The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1896-04-23

matter people would scout at his ideas.
The gentleman was inclined more TO
talk on Mr.. Davies opinions than those
of Mr.. Damon or anyone else who had
interested himself in the funding bill.
1t is unfortunate that men who study
financial methods, or who take up any
branch of the affairs of government,
should object strongest to having their
names appear in print in connection
with any subject upon which they are
particularly well versed. Referring to
Mr.. Davies communication, this gen.
tleman remarked:
If anyone ever had a reason to
doubt the wisdom of having, the exist
ing debt of the Republic of Hawaii
converted from 6 per cent. to one at a
lower rate, surely Mr.. Davies letter
must have removed such doubt.
l should like Mr. Davies to calculate
for even Britons calculate) now much
interest a purchaser of an Hawaiian
bond in London at SOB gets for his
money, if redemption takes place at
the maturity of the bond. If his pur-
chase We're made on January 1st Of this
year, instead of now, the exact rate of
interest that he would receive would
be per cent! Do bondholders in Eng
land know that the time for redemp-
ton is nigh, and that advantage will
probably be taken of it?
Let me give you little of my own
experience. When in England last year
l had occasion to write the London bro
ker who has always done the largest
business in 'Hawaiians,' to ask the prlce
of our bonds. His reply was that they
stood at 102-1O3 nominally, but with no
sellers. He supposed his letter con-
tlnued, that l was aware that the
bonds were redeemable, and probably
would be redeemed, att the end of the
year 1896 And yet, with this knowI-
edge, Hawaiian bonds are still standing
at lob. What price, l should like to ask
Mr.. Davies, would even British SAY 6
per cent consols stand at if they were
redeemable eight months hence? Dare
he say that they would stand higher
than 103? And yet, because our bonds
are not quoted higher than what the
bonds Of the largest and wealthiest
countries would be quoted at under the
like conditions, Mr.. Davies doubts the
wisdom of converting our debt now.
IF Mr.. Davies will read the loan bill
he will find that it does not authorize a
new loan, but merely provides the terms
for contracting loans that the Legisla-
ture may authorize at any time, it's OBJ
ject being to provide for uniformity in
the issuing of new loans that may be
authorized. AS the bill for conversion
is distinct from the loan bill, the Cabi-
net is entitled to credit for recognizing
the difference between converting an
old loan and obtaining a new one. In
their view Of this matter the Cabinet
and Mr.. Davies are one.
Il am surprised that a gentleman
like Mr.. Davies, so doughty a cham
pion, and one so we'll able to give rea-
sons for the faith that is in him,
should urge as fatal objection to the
bills that some one who did not wish
his name given had said that the bills
could be tinkered, if they did not meet
in every point the views of the sapi-
ents who fill the chairs of the Senate
chamber; and that you, sir, who did
not give the bills a friendly welcome
when they made their appearance,
should have expressed the opinion
(Which might, you know, be wrong
that mistake was made in matters of
detail connected with the drafting of
the bills. Does Mr.. Davies know that
one of your objections twas it not the
principal oneO was that the bills
which Mr.. Davies admits should be
kept apart, should have been in one?
Might be so presumptious as to ask
Mr.. Davies for his own reasons for
opposing these bills, or at least the bill
for conversion? The impression that
his letter gave me was that he was ad-
ducing some other persons arguments,
which he either did not understand or
he had some strong suspicion were not
tenable.'