The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1892-12-29

bteu 10 kI duuaIIS IeduCS tHdL rate,
so that all the latest loans have been
successfully issued at 3 per cent.
Those few-three or four perhaps
/ that may have been made for more
than per cent, viz, Madagascar, 6
per cent, 1889; Servis, 3 per cent,
! 1880, were only very hazardous oper-
| atoms, into which comparatively
| very high rate Of interest alone could
induce Investment. For all respect,
able and safe investments, the public
IN Paris are satisfied with the low
standard interest, which Is not the
case in London, where the bankers,
not the public, being those who often
raise loan out Of mere speculation,
they naturally always try TO obtain
the highest rate Of interest that can
be squeezed out Of their borrowers.
1t would be tedious TO enumerate
| all the loans thus made in Paris; |
| shall, therefore, only mention the
| latest. In 1888 Portugal converted
its old D per cent. Though it had yet
many years to run) into 4 ], which
was in 1890. further transformed into
4 per cent, both operations being
made entirely in Paris; similarly, the
| two latest Russian loans were made
| In Paris, when there was 10 show for
| them in London, that Of 1890 at 1
| per cent, and that of 1891 latter the
| great international demonstration at
Krondstadt) at 3 per cent. only; then
| the large amount borrowed in 1890
| by Roumania was subscribed for
per cent; Uuruguay's loan, in 1891,
at 81 the Tunisian obligations of
1892, at 3 per cent. and, to crown
all, by taking the very latest to my
knowledge, loan made on the 11th
of October last by the State of Fri
bourg (Switzerland), at 3 per cent,
was issued at the excellent figure OF
81, this loan being for the purpose of
| allowing it's National Bank to under
take operations on mortgages.
Iy.-sToCK GAMBLING.
| might make many observations
on the differences existing between
the Paris and London markets, but
only one needs really to be mention
ed for the present purpose, and this
is about the fact that there is no
money market in which stock gamb-
ling is practiced on such large
scale as in London; Of course, there
is gambling everywhere, but its pro-
portion is in cents in the other mar
kets, as against thousands in London,
even the we'll known games Of Wall
street, New York, being small com
pared with the British operations,
which attack the best values and
| depreciate them often without any
reason, so that, in this respect, Lon
don is by many considered an I'M
desirable market to issue a quiet
loan, as the speculative operations
react on the other markets, to the
prejudice of the loan gambled upon;
furthermore, the emitting firms in
Paris, are generally satisfied with
less profits than those OF London, so
that, had the last Hawaiian loan been
made In Paris, instead of being sub
jected to rather dubious manipula-
tons in London, it would certainly
have cost the Hawaiian people less
commission and less interest; and,
further, according to the present
general state of the Paris market, the
Hawaiian per cent. loan, if emitted
! there, would be worth to day at least
120, instead of being, as it now is the
case in London, kept way down below
par for speculative purposes. Any
one at all acquainted with the mys-
teries of the London Stock Exchange,
will understand what / mean.
v.-CoNCLUsIoN.
Now, from the above facts and fig
ures, which [ could much dilate If it
were necessary to adduce more evil
dence, l think ] can authoritatively
deduce:
l. That 3 per cent. is now the nor
nal interest required and obtained
in Europe for State investments;
2. That all sound foreign govern
ments have been able to obtain, at
nearly any time. fair loan in Paris
at between and per cent. interest;
B. That larger interest is only
proof Of bad, unsafe investment, as
it is only required on that market for
unknown or hazardous enterprises;
4. That Hawaii, properly adver-
tised and recommended, and offering
good guarantees and evidence of
good faith for the payment of inter
ests, by allowing therefor the use of
such public revenues as the harbor
dues, the water works, or others,
ought certainly to be able to obtain
all the money she needs in Paris or
Germany at 81 or 4 per cent, or at
the utmost at a. which would consti-
tute large annual saving for US:
5. That-and this in answer to a
special question-it would certainly
be cheaper for Hawaii to apply for a
loan in continental Europe rather
than either in London or in the Uni
ted States, this assertion being cor
roborated by the example of Quebec,
which, in 1880, obtained in Paris q
loan at per cent. which would not
have been procured for less than in
London and for less than 6 or in
America;
6. That q loan made in Europe
would be far less dangerous for the
future independence of this country
than any loan made In London or
America, which, in case of any trouble,
as shown by so many presidents,
could so easily be used as a menace
against our autonomy, or as the
means of exercising an undue pres,
sure on our Government.
} The above was specially written in