The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1884-06-07

ment has let it be made known that
it purposes to bring in such bill, the
House and of the public will, we
think, be that the sooner they have
the bill before them the better.
In saying that no bank should be
allowed to issue notes the Chamber
goes to extremes. There is no more
common or more useful feature of
modern banking all over the world
than the issue of notes payable on de-
mand What is wanted is provision for
as complete security to the noteholder
as is obtainable in human affairs.
Why should we shut ourselves out in
Il moment of panic from what has been
found great convenience in every
other community? A similar question
asked as to the proposition of the
Chamber, "the Bank not to have
charge of Government funds.'
Throughout the British DOminions
government, all public funds are uni
versally deposited with banks, and
with note-issuing banks, too. 1t is in
fact illegal in most British Colonies
for public funds of any sort to be re-
tanned more than twenty-four hours
in the hands of Government or other
officials. What works so well else
where and is so highly thought of as
a safeguard for the public treasure
may surely be found of some use or
convenience here. More especially
will this be the case if the new bank
or Bishop & Co. or any other incorpO-
rated bank should establish branches
at the principal centers of population
in the other islands.
We think the objection made arises
from want of acquaintance with the
subject.
The Chamber desires that "the cap
ital and the term of the charter be
defined" If this means that capi-
tai once fixed should never be extend
ed, it is opposed to the best practice
elsewhere, and we can see no reason
for it. AS to the term of the charter,
the practice here of taking out chart
ers for business enterprises for short
term of years appears to us to be alb
surd. If a company wants to drop its
undertakings, it can always do so of
it's own accord, and wind up. It is
proposed that the auditors of the COM
panY shall not be shareh olders. No
company ought to be subjected to
10 r.
is, we believe, the invariable rule that
auditors of banks affairs must
qualify for the position by being
stockholders, and there is sense in the
provision. If an outside inspection is
wanted, let us have a public officer
to do it.
To conclude our criticism, we OBJ
ject to the suggestion that a charter
mey be applied for without the whole
of the proposed capital being sub
scribed for.
The minimum of one-fourth
actually paid in before commencing
business has been strongly objected
to ''on the street" in connection with
the bill already before the public, and
we are rather surprised that the
Chamber of Commerce approves it.
There is much to be said on both
sides of the question. On the other
hand, we have known perfectly sound
banks which started business with
twenty per cent paid UP and took
some years to call up the balance,
simply because they did not find prof
table and safe use for the rest of the
Nevertheless our own lean
ing is towards a larger proportion to
start with, if bank is tc be allowed
to issue notes on security of Govern
ment bonds.
While thus objecting to some de-
tails of the Chambers resolutions, de-
tails which appear to us to bear the
impress Of hasty decisions and gen.
eral want of practical acquaintance
with the subject in hand, we heartily
the main representations
contained in the document, and hope
It will have due weight accorded to it
1y the House and the Government.