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A Uewtpjpf r Published Weekly,
IStlTO SUBSCRIPTION $5-o i Hit IS iDTiJCl.
$4 (4 to $7 50, teeorainjc to lliir dmttion.
MAY 31, 1K4
ca.I c nrnr.cn 1:1.1.
Tlltnitlf lilt Conlrnelt Hit SlentntrtIIll
Currtncy-ltti Jlrtnfc Hit Pnlltlet.
" Hut vesterday and Oesar might have stood
agtinst the world."
One j car ago the writer was dis
cussing Mr. Claus Spreckcls with a
gentleman high in the community's con
fitlence That gentleman said " It is
Spreckcls' proud boast that there is no
man on these islands who can say Claus
Spreckels ever wronged him." Because
we then believed that Mr. Spreckels
purposed to deal justly and generously
with these islands and their interests,
this paper repeated the remark of the
writer's friend - and put itself on record
as a believer in that justice and gen
erosity. Since that conversation, events
in which Mr Spreckels has been con
cerned have succeed each other in swift
succession, tintil of Mr. Spreckcls, to
day, the entire community truthfully
may say: " He has injured us, and he
threatens to injure us still more." Let
us examine into the reasons of this
change of public feeling this almost
universal fear and distrust of a mono
poly headed by Mr. Spreckels and
aided by his associates. The imme
diate reasons are easily to be seen.
The more remote reasons, though far
less obvious, are none the less tangible
when we come to reflect upon them.
MR srRrtKF.LS' STEAMERS.
Who does 1 ot admire the Maritxjsa
and Alameda, is a dullard. Who does
not appreciate their conveniences, is a
stupid. Who does not fully recognize
that they were built generously, and in
part answer to the manifest desire of a
majority of white residents, is unjust.
Vet Mr. Spreckles did an unwise act
if he buil them relying for his profits
t ion l' o legitimate commerce of this
jjurt.-.ind by "legitimate commerce"
is meant that freight and passenger
traffic which naturally seeks transit by
steamers. He did a distinctly wrong
act if he deliberately intend. I to force
two steamers into the islar I carrying
trade, to the certain exclusii n of estab
lished packet lines and the consequent
injury of cr,-MuhccJ business and the
possible destruction of vested rights.
Did he so intend ? That is a matter
between Mr Spreckels and his own
majority belief being that there is al-f Goliath visitctl him and made tip the
Twelve years ago Claus Spreckels
was already a successful sugar refiner in
San Francisco, although he had not
then anything like the power he now
possesses, tic naci risen 10 nis posi
tion as head of a large business by tact,
talent, enerev and application. He had
not much education but he had brains.
He soon become noted for two reasons:
the vindictiveness with which he pun
ished his enemies and the generosity
with which he rewarded his friends. In
1875, he turned his attention to these
islands. He was led so to do because
of the need of controlling a raw-sugar
market adequate to the extension of his
growing trade and the capacity of his
refincrv. At that time we had few
plantations'and they were all struggling.
Mr. Spreckels saw his opportunity and
helped some of them. The treaty was
then merely projected. Mr. Spreckels
at first was antagonistic to and then did
something to secure the treaty. Shortly
after the treaty was passed Mr. Spreck
els obtained his first foot-hold on the
islands. He assisted numerous planters,
tided them over serious difficulties and
did much to place sugar production on
an assured footing. So long as Mr.
Spreckels exerted an influence upon
sugar production merely as a helpful
friend to numerous enterprises, that
influence was a nearly unmixed good.
But circumstances enabled Mr. Spreck
cls to become in turn a planter. Alter
awhile his investments became cxten
sivc. In time, a favorable loan enlisted
the friendship of the present king. Then
sprang into lite that monster white ele
pha'nt Spreckelsville. The Maui-land
gTant transaction followed. Last year the
new Spreckels steamers were built, the
new line was established and freights
were advanced on sailing vessels. Then
the Spreckels silver was forced into
circulation. Now the new Spreckels'
bank asks for a charter and the steam
ers ask for a subsidy.
But why should there be anything in
this trite list of happenings to create
distrust, alarm ? Because, in one word,
it seems to mean monopoly. And why
this universal distrust of even the sem
blance of monopoly ? " Because the
world's recent history has graven this
dread into the very so uu of the race,
with the white hot iron of injustice " ?
We do not go quite so far. But we are
as one with the statesmen and publicists
who maintain that monopoly, in even
its least rigorous guise, is a dangerous
concession from the people to corpora
tions : and if ever made should hae
for its reason of being some great pub
lic necessity and should be surrounded
by every possible safeguard of popular
rights. Is Mr. Spreckels a man to be
trusted with powers so vast that their
exercise may make him autocrat of
every vested interest on these islands ?
Is any man, are any men, to be so
trusted? That is the great question
here to-day ; so great a question that it
dwarfs every other.
MR. SPRECKELS1 CONTRACTS.
Wc have alluded to that part of Mr.
Spreckels career which makes him an
exhaustless well of benefit to those with
whom he is friendly, and a dangerous
foe of those to whom he is inimical.
This phase of his career has been most
aptly illustrated in his relations to and
with the Hnwaian sugar planters. On
several occasions we have pointed out
his generally just and frequently gene
rous treatment of our sugar producers.
The community would be rankly unjust
to ncclect full recognition of Mr. Sprec
kels' action last year, in the matter of
the last cargo sent torwara oy me suet
The two familiar instances are among
A brief analysis of the cost, operat
ing expenses and possible income of
the new steamers cannot, 01 course, be
eitlicr accurate or even satisfactory ,
but a reasonably approximate analysis
determines one fact: so generally
shrewd a man as Mr. Spreckcls must
have abandoned figures for rose lined
fantasy if he looked ahead and saw a
profit in two steamers a month between
Honolulu and ban rrancisco except
as the big whales of a leviathan mon
opoly. What seems a reasonable state
ment, basca, in part, upon Mr. Claus
Spreckels own words, may be made as
follows bearing in mind that the first
cost of the Mariposa and Alameda was
a round million :
Sinking fund, near nnd tear, etc., es
timated at 10 yearly on cost of
both vessels $100,000
Yearly running expenses, $18,000 a
month each, or (for both) 432,000
Interest on investment, at 6 yearly. 60,000
Insurance on cost of both vessels, at
6 j early 60,000
Total expenses $652,000
Freight, outgoing, an average of
1,500 tons to each steamer each
trip 1 or, for both steamers, a yearly
out-put of 36,000 tons at $5 $180,000
Freight inccming, an average of 800
tons to each steamer, each trip ; or,
for both steamers, a yearly in-put
of 19,200 tons, at $5 96,000
Cabin passengers, an average of 60
each way to each steamer, or 240 a
month, or 2,880 cabin passengers a
)ear, at $75 216,000
Steerage, 1,200 yearly at $25 30,000
Total income $573,000
Annual excess of outlay over income. 80,000
We have, we trust, disarmed cap
tious criticism by terming the above
estimate approximate. We shall be
glad to see an authoritative announce
ment of a larger actual or assured in
come than we have assumed ; and, per
contra, a smaller outlay. Candidly
now, are we right or wrong, in ques
tioning the good policy or the justice
which sends us two steamers a month
when we could not lavishly support one ?
