The daily herald. [volume] (Honolulu, Hawaiian Islands) 1886-1887, 1886-12-29

clfic property, or in fact such a one as
is mentioned IN the Adaeyfise,, was
ever signed or deposited in the Bank Of
England, or for that matter anywhere
or with any one-this I know for
fact.
/ have also information that a bond
was executed, presumably with the
sanction of the King in Cabinet
Council, as security to these subscribers
to the loan, who paid in their money
before the bonds we're ready to be
issued, until they received their bonds.
This money was to be and has been
telegraphed to pay Mr.. Spreckels, but
the preliminary bond makes no men,
ton of any general or specific pledge
or charge upon anything, nor has it
been deposited in the Bank of Eng
land.
/ can state to you positively that the
syndicate who negotiated the loan did
not insist upon such bond, or any
bond as special security before it would
touch the loan. As understand the
matter the Hawaiian Government in
tended to pay Mr.. Spreckels in full all
it owed him, and for that purpose the
funds were to be at hand before the
bonds could even be printed. That
money and all money paid in without a
contemporaneous delivery of the Ha-
waian bonds, was to be secured by
the bond and nothing more; nor was
it ever intended to be first mortgage,
or any mortgage upon any Govern
ment property.
II the AdSsrtisey holds any bonds, or
its clients or owners do, they will get
their money on Presentation. / read,
and it certainly was industriously
spread in all the purchasable columns
of the San Francisco press, that the
Hawaiian Government was bankrupt,
etc, and that certain bonds of the issue
under the Act of 1882 were offered for
sale at ten per cent discount Why is
not the offer made now? The money
is there to call them in. | do n :
know that the Hawaiian Government
has a right to force their surrender
against payment at par, but l hope it
has the right and will take steps to ex-
act it.
The act does not make a specific
pledge Of anything belonging to the
Government excepting that the pay
ment of the interest Of the national
debt is chargeable upon the revenue of
the nation. So are salaries chargeable
upon that source. SO are expenditures
for other legitimate purposes charge.
able; from what other source are these
payments to be madc1 1t strikes me
that this provision is the exact reverse
of specific pledge or mortgage.
The amendment proposed by Mr..
Dare, on the contrary, foreshadows the
grip of foreclosure upon the productive
property Of the Government, and would
certainly have led to its loss, if the
Government had at any time, or from
any cause, disaster or otherwise, needed
more than the 100000 reserved for
public works under the amended sche
dule; that schedule which was proposed
by Mr.. Spreckels and by his influence
adopted at time when Mr.. Spreckels
had not yet f0H7d reaS0Hs to change
his mind as to the loan policy Of the
Hawaiian Government, and as to the
good character and standing of those
who represented the English syndicate
j suppose the syndicate have made
money by establishing the credit o.
Hawaii in Europe. The expenditure
of that money will probably be bene
fit TO this nation in the end. More
over, fnanciers do not undertake such
work for glory, and should like to bt
informed if the Hawaiian Government
paid any bonus indirectly for taking
Mr. Spreckels' silver at par for thu
$5oo,ooo of bonds which he nov
offers at discount. / hear that th'
discount on that transaction was abou
Se7enleen Per eenk
The hard feeling in the whole matte
seems to me to be entirely uncalleC
for. The creditors of the Government
: will get their money-that shoul'
satisfy them unless their debt was to b,
used to absorb the substance Of tn,
nation.