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CWfJjw Trvusvtvfzyvw -"" Tr?,CT.:
Bill No. 78, Hawaiian Banking Act.
I hnvo hoon risked to give my
opinion of Uio 15111 ontiflod "Tho
llnwniinn Bunking Act," introduced
into tho llnwniinn Legislature by a
Noblo of tho Kingdom of Hawaii,
considoration of which was ponding
at tho dato when my correspondent
wrote from Honolulu, August 17,
I havo somo hesitation in comply
ing with this request, becauso it is a
matter with which I, as an individu
al, havo no concern; but inasmuch
as I havo, from association and
otherwise, a deep interest in the
progress and stability of tho llnwni
inn state, 1 shall present very brief
ly my views upon tins reman,
project of law.
First: it is crude, ill-digested, anc
Second: it is contradictory in its
provisions, would entail enormous
expense if tho scheme were modified
to admit of ovon its partial working,
and provides no sutllcient check
against collusion and fraud on the
part of the public olllcers charged
with tho duty of conducting the
proposed national loan and mort
These objections should suffice to
defeat tho n -visum if submitted to
an' roprosL.ilativo body having
business trainiiiij, and no doubt
there nro several members of tho
Hawaiian Legislatuie who will point
out those and many other defects in
tho same line. But tho foregoing
are simply objections to tho details
of tho Bill. The main and fatal ob
jection is to its principle. It is
drawn in utter ignoranco of the
principles of banking, tho uses and
functions of money, and the laws or
rules of credit. No doubt it is drawn
with an honest and praiseworthy in
tent, but it is based upon tho fallacy
that tho state, by fiat, can make or
create money which that brilliant
financial buccaneer, John Law, used
to advance his own fortune and to
impoverish Franco under tho l!o
grony in tho early part of tho 18th
century. Tho nssignats issued by
tho Bank of Franco "made money
plentiful;" that is, it inflated values,
promoted an era of luxury and spe
culation which culminated in the
Mississippi or West India scheme;
but it steadily drove gold and silver
coin out of France, and boro its ripe
fruit in tho French Revolution with
its attendant horrors. For when
the facts of history are calmty and
truthfully weighed, without senti
ment or prejudice, it will bo found
that the great social upheaval in
Franco at the close of tho 18th con
tury, which wiped out tho ancient
system of government, was caused
wholly and solely by scarcity of
monov and not by tho excesses or
misconduct of tho nobility, "f
money" was tho true cause
political and social cataclysm. .
This was in obedience to what is
known as the Greshatn Law, namely,
that it is an unvarying rulo of finance
that the loss valuable medium of
exchange, or money, should displace
the more valuable. The French ob
ject lesson is too remote, however,
to bo of practical value to us, nl
though tho Fronch people have pro
fited by it themselves and now have
tho most perfect and seeuro banking
system iu tho world; but the note
issue of the Bank of Franco is se
cured by a coin reservo of corres
ponding volume. A note issue upon
any other basis is as certain to drive
gold and silvor out of circuit' 'on,
and bring about financial nil '
distress, as tho rising of tho .
brings light and warmth to t;
earth. Tho Fronch silvor note is
payable in silvor. In this it differs
from tho United States, which has a
large omission of paper, but which is
not protected by a coin reserve as in
tho case of France. It is true that
the silver certificates are secured by
silver bullion deposited with tho
United States Treasury, and that
the greenbacks, or Treasury notes,
are secured by a gold deposit of less
than one-thru their face value; but it
was the is'i e of thoso very green
backs, to rido over a temporary
financial difficulty at tho beginning
of tho war, which added so enor
mously to its cost, because they
went into circulation for live yunrs
tocothor with two hundred and iiftv
million dollars of State Bank notes,
and of necessity this currency kept
both gold and silvor out of circula
tion. Tho U. S. Government was
compelled in effect to purohaso gold
at an enormous premium; anil to
avoid uttor financial collapse in 18(55
tho State Banks issue was taxed ton
percent, whereupon these worthless
notes disappeared, and the National
Banking system, tho notes of which
are secured upon United States
bonds, was inaugurated. But whon
the war began tho country was with
out money, that is, tho State Bank
notes had driven all the gold and
nearly all tho silvor out of ttie coun
try; there was practically no gold,
and silvor was at a premium. When
tho "fiat money" of tho United States
was added to the worthless paper
omitted by local banks all over tho
Union, tho effect may bo imagined.
At all events, it was speedily felt by
the country, and tho taxpayers are
now suffering from it.
