Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-12-26
PECK BRINGS
GOOD news ON
LEGISLATION
Continued from page onel

s-.-t 49,.
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gional reserve system their charters
would be forfeited. III
Some time ago the Star-Bulletin
published the full report Of the hear
ing given Mr., Peck before the senate
committee Now it appears that the
OFFICIAL report itself omitted the last
happening at the hearing, that last
happening being the expression of
reinsurance for Hawaii. -
From Senator o'Gorman-
Just at the close Of the hearing"
said Mr.. Peck this morning, Senator
s0'Gorman rose from the table around
which the committee was seated, and
after taking a few = steps up and
down., sand. Mr.. Peck, Wen see to it
that the, national =. banks in Hawaii
don't lose their charters He spoke
in a rather low voice, and presume
that It wasn't heard by those who
took the notes at the end OF the long
table - -. -. 80 u. =.
"And that was, lust what had
gone to Washington for" said Mr..
Peck, smilingly, ito see where we
stood under the new bill. and that SEN
tence didn't get into the printed record!
However, in my own mind ] feel, of
course, that the national banks In Ha-
vail need not worry over the possible
loss Of their charters provided they
wish to retain them and continue as
national banks
Hawaii and the New System.
Referring to the constructive posi-
Utilities and under the new law, Mr..
Peck says that Is a matter for care
full consideration. For Hawaiian ma
tional banks to come into the regional
reserve system, application to the fed
eral reserve board Is necessary, this
beard having considerable power to
determine the membership in the re-
gional system.
& In response to q question whether
supplementary legislation VII De
required for Hawaii to enter in the
operation of the new law, Mr.. Peck
said chat It Is generally recognised m
Washington that the prospect OF sup
Elementary legislation is strong, to be
carried out as the workings of the law
become more manifest.
"This lack Of precision in the bill
will doubtless be remedied In case 1t
is necessary, he says. y
How shall Hawaii Entsrf
Another question important to Ha.
vail which the future must settle Is
whether the national banks Of the ter.
ritory shall come into q regional re-
serve part Of which is on the main
land, or whether one of the new re
gional centers'a shall be created en-.
tirely in Hawaii Expressing no final
opinion ON this matter today, Mr.
Peek neVeftheiess indicated that Ha-
wall may pdssfbfy secure better re-
suits If q regional center can be es-
tablis.led here.
"For the national banks OF Hawaii
to join with the banks of California,
Arizona or Utah, say, might have Sc
rious disadvantages, he observed.
"They wouldn't know us or our sit
uation and we wouldn't know them.
It is certain that each bank in the
group to which 1t belongs will watch
every other bank closely, for failure
or other disaster to any member Of
the group would put additional strain
upon the aother members. For this
reason. it win readily be seen that
the. bankers on the committees In
charge of the system win takea very
keen interest in the operations Of the
new law"
Sees Probable Advantage.
One probable ADVANTAGE for Hawaii
is seen by. Mr.. Peck In the fact that
the banks here will be able to OBJ
serve the workings Of the new law
and judge their own future participa-
ton accordingly. He thinks that To-
cal institutions WIN have some time
to see the law lin operation on the
mainland before 1t will be necessary
for a decision as to the Hawaiian
membership rs
He was asked II the First National
Bank must immedia enter the sys-
tenn or e BE surrender its rights as q
United States government depositary,
and answered that such is not the
case. In his hearing before the COM
mittee he explained the peculiar sit
uation here with reference to the de-
posting of government funds, made
necessary by the presence of the mill
tary, federal work, etc, all at a dis
lance from the mainland. Assurances
have been given that under the law
any member bank may be designated
as depositary, and in the case Of
the First National Bank, it. will not
be necessary for this institution to
become a member bank Immediately
in order to continue as a government
fund depositary
Mr., Peck's comments on the pro-
gress of legislation at Washington
are extremely interesting. He was
impressed with the caliber of some
of the senators opposing the passage
Of the currency law in it's present
form, as we'll as with the strength of
the administration and fts~loyal fol-
lowing in congress. Senator Hitch
cock of Nebraska, Senator 0'Gorman
of New York and Senator Reed of Mis-
souri,, all vigorous opponents of pass
ing the currency bill speedily, are
dominant figures, he comments. Sen