The Hawaiian gazette., 1907-06-18
HONOLULU is in
SOUND FINANCIAL
AND TRADE STATE

Ihht nnahclhl conditions IN HOnolul
and Hawaii are satisfactory. eommet
cial conditions prosperous, and th
outlook for the future thoroughly er
couraging, is the opinion of the banker
of this city The pessimist can fin
ITO comfort in what they say, or just
ification for croaking in the condition
which they point out. There has ap
parently been an effort on the part o
some elements to depress confidence il
conditions and to see ominous clouds OF
the Immediate future of the islands
Whether these gloomy forebodings ar,
merely the result of pessimistic ten
permanent, or are INDUCED in for ul
terror purposes, if consensus of the
business community is a standard, they
have no basis in things as they are
or as the outlook is.
81 think it may be sincerely said
that conditions in Honolulu are very
satisfactory" said L. Tenney Peck
Cashier of the First National Bank.
"It is true that interest rates are a
little higher than they have been, and
that banks are conservative. But that
is due to conditions which do not affect
our prosperity and have only tenn
porary effect on the matter of interest,
loans, and bank accommodations.
"Money is tight and interest is high
in San Francisco, but nowhere else on
the Coast or in the United States. The
reason for it is not far to seek. The
work of rebuilding San Francisco has
called for capital far beyond the in
surance money received. Following
the disaster year ago, San Francisco
was for a time not able to carry on
it's usual business. The merchants of
other coast cities sought the business
that had been going to San Francisco.
large part of our own business went
elsewhere. Orders went from here to
New York that ordinarily would have
gone to San Francisco. All these con-
sidered, taken together with the in
dustrial disorganization existing, and
one can readily see that San Francisco
from being city that had sufficient
capital within herself to carry on her
own business, must now seek capital
elsewhere to help her. In the past
San Francisco instead of drawing
money from New York to carry on her
enterprises, has frequently sent money
to New York to take advantage of the
high interest rates prevailing there
at times.
"Under the conditions prevailing the
San Francisco banks have very natur-
ally and very properly adopted con-
servative and careful policy. Their
first duty is to the regular customers
and to meet the requirements of cur
rent trade and business. Everything
in its nature speculative has to give /
way to the more important needs of the
regular channels of business.
oui hhahCidj EeIdIlOHS with san
Francisco have been so close for so
many years, that it can not fail but
hat this condition there should be re-
lected in some degree here. The con
'ervative policy with customers there
s carried out with customers here. But
t is merely conservative policy, not
l tightening of money nor with
folding from our real needs.
"Then, too, there has just passed
AK paying period which has withdrawn
rom circulation several hundred thou
and dollars. This money is in the
reasury vaults, no longer available for S
he uses of commerce, and will only 7
ret back into the channels of trade !
y degrees. If this money had not been =
athered in by taxation and put into I
he treasury vaults, it would, for the t
most part, now be in the banks to $
e loaned out, or in the hands of the !,
and in the channels of trade. +
Then again. the movement of the n
hgar crop is fully month behind t
hat 1t was last year. The crop, in c
tead of having reached the market =
nd the returns for it being here to /,
we'll the volume of trade, is still await "
lg shipment or on its way to market. II
tut this condition is righting itself
very day. 1t can be but temporary y
! its effect. I,
1.-The result of these conditions is c.
iat, generally speaking, balances in t'
le banks are perhaps little lower a
ian usual, there is less money to loan. q
he banks must exercise care that the
gular requirements of trade are met. a
lterest rates have stiiiened very =
tile, and all speculative propositions n
N be received only guardedly. tc
This is the financial situation ns 90
en IN the Light of banking expert.
zee. Studying other indexes Of trade, >.
o mud that while sugar stocks rs %
10 are about at prices where they
ore at date taken at random say h
70 years ago, the stocks Of iranspor' w.
iion companies and similar enterprises II
Q higher Now what does that Ia. IA
auf0N IuL. tla nalu HalIss.u.s if... Ni