Tho National Banking system was
faulty howovor, in this, that tho
note issue being secured by U. S.
bonds, thoro is necessarily a contrac
tion in circulation proportionate to
tho cancellation of tho bonds. This
would not havo happened if tho note
issue had been secured upon a coin
resorvo, or gold and silver bullion.
It has led to the recent agitation for
"more monoy," that is, "fiat money,"
tho Alliance or third party, loil'lvy
General Weaver, having formulated
a national banking policy similar in
its main features to tho Homer
Banking Bill of Hawaii. Should this
part' succeed wo should havo in tho
United States, within a very short
timo, similar monetary conditions as
prevail in tho Argentine Republic,
and from almost precisely like causes.
Congress, howover, has been far
from blameless. In July, 18SX), to
meet tho domaud for moro money,
Senators Sherman and Jones secur
ed tho passage of a law limiting the
purchase of silvor, and providing for
the issuo of silvor notes again- h
purohaso, redeemable in gold e
option of tho Treasury, All pa. r
money is so redeemable iu tho Uii. t-
od States. As a ninttor of fact, thoso
notes are treated as gold notos.
Thoro are in excess of ono hundred
millions of these notes in circula
tion, and thev aro being turned out
at tho rale of about SUV0.WO a day.
Tho effect, howovor, and tho inevita
ble effect under tho Gresham law, is
that thoso notos havo steadily de
pleted tho United States Treasury
of its gold, while adding to tho sil
ver hoard, as tho Treasury state
ments issued ovory ton days conclu
In January, 1S8'.), the not gold
balance in tho United States Trens
urv was SHU,Grr,'.2(H. That was bo-
foro the now paper issuo of course.
On January JU, 181)1, nearly seven
months after their first issuo, the
not gold balance had fallon to $111,
H82,M0; and on July 50. 1892, after
two years or active circulation in
daily increasing volume, tho not gold
balance stood at .?1 10,1 ll,.'H)l, against
which thoro was outstanding S10.V
ruTi,17fiof tho Treasury notos of lS'.X),
redeemable in gold. Thus, tho gold
balance really available had been re
duced to $1,878,221 at the closo of
While this gradual disappearance
of gold was taking place, tho silver
coin kept piling up in tho Treasury
vaults becauso the "paper monoy"
greenbacks and Treasury notes of
lS'.H) supplanted it as a circulating
medium; and when silvor ceased to
perform its functions as monoy (for
if is not the medium of redumption),
as a matter of course it steadily fell
in value as a mere commodity, until
India, which is on a silvor basis, be
came so depressed that it roeontly
petitioned for a stoppage of silvor
coinage and tho adoption of a gold
standard. Meanwhile our gold re
serves aro being f ransforred to Eu
rope, whilo our liabilities in gold re
main and go on steadilj' increasing
Austria will soon bo on a gold basis,
at our expense without an offort on
her part apparently. This is why
'old is leaving us for Europe 'stead
ily, dospilo our enormous exports
and favorable trade balance and ox
change. We must speedily come
back to a coin basis or pay the pen
alty. Senator Sherman saw the effect of
his Silvor Bill, and attempted to havo
a repealing Act passed last session;
but tho House did not pass it, be
causo it made no provision for tho
redemption of tho outstanding
Treasury notes issued under it, and
would have stopped tho purchase of
gold. This would only havo intensi
fied tho evil; and the fact that it was
proposed to havo an unlimited free
coinage of silver, on demand of
private owners of silvor bullion, with
out any saleguards whatever, was m
itself enough to condemn tho Bill.
From what has been written it
follows that "paper 11101103," unless
secured by, or based upon, a coin
resorvo sufficient for that purpose,
must ultimately drive gold and silvor
out of circulation. It may tempor
arily inllato values, but all inflation
ultimately results in a lowering of
values: as witness our "boom towns"
in California, tho condition of Mel
bourne and gonorally of all tho Aus
"Fiat money" has been a costly
and wasteful experiment in the
United States, and wo havo not yet
paid tho uttermost farthing which is
duo upon that experiment. Tho
English Banking system is fault,
and tho Bank Charter Act is respon
sible for tho frequent monetary and
financial crises in England. But
groat and rich countries like tho
united States and England may
afford to risk sorious errors in their
monetary laws, whilo a weak and re
latively poor country like Hawaii
cannot. A bill like tho ono untlor
considoration should not be enter
tained. Its discussion even must do
Tho second section roads like a
huge joke, considering tho stato of
Hawaiian finance. The 27tb section
adds A percent to the interest pay
able on 0 percent bonds. But there
is no need to analyso the bill by
sections, it is so loosely drawn. Why
convert tho Post Ollico into a Bank
ing houso? If there is to be a Stato
Bank tho Finance Depart mont should
do tho work. You havo only to pass
tho Ilornor Bill, and grant a fran
chise to the Louisiana Lottery, to
finish Hawaii politically, financially,
llOBT. J. CllCHHITOX.
