The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-09-13
BANKERS, MEMORIAL.

Honolulu, H. T., Sept. H. 1902.
To the Honorable Commission of the
United States Senate.
| Gentlemen:-Under Act of the Hawaiian
Government in the year 1883, 81, 600, 600 in
silver coin, $5OO,OG0 in dollars, $350,OO0 in
halves, Sl250Uv in quarters and SIS, 900 in
dimes of the same weight and fine
ness as United States coin were
minted in San Francisco and put in
Ito circulation in these Islands, from
1884 to 1886, replacing silver coinage
consisting of Mexicans, 5-franc pieces,
pesos. soils, etc.
! The Hawaiian silver had a legal tender
value of So United States gold being
required under the Hawaiian laws FOR
larger amounts. At no time mas there
been any difference in the value Of Ha-
waiian as compared with United States
silver. although, when the Hawaiau was
! first put in circulation, all silver was at a
small discount. say per cent, in purchase
lof foreign exchange. For years past sill
lver has circulated freely in these islands
at par with United States gold. and has
tbeen accepted for large amounts in pay
lments in excess of it's 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 a coin, at par with
United States gold, has been maintained
by the banks and business houses, by
reason of their so accepting it on deposit
and for exchange and all business pur-
poses This the banks have been enabled
to do by finding an outlet for the silver
in the large demands of plantations and
, the outlying districts. The only exception
being that of local bank which had a
temporary excess of silver and offered Is
of per cent premium for gold
This situation, however. is neither safe
z nor satisfactory. AS Territory of the
, United States our circulating medium
should be uniform with the currency of
T the Mainland and should be United
States legal tender, particularly as no
monetary disturbance would result from
the change; our coins being of the same
= denomination. weight and fineness as the
= United States coins, and, as above stat
ed circulating together with them at par.
On the other hand. without United States
e legal value behind them, conditions are
, apt to arise at any time to interfere with
the circulation of our Hawaiian coins and
s cause serious financial disturbance, which
would specially affect the laboring classes
. of the Territory, who could i'll afford it,
We beg to refer you to the letter of
: our postmaster general to his department
n at Washington on this subject. AS stated
by him, Hawaiian silver is taken in large
u amounts by, the Island postoffices in pay
e naent of money orders, the coin is ship
ped to Honolulu and deposited with the
lGovernment depository--the First Nation
n al Bank. This Hawaiian silver the bank
r cannot count as reserve; neither can it be
. shipped by anyone to the Mainland and
u used for credit in account; for these
e reasons it might accumulate to such an
C extent as to cause serious inconvenience;
in fact, If from any cause a general de-
q mand should be made for United States
s legal tender and the Hawaiian silver re-
fused, it would be impossible for the
banks TO find an outlet and continue to
IL maintain its parity with gold, not that il
p lis not required in circulation, but simply
from not being a legal tender We would
D also call attention TO the fact that the
l. Custom House of this city will not re-
; ceive the Hawaiian silver in payment 81
duties thus causing inconvenience to the
"a business community.
.oJ AS remedy for this dangerous and yin,
satisfactory situation we would urge the
&c prompt passage by Congress of the Act
introduced at the last session, relating Il
"a Hawaiian silver coinage and silver certff
icates; S. 2210 which is satisfactory and
y meets >-4e requirements of this Territory
r. our coins are in good order and have
20 suffered but little abrasion and the cos
of transportation and recoinage into Unit
re ed States silver would be small to tn,
Federal Government
We estimate that there is now left il
- circulation of the original coinage o
of 100000 say 100000 in Hawaiian coin, tn
M dimes having entirely disappeared
There is at present considerably
re amount OF United States silver IN thi