The Hawaiian gazette., 1884-06-04

Mn. SPREcKELs' proposed bank charter
allows the issue of two millions dollars of
bank notes, which "sEdR be received at par
in all parts of the Kingdom, in payment
of taxes, excuses, licenses, public lands
and all other dues to the Government ex-
cept for duties on imports; and also for all
debts and. demands owing to or by the
Hawaiian Government, to individuals, cor
porations and associations within the King
dom, except for interest and principal of
the public debt" The result of this would
be, that within short time, the entire cir
culating medium of the country would be
Spreckels' bank notes.
By the words of the Act, the only Habil-
ity of the bank and its officers is that
which the Act itself imposes, no legislature
can increase its obligations. Every char
ter granted within the last year has been
made expressly subject to future legisla-
ton. There is not charter in the coun-
try which is unlimited in time, as this bank
charter. No taxes or licenses can be i'm
posed, except one per cent on its notes,
and its real estate tax. All its personal
property, except notes, its very bank build
ing Tor leasehold and therefore personal
property by our tax law,) is made exempt
from taxation. When the present twenty
year gold bonds are paid, no one can say
what will replace them as the security for
these notes. The Minister of Finance NAV
however exchange the present bonds for
others, if he thinks it will not prejudice
the Government or the note holders to
do so.
We see no reason which would be likely
TO deter the Government from issuing to
MIR. Spreckels another million OF Hawaiian
Government gold bonds, and taking for
than nothing bit HE bank notes. After the
Supreme Court declared that the law of
1882 authorized the acceptance of United
States gold only for such bonds, the Min
lister of Finance nevertheless issued a large
amount Of them for the Spreckels silver.
The proposed charter makes the bank
notes receivable for all government dues
except duties. 1t is possible that even by
the judges this would be regarded as ati-
thorizing the issue of new gold bonds for
bank notes. A pleasant prospect.to con
template.
These notes would be the money in which
all government expenditures would bemade
except TO the holders of these very gold
bonds, who receive only the United States
gold in which the bonds are payable. All
the officers and employees Of the govern
ment, the judges, surveyors, teachers and
mechanics employed for government work
would be entitled to their pay in Spreckels'
bank notes alone.
The capital stock of the bank is its
shares, each holder of shares being per
sonally liable for his proportion Of the
bank debts, and no more But the share
holders are not required to reside in this
country, and neither they nor their shares
can be counted upon as available for the
debts OF the bank in case of its failure to
pay its notes.
The charter places but little liability on
the bank directors. but as none of them
are required to reside in this country. there
would be no use or advantage in making
them liable. The United States bank law
requires that every director, during his
term OF Office, and for one year previous.
shall be q resident of the State. Territory
or district where the bank is located.
For some of the formidable powers pro
posed to be granted to the Sprockels bank
please look particularly at para graphs {. D.
{, (, I, n, and p, of Section 6. This wonld
authorize the proposed banking company
TO carry on Mr.. Spreekels' steamers, re-
tinery or plantation business. or lIr. vii
der's and Mr.. Fosters infer-island steam
ers and railway business, in short to do in
the name and pretence Of banking any