The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1896-04-24

senator WAREHOUSE, III Tue duscuCc
of Rev. H. w. Peck, asked divine bless
ing at the opening of the session yester
day.
At the opening Minister King report
ed the kerosene and gambling bills as
having been signed by the President.
Senator Waterhouse for the Commit
tee on Finance recommended an ad-
ditional appropriation of $4,000 for ex-
penses of the Legislature.
Senator Lyman of the Lands Com
mfttee recommended that in cases of
damage suits against the city for ex-
tending or widening streets the dam
ages could not exceed betterments..
Senator Waterhouse, for the special
committee on the Loan bills, reported
as follows:
mo. Is, being the Act to authorize
the consolidation of the public debt,
they recommend be laid on the table.
In the opinion of this committee, the
time has not arrived for the undertake
ing of the consolidation of the public
debt on account of our proposed po-
litical union with the United States, as
well as upon the ground of policy. 1t is
conceded that London is the financial
center of the world, and it would be
there we would have to look for the
sum needed and necessary for that pur-
pose. 1t is certain that the debt could
not be consolidated here, and we do not
know what could be done in the United
States, all inquiries having been made
in London.
THE greater part of the bonds now
issued are held here, and consequently
the money collected as interest is spent
here. In the event of consolidation of
the whole debt and the taking up of the
new bonds by foreign syndicate, the
probabilities are that they would all
be taken up abroad, and consequently
the interest would all be sent away,
and would thus be a continual drain
upon the country. A consolidation of
the public debt on the lines laid out
by Bill Is should take place some time,
as it will be great saving in interest
to the country; but the committee be-
lieve that the matter should be more
looked into and terms obtained and the
probable cost, between now and the
next term of the Legislature, as well as
the fact if the loan could be placed in
the United States.
LAS Bill No. 10 has been recommend
ed to be laid on the table, the same
course naturally follows as to No. 10.
Bills Nos. 20 and 81 the committee also
recommend be laid on the table. Under
the Loan bill of 1928 there is now
available for purposes therein named,
provided the bonds are taken, the sum
of S126,755. The Minister of Finance
informed this committee that the av-
erage annual home sale for bonds was
in the neighborhood of S225,000. The
committee are aware that if the pro-
jected internal improvements are to be
carried on, more money must be OBJ
tanned, and by home loan if possible.
Our bonds are selling in the London
market at a premium and here at par.
We believe that home loan for $780,
900 would be taken here, and without
loss in the way of discounts and COM
missions, and at par; but it is fair to
make some provision that can be made
use of if necessary.
I'VE therefore suggest that the Ex-
ecutive Council take into consideration
the placing of a loan for the sum of
$500 900, the bonds to be sold for not
less than IS, and interest at not more
than per cent. per annum, and that
the objects for which the money is to
be spent be limited by the Act author
izing the loan, and that such Act be
submitted to the Legislature at its pres
ent session"
This report is signed by Senators
Henry Waterhouse, G. n. Wilcox and
Cecil Brown.
The following minority report was
presented by Senator Schmidt:
In behalf of Senator H. P Baldwin
and myself, members of your Special
Committee on Loan Bills Nos. IS, 10, 20
and 81, beg leave to report as follows:
Nos. Is and 10. We are of opinion that
authority should be given to the Min
lister of Finance under these Acts to
consolidate or to refund the so-called
London loans about 81 900, 000 when
ever a favorable opportunity should Of
fer itself, but at rate of interest not
exceeding Az per cent, and at a dis
count and commission not exceeding 10
per cent, and we so recommend
Nos. 20 and 81 We are in favor of a
loan not exceeding s1,000,O00,< and to
give Hawaiian investors the prefer
ence.
am authorized to state that Senator
H. p Baldwin concurs in this minority
report, but on account of his departure
we had no time to agree on further par
ticulars, and ! therefore submit, an
nexed to this report, my individual ar
guments and suggestions. :
Respectfully submitted,
H. W. SCHMIDT.
1T may not be opportune now to con-
solidate the entire public debt, but cir
cumstances may change withinsa year,
and the Government should be ready
to accept favorable terms whenever OBJ
tainable. We have waited many years
for closer political union with the
United States, and should not defer any
longer any improvement in our financial
affairs on account of such uncertainty
IF it should be deemed advisable not
to disturb the bonds held here, the con-
solicitation or refunding can be confined
to the bonds held in London, as recon-
mended. The interest to be paid out