The Hawaiian gazette., 1907-06-18

q for the season.
4 There is nothing in the evidenc
to indicate anything but satisfactor
condition of affairs with an optimisti
outlook -
There Is practically no money 70
speculation, but sufficient for regula
demands" said Clarence II. Cooke
cashier Of the Bank of Hawaii. Speak
Ing for our own bank there is no in
dication in any line but of a sound
wholesome and, on the whole, prosper
GUS condition. The sale of exchang,
keeps up which is an indication thai
people have money. Balances on de.
post are about the same as usual 10,
this time of the year
Money is not tight in any sense OF
their being a 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 st!ffening 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-
huantepec 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.
we are just now over the semi-an-
nual taxpaying period which has with
drawn from the regular channels some-
thing like 100000 dollars. But both
Of these conditions are progressively
righting 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. /. SpallIng, man
ager of the Spreckels Bank. THE |
banks are naturally pursuing con-
servative policy. Yet l believe that
every real need that banks ougnt to
supply is being met. Besides the large
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 very wealthy
city. Its banks and men of money were
constantly looking about for invest
nent elsewhere. A great deal of San
francisco money was invested in Ha-
Naiian securities, and Is still.
But the disaster to San Francisco
,reated great needs. The rebuilding of
he city calls for a vastly greater
lmount than the insurance money. It's
leeds for business are great Instead
If looking elsewhere for investments ]
or its money, San Francisco is now
bliged to look elsewhere for money to '
meet the needs of its rebuilding 1t is l
latural therefore, that it's banks and /
capitalists holding Hawaiian securities '
hould want to realize on them. AS a t
natter of fact, Hawaiian securities
ave been coming here by the mail in $
considerable quantities for some time. '
he banks and the men who lend +
money have been called on for money r
take these up. 1t is the best pos S
ible proof of the soundness of our fl /
ancial condition that these securities C
ave been taken up in such large guam. C
tiles with no disturbances to our fl v
ances. 1t must be remembered, too,
nat while the taking up of these Sc v
urities has called for large sums of c
honey which have been forthcoming. "
ow that they have been taken the div p
lends and coupons as they fall due p
ill go TO swell the volume of money C
/ circulation. "
"All of these operations and condi-
ons have been sufficient to reduce the Ct
olume of money available, to stiffen e
lterest rates to some extent, and to
all for a conservative policy and care Il
n the regular needs OF commerce and z
,commodation for regular customers. 81
ut there is nothing In the situation t.
oomy or panicky. 81
"Of course. impossible propositions r,
re- always being put up 10 the banks.
hese now nor never could be enter i.
ined-less now than ever-if possible.
ut no proper needs OF regular GUS II
ners in the regular business are turn
down, | think
There are other evidences, also, OF
sound financial condition and "a salts.
otory commercial one. Hawaii IL in
rod shape"
General inquiry among the business y
'uses ~ the community reveals sit. OF
ltion that Is considered satisfactory, 81
rado aud business IN an lines Is ae- ).
We A. indicative Of the state In h
any ether lines ANA In many other IA
'nses, il may be- stated that the ia ~
tte ompany, IN all lie history, has N
'VHf done the volume of business that n
II doing nov, Work IL thrust upon "a
fram All directions and from all parts ii
iNr VlrrlH4ru ttIl.n a.us...a l.asfa ~