The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1907-10-31
FRISCO BANKERS
HOLD THEIR MONEY
NOTIFY HONOLULU NOT TO Elk
PECT THE USUAL SHIPMENTS
OF GOLD.

The general financial disturbance
which during the past week or more
has spread from Wall Street, New
York, across the continent affecting
almost every state and community,
has at last reached Honolulu.
1t came yesterday with the cable an
nouncement received by the various
local banks that for some time at least
there will be no shipments of cash
from San Francisco, clearing house
certificates being the best thing that
would be offered for the time being.
Bankers and business men of Homo
lulu are not alarmed and it is noe ex-
pected that the Territory will suffer
appreciably, or that any stringency
will be noticed by our people. The on
ly danger which threatened was OBJ
waited yesterday afternoon by an order
issued by Governor Frear that for the
next sixty days the Territorial ra2
Office will receive instead of cash for
taxes, certificates of deposit in any or
the four banks of the city.
The reason for this order is that
there was a possibility of scarcity OF
coin resulting in case the quarter to
half million of dollars due within the
next two weeks for taxes was tied up
IN the vaults of the Territorial treas
ury. This might happen when the
gold supply from the Coast is shut of,
as a considerable proportion of this
tax money comes from California. The
only money in coin which the Terri
tory will demand during the next sixty
days will be such as may be actually
needed for current expenses and which
will be Immediately put in circulation
again, and in such event, the certifl-
Gates of deposit may be casheu
Governor Frear issued this order
yesterday after being calleu upon by
representatives from the four leading
banks-S. M. Damon, G. NJ. Cooke, e..
l. Spalding and Cecil Brown. None Of
these gentlemen express the least APP
prehension, save only on the matter
of tax money, just referred to, which
might reduce the circulating medium
unduly.
Other precautions have been taken
by the banks to conserve the coin sup
ply of the Territory, by adopting a
rule of endorsing drafts from the
Coast which would take gold from the
Territory in amounts of $500 or over
payable in clearing House certifi-
Gates"
AS yet the local bankers do not
think that there is any necessity for
issuing clearing house certificates, as
has been adopted in most of the main
land cities, as a temporary eXpedient.
Besides the business between. the
banks of Honolulu has never actually
required a clearing house, and some
such an institution would have to be
established.
Bankers in Honolulu are not pessi-
mistic at all in regard to the general
financial muddle in the States. 1t is
recognized that it is in a measure a
result of the excess of prosperity
the country has been experiencing for
some years past There is such gen.
eral good times in fact that money
has been scattered all over the coun-
try and is working in all sorts Of en-
terprises with the result that it has
been withdrawn from the big money
centers of Wall Street, and has caused
hard times" among the brokers ana
people whose prosperity depends on
their ability to handle other peoples
money. When the people are in posi-
ton to handle their own cash, Wall
Street gets hard up, and its securities
go begging. 1t hasn't money enough
to work with and its paucity of cash is
reflected to other money centers with
similar effect, though In less degree.
The phenomenon is one which is rath-
err unique in American history. The
nation is a good deal in the position
of business man who is worth thou
sands, but suddenly wakes up to the
fact that he hasn't money enough in
his clothes to renew his meal ticket,
and has some little inconvenience IN
getting access to his wealth.
FARMERS BALL.
Tho farnner's hall given last night in