The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1896-03-31

be IS per cent. less? The speaker
would prefer Hawaiian bonds at par
to U. S. bonds at SII7.5o At one
time recently he had offered to take
SIoo, 900 worth of bonds at sos and
been refused.
Mr.. Damon replied at length to
Mr.. Jones He doubted the gentle
mans ability to borrow the money
on less than IS per cent. discount
bonds. Hawaii was little known.
Even in San Francisco not more
than IS per cent. would be ad-
vanced on Hawaiian bonds put up
as collateral. An official of
Queensland, that colony which had
been most successful in borrowing
money at the lowest rates of inter-
est, had told him that the one sue
cessiul way to go about the matter
was to get into the best market
available. Go into London and
get the loan from the staunchest,
shrewdest, most careful bankers.
That alone would inspire confidence
in the credit of the country. Baron
Rothschild had said. when a gov
eminent pays 6 per cent for its
money, it looks as if something is
radically wrong with the financial
status of that Government. By
getting the endorsement of the best
bankers to our bonds it would show
to the world that they were con.
sidered sound by the most compel
ent authority. Hawaii could
not yet expect to negotiate loans
on the same basis as the United
States.
Mr.. Irwin could hardly see the
necessity of the loan at present.
He thought if it were necessary to
go into cable or dry dock, the
matter could we'll lie over to next
Legislature. Everything consider
ed, it was not policy to change the
system at the present time. 1t was
unnecessary. Money for carrying
on the ordinary work could be got
ten in the country. From a bust
ness and political standpoint he
could not agree with the bill.
Mr.. Damon could not see how a
step forward, a reduction in the
amount Of interest Of nearly
$2, 900, 900 in fifty years, could be
an unfortunate step. A reduction
in the amount Of commissions, 2H
per cent, might be made. The
country could not hope for better
than this. 1t was provided that in
event of annexation the rate
of interest be reduced to conform to
All American basis.
From this point Mr.. Jones ad-
vanced several questions, and was
successfully answered by the Min
lister of Finance.
Mr.. Irwin called attention to
what he considered to be contra
dictory provisions in Acts IS and
and I9, one giving the Minister
unlimited powers and the other no
authority whatever. Mr.. Dlmon
started to explain, but misunder-
standing the point raised Mr.. Bald
win took up the matter and an
swered Mr.. Irwin. He said the
laws were entirely distinct. One
referred to the consolidation of the
debt and the other provided for a
new loan. The first might go into
effect, and the second remain mac
tive upon the list OF laws in case it
should be found not necessary to
call it into service.
Mr.. Damon added that such was
the case, and he felt grateful that
the laws were separate. He ex-
planned, too, at length upon the bill
that became part OF the loan con-
tract, and the act that effected
merely the conditions under which
the contract was entered into
At one stage of the discussion
Mr.. Jones remarked that he would
be pleased to pay a bonus of S., 900
for the privilege of handling the
loan and not place it nearer London
than Massachusetts,. Mr.. Irwin at
once said he would give bonus Of
$50, 900.
Mr.. F. M. Swanzy had talked
with Messrs. Irwin and Jones and
agreed with them. The cost of
consolidation was excessive, and
should not be attempted at the
present time. 1t was difficult to
see the advantages in it. AS Mr..
Irwin had said it meant a disrup-
ton of all that had been done.
Bonds in this country and in
various parts Of the world would
have to be called in, which might
be attended with difficulty. The
true was inopportune for public
loan. The Minister of Finance had
stated that more than one-third of
the country's revenue was expend-
ed on the pay roll. This of itself
was unfortunate. The pay roll
might well be considerably reduc-
ed SO as to leave money for carry
ing on public works.
Mr.. Damon made few remarks
in reply tSthis.
Mr.. Atherton voiced, pretty
much, the sentiments of Messrs.
Jones, Irwin and Swanzy. He
said country showed its strength
in the amount of bonds held by its
own people, and not by being able
to borrow on the cheapest market.
There was demand here for Ha-
waiian bonds, and such security
could always find money right at
home. After the country had
thoroughly departed out of its
revolutionary state it might then
be able to negotiate with ease
loan at rate of interest in keeping
with its financial ability.
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