The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1899-02-28
iasslss 90 svNr,.


! lac lar hnsneis sissm.ni ma q,
. BY ihs lsraf m.ni -. iABasos. on ths
en- oi ne msnth disciosss a femsfs.
abio oondluon 81 aaaifa
IN. amount ~ moRa, nON irksd
40 IN me Treasury ,ssts smounis. ln
he current scossn,, 10 ssSe .ssss,. and
n The loan a~sssDt Ia es2.si5n, mak.
inc total 81 ssss.ec,ss THIS amour,
nov ou, ~ circulation taxing into
consideration the nambsr ~ the In.
hsbiiant.. and che amour, " erin an1
currency IN the country. would be un-
der ordinary circumstances. enough TO
excite Apprehension and fear " m
anclal panic. when through the large
receipts from duties the accumnla-
ions In the United States having. In
1856 " we correctly state the year.
reached $3.50 900 600, the bankers 10 the
cities became alarmed. The money
market became stringent, and The
prices OF stock declined. As the strin-
gs.ncy began to Increase. the bankers
and business men OF the country In
order to prevent a panic, besieged the
government strenuously to relieve the
money market by abandoning this
crude and unwise practice o locking
up currency The government yielded
and distributed the surplus not requir-
"a for immediate use among the ma
tional banks and secured by tne best
| rollatnrals. The money market was
!. at once relieved. The financial men,
throughout the country, agreed, with
out dissent, THAI the policy Of locking
lp this large amount OF money was
. injurious TO business, and was not jus
Jifed by any principle Of finance The
amount OF coin and paper currency Is
sued by Federal government Is about
s23 per capita. The amount Of money
IN circulation here at the same rate
would he about s2,j0O,OJs. DO the
! banks. ANA the mercantile houzes and
the Treasury hold that amount? II
is doubtful Conceding that there is
that amount in the country, IL appears
then that about One-third Of the cash
capital of the country is locked up
in the government vaults Any Amer
lean or European fnancier of reputa-
| lion would declare that tnIs condition
I Of things showed at least doubtful fin
anclering. Conditions here perhaps
may be peculiar and permit without
peril the withdrawal from circulation
Of this comparatively Fargo amount
| Il is not obvious that It is so The
experience on the Mainland which we
have stated condemns it,.
II the locking up of this money
raises the rate OF interest above the
! formal point, whatever that may be,
the practice must be bad financicring.
IL there is only $l,5OO,OOO in the ISL
ands, as some suggest, then we have
more than half OF our circulating me-
dunn out of temporary use. Peril from
a lock up" however, does not appear
In a rising market. In booming times,
credit and cheques take the place Of
cash to considerable extent, and
lock up may work no harm But the
situation Is not a sound one financially.
| There is another important view Of
the case. The Legislature appropriate
ed money for many internal improve
ments The money for these improve
ments is on hand in this perhaps
/ dangerous surplus. The Interior De-
I parment, without vitality for a long
4 period, either does not have energy
enough to make these improvements
or Is prevented from making them by
some powerful influences. The gov
ernment must be treated as one cor
porate body. Why does it not make
them with promptness and energy? II
made as rapidly as they ought to he
made, this great surplus would find
it's way back into business channels.
II Is rather difficult to discover any
financial reasons for the delay.
The administration of the Finance
Department has been cOnservauvely
and safely conducted heretofore, But
new conditions are arising. Can 1t al
ford to ignore the experience OF other
communities?