Newspaper Page Text
Bill No. 78, Hawaiian Banking Act.
I hnvo boon naked to give my
opinion of tho Bill ontitlud "Tho
Hawaiian Hanking Act," introduwd
into tho Hawaiian Legislature by a
Noblo of tho Kingdom of Hawaii,
consideration of which was ponding
nt tho date whon my correspondent
wrote from Honolulu, August 17,
1 hnvo somo hesitation in comply
ing with this recpiest, because it is a
matter with which 1, as an individu
al, hnvo no concern: but inasmuch
as I hnvo, from association and
otherwise, a dcop interest in the
progress and stability of tho Hawai
ian state, 1 shall present very brief
ly my viows upon this remarkable
project of law.
First: it is crude, ill-digested, and
Second: it is contradictory in its
provisions, would entail enormous
oxponso if tho scheme wore modified
to admit of ovon its partial working,
and provides no suilieiont check
against collusion and fraud on the
part of tho public otlieors charged
with tho duty of conducting the
proposed national loan and mort
Thoso objections should suflico to
dofoat tho moasuro if submitted to
any roprosontntivo body having
businoss training, and no doubt
thoro aro several members of tho
Hawaiian Legislature who will point
out thoso and many other defects in
tho same lino. But the foregoing
aro simply objections to the details
of tho Bill. Tho main and fatal ob
jection is to its principle. It is
drnwn in uttor ignorance of tho
principles of banking, the usus 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 tlio lallacy
that tho state, bjr fiat, can make or
create monoy which that brilliant
. financial buccaneer, John Law, used
to advanco his own fortune and to
impoverish Franco under tho Ke
grony in the early part of tho 18th
century. Tho assignats issued by
tho Bank of France "made monoy
plentiful;" that is, it inflated values,
promoted an era of luxury and spe
culation which culminated in the
Mississippi or West India bchemo;
but it steadily drove gold and silyor
coin out of Franco, and boro its ripo
fruit in tho Frouch Revolution with
its attendant horrors. For whon
tho facts of history aro calmly and
truthfully weighed, without sonti
rnent or prejudice, it will bo found
that tho great social upheaval in
Franco at tho closo of the 18th cen
tury, which wiped out tho ancient
system of government, was caused
wholly and solely by scarcitjr of
monoy and not by tho excesses or
misconduct of tho nobility. "Paper
money" was the true cause of that
political and social cataclysm.
This was in obedience to what is
known as tho Gresham Law, nameby,
that it is an unvarying rulo of finance
that the loss valuable medium of
exchango, or money, should displace
the more valuable. Tho French ob
ject lesson is too remote, however,
to bo of practical value to us, al
though tho French uconle have pro
fited by it themselves and now have
tho most perfect and seeuro banking
system in tho world; but tho note
issue of tho Bank of Franco is so
cured by a coin reserve of corres
ponding volume. A noto issue upon
any other basis is as certain to drive
gold and silvor out of circulation,
and bring about financial ruin and
distress, as tho rising of tho sun
brings light and warmth to tho
earth. The French silvor noto is
payable in silvor. In this it differs
from tho United States, which has a
large emission of paper, but which is
not protected by a coin rosorvo as in
the case of France. It is true that
tho silver certificates aro secured by
silvor bullion deposited with tho
United States Treasury, and that
the greenbacks, or Treasury notes,
aro secured by a gold deposit of less
than one-third their face value; but it
was the issue of thoso vory green
backs, to tide over a temporary
financial difficulty at tho beginning
of the war, which added so enor
mously to its cost, because thoj
wont into circulation for five years
together with two hundred and fifty
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 purchase gold
at an enormous premium; and to
avoid uttor financial collapse in 18(15
the State Banks issue was taxed ton
percent, whereupon these worthless
notes disappeared, and tho National
Banking system, the notes of which
aro socUred upon United States
bonds, was inaugurated. But whon
tho war began the country w.'is with
out monov, that is, tho State Bank
notes had driven all tho gold and
nearly all tho silvor out of the coun
try; thoro was practically no gold,
and silvor was at a premium. Whon
tho "fiat monoy" of tho United States
was added to tho worthless paper
emitted by locnl banks all over tho
Union, tho offoct may bo imagined.
