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HONOLULU STAR-BULLETIN, SATURDAY, .TAX. 18, 1013. "
I mmMflf NEED OF IMMEDIATE REFORM
I SM?.Iaf&5 A TJ fl I L llll I1P1LUII MMI LP A ft 1 1 1 I Til I . VUV ILRIihv
UW.Mi hi flMuubm nnnHinii oioiui
i . w : v v a-- & j iij h m a u bb ir.fw- m s i i
The Reliable Household Lantern
There . ohsTy. need for . 9.gop(i lantern around
the home in the yard, in the cellar, in the attic
wherever a lamp is inconvenient or unsafe.
The RAYO 13 ideal for home use. It gives a clear, bright
light like sunlight on ta. It is strong, durable, compact, handy.
Doesn't leak. - Doesn't smcks. Easy to light and rctvick. WU1
last for years. .rk for the KAYO.
At Dealer Everywhere.
STANDARD OIL COMPANY
... , . . - - 2n f raiac
Frail 4 igTiENSEV ITU
' as -
,11-. 1 1 11 V LiUUlV U1UL1 1 UUU AUU
11...,-- . . -. .7 .. - V ,. '.' t .- i 1
.Tfc gentleman to twe right of the reader (sketched
sfroixVlife) is "wearing old 'style orpasted qiile-yision, J
lenses. ,iJLCe lines oi me reauing ic4ic iwvwpMjr,r
e prpmirleht and he has difficulty an :adjusting jiis ejes
to trie lenses. The ceinent used tr jpin the twftlenses )
rhasbecome clouded and - has maderhis glasses fHiistyi;
;0 .The two figures to jthe lef t (sketched, froni ilife)
ire wearing Kryptok' double-vision lensesT , There are
no;seam3Jbtt these iglassesr because the readipgjenses
are fused Jnvisibly within .the distance lenses. These
:latterT io. - persons afc at 'ease, look dignified and
. Manuf actnngOf tician
PORT .STREET JUJ1RISQX-, BLOCg. w vw.va
pondont bauks. They have no way of
io-operation. I.ut complete banking
co-op?ra;ion is absolutely necessary to
coiarol ariainK ianics. Other coun
tries have proved this. Our banks
demon st rated it by befne com
pelled in times of stress to fall back
upon their local clearing house associ
ations, the only means 4ut a crude
means of co-oneration thai we have.
By ANDREW CARNEGIE. Tne necessity of cooperation is a fun-
Wo arc suendinc $400 imio.000 rn Wt ihr amount from tnroihnr damentsl banking rtrincinle. It is not
open a prcat new trjule route to the ' with the commission agreed upon to be arfrued against. But aside from
markets of the far tast, and many j when the credit wa opened, and re-!'"' theoretical truth, we hav the ob
gqou 4mericans seem'to feel that the jmits the amount to its London bankers vioos to guide TW. Tjey do not have
moment the Panama canal is opened ! lo meet the draft On all such trans- iaulcs abroad: we do. "
to commerce. we will at once be in a 'actions the London banker. whiJe not' Again, it Is only by co-operation. and
position to command a great share of! himself advancing any money, is ex-fthe' consequent fixing of a uniform
the trade of the Pacific. But unless ! tending a credit for which he charges rate of "discount, to be raised or low-
we speedily relorm our banking svs-lthe New' Tcrk banker a commission. I ered as circumstances demand, that.
tern so that we may be in a position! The result is that we are paying trib- 'e can control the flow of gold to ami
to finance the Panama canal trade a , ute to European bankers amounting to from this country. This is funda-
good part of this four hnndred mil
lions will be wasted.
If we are to have the advantages in
finance enjoyed by our European com
petitors a sweeping revision of our
present banking laws is absolutely nec
essary. Foreign banks, especially
those of London, now finance our for
eign trade, and we pay them rich rib
n te for the service. To show how: Lon
don finances our foreign trade for us
let. me quote from the loreign trade
expert of one of the greatest banks:
"An importer of coffee (A) in New
York purchases a certain! number of
bags of coffee from an ezggjfex.iIU.ia.
