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

ally conceded that the administration
1 viii not give up that portion OF the
4 bill wherein the control is left In
the hands of the government. The
representation of the banks may be
Increased in the governing board. bu,
the control win still remain. in the
government. Some Of the banks seem
to fear the government control on &C.
count of possible political appoinfees
on the board Probably the wiser
fopinion of q great number. of the
banks is that government Control Is
not to be feared, that the personnel
! Of the beard 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
privilege Of .rediscounting the banks
paper In times Of stress is so import
! ant that this point win ultimately
call for the passage of the bill.
The question is very often asked
/ as to whether or not many of the
banks win withdraw from the system
in case that the bill Is passed, which
! to their minds Is not satisfactory.
Some of the small, country banks
may, but 1t Is extremely doubtful IL
any Of the large city banks viii do
so.
Bankers 10 Meet Admlnistration.
There seems to be sincere de-
sire by the members Of the Bankers
Association to meet the desires OF the
administration. The American Bank
err. association has today 14.100
members. representing capital, sur
plus. profits and deposits Of 1900
l00O,O0000 At Boston there were as
sembled representatives Of over 1000.
| OF the members. While the resolil
| lions called for certain definite
amendments. there seemed to be q
general feeling existing that. COM
promise plan would be decided upon
which would be acceptable both to-
1.-THE banks and the government.
Important Phase ignored. 81
Zone very important phase OF the
financial situation is not dealt with:
Id the present Bill, neither was the
same discussed ht the American
Bankers Association Convention, and
that Is the 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. It
seems to be pretty we'll decided that
this bill will be introduced IN Con-
gress early in the coming year.
-On the general subject of agricnl-
|tural credits, without any reference to-
the formulation Of a bill to cover the
same. an entire morning was given
by the convention to the hearing Of
an interesting discussion by the Hon
Jane J. Hin, 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 Iiabilities. was ably
pres hted AS q rranH Of this system.
IT is anticipated that the farmer viii
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 unon farm
properties will be reduced to the same
method as that Of loaning to the mer-l
chant AS James j. 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 3 class. does not pre-
sent his financial status to the bank.
ef as well as does the merchant, and,
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.
Hawaii's Status Defined.
Another item of great Importance,
II not as important as any, which is,
in process of being satisfactorily adj
justed. II that of the question of the
transferring of reserves from the.
banks IN central reserve cities to re-
giopal banks under the act This Is
likely to cause some contraction in
the deposits In the hanks of the CEN
tral reserve cities. A system is being:
evolved whereby this transfer viii be
brought about gradually.
A new constitution was adopted
for the American Bankers Associa-
ton. Under this constitution banks
liz 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-
tstitution 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.
1t read, the position of this territory
was not quite clear. u
"A further amendment, more. clear
tly defining representation at the con-
yenfion and other wise in the associ