At all events, it was speedily felt by
tho country, and tho taxpayers are
now suffering from it.
Tho National Banking system was
faulty howovor, in this, that tho
noto issuo being scoured by U. S.
bonds, thoro is necessarily a contrac
tion iu circulation proportionate to
tho cancellation of tho bonds. This
would not have happened if tho noto
issuo had boon secured upon n coin
rosorvo, or gold and silvor bullion.
It has led to tho recent agitation for
more monov. unit is. "lint monov."
tho Allianco or third party, led by
General Woavor, having formulated
a national banking policy Himilar in
its main features to tho lfornor
Banking Bill of Hawaii. Should this
party succeed wo bhould havo in tho
United States, within a very short
time, similar monetary conditions as
provail in tho Argentine Kopuhlic,
and from almost prooisoly like causes.
Congress, howovor, has boon far
from blamoloss. In July, 1890, to
moot tho domand for more money,
Senators Shorman and Jones socur
od the passago of a law limiting tho
purchase of silvor, and providing for
tho issuo of silvor notes against such
purchase, redeemable in gold at the
option of tho Treasury. All paper
money -is so redeemable in tho Unit
ed States. As a matter of fact, thoso
notes aro tieated as gold notes.
Thoro nio in excess of ono hundred
millions of thoso notes in circula
tion, and thov aro being turned out
at tho rate of about .?ll0,000 a day.
The effect, however, and tho inevita
ble offoct under the Gresham law, is
that these notes havo steadily de
pleted the United Stales Treasury
of its gold, while adding to tho sil
ver hoard, as tho Treasury state
ments issued ovory ton days conclu
In January, 18S9, tho not gold
balance in the United States Treas
ury was Sl(.M,(rr,'2(U. That was bo-
fore tho new paper issue of course.
On January 81, 1891, nearly seven
months after their first issuo, tho
net trold balance had fallen to $111,-
5)82,1)10; and on JulyHO, 1892, aft or
two years of active circulation in
daily increasing volume, tho not gold
balance stood at ?1H),HI,:191, against
which thoro was outstanding S10.V
5(50,170 of tho Treasury notes of 1890.
redeemable in gold. Thus, tho gold
balance really available had boon re
duced to $-1,878,221 at tho closo of
While this gradual disappearance
of gold was taking place, tho silvor
coin kopt piling up in the Treasury
vaults because tho "paper monoy"
greenbacks and Treasury notes of
1890 supplanted it as a circulating
medium: and whon silver ceased to
perform its functions as nionoj' (for
it is not tho medium of redemption),
as a matter of course it steadily fell
in value as a mero commodity, until
India, which is on a silvor basis, bo
came so depressed that it recently
petitioned for a stoppago of silver
coinage and tho adoption of a gold
standard. Meanwhile our gold re
serves aro being transferred to Eu
rope, while our liabilities in gold re
main and go on steadily increasing
Austria will soon bo on a gold basis,
at our expense without an effort on
her part apparently. This is why
gold is leaving us for Europe stead
ily, despito our enormous exports
and favorable trade balance and ex
change. Wo must speedily coino
back to a coin basis or pay tho pen
alty. Senator Sherman saw tho offoct of
his Silver Bill, and attempted to have
a repealing Act passed last session;
but tho House did not pass it, bo
cause it mado no provision for the
redemption of tho outstanding
Treasury notes issued under it, and
would havo stopped tho purchase of
gold. This would only havo intensi
fied the evil; and tho fact that it was
proposed to havo an unlimited froo
coinago of silvor, on domand of
privato ownors of silvor bullion, with
out any safeguards whatever, was in
itself enough to condemn tho Bill.