and we ask this question without de
nying a single one of the excellencies of
the two noble steamers or the prospec
tive advantages of swift and sure semi-
monthly communication with our near
est neighbor, the principal market for
our products and the chief base of our
MR. SPRECKELS COIN.
That is one side of the shield the
golden side. Let us view the obverse
the iron side. Last year Mr. Spreckels'
summer visit was welcomed with min
gled feelings. He came in one of his
beautiful steamers. The joint arrival
was greeted with half an ovation, half
distrust. For good and sufficient rea
sons the plantation agents were afraid
of Mr, Spackels. me reasons soon
developed. Mr. Spreckcls came pro
vided with a catt-iron contract, whereby
he consented to take our sugars at the
Cuban basis, provided those sugars were
siifptd by (he ttssels under fas cottttol.
The community opened wide its mcuth
and gaped in mute wonder. The plant
ers sat mum beside their mills and in
their fields. The plantation agents
stiffened their legs, unlimbcred them
and prepared to kick, thought better of
St and swallowed the bolus. It was not
a noxious dose, but ery like gall in
its flavor. .Many honestly believe
it would have been better for the inter
ests of these islands that the contracts
lhould have gone unsigned, that out
sugars shapld have been sola at a loss,
and that the issue of commercial inde
pendence or beggary should have been
wane once tor an
During 1882, Mr. Spreckles ob
tained a contract nominally under the
Coinage Act of 1880, but really in
violation of both the letter and the
spirit of that act whereby he was per
mitted to coin silver, according to cer
tain provisions cf that act, and was
promised in exchange for the new coin
age six per cent. Hawaiian bonds, of
the issue authorized by the Loan Act
of 1882. These coins were to be of
equal weight and fineness with Ameri
can silver coins or like denominations.
No one has questioned Mr. Spreckels'
abstract right as a shrewd business
man to take advantage of the weak
ness or the folly of the Hawaiian gov
ernment in " misconstruing " the law
to use a term mud enough to suit even
mild Minister Kapena. But, if it was
ever brought to Mr. Spreckel's notice
that his action in accepting the con
tract was, in effect, helping to compound
a monstrous violation of perfectly plain
law-, then Mr. Spreckels did that for
which he ought to be punished under
the law in common with the officers of
the Hawaiian government who so be
trayed their trust. If Mr. Spreckels did
not realize and was not made to
realize the legal offense (or, if there
be no law to reach the wrong, the
moral offense) he certainly deserves
censure for carelessness in his dealings
with a government whose prosperity
was so closely indentified with his own
interests. Be that as it may, it seems
impossible to believe that any sound
business man could deliberately assume
the morality of purchasing with silver
directly from the sworn officers of the
law who controlled their issue bonds
lawfully negotiable at not less than par.
If " par " does not mean gold if dol
lars be named, in gold double eagles ;
if pounds sterling be expressed, in Eng
hish sovereigns then " par " is a mean
ingless term. If it does not mean Use
only ultimate standard of value the
civilized world recognizes, it does not
mean anything. But three Hawaiian
judges had the courage and the intelli
gence to say ; " No, Mr. Spreckels, you
cannot lawfully obtain bonds for silver.
Par means gold or it means nothing."
An act of the privy council fixed the
rate at which Air. Spreckels' coin
should be taken 1 taken and the
matter rested for the nonce.
ready enough unemployed local capital
seeking inestment to secure the liar
moniousdevelopenient of our resources.
Second h is not specific upon two vi
tal points, the medium by which bonds
shall be purchased and the medium in
which the bank notes shall be paid.
It istroe that a unanimous decision of
the Hawaiian Supreme Court has de
clared bonds can be sold only at par, in
United States gold or its equiva
lent. But the impression prevails that
nt least a portion of the bonds are to be
purchased with silver and nothing in
the act shows that they are to
be purchased for gold. On this
point it may be urged that
it makes no difference to the holders of
notes how the bonds arc negotiated.
Very true, but it makes some difference
to the tax payer whether the govern
ment realizes the full value of its bonds
or no. As to the payment of the pro
posed bank notes, redemption in the
Spreckcls' silver would mean a probably
indefinite postponement of the cold
standard; redemption in gold would
mean a practical solution of our imme
diate currency difficulties, and would
do much to rob the scheme of its worst
feature the conditional swamping of
island business under a flood ol depre
ciated silver. Third The legal tender
feature of the scheme is open to the
last objection. It means, as the act
reads, that paper redeemable in Spree
kcls' silver shall pay all debts, public
and private except custom dues and
interest and principal of bonds. If the
notes were made redeemable in U. S.
gold, the legal tender power of the pro
posed bank notes could work no injury
so long as the bonds represented par
value. Fourth The new bank pro
poses to issue notes to the full value of
the bonds deposited. I hat ought not
to be permitted. If in the United
States it is deemed expedient to per
mit the issue of notes to the value of
only ninty per cent, of the bonds de
posited, a safe bank of issue here
ought to be allowed to circulate notes
to the value of not more than seventy
per cent, of the deposited bonds. The
reason is obvious. The great republic
of the United States has enormoris
resources. Their development is in its
infancy. The national banks assist
that development and secure their
notes on the credit of the whole
country. But the little Kingdom of
Hawaii has but few resources, and
the credit of the whole country may
fluctuate so as to effect the value of
bonds and so imperil the security of
national bank notes. It goes without
saying that a distrusted administration
may depreciate the value of govern
ment bonds. Our bonds were for sale
at a discount not long since (or, if this
be not an exact statement of fact, could
not be sold at par), and because of
distrust of the administration. It also
goes without saying that this state of
affairs may come about soon again.
