The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1885-05-22

deposits, however, they were paid by
the Bank-which presumably had
loaned their deposits as of full legal
tender value and received interest
therefor upon that basis-in coin
which the same Bank holds to be
deprecated currency; and should
they want drafts on San Francisco
they might be charged 20 per cent dis
count on the silver, which the Bank
turned over to them as legal tender
in full discharge of their de-
pOsits. If this has not happened
time and again we are prepared
to publish Bishop & Co.'s ex-
PLANTATION and denial, but if II has
happened time and again, we want
their chartered newspapers to square
the practice with the ethics of bust
ness.
Furthermore, we would like an ex-
PLANTATION of this probable incident in
the banking practice of Honolulu,
which is also correlated with the
above. Suppose a merchant goes to
Bank, say Bishop & Co., by way Of
illustration, and buys a bill of ex-
change on San Francisco for which
he tenders silver; and suppose he is
charged five per cent discount on sill
yer and one per cent for the draft !;
and suppose one of the ante-gold law
depositors about the same time
asks to withdraw his deposit, what
follows ? Why. this, that the depre-
ciated silver, which the merchant
tenders for his draft, is paid
out at par to the deposition who
has never had any Interest for the
use of his money, and of course the
Bank is an ambidextral gamer. It is
all in the way of business, perhaps.
but we should like the professors Of
financial casuistry, who are keepers of
the old Banks conscience, to recon-
cile the practice with the ethics OF
the gospel and of real life.
But a further and an interesting
thought is suggested in this connec-
| ton, and we desire business men to
follow it closely. Let us carry out
the foregoing illustration into ordin-
airy banking practice, and take a
single dollar as the unit Of business
transactions. 1t follows that if five
cents can be deducted from silver
dollar every time it goes into bank,
and that the same Identical dollar
can be paid out as 100 cents, the
operation need only be repeated
twenty times to give the dollar to
the bank and yet keep it in circula-
ton. Indeed this process Of coin
sweating and chilling may be con-
tinued indefinitely. If the coin were
clipped every time it was handled,
there would be an element Of fairness
in it; but that would spoil the ''hog-
ging game" wherefore the Kalakaua
coin remains undefaced, and still
keeps up the same profitable round OF
circulation, at one time deprecated
and anon of the full par value of a
gold dollar. Now, this may be bank
ing Of a kind; but it is of the pawn
broking kind.
But while men and women of ev-
cry rank and condition in life were
grateful for the establishment OF
Claus Spreckels & Co.'s Bank OF
Savings and Deposits, the old bank
very naturally was not, although il
must have known that it had COM
PEELED the establishment of rival
institution by it's own narrow and
selfish policy. And by a remarka'
BILE coincid ence, neither were the so
called Opposition press satisfied. The
new bank was attacked by inuendo
and misstatement. It's solvency was
indirectly questioned and its bona
fides more than doubted. Why was
| this done? Was it done in the in
terests of the public to protect them
against fraud, or was it done in the
interest of the old monopoly which
owned their patrons and hackers
body, bones and breeches?" II
was certainly not done to serve the
public, because these hireling organs
we'll know that the new Bank OF
Deposits and Savings is not "PeteI
Funkn bank. Yet the deposit oil
500, 900 in Haw allan Bonds by the
new Bank, as a guarantee to deposit
ors, is treated by writer in the
Press az a trick intended to deceive
depositors. Well, now that Bishop
| & Co. have been forced to deal fairly
/ by their clients and to offer Interest
on term deposit, let them play the
same trick upon the public and make
4 a similar deposit of bonds with the
/ Minister of Finance. II this Is not
done, the public will not be slow to
draw their own conclusions. They
/ are not now compelled 10 speak with
/ bated breath in the presence Of the
servitors Of the old monopoly, and
I may express their feelings, as very
! many Of them are doing. pretty free
/ ly, and with considerable force.
Touching the announcement oil
Bishop g. Co, that they are prepared
1 10 pay 5 per cent interest on deposits
I I'D 20 $500, we hsys only 20 express
/ Measure st the fact But 1T is made