The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-12-23

Hon. w. H. Eustis, Special Commits
sfoner of the United States Treasury
Department.
Sir: AS the subject of our Hawaii,
an currency was covered quite fully in
the memorial signed by all the
Honolulu banks and presented on
September IL. 1902. to the Hon
orable Commission from the Unit
ed States Senate, and as the finan-
cial situation has remained unchanged
since that date, the undersigned COM
mittee. appointed by His Excellency
the Governor to confer with you on
the subject of currency, consider that
they cannot do better than to quote
said memorial, substantially as fol-
| lows, with the addition of some minor
details, and in so doing we confirm the
statements and recommend the prompt
action of Congress in accordance with
| its suggestions.
Under act Of the Hawaiian govern
ment, in the year 1883, $1,OO0,vou III
silver coin, consisting of 100000 III
| dollars, $350,000 in halves, $125,000 il
quarters, and $4,000 in dimes, of the
same weight and fineness as United
/ States coin, were minted in San
| Francisco, and put in circulation in
| these islands in 1884 to 1886, replacing
a silver coinage consisting of Mexican
| = ut 0Io a&a
This Hawaiian silver had legal
tender value of $40, United States gold
coin being required under the Hawaii
/ an law for larger amounts. At no
time has there been any difference IN
the value of Hawaiian as compared
| with United States silver, although
when the Hawaiian was first put in
circulation all silver was at a small
discount, say per cent, in purchase Of
foreign exchange as an offset to the
cost of importing United States GOLD
For years past silver has circulated
freely on these Islands at par with
| United States gold, and has been az
copied in large amounts in payments
in excess of its legal tender value.
without discount. Upon annexation of
these Islands no special act was passed
by Congress to legalize the Hawaiian
| silver, nor was any provision made for
| its redemption or recoinage into
United States money, but the full face
value of Hawaiian silver as a coin at
par with United States gold, has been
maintained by tie banks and business
| houses by reason of their so accepting
it on deposit and for exchange and all
/ business purposes. This the banks
| have been enabled to do by finding an
outlet for the silver in the large de-
mands of plantations and the outlying
districts, the only exception being that
i of local bank which had Temporary
excess of silver and offered Is of 1 per
4 cent for gold.
This situation, however, is neither
safe nor satisfactory. AS territory
of the United States, our circulating
medium should be uniform with the
currency of the mainland and should
be a United States legal tender, partic-
ularly as no monetary disturbance
would result from the change; orr
|
weight and fineness as the United
/ States coins, and, as above stated, cir
eulating together with them at par.
On the other hand, without United
States legal tender behind them con-
ditions are apt TO arise at any time to
/ interfere with the circulation of our
Hawaiian coins and cause serious f.
nancial disturbance and loss, especially
/ affecting the laboring classes of the
4 Territory, who could ill afford it.
I'VE beg to refer you to the letter
of our postmaster general to his de-
partment in Washington, on this sub
ject. AS stated by him, Hawaiian sill
yer is taken in in large amounts by
the Island postoff1ces in payment of
money orders, the coin is shipped to
Honolulu and deposited with the gov
eminent depository. the First National
Bank. This Hawaiian silver the bank
cannot count as reserve, neither can it
be shipped by anyone to the mainland
and used for credit on account. For
these reasons it might accumulate to
such an extent as to cause serious in
convenience; in fact, if from any cause
a general demand should be made for
United States legal tender and the Ha-
Wa11an silver refused. it would be i'm
possible for the hanks to fin1 an out
let and continue TO maintain it's parity
with gold, not for want of demand
IN circulation, but simply because it is
not a legal tender. We would also call
attention to the fact that the custom
house OF this city will not receive the
Hawaiian silver in payment Of duties.
thus causing inconvenience - The bus
mess community
AS remedy for this dangerous and
unsatisfactory situation we would urge
the prompt passage by Congress of the
act introduced at the last session. re
lating to Hawaiian silver COINAGE and
silver certificates, s 2210 which :
satisfactory and meets the require
nsents of II is territory. Our co.'s are
III gooG olCer and have suffered hut