthing. One billion or so of Am
erican greenbacks and other treas
ury note8were acceptably redeemed
by Government bonds. The Am
erican National Bank note is re-
deemable in Government bonds,
greenbacks or coin.
Our post office stamps, that are of
such great value to the people, are
paper obligations of the Govern
ment, worth their face value in gold
and are redeemable by Government
service, the people preferring a ser
vice to coin redemption.
There are scores of millions of
gold now in the hands of the people,
whose owners would think them
selves fortunate if they could have
it redeemed by American Govern
ment bonds, although the bonds are
only paper and values are given to
them by law, yet the possessors of
gold deem the bonds more valuable
to them than gold. The reader may
both cheap money and dear have
been and now are acceptably re-
deemed in other values than gold
coin.
How will the Century writer and
others of like faith reconcile these
facts to his emphatic declaration
that "All issues of cheap money
must fail if not redeemable on de
mand in coin?" The American
SIeenDdch Is q paper
UDuSaUIOn, as valuable as gold coin
for all money purposes, and was re-
deemed by Government bond
another paper obligation more valu-
able than coin. The American Gov
eminent bond has been long time
above par. Yet both greenback and
bond were made valuable by the
power of civilized law. Yet some
tell us, there are no values created
by law.
None of the ''cheap money" issues
referred to above had all of the adj
vantages proposed for the money of
the banks of Hawaii. Some had
one advantage, some another. The
money of the bank of Hawaii is tc
be full legal tender, and loaned
upon specific property for an inter
est, and to be redeemed by be,
ing received into the revenues of the
kingdom; 2ndly, the bank will re,
deem all that may be returned to il
by bond-a certificate OF deposit
drawing an interest, and payable OF
demand in public money; 3rdly, il
will be redeemed by the bank return
ing the mortgaged property to tn,
borrower when he shall return the
money borrowed to the bank, will
the interest due thereon.
Thus this money differs from cor
poration bank notes, by being bill
receivable. The bank notes are bill
payable. A wide difference truly
The first receives money; the othel
pays. j. M. HoRNER.
(IO be cOntinued)
HTanrc