The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-11-21

turn it to circulation; besides 1t is too
slow in its operation.
We have before us the example of
the United States Government, which
has its banks Of deposit in the various
money CeIters Of the country, in which
Government funds are deposited thus
enabling those banks. by loans. I'd keep
IN circulation vast sums OF money mat
otherwise would be locked In the
Treasury vaults. In times OF strIngen-
cy the United States Treasury makes
5! scial efforts to increase its deposits
in these banks. The security usually
eXacted from those banks are United
States Government bonds, when are
deposited with the United States
Treasury to cover the deposits. The
United States Treasury has even gone
further and accepted municipal bonds
OF the city of New York as security.
| suggested TO a local banker the
ether day a similar means of relief
here, but the reply was the banks prac-
tically held no Hawaiian Government
bonds.
1t occurs TO me, in case of severe
stringency, the confidence of the pub
al in our banks is so firm that the
holders of Hawaiian Government bonds
would willingly loan them to our banks
at low rate of interest, say. , per
cent per annum or even l per cent, and
thus the banks would be in position to
tender the Hawaiian Government its
own bonds as security for deposits of
Government funds. Thus an addition
al income would accrue to both bond
holders and banks and the financial
pressure be relieved. No man or Gov
eminent can ask better security than
his own obligations. The present sit
uation is one never anticipated, but
undoubtedly is and should be within
the scope and power of the Cabinet to
meet, certainly if with the concurrence
OF the Advisory Council.
In the United States it would &c
simply an Executive matter
B. f. DILLINGHAM.
In my opinion the holding OF the
surplus Government funds in the
Treasury and the small prospect for
an early appropriation of them, is a
blocking up of the working capital of
the community. | believe that it is
possible for the money to be deposited
in the banks, If proper security can be
Offered-GOvernmen bonds, for in
stance. If there should at any future
time be a stringency in the market and
our Legislature be without power to
meet and make necessary apprOpria-
lions, that if the banks could offer Gov
eminent bonds as security the Govern
ment could put out some Of the money.
This plan, l believe is somewhat gen
orally believed to be easily within the
w. w. HALL
1t is a very serious matter to with
draw so much money from general cir
CGlatiOn, but it seems to me a graVer
matter that with SO much surplus in
the Treasury it cannot be used to
build public roads, widen our 'treets
and make many public improvements
which are absolutely necessary. Since
the President decided that no cleo
tons could be held. and there s no
prospect of the Legislature meeting,
am of the opinion that the members Of
the last Legislature should hold over,
and appropriations be made by it of this
surplus. [ don't think the Council OF
State has any authority in the matter,
for there is no emergency such as war
or peStilence, by which the money
could be taken from the Treasury and
thus put into circulation. 1t is certain
ly a shame that public monies received
into the Treasury should be the means
of causing a stringency in the public
money market.