Only the professed friendship and sup
port of Mr. Spreckels has kept the pres
ent ministry in power. Is it not too
much to ask the legal right to issue
currency based upon a credit so prone
to fluctuation ecept under reasonable
limitations. Fifth We object to sec
tion 18, in toto. It throws the cloak
of law around a dangerous experiment.
As the law stands, the government may
employ any reliable person or corpor
ation as its financial agent There is
danger in this sanction, by legal enact
ment, of intimate financial relations be-v
tween governments and corporations.
The section is bad and only bad, and
ought to be stricken out without a dis
senting vote. Finally We object to
section 4, in so far as it gives the new
bank the right to increase its capital
stock to two millions. The loan act
calls for the sale of bonds to the amount
of only two millions. To permit any
bank of issue to employ all, or nearly
all, the outstanding or soon to be
negotiated Hawaiian loan, as security
for currency notes, would be to play
into the hands of monopoly and leave
every industry on these islands at the
mercy of a corporation.
unpleasantness are matters of recent
history At that time Mr. Spreckels
distinctly gave out that he would unseat
Mr. Uibson. He even went so far as
to discuss a cabinet to succeed him.
When asked to explain his defection
from the ranks of the Independents,
Mr. Spreckcls declared that "the mer
chants had gone back on him." It
smnded very much like the speech of
the wolf to the lamb. But we are not
charging Mr. Spreckels with an) tiling
dishonorable, nor is this insinuation.
It is merely query. Why did Mr.
Spreckcls "go back' on the principles
of reform represented by a majority of
the best men on the islands ? Because
some man, or a number of men, had
"gone back" on him? 'I he reason was
not enough. It justified the com
munity in fearing that Mr Spreckcls
had fallen into Mr. Gibson's power.
How else could reasonable people
reconcile the alliance ? The recent elec
tion ought to be fresh in every memory.
No one who cannot prove it has any
right to say that Mr. Spreckels' money
helped defeat J. O. Carter for the legis
lature. But hundreds of people believe
that it did. Why should it have been
so employed if it was?
The reasons for Mr. Spreckels inter
ference in Hawaiian politics are locked
in his own bosom, and in the knowledge
of his confidants. The general public
has not his political confidence. Those
reasons may be honest ones. We hppe
they are. Wc hope events may justify
such a belief. But Mr. Spreckels must
not blame the public for its position
towards him. Former justice and gene
rosity does not excuse his attitude to
wards the public in the steamship
monopoly, in the currency matter, in
the bank project. If he persists in his
attitude or if his representatives per
sist for him he will assist to dig a grave
for the immediate future prosperity of
"After us the deluge I" Not so, there
is an other alternative "aririexation."
Hnth it an ugly sound, gentle Hawaiian?
Doth it stick in thy crop, O son of the
soil? That is what this sort of thing
means. "When the apple is ripe it will
fall," said a shrewd observer. Does it
not seem nearly ripe when English and
German merchants fairly yearn for an
nexation ? Let those who love this
country reflect It is true that perhaps
the United States would not have us
for a gift ; but, if she would not, some
other nation would very likely be willing
say China. There is a shorter and
better way out of it. Pass the gold act I
So long as this country keeps out of
unreasonable debt, we can maintain the
gold standard whether the balance of
trade be in our favor or not A com
paratively small amount of gold easily
to be determined hereafter will suffice
for the internal and outside needs of
trade. No one will want to handle the
gold in ordinary transactions if it can
be had when needed. Gold notes
corresponding to silver certificates
would then be the best medium.
'Twould be the old story of the French
man and his money over again.
The bill for the construction of street
railways in Honolulu provides for the
full protection of public rights. Hono
lulu would be greatly bosViued by
itreet railways if establishedls.der juch
conditions as are laid dowri Tin Hie" bill
in question. We think trie measure
ought to be generally supported.
No one need bother himself about
where gold is to come from or who will
bring it here. Pass the gold law and it
will come when needed. There is no
economic law more thoroughly tested
than the rule that " Gold always goes
were it is needed, provided it be the stan
dard of the country needing it."
MR. SPRECKELS' BANK.
A friend gives the following supple
mental objections : " In section 2
what do the words ' or any other place
mean ? Do they mean the legislative
assembly, where Mr. Spreckels was
pleased to carry his Wailuku scheme,
ignoring our courts r no merely -careless
phraseology ' or ' legal verbiage '
with unlimited possibilities I In section
4, only twenty-five per cent, of the
minimum capital qualifies the corpora
tion lor business. 1 protest. 1 he per
centage should be, at least, fifty. In
paragraph 6, section 6, is said that ' the
board of directors may prescribe the
mode and manner of the transfer of the
shares of stock.' This should be a
matter of legislative enactment And
paragraph e of section 6 provides that
money may be loaned 'without
security.' Bad business I Paragraph 0
ot section 6 provides for the acquisition
of the goo j will of any (any) business,
(upon the land and under the land,
upon the sea or under the sea; the
firmament alone is providentially ex
empt). To paragraph of section 6 I
interpose a decided No ' I The prop
osition in section 17 to allow the bank
to compound its personal property tax
for one per cent of the average amount
of its circulating notes is a point against
which every mx-uaycr suuuiu raise III
protest In section 20, the provision
binding the minister of finance, in case
ol default by the bank, to sell the
bonds held to secure the bank's notes
at not less tlumpar value is putting the
government in irons and possibly pre
venting me ultimate payment 01 even a
percentage of the bank's notes. As a
whole, the bill ts an outrage ; and no
true Hawaiian, native, naturalised or
denizenued, will vote for it"
MR. SPRECKELS POLITICS.
For the past four years there has
been an active influence in Hawaiian
politics quite apart from the current
national questions that divided men.
It had nothing ostensibly to do with
a strife between the outs and the
ins, and yet its power was believed to
be exercised for the benefit of the ins,
immediately Mr. Gibson became an
"in." But last year Mr. Spreckels ap
peared upon the scene heralded as a
man who had "broken with Gibson''
and desired a change. The Chinese
coolie-immigration contract with the
Pacific Mail was the apparent cause of
Air. spreckels break with Mr. Uibson.
