Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-11-22
In Course of Hearing, Says the
Japanese Banks Here Should
Be Allowed to Continue

interesting tf-StiHlCH} bSlOIS tue SCH
ate committee Oh banking and cur
rency during the course Of his recen
hearing He drew attention particu
larly to the fact that the currenc!
reform bill as proposed does not in
clude Hawaii
The report OF the hearing, now
printed as a public document, IS a!
follows:
Mr. Peck would like the priv
lege Of calling to the attention of the
committee, Mr. Chairman (Senatol
Reed that the act provides for the
entry into a new system OF nationa
banks located in the continental Unit
ed States. That, in itself, eliminates
the insular United States-the organ
lied Territory of Hawaii. | have nc
objections to make to.that. The bill
as it has come to the Senate, I am
making no objection to that part OF
it, but there are provisions in this bill
which seemingly apply to all existing
national banks, whether continental or
| insular.
There are five national banks in the
island of Hawaii, one in the island OF
| Oahu. of which am cashier, and
/ four in the island Of Maui. Now, on
1 the island of Oahu is stationed at
/ present a large military force, and
large revenues are collected from pub
l lie dues, and large disbursements are
made, relatively speaking. The pay
of the troops alone 10 something in
the neighborhood, of $S,500,000 a year.
The disbursements. probably, will be
upward of $4,000 Q year.
Senator Reed-What are the aver
age deposits of that bank?
Mr.. Peck-The deposits OF our bank
at present, exclusive Of the govern
ment deposits. are about $1,250,000.
The capital is 100000: the surplus
and profits about $4,000 more.
Senator Reed-What other natinal
banks are there on that island?
Mr. Peck-None, sir.
Senator Reed-Any other banks OF
any character? -.
Mr.. Peck-Yes, sir; there are. The
capital, surplus and profits OF the four
leading banks in Honolulu alone are
something like $4,000, 000-the COM
mercial banks. Then there are trust,
companies. savings banks and private
banks which bring the total capital
and surplus up to about $4,500,000. -
F. Senator Reed-f1ow many national
banks are there in the islands, speak
ing of all of them?
Dir. Peek-Five. e, -.
Senator Reed-Now, what you want
this committee to do is to consider
those islands and the ACCESSIBILITY of
taking the banks of those islands into
the bill? r.
~ Mr.. Peck-Not exactly senator 4
said | had no criticisms to offer as to
the action of the house in excluding
Hawaii from the benefits or provisions
Of the bill.
Senator Nelson-You are willing to
be excluded?
Mr.. Peck beg your pardon?
Senator Nelson-You are willing to
be excluded from the system?
Mr.. Peck-We are not anxious to be
excluded. We do not pretend to come
I'D from our little island territory and
suggest to the Congress Of the United
States Just how they shall legislate
for this nation.
Senator Reed--But do you want to
be taken into this general plan or do
you want to be left out Of It?
Mr.. Peck-Speaking for myself and
for my cwn bank the First National
Bank, which is the largest national
bank there, would say that up to
this time we have never felt the need
of a rediscount market. l do not
think cur bank has ever rediscounted
a dollar of it's paper. and the banks
of the territory have taken care, very
readily of the commercial needs OF
the territory thus far came here
to suggest that in passing this bill
the existing rights of the national
banks in Hawaii be not unduly AFFECT
ed, because there are provisions In
this bill which seemingly provide for
partial annulment of portions OF the
national bank act that would apply
to us. For instance, it says in this
bill that the section referring to the
counting of per cent redemption
money lodged by any national bank
in the treasury shall no longer be
allowed to any national bank.
That, Of course. includes the
five banks in Hawaii; and 1t
also provides in section 16, and this
is the most important part of 1t,
which I especially wish to bring to
the attention of the committee, that
all moneys now held in the general
fund, etc, shall be deposited in fed
eral reserve banks, etc, and thereat-
ter the revenues of the government
shall be regularly deposited in such
banks, and disbursements shall be
made by agents, drawn against such
deDcsits. | should like to suggest
that provision be made that that does
not affect the government depository !
CT such repositories. as may hereafter |
he established in Hawaii. There is
now a depository there-Our own bank |
Is q depCsitOry--With a maximum bal |
ance of 100000, and upon it is |
placed the responsibility Of making |
all Of the disbursements and financ-
ing all the cash needs Of the army. /
the navy. and the other bureaus OF !
the United States government sta
tened in Hawaii.
Senator Reed-Vnder special act? !