The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1896-03-31

Brown as 10 the general policy of con-
soIidating the loans at this time, Min
ister Damon said it was his private
opinion that the debt should be con-
solidated as soon as possible at lower
rate of interest. Six per cent. was too
much TO pay.
Mr.. Jones was called upon for an
opinion, and stated that he thought 1T
a mistake TO attempt TO consolidate the
loans under the conditions named in
the bill 1t was poor policy to allow 212
per cent. discount and Is per cent.
commission. II was a mistake to put
these conditions in the bill. BY the con-
ditiOns of the bill SO 400, 600 was allowed
TO cover an expenditure of $3,500,00O.
With the rate of interest at per cent,
the loan would cost 4.6. per cent, III ad-
dition to which would be S45000 to be
paid by the Government at the maturi-
ty of the loan.
The margin was altogether too large.
United States bonds are selling at II
pei. cent premium, and taking all
things into consideration, he would pre-
femthe Hawaiian bond at par. Hawaii
hay never Tcpudiated an interest cou-
pom. The bonds becoming due between
now and 1900 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 Hawaii have taken up
many government bonds, and as this
bids fair to he q prosperous year, there
woulG~undoubtedly be plenty of money
right here to invest in bonds. The
great point is this: If we expect an
nex1t:on to the United States, it will
come within the next 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 as
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 112
per cent. Conn pairing Hawaiian bonds
with United States securities was like |
a 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 c. Irwin said he concurred with
the ideas expressed by Mr.. Jones. Ha-
waiian bonds were good; it was simply
a matter of credit and he saw no rea-
son for making such a large discount.
he could not see the ne
cessity of the loan. This country is not
prepared to discuss cables, dry docks,
ho +o lot ho
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 if
the loan is made in foreign countries s
the money would be diverted to foreign
channels. He did not approve of saving
100000 by upsetting the present system
Of bond holdings; better let the thing
alone. It was unfortunate that the bills ;
had been brought in at this time. 1t
was bad for the country's credit 1t is
not necessary to make every improve
nent suggested. The improvements &
,an wait. The Legislature might pass
IN Act to allow a limited loan, but the I
Act in question, in its present form, ,
vas neither good politics nor business
policy
Minister Damon thought the ability @
o take this step would have good eff G
5ct on the cOuntry's credit, although {
le admitted that it would be hard for
people to give up the present interest
Mr.. Jones said he did not object to
he consolidation; it was the proposed s
discount and commission. "If your a
honorable body will give me $4,000,
will place the whole loan west of Mas
achusetts"
Mr.. Irwin: I'll give $40, C
Mr.. Damon suggested that it was not S
that the full discounts and a
allowed under the Act b
hould be paid. To which it was replied I
hat if syndicates knew the limit they il
would be inclined to ask a price very t.
lose to that figure. O
Mr.. Damon remarked that criticism a
night be passed on account of advice r
aving been sought in London, but he r
1ent to that market simply because he a
hOught the best terms could be OBJ b
aimed there. O
Then followed a ram bling discussion v
n the wording of the Acts and the au-
lOTity granted by them. Minister Da- Il
lOn read letter from a London broker
18th whom he had beeen in communica- a
ion, and who had drafted a bill that Y
7Ould meet the requirements of the
.OndOn market Y
Mr.. Swanzy was called upon, and he "
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