The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1900-03-27
STARTING RANKs cHEAPLY.
Drop a Nickls IN the Slot and Get
a Charter.


NEW YORK. March l5--That coun- .
try banks in the south and West are
preparing 20 change from S.a.e 10 Ma
l5ual banks when The Currency bill
becomes a law IS clear from advice .
that have reached local BANKERS in tal|
past few days. such banks would no.
alve 50 much difficulty in keeping ou.
circulation as the large Na-lonAl banks
here might have. There are also la-|
l.catOns THAI the provision o. the bill
allowing the Organization OF small Ma
-ioHal banks with S25.0oO capital wal.
be taken advantage Of by many per-
sons
II was said by one local bank ofice-I
yesterday that he thought there migl.N
be as many as 1000 National b5nk
charters applied for under the new
law. lie pointed out that very small
amount Of actual capital might be.
made sufficient 10 start bank. 70 live.
| or die as might happen. 4 maa Win
/ only $4,000 could start a balk 10 he
| could arrange % borrow $4,000. the
/ money TO be paid back in the form o..
| the circulation that the bank would is
| sue. All that he would have TO do
would De to secure SIS, 600 OF the new =
per cent, refunding bonds. which could
be obtained at prevailing quOlaloDs
| for about S26.75O. He would send thess
bonds. representing the capital OF the
| bank. TO Washington. circulation for
| the full amount being Immediately
taken out against them. The amolut
which would have 70 be let with the
Treasury as a redemption fund would
be per cent. or 81 ESQ. making the
total actual amount OF capital supplied
by the banks organizer tied up in ,he
, | enterprise but S2.75O
There has been talk THAI the larger
, local State banks were likely % take
, out National charters. but the Prov
] sion in the State law that allows bank.
; to establish branches Is likely I'd act
as a check upon such a change. IN,
associated National banks OF this ca
have a combined circulation OF SIS.
5S4.3OO. while their total capital is Sj7.
O0O. 600. Il was the opinion OF severa
, bank officers yesterday that under I'll
: currency law one-haH Of the lOca
r banks would ultimately increase thei
@ | circulation TO the full amount Of thei
= capital.
e How much the general expanslor
q will be has been the subject OF nue.
i argument. One Of the best-knoSl
bankers in the city expressed the opin
: ion that the increase in the amount G
/, | circulation in the near future woul
, not amount 20 100000 0OC. The pr
IL cess. he thought. would be gradual. .,
3 cupying all the spring and much Of %
k summer, and by that time. with the d'
l. mands of business and the needs OF N
m interior for money 20 move the crop
% all the notes issued would find read
- employment.
- The money market has been. stiff'
- in the past two days. rejecting col
20 tinued drains upon the reserves OF Il
IN local banks as a result OF heavy pa.
n nents OF customs and internal re-
OF enue receipts into the Treasury az
a the enlargement of the banks loans
ne country banks. Call money was quot
ey on the New York Stock Exchange 70
to terday at 2 to 81 per cent, with p
re cent the ruling rate. Suggestions
10 banking interests are understood
n have been made to the Treasury ID
~ partment that IT would be well Z
.ta the Government TO allow internal re
i'm enue money TO remain with the ban
at designated as special depositOTies un
nd the new law goes into effect.