The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1876-06-17

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81 MAOOertiser,
SATURDAY,. LENE Il.

lCommuaiafe5l
In your Issue OF TIE zg1a ult. you published pro
posals for the introduction OF paper currency a.
legal tender and pointed out some Of The advaa-
tages which would accrue 10 planters and others
when 4 law was enacted to bring this system into
force but omitted 70 mention one particular
advantage which would result and that is the
recovery Of ell the money that planters have been
overcharged By their agents in their quarterly
accounts current for compound interest, which
charge Is unlawfnl: for the law laid down in Sec.
1884, Chapter IS. of the Civil Code, reads as fol-
lows:
y action shall be maiGiaigable in any Court Of
this Kingdom to recover compound interest upon
any contract whatever.
There can be no doubt but that planters have
been obliged to submit to this over-charge, as they
were at the mercy OF their agents. who could at
any time close on the plantation were any objec-
tons raised against this over-charge for compound
intere t bur the introduction OF a paper currency
will enable taem TO clear themselves with their
agents, and instead, have the government for their
creditor, whose charge Will be only five per cent.
per annum, simple interest.
The HawaiIans. mo have been the victims Of
Inscriptions and aTaTicioUs usuTeTs ever since
the work Of civilization was commenced on these
islands, and whose property has been alienated
from them year after year until the number pos
sessing kuleauas or other property upon which a
mortgage could be effected, have become very few
indeed IN comparison with what these were IN
former years few, however, as they are, they will
be saved from the clutches of these social vampires.
/ would wish to point out the disadvantages they
have been laboring under heretofore and the ad-
yantages which must accrue to them when this
proposed system is adopted. Hitherto when they
have mortgaged their property TO the class of men
referred to, they have been charged with interest
from IL tn RI and in SDmE instances "A = nnPn az =
per cent. per month the first years interest being
deducted in advance from the amount of the loan,
so that In the event OF their being unable to pay
up the principal at the expiration OF the first year
the money lenders, If they chose, could foreclose
the mortgage and become the owners OF the prop
erty. | would draw the attention of the victims
of these usuriOus money-grabbers to the fact that
all interest at a rate higher than u per cent. per
month, charged on mortgages, is unlawful for the
law laid down in Sec. 1883, Chapter 30, reads thus:
- No action shall be maintainable, in any Court of
this Kingdom, 10 recover a higher rate of interest
than q per cent. per month, upon any contract
made in this Kingdom &c. SO that having the
law to protect them, we would strongly advise all
those HawaiianS who have mortgages bearing a
higher rate of interest than j per cent per month,
to have them annulled, and have fresh ones drawn
out, STIMULATING for the extent of interest only as
provided for according to law.
Under the proposed new system they can, when
they wish to do so, obtain loans from their own
government to the extent OF one-third of the ap-
praised value of either freehold or landed proper
= 80 - ANAAfA otN VI hN~'NSh Va ~ PNA NNhk' PNA
annum oHly. Will not this be far better for the
Hawaiians in every way ? AS matters are now, if
We take the lowest rate OF interest. j. e., ii per
cent. per month on a loan of say $500. it will
amount to S54 per annum, whereas the government
rate will be only S15, thereby giving a difference
in saving on interest Of $50; and not only this,
but should the loan lapse, the property mOrtgaged
will revert 10 government, and | should like to
know who has a better right to it? These kuleanaS
were originally, l believe, the gift of a former
king or government. L would also propose, in
modification of paragraph nine of the proposals,
published in your issue under advertence, that the
government, as a special case, but not as a rule,
assist with loans those who now have property
so as to enable them to effect a transfer
of their property to government, the government
will then become the only creditor; by this means
the interest on their mortgages will be reduced
and they will have a fair chance of ultimately re-
deeming their property.
There is no doubt but that the introduction of a
paper currency will meet with strong opposition
by the few interested, but it is to be hoped that the
government will take such immediate and decided
steps by Introducing a law for carrying into effect
the introduction OF paper currency as legal tender
as will break down all opposition on the part of
agents and money lenders.