San Francisco, August 20, 1892.
He's in tho Mud.
Tho P. G. A. of this dato has a
communication from n Mr. Mud, who
seoms to bo very much muddled, and
tho mud which sticks fast to him
011I3' muddles his vision, and ho bo
comes tho muddiest of all the wal
lowing, muddy, muddier, muddiest
mud defiled muddled mud daubers.
Ho trios to fling mud at tho old
National Koforin Party of 1800 by
saying that thoy wore elected "un
der false pretences." Perhaps ho
(,Mr. Mud) was ono of thoso who got
"'loft out in tho cold" 011 that election
day, or porhaps ho was tho chap that
foil into tho taro patch up in Pauoa
Valloy. Well, Mr, Mud, please wash
tho mud off you andcomo again into
tho ranksof thoundofiled by mud.
Honolulu, October 1, 1802.
Something New in Ranges.
The Pacific IIaihhvaiie Co., (L'd.),
havo just received an invoice of tho
M.iV: D. WnouuiiT Steel Ranoe.s
which are superior to anything of
tho kind yot invented, Thoy have
boon adopted by the United States
Navy and aro iu uso on tho Charles
ton, San Francisco and Boston and
other pew vessols. Also on several
of tho now vessels lately built for
tho trade botweon San Francisco
and this port.
An examination of those Ranges
will at once show their many advan
tages over all competitors.
Persons troubled with chronic
diarrhii'a should try Chamberlain's
Colic, Cholera and Dinrrhom Ho
mody. Many cases have boon cured
by it after all olse had failed anil
skilled physicians were powerless.
For sale by all dealers. Benson,
Smith & Co., Agents for tho Hawai
Hki.1, 41 1. - TKLKPHONKS Mutual 10.
? il.Tfi Vcr Cord
IllfiO 1'cr Cord
$1 1.00 l'cr Cord
.4 Foot Lengths
. . .Snwcd mid Split
$13.00 Tor Cord 4 Foot Lengths
$l5.fi0 l'cr Cord Snwcd
I $17,00 Per ford Sawed and Split
t&r- Delivered to nny part of Honolulu
IIUSTAGE & CO.
X. It. Wo guarantee our Wood to bo
sound nnd freo from worms. CI8-I111
DO YOU FOLLOW ME?
Tho "Touiuht Ci
iau" Is made of
nnd Turkish Tolme
eo Killer with Ha
vnna Wrapper of
superior emtio, and
without paper; pro
nounced hy eonnols
seurstuhetholliiest smoke uxtmit.
where n sliort smoke
Is desired. Health
ier and better than
a cigarette for a
"between course "
t&f Ask your
dealer for them I
Tho Kuboy & Co. Branch of tho American
Cigarotte Co., Honolulu.
No. 130 Kort st., : : opp. Club Stables.
OWING TO DKPAUTUKK FKOM TUB
Kingdom the undersigned requests
his debtors to make immediate payment
of their debts to Mr. H. Lose.
A. 1!. KOWAT, V. S.
Honolulu, Sept. S3, 1S!I-'. 531-lW
JL fore existing between S.
S. Levy has been dissolved by mutual con
sent tills day. Mr. S. Khrlie'h will in the
future carry on the business.
Honolulu, Sept. BO, 1802. Kl-3t
MIH UNDKKSIONKI) HAS THIS DAY
bought out the Chun Jwiin llakery at
No. 1! Kekauliko street, and hereby gives
notice that he will not bo responsible for
any debts owing by said Chun Nam.
Per I.00 Chit Sam.
Honolulu, Sept. '11, 18i)2. KW-2v
rplIE UNDERSIGNED INTENDING
X to leavo the Kingdom on October 'M,
requests that all bills against him be pre
sented for payment between now and Sep
tember 30th. Full power of attorney will
bo given to my nephew, Young lio, to
transact my business in inv absence.
Honolulu, Sept. 23, 1S1C2. 530-7t
NOTICE TO SPORTSMEN.
HAVING OBTAINED A Mi THE
shooting rights over the lands known
as JCaliii, Kiikuhiacound Kakaak'jiu Hono
lulu, all persons arc horeby notified that
any person found shooting on the above
mentioned lands without permission from
tho undersigned will bo prosecuted accord
ing to law. Ten ($10) dollars reward will
be paid to any person giving information
leading to the detection of person violat
ing the above notice.
fi35-lw C 11. WILSON.