Brazil. A agrees to furnish 3 with a
commercial letter of credit. B is not
in 4 position, we will fay, to await the
arrival .of ..the coffee in. New lYork
and the return of a remittance before
receiving his pay. A 6n the other hand
is unable to cemit B for the coffee be?
fore Jts receipt and pale to his custom
ers. A goes to his banker in New York
ancl requests hm' tp authorize r B to
draw upon the Ne?f 'York' binder's
Jjqndorf correspondent at. 'ninety days'
fight Uh bills of lading foj '$pftee to
the' amount of the purchase attached
to the draft, 'consular invoice' and. in
surance certfTlcatef If B Is to furnish
the Insurance.-. - '
financed In London.' ' .
"t A'slbankerja willlng'(,tq;ektencl
the credit; he writes a letter. tofusefe
a sprinted form ) , " requesting' his XJqri
don' banker to acceut B'b draftVhtiori
pre'sentaqon, , under, the ""conditions al:
iwj ieuouea ana oiars oi minor
pqrtane; rw" Utf'Js; listifetify
duplicate, one copy ' gping to the Lpn
dpn tanker,. other being" delivered
to "J Avthen .mailg.tbe copy feceived
ty. im tp BJ. $ thereupon arranges to
shi t,be c))ffee,:oh.taiM'.the'')'b'Iad
lng.nvpiee, etc., and takes them with
tb& popy of .the, crcdH to hl Danker' Iq
If Yoa Suffer from-any- Form f -Neurasthenia
t will supply reconstructive power and regenerative force torrestore
vou to perfect health;, rebuild: both body and mind; infuse rejuvenating ;
energy in ,verjrhpart tjthe nervous system, bring health, strength and
v Persian Nerve Fstence coctaiai no Mercury or other irhifkm drajrs. A single box
bring marked improvement and may cure in sltg-M cases. T
vork iUioic alFCbemtsU tomaiKi ue money h ineinii
bokes is .ukeo and'dOca not cure, Dq not delay longer, buy Persian
he Brown Export Company.
coarse insunrai oi UK'
Nerve Essence to-da
FOR. SALE ATi ALL CHCMI STS
1?' y f
.A draft is then drawn on the
tendon bark; , underthe; jerms : th
yi ) juj a bi(,ui ouu un
counted by , the i Brazilian' banker, the
proems being placed jtQ fhe credit of
B'aaccpnnt' pr : gifpn o hlm'Jn the
f orm;oj;,a check o.f pashl ; ' .- , ' , '
Thjs-Brazil ianj banker then forwards
thedraff and'dQcumetsV excepjt such
documents- as tne instructions may re
qiiaVtq be fprwairded direct, to Niw
Torkv tp'hls'Londob' banker. Ife may
secure "discount of the bjli at pnce ;hx:
cable-or await its arrival in -London
before doing so. or he may request nis
London hanker tp hate the bill accept
edUnff boldtH Jot maturity. If the
t41 "Is, discounted, the Brazilian banker
may draw, against ft Immediately and
thus puV himself In funds to purchase
other r-coffee bills. ' X?pon receipt of
the bill by the London correspondent,
it is presented to the London banker
on. whom it Is drawn for acceptance.4
The acceptor bank examines the doc
uments, and if they are drawn accord-
ing to the terms of the credit,-accepts
the draft and returns It to the cor
respondent of the Brazilian bank, re
tain ing the documents, which it then
forwards to the New York bank which
opened the credit
System of Extending Credit.
' "The London hank: has in effect
agreed to pay It at the end of ninety
days.- Upon maturity payment Is made
and the amount is .charged to. the ac
count of the issuing New York bank.
Upon receipt of the documents, the
New-York bank delivers them to its
customer under a trust receipt or
gainst collateral and the latter is then
in pcitipnvto; obtain the goods.' Ten
days before the bill of exchange is due
j.n immense sum annually ror the pur
pose of financing our imports.
"The fact fhat London exchange is
more marketable generally throughout
the world than New York exchange is
fne of the principal reasons why it is
necasssry for us to issue credit upon
London instead of upon New York."
