The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1900-06-30
MONEY HERE
TO PAY OUT
Gold For Postal Savings
Depositors.
NEW FIRST NATIONAL BANK
VIII Succeed First American Bank
and Handle Funds Brought
by MacfarIane.

Colonel G.. w. Macfarlane returned
yesterday from the Mainland, with
$4,000 in gold to pay the Postal Saw
ings depositors. The money is advanc-
ed by the Seligmans of New York, and
will be paid out by the First National
Bank of Hawaii. w. F. McLennan,
chief of the department of bookkeeping
at Washington, came to arrange for the
payments.
Colonel Macfarlane also brought in
formation that the First American
Bank will be turned into the First Ma
tional Bank. Colonel Macfarlane said:
las soon as the Hawaiian bill passed
Congress and it became known that the
Territorial laws would 60 into erect III
the ISLANDS on June 14tn, Mr.. LilIentnal
and myself left San Francisco for New
York 10 secure the influence of the Sell
igmanS in obtaining the charter for
the First National Bank. | visited
washington Almost directly after arriV-
ing In the East, to look after the pre-
urinary details, and with Mr.. Lilien-
thai pracucauy paved the way, aided
by the influence of Seligman & Co, to
secure, ahead of the other applications
First National Bank, which always
carries with it the fiscal agency of the
Government. All of the preliminari- S
having been arranged and the cooper
alton of the Seligmans secured, / re-
turned to San Francisco to arrange
with Mr.. Steinhart of the Anglo-Cal
fornian Bank the papers that had to be
hled with the application. Three Ha-
Waiian citizens or stockholders in the
present bank We're required to sign the
application with me. They were in
San Francisco, waiting for me, and the
papers werSquichly prepared and for
warded to Washington. Mr. Lilienthal
and Isaac Seligman then had a confer
ence with Secretary of the Treasury
Gage and Controller of the Currency
Dawes, and the charter was granted
to us on the morning of June 14th, the
morning that the Territorial laws went
into effect in Hawaii.
Il shall now arrange for the taking
over of the assets and business of the
First American Bank by the First Ma
uonal Bank. The capitalization of the
First American Bank is 81 600 600, of
which $150,000 was subscribed and $780,
900 paid up. 1t is the intention to make
the capital of the First National Bank
100000 and the present stockholders in
the existing bank will receive paid up
shares IN the new corporation in pro-
portion to their holdings in the old cor
poration.
THE new bank has been selected as
the medium for paving off the postal
deposits of $750000, due the depositors
or the Postal Savings Bank of Homo
lulu. an obligation that the American
Government assumed at the time of an
nexatlon, together with the 81 600 900
OF Hawaiian Government bonds These
bonds VIII be paid later, but the Seiig-
mans together with the Anglo-Cali
MI ax-i11 49,
the postal deposits on the 1st of July
The following dispatch from Wash
lngton gives the view of the situation
from there:
WASHINGTON, June 16.-Seligman
d Co. of New York have applied to the
controller of the Currency for the opin-
ion of the Treasury Department on the
application of national banking laws
In the Hawaiian Islands. 1t is inti-
mated that the company intends estab-
fishing a bank in Honolulu with $500 =
900 capital Secretary Gage was asked
by the Controller to request the Depart
ment of Justice for an opinion on the
subject, and has done so. The Attorney
General has not yet rendered his opin-
ion, but it is taken for granted that
when he does 1t will be in line with the
opinion that national banking laws ap-
ply to banks in the Island of Porto
Rico.
Inc request OF Selgmdn IL Co. is ia
ken as an indication by the Treasury
Department of the great interest the
financial world is taking in the Ha-
waiian Islands, and their probable
weight In the commercial world 1t is
said that the request of the New York
flrm has been kept secret, as it wishes
to be the first in the field from the
United States. 1t is understood that
certain wealthy local merchants of
Honolulu have been in communication
with Seligman & Co. for some time, and
Will take good share of the stock of
the proposed bank.
Mr.. McLennan and Postmaster Dat
caled on Governor Dole yesterday.
McLennan has 10000 printed certificates
win MIN to be filed out and signed by
the Governor and Secretary Cooper. as
vouchers
The object in rushing the money
mere, said Colonel Macfarlane, was
TO relieve the tightness of the market
mere, and the payments are bound To
nave good effect. When 1 left New
YORK there was discussion as to ar
rangements for disposing jof the 4.O0O.-
uVo IN the same way. Seligman was
ready to advance the money if the Gov
eminent could see it's way to enter
INTO a proper contract for returning it.
ne failure of Congress to pass the bill
~ eAe payment was purely an over
sight. The matter was overlooked i'm
the rush of business at the end of the
session There is no doubt the appro-
prlatlon will be made at the beginning
OF the next session. The bill for Incl
GENITAL expenses of the Treasury De-
partment was overlooked in the same
way. and the department is somewhat
crippled.
Though the matter may be arrang-
ed | do not think it very likely that
the S400O.0O0 c; n be advanced. 1 shall
iook INTO 1T further when l return,
which will be in about a week It is my
opinion however, that the Government
cannot make a ontract that could be
accepted by Seligman, insuring the re-
turn of the money!
Hem enway the Man.
Z. r. Hemenway was chosen by the
Board of Health yesterday to be as