The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-10-08

Of PUBLIC
J MONEY
Continued from Page /,

centun of such assessed value
Thus It appears that under the Or
gaIic Act the territorial bonds are a
perfectly solid security, and as such,
acceptable as security for any deposits
the government may make The United
States government bonds which are
generally required on the mainland
command such a high premium that it
would be difficult for the banks here to
obtain them for the purposes of this
loan. The Organic Act also regulates
the time for which the bonds snail be
used. The territorial issue of bonds
bearing five per cent is perfectly good
security. 1t is a question whether all
of the banks could readily obtain these
bonds, but should certainly urge that
the government take them for security
Although the banks mere are per-
fectly sound and on a good footing,
still as a precedent and as a matter of
government business, it is necessary to
be very particular about the security
BANKER COOKIES VIEWS.
c. M. Cooke, president of the Bank of
Hawaii, in answer to question as to
whether or not he favored the plan pre-
fsSA1~o ny TIC <AQNcI llStI, 10 QSpOoll
government moneys with the various
banks, and thus put it into circulation,
replied:
II think we cannot do il under the
law. If it could be done, however, it
would be necessary for the banks to
put up territorial bonds for security.
In lieu of bonds of this kind, I would
say, use some of our best plantation
bonds, those which are considered gilt
| edged by estates and those managing
estates. The great trouble about using
| the government funds in this way
would be that the government would
necessarily have to put the money out
on call, and no bank could allow inter-
est on such conditions. The govern
ment viii probably take in in taxes
something in the neighborhood of ST.,
100000 this fall, but to tell the truth,
as matters stand now, don't think the
government will have very much
money after payingsits debts to put out
on deposit.
However, if conditions in the money
market were normal, and the govern
ment was on a footing which would
give it an opportunity to keep a large
amount of money on deposit, I should
think that such a law would operate
we'll enough. providing that the banks
did not obtain it on CALL
Speaking of government matters,
why not make two payments of taxes
in year, instead of one. This, in my
opinion, would keep money more even
ly circulated than the present require
ment of turning in property and income
taxes at the same time Of the year. AT
present we are required to go through
our books to make up our property
holdings, etc, twice a year, one for the
property assessment and the other for
the income tax assessment
"In my opinion it would be better to
go through the books on the first of
January of each year and pay in the
income tax on that showing, say March
81, and the property taxes as at pres
ent-in November 1 believe this is the
custom in California. Under the pres
ent requirements it is difficult to call in
money all at once with double taxes to
pay at the same time. Making two
payments in the year would more even
~ distribute the returns as circulat-
ing medium throughout the Territory"
CECIL BROWN APPROVES SUG-
GESTION.
Cecil Brown, President of the First
National Bank of Hawaii, said:
II don't see any objection to the ter
ritorial government depositing its funds
in the local banks if they follow the ex-
ample of the Federal government in
its requirements of the National Banks.
Toy h.
instance-we have to deposit security
mp to a certain sum; when it gets over
that sum we have to remit the money
to the nearest sub-treasury. It would
be the same here with the territorial
government, only the government
should exact some security from the
banks.
I'm country situated as these is
lands, cut off from the mainland and
therefore from the financial centers,
the banks ought to have considerable
time in which to hold government mon
eys. We could not possibly take gov
eminent funds subject to call 1t would
have to be taken on fixed terms, say
not less than thirty, sixty and ninety
day periods. 1 should say no less than
thirty days should be considered.
LAS to securities, those of the Fed
eral government with territorial bonds
next should be the rule. Lacking ell
Their of these then the securities ap-
proved of By the banks and again ap-
proved in turn by the treasurer, would
answer.
Just whether such a law could be
framed by the Legislature 1 do not
know. 1t might come within the prov
ince of the local lawmakers, and yet 1t
may be a matter which would have to
be provided by Congress. am not
clear on this point, and only say this
off-hand 1 don't, however, see any
thing to prevent the Legislature from
authorizing the deposit of public money
with the different banks in return for
securities.
IF the cable were here now it would
facilitate matters financial here great
lv. That is. a bank in San Francisco
with a good line of security in Honolu-
lu banks. could cable to its correspond
ents here to turn over such and such
securities in return for deposits of gov
eminent funds and, in order to meet
the call of the government could send
the coin down here at once. That