David went forth to slay Goliath, his
sling armed with a certain letter that
seemed to implicate Mr. Gibson's son-in-law
in a crooked transaction. We
We print in another column the
text of the proposed act to incorporate
the Hawaiian National Bank. No
measure of equal importance has been
presented for the consideration of the
present legislature. As drawn, the bill
ought not to pass. We oppose the pro
posed bill for these reasons. firstA
bank of issue on these islands is unne
cessary. If a large volume of currency
were needed in the transaction of our
island business, a bank of issue based
upon Hawaiian bonds would present
the soundest method by which the cur
rency might be increased. The need
does not exist ; and the compensation
of largely increased capital, available
for the developement of island resour
ces, does not off-set the danger of un
necessary inflation of the currency. On
this point, however, there is an honest
difference of opinioa We have been
led slightly to modify our expressed
opinion of last week, in this particular.
after consulting, at first and second all know how David returned to his
hand, many prominent invasion, the tent without tht giant's (wad; and bow
Acarefullyprepared article on the pro
posed Japanese immigration is witheld
until certain negotiations have been
concluded between Consul Irwin and
the foreign office. The desirability of
the immigration seems unquestioned on
any side and wc trust it may be brought
The gold standard is not a political
question in any party sense. It is a
purely economic question affecting the
future of every man, woman and child
on these islands. The attempt to de
feat it for party reasons is as unpatriotic
as it is unwise.
The Hold Stnmlmrd.
Editor Saturday Press A : It seems
to be generally agreed now that the advantages
are all in favor of a gold basis for our curren
cy. But the great difficulty that someadvance
is that gold will not stay in the country ; and
that it will have to be brought here constantly
at an enormous expense. A financier told me
recently that it would cost $100,000 per annum
to maintain a gold currency. I confess that
I cannot see this difficulty, nor undcriand
this expense attending the maintenance of
a gold currency. If the Chinese choose to
end $10,000 in gold to Hong Kong Instead of
buying exchange at the bank, the Utter will
UI1G HI UlUlll I1IU4C CKIWIIKC WU I1BUU,
and will tend it to San Francisco to be
collected and returned in tht shape of
cold. This will cost tht bank about I
per cent, so they will refute to buy ex
change at more than 1 X Pr cent, discount.
But the ahlpper of sugar may say to the bank
"If you will not buy my exchange at 1 per
cent, discount, I will tend it to San Francisco
and get the gold and it will only cott mt I per
cent," It will not matter much to a planter
whether he brings back hit proceeds in gold 01
sella drafts here; ht will do that which it mott
needed and which therefote paya the best, and
tht difference to him can never be more than
$1, or at most, $3 per Ion. The only diffi
culty it for thott people who have no money
and no exchange, and their only remedy Is to
borrow. If they can borrow here they bor
row gold, if they borrow in San Francisco
they borrow gold, and they can ship the
gold from one place lo the other for 1, and that
will be the limit of exchange. If they cannot
borrow they have to stop payment, exactly at
such persons do now. Where Is the $100,000
per annum to be spent ? and who U to spend it ?
Icwould not cott more than $13,000 a year to
Import $100,000 per month. The fact (s that
by tinkering and tempcruing, we hare got
Into faculty, and have given to shippers
the nt and right to make large profit! on
irl.sn AsnoTitr.nn tin.
To illustrate the wildncss of current
knowledge of that big topic currency :
Two gentlemen were conversing at
Nolte's ; Senior a close student care
ful reader and accurate thinker ; Junior,
evidently an open thinker careless read
er, and (on that occasion certainly)
an inacurate thinker, funior- "Gold
has been leaving New York recently in
large Sums." Senior; "Yes." Junior. A
result of the accumulation of silver in
the treasury and sub treasuries, is it
not?" Senior: " Partly." Junior.' "I
understand there is now locked up there
(meaning in the treasuries) over thee
hundred and fifty million dollars in sil
ver. Senior! "I hen your information
differs from mine. 'I he last report I
have seen, issued last February, made
the coined silver on hand about one
hundred and fifty millions most of it
covered by silver certificates."
Junior of course, subsided; and senior
forebore further enlightenment, con
scious that the junior, though ealy, was
on the right economic path and sound
in his conclusions, no matter how faulty
his premises might be.
But Junior's lessons of the day were
not to end there. He went home and
sat down to his Nation. (And perhaps
here is as good a place as any paren
thetically to remark that the New York
Nation is one of the Jjest weekly papers
extant ; and has, in consequence, the
comparatively meagre subscription list
of 8,000 copies : and is read by not
more than 80,000 weekly, probably,
while its American readers ought to be
numbered by the hundred thousands, its
English readers by the tens of thousands
and its Hawaiian readers by the hun
dreds, at least) But to return to our
muttons: Junior took up his Nation for
May tst and read :
"The principal events of the week In business
circles have been the shipment ,of upward of
$5,000,000 gold, a sharp decline in several of
the specialties on the Stock Exchange, marked
by renewed actvity on the part 'of the bears,
and an unexpected advance in wheat, accom
panied by several failures on the bear side of
the market. The gold export now reaches
$32,000,000 since the 21st of February, which
is $2,000,000 above the highest estimate made
of the probable movement when it began. It
has had little effect upon the rates of money as
jet proof sufficient that the loss of It Is not
harmful to any legitimate interest. It will con
tinue, undoubtedly, until the amount of loan
able funds is reduced to the actual requirement
of business. No body need be alarmed about
it until there is a marked rise in the rate of
interest, and when this happens it will stop
The exportation signifies it erely that gold can
be used to better advantage on the other side
of the Water than here. It is the consequence
of the extreme dullness in trade."
Junior read and reread it and then
said to himself: "But that is not my
conclusion from what I read in one of
the papers last Saturday, to the effect
that gold was leaving New York because
of the accumulation of silver."
Then Junior turned to a striking
article in the May number of the At
lantic Monthly, written by J. Laurence
Laughlin, and entitled The Silver
Danger. He read it carefully, and
between its lines read lessons for Ha
waii. Then he fell to wonderiug why
all men did .not see the evil of too
much silver. '
In his perplexity, Junior called upon
Senior and asked his views at length,
which were given as follows :
"Up to the end of March, altogether
171 millions of the new silver dollars
had been coined, of which 38 millions
were in circulation, besides 96 millions
more circulated in the form of certifi
cates, leaving 37 millions belonging to
the government Dividing this mass
of silver among S3 millions of people
gives about -$3-25 Per capita. Great
anxiety is felt, and the export of gold is
observed with alarm."
grinding of the keel, and feel no gentle
Junior returned home feeling that the
Hawaiian nation was very like Jonah,
and that if the silver iniquity was not
prevented, the "gulp" was very near at
TttK AV1HTOIZ OKXKItAt.
