The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-09-19
T0WSE ON HAWAII
His Views on Business
and Banking.
FinanCierirg Plantation Enterprise S
and What He Has Seen in
Bishop 81 CO s Bank.


The business methods are a combina-
ton OF American, English, German
and Oriental with distinctive local
tinge OF cOioring. The country has a
million dollars Of rs own issue of sill
yer coined in 1883. Colonel Claus
Spreckels furnished this and had the
seigniOrage and a percentage for profit.
But finances are on the gold basis, with
the United States yellow utterances as
standard.
At the bank you have two accounts
and gold is always one per cent pre-
MUM; and foreign exchange, with the
balance of trade not less than SIS 900
600 in favor of the islands, is one and
one and half per cent. The banks
are: Bishop & Company, pioneer and
private; Claus SpreckeIs, VIM G..
Irwin owner, private; Bank of Hawaii,
limited, a corporation one year old;
First American Bank, just established
and to be the first national; Yokohama
Specie Bank, branch of the big con-
Germ; Bishop & Company Savings,
branch of town 1rm; second Jap
anese bank, rival OF Yokohama Specie;
Postal Savings Bank, government
Then there are several building and
loan associations, while number OF
the wholesale houses, shipping and
plantation agencies have what are
practically banking departments
There are two big loan, trust and in
vestment companies and "a third is
forming.
The Chinese, VINO are a considerable
commercial factor, bank with the for
eign' esta blishments These latter
have men of all nationalities behind
the counters and each one has in sight
more good coin than l have seen alto
gether in tour OF the Omaha banks.
A Chinese, japanese or half-caste may
attend You in your bank, and all these
men are we'll equipped for their posts.
Ho Fon, Chinese boy with Bishop &
Company, has just been gazetted by
Mr.. S. NJ. Damon, head of the house,
to sign for the firm.
Financiering in Hawaii is on a large
scale. Operations are Of vast proper
tions. \ plantation is too big an enter
prise for one man Or a small group
of men to swing. Hence it is incor-
porated. The system is a success
such a marked and completely satisfac-
tory success that every business Of any
account down there is incorporated,
and up to date all companies have
been honestly administered in the in
terest of the stockholders-not a sin
gle failure on record.
Great sums OF money move. Every
incoming steamer brings gold and sill
yer from the mainland. When the
plantations are grinding their cane the
banks and the big wholesale houses
and agencies furnish the hundreds of
thousands of dollars required till the
sugar is shipped and the returns credit
ed in New York or San Francisco or
sent down. l have seen Bishop e Com
pany, open in the morning with 81,
100000 in cash in sight. All the other
banks are also very strong. The new
est has capital of $1,OOO,OOO and will
increase it.
In Honolulu a man in any business
that is business is never presented
with an account. The first or second
day Of the quarter a boy with a pack
age of bills glides quietly into your
place, runs over his bundle and throws
yours into a box on the counter that
of the first or the beginning OF the
second week in the quarter the auditors
go over the bills, cash is secured from
the bank and your clerk or boy" sal
lies forth with, over his shoulder, a
bag containing the accounts and the
money. In this way everyone is set
tied with everyone else in a day or
two. These boys are not guarded any
more than are the carts of money
wheeled to and from the wharves, up
TO the government treasury or between
the banks.
The men who have money in the ISL
ands have faith in the country and its
remarkably rich industries, marvellous
resources and matchless possibilities
The amount of outside" capital in the
enterprises of the country is absurdly,
almost incredibly small Absentee
landlordism' is not yet a feature
Cane, rice, banana, pineapple and COT
fee plantations, the scores of sailing
vessels and steamers, the fertilizer
works, the electric railway, the steam
railways, the telephone. the electric
light and cold storage plants, the ice
making plant, the rice mills, the
various factories, the marine railway.
the great iron works and foundries are
all owned by men of the islands. Out
side capital is just beginning TO come
in. 1t IS following the flag" COM
mercial and political stability and per-
manencv having been guaranteed when