Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1907-10-31
Frear'S Action Prevents
Financial Strin9ency
During Tax Period
HAWAlrS FINANCIAL POSITION STRONG

Governor Frear took steps yester-
day afternoon TO prevent any serious
results to Hawaii from the financial
Strlngency and shortage of gold coin
that is prevailing ON the Coast and in
New York.
lie notified the banks and sugar
agencies that the Territory would ac-
cept certificates OF deposit in pay
ment of taxes which become delin-
quent on the 18th of November. This
Will prevent a heavy withdrawal OF.
coin from the business of the Islands,
and its useless stacking up in the
vaults of the Territorial Treasury.
The Governor did this after a con-
ference with representatives of the
banks of the city. These gentlemen
had received cables from San Fran.
cisco outlining the stringency of coin
in that city owing to the unsatisfac-
tory condition in the East. For Ha-
wall to call for large shipments of
''ihf 10 usual Ut Nht NdA pei lohs
would tend to complicate situation
which otherwise is due to promptly
straighten out.
Consequently Governor Frear took
the very wise stand of doing all pos
sible to prevent serious stringency.
In the matter of taxes the Territory
will accept certificates of deposit.
Thus the surplus cash will be avail |
able for public use and not pile up in
the Territorial vaults. As the cash is
needed by the Territory 1t will be
supplied, thus keeping the coin with
in the Territory in constant motion. |
While this condition prevails every
thing will go forward satisfactorily. |
The financial position of Hawaii is
better than 1t has been for a good |
many years and there is no reason |
why the stringency on the mainland
should seriously upset things locally.
The Indebtedness of all the large fin |
ancial and sugar institutions is paid
and there are good-sized SURPRISES |
due from the East as Il result of the
payments for the large sugar crop
Just marketed. The action taken by |
the Territory and the. especially con-
policy of the banks all tend
to make the position of the Islands
strong. For that matter the banks
of this city for the past six months
have been following a policy which,
although 1t has been unpopular in
the esteem of some, has nevertheless
rut them in position to aid the COM
munity in standing a stress of wealth
er.
The improved financial condition
in the East will speedily communicate
itself to the banking institutions OF
the West and the present furry will
econ be a thing of the past. Then
Hawaii will congratulate itself that
its financial men were conservative
and looked ahead, while terrifying |
the community against a day of trou-
bic.
q & 4 :: :: e :: e q - q :. 4. :. y -
was suddenly thrown on the market
and sold down to II, which is a low |
record.
With the loss of his holdings in
the steamship trust, so far as can be
learned, Mr.. Morse sacrificed all his
securities with the Exception of his
stock in the ice trust. Even these Sc
curities, it is said, are held by the
Mercantile National Banks for loans
made to Morse and his associates, and
nobody believes that he would be
able to redeem the stock of the ice
trust, which sold at "a a share a
year ago, and broke today from
81 1-2 to 20.
Just how many millions Heinze,
+. r. Thomas, Morse and others OF
their clique, borrowed from their
owns Mercantile Bank, on their fad
ing securities, is not known. There
Is a report in financial circles that
more than s3.O0O,O0O of the surplus
fund nj tho hnpI hoe bicn