In reference to the Auditing Act,
this journal, at the time of its enact
ment, expressed grave doubts as to its
utility, and pointed out the weak points
of the law and the inability of any
auditor to check the actions of the
cabinet in the matter of government
expenditure. It was then said that so
loosely framed an act save color to the
suspicion that it was merely one of
those "blinds (in the use of which
the "'prcmire " had shown himself an
adept) designed to mislead the nsscm-
uiy 111 rcgaru to 111c very nuncst inten
tions of the new administration. No
hint, however, was made as to the un
fitness of the man appointed under its
provisions, as no one then had any
reason to suspect that the office would
be conducted in anything but a proper
manner. I he developments, however,
of the last few days show that the
auuitor nas uccn distinctly acting in
contrariety with the law, and that he
has, to a considerable extent, been en
gaged in outside business. He has
been acting as executor of the will of a
deceased person, and, as auditor, has
audited his own bills. It is claimed
by Mr. Walker that his acceptance of
the trust of James Hayselden was
purely an act of friendship for the
deceased, and regard for the widow
and children, and that no commissions
had been charged. While we might
admire the generosity and self-sacrifice
of Mr. Walker in conducting without
charge the affairs of a considerable
estate, we cannot but feel that in so
doing he has distinctly violated the
most essential provision of the act
But the conduct of this estate appears
not to have been the only instance
wherein Mr. Walker has acted in vio
lation of the law. He was agent for
Mr. Hayselden before he died, and
agent for, at least, one other govern
ment contractor. He has also acted for
some time past as an agent for an in
surance company, for which agency we
are also asked to believe he has re
ceived no pay. This propensity to do
business gratuitously for others is, to
say the least, somewhat remarkable ;
but we feel that if such a humane and
generous propensity must be indulged,
it would be far more appropriate that it
should be exercised more in accord
ance with law than can be the case
with a man holding the auditor's office.
Mr. Gibson, as champion in general of
all illegal acts done by or under the
administration (and they are numerous),
has informed the assembly that Mr.
Walker is president of the humane
society, and wishes people to follow his
absurd inference that the holding of
such an office by the auditor is no less
a violation of the law than his holding
of an insurance agency or an executor
ship. If this be so, then the auditor
has no business to hold such office.
But DeoDle not auite fatuous can verv
readily see the difference between the
holding of an office not designed for
commercial purposes, and carrying with
it, no emoluments, and others, strictly
speaking, connected with commercial
transactions and designed for that pur
pose only. The vote or Wednesday,
in the face of what had been shown by
Mr. Gddfrey Brown, was rather a sur
prise that vote may be different when
the report of the finance committee
shall have been presented.
r.naiv r.A rim vmv.kk n txa.
MONtlAV S SFSSIOV - TWFNTV THIRD DAV.
The following petitions were presented 1
fly Mr. Kamakele, that teachers in common
schools receise $1 per day,
llv Minister Neumann, from Chinese resi
dents, relating to the bill for registration of
lly Mr. Nakaleka, for letter boxes on Molo
kal. lly Mr. Hitchcock, for a hospital al Hllo;
that immigration from India be introduced I
for a public park at Ililo ; for water pipes at
lly Mr. t'alohau, that the idea that leprosy
is contagion be done away with j $240,000 for
support of leperj; that lepers with means lake
care of themselves j that Doctor Arnlng and
Mr. Fitch be akcd whether leprosy is a
disease i tint the restriction on intoxicating
liquors be removed.
lly Mr. Dole, $200 to James I,ovell for
damages to property.
lly Mr. Pilinu, the law authoriring an
auditor-general be repealed 1 lo repeal the law
relating to Intoxicating liquors j the law relat
ing to genealogy of Hawaiian chiefs be re
pealled t $Soo (or twat landings in the district
of Kona J $lj8oo for a court house.
lly Mr. Kaulukou, $5,000 for Improving
roads tit Manoa ) licensee be granted for sileof
lly Mr. Kanealii, that the knnnhiki tea
fisheries be thrown open election districts at
Wailuku be divided.
lly Mr. Nahlnu, a bill for $8,000,000 loan
lie passed the king negotiate all loans j
treaties between Hawaii and Japan and China)
continuation of the taw relating to police
f infringe for which the country is now paying
alike Mt of more thai) $jno,ooo per annua.
Let tht aaties (ace the jwtteat lota and place
ut on e gold Maw, and (he gorerniLcul need
newr touch tht currency again,
I as, sir, your obtditnt servant,
r Tmo. H. Davis.
Hrnitlah Ma to. ilia.
We, that is our precious rulers, have
adopted a similar coinage, at the dic
tum of a foreign capitalist, who has
sent us one million. This is now here,
in addition to the $400,000 of mixed
coinage previously in circulation. Di
vide this $1,400,000 among our per
haps 70,000 people, and we have $20
per capita. We have passed beyond
the state of anxiety, we are simply in
despair. Gold flowing out I 1 he U. S.
gold is all gone, except what govern
ment has hoarded to meet its bonds,
and capitalists have placed in the
treas'ury. Sovereigns are at high pre
mium, and exchange at 8 per cent,
and going up. Unless the government
adopts instant sharp surgery, exchange
will shortly reach ao per cent, at which
rate if will pay to ship Ailuau dollars
"Altogether the United States hold
about 800 milljons of coin and 400 mil
lions of bank notes and 400 millions of
greenbacks orttreasury notes, say 1,600
millions of money in all oc $30.00 per
capita. Adding to the $1,400,000 of
silver we have, the $200,000 of gold
stored in the treasury; gives us neraly
$23 per capita in coin alone. This is
manitcsuy lar in excess 01 our uojsiuic
needs of currency. We are mainly of the
indigent classes, Polynesians or Asiatics.
Our urorjertv and business per capita
does not average over half that of the
States. One half the coin in. the
country, or $800,000 would amply meet
the wants of business. We are choking
under plethora of short dollars in
jected dowa our protesting throats."
