The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1907-06-15

their Deing scarcity for legitimate
purposes. Interest rates are not es-
pecially higher than usual at this time
OF year to the regular customers OF
the banks. Whatever stiffening of rates
there may be is due to temporary
causes which can have no permanent
effect to depress conditions One of
these causes is the fact that the sugar
crop is considerably later in getting to
market this year then last. This is
due to the change of route The Te-
lhuantepec route was not quite ready
for handling the crop at the beginning
and this delayed the American-Hawai-
ian steamships, and the company did
not have the necessary steamships in
the Pacific at that time to keep up
with production If there had been no
delay at Tehuantepec. The consequence
was that sugar piled up at every plan
tation. In other years the overland
shipments would have relieved the con-
gestion. But with the change to the
Tehuantepec route the overland ship
ments were discontinued. With sugar
delayed in marketing, there is of course
delay in returns.
I'VE are just now over the semi-an-
/
! drawn from the regular channels some
thing like 100000 dollars. But both
| of these conditions are progressively
/ Fighting themselves, and never did in
/ terfere with legitimate trade or the
/ proper accommodation of customers.
| THE demands of San Francisco for
capital to rebuild and to renew her
business has had its effect in making
| the banks more conservative.
''But the plantation dividends that
are now being distributed and the
coupons due on bonds in the near
future will undoubtedly go far to max
| ing conditions easier. Then again the
cash in the treasury vaults will soon
be again in circulation"
THE financial condition of Hawaii is
sound" said Mr.. e. L. Spalding, man
ager of the Spreckeis Bank. ''The
banks are naturally pursuing con-
sentative policy. Yet / believe that
every real need that banks ougnt to
supply is being met Besides the jarge
amount of money withdrawn from cir
culation by the calling in of taxes and
the delay in realizing on the sugar crop
by the backwardness of shipments at
this season as compared with other
years, there is another element San
Francisco was formerly a very wealthy
city. It's banks and men of money were
constantly looking about for invest
ment elsewhere. A great deal of San
Francisco money was invested in Ha-
waiian securities, and is still.
But the disaster to San Francisco
created great needs. The rebuilding of
amount than the insurance money. It's
needs for business are great. Instead
of looking elsewhere for investments
for it's money, San Francisco is now
obliged to look elsewhere for money to
meet the needs of it's rebuilding. 1t is
natural, therefore, that it's banks and
capitalists holding Hawaiian securities
should want to realize on them. AS a
matter of fact, Hawaiian securities
have been coming here by the mail in |
considerable quantities for some time. |
The banks and the men who lend |
money have been called on for money |
to take these UP. 1t is the best pos !
sible proof of the soundness of our fl
nancial condition that these securities |
have been taken up in such large guam
titles with no disturbances to our f. |
nances. 1t must be remembered, too,
that while the taking up of these Sc
curities has called for large sums of
money which have been forthcoming,
now that they have been taken the div
idends and coupons as they fall due
will go to swell the volume of money
in circulation.
All of these operations and condi-
tons have been sufficient to reduce the
volume of money available, to stiffen
interest rates to some extent, and to
call for a conservative policy and care
for the regular needs of commerce and
accommodation for regular customers.
But there is nothing in the situation
gloomy or paniclzy.
''Of course, impossible propositions
are always being put up to the banks.
These now nor never could be enter
now than ever-if possible.
But no proper needs of regular GUS
toners in the regular business are turn
ed down, l think.
There are. other evidences, also, of
a sound financial condition and a salts
factory commercial one. Hawaii is in
good shape"
General inquiry among the business
houses of the community reveals a sit
Iation that is considered satisfactory. ,
Trade and business in all lines is ac-
i've. AS indicative of the state in
many other lines and in many other ,
houses, it may be stated that the Ga !
.ette Company, in all it's history, has =
never done the volume of business that .
is doing now. Work is thrust upon :
t from all directions and from all parts
# the Territory. Other concerns have
he same story to tell. There may not
'e money for speculative schemes but
there is for steady business
naARrwn