That our defective banking laws
have been in existence for haif a cen
tury, that they still continue to exist,
are matters of wonderment through
cut the civilized world. Perhaps the
simplest explanation is that our coun
try Is comparatively so new. With tre
mendous natural resources back"ot us,
and with unequaled . enterprise,, we
have gone ahead sweepingly and re
gardlessly. But with all our wasteful
ness, it is doubtful If any one extrava
gance equals inspire results the suc
cessive losses this country has sus
tained from our periodical money pan
ics; Drought -on directly by our panic
breeding hanking system.
American Methods Antiquated.
Our present system was founded 'on
a war debt. It dates back to 1863,
? ben the country f4ced a great'erisis:
be federal treasury was empty; gov
ernment credit waa, gone. The temp
tation to use banking for this purpose
was to great to be resisted. Perhaps
it,1 was excusable then; but in neglect
ing -a revision of this system to meet
modern requirements, what a terrific
price has been paid!
" "Id' framine these bankiner laws'no
Ubp;?&tit was had for the country's
great, development in agriculture, com.
ntrop and industry. No provision
whatsoever was made for foreign
trade. , In fact, the laws forbade the
establishment of American banks
abrcad. "Today, as an instance, Euro
pean banks are firmly established in
South America, and are actively fur
thering nere the interests of Euro
gjeain trade. Practically all the ports
rlatH"Aniierica, large or small, have
in$m. Yet in our own sister continent
you, will not find a single banking in
stitution bearing a North American
'"American banks in foreign markets
would be powerful aids to the upbuild
ingof our commerce; manifestly and
for"iie subjoined reasons are they in
,J6$est:( They would- furnish. a direct
Second. They would provide7 a 'safe'
and efficient means of obtaining credit
information, independent as to foreign
merchants and impartial as to Ameri
can exporters. 1
Third. They would correctly present
to foreign customers the standing of
pup own export houses.
Pcurth. They would furnish capi
tal jor credit at the foreign market
c-Fifth; They would bring American
financial Interests in touch with for
eign enterprises, which, if exploited,
would create business for the Ameri
Volume of Foreign Trade.
Our foreign trade today amounts
yearly to four billion dollars. Ameri
can goods now traverse the world. In
some staples we control the foreign
supply. There are no geographical
barriers to our world markets.
But-what of our banking system? It
is still circumscribed by the boun
daries of the United Stales. We, the
wealthiest country in the world, have
no' world credit We cannot control
our gold supply. We alone of all civ
ilized countries collapse periodically
under money panics.
MOur banking3ystem is unique. Un-
.UkeanyiOtherj country we,thay.e inde-
4 Ji . ".,. - V
If iou knew that yau could secure a single cooking product to take the place of both
lard and butter, with even better results, would you not use it. You can be certain of
that very thing.
Is better than lard for frying, because it cooks the foods so quickly that they are
cihp and deliciously dry.
"v ; is better than lard for shortening because, being strictly vegetable, it makes a
'much better and more, digestible crust than possibly can be secured with animal fat.
Is better than butter for cake making because it is richer. Butter is nearly one
fifth water while CRISUO is all shortening.
Yet CR1SCO costs less per pound than lard, and only half as much as butter.
From every standpoint, CRISCO should be your preferred cobkhur product and
lard iiid butter the substitutes. It will be if you try it.
GET A PACKAGE FROM. YOUR GROCER TODAY
mental to international credit. It is
also a" banking principle.
No Broad Discount Market
A second striking" peculiarity of aur
banking system Is that we have no
broad discount market such as they
hate In Europe. J)ur banks, are for
bidden by law to accept business bills
for discount Instead they take, for
instance, the business man's promis
sory note. In other words, a merchant
in this country who haPsoId a bill of
goods and wishes to realize at once on
the sale cannot change this prime evi
dence of exchange Into a credit ; In
strument. He gets credit at his bank
cn his "promise to pay." But this iat
ter instrument, showing ho transaction
to goods, is confined to the one bank
that takes it The maker's ability to
pay is unknown to 'other' hanks. So
this kind of a credit instrument . has
no circulation1 powers whatever.'.". .
lh Europe, on the contrary, the busi
ness bill becomes to Itself a credit In
strument' " The ; bank' 'accepting ' It
stamps it as a banking instrument, It
Is good at any other; bank In that coun
try, It may be redlscounted at the 'een:
tral bank of all these banks, or It may
travel ' to other European countries.!
