The daily herald. [volume] (Honolulu, Hawaiian Islands) 1886-1887, 1886-12-29
WEDNESDAY, DECEMBER 40, 1886
TERMS OF THE LOAN.

The Adterfisey is inclined to be face.
tious at the expense Of this paper, simply
because we gave the news ofthe hoatingof
the loan, with few moderate COM
ments naturally occurring in connec-
ton with that subject. Our gratifica-
ton al the news was of rather relative
sort, and not the expression Of syndi-
cate "organ." The tender OF loan to
foreign capitalists at ninety-eight was
made by the Legislature, also the COM
mission of five per cent to its nego-
tIators on the first issue OF one million
dollars, so that neither surprise, adula-
ton, regret, nor any other emotion is
called for at this day in respect to those
circumstances of the loan. But when
many people, including those who look
at present affairs from the standpoint of
the Adoerhiser, affected up to the arrival
OF the last mail to believe that even on
those favorable terms the loan could
not be placed, it seems to be only the
part Of every true friend Of the country
to rejoice that the credit of the nation
has proved to be much higher than
those prophets Of discredit would have
it. Moreover, in view Of the desperate
efforts made on the Coast, and even all
over the Union and at Washington, to
destroy the credit of the country, for
the sole purpose Of gratifying disap
pointed and thwarted ambition on the
part of commercial house that wanted
to rule this Kingdom, the success oi
the loan is peculiarly gratifying. How
ever, not being desirous Of posing as
the "organ" Of the London syndicate
we have submitted the statements o
yesterdays Adseyfiser to Mr.. E. c.
Macfarlane, representative of Hon. CIV
Macfarlane, the Hawaiian Govern
ments agent to negotiate the loan, al
b-ng the man most likely Of any per
IONS now in Honolulu to be well post
ed in the facts of the loan negotiations
That gentlcman's replies to categorical
questions on the subject are given be
low, and show that our contemporary
has hazarded statements easier made
than substantiated.
Q.-Has the syndicate guarantee
of five per cent on the whole two mil
lion2
A.-The amended Loan Act does no
guarantee five per cent on the loan tC
any syndicate. It says; "Section 8
except that the Minister of Finance
with the approval Of the King IN Cab
met Council, may allow to any person
or syndicate which may negotiate the
sale of said bonds commission no
exceeding five per cent Of the frs
issued portion Of the loan, to wit, fol
$I,ooo,ooo, and such percentage
as may be found necessary, upor
further issue, but not to exceed five
per cent upon such further issues.
Q.-What about the security alleged
by the Ad1ertisey to have been giver
the London bankers before the loar
would be touched1 And how does the
security actually given compare with
what Mr.. Spreckels wanted2
A.-Mr Spreckels was not satisfied
with either bonds or open account deb
at nine per cent without security. Lool
at the amendment offered for Mr.
Spreckels by Mr.. Dare, upon the defea
OF which Mr. Creighton and Mr.. Dare
went out of the Cabinet That amend
ment reads: provided that hereafter
no bonded debt shall be incurred, mol
any bonds issued prior to the maturity
of the bonds issued hereunder unless
provision be first made for the payment
Of bonds issued under and in accord
ance with the provisions of this act"
AS to what is called the preliminary
bond, / have information from the bes