Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-12-23
Banks in Strong Position.

Banks In Strong Position.
While the agricultural, industrial,
mercantile and transportation out
looks are each promising, the same
is to be said of the financial outlook.
Our banking institutions are in ex.
ceptiQnally good position. The new
reserve system works smoothly and
has vastly increased the supply of
credit. So, too, has the tremendous
influx of gold, amounting to about
100000, 900 so far this year. There
has been an amazing expansion OF
credit, as is strikingly shown by the
loans of New York banks, many of
the larger institutions in New York
per cent in about year. One con-
Germ alone has deposits OF over $780,
900, 900, or double the deposits of a
year ago, and several others are car
rying deposits of over 100000,
5000 100000 and 100000, 900. This
growth of deposits is, of course, large
ly due to the expansion in loans which
have in turn been greatly augmented
by operations connected with the An
glo-French loan and other important
international issues, not to mention
the extensive credits granted to sew
eral of the European belligerents. In
spite of these extraordinary opera
tions, the money market continues
abundantly supplied with funds at
easy rates. The stimulus of these con-
ditions should not be overlooked. We
are already in a period of imitation,
and this has much to do with the pre-
vailing rise in values and the activity
which that tendency inevitably pro-
notes. Conservative bankers are
alive to the dangers which the none
tary situation invites.
January dividend payments promise
to be larger than usual as result of
trade revival at home and the effect
of war profits. Al year ago the Janu-
airy dividend and interest payments
recorded amounted to about $240, 000,-
900, or $15,000,000 below the previous
year This loss will be more than
made good next January for the rea-
son that many dividends will be re-.
stored to their former level, new
dividends will be started, some have
been resumed which had entirely
stopped, other regular dividends will
be increased or extra ones paid, while
not few cumulative dividends tenn
porarily passed will be paid off. 1t is
safe to say the January disbursements
will be more satisfactory than any
since the depression which is now
rapidly disappearing began = Henry
Clews' financial letter.
Exchange and War Prospects.
1t would be easy to argue that too
much Significance is being attached
to the decline in German exchange as
an indication of Germany's position af-
ter the war, but, it cannot reasonably
be argued that the fall in marks in
the face of a rise in francs and ster-
ling has no bearing on the markets
belief regarding the effect of the eco
nomic and financial pressure to which
the war is subjecting Germany. If.
there are those in Germany who still
count on an indemnity from her van
pushed foes which will set all things
right IN Germany economically and
their expectation evidently
Is not shared by those who buy and
sell exchange. The fall in the value
Of marks is the more striking in view
Of the fact that it has been taking
Place in the face of very substantial
rise in English and French exchange.
Last summer, when, at one time, the
pound sterling was worth only $3.50,
1 marks was worth something over
so cents. Today the pound sterling
is worth SAT-, while marks is worth
only about IS cents. Improvement in
sterling contrasts with impairment of
German exchange, and that despite
the fact that the recent war news
has called forth rejoicing in Germany
and leaves tho task nF Garn1apy'c aba