The Hawaiian gazette., 1874-07-01
The Proposed Loan Bill.


The Proposed Loan Bill.
Below we insert the bill to authorize the nego
taton of loan, introduced into the Assembly
last week, by the Hon. Mr. Kipi of Hilo. 1t had
been given out, prior to its publication, that this
bill was intended solely to legalze the borrowing
of money to aid sugar plantations and other in
dustria enterprises designed to deyelope the re.
sources Of the kingdom. This feature, so far as
the bill may possess it, we heartily endorse; as
we consider it the first duty of every government
more especially one having a sparse popula.
ton and limited capital like ours-to do all
in its power to cherish every industry and to
open the avenues through which produce and
manufactures may reach their market. National
aid may also be wisely invoked to assist private
industries though this is liable to serious abuse
through favoritism. Still, there are private en-
terprises which governments may properly assist,
and for these, especially pioneer efforts to de-
velope new industries, national aid should be ex-
tended.
The bill before US appears to have been origin
ated with this laudable idea, but has been tam
pered with till it embraces not only loan for
our great industries, but various other features,
which must destroy its value, and render it i'm
practicable, if not dangerous. To understand it,
let the reader carefully peruse Its seven sections
AN ACT
To authorize National Loan, and to define to what
uses such Loan shall be devoted.
b Il enacted By Tie hing and t1e Legislative ASssHby
Of The Hdto1iidE LsIIldS in tie Legislature OF tie
hisgd0W assembled;
SEC l. That His Majesty the King is hereby au-
thorized to borrow, on the credit of the Hawaiian
Government within six years after the passage Of this
act, sum not exceeding million Of dollars, SO
much thereof as may be deemed desirable for the
purposes in this act hereafter set forth for which His
Majesty may TO be issued Coupon Bonds, Reg
istered Bonds Treasury Notes in such portions of
each as he may deem advisable. The Bonds TO bear
interest to exceed six per cent per anuum paya-
bic semi annually; redecmabe in not less than ten
than twenty years.
SEC >. And be II further enacted, That Stock shall
be issued for the amount borrowed, bearing inter
at six per cent Der annum and the Minister OF
Finance is hereby authorized, with the Of His
Majesty the King 20 cause to be prepared Certificates
Of Stock, to be issued, which shall be signed by the
Minister Of Finance and countersigned by the Regis
Of Public Accounts, and sealed with the Seal of
the Treasury Department; and made payable to the
parties lending the money, represented by such Ger
tihcates, or their assguces which Certificates may
be transferred the books Of the Treasury, under
such regulations the Minister Of Finance may cstab
lish. Provided always, that when the Coupons for
the payment Of interest shall be attached any Cerif
cate to which such coupons may be attached, may be
assigned and transferred, by delivery Of the same,
without being transferred the books Of the Treas
ury. And the Minister Of Finance may also ISSUE in
exchange for coin, part Of this Loan payment
for salaries other dues from the Hawaiian Govern
mcnt, Treasury Notes, payable in FIVE years from the
date thereof, of denomination not less than fifty
dollars bearing interest at four per per anuum
provided, that the Treasury Notes Of this description
thus issued shall not exceed in the aggregate at any
time, hundred thousand dollars. And the Minis
ter of Finance may likewise issue, part Of this
oan in exchange for COIN OF salaries, other dues
Of Government Treasury Notes Of any denomination
less than fifty dollars bearing no interest and payable
to bearer on demand provided, that the amount Of
Notes issued shall not exceed in the aggregate at
any time, seventy thousand dollars and provided al
WAYS that no person shall be compelled 10 take such
Notes in payment for salary, or other dues, if he
should be unwilling so to do. And the faith Of the
Hawaiian Government is hereby pledged for the due
payment Of the interest and the redemption Of the
principal Of the Stock and Treasury Notes
SEC. 3. And be it further enacted, That the Treas
ury Notes authorized by the preceding Section, TO be
issued, may, when they shall be returned into the
Treasury, be ressued, others substituted for them
any time during the entire period of twenty years
for which this loan is authorized provided always
that all such Notes shall be ultimately payable within
the aforesaid term Of twenty years.
SEC. 4. And be it further enacted, That the Minis.
ter Of Finance is authorized to pay Of any moneys
in the Treasury not otherwise appropriated such sums
may be necessary for the preparing of Certificates
Of Stock and Treasury Notes and for negotiating
accomplishing the loan authorized by this act pro-
vided always, that when the loan shall have been ac-
complished, the expenses aforesaid shall be charged
to the account Of said loan.
SEC. 5. Aud be it further enacted. That the Minis
ter Of Finance may negotiate the loan authorized by
this act or any portion Of it. in any foreign country,
if shall most advantageous so to do and in
such case be may make the principal and interest pay
able at any designated place in any foreign country
and he is hereby authorized to appoint such agent or
agents, as he may deem necessary for negotiating
such loan under his instructions, paying the inter-
est thereon, and to fix the compensation Of such
agents, and to prescribe all such rules. regulations
and modes regarding the negotiation Of the loan and
its transmission to this country he may deem ne
cessary. And the Minister Of Finance is further au-
thorzed dispose othe Bonds by this act authorized
at such rates may be deemed by him for the public
advantage.
SEC. g. And be it further enacted, That whereas
the loan by this act authorized is intended for the as
sstance Of the Agricultural and other productive in
terests Of the country,-therefore, whatsoever the
said loan shall be accomplished, in whole or in part
His Majesys Cabinet, and Committee of three per-
from the Privy Council Of State shall consti-
tute Board, with full power to lend any portion
Of the same on PromissOry Notes secured BY mort
gage on real estate, the produce Of the SOIL
or manufactures Of this country provided always.
that the advances made on produce or manufactured
goods shall exceed one-half Of the market value
thereof at the time such advance may be made And
the Board, by this Section constituted shall have full
power to make such conditions regarding insurance
rate Of interest time and place of payment Of inter
est, other conditions to secure the repayment Of
the sums so advanced, may appear them advisa-
he.
SEC. Z. Be it further enacted, That such portion of
the money realized from the loan by this Act author
lied, may by the Board authorized by the 9th Sec
ton, be deemed advisable, may be devoted to the
building Of warehouses for the reception Of produce
aud for the promotion Of Steam Navigation between
the islands, and the aid Of Immigration. Aud the |
securities received by the Government as in the 9th
Section set forth, well as the money whether prn-
eipal, or interest, derived from the same shall be
preserved intact fund Wherewith to pay the Bonds
given for the loan, and shall be used no other pur
pose whatsoever.
The first section of the proposed law provides
for borrowing not over one million dollars, for
which Coupon Bonds, Registered Bonds, or
Treasury NoieS, may be issued in such por-
lions Of each" as may be deemed advisable, bear
ing not over six per cent interest. and redeem
able in ten to twenty years