From what has been written it
follows that "paper money," unless
secured by, or based upon, a coin
rosorvo suilieiont for that purpose,
must ultimately drive gold and silvor
out of circulation. It may tempor
arily inflate values, but all inflation
ultimately results in a lowering of
values: as witness our "boom towns"
in California, tho condition of Mel
bourne and generally of all tho Aus
"Fiat money" has boon a costly
and wasteful experiment in tho
United States, and wo have not yot
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 the frequent monetary and
financial crises in England. But
great and rich countries like tho
United States and England may
afford to risk sorious errors in their
monetary laws, while a weak and re
latively poor country like Hawaii
cannot. A bill like tho ono under
consideration should not bo ontor
taiued. Its discussion ovon must do
Tho second section reads liko a
huge joke, considering tho stato of
Hawaiian finance. Tho 27th section
adds i percent to tho intorost pay
able on 0 porcont bonds. But thoro
is no need to analyse tho bill by
sections, it is so loosely drawn. Why
convert tho Post Office into a Bank
iug house? If thoro is to bo a Stato
Bank tho Finance Department should
do tho work. You havo only to pass
tho Hornor Bill, and grant a fran
chise to tho Louisiana Lottery, to
finish Hawaii politically, financially,
Robt. J. CnniouTON.
San Francisco, August 29, 185)2.
A Good Thing to Keep at Hand.
From the Troy (Kansas) Chief.
Somo years ago wo wore very much
subject to sovoro spells of cholera
morbus; and now when wo fool any
of tho symptoms that usually pro
coed that ailmont, such as sickness
at tho stomach, diarrhoea, otc, wo
become scary. Wo havo found Cham
berlain's Colic, Cholora and Diar
rhaia Remedy tho very thing to
straighten ono out in such cases, and
always keep it about. Wo aro not
writing this for a pay testimonial,
but to let our readers know what is
a good thing to keep handy in tho
houfeo. For Salo by all dealers.
Benson, Smith & Co., Agents for tho
Something Now in Ranges.
Tho Paciho Hardware Co., (L'd.),
havo just locoivod an invoice of tho
M. & D. Wrought Stei:l IUnoes
which aro superior to anything of
tho kind yet invented. Thoy havo
boon adopted by the United States
Navy and aro in uso on tho Charles
ton, San Francisco and Boston and
other now vessels. Also on several
of tho now vessels lately built for
tho trade between San Francisco
and this port.
An examination of thoso Ranges
will at onco show thoir many advan
tages over all competitors.
m m m
Persons troubled with chronic
diarrhoea should try Chamberlain's
Colic, Cholora and Diarrhoea Ro
mody. Many cases havo boon cured
by it after all else had failed and
skilled physicians wore powerless,
For salo by all dealers. Benson,
Smith & Co., Agents for tho Hawai
"Put Your Spnro Timo In tho Bank."
Did you ever hear of the Australian
Time Dank (Limited)? XoT Well,
then, you must know about it, and
right away, too.
Mr. Anstey describes it. Tho idea
is this. You don't uso all your timo
to advantage Most of it in fact
runs to wasto. You oft on hnvo tho
timo, but no chanco to invest it pro
fitably. So tho timo slides out of
your possession, just as spilled wator
soaks into tho ground nnd is lost.
Supposo you could put your useless
timo into a bank, as you do monoy,
and draw it out on chocks as you
want it. Do you soot Wouldn't that
bo what tho Americans call "A big
"Bosh! Stuff! Humbug!" you say.
"It is impossible. If wo could do
that wo might bank time onough to
turn us into bo3s and girls again."
Truo, so wo might, but ns you say,
it can't bo done. Yot, isn't thoro a
moral in tho idoat Open your eyes
and road. Tho moral is plain ns tho
trunk on nn elephant. If you can't
get back your waste time, then don't
Now, isn't a man wasting timo
whon ho gets ill? "Oh," you say,
but ho can t holp it." That's worso
nonsense than tho Timo Bank. Yos,
ho can holp it, nino times out of ton.
