The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1906-09-13
About The
Hibernia Bank

Francisco savings banks interesting San Francisco has always
been seisuficien initiative and daring be On
the western borders OF the continent separated long voyage
and longer and pelous land voyage from
country, San Francisco had sesufent e-contained
selreant and take initiative As result San Francisco
and California developed literature political ideas of
own banking system and railroad system OF her
individuality of her
Not only did She develop banking system but she
developed savings bank system and that system is both
curious and interesting To the average mind savings
bank is institution formed by number minded d
conservative citizens OF reproacabe character who put their cap
a together the bank WITH willing to invest it in this
business expecting only moderate return because of the good
ban Will do IN the cultivation of habits of rugaly
IN the community The idea prevails that larger capital proper
ton deposits and business done necessary in savings bank as
compared bank
y demanded in this class of institutions
How far from the basic principles of savings banking this is
aundan proved by the the Hbern Savings bank the
German Savings and Loan Society Others the very
large and very firmly established savings San Francisco
origin ana experience OF these banks proves that in savings
banks rightly conducted there need of capital that
CT the dePoto themselves and therefore need to divert part
Oh the PoS arising from the operations OF the bank with the deposit
ors money to pay dividends capital that isn't needed
Inc Hlberna Savings Bank the German Savings and Loan
Society," started purely bans-as purely
ing and loan society There capital stock sockhod
ers such The only capital of the deposits made
e uPoSoTs ana the dPostor alone participated in the profits
AS soon dpotors had made deposits money
ana not sooner and the officers of the bank involved duty
GP TO conduct the affairs OF the institution with honesty fidelity
and ability The Hberna Bank the start Its
furnished all the capital the concern used and received all
w ne concern made 1t secured large numbers OF depoto
and as readily be thousand deposors average
hundred dollars each deposit would provide 100000 which
quite working capital Tor savings bank to start with
This purely mutual system followed for years and the
IlDernla Savings Bank be
institution under that system San Fran
cisco aid and have continued But after time
onro OF the bernla opportunity would now
be called turn in high finance Deposors were receiving all the
profits OF the business which often equivalent of two or three
Times the ordinary rate OF interest allowed savings deposits This
seemed to the schmers deposiors
when they had money they would like pro6by So the
plan proposed of capang the deposits legal
through and the plan carried at meeting
OF the depoto at which most of the depoto present were
present by proxy and probably only proportion knew really
what to be done But what this The
y resolution put through authorizing the creation capital
stock equal to the amount of the deposits Every dposor pv
legged to transfer his deposit into capital and receive certf
cate OF stock for it. But in he did transfer within
certain time then the capital stock that he might secured could
be subscribed by oer deposor that
large proportion OF the depoto neither knew appreciated what
the change and did take advantage
bulk of the stock by who put through the scheme
he bank from that time has been very different BASIS that
which started 1t has long been its
stockholders in which the dpoors get just such interest
the bank obliged to pay order and keep business while
the remainder of the profits to the stockholders
paid dollar for dollar for their stock did until the bank was
a we'll established and profitable