The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1909-05-01

WANT HELP
LOCAL MERCHANTS ASSOCIATION
ASKED TO ASSIST IN SUPPRESS
SION OF FRENZIED FINANCE.

A scheme of frenzied finance among
the japanese fthis Territory, which
lis said to be causing a great deal OF
difficulty, has been called to the at
tention of the Honolulu Merchants
Association by the Japanese Mer-
chants Association of this city. The
latter want the assistance of the haole
merchants to put an end to what is
known as "Tanomoshi,' or ko, which
is really kind of primitive banking
hui, through which loans are made
at a tremendously high rate OF inter
est
The plan is one which has been at
tackled by the Japanese press OF this
city and which they state has been
called to the attention of the Attor-
ney-General's department without re-
suit. The japanese who are interest
ed in the matter are said TO have OBJ
tanned legal advice from Judge Hum
phreys and A. c. NJ. Robertson.
The Hawaii Shinpo of Dec. 20, 1905
contained the following description OF
tanomoshi:
The Japanese laborers on the plan
tations usually join what they call
TanomOshi or llo which is very
primitive form Of a banking hui. 1t
is a hui formed By say from half a
dozen to a score of men Members
meet at certain fixed date each
month with a certain sum of money
| to invest. Suppose there are ten
persons interested and the amount
each member invests each month is
ten dollars At the first meeting
there will be one hundred dollars in
the hui as its capital. Now come bor-
/ rowers, for money, like pretty girl
is not left long alone. Each applicant
for a loan comes and bids for the net
amount he would take and the money
goes to the lowest bidder-that is, the
member who offers most discount for
the money gets the loan.
Now. suppose that he bids at ninety
dollars as his net receipt, there will
be ten dollars left which will be di-
yided among the nine remaining mem
bers as the interest on their invest
ment. The loan is given to the sue.
cessfu bidder and he in his part give.
his note for one hundred dollars witt
interest at say five per cent per an
mum and made payable in nine equa
instalments. Such notes are endOrs
ed generally by two other members
but security is seldom given; auC
there is the loophole to escape from
payment
In the second month they NEE
again and there is collected again on
hundred dollars plus the interest pait
on the first loan. This is again loan
ed to the lowest bidder and the bal
ance is divided up among the rest o
the members as was done in the tirs
month.
When money is tight large dis
counts are offered and the diyident
amounts to two or three dollars 70
each creditor who pays in only tel
dollars, but the risk grows proper
tionately.
Some Japanese spectators ar
joined in many huis seemingly be
yond their means. They manage how
ever TO draw money from one an
pay into the other, and it is said tina
some plantation laborers are payin
from thirty to forty dollars a mont
in assessments while their wage
amount to only eighteen dollars. {
course in such cases they are goiu
into debt deeper every month and al
e forced literally into frenzied finan
o to keep their notes floating. Eve
= tually there III no way out of it fl
n them but to skip out leaving mai
creditors behind to regret the fol
n OF associating with the spectators.
n Tanomoshi is now abusively carri
a on among the plantation lahore
The practice is prohibited in Jap
= and is seldom seen among the bett
- class of Japanese in the Islands.