NOTICE TO VOTERS.
AMiVOTKUS "SVIIili BE REQUIRED
to present their Tax Receipts or Ex
emption Paper (hy Law) to vote on Elec
tion dav. M. It. COLHURN,
L. J. NA1IORAHIPA.
Honolulu, Sept. 20, 18U2. KB-It
ALOHA BOAT HOUSE
HAS EVERY ACCOMMODATION FOR
Itatliing. Will convey Bathers to
and from Tug-boat Wharf on rccolpt of
message Hell Telephone 157 all included
for Twenty-live Cents.
Pleasant Furnished Rooms on the Water
For nciitlemnn, with Bathing and Boating
included, at moderate runt.
Bell Tele. 157. Aloha Boat House.
Election of Ofllcors.
ELECTION OF OFFICERS.
T THE ANNUAL MEETING OFTHE
Sept. Ill, Ibili, the following Stockholders
were re-elected to servo as olllcers during
ine ensuing year:
W. G. Irwin
J. D. Sprcekolti ..
W. M. Gillard
Secretary II. S, Co.
ELECTION OF OFFICERS.
AT TH E ANN UAL MEETI NO OF THE
Mutual Telephone Co. hold this dav.
tho following gentlemen were duly elected
to servo us olllcers for the ensuing 'year:
President Hon. II. A. AVidemuun,
Vice-President.. Hon. C. R. Bishop,
M- . Hon. C. O. Merger,
Auditor Hon. W, V. Allen.
Messrs. F. A. Sehaefer, W. 0. Irwin, Cecil
Brown, S. ('. Allen and the above-named
ofllcers ex ullicin,
CO, HE HO EH,
Honolulu, Sept. 28, 18!).'. 531-lw
When you want a Portrait linlanjed
cull on Kituj HruH,, get their Price List,
uml see Samples, 'They can't be beatl
rpHK 110YAL HAWAIIAN HOTKL CO.
.L has leased the property belonging to
4. .uiiruni J. -Ml., in 11 lllhlnli
A I A. in.. Ii'l.1. i
Ksti., In Walklki
the present, wilf lie open to the public as
an annex 01 too jintci, aim win no Known
ns the "Hotel l'ark Annex." ltosides the
main Iiouo there are Thrco Cottages ad
mirably adapted for families:
1 containing r
II00111M, Kitchen and Laha
2 The "Hreen Coltniro" coiitiiinlnir Par
lor, I lied Rooms, Kitchen, J'antry, Hath
3 Tho "Seaward Cottage" with I Hood
Rooms and a )reslng Itoom.
All tho Cottages aro woll-appolnted in
Furniture, Fitting", etc., and tenants will
lm entitled to bathing privileges. Tbc sea
bathing being unsurpassed on the Island.
TboMaln lluilillug will be reserved for
tho live of tho guests of the Hotel, but it
nioy be rented for I'lenies, Itathing Par
ties, Dinners and Dances, etc., for all which
purposes it oilers exceptional advantages.
A charge of Twcnty-Uvo t$-.") Dollars will
be Hindu for tho use of the House anil
Grounds including Unfiling, Lights, etc.;
prepayment is required for intended ue of
the Main lliiililiiigaud 0 rounds.
3P- For furthor particular application
should be made to the Manager of the
itoval Hawaiian Hotel. MT-tf
WI. -G. IRWIN &' CO.
OFFER FOR SALE
AI.I'.X. CKOSS .1 sons'
Celebrated High Grade Cane Manures.
We aro also ircpared to take orders for
Messrs. 1ST. Olila-ncit Be Co.'s
Insuring prompt delivery.
This is' a superior Paint Oil, con
suming less pigment than Linseed OH, and
giving a lasting brilliancy to colors.
Used with driers it gives a splendid floor
REFINED SUO AHS,
Fairuank Canning Co.'s Corned Beef
1'AllAKKlSn 1'AINT C'O.'H
Compounds, Roofing & Papers,
Reed's Patent Steam Pipe Covering.
Jarboos' Diamond, Enamel & Evor
Especially designed for Vacuum Pans.
Hartford Fire Insurance Co.,
London & Lancashire Fire Ins. Co.,
Thamos and Moraoy Marine Ins. Co.,
New York Life Ins. Co.,
C. 0. BERGER,
General Agent for Hawaiian Islands.
St. Lo-ULis, JSLo.
BREWERS OF FINE
Manufactured from Pure Malt
OVXu Corn or Corn Preparations used In place of Malt, as is done by other East
ern llrcwories, In order to cheapen tho cost of their lleer, and to compete with our
vnM.i'n,mi',iin1 n,iil tnsllv fmnnil nrtlc
Bng7BT?yg:? sv . - . CTCaagfcSfgS3W!.'caas5
With the Completion of the New Brewhouse,
the Brewing Capacity is the Largest
of any Brewery in the World.
