The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-11-21
How TO Gel it Into The Channels
Of Business.
REDUCE POSTAL BANK INTEREST
Money MIghs be Deposited IN the
Banks on Approved Security
Views of Public Men.


has given rise to- many cOnjectures and
theories as to what are the best means
OF using IL for the welfare of the COM
munity. inasmuch as 1t does not APP
pear that legislative action can he
counted on to make appropriations for
public necessities or even for the pay
ment of usual governmental expenses.
Business men. when asked what
ought to be done with the funds. We're
ct first prone to believe that there was
no legal way to- use them and that Con-
gressiOnal action must be awaited be-
fore the local Government could make
a move to- circulate the money. They
deplored the fact of so much money be-
ing tied mp. thus laying the basis of
future stringent money market. An
opinion prevailed that there might
possibly be means by which some of
the money could be deposited in the
banks IL proper securities could be Of
ferred in exchange. Such a custom is
resorted to- by the National Govern
York municipal bonds as safe security.
Another feeling is noted among the
business houses that il is time TO dis
continue the Postal Savings Bank.
Financiers state that a government
controlling such large surplus fund
as at present is lying idle in the Treas
ury. does not need to- pay interest on
money borrowed of depOsitOrs. The
Minister OF Finance is already working
upon several plans and suggestions.
and il any method can be followed le-
gaIly. much of the surplus fund Will be
started on it's travels. Among the gem
eral suggestions which have beea adj
vanced is one quite strongly endorsed
that the Minister of Finance reduce the
rate of interest paid by the Postal Saw
ings Bank from az per cent TO ) or 3la
rer cont \ great deal of money is be-
ing locked up in the Postal Savings
Bank that goes to swell the surplus
amount held in the Treasury. II this
money were taken out and deposited
into general circulation. \ consensus
OF opinion seems to indicate that the
Minister og Finance ought TO make this
move by january LIST, giving at least
thirty days notice. which is the time
usually given for Withdrawals. When
the Postal Savings Bank was inaugu-
rated the Government was a borrower
ct per cent issuing bonds; now 1t has
a surplus fund on hand and has NJ need
Tor these deposits ut all. and instead OF
borrowing it is paying off its or . per
cent bonds. The need of Postal Saw
ings Bank is so much less than 1T was.
the Government could we'll afford To-
discourage further deposits by lowering
the rate of interest.
The following interviews speak for
themselves:
HON. W. o. SMITH.
Well. in regard to- handling the sur
plus funds of the Government, / should
think that the following suggestion,
which heard advanced a few days ago.
is a feasible one; that is to furnish to
the banks money up to 90 per cent of
the Government bonds which they
should deposit as security, say, $780,
600 in bonds to allow a withdrawal of
$4,000 in cash, to be used for a time
limited by agreement with the bank.
am inclined to think that could be
done without further legislative ac
ton. l think that steps should he ia
ken with the approval OF Ine Washing
ten Government, SO there could be leg
islation upon the subject of appropria-
tions. III upon no other subject. The
provision in the Joint Resolution that
THE civil. judicial and military pow
ers heretofore exercised by the Repub-
Inc of Hawaii should be exercised by
such persons and in such manner as
the President shall direct" would
seem To imply that he would have the
power to direct that legislation might
he had upon the subject OF appropria-
tiOns to the exclusion of other sub
jCcts. IL il was unwise for the Hawaii
an Legislature to enter upon general
legislation pending the action of Con-
GresS in framing the Government of
Hawaii.
IL Is also possible. in a limited way.
the powers of the Council of State
might be invoked: the provision IN re-
gard To its powers is as follows:
THE Council of State may. upon the
request of the Executive Council. ap-
propriats public monies when. during
the time intervening between the ses-
slOnS of the Legislature. the emergency
OF war. invasion, rebellion. peStilenCe.
or other great public necessity shall
arrive"
We may arrive at 4 point where the
means of carrying on certain public
works, as, for instance harbor i'm
pTovements. shall become n grea- pub
lie necessity.
HON. p. c. JONES.
I think the Government funds now
swelling the Treasury to n big sur
Mus. would be just rs safe IN the