The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1886-12-18
Ths daila 8nlletin
SATURDAY. DEC. Is, 1886.
THE HAWAIIAN RIDDLE,

Kingdom of Hawaii is matter to
which the United States cannot
afford TO be Indifferent. When the
Legislature met on the 31st March
last, the Minister of Finance report
ed that the public debt, which had
been SS9S,800 on the 3lst March,
1884, had increased to S1,065, 800
on the 31st March, 1886. There is
reason to believe that this statement
was not absolutely correct, and that
it did not take into account a num-
Der of open accounts for which the
royal Treasury was liable. 1t is
stated on good authority that the
debt is nearer 81, 100000 than
S1,O65, 600. A considerable por-
ton of this, represented by notes of
hand and bonds, bears 8 per cent
interest. On top of this, the Legis-
lature authorized a two million loan
to be negotiated in England, to be
secured by pledge of the revenues
of the Hawaiian Kingdom. When
the Act authorizing this loan was
passed, holders of overdue bonds
and notes of the Government pre-
sented them to the Treasury for
payment. They were told there
were no assets available for the pur-
pose, and it was intimated that as to
the bonds, the present Government,
which has just taken Office, was con-
sidering the propriety of denying
their legality, on the ground that
the Administration which had issued
them had exceeded its powers.
Meanwhile an agent had gone to
England TO try and float the new
| loan.
A serious complication may grow
| out of these circumstances. The
public revenues of the islands will
probably fall short of the appropria-
tons by not less than S1,250,000 in
the biennial period of lSS6-1SSS.
1t seems hardly possible that Ha-
wall can meet the interest Oh the
new bonds, if they are negotiated.
If the bonds are sold to Englishmen
and default is made in the payment
of coupons, pressure will be brought
to bear on the British Government
to interfere on behalf of the credi-
tors. If at that time the Govern
ment of Great Britain happens to be
in prudent hands, the application
will be fruitless, for no wise minis
ter would wantonly take step
which would strain our relations
with England to a swapping point.
But if the Jingoes should chance tc
be in power at the time, it is posi-
bic that some such lightweight
statesman as Randolph Churchill
might try to divert attention from
domestic troubles by getting up q
furry with this country over q
British annexation of the islands.
The worst of these cases is that
no one can foresee what incidents
may occur to aggravate them. News
that an English man-of-war had
sailed to Hawaii, and demanded
payment of certain coupons under .
threat of occupying one or more OF
the islands, would lead to such an
explosion of fury in this country
that it might be difficult to prevent
the departure of tilibustering expe-
ditions. Thus the two nations might
be set by the ears through the rash.
ness of ambitious officers or ire.
sponsible adventures. 1t is unfor'
tunate that the Kingdom of Hawai-
should, at this crisis, be on its las
legs-tinancialIy, politically ant
morally. Any day we may hear o
4 revolution and of the overthrow Of
the King. Twice during the las
session of the Legislature his Min
istry resigned, and one after an
other all his white friends and coun
sellers seem TO have deserted him
An early revolution would of cours
be fatal to any financial negotiation
in London. But if the bonds wer
negotiated first, and the revolutio
came afterwards, there might b
some apparent excuse for foreign in
PREVENTION on the ground that it wa
required in the interests of peace
order and civilization.
Perhaps it might be worth tn
while of Secretary Bayard to ca
the attention of Minister Phelps t
the case. 1t is out of the power {
an English ministry to prever
Englishmen from investing the
money as they see fit. But an al
thoritative declaration from the Br
fish Government that under no eli
cumstances would it interfere
collect debts due to Englishmen b
the Hawaiian Government would /.
any rate be an indication of propt
regard for American feelings an
American rights. And simultan
ously, it might not be out of IL
way for Mr.. Cleveland's Admin
tration to begin to consider VIII;
policy they would pursue if such
thing should occur as the collap'
of the Hawaiian Kingdom, rs,