Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-12-26
PECK BRINGS
GOOD News ON
Legislation

| LLuWLHlWN
Continued from page onel
gional reserve system their charters
would be forfeited. -.
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 thet hearing, that last
happening being the expression OF
reinsurance for Hawaii. .r' - =
, From Senator o,Gcrn1an.
> Just at the close Of the hearing,
said Mr.. Peck this morning. Senator
0'Gorman rose from the table around
which the committee was seated, and
after taking q few steps up and
down, said, Mr. Peck, we'll see to ii
, that the national banks in Hawaii
don't lose their charters. He spoke
In a rather low voice, and presume
that ii wasn't heard by those whD
took the notes at the end Of the f1Ag
table. .s>''4' =.
and that was Just what had
gone to Washington for So Mr..
Peck, smilingly. ito see wiffee we
stood under the new bill. and Vat sen.
tence didn't get into the prin q record!
However, in my own mi. d ~ feel OF
course, that the national b Y Us In Ha.
vail need not worry oYei y possible
! loss of their charters PA fded they
national banks"
Hawaii and the New 81 lm.
Referring to the cor hetiVe posi-.
lbilities under the d law. Mr.,
Peck says that is a ESttar for care.
iful consideration. FA Hawaiian ma.
tienai banks to come TO the regional
reserve system, appliA ttion to the fed.
ieral reserve board necessary this
board having. consi ierabie power to
determine the mem ership in the re.
gional system.
In response to e question whether
supplementary legislation VIII oe
required for Hap ali to enter in the
operation Of the new law, Mr.. Peck
said that It is generally recognized IN
washington thst 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 reInedied in case Il
is necessary, he says.
How Shall Hawaii Enter2
Another question important to Ha.
waii which the future must settle is
whether the national banks Of the ter.
I1ritory shah come into regional re,
serve part of which is on the main
land, or whether one of the new re-
gional centers' shall be created en-.
ttrely in Hawaii. Expressing no final
opinion on this matter today, Mr..
Peck nevertheless indicated that Ha-
walt may POSSIBLY secure better re-
suits il q regional center can be es-
tablished here.
sFor 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.
l=uation and we wouldn't know them.
1t is certain that each bank in the
group to which it belongs will watch
every other bank closely, for a failure
or other disaster to any member of
| the group would put additional strain
upon the other members. For this
reason. it will readily be seen that
the bankers on the committees in
charge of the system will take a very
keen interest. in the operations of the
new law. ... = 4
Sees Probable Advantage. S
One probable advantage for Hawaii
is seen by Mr.. Peck in the fact that
| the banks here viii 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 will have some time
| to see the law in operation on the
mainland before 1t will be necessary
for decision as to the Hawaiian
membership. FL = e & & !.
| He was asked If the First National
Bank must immediately enter the sys-
| tenn or else surrender its rights as q
United States government depository,
and, answered that such is not the
case. In his hearing before the com.
mittee he explained the peculiar sit
uoGASA sIClCI W tile 5uS-
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 a deposftary, and in the case of
the First National Bank, it will not
be necessary for this institution to
become member bank Immediately
in order to continue as a government
fund depositary. - .'.5''- ..
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 well as with the strength of
the administration and its loyal fol-
lowing in congress. Senator Hitch.
cock of Nebraska, Senator 0'Gorman
nf NnU York and Conofor Dao.a - MI,