The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1900-09-27
GOLD WILL HAVE 70 CO
SHIPMENT OF CUSTOMS RECEIPTS
MUST CONTINUE.
Bankers Had Hoped National Bank
Could Remedy Matters But No
Change Can be Made Now.

In spite of attempts to improve the
situation there appears to be small
chance of stopping the contraction of
the currency here, caused by shipping
the customs receipts directly to the
sub-treasury at San Francisco instead
of sending the money by draft. Local
bankers have had this matter under
consideration for some time past and
previous to going to the Mainland, =.
M. Cooke looked into the case and took
steps to try and effect a remedy. After
the establishment of a national bank
here however he dropped his efforts
for reform, thinking that the desired
change could be effected through such
an institution. Such does not prove
to be the case.
The customs receipts are quite ex-
tensive here every year and the rule
is that this money has to be forwarded
directly to a treasury or a sub-treaS
ury. The result of sending out these
receipts every month has been a drain
upon the currency of the community
and the circulating medium has been
contracted materially The only way
to off set this predicament was 20 ship
| money bank to Honolulu but this The
bankers did not relish for it is
very expensive. The idea of MIR. Cooke
was to make some arrangement by
which the receipts could be dep p)sitod
in some bank and the payment made
by draft as in regular banking trans
fer of private money. This would have
resulted in keeping the money here.
"When L first took the matter into
consideration" said Mr.. Cooke, Eve had
no national bank here but after the
First National Bank was established 1
supposed that such transfer of the gov
ernment monies could be made So did
not press the case any further. The
bank with a national charter will L
presume act as the government depos"
itory."
Unfortunately the law permits the
receipts from practically every other
department of the government except
the customs to be paid by draft but the
customs receipts are required specit1-
cally to be paid in gold coin at either
a treasury or a sub-treasury.
II certainly would not be willing
said Cashier w. G.. Cooper of the First
National Bank, "to make any such ar
rangement as is proposed. The receipts
from the postoffice and internal revenue
can be paid by draft, but the customs
receipts have to be paid by The direct
shipment of the coin. This money mas
to be made over to Collector Stack
able and such a policy would not be
worth the trouble, for the reason that
the bank would loose control of the
money By surrendering the money 10
the collector that amount whatever IL
would be, would become tled up ihue
finitely and there is no reason why
hank should relinquish the control of as
large a sum- as would be necessary.
I can see no way by which any change
can be brought about in the present
arrangement for certainly this oank is
NOT prepared to inaugurated such a
system" c,. -
From this statement of Mr.. Cooper 1t
will be seen that the drain on the mo-
1.1 p
currency must still continue. That some
measure ought to be taken by which
to check the shipment or at least cur
tail it, is apparent but just what plan
will be found feasible is the question
THE priyate banking concerns appear
to have Thought that the presence. OF
a national bank would relieve the situ-
alton but the law seems to be expncl'
upon the subject and it may be neces-
sarv TO tolerate the present system un-
till the treasury department is induced
to rescind the old rule.