The Hawaiian gazette., 1888-08-07

Irrs remarkable that 81 Institution 80
important $ tie Hawaiian Poscsl Saw
ms Bank should have existed OF sUch
s1 uncertain legal oasis - Il h=S Snt
sill does The Postmaster accounts 81
regular Intervals 70 the Minister q Fl
nzncs f1r the proceeds q the BSnk, znd
tie income from Il : paid into the Iress-
nv. Nothing czn Dc paid from the
Treasury without 81 appropriation by
the Legislature, 80 thzr drafts On the
Treasury 70 meet shy lzrge smoUnt q
withdrawals would be technically Illegal
The Government IN receiving these de-
posts pledges itSei 70 repayment O. de-
usn6. = hich. = shown, would De Illegal,
n case : draft On the Treasury were De-
CESAR 81 thzt the present state q
s=ss-s : snCuzL0cS. lot u say s6sCrt-
There srs two bills nov before the
House which z-e intended TO accom-
uEsh tie double object q defining and
improving the legal posi.isn q the Bank,
and providing : remedy II case there
should be ! run upon L. The deposits
zre made rsp4yz6Ls not Upon dsnznd,
5ut sitter thirty days notice In order
70 give greater security 70 dsPosleorsr the
Minister q Finance L authorized 70
iss1s coupon bonds, payable with inter
e. :. * per cent N not less than I've
nor more thzn twenty years. these
binds. II caSe q ! run upon the bank,
the Postmaster nay either borrow money
uuo1. q hs nay sell lAern outright -
The market erics, and apply the proceeds
to the payment Of deposits his plan
nizh- perhaps work vel II case there
should happen 70 Dc heavy Withdrawals
C=I-- 70 other than L want q confidence
IN the Government, though Il L doubt
I'll even then. n every otasr case the
pIz1 certainly seems open 70 the 90
lection that the very same cause which
produced the run upon the Bank would
make It d6cuIt Or impossible 70 negp
tate the bouts- It you'd seem, there
fers. L this objection ( vel founded,
that the plan would tre4k down II the
iace q the very contingency t vas IL
sended To provide t1r-
Whv would Il not b : GOOD plan, II
stead ei making the right of the de-
positor TO repayment absolute upon
thirty days notice 70 make Il conditional
UPON the ability Of the Government 70
pzy. Then n case q heavy ru, the
Poseuastsr-Gener4I wieh the consent Of
the CABINET might have the right 70
ss1s 70 the deposisor 8 SIX per cent.
bond for the amount Of his deposit,
70 be accepted by Kim a. cancellation
Il the account. We offer this sugges-
tou for what i L worth Il certainly
would meet the diEcuIty completely
. which the present biu VII Ueet either
iupe-fectIy q not 81 al The only
question L, void such 4 provision IL
teriere with tie freedom OF deposits
We think L ought lot to, because L only
provides Tor i contingency which a.
present Is not provided Tor, and really
would pgt tie depositors n better
position than they bold noE- Most de-
positors know vel enough that the Gov
eminent takes their uousy to Use, and
that It follows IS 4 matter Of course that
Z there were = heavy run they couId not
expect 70 get their money Il once The
proposition We uzke would improve
their position Il any such ease, de,id-
edIy. It should not therefore decrease
their confidence II the Government and
readiness to make deposits
he whole question s an important
one because the Postal Savings Bank i
one Of the best institutions We have
here and every measure Ehich & likely
10 Improve Is position and Increase is
prosperity VII be benefit to the coun-
ny Every depositor II the Bank ( zn
investor II the Government, and sn
addidouzI guzrzntor Of It's stability and
psruzueuce. Every depositor has =
financial interest N seeing p0elic Affairs
honestly and economically administered
he shy virtue Ct his position q friend
Il every expenditure which : ether