Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1896-03-31
PROPOSED LOAN BILLS.
IMPORTANT MEETING or THE
SPECIAL COMMITTEE.
Prominent Capitalists give Their
Views on Minister Damon's Pro-
posed Loan Measures.

bonded Indebtedness of the Ha-
waiian Islands and authorize the
issuance of new loan for inter-
nal improvements, consisting OF
Senators Warehouse, Schmidt,
Wilcox, Brown and Baldwin, yes
terday afternoon the following
were present by invitation: Pre-
sident Dole, Minister Damon,
Hon. p. G. Jones, Senators Hook
ing, Holstein, Homer and Nc
Candless, Rep. Richards, A. b.
Wood, w. G.. Irwin, j. b. Ather-
ton, w. George Ashley, +. M.
Swanzy, Il. ID. Tenney, Prof.
Alexander and II. III. Holmes.
The committee organized by
electing Seletor Waterholse as
chairman. That gentleh an stated
the principal object of the meet
ing was to discuss the act looking
to the consolidation of the public
debt, and to bring the matter pro-
perly before the meeting he asked
Minister Damon for statement.
Mr.. Damon said that for year
past the subject of converting the
bonded debt into bonds bearing
lower rate of interest had occu-
pied his attention. 1t was the
first time in the history of the
country that anything of the kind
had been attempted. You may
ask why l have gone to London
for figures and data in this matter
in preference to New York or
Boston. have gone to London
because it is the cheapest money
market in the world and the
cheapest for us to go to. The first
thing they require to know in
these money centers is the po-
litical status of the country asking
the loan. Unfortunately Hawaii
has acquired a reputation for
revolutions which has not been
desirable to say the least. The
primary move, think, should be
the conversion of the present 49,
005,300 of our bonded debt into
bonds bearing lower rate of in
terest. These new bonds should
be offered to local holders first
and afterwards to outsiders.
Under the present system of
affairs here two-thirds of the in
come Of the country is being paid
out in salaries and pay rolls. AS
long as this continues the money
for public improvements must
necessarily be borrowed. This
must be apparent to all. He felt
that instead of substituting
cable the government should
issue bonds and build its own
cable, thereby retaining the con-
troll. He also thought we should
have a new and large dock for
ocean steamships, and loan of
S250,000 for this purpose he
thought would be wise, and he
had already proposed the forma-
ton of a syndicate for the pur-
pose of taking up such a loan.
There was no authority given in
these Acts to the Minister of
Finance to do anything whatever
about the placing of the bonds
without the approval of the Exc
cutive Council. 1t was customary
to print on the bond the full text
of the act which authorized its
issuance, but the act which au-
thorized the terms and conditions
of its disposal was separate
affair and was therefore embodied
in separate act.
In reply to a question from
Senator Brown Mr.. Damon said
he had asked for bonds to the
amount of $3,450,000, which he
thought would realize the amount
of the present Indebtedness, less
commissions, etc. In reply to
another question from the same
Senator, the speaker seid the
balance of the last Loan Act
could not be applied to purposes
other than the specific ones for
which the act called for. The
new act has been drawn for the
purpose of obviating any similar
difficulty.
Senator Brown: "What do you
think of the present policy of re-
funding the debtp"
Minister Damon. "That is
a broad question and one
which has not been COM
mitted to me TO study. | was
asked to draw an:aot for that pur-