The Hawaiian gazette., 1893-10-10

does not exactly express Wnat Sdlu
about the bank. What l said was
that during the past three months
the deposits in the bank had exceeded
the Withdrawals by $4,000. The
exact amount Is S34,196.
The exact figures are as follows
June IS, amount of Deposits. S49S, S6S
July !, amount of deposits. 499, ST.
July -, amount of deposits. 525,24S
August 16, amount of deposits $50, 245
August 80, amount of deposits 532, SIS
Net increase of deposits over
Withdrawals from June 2S to
August 30 .....--........... ..----.. Oh lSt
The above figures also show that
the increase has been gradual and
steady. Moreover, it marks the first
reaction from a steady withdrawal OF
deposits since the summer of 1890,
the date on which the royslist clique
during Kalakaua's reign resumed
control Of the government after three
years exclusion therefrom.
As to your statement about the ex-
penditure of 100000 and the issuing
of S1,100,000 in bonds to pay de
positors, 1 must conclude either that
the printer has misrepresented you,
Or that you have drawn these figures
at hsphazard out of a 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
we're paid directly into current rev
enues, and used to pay salaries and
other current expenses. Depositors
had no security other than the ger
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. Tie reform party continued in
power during the biennial period,
March 81, 1888, to March 81, 1890
During that period l had the honor
to preside over the interior depart
ment, in which the bank was located,
and had charge of the investment of
its deposits. During the two years
the confidence in the bank was such
that, although the interest paid was
reduced from 6 to A per cent, the
excess of deposits over Withdrawals
amounted to S74249S. The total
amount of deposits, March 81, 1890,
was S956,999. During the period
there was expended upon the public
works specified by law from the de-
posts the sum of S477,082. The IN
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
by an immediate shrink
age of deposits, Withdrawals continu-
ously exceeding deposits until low
water mark was reached June Is Last,
when the deposits amounted to only
S49S, 1858, since which time, the Pro
7isional government being in power,
hey are again increasing.
In order to repay depositors the
'oyalist government exhausted the
surplus in the treasury and then Dor
owed wherever it could get the
Among other loans it OBJ
aimed $4,000 from you, paying q |
md s per cent. interest therefor.
This was the amount which you sud
lenly demanded immediate payment |
If from the Provisional government |
IN the 29th of May last, and which
mount was forthwith subscribed by |
he merchants of Honolulu when
hey heard of your endeavor to en-
,arrass the Provisional government. |
This was the loan of which l spoke |
o the Post reporter. He confused |
he government" with the queen"
md made me say that the queen bor
owed it. This confusion is not sur
,rising, as the queen has had diff
ulty in discovering the difference
between herself and the government,
md you and other royalist support
rs still insist that the government
anDot 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.
I reply that they were sold over
he treasury counter at par to all
omers, and have been purchased ex-
by residents of Hawaii, VINO
now their commercial value.
Mr.. sPREcKELs' FOURTH QUESTION.
He CThurston) says there is no lack
: 1aa / /