Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1896-03-31

we can save DAU,UUU duuublly III |
interest, we shall have that much |
more to put into roads and
bridges.
p. 9. Jones said he felt some
delicacy in giving his opinion,
but as the minister had expressly
invited criticism he would say
that he thought the bill in its
present shape was very unwise.
A discount of 10 per cent, with a
commission of q per cent added,
was not wise. On this basis 4 per
cent loan of ~, 100000 to redeem
S3,005,300 present indebtedness
would really cost the government
4 Cloths j. terest annually the
way he had figured it out, besides
adding neatly S450,000 to the
amount of the present debt. The
margin given the Minister of
Finance of 10 per cent discount
and q per cent commission was
too great. The new United States
4 per cent bonds just issued were
selling today at 1l75, while we
proposed to sell ours at III per
cent less than par. This was a
difference of 30 per cent on a
bond bearing the same rate of in
terest and he could not see where
the difference came in. He would
sooner invest in theHawaiian bond
at par than in the U. s. bond at
III premium. He thought that
the Minister of Finance could go
to New York with a 4 per cent
bond and inside of 80 days its
capitalists would be here bidding
against each other to get it. There
appeared to him, however, no
occasion for any haste in the mat
ter, as the only bonds to fall due
in the near future we're $4,000 in
the year 1900. AS far as the new
loan of $2,000,000 for internal in.
provements was concerned, lie
thought there would be no diff
Guilty in taking that up here as
fast as it was required. A great
deal of money that was now being
realized from sugar was going in
to Hawaiian bonds, and there
would be enough to take up all
bonds voted by the Legislature
for new improvements from tina
source alone. In case of annexa
ton all Hawaiian bonds would
Immediately jump to premium
because they would be equally al
desirable as those of the UniteC
States. He was in favor of issu
ing bonds for internal improve
ments but not at the rate of dis
count and interest proposed. Ha
waii has never repudiated o.
even passed an interest coupon
yet and there was no reason why
its bonds should not be as valu
able as other similar ones.
Minister Damon said that il
placing bonds a great deal de
pended on dealing with respon
sible frst-class firm. After bust
ness was once established witt
such firm they would handle
bonds on a commission as low as
Ii per cent. That was one reason
for going to London, the cheupes
and best market in the world. Yt
compare Hawaii with the UniteC
States was to compare fly on al
ox's back with the OK itself.
William q. Irwin said he haC
talked the matter over good dea
with others. He agreed heartily
with what Mr.. Jones had said
Without discussing the terms o.
the proposed acts he thought tina
the whole matter was premature
The country was only just recover
ing itself and in two years from nov
would be in a position to demand
much better price for its bonds
and that what it would lose in in
terest for the next two years would
more than be made up in tha
way. The bulk of the 100000
in bonds that became due in 1906
was held right in this city. He
knew Of one estate which had
Sl80,O00 trust funds invested il
those bonds and he thought ht
could put his hands on a banking
firm which had another $780, 0(
in it's vaults. He maintained tina
it was better to pay 6 per cent in
terest on a bond held at home
than 5 per cent on one sen
abroad. The interest that was
paid out to bond holders here was
great help to everybody and thu
difference would be quickly dis
covered if the bonds shonld all hI