The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1884-07-30

10 a wholesome and determined opposition,
;he Objectionable bank monopoly vas
headed off; and that the present Ministry
have been so thoroughly shown up that
tbeiy lack of power to manage the affairs,
especially the finances Of the country, for
any considerable time, is now conceded
even by the King.
II their successors shall be acceptable
TO the law-abiding and conservative part
of the community. the fact that Mr.
Spreckels also opposes, their appointment
ought not not TO be clog upon them, or
make them unpopular at the outset That
gentleman. we hear, processes to have the
same desire with this community for hon
est and efficient government. Certainly
his investments and business enterprises,
and the government bonds he holds are
strong reasons for his entertaining such
view at all times But he must see that
he Is not the only one TO be consulted or
considered
soon after the present Cabinet came IN
experience satisfied them all, except
apparently Mr.. Spreckels himself, that
ii was a mistake, owing to the business
ipcapacitv. as well as to the proved politi
cal weakness and double-dealing Of the
Minister of Foreign Affairs himself.
The country is so worn out with his do
ings. is so weary Of him that almost any
change will be hailed as a change for the
better But TO put in his place any man
who has been connected with his misman-
agement would be a mistake for which no
plea of ignorance can be made.
TIE Bank Bill when it has passed the
Assembly, is a general Act, under which
any persons may incorporate and carry on
the business of banking. The provisions
Of the bill are therefore general in their
character covering only the protection
necessary TO the public, while giving TO
the corporations sufficient powers to carry
on their business.
The bill does not give authority TO Issue
paper money. or to become the depository
Of the public funds. 1t provides only for
banks Of deposit and discount.
The important sections of the bill, so
far as the public are concerned, are Section
I3 and Section 26. Section l3 provides
for the liability Of stockholders. While
by the Civil Code, the liabilities OF holders
Of shares in incorporate companies are
limited TO the stock held, so that the stock
holder cannot be held for any amount
over and beyond what he has subscribed
for, this bill, holds the .stockholder, not
only for his stock, but for a further amount
in the proportion which his stock bears to
the total stock, for the payments. Hence
If in case of disaster the assets of the bank
are not sufficient 10 meeethe liabilities the
stockholder must be assessed his proper
ton towards meeting such debts. A liza
bility of this sort is guaranty to the de
positors and the public, that the affairs OF
the bank will be carefully managed, and
its interests and business will be watched
closely by It's stockholders
Section 26 gives in detail the kinds OF
business which may he engaged IN. comm.
ing it to such operations as are usual and
lawful in banking establishments. In
case of real estate taken as security for
loans, shall fall in. it shall be disposed Of
again. shall not be held at least, longer
than five years; while in case OF personal
estate, it is to be disposed Of as the in
terests Of the corporation may require
The bill evidently limits the business to
what is commonly known as banking. Al
though giving latitude in the direction OF
securities, not greater than Is necessary
for the protection of the stockholders. A
bank under this bill, can hardly go Wild
with outside business and speculations,
with these two Sections in its charter.
Section IA provides that the officers of
the bank shall in January and July. make
a full statement Of its affairs, OF its assets
and liabilities, and shall publish the same
in the Honolulu newspapers, while Section
Is gives to the officers OF the government
visitorial powers, with full power of exam
ination into all the affairs Of the corpora
ton
This bank bill is, we think, one which
will meet with pretty general approval, as
being one in which the welfare OF the pub
lie Is sufficiently guaranteed. Although
like all laws on complicated subjects, e1
perience under it, may show points which
may need further Legislation to adapt it
thoroughly 10 the condition and business
Of the community.