"And now, on top of all this comes
the new Bank ct Issue, that is going to
give us a million more of paper cur
rency to top off with as a dessert. Was
ever Juch fatuity I In the presence of
such utter lack of comprehension of the
financial distress of the country, and of
its causes, as is shown by the fact that
such a project can receive serious en
tertainment' by the legislature at this
juncture, it does not seem reasonable to
expect any sound measures for relief,
like that of Mr. Dole, can prevail
Messrs Bankers & Co. would doable
the load on our already gorged and
. . . '
"It is not to be hoped, it is not in
human nature that Messrs. Gibson 8c
Co. should take the back track. They
have got the financial skip driving
square at the reef, and they arc bound
ts put htr oa the rocks. She has passed
all the buoys and is tofy in the
iimiun. Ik feet we iinErkm the
TUB SKVJIRTARV OF TOE LKOIS.
On more than one occasion has the
secretary of the legislature delayed the
business of the house by a neglect of
his plain duty. In the matter of the
resolution, that the opinion of the
judges of the supreme court be asked
relative to the legality of unnaturalized
subjects holding government office;
also whether letters patent of deniza
tion be sufficient to avoid the naturali
zation act, so far as holding government
office, or receiving government pay, is
concerned ; and in the matter of the
resolution requiring the commissioners
of crown lands to report on their reve
nue,, the secretary failed to give the
" official " notice required by parliamen
tary usage. Whether done intention
ally, through ignorance, or through ne
glect, such conduct is highly reprehensi
ble, and deserving of the sternest rebuke.
Next to the presidency of the assembly,
the clerkship is the most important
olhce, and the incumbent should be a
man reliable in every particular. Neither
the history of the doings of the secre
tary during the legislature of 1882, nor
the acts hereinbefore related, point to
the present secretary as a man worthy of
that full confidence which the incum
bent of such an office should enjoy,
The office has heretofore been occupied
by men, competent, painstaking, and
efficient in the discharge of its duties,
and we trust hereafter the present hol
der of the office, will better endeavor to
emulate their example.
Jreeenf JVataSIt JtaatAj.
In Evtntton, Illinios, April 19th, Rev, F,
D. Htmmenway, a distinguished Methodist 1
in Ithlca, New York, T, D. Wiltox, the oldest
steamboat man in active service In America,
aged ll : in Ctntreville, Maryland, Dr.
Robert Wright, the oldest graduate of Weal
Point) in Paris, France, April S4lh, Maria
Taction!, the famous dancer, aged 80 1 In New
York, April 25th, Or. Willard Parker, one o'
the mott diatinquuhed of American physicians,
aged 84 1 in Newark, New Jersey, Ex-Gov.
Marcut Ward, aged 74 1 in New York, Brevet
Mai. Gen. Emerton Opdykt, aged 541 la
New York, George E. Ewing the aculptor,
aged 55 yean ; in Morrwtown, New Jersey,
John M. Cuyler, surgeon on the retired list,
aged 74 1 in Maine, Stephen D. Lindaey,
member of Coogest from that State, aged 5(1 :
in New York, Gen. Langton C. Eaton, aged
70; In England, Sir Michael Arthur Bast, M.C,
of the famous brewing firm of Bats & Co.) In
Brighton, England, Chevalier Henry WlkorT,
diplomat and writer in New York, Milton
Pill Palmer, a well known song and hymn
writer 1 In Pari, France, Jean Pierre Henry
Lamorte ; In Prague, May 3d, Empress Anna,
widow of Emperor Ferdinand IV of Austria,
aged 80; In Warsaw, General Kalbire, an ex
governor of Poland 1 in Mett, Char let Add
phus Wart, a distinguished chemist j In Phila
delphia, May 61b, Prof. S. D. Groat, a promi
nent surgeon ) In Nantucket, May lath, Chat.
O'Conor, one of the mott prominent American
Mist F, M. Lack h on exhibition at ttr
Fon-Sirecl atore, toase very fiat specimen 0
" anient" work on plutb. itt ktf tbt
sastwlti f Stock.
lly Mr. Kauli.i, parents liming childrch at
tending English schools lie exempt from
Uy Mr. Gardner, $600 for boat landing nt
Kamoa j awa licenses be granted t two repre
sentatives for liana s mail carriers' salaries be
Increased more police for district of I Una.
lly Mr. Kauhane, to establish boarding
lly Mr. Richardson, no change In the hold
ing of the Wailuku Circuit Court ; $5 be paid
Kalama for mail service.
Mr. l'illpo reported auditor general's report
Bills and resolutions were oflTcred as follow st
Uy Mr. C. Brown, to amend chapter ja
laws of 1881.
lly Minister Kapena, to amend section I re'
Itting to currency. Passed second reading
and referred to currency committee.
lly Mr. F. Drown, $5 be refunded Maulu
for taxes paid twice over.
By Mr. l'dipo, a resolution that Minister
Gibson state the expenses connected with the
following commissioners sent abroad: Minister
Kapena to Japan G. W. Macfarlnne to
Portugal ; C. P. laukea lo different countries ;
Captain Tripp to Southern Islands.
By Mr. Kaunamano, the district of llama
kua be surveyed for railroad.
By Mr. Dole, that the crown commissioners
report be presented.
By Mr. Kauhane, to amend chapter 22
Session Laws of 1882.
Mr. Keau was granted leave ol absence for
Mr. G. Brown asked for the answer of the
auditor general with regard to a resolution
passed whether he had engaged in any outside
profession during his term of office. Mr.
Walker denied that he had engaged in any
other duties, he had not been in active service
for many years. Mr. Brown said he had
proofs that he had.
Minister ISeumann otlcred a resolution that
the Ling request the crown commissioners to
report the revenues from the lands. Mr. Dole
moved indefinite postponement of the reso
lution. The commissioners could be asked to
report to this assembly. We can call any one
to account except tne king. Air. w. U. Umltn
said it was wrong If the commissioners received
rents in advance. The resulutlon was indefi
Several of the members now moved adjourn
ments for various periods.
Mr. G. Brown said the books of the interior
department were in a most disgraceful con
dition, which retarded the work of the finance
committee. The clerks in that department
did not understand tneir duties.
Mr. Smith told Minister Gibson there would
be some fine fun when, the finance committee's
report came in.
Mr. Aholo thought the short sessions ought
to give the committee plenty of time.
