The Hawaiian gazette., 1914-09-11
LOCAL BANKER
SAYS FINANCIAL
CONDITIONS GOOD
:. / spaIuinu Reviews Money
Markets, at Home and Abroad
w Exchange Rates High But
Business Being Done Never
theIess
(From' Thursdav Advertiser. !


(From Thursday Advertiser.)
p II spaldihg, president Of the Bank
81 Hohol,ilu, stated yesterday that The
local anapcial situation Is good. The
skcAanke situation remains practically
No exchange is being sold
on Europe. bat bills are issued against
London, for nioderate amounts, to Gus.
toihefse The rate IL still very high, so
that practically no business Is being
except such as is absolutely
necessary.
EkcHanre Of, Oriental CRITTERS is ap.
inofmal, with material de-
me Eastern stock exchanges are still
closed. They had to close, Mr.. Spald-
ing said, because Of the enormous vol
anne Of American securities dumped on
the market when war was declared.
The only course left to prevent the
outflow on gold was to close up the
stock markets.
Clearing tIeusc Paper
Clearing house certificates were is.
sucd in al the large cities to forestall
panic. Congress then took Immediate
remedial action and authorized the is
sue BY the reserve hanks OF special
emergency currency, to the extent OF
i25 per cent Of the combined capital
and surplus of these institutions. This
put over 4 billion dollars In circulation
and relieved tho demand for gold. The
federal reserve board is now working
to perfect ITS organization. Announce
ment has been made that the new fnnn
cial system will be ready TO begin No
vember L., 4sJe 81
Emergency Currency
The clearing house certificates were
retired by the billion-dolaf issue Of
emergency currency. This emergency
ISSUE viii In turn be retired by the Bills
issued when the new currency act goes
into effect. q
Mr.. Spalding stated that his main.
land correspondents advise that r'l
banks have discontinued lohDs on bills
of exchange and on exports of fruits,
meats and grain. ~ sa.
Rseevering From FIRST shock
The first effects of the war were
complete paralysis of all business in
all sections of the United States. After
standing still for ten days or more in
prtler 20 take stock of the situation,
business began cautiously to resume
and az the present time there Is little
disturbance of the ordinary domestic
channels.
Mr.. Spalding's New York correspond.
ent stated that the greatest activity
prevails all through Eastern centers to
take advantage of the worldwide dis.
turbahce OF ocean transportation.
Trade Increase 70 Como.
The American merchants and ship
ping interests believe that there will
be a tremendous increase ii the trade
with South America and to a lesser
degree with the Orient. The end of
the war may see a practical transfer
Of the worlds financial center to New
York. In trade also II viii be years
bnfore European business settles back
into the former routine and in the
niesn tirnc Americans see great oppor-
tunities FOR increasing their overseas
trade with South Americas
Te-s9or.ry Losses
f~Iatest adviccs are Chat the foreign
market for aatomoBlles. typewfiters
and dried fruits has absolutely disap-
peare'l. There will undoubtedly be
HtaN 'ulb III uOmtbbiC pIlVVo III al VI
these lines.
All textile mills have reduced their
prodnetion. The prediction Is, made,
however. that cotton mills will enlarge
their plhnts ard increase the humber
Of spindles because neutral overseas
markets formerly dependent on Eng
lish. 1etmah and Belgian factories
must now tprn 70 this country for the
supply or manufactured goods This
aevelopment is going 20 have a marked
lnhhepee on the domestic cotton
market. 100 Rzls
/ q All steel industries have been behe.
6ted BY the was. wheat prizes arc
higher aud viii continue high for n
long time to come. This also applies
to meats and all food products. The
coffee market has received serious in,
jury.
Thu scontinued failure of Oeean trans.
portation will continue 20 affect trade
land prices and there viii be mueh dis
turbanee Of business all over the world
Democratic Failure aas
| Mr.. spalding spoke OF the break
down Of the system OF revenue import
taxation inangurated by the Democrat-
&c administration The revenues will
show u tremendous falling OF and this
will have 20 be made up In some other
way. unless the cost OF government
car be curtailed, Pse
TKs reJiscount privilege conferred
on the reserve banks under the new
Currency law is going TO help the ii.
naneial situation very materially.
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uAlMAIlAM,lcs uEIsn E0R