The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1907-10-31
GOVERNOR FREAR
MEETS SITUATION
CONTINUED from Page One.l

grams from San Francisco will have
on the local financial situation is in
regard to the money which is gener-
ally imported from the mainland for
use in the payment of taxes, ana any
trouble from this source has been
avoided by prompt action on the part
of Governor Frear. He has issued no.
tice to all four banks that for the pc
Rod of sixty days payment of taxes
made in certificates of deposit with
| any of the four local banks, will be
accepted.
By reason of this move the need of
money from San Francisco will
amount to very little, and the gov
eminent will not be Inconvenience at
all on account of the fact that the
payment of large part of the taxes,
now due and delinquent after Novem-
Der Is. has already been made, which
places sufficient cash in the hands of
the Territorial Treasurer to make all
payments that are needed.
In order that the cash which is
as much as possible, two of the banks |
have adopted a scheme of endorse |
ment, which will probably be follow
ed by the others. This is to endorse !
all drafts of exchange of over $780, |
which are drawn on San Francisco, /
Payable in clearinghouse certif-
this the ordinary drafts, without the
endorsement, will be used.
In speaking of the situation last
night, C. NJ. Cooke, president of the
Bank of Hawaii, said:
1.-THE situation here is normal, and
there is absolutely no cause for alarm.
four banks of the city have been held,
at which it was decided not to adopt
the use of clearinghouse certificates
here unless it should be found neces-
sary at a later date. A committee
to look into this matter, should it be
found best to adopt this course, was
appointed, consisting of myself and
Cecil Brown of the First National
Bank. We have not even made any {
for a meeting as yet, c
md do not expect to take any action
1t present.
''The fact that taxes can be paid
n the form of certificates of deposit )
will have the effect of taking away a
my hardship which might be brought
bout by the fact that we will not get
hipments of coin from San Francisco. /
IS a rule we get about $150,000 from h
he Coast to make the tax payments Y
With, and this will be kept back, ac- 6
ording to the notice received here :.
by cable, but, as 1 say. this G
honey will not be needed. t
II should not be surprised to hear :
'ithin ten days that the situation on ~
he Coast and throughout the MAIN f:
md has quoted down to normal. lie
GU have noticed how quickly the =
lew York trouble was settled. and
elieve that it will be the same all
yer the country. The method of
sing clearinghouse certificates has
cen adopted all over the United
tates in order that money may not
e drawn out of one city and used F
another where there is a lack of -
,in. This will only last for short 4
me and then the usual methods will 4
ras+ored -~'r~~ s5fE go = a.
1.-THE present situation may have the
suit of taking up the method of l.
andling funds through a clearing
,use in this city. If the government
Id the sugar houses would use such
clearing house it would be a good
ling, but otherwise there is hardly
lough business between the four
lnks to justify it. / believe that -
would be a good advertisement for
e city, as when one speaks of a -
ty to business men and they wish to
low what kind of a place it is, they
most invariably inquire, What are
5 elearings?' Now, 1 have just
lough pride in this city to believe
at we could make very fine show
g, as compared with the clearings
other cities of the country which m-
rrespond in size"
This method of meeting similar
tuation has been adopted before. IN
ertfficates of deposit on the four III
INKS of the city have been received
r taxes, and instead of being cashed
lnediately and the coin stored in U
e treasury vaults, the certificates