The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1896-03-31
Finance Committee Discuss the
Loan Bills.
CITIZENS OPPOSE PRESENT FORM.
Expre ssions From Leading Ffnancfers.
Minister Damon EXpIains-LondOn
Market Cheapest-Desire to Keep
Bonds in Hawaii or United states.

The first meeting of the Special Fin
ance Committee was held Monday af-
ternoon in the Senate chamber, to
consider the loan measure introduced
by the Minister of Finance. Besides
the members of the committee, there
were present President Dole, Minister
Damon, Senator McCandless, Repre-
sentative Richards, P. c. Jones, w. G..
Irwin, J. B. Atherton, F. NJ. Swanzy,
E. d. Tenney and A B. Wood.
Senator Waterhouse was elected as
| chairman of the committee. Mr.. Water
house explained that the object of the
meeting was to consider, first, the ad-
visibility of the consolidation OF the
public debt of Hawaii.
| AS Minister Damon was the author
of the Loan Acts, he was first called
upon. He stated that the question of
the consolidation of the public debt had
beeen agitated in one way and another
! for a year or more. A few months ago
this object in view. No action had been
taken upon the matter by the Execu-
tive Council This was the first time
any move of the kind had been taken
in this country, and consequently those
having, the matter in hand were, in
measure, cropping in the dark; they had
no precedent to follow. He had sought
advice in London, as that was a market
where such matters were handled
great deal, and it was the cheapest
market He had gone to London in
stead of to the United States, because
the financieTs there were better ac-
quainted with the situation here. Some
had thought best to go to New York or
Boston, but London was undoubtedly
the cheapest market, and naturally he
had sought the place where he thought
the best trade could be made. In MAX
ing a loan of this kind the first query
was to know the political condition.
Unfortunately, Hawaii has gained the
reputation of being revolutionary
country, and he would hesitate before
going to either New York or Paris.
The first offer under the Act would
b made TO the people Of Hawaii At the
present time the Government is paying
two-thirds of its income for salaries
and pay rolls, and the remainder is
spent for Incidental expenses. So long
as this condition obtains, the country
must go on borrowing money, if it is to
carry on the public works
Another reason for drawing the Act
was that any business man desires to |
have his loans in as compact a form
as possible. The time was coming |
when, in order to have cable connection
with San Francisco, this Government |
would be obliged to be party to the con-
tract, and issue bonds and have a |
voice in the corporation controlling |
the cable. This may come sooner, or |
it may come later, but this country |
should place itself in a position to meet |
the contingency.
AS to granting a commission to syn
dicates for floating the loan, the Min |
lister referred to the necessity of build
ing wharves, etc. The parties desiring |
these improvements might give valu- |
able aid in placing the bonds to cover
do not know of vital point in any of |
the Acts where the Minister of Finance
can act without the consent of the EX-
ecutiye Council, or they without the |
of the Legislature. The rea-
son for introducing separate Acts was
that it was the custom to print the Act
the loan in the bond, while
The Legislature could change from time
to time the method Of floating the loan.
Minister Damon closed his remarks by
requesting criticism, and stating that
he would willingly answer any ques-
lions that might be put.
Senator Baldwin asked what amount
it would be necessary to raise under
he Loan Act for the next period.
Minister Damon said the average
amount for the past two years had been
S22, 800 per annum. The reason for not
being satisfied with this was that un-
Ter the Act of 1898 money could only
De expended for the definite objects for
which IL had been appropriated. Some
appropriations had run out. while a bal
,nce left in other appropriations could
lot be transferred.
In answer to the question of Senator