Honolulu Republican, Volume IV, Number 500, 18 Ianuali 1902 — BANKS AND BANKING METHODS IN HAWAII [ARTICLE]

BANKS AND BANKING METHODS IN HAWAII

From the Annual Report of Comptroller of the Carrency, Dec. 2. I!**'l-1 WASH IMG TON. D C.. Jan 3 —ln formation relating t banka an'! banking institutions in Hawaii has been secured from two sources—first, from -’atetnents transmstted directly to th* office by a cumber of banks and ■.tanking companies doing business In the Territory, and. second, from re- 1 turns obtained by Mr. A. R. Serven. representing this office in an official ' capacity at Hawaii, while on a visit to the i-lands during the pan season. Reports from both sources show the c-jl’-tence of banks with banking rap ital as follow.-; Bank of Hawaii, capital !►;<«i.OOO. surplus and undivid- < : profl’- sl' dej> -its $1,250.First American Savings and Trust Company of Hawaii, capital J2.V*. i"**'. deposits about ? J ».•*•*<■»; First National Bank of Hawaii, capital $5"0.000; surplus and undivided I roflts. 144.&05; deposits. s74l.2*»*i; . Claus Sprockets a- Co., capital 150*).- j 000. deposit- s*k9.7"*>; Bishop Co.. (apital IS'hi.OOO; Hawaii Trust and investin' nt Company. Ail of these 1. and banking firms are located at Honolulu. There is also in ope-a Sion at this point branches of the Vominima Specie Hank and tne Kej Hin Bank. Limited, of Tokyo. In addition to trausai ting general business, selling exchange. etc., the banks generally allow interest on deposits At Hilo, the second lowa of importance in the islands, there is in operation the First Bank of Hilo, with capital of s2<>o.o<Mt and deposits •f sloo.oo*l. At Wailuku there has recently been organized the First National Bank of Wailuku. with capital of $25,000. , Si veral of the more important plan tafio.i agents have hanking departments in connection with their other .’•ranches of business and aid the planters very materially by advancing funds for the production and marketing of crops. The demand for money is apparently steady, as the moving of the large sugar crop, which is practically the only crop, is -ii progre-s the entire twelve months. The deposits in all of the banks .-re approximately $3,500,000. while the actual cash in circulation, includ-i ;ng Hawaiian silver coinage amounting to $1,000,000. will probably not exceed $2,000,000. The Hawaiian sil 1 v **r coinage was minted at San Fran ! cisco in 1883 and 1884. during the reign of Kalakaua. These coins, in denominations of dollars, halves, quarters, and dimes, have the same intrinsic value as I'nited States silt er. During the past three or four years new enterprises, capitalized at almtit $75,000,000, have been launched without sufficient money in circulation to properly float them; consequently at i the present time there is a great demand for more capital, and loans can be readily made at 7. 8 and 0 per cent interest on what are considered gilt edged securities, that is. stocks, etc., of the sugar industries. Section *1 of the act of Congress approved May 30, 15»0O. entitled An :n t to provide a government for the 1 erriiory of Hawaii." provides "that the laws of Hawaii, not consistent with the laws of th" United Slates or the provisions of this act. shall continue in force, subject to repeal or amendment by the legislature of Ha waij or the Congress oTtlm United States." ami section 53 of the act provides, among other things, that the !• gislatur© "may by general act permit persons to associate them-! st Iv»*.- together as liodies corporate J,,r * * * conducting the business of insurance, savings banks, hanks of discount and deposit (but not of issue), loan, trust, and guaranty as sociations." The laws of Hawaii not repealed and relating to banking are roproiced in the appendix to this report