Mr. Kanealii could not favor any adjourn
ment. He wondered how the newspapers
had got hold of certain items from the finance
committee. Mr. G. Brown (aid they hd "
been.ohlainrd f w. .. :.i.
A bill was read for the first time by Mr.
Richardson, to amend Article 44, Chapter 16
of the Civil Code, relating to water rights.
Passed to second reading and referred to
TUESDAY S SESSION. TWENTY-FOURTH DAY.
Petitions were presented as follows :
By Mr. Kamakele, that no Crown lands be
leaked to aliens.
Bv Mr. Philipo, that the house carefully
examines the coinage contract : also claims tor
damages from people living out of the country;
$5000 donors tor roads at nortn Kona; reduc
tion in salaries from the King downwards ;
that no crown lands be sold; no govnrnmtnt
lands be sold to aliens.
Bv Mr. Palohau, no lepers be sent to Kaka-
ako until after the leislature adjourns.
Uv Mr. Kaunamano, lor water pipes or
ditch at Hamakua.
By Mr. Nahinu, for Kahunas to practice
Mr. Pihpo reported the bill for laing
horse-cat railroad in Honolulu as printed
Bills and resolutions were offered as follows;
Uy Mr. Pillpo, whether the tax assessor of
Honolulu has authority to request policemen
to collect certain taxes not authorized by law.
Laid on table.
By Mr. F.Brown, that the Minister of the
Interior present hit report for the past biennal
period. Mr. Aholo said it would not make
any difference if the resolution was passed or
not as the Minister intended to present his
Minister Gibson, presented a report in accor
dance with a resolution patted, that all docu
ments be forthcoming relating to coinage.
Mr. Dole asked how much salary was paid to
Mr. Spreckles as agent for the coinage, he
had not heard of any amount having been
paid him, and thought It not likely he gave
hit services graliouaTy. Minister Gibson said
Mr. Spreklet had informed him there would
be tome chart!. He was away now, but
perhaps his agents here would be able to fur
nish particulart at to tht amount. The house
received tne report.
By Mr. Kaulukou, that a license be granted
to H. J. Nolte to tell light beers at the Casino.
Mr. W. O. Smith said people livine near
the Casino objected to tuch a license being
granted, it would only create disturbances be
tween those who used their light beers, and at
the present time peace and auletnesi prevailed
there. The.blll was referred to committee on
By Mr. Martin, to amend chapter session
laws of 187! relating to desertion between man
Mr. C. Brown read first lime a bill to amend
chapter 32 relating to express-drivers license.
ratted to ana teeuing.
Auditor General Walker said the chairman
of the finance committee had stated he bat evi
dence to prove he had engaged In ether bull
nets than that of auditor geneaal. He would
like to hear it. President Rhodes said If tht
Hon. member had anything to produce it
should be fotbeoming in justice to Mr. Walker.
Mr. u. Brown lett tne house tor a lew mo
ment! and returned with several document!
which showed that Mr. Walker had acted
at agent for Ihe ealate of J, G. Hay
widen, deceased. He would alto say that two
member! of the honsc could furnish additional
evidence. Mr. Walker said before acting for
the estate of the deceased ht had .sought tht
best legal advice, and found It would not be
breaking iht law, lit did not receive any
emolument, limply acted at a friend. Mr. W.
O. Smith very much lesjrettrd the mallei had
court up. The auditor general had violated
tht law, and la support produced two pepert
that be had bad buaWvt transactions as agent
of this tttett with the California Bridge Com
pany, relating to building of bridges oil Kauai.
Ut said Mr. Walker haTalso acted for a sta
ble and an Insurance company, and shipped
goods to ihe Slates.
Minister Neuman moved that the house ac
cept Mr. Walker's explanation a satisfactory
Actios In tht capacity of an agent without sal
ary did not break the law. Reports bad
stone round the town and he IruuwM ihe fi
nance committee were to bkatt foe It, ll was
not bit to eilhee Mr. Walker or list house,
Mr. Cecil Brown said Mr. Walker had trass
acted business with Mm, ad tht spirit of the
law MM Peu bfokta. 11 M
would not resolve Itself into a ttliitevsashing
committee. Minister Gibson thbiightthe mat
ter hinged upon misinterpretation of the law.
The auditor general's explanation should be
accepted. Minister Neumann said if the audi
tor general had lirokcn the law he ougnt not
In tit In the house. Some of the member of
the house engaged In his profession, alwa)
opposed emy thing he said. There was no
proof of any violation of the Itw. The audlto
general's explanation was finally accepted by
WEDNKSDAV'S SKSIO.N TWCNTX-HFTlt PAY.
The following petitions were presented i
lly Mr. Kamakele, relating to the servant
and mister act ; Ihe appointment of a nugis
irate for Kalawao.
lly Mr Kauwila, thai Ihe crown lands be
leased only to persons residing on them ; that
Doctor Hammond be pxintcd physician at
Hanalel salary $4,000.
llv Mr. Kaiilukiiu. relating to water rights
and the appointment of a commissioner with a
salary of $500.
Hills read first time as follows 1
lly Minister Neumann, it bill to amend Sec
lions 1006 and 1007, Civil Code, lelatini' lo
appeals. Read second time. A bill to endow
a chair of natural silence nnd chemistry al
fjalm College. Read second lime and relencil
to education committee. A bill to amend Sec
lion 551, Civil Code. Read second lime and
referred to finance committee.
By Mr. Baker, for lighting Honolulu with
gas. Read second lime and referred lo special
committee t Cecil Broun, Baker, Wilder,
Mnlstet of the Interior nnd Kalua,
lly Mr. Kaunamano, to amend Section I,
Chapter 60, Penal Code, relating to construc
tion of statues. Passed to second reading.
By Mr. Aholo, relating to the carrying of
foreign malls. Passed 10 second reading.
By Mr. Kalua, for a permanent settlement
round-keeper r. Kahuliu. indelinitely
Bills and resolutions were offered as
By Mr. Palohau, that the editor of the Pae
Aina be called to accwint for publishing the
following 1 "During the next four weeks we
arc going to publish each day the names of the
members who beg their food of the ministers,
so that each district may see the folly of elect
Ing members who are destitute, nnd rave to
beg their living in Honolulu." Mr. Kalua
supported the resolution. The reporter ol that
paper had a seat in the house nnd was shown
all due respect. He knew that members of
the assembly partook of the hospitality of Mr.
Gibson as he had been asked and declined.
