The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1893-01-03

! llttNs GA4NA NSh~'SI O1lHI
higher interest.
| Iu.-FoREIGN LOANS ISSUED IN PARIS
may say that, within the last ten
years, no foreign loans have been
issued in Paris commanding more
than per cent. interest: careful
study of the transactions Of the Paris
Bourse will show further that the
regular tendency of the market has
been to gradually reduce that rate,
SO that all the latest loans have been
successfully issued at per cent.
Those few-three or four perhaps
that may have been made for more
than 1 per cent, viz, Madagascar. 6
/ per cent, 1889; Servia, 5 per cent.
1890, were only very hazardous oper-
ations, into which a 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 cut 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; 1
shall, therefore, only mention the
latest. In 1888 Portugal converted
its old 5 per cent Though it had yet
many years TO run( into a, which
was in 1890, further transformed into
1 per cent, both operations being
made entirely in Paris; similarly, the
two latest Russian loans were made
ID Paris, when there was no show for
them in London. that of 1890 at 4
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 4
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 18th
of October last by the State of Fri
bourg (Switzerland), at 8 per cent,
was issued at the excellent figure of
81, this loan being for the purpose of
allowing its National Bank to under
take operations on mortgages.
Iv-sTocK GAMBLING.
7 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 well-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 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 |
iected to rather dubious manipula- |
tions 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 6 per cent loan. if emitted |
there, would be worth to-day at least |
100, 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.-CoSCLUsIoN.
Now, from the above facts and fig