The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1896-03-31

T.
fer the Hawaiian bond at par. Hawaii
has never repudisted an interest coti-
pom. The bonds becoming due between
now and 1899 would require only about
s13.500 The major portion Of other
loans were not due for seventeen years
Rather than make the allowance made
in the bill. he would advise letting the
loan question alone for the present
The people Of avail have taken up
many government bonds. and as this
bids fair to be prosperous year. there
would undoubtedly be plenty OF money
right here TO invest in bonds. The
great point is this: If We expect an
! nexation to the United States. il will
come within the xt two years. and in
event of annexation the bonds will be
Just as good as United States Govern
ment bonds. There was no reason why
Hawaiian bonds should not be just a.
good as those of any other country.
Mr. Damon stated that one of the
first things was TO establish credit. and
after the country had established a
good standing with foreign houses.
there was no reason why bonds which
might follow could not be fioated at la
per cent Comparing Hawaiian bonds
with United Stat s securities was like
fly on the back of an OK.
Mr. Jones explained that he made this
comparison on account of the large pre-
MUM United States bonds demanded
and the large discount it was suggested
to allow on Hawaiian bonds.
w. G.. Irwin said he concurred with
the ideas expressed by Mr.. Jones. Ha-
waiian bonds were good 1t was simply
matter of credit and he saw no rea-
son for making such a large discount
Furthermore. he could not see the ne
cessity of the loan. This country Is not
prepared to discuss cables. dry docks,
etc Il would be better to let the mat
ter go over to the next Legislature.
The present bonds are generally held
within the country. The money paid
out Is used within the country. There
are many small holders here. and il
the loan Is made In foreign countries
the money would be diverted 10 foreign
channels. He did not approve Of saving
$40, 900 by upsetting the present system
of bond holdings: better let the thing
alone. II was unfortunate that the bills
had been brought in at this time. II
was bad for the eountry's credit. II 10
not necessary to make every improve
ment suggested. The improvements
can wait. The Legislature might pass
an Act to allow a limited loan. but the
Act in question, In its present form
was neither good politics nor business
policy.
Minister Damon thought the ability
to take this step would have a good ef-
feet on the eountry's credit. although
be admitted that IL would be hard for
people to give up the present interest.
Mr.. Jones said he did not object 70
the consolidation; IL was the proposed
discount and commission. IF your
honorable body will give me $1,000.
will place the whole loan west OF Mas
sachusetts."
Mr.. irwin: "1ll give $4,000"
Mr.. Damon suggested that II was not
necessary that the full discounts and
commissions allowed under the Act
should be paid. To which II was replied
that IL syndicates knew the limit they
would be inclined to ask price very
close to that figure.
Mr.. Damon remarked that criticism
might be passed on account Of advice
having been sought in london, but he
went to that market simply because he
thought the best terms could be OBJ
tanned there.
Then followed a ram bling discussion
on the wording of the Acts and the au-
thority granted by them. Minister Da-
mon read a letter from a London broker
with whom he had beeen in communica-
ton. and who had drafted bill that
would meet the requirements OF the
London market
Mr.. Swanzy was called upon. and he
stated that his views were about the
same as those expressed by Mr.. Jones
and Mr.. Irwin. The cost of the consoli-
dation was too much-excessively un-
necessary. If the pay rolls took SO
much of the Government income, some
thing might be done to cut down the
Ray roll.
Mr.. Atherton voiced the sentiments
OF previous speakers we are strong
fust so far as the debt Is conferred In the
Government itself The more bonds We
can place in the islands not only makes
the Government stronger, but It's credit
better. The conditions may be such
later as to enable US to make much bet
ter terms in placing the loan"
After a short discussion on technical
points of the bills, the meeting ad-