The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1914-10-23
They Have Been Piling Up Re-
serves In Defiance Of
Federal Laws
FINANcIERs INcENsED
BECAUSE OF PUBLICITY
Appointments Of Negroes To I'm
portant Positions Annoy Dis
trict Of Columbia Politicians

Secretary McAdoo is in big tnssl'
with the bankers. The latter have been
Ipiling up reserves, beyond the fifteer
per cent requirement Of law. Thi,
means, Of course, that the banks arc
taking the money of their depositor,
but not loaning il out freely to peopl,
in business enterprises. That helps Il
make hard times Evidences have mul
tiplied that some banks have also beer
charging excessive rates Of interest
with the Tightening Of tie money mar.
ket. Secretary MeAdoo has been pro
eceding sternly, He has been writing
banking authorities, setting forth the
situation and undertaking to visit retri
button upon them. Many of the Ma,
tional Banks have government deposits
at a low rate OF interest, These depos.
its are much desired by banks and II
the government calls such deposits IN
the banks suffer. The secretary Is NOV.
ing toward such eallunless the offend
ing banks relent
Bankers Become Incensed
Many bankers wero incensed few
days ago when the secretary made pub
lie list Of banking associations that
had acquired excessive reserves There
were scores of them, but practically all
were in the smaller cities-what is
known at the treasury department as
country banks. The big city banks, as
in Boston, New York, Philadelphia. st.
Louis, Chicago and San Francisco, seem
to be acting in good faith to carry the
country through the present trying
times. Their chief Offensc may be in
charging high rates Of interest, but this
is said TO be due in some part to the
high rates that country banks are
charging on their deposits with the big
city banks. The Federal Reserve
Board is trying very hard to complete
the Organization of the reserve banks
but it will still be two or three weeks
and perhaps longer before those banks
can, be in actual operation. The board
has not vet selected all the government
directors Of those twelve banks These
directors arctic be xe5G important Off
Gals i'm the twelve reserve banks and
there must be gfear teafe in getting
the, right men, i.te
Gold Reserve a Problem
The general anxiety win not cease
till the reserve banks are actually work.
ing, There is arquestionl of gold re;
serve TO be worked out. The various
National Banks now have their own
quota Of gold. The Federal Reserve
Law provided for the gradual eoneeh,
tration of this gold or good portion
Of il, but il was to be worked out in
the course Of about three years. Con.
grcss is attempting an amendment
which would permit the concentration
to be brought about Immediately and
IL is claimed this would help much.
While there is an abundance of gold
in the United States for cnrrcney pur.
poses, it can not do the work required
of gold in a currency consideration at
all efficiently.
Burden Fails Upon Board
SO it is that great burdens are upo,:
the Federal Reserve Board and at tho
very outset problems which had not
been anticipated arc facing them. OBJ.
legations from Europe are pressing for
payment and TO meet these a gold pool
has been formed of several big banks
This is only a makeshift, but ii is ex.
pectcd to afford some relief. As soon
as trade conditions with Europe arc
restored little, gold will be coming
from Europe in payment Of large orders
Of goods and foodstuffs which hay,
been placed here. In a word, when golC
Is the only acceptable medium Of ex
change, there must be a certain supply
of it available for doing business. j
the gold in the banks could be gottel
where it could be used, the supply o
the only acceptable money for the pres
ent in International transactions wouli
be much increased,
Opportunities for Great Service
Secretary McAdoo's opportunities 70
great public service in this connection
are very large, If he succeeds In ear
rying the money situation through sue
cessfully, he will acquire large fam
as member of President Wilson & cab
met. 1t is TO be said that he appear
to be succeeding well. There is littl
criticism Of his policies, except iron
the bankers who are stacking up thei
reserves and refusing loans 10 bushes
men in their communities.
Tumbles for Politicians
u nc IfOuDieS OF DistfitL OF NOlumDl
politicians have multiplied lately by tn
appointment Of negro deputy marsha
from Harrisburg, Pennsylvania. lie oil
feiates in the police court, having ,,
eeired his nomination from the Unite
States marshal for the District of GC
lumba. 10 is a long and sorrowful tai
that the Office seeking residents at th
seat OF government have as adninistri
tons come and go. Outsiders are cor
stantly getting good share Of the dii
timely local Offices here. Some arg
ment exists therefor, even though i
cal people pay d lot of taxes The fec
eral government pays for half the eI
Ipense Of running the local government
All the people have real Interest /
| the city of Washington. But the loci
lfolk battle 50 sturdily for all the plum
that the appointing powers grow awear
and often take some outsider.
Another oolored ohlclal
From custom Of generation an
more the registrar Of deeds for the Dii
trict Of Columbia has beer eolore