Brewing Capacity: 6 kettles every 24 hours, G,000 Barrels, r 1,800,000
Barrels per year.
Consumption of Material: Malt, 12,000 bushels per day 8,600,000
bushels per year. Hops: 7,500 lbs. per day 2,250,000 lbs. per year.
No Corn or Corn Preparations are used in the manufacture
of the Anheuser-Busch Beer. It is, therefore, the highest priced but the
inst wholesome and really the least expensive for its superior quality.
' A.nnuai.Shu'pinpCapacitv: 100,000,000 Bottles and 5,000,000 Kegs.
The ANiiKUhnt-litisi'ii Co. have carried oil' the Highest Honors and the Highest
Class Oold Medals wherover they huvo "competed. At all ot the International Exhibi
tions throughout the world their iieor Excelled All Others!
This Company have prepared a Special Iirand of their Highest Grade lleer for the
Hawaiian Islands, known as "SPECIAL DREW," with a handsome label and in White
Hetties, which, with their best "EXPORT ANHEUSER" in Dark Dottles, heretofore
imported, we will now supply to the Tra le in Quantities to Suit.
G-. W. MACFARLANE & CO.
104 Port Street, Honolulu..
THEO. H. DAVIES & CO.
Have Opened Their New
China, Glass and Furniture
Salesroom ou Kaalmmanu St., Ground Floor,
LAUCJE ASSORTMENT OF NEW GOODS !
Royal Worcester, Crown
3STew K.iAgs and Carpets,
Fine Show of Glassware, Iyorywarc, Bohemian Vases, Wine Glasses,
Tumblers, Cut Salads, Etc,
and Highest Grade Hops!
Agents for tho Hawaiian Islands.
f rtf j5ag7?
Derby, Wedgewood and Other
gCH Golden Rule Bazaar,
"W. F. REYNOLDS, Prop.
Paper Patterns !
FULL LINE OF
At prices which wo established on
commencing CASH Business.
Turkish Bath Soap, 4 Cakes 25 cts.
Farina Bouquet, 4 Cakes 25 cts.
Oatmeal Soap, 4 Cakes 25 cts.
Curly Maple, 4 Cakes 25 cts.
And OtherSoaps at 3 for 25 Cents.
Seo our Fino Line of
Blank Books of all Descriptions.
Base Balls, Tennis Balls, Tennis Rackets.
Sf Call and see our floods before buy
ing cKcwhetc. Last but not least
A IjARIIF. VAltlKTY OK
Novels & Popular Bound Books,
IS SHOWING A
- Now so Popular-
AND AT PRICES WHICH YOU WILL
CONSIDER EXCEEDINGLY LOW
FOR SUCH HIGH GRADE GOODS.
II. F. WICIIMAN
T. P. 8EVERIN.
A. W. BOI-STKR.
Fort St., over F. Gortz's Shoo Store.
VIEW, LANDSCAPE & PORTRAIT VIEWS
OF THE ISLANDS,
Such as Natives Making Foi Grass Houses
Hawaiian Stylo Hiding Hulahula
Dancers Cocoanut Groves Palm
and Date Groves Street Views
and Buildings War Vessels
Shipping and Murine
Views, Ete., Etc.
Also a Largo Collection of all Prominent
and Interesting Views of the Hawaiian
IsIuiuIh, either Mounted or Unmounted.
Books of Hawaiian Views
Made up to Order at the most Reasonable
Itatcs In Honolulu.
Cabinets S6 and S5 a Dozen.
Ml P. 0. llox 493 Itf
Wm.G. Irwin & Co.
Win. CI. Irwin, - President and Manager
Clans Sprcekels, - - - - Vice-President
W. M. Gillard, - Beerelary and Treasurer
Theo. O. Porter Auditor
ACIENTS OF THE
Oceanic Steamship Company,
OF SAN KltANOISCO, OAL.
C. BREWER & CO.
J. O. Carter President and Managor
O. H. itohertsou Treasurer
K. V. Bishop ,, Secretary
W. P. Allen Auditor
Hon. O. ILUishop 1
S. 0. Allen Directors
II. Wuterhouse )
The Best Lunch in Town.
Tea a-nd OofTee
AT ALL HOOnS. ' ' ,
THE FINEST BRANDS OF
Cigars and Tobacco
ALWAYS ON HAND.
H. J. ISTOXjTE!, Prop,
r!td ffrfc '