The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1884-06-05


his proportion of the debts, and it
may be that only a few of the Stock |
holders would turn out to be solvent |
so that the creditors would suffer |
to the extent of the deficiency occa-
stoned by the insolvent shareholders.
SEC. 6. d-This subsection gives
unlimited borrowing powers.
c-By this subsection the Cor
poration may lend any monies de-
posted or borrowed without any
security whatever.
g--It is not within the scope of
ordinary banking companies, who
ought not to hold the securities
mentioned, except as for security
for advances. This subsection as
drawn, would cover the right to
speculate in stocks &c.
.j-r-These subsections empower the
Corporation to carry on every busi-
ness whether wholesale or retail, to
carry OH the coasting trade, to
purchase franchises for railway, &C.,
and to run and manage the same,
and generally to carry on business
in all parts of the Kingdom, to act
as Trustee, &c. for any person or
estate, and by Section Ia it is pro-
vided that the Corporation pay in
lieu of all taxes, imports, and
licenses (expect taxes in real estate)
one per cent upon the average annual
amount of circulating notes delivered
to it.
The Corporation thereby escapes
the Bankers license, all wholesale,
retail, and spirit license, ali coasting
licenses and taxes upon personal
property.
And by the same Section IL, the
money received by the Government
for the authorized tax is to be APP
piled, not for the general purpose of
the Government, but towards the
costs of dies, plates, and printing
the notes to be issued by the Cor
poration, so that it may be the case
that no revenue whatever would he
derived from the tax.
SEC. S-The circulating notes to
be issued under this section are to be
equal in amount to the par U0lue of
| the bonds deposited.
| If these bonds are payable in U. S.
gold coin, then it is my opinion,
following the decision of the Sup
RENE Court, these notes should be
payable in U. S. gold, but by Section
! 10 this construction does not appear
to be contemplated, as customs
duties are not to be paid by these
notes, neither principal or interest of
the public debt.
| The Act seems to contemplate the
right of the corporation to reissue
it's notes, although no express pro.
vision is made for that purpose.
| SEC. 1S-Is in constravention OF
the existing laws which are not eN-
pressly repealed, and as it is not i'm
perative on the Minister of Finance
to take security for public money
deposited, the corporation may have
the use of the government funds
and my issue it's own notes in pay.
ment of government debts, which
notes can only be realized in case Of
default in payment, by the proceeds
of the bonds deposited as security
which sale may be delayed for nine
months after default, and the bond:
cannot then be sold under par.
And this time and procedure ma,
be extended by legal proceedings.
The bill contains no provision for {
register of the stockholders, for in
spection nor of the publication of any
statement of its assets and liabilities
The corporation is perpetual an(
the amount of property, real anC
personal, which it may own at any
one time is not limited, as is neces
sary in ordinary corporations form
ed by charter, and there is no re
straintup the amount of debts il
may incur or owe at any one time
as is also required in ordinary cor
porations.