Look for a second. Hero's a man
who goes on to talk liko this: "Thoro
was never," he says, "a strongor .nan
in England than I was up to Decem
ber, 1881. I am a gamoKoopor, and
about this timo wo had a deal of
troublo with a gang of poachers. I
had to keep watch all night long,
and was scarcely over in bod, and
often slept in my damp clothes. At last
wo nabbed tho poachers and landed
them in jail. Shortly after this I
was taken bad. At first I moroly
felt tired nnd dull. I had a bad
tasto in tho mouth with slimo cover
ing jny tongue and tooth. I could
eat little or nothing, and what I did
oat gave mo great pain. I felt as if
hold in a vice; my breathing was
labored and short, and I spat up a
great deal of phlogm. I had a dread
ful hacking cough, and could got no
sloop at night; for after ton minutes'
sleep I would wake up and cough
for two or three hours at a spoil.
Night after night I hoard tho clock
strike ovory hour.
"When tho bad attacks camo on I
felt as if I should suffocate, and had
to bo bolstorod up in bod. I was
coughing and spitting up matter
and phlegm all night long. Finally
I got so weak I couldn't walk across
the floor, and if I ventured out my
breathing was so bad that I had to
stop and rest every fow yards. Of
course I was obliged to give up my
work, and for eight months I did
nothing. I was under tho doctor all
this timo, and from tho first ho said
my case was a bad one. After a
while ho said to my wife, ' Your hus
band is in a consumption, and will
never get better.'
"I thought it was all over with
mo, and everyone who saw mo
thought I would dio. About this
timo I road in a Liverpool paper of
a medicine called Mother Soigol's
Curative Syrup, and fancied I should
liko to try it. So my son, who lives
in Liverpool, got mo two bottles,
and before I had used up tho second
one my cough was all gone, my
breathing was easy, and I could oat
anything. I soon got back to my
work, and have enjoyed good sound
health over since. When I began
taking tho Syrup I was so low I
don't believe I could havo hold out
much longer. I have lived all my
life in this district, and in my pro
sont house forty years.
(Signed) "Thomas Bateman,
"Near Whitchurch, Salop.
"March 23rd, 1891."
What aro wo to loam from Mr.
Batoman's experience? 'First, that ho
had no real consumption. His cough
and tho spitting up of matter were
symptoms of a thoroughly disorder
ed condition of tho digestive organs,
brought on by exposure, loss of rest,
and tho breaking up of all his regu
lar habits of life. This resulted from
his outlying for tho poacherr, and
his foolish sleeping in his damp
clothes. Acute indigestion and dys
pepsia followed, of course, with all
tho suffering which ho details so
well. But was the illness his fault?
Wo do not say it was his fault, for
maj'bo his occupation compolled
him to take such risks, but whoro
thoro is ono case of this kind thoro
are a hundred in which tho evil
might havo boon averted.
Wo conclude then that prevention
is bettor than euro, but when a euro
must bo sought, tho successful and
trustworthy remedy is Mother Soi
gol's Syrup. Mr. Bateman told John
Wilkinson this, and his account will
soon bo printed.
rrHE UNDERSIGNED HAS THIS PAY
A bought out tho Ohun Nam Jtakery nt
No. 2 Kckauliku htreet, uuil horohv gives
notice tlmt ho will not bu renpoiiHllilo for
ny UobtH owing by uid Chun Num.
Per ao Chit Hum.
Honolulu, 8ojt. 27, 18!).'. KHMJw
qpiIK UNDKHSiaNKI) HKHK11Y
X gives notice tlmt ho lmn bought tho
restaurant formerly owned by Lam Kau
mid known us tho "Hay View Hosort," und
ho hereby gives notleo that ho will no.t he
responsible for auv of the debts of Mild
Lam Kau. Lam Ivan will sign tho bill of
nale on Oetohor 10, 181)2.
