The daily herald. [volume] (Honolulu, Hawaiian Islands) 1886-1887, 1886-09-02
THURSDAY, SEPTEMBER :, $50
THE LOAN BILL.

which the Government introduced, after
ward abandoned, and ultimately, under
pressure applied by the leader of that
party in the house which holds the Min
listers at its mercy, was passed on sec
ond reading the last thing before adj
journment on Tuesday evening. Mr..
Gibson was allowed to make show of
guiding the measure to passage, but
Mr.. Kaulukou was the one who drove
the train. As it passed second reading
the bill authorizes the Minister of Fl
nance, with the approval of the King
in Cabinet Council, to issue coupon
bonds of the Hawaiian Government of
denomination not less than one hun
dred dollars and in the aggregate not
exceeding two millions of dollars, in
the manner and for the purposes stated
In the Act The bonds are exempt
from taxes, will bear interest, payable
semi-annually, at the rate of not more
than six per centum per annum, and be
redeemable in not less than five nor
more than twenty years after the date
Of their issue, the principal and interest
to be paid in gold coin of the United
States or its equivalent They are not
to be issued at less than their par value
in American gold coin, except that a
commission of five per cent is to be al
lowed any per,on or syndicate negoti-
ating them, provided according to an
amendment effected by the opposition
THAT such commission shall not be al
lowed for any bonds sold in this king
dom or to residents of this kingdom.
The sums borrowed under the Act are
to be placed in the Treasury to the
credit of "The Loan Fund, and shall
be paid out for the following purposes
and no other:--
/. To recall and cancel all bonds
bearing and 9 per cent interest
issued under any Act Of the Leg
islature prior TO the date Of this
loan, and to pay interest on the
same .....,..,.... ........-.$ 3oo,oool
H. Encouragement of immigra-
ton. ...............,........ 100000
III. Honolulu Water Works. . $1,000
Nv. Sewerage Of Honolulu. ... 100000
V. Improvement Of the harbor of
Honolulu and for new wharves 10000
VI Improvement Of streets Of Ho-
nolulu and roadways Of the King
dom. acknowledgements. 100000
VII. Inter-Island cable commu-
nication. ACKNOWLEDGEMENTS. 100000
VIII Bridges and landings. .... $4,000
TX Highways across the Island Of
Oahu (Pali roadl ...,...,-... $4,000
X. Repayment Of special loan. 10000
XI. Purchase of steam tug Eleu $4,000
XII. Expenses Of floating loan, etc $4,000
Total. .............s.. $4,000, 900
The Minister of Finance is author
lied to make arrangements for bond
holders receiving interest in Honolulu,
San Francisco or such financial center
as he may deem advisable.
This loan bill passed third reading
this morning and wassigned by the King,
shortly before the steamer Ansf,alia
sailed for San Francisco at noon. More
over, Hon. Geo. w Macfarlane was
hastily sent by the steamer as agent to
negotiate the loan.
The community must be perplexed,
and we know it is SO, as to the full I'M
port Of the whole business. Mr. Arm
strong, the representative of wealthy
English capitalists, left by the steamer
Mararoa on Saturday night last, while
the loan bill was still pending. 1t is
currently believed although the Pre-
mier might feign to dismiss it as mere
street report, without recolecting that
street report may in many cases reflect
only on fact-that the Ministry sur
reptitiousiy burked the passage Of the
bill until Mr.. Armstrong was out of the
way. II such is the case, the Ministry
has been outgcneraled in this matter by
the sincere promoters Of the bill, for
Mr.. Armstrong is waiting across the
water for further Adyices regarding the
measure. Mr. Maciarlane is deputed
TO give the English agent Information
and instructions which either could not
be put in writing in the time at dis
posal, or which it was not deemed
expedicnt to write. The general accep-
tation Of the matter is this, that the
Ministry, on the very sensible advice