The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1893-10-09


August 30 .......................... 81 1876
The above figures also show that
the increase has been gradual and
steady. Moreover, it marks the first
reaction from q steady withdrawal OF
deposits since the summer of 1890
the date On which the royalist clique
during Kalakaua's reign resumed
control of the government after three
years exclusion therefrom.
As to your statement about the eI-
penditure of 100000 and the issuing
of S1,100,000 in bonds to pay de
positors, I must conclude either that
the printer has misrepresented you,
Or that you have drawn these figures
at haphazard out of hat, as neither
the alleged incidents nor amounts
have any approximation to the facts.
FACTS ABOUT THE POSTAL BANKS.
The facts concerning the postal
bank are, in brief, as follows:
l. The bank was created in the
palmy days when King Kalakaua
dominated the government and you
dominated the king. All deposits
were paid directly into current rev
enues, and used to pay salaries and
other current expenses. Depositors
had no security other than the gen
eral credit of the government.
2. The reform party" composed
of the men now constituting the
Provisional government, having come
into power, passed a law in 1888 re
stricting the use of bank deposits to
the construction of specified public
works, and securing depositors by
the issuance to the postmaster gen
eral of bonds for the full amount of
deposits paid into the treasury, to be
held in trust for the benefit Of de
positors.
3. The reform party continued in
power during the biennial period,
March 81, 1888, to March 81, 1890
During that period 1 had the honor
to preside over the interior depart
ment, in which the bank was located,
and had charge of the investment of
it's deposits. During the two years
the confidence in the bank was such
that, although the interest paid was
reduced from 6 to AZ per cent, the
excess of deposits over Withdrawals
amounted to $742,498. The total
amount of deposits, March 81, 1890,
was 1856, 500. Daring the period
there was expended upon the public
works specified by law from the de-
posts the sum of $477,092. The I'M
invested surplus of deposits and cur
rent revenue in the treasury, March
81, 1890, was S491, 152, in addition to
a large amount of special deposits for
roads, schools, etc.
4. The royalist faction came again
into power at the beginning of the
period 1902 Their advent was
sigualized by an immediate shrink
age of deposits, Withdrawals continu
ously exceeding deposits until low
water mark was reached June % last,
when the deposits amounted to only
S49S, 1868, since which time, the Pro
visional government being in power,
they are again increasing.
In order to repay depOsitors the
rOyalist government exhausted the
surplus in the treasury and then Dor
rowed wherever it could get the
Among other loans it OBJ
tanned S95, 900 from you, paying y
and 8 per cent. interest therefor.
This was the amount which You sud
denly demanded immediate payment
Of from the Provisional government
Oh the 9th of May last, and which
amount was forthwith subscribed by
Inc merchants of Honolulu when
hey heard of your endeavor to en-
oarrass the Provisional government.
This was the loan of which L spoke
20 the Post reporter. He confused
he government" with the "queen,"
and made me say that the queen Dor
owed it. This confusion is not sur
0rising, as the queen has had diff
,ulty in discovering the difference
herself and the government,
Ind you and other royalist support
RS still insist that the government
cannot exist without the queen.
MR.. sPRECKELs' THIRD QUESTION.
Mr.. Thurston says that the most
ignificant sign of the governments
liability was shown in the recent
ssue of bonds. Will he please eX-
,lain to me who bought those bonds.
/ reply that they were sold over
he treasury counter at par to all
.omers, and have been purchased ex
by residents of Hawaii, who
inow their commercial value.
MR.. sPREcKELs' FOURTH QUESTION.
He (Thurston) says there is no lack
# confidence among the people. l
lesire to have iar1 answer me why !
he Pro yisiona4 government has |
moved into the palace, put the SOL |
liers into the basement and in the |
he yard, placed sand-bags around for |
and stationed guns in |
ront of the palace. Does he call this |
liability of government and conf |
lence of the people?
In reply would say that the gov
'rnment has moved into the palace
because it is public property, and is
md always has been the head
quarters of the executive department !
# the government.
1t has put the soldiers in the |
because that is an appro- |
,riate residence for them, it having
,een fitted and used for that pur-
pose for number of years past.
Moreover, they are stationed there,
nd other military precautions have |
,een taken. which, however. are ex-