Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1903-04-03
SENATE.
Thirty-eighth Day.
Afternoon Session.

its substitute introduced by the COM
mittee on Ways and Means. Replying
to arguments of the committee, he said
! the liability to failure of bank was
| common to all kinds of business. In
stead of United States bonds for secur-
ity, as in National banks on the Main
land, 1t was proposed that the deposit
tary appointed under the bill should
deposit with the Government the bonds
of this Territory. It was provided that
the bonds for deposit be put up at
auction for sale to the highest bidder,
the upset price not to be placed at any
figure below par. The privilege of be-
coming the depositary would thus be
open to the competition of all of the
banking institutions In this city. Ono
of the benefits of having a depository.
whichever bill the Senate chose to pass.
woulu be the prevention of an evil
heretofore existing, that of having
large amounts of Government money
corked up in bottle and withheld from
circulation. The profits to the depos.
itary would be the difference between
and 8 per. cent interest on the aver
age amount of public money II would
have to use in its business at any time.
Should the Government keep the de-
post drained low, the depositary would
stand to be out and injured one or two
per cent on the amount handled. His
sole object In introducing the bill was
to provide an outlet for the circulation
of public money while not being ac-
tually used for the expenditures of the
Government.
BaIdwin's Views.
Senator Baldwin disclaimed any de-
sire 10 brag about the wisdom of the
committee, yet he considered 1t good
bill. II. under the original bill the
depositary took the issue OF fire claims
bonds at par. the Treasury would be
tied down to placing its deposits with
single bank for fifteen years. The
saving the Government would make
on having the bonds taken at par they
did not know, II could not be ascer-
tanned until the bids were opened in
the East. II might be seven per cent
for all they now knew. The great OBJ
lection to the original bill was tying
the Government up to one bank for If.
teen years. The committee bill was
drawn more on the lines of the law
governing public ,depositaries in the
States, in fact was drawn in toto from
that law. Senator Browns bill was
partly drafted after that law. (Sen-
ator Brown-"That is the basis') but
It had new features including that OF
binding the Government for fifteen
years. Another objection to the orig
inal bill was In its dispropOrtiOn.
Sometimes the Government had more
than million dollars lying idle,
whereas the security required of the
depository did not amount TO more
than quarter of a million. The COM
mittee had discussed the question with
bankers and business men and the re-
greet on all sides expressed was over
the ACCESSIBILITY that seemed evident Of
opposing the measure of the honor
able Senator. recognized as he had al
ways been for his business ability and
his faithfuluess as a legislator to tho
interests of the public. Concluding,
the speaker uttered the opinion that
Senator Brown, on looking at every
phase of the question, would support
the bill submitted by the committee.
President Crabbe asked what would
be the result II two banks should bid
the same price for the bonds.
Senator Baldwin said the bill did not
provide for more than one purchaser,
Senator Cecil Brown said there would
not be enough for two.
Aehi for Substitute.
Senator Achi argued in favor Of tho
committees bill. Under county gov
eminent they could not foresee what
changes might take place in fifteen
years. There might be large amounts
of public money accumulate at Hilo,
Waikiki and Lihue, and II might be
inconvenient to have the public bank
ing for those centers done in Honolulu,
ine speaker criticised the original bill
in several details.
Senator Cecil Brown, while admit
ting some force In part OF the previous
speakers remarks, stated that he had
amendments to offer II the Senate was
going to act on his bill which would re-
duce the objections stated to empty
wind.
Mccandless' Query.
Senator McCandless suggested q
question as to the result II the bids
from the mainland for the bonds some
OF which the Secretary Of the Territory
had already received, proved to be al
favorable as the highest local bid
Suppose, then. the original bill passeC
would II not be regarded as snap by
the Mainland capitalists, who In re
turn for buying that small parcel o
bonds would be enabled to start banl
In Honolulu, which would have the u.s.
of all the public funds of the Treas
ury?
BY vote Of 4 to 8, a motion to pas
the original bill was lost. The sub
stitute bin then passed second reading
on motion Of Senator Cecil Brown, an,
was set for third reading on Monday
Liquor Bill.