The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1889-05-22
THE DAILY
THE DISADVANTAGES OF PROSPERITY

reputation for wealth and financial
sOundness Is sometimes an incOn-
venience, and not unfrequently a
source OF actual danger Many
man has been ruined by having too
good a credit, even when he was
honest in his intentions and perfect
ly solvent. Everybody is not only
ready, but anxious, to trust such a
man. Tradesmen force all the goods
upon him that they can. No one is
anxious to have him pay what he
owes. If he has spare funds on
hand, and wishes to pay his out
standing obligations before maturity,
he Is unable to do so except on terms
disadvantageous to himself Final
ly, parties having spare cash on
hand, but who are not familiar with
business methods, or ways of max
ing investments, will almost force
their money upon some local fnan-
cial magnate, feeling that he under
stands such matters a great deal bet
ter than they do, and that he will
use their funds to much better ad-
vantage than they could possibly do
for themselves.
Even governments sometimes ex-
perience some of the Inconvenience
of too high a financial reputation.
The United States has a large and
constantly increasing surplus. The
law allows the Treasury to use the
surplus in buying up unmatured !
government bonds in the open mar
ket. But these bonds are at an
enormous premium, no less than one
hundred and twenty nine being ask
ed, less than a month ago, for four
per cents. due in 1907.
The Hawaiian Government is hav-
ing, just now, a somewhat similar
experience. The people are thrust
ing their money upon the Treasury |
through the medium of the Postal
Savings Bank, at a rate which not
only exceeds all anticipations, but
which far outruns. any use that can
be made OF it under the existing an
preparations. Since the first of
April, the Post Office, after paying
all drafts on savings account, and
retaining on hand what is consider
ed to be a safe margin for contingent
cies, has turned over to. tEe .G'ro feed o.
the sum of s'e me 9''ta1e Ireasu
doIIor - seventy four thousal
figurias from the net increase in d
posits. Within the last week or S
the rate of increase has been great
than ever. 1t seems quite like
that the increase in the amount dv
depOsitors during the current qua
ter will be one hundred and fit
and perhaps two hundred thousaI
dollars.
1t has been suggested that.
money in the Postal Savings Bank
free from taxes, some people a
making that disposition of the
spare cash just now in order
dodge the annual assessment whiC
will be made in a few weeks. The
may be something in this idea: v
are rather disposed to think the
Is. But we do not believe that IL
Government will lose much in I'll
way of taxes. The kind of poop
who put moderately small sums
money In the Savings Bank to kee
1T out of the way OF the tax assesso
would be pretty sure to find son
other place of concealment, if TIN
resource were not open to them.
will be interesting TO notice, if thel
is any decrease in the amount G
deposit, after the assessments hay
been made, or whether there is an
marked falling off in the rate of r.
ceipts during July and August. "
do not anticipate such a result.
Should it appear at any time til;
the Saw IS Bank was being used
any considerable extent for pu
poses not contemplated or intende
at the time OF It's foundation. an
not in Leeping with its main object
the Government have, under the la,
all the power that will be needed
cure the evil. They can, at the
discretion, reduce the rate of inte
est, limit the amount to be receive,
or even decline to receive deposit
altogether.
Meanwhile, cash continues T
accumulate In the treasury far b,
yond what there is any present us
for, and the parties who hold OF
bonds decline to accept their none,
Six per cent interest in goli
paid regularly, with the credit {
the Hawaiian Government benin