The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1886-09-01

semi-annually at the rate of six per-
cent per annum, and shall be re-
deemable not less than ten nor more
than thirty years after the date of
their issue, the principal and inter-
est to he paid in gold coin of the
United States of the present stan
dard or its equivalent.
Minister Gibson moved the Sec
ton pass.
Rep. Dole moved that the word
"ten" be changed to ''fve," and
the word "thirty" read twenty"
Agreed to.
Noble Bush moved that after the
words cat the rate Of be inserted
"not more than" Agreed to.
Rep Brown moved to strike out
the words ''of the present standard"
Agreed to.
The section then passed as
Section 3. Said bonds shall be
signed by the Minister of Finance
and by the Registrar of Public Ac-
counts, and sealed by the seal of
the Department of the Minister of
Finance, and shall not be issued at
less than their nominal par value in
gold coin of the United States of
the present standard, except that
the Minister of Finace, with the APP
proval of the King in Cabinet Coun-
Gil, may allow commission not ex-
ceeding five per centum to any per-
sou or syndicate which may negoti-
ate said bonds; provided, that such
commission shall not be allowed for
any bonds substituted for bonds
issued under the Act entitled can
Act to authorize a national loan and
to define to what uses such loan
shall be devoted" approved the
9th day of August, A. ID. 1882.
Noble Cleghorn moved to insert
after the words 'United States" the
words, cor it's equivalent" and to
strike out the remainder of the Sec
ton from that point.
Minister Gibson moved the
section be amended by strik-
ing out from the word "provided"
TO the end.
Rep. Dole favored the Hon. Mr..
Cleghorn's amendment, but opposed
that offered by His Excellency Mr..
Gibson, as it struck out the respect
able part of the section. 1t was an
entirely new thing for this Govern
ment to pay commission for nego-
tiating bonds, and also to have
financial agents. They had better
enact law as they want it, for in
six months there might be a change
of Cabinet. AS an illustration, the
Ministers, had changed their minds
twice about loan. There was no
need of their paying 100000 for
the negotiation of loan of So, 000,-
600. They should not borrow
money if they had to pay commits
sion. They had heard that great
deal of money had been sent out of
the country for Investment. About
$4,000 of this loan would be taken
up by people of small means. The
amount of confidence in the Govern
ment might affect the rapidity with
which this loan would be taken up.
There is money here in Honolulu.
The bill provides for expenditures
less than $l,O0O,OOO. They did
not want to see any money thrown
into the hands of favorites. He ex-
pected the Minister of Finance to
negotiate loans; that is what he is
paid for. There was no reason for
their paying out one per cent for
commission.
Noble Cleghorn said that New
South Wales negotiated large loan
at 3! per cent and sold their bonds
at 90 and 81. The per cent bonds
of New Zealand are quoted at 103
and the 4 per cent at SO. He
thought if they paid 6 per cent, they
certainly should not pay any COM
mission. 1t looked like source of
weakness instead of strength for
such thing. When the Govern
ment shows its measures there will
be no difficulty. In putting in this
5 per cent commission, it is for
some one to get hold of it.
His EXcellency Mr.. Gibson said
that if these bonds were placed in
the domestic market there would
not be need of any commission.
But that may not be the case, and
so there should he some provision
for commission at the discretion of
the Minister of Finance to borrow
in foreign market. After lapse
Of. two or three months, if the loan
was taken up readily, there would
be no need to borrow from abroad.
He would present the following
schedule -
To recall and cancel all
bonds bearing Z and
| percent interest issued
under any Act of the
Legislature prior to the
date of this loan, and to
pay interest on the same $500, 900
encouragement of immigra-
ton. .............. 10000
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