Tfpw, aside from the' ready elasticity
of crejdit that such a discount and re
discount marlct gives . to business at
home," it must be apparent that it has
also a direct effect npon foreign trade.
Today our ..local credit instruments do
not pass current in the world 'mar
kets.' As consequence tbe American
shipper is forced to buy foreign ex
change. ; Aside from the fact that for
this unnecessary accommodation we
pay annual tribute to Europe of mil
lions of dollars, it must be apparent
that the whole period of our foreign
trade expansion " has been seriously
hampered by "hanking accommodations
Which are necessarily worked upon a
limited scale and which, assuredly
have no reference to the broader needs
of this country. .
The general and further result of the
workings of our discredited monetary
system, is the isolation in a measure of
the whole American' market
International enterprises prefer to
establish their headquarters in coun
tries whose banking systems are upon
a" more stable basis. They 'cannot a
fpfTl the risks of such: occurrences as
our; disgraceful panic:. pflfltfr, wltlf's'
suspensions jof.taymenC shortages ot
accommbdation: and general financial
disturbance. Again,, because we; have
ho uniform system or standard for fi
nancial transactions, such as exists
abroad. American securities are natur
ally looked upon with doubt by for
eign investors and are listed only with
hesitation by foreign exchanges, :
Our national monetary commission
recently presented a plan of reform.
The object Is not only to preserve the
Independence and usefulness of our ex
cellent banks, but also to give them
a system based upon economic laws
ands the needs of. the nation. The
plan proposes the formation of a re
serve agency, not in any way a Euro
pean central bank, but a co-operative
association of all our banks. The
banks individually shall he permitted
lo discount bills drawn for agricultur
al, commercial and industrial purposes
In other words, prime, day-to-day
busipess bills just as is now done in
Europe. The reserve agency will hold
the bank reserves of all the banks and
fuse them for the rediscount for the In
dividual banks of this commercial pa-,
per. This instead of holding this re
serve money idle or sending it to New
York for speculative loans, as at pres
ent. Here, then, we have what we now
lack -namely, (1) perfect elasticity of
credit, (2) standard banking instru
ments which will pass current through
out the world, and (3) a great united
banking resource held ready and suf
ficient , to control and regulate any
threatened financial crisis.
Benefits of Suggested Reform.
The benefits of this reform to the
American shipper must be apparent.
In the first place he would be spared
the losses of our recurrent money-panics.
I do not know what percentage
of the hundreds of millions lost by
American business houses .in the pan
ic of 1907 fell upon the export and im
port trade, but in the aggregate they
must have been very great. Every
shipper will recall clearly enough his
individual losses, and he is cognizant,
too, of the dull market that followed
for several years this financial upheaval.
Secondly a standardized business
paper would give to the American
merchant the very same banking ac
commodations he now seeks abroad.
In selling goods, for instance, to a
buyer in Buenos Aires, he would draw
at a specified number of days upon his
correspondent in that city. He could
have his draft discounted at his home
bank, assuming obligation for the
amount of the loan only in case of de
iault by the buyer in IKienos Aires.
This loan being necessarily of longer
period than ordinary commercial loans,
the merchant's bank need not bear the
.burden of protracted credit, but cn
have the paper rediscounted at the re
serve association of which it is a mem
ber. Thus the bank may keep its
credit resources open to other mer
chants at all times.
