Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-10-27

7 ally conceded that the administration
will not give up that portion of tho
bill wherein the control is left In
the hands Of the government The
representation of the banks may be
Increased in the governing board, but
the control will still remain in the
government. Some Of the banks seem
to fear the government control, on &C
count of possible political appointees
on the board. Probably the wiser
lopinion of great number of the
banks is that government control Is
not to be feared, that the personnel
of the board will be men of unques-
tionably high character and that the
relations of the financial institutions
of the country to the government
will be safe in their hands, as far as
the government is concerned and SO
far as they are controlled by the pro-
visions in The bill. The fundamental
4 privilege of rediscounting the banks
4 paper in times of stress is so import
ant that this point will ultimately
call for the passage of the bill
The question is very often asked
/ as to whether or not many of the
/ banks will withdraw from the system
in case thai the BIN is passed, which
to their minds is not satisfactory.
Some of the small country banks
may, but It il extremely doubtful II
any Of the large city banks viii do
/ so. -
Bankers TO Meet Administrator.
| There seems to be sincere de-
sire by the members of the Bankers
| Association to meet the desires Of the
administration The American Bank
ers' Association has today 400
members, representing capital, sur
plus, profits and deposits of $15,000,-
000;000.00 At Boston there were as
sembled representatives of over 1000
of the members. While the resolu-
tions called for certain definite
amendments. there seemed to be a
general feeling existing that a COM
promise plan would be decided upon
which would be acceptable both to
the banks and, the government.
important Phase Ignored.
"One very important phase of the
financial situation is not dealt with
in the present Bill. neither was the
same discussed at the American
bankers Association Convention, and
| that isthe system of agricultural
credits. II seemed wise, both to the
administration and to the Bankers
Association, that this question be-
dealt with by a separate BILL tt
seems to be pretty well decided that
this bill will be introduced In Con-
gress early in the coming year.
"On the general subject of agricul-
tural credits. without any reference to
the formulation of bill to cover the
same, an entire morning was given
by the convention to the hearing Of
an interesting discussion by the Hon.
James J. Hill, Joseph Chapman and
DR.. Vincent. The education of the
farmer to properly cultivate and
handle his crops. system of farm
credits and placing of farm agents in
different localities for the benefit of
the farmer, the merchant and banker,
the. dignifying of farm labor and the
pursuit of farming. also the question
of proper system of farmers hand
ling their own credits. showing their
own assets and liabilities, was ably
presented. As 2 result of this system.
1t is anticipated that the farmer will
be able to- present to the banker and
the merchant his financial status in
the same manner as does the mer-
chant, and that the loaning supon farm
properties will be reduced to the same
method as that of loaning to the mer-
chant As James ]. Hill remarked,
when asked the question as to why
the loaning rate was generally higher
to the farmer than to the merchant,
the farmer, as class, does not pre-
sent his financial status to the bank
er as well as does the merchant. aud
that when the time arrives that the
farmer can Systematically meet his
obligations when they are due and
present his financial status to the
banker as does the merchant then
the rate will be more nearly the,
same j.
Hswaii's Status Defined.
Another item of great Importance,
If not as important as any, which is
in process of being satisfactorily adj
justed, is that of the question of the
transferring of reserves from the
banks in central reserve cities to re-
gional banks under the act This is
likely TO cause some contraction in
the deposits in the banks of the cen.
trail reserve cities. A system is being
evolved whereby this transfer will be
brought about gradually.
"a new constitution was adopted
for the American Bankers Associa.
ton, Under this constitution banks
IL Canada and Mexico are no longer
full members, they having no right to
vote and being entitled only to protec-
tive benefits. An amendment to the con-
stitution was made on the floor of
the convention, at the request of the
delegate from Hawaii, which more,
clearly defines the status of Hawaii
in the American Bankers Associa-
ton under the new constitution. AS
it read. the position of this territory
was not quite clear.
"A further amendment, more clear
ly defining REPRESENTATION at the CON-