The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1908-01-15
HOW Coin WAS
KEPT IN TOWN
Interesting Statement by One
of H0noIulu's Big
Banks.

IN SenQlHS out It's DdIdI4C0 SACSl LOA
Dec. 81, 1907, the First National Bank
introduces its table of figures. with the
following letter to the stockholders:
To the stockholders of the First Ma
tional Bank of Hawaii at Homo
lulu.
Gentlemen: Another year has pass
ed since our last annual meeting, and
we come together today in pursuance
of our articles of association for the
purpose of electing a board of direc-
tors for the ensuing year. The board
so elected will subsequently organize
and elect a president, vice president
and cashier to conduct and carry on
the business of the institution for that
period. The judges of election ap-
pointed TO supervise and conduct the
election of the board of directors at
this meeting are H. NJ. Won Holt, Z.
c. Ables and David Dayton.
The present board of directors are
Geo. n. Wilcox, NJ. P. Robinson, W.
r. Castle, L. T. Peck, Bruce Cart
wright and Cecil Brown, who are
eligible for reelection and ask to be
renominated and elected for the en-
suing period.
Our correspondents in the principal
cities of the United States, Great
Britain and Europe have not been
changed during the period, and We
have to acknowledge from them the
uniform courtesy and attention to
business that has heretofore been ac-
corded US.
During the year we were able to
purchase from the Territory of Hawaii
an issue of bonds bearing interest at
the: rate of three and one-half per
cent. per annum, of the par value of
S294, 900 at the rate of 98.15, making
same cost us s28S,561. These bonds
were, by the courtesy of the Secretary
of the Treasury of the United States.
received as security for u. S. Gov
eminent deposits at the rate of ninety
per cent. of their face value, in the
place and stead of u. S. 2 per cent.
1880 bonds of the par value of $264,600.
By this transaction the income of the
bank was increased within a fraction
of one per cent. on its paid up capital.
A financial panic or crisis, commenc-
ing in New York in October of last
year, had a general run through the
whole of the United States, and in
consequence thereof the issuing of
Clearing House Certificates was re-
sorted to in all the principal cities
and financial centers as means of
relief and to provide sufficient cur
rency for the country's need. The
banks in this Territory, or rather
those doing business in Honolulu,
were prepared to meet a panic, should
it arise, by issuing Clearing House
Certificates, the banks having taken
measures TO establish a Clearing House
for that purpose. The occasion for
such issuing did not arise here and the
banks were able to carry on their
legitimate business of banking with
out issuing Clearing House Certifi-
Gates, and that in the face of being
unable to obtain gold or currency from
San Francisco or elsewhere. The gov
eminent of the Territory cooperated
with the banks in this matter, and in
consequence thereof and because of
the special arrangements made by this
bank with it's eastern connections for
the transfer in cash of funds repre-
senting excess U. S. deposits (thus OBJ
waiting large shipments of coin from
there was no scarcity of
gold for business purposes. A possible
panic was thus averted, and the is
suing of Clearing House Certificates
became unnecessary.
The value of the business transact |
ID by the bank for the past year has |
Exceeded that of any of the last four
years, and the prospects are that it !
viii still continue to show an increase |
n each future year. The gross profits |
or the year have been 1895 and the |
expenses $50, S01.61. The balance then
emaining has been applied to the
payment of a six per cent. dividend |
to $4,000, paid semi-an-
lually, to the providing for bad and
doubtful debts, to the carrying to sur
,lus account the sum of $4,000, to
writing off from furniture and fixtures
ccount the sum of $1,000, as well as
o writing off from the account of pre-
mum on U. S. bonds the sum of 1920.
NE sum thus remaining, amounting
0 SS223.54, has been carried to 1908 ac-
cunt of undivided profits.
A balance sheet has been prepared
howing the status of the association
t the close of business December 81,
907, which is made a part of this re-
ort.
Respectfully submitted,
CECIL BROWN,