Honolulu, Oct. 3, 1892. 538-lw
rpHE ANNUAL MEETING OK THE
X Stockholders of Iho Kohalu Sugar Co.
will bo held at tho olllco of Castlo ,fc
Cooko, on THURSDAY, Oct. 20, lb!)' at
10 'o'clock a. M.
J. H. ATHKHTON,
W. A. WALIi,
SuuvKvon (Lath with tub Govkiinmknt
J 0. Hox 103. Mutual Tolo. 140.
Golden Mo Bazaar
"W. F. REYNOLDS, Prop.
FULL LINK OK
prices which wo established
comincnulng OASH Unsiness.
Turkish Bath Soap, 4 Cakes 25 cts.
Farina Bouquot, 4 Cakes 25 cts.
Oatmeal Soap, 4 Cakes 25 cts.
Curly Maple, 4 Cakes 25 cts.
And Other Soaps at 3 for 25 Cents.
Sco our Kino Mug of
1)11 AWING PENCILS,
Blank Rooks of all Descriptions.
Base Balls, Tennis Balls, Tennis Rackets.
Call mill ee our floods before hav
ing elsewhere. Last lut not least
A I.AUUK VAUIKTV OK
Novels & Popular Bound Books,
T. T. SEVl.IUK.
. W. 110I.STFR.
Fort st., over F. Gertz's Shoe Store.
YIEW, LANDSCAPE & PORTRAIT VIEWS
OF THE ISLANDS,
Such as Nativos Making Pol Grass Houses
Hawaiian Stylo Hiding Hulalmln
Dancers Coeoanut Groves Palm
and Date Groves Street Views
and Huildings War Vessels
Shipping and Marine
Views, Etc., Etc. .
Also a Largo Collection of all Prominent
nnd Interesting Views of tho Hawaiian
Islands, either Mounted or Unmounted.
Books of Hawaiian "Views
Made up to Order at the most Reasonable
Hates in Honolulu.
Cabinets SB and S5 a Dozen.
100 P. O. Box 493 Itf
Baxter Engine & Boiler !
IN GOOD WORKING ORDER.
CV For particulars or terms apply to
Wm.G. Irwin & Co.
Win. G. Irwin, - President and Manager
Clans Spreckcls, .... Vice-President
W. M. Giliurd, - Secretary and Treasurer
Theo. 0. Porter Auditor
AOKXTS OF THE
Oceanic Steamship Company,
OF SAN FRANCISCO, PAL.
C. BREWER & CO.
J. O. Carter President and Manager
G. H. Robertson Trcusurer
E. F. Bishoi Secretary
Hon. U. K. liishop.
S. O.Allen .... . ) Directors
The Best Lunch in Town.
Tea a-nci OofTe
AT ALl, UOUIIS.
THE FINEST BRANDS OF
Cigars and Tobacco
ALWAYS ON HAND.
Has removed to Dr. Foolo's promit.es and
oflico, comer of Punchbow and Here-
tn n I u streets, during his absence.
nvtinv irniiuu- JFroml) to U:!!0 a, m.j
The best thing to send to your friends
abroad is King Bros. "Illustrated jS'oh
venir of Hawaii," which is gotten up for
thepurpose, and is not an advertisement.
St. IiO-uls, HVCo.
BREWERS OF FINE
Manufactured from Pure Malt
No Corn or Corn Preparations used
ern Hrcw erics, in order to cheapen the cost
wnrt.Urnnowned and Justly famed article.
With the Completion of the New Brewhouse,
the Brewing; Capacity is the Largest
of any Brewery in the World.
Brewing Capacitv: 6 kettles every 24 hours, 6,000 Barrels, or 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
nost wholesome and really the least expensive for its superior quality.