Mr. W. O Smith condemned the impropriety
of members visiting Mr. Gibson's table so
much, it was wrong of the Minister to have
there so often as it led lo discussion on certain
matters brought before the house. Minis
ter Gibson said he Jccrtalnly was not
an Illustration of newspaper abuse, quite
the reverse, it had been of great assistance to
him. His house was very convenient and
gave him a chance to offer hotpitallty. He
believed there were many old friends of his in
this house, and being an old resident it was a
habit of his to entertain those friends and he
intended 10 do it. The words in the Pae
Aina are uncalled for. Members receive good
pay and there is no reason for such statements.
Sir. Dole said there was an old saying that
Ihe shortest way to a man's heart is through
his stomach. There was no harm in any
member keeping open house. I gather that
Mr. Gibson J docs keep open house, before I
thought Is was only rumor. I don't defend
any remarks that call th: members beggars.
Open house needs more explanation than has
been given, and no one it so deficient as not
to understand what it means. The resolu
tion was finally lost.
By Mr. MottSmith.that the mlnlsterof finance
suspend the resolution of May 15th, that
all duties be paid in gold from June 1st, until
the bills before the Assembly pe disposed
off. Mr. Widemanu supported the resolution
as he had Intended to bring in such a lesolu
tion on "his own hook." Minister Kapena
seconded the resolution. Mr. W. O. Smith,
thought by the Minister seconding the resolu
tion Tie wanted to get out of it. The resolu
tion was carried.
By Mr. C. Brown, to amend sections 67
chapter 42 relating to taxes; section 17, 18,
chapter 55 penal code; section 7 and 8, lelat
ing 10 pesunger traffic.
uy Air. Aholo, mat tne secretary lurnisn a
copy of the railroad bill before the house lo
1S82 to compare with the present one. car
ried. In answer to a resolution, asking how many
miles of railroad would be necessary for the
proiected line from . Hamakua to Ililo. Mr.
-TTiiiicrsiaicu irom tlilo to Laupahocnoe was
37 miles, from Ililo to Kukuihaele 70 miles.
The order of the day was; the second read
ing of a bill for the registration and identifica
tion of Chinese. Minister Neumann said
Mr. Preston was counsel for a number of
Chinese residents, he would move a special
committee be appointed and hear what Mr.
Preston had to tay. The president appointed
the following committee: Attorney-General,
C. Brown, Dominis, Kanoa, Pilips.
Second reading of a bill to amend chapter
1st, section 7 , relating to government holidays.
Kefered to committee on commerce.
THURSDAYS SESSION TWINTV-SIXTH DAV.
Petitions were presented as follows:
By Mr. Kamakele, relating to government
lands being sold to persons having land ad
joining, in preference to others.
By Mr. Richardson, relating to currency,
from the district ol Honolulu.
Minister Gulick presented his report in both
languages, for the past biennial period.
Bills and resolutions were offered as follows;
By Mr. Aholo, to regulate the payment of
laborers under contract.
By Mr. Nakaleka, $7000 for improving
roads at Lanai.
By Mr. Kaulukou, $10,000 for improving
roads at Waialae.
By Mr. Kupihca, to amend section 782 civil
code relating to elections.
A communication was received hy the Presi
dent from the Rev. J. A. Cruian, inviting tht
memembers to take part in the exercises ot
Bills were read first time as follows)
By Mr C. Brown, to amend sections 17 and
18, chapter 55 penal code; sections 6, 7, 1
relating to passenger traffic in the kingdom.
Patted lo second reading.
By Mr. Kahinu, to amened ind repeal sec
tions relating to the Konohlkl sea rUaerlts;
Passed to second reading. '
By Mr. Amara, to amend section 1447 civil
code. Passed to second reading.
The bill relating to the Hawaiian National
Bank was reported presented.
The order of the day wast
Second read lug of a bill relating to the num
ber ofhourttobe worked I7 laborers ,an4st
contract. Kefered to commerce ctMSHBtttse,
Second reading of a bill to amend tactlstt I
chapter 79 penal code relating to birthtt.
marrlaget and deaths. Refered to Judiciary
Second leading of a bill lo amend section ll
chapter 86 penal code relating lo Intpec.ors of
elections, isererca 10 juuiciary commute.
Second reading of a bill teUllna malt war'
tax receipts. Refered to commerce coramUltt.
yIBAY' !SSION TWNTV-SvailTH DAV.
Mr' Kamakele prrseftted a petition xrilb Ul
signature! that the dog lax be rtduett! to
tee lead gsveo out arty Haitrswnlt the otxjfct
lo to cteawtd. Ms. wit aaU that a avta
could tatff two aaaettrt. , Vary fattktmd'ttMi
Attorney General Neaman ealltdtilf tloa Wt
ertain blackguard nttttuasar whists had pub
ithed the following r "j-Tlst aMeetsey genteel
whined about the djtatiittisi or on of the
membeu to attack the rtvitskat."
Ht understood that ats of tht
of this house was tbt editor of this 1
It was very unbecoming foe hiea loeupplemtat
hit arguments in the house throoch his psast.
Ht hoped it was not sol U" trot, this taembtf
wat nothing more than a blackguard aad Use.
Tbt iHctidenl called tht attorrttv atatnl to
ordtr, remarking it was lUt sttM .atrHtmea
Urylanguage he had ever heard la the house,
The Attorney Genera! apologised, tad
hoped nq on in tht housa wat troubled by
Tht ordtt of the day was,
Second reading of a bill to amend SeotioB
16S civil codt relating to the auoiMSStj of
thesupervisois. Referred to l)ivlktrt-SMaeal
committee 1 Richardson, miaiattr of Mrisf.
Hitchcock, Kauwlla, C, hVvwa, Itatotf eat)
Kecond reading ol a W reUtlttf, lo tht til
ing of certain vacaadet In ottce.
Referred lo Udiaiary oatassitlee. -g
Second reaJtaf of a MM fat the miKihatt ol
the properties Hoarduhi Hale and tWaamsi
Heed on account ol Ihe HatyaUaa Goeemmtas
Pasted to etntottmeat, aad to be Nad a thttd
time oa Saturday.,..
Mr. Pelettwita ts miking, laj twaaact ta
wuh W lota otftce btutorthop aad,,
tatoon oa King street, a
Mr. C. II. Hmelmen it
hat sited oil Miasiag of hmhost
...mfc-., j jc(