New Class of Banks. ,
In addition the plan ermits a new
class of banks, which will in effect be
highly specialized institutions to fi
nance foreign trade. Their function
will be similar to those of the char
tered banks of Great Hritain which
are intended to carry on banking op-
fr nfa nts. and. Chiidron w
CASTOXZIAr has met with prtnwxnced favor era I ta part of physician.
i : 1 J r " !. ... tiiJi s t. . i :i '
with result most gratifying. The extend mIusq of Castoria is uaquaationablj U
result of three facts : 1st, The disputable errdnr thai iVU;barmle3 j 2a t
That it not only allays stomach paias and rowts -th Berris bbt assimilate tt
food ; 3rd It is an agreeable and perfect substitute for ea&tor oO. It Is ahsolutel,
safe. It does not contain any opium, morphine, or other narcotic and does bc
stupefy. It is unlike Soothing SjrupsBatemasfs props, Godfrey Cordial, et:
This is a good deal for a medical journal to say; Oar duty, however, 1 to expos'
danger and record the means of advancing health. The day tor poisonrag innJ
cent children throughreed or ignorance ought to end.' To pwr knowledge. Cat
aystem not by stupefying itand our readers art entitled, to ths laf orma. 1.H
Bait found of Beaith. . " v ' 1 " .
y T? yr z f ir. cnarmotce ' srtnnlac
lenatnre of vsfuxV Wa ' ' Castprl
"ToorCastoria stands Irst la Irs eiaa, la my
thirty years of Msctica I can say I mm aava f ooad
pyUUsg UUt so filled tb placs." '
Wnxua Bauroar, V. IX, .
; . Claela&4, OWp.
I bar sssd yocr Castorlaia tks case a vytnrt
baby aa4 8a4 tt pleaaa&t to taka, aad Uv Obtataad
sxcaltaatiasaltt tnm Us aaa. ' ' " 't
y Y..r, .ytcadeltfus, Pa.
. " ; u t if
itrnit facommendad its taste many loataaces, and
sooshfet U'Uia tasf taxattta t&at COBid U Qsed,
? SUtsjjinn. K. EntSt 3L IX, W. Lola,lIo.
J'iN nsri rn( 6astoria and f ond tt a
axctTirat imy lay booataold aa4 prtra'
pracUcafvnaoy yaars. THloma!aIasxeaUaati
IL J. Tarr, If. -
m Jm. 1 1 . .
! 14 n Ci. to ba a atandmrd fasal
raaKdy. alt fev'Ua tast fkUif toe UfaaU aad c'
' JJlAvtes otuiax tJt pas fix ytaM frcriba4 jo
Cattori for iBfaatUa stomara d-aorJert, I sx
hcartfly eoeu&eocl ha bm. , Tl forao' eoatal-
Bat!ng dektftrtotts to Btost lct; Of tkUdranJ
Chit dro ii;.Cry'fo r It loto
V, . IX &XIOTT, H. XX, Saw Tcrk C.
t :vaf.-ss;.- -y.4Wartv4-i VCrt;
i Just Received and to be ttt 'atyvi j"! . ,
: WEILL'S- -WCaHCHCJ
, i 135 Merchant strett : ;
I f;;, flji '.'
Light ing Portable
For Private House or Contractor's Work Outside Lighting. Xapabts
of supplying twenty 16-candlepower lights! ' INSPECTION INVITED.
erations In the orient and generally in
the British foreign jKsessions! They
facilitate transactions between Eng
lish exporters and importers and the
merchants and producers in the coun
tries with which trade is carried orr.
These banks accomplish a distinct ser
vice in adjusting credit instruments
to the peculiarities of traie and lend
ing obtaining in the far cast.
In all its many broad aspects this
matter of monetary reform is a great
and vital issue. In its immediate re!a
tion to the individual it transcends ki
importance any issue now before the
people of the I'nited States. It is
above partisanship. It should not be
delayed by anything save a thorough
?.nd earnest debate in Congress. With
the enactment of suitable legislation a
new and great era of solid progres?
will be inaugurated in this country.
AUDIT COMPANY OH
924 BETHEL STREET
! P. O. Box 648
Cnnntinni nivn for i mfTln
v-j,3w...v., ... r'W
cr systematizing office work Aft
Pheto-EngrsTfiig of highest grade
ear be secured from the Star-Bnlktla
Conducts all classes of Audits an
Investigations, and furnishes Report?
on -ail kinds of financial work.