Did a difficult sea voyage give Hawaii its first bank and largest private estate?

During the 1840s and 1850s, Honolulu was a major port for supplies to whalers. Without a bank in town, traders turned to general merchandise stores, but they were not really adequate.

Local businessmen Charles Reed Bishop and William Aldrich seized this opportunity and opened the Bank of Bishop & Co. 153 years ago this week, Aug. 17, 1858. They set up shop near Honolulu’s waterfront, on Merchant Street. The deposits at the end of their first day in business were a respectable $4,784 (about $120,000 in today’s dollars).

Bishop had come to Hawaii 12 years earlier. The New York native sailed for Oregon in 1846 when he was 24 years old. During the trip around South America, the ship was damaged in rough seas. When the ship made an extended stopover in Hawaii for repairs, Bishop was so thankful to be back on land that he decided to stay. This seemingly small detail in the history of the world was destined to change the face of Hawaii forever.

Not only did Bishop found Hawaii’s first bank, he met and fell in love with a princess. Bernice Pauahi Paki was just 16 years old and Bishop was 26 when they met. Her parents wanted Bernice to marry Prince Lot Kapuaiwa, who became Kamehameha V, but she loved Bishop.

In 1850, despite their objections, the couple married in the home of Amos and Juliette Cooke at Royal School on the palace grounds. Only six attended the wedding. Pauahi and Bishop had 34 wonderful years together. When she died in 1884, Pauahi left 434,300 acres of land in trust for the education of children of Hawaii. Though rich in land, her estate was cash poor. It was Bishop’s money and management that established the Kamehameha Schools in 1887.

Today, First Hawaiian Bank is the second-oldest bank west of the Rockies. It has assets of more than $15 billion. Kamehameha Schools has assets of more than $9 billion. All because of an arduous sea voyage.

Bob Sigall, author of "The Companies We Keep" books, looks through his collection of old photos to tell stories each Friday of Hawaii people, places and companies. Email him at Sigall@Yahoo.com.