The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1907-09-16
BANK BUYS
BOND ISSUE
Big Deal by the First
National, and Tenney
Peck's Mission.

The entire bond issue of $2SS,00G
authorized by the last legislature and
approved by Governor Frear, will be
taken by the First National Bank OF
Hawaii.
While the actual contract has not
been concluded, as indeed it can not be
until the bond issue has been approved
by President Roosevelt, the deal has
practically gone through. Governor
Frear, when asked specifically about
at, said that it was an uncompleted
arrangement of which he felt that he
could not speak at this time, not even
to say at what price the bonds are to
be sold.
Treasurer A. J. Campbell's trip to
the east is really for very little more
than to secure President Roosevelt s
approval of the bond issue and to see
to the proper engraving and register
ing of the bonds. At the same time he
has taken with him, and there has been
sent after him, all the data that will
be required in case, for any reason, it
becomes necessary to negotiate the sale
of the bond issue in New York or other
eastern money centers.
A part, at least, of the mission of
L. Tenney Peck in the east has been
80 arrange for taking up this bond is
sue Another part of his mission is
said to have been much more impor-
g tant, and indeed the important part
of his mission to which the arrange
ments for taking up this bond issue
are merely ancillary. This important
part of his mission is this:
Congress has already provided for
expenditures of something like 100000
an this Territory. There seems every
probability of the expenditure within
the next few yeays, in Notifications,
lighthouses, Lharbsf improvements, and
the imppo7epsnt of Pearl Harbor of
severd million dollars. Where the
United States has such large expendi-
tures to make in<distant, parts of the
world it>freqaently, infact usually,
aEakes them through bank designated
as the Fiscal Agent of the United
States for the given locality or pur-
pose The First National Bank of Ha
waii has long been the United States
Depository in these islands. 1t would
undoubtedly be a fine stroke for him
self and the bank if L. Tenney Peck
could secure the banks appointment
as Fiscal Agent for the United States
in Hawaii, and it is believed that to
secure this was a part of Mr.. Peck s
mission.
The bonds of the Territory of Ha-
waii have been designated by the
Treasury Department of the United
States as bonds that can be deposited
as security for. deposits of United
States money with banks.
siWhether the First National Bank be-
{ .tmes the Fiscal Agent of the United
States in Hawaii or not, or merely
a United States Depository,
the large expenditures being made and
to be made in these islands during the
next few years, indicate that there will
at times be large amounts of United
States money on deposit here, for which
the bank will have to give the secpr-
ity of bonds approved for that purpose.
Hawaiian bonds because they bear
fair rate of interest and because they
are available as such security are
very desirable bond for any National
Bank which is either a United States
or United States Fiscal
Agent.
in this, it is said, may be found
,eason why the First National Bank
s likely to become large holder OF /
Hawaiian bonds.
.A.a.-