Annual Shippinp Capacity: 100,000,000 Bottles and 5,000,000 Kegs.
The AMiKUSint-Huscii Co. have carried oil' tho Highest Honors and tho Highest
Cla'.s Gold Medals wherever they have competed. At all of tho International Exhibi
tions throughout tho world their Beer Excelled All Others!
This Company havo prepared a Special Brand of thoir Highest Grade Beer for the
Hawaiian Islands, known as "SPECIAL BHEW," with a handsome label and in White
Bottles, which, with Uieir best "KXPOHT AXHEUSEH" in Dark Bottles, heretofore
imported, wo will now supply to tho Trade in Quantities to Suit.
104 Fort Street, Honolulu,
THEO. H. DA
China, Glass and Furniture
Salesroom on Kaalmmaim St., Ground Floor,
LARGE ASSORTMENT OP NEW GOODS !
Royal Worcester, Crown Derby, Wedgewood and Other
fiiste "wa.:r,:e i
3STe-w Rugs and Oarpets,
Fine Show of Glassware, Iyoryware, Bohemian Vases, Wine Glasses,
Tumblers, Cut Salads, Etc,
and Highest Grade Hops!
in placo of Malt, as Is done by other East
of their Deer, and to compete with our
G-. .W. MAOFARLANE & CO.,
Agents for tho Hawaiian Islands.
VIES & CO.
rpiIE HOYAIi HAWAIIAN HOTEL CO.
X lias leased the proportv lMjloneli'B to
A. Herbert, Esq.. in Walklkl. which for
tho present, will bo open to tho public ns
nn annex of the Hotel, and will bo known
ns thb "Hotel Park Annex." Besides tho
main house thoro nro Thrco Cottnges ad
mirably ndaptcd for families:
1-Tho "Windmill Cottn
go" containing 5
Rooms, Kitchon and Lnnai
2 Tho "Green Cotny
" nnntntlitnt. Pilf.
lor, 4 Bed Booms, Kitchen, Pantry, Bath
.1 Tho "Scnwnrd Cottngo" with 4 Good
Booms nnd n Dressing Hoom.
All tho Cottngos nro -well-appointed in
Furniture. Fittings, etc., nnd tonnnt', will
ho entitled to bathing privllegos. Tho Rca
bathing being unsurpassed on tho Iidand.
Tho Main Building will bo reserved for
tho uso of tho guests of tho Hotel, but it
may bo rented Tor Picnics, Bathing Par
ties, Dinners nnd Dances, etc., fornll which
puriioi.es it oll'ers oxeoptionnl ndvnntnges.
A chnrgo of Twenty-flvo ($25) Dollars will
bo mado for tho no of tho House and
Grounds Including Bnthiug, Lights, etc.;
prepayment is required for intended use of
tho Main Building nnd Grounds.
fF For further pnrticulnrs application
should bo made to the lanagcr of tho
Hoyal Hawuiian Hotel. 527-tf
m. G. IRWIN & CO.
OFFEB FOB SALE
ALEX. CROSS & SONS
Celebrated High Grade Cane Manures.
We "are also prepared to tnko orders for
Messrs. 1ST. Olxlancit JsOo.'s
Insuring prompt delivery.
SP-liiis is n superior Point Oil, con
suming less pigment than Linseed Oil, and
giving u lasting brilliancy to colors.
Used with driers it gives a splondid lloor
Fairbank Canning Co.'s Corned Beef
rAltAFFINE PA1MT CO.'B
Compounds, Roofing & Papers,
Reed's Patent Steam Pipe Covering.
Jarboes' Diamond, Enamel & Ever
Especially designed for Yacnum Pans.
Hartford Fire Insurance Co.,
London & Lancashire Fire Ins. Co.,
Thames and Mersey Marine Ins. Co.,
New York Life Ins. Co.,
C, 0. BER6ER
General Agent for Hawaiian Islands,
. ' 4 , .
jft.-' i 4 "V