The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1896-04-21
Business Men Favor Mr.. Thurs
tons Ideas.
MINISTER DAMON A FNASCIER.
No objection 70 Raising Money Abroad
II II Cannot De Accomplished Here.
Honolulu Capitalists should Have
Preference Commercial Loans.

issue Of the Advertiser, has caused coz
siderable thought among the business
men and fnsncisrs throughout the city.
and while il is believed that the Senate
committee viii report adversely on the
subject, no one was found yesterday
who directly opposed the bill
With s capitalist there would be an
aversion. naturally. because he gets his
wealth by collecting interest from his
customers. and incomes would Be ma
tsrizlly affected by any measure tend
ing toward s lower rate o. interest
One business man who frequently
makes loans in order that he may carry
On MS business objected 10 having his
name used because persons from whom
he borrowed might call in their loans
10 Ein II il vas kneya he openly ad-
vocstsd The funding bill. said;
The man who is considered fnsn-
eislIy weak pays higher rate OF inter
EST than The one whose standing is Al.
This is so the world over, and no one
realizes the fact more than the mon
led men in the United States II his
condition Is such thar he needs money
badly he is willing 10 pay higher rate
OF interest II his condition changes
and his securities are better hs will ne
sOriSts az lower rate. Practically that
Is The position % the Government
While II wants money as badly, per
hsps. as ever, its condition is better
and IL should pay less interest than for
merry. Government loans are made in
the United States as low as 21a per
cent; commercial loans on call are easy
81 Per cent
II the Government loan was or
Per cent, commercial loans would be
materially higher, as they are here.
! have frequently paid u per cent. in
teresr with the same class OF securities
as collateral as I would use in the
United States in securing loan az
Per cent I believe the funding bill,
which would secure q Government loan
al ~ Per cent, would help every bust
ness man IN the community.
John Ens, yiee-presidsnt and fnzn-
eisI manager OF the Inter-Islsnd s 8
Co. expressed the same views as M
Thurs-on.
It would Be q good idea" he said
10 consolidate the loan if the money
could Be borrowed al per cent The
Executive should De given the power 10
do this The matter OF discount and
commission could b arranged by the
Senate. II Is per cent should be con-
siGersd too much. let the Senate tinker
with The laws until the proper rate is
arrived al il regard TO discount and
commission If the loan act is passed
and II is found that the Executive does
lot want consolidation, then the Law
could be left on the law books without
inficIing any harm II money is needed
a. any future time then the Law Is all
ready 70 give sanction. II local cap
iIsliSCs are willing 70 take up the loan.
then let IL Be first offered here. This
would Be best, as the interest would
then b kept in the country. However
il the loan cannot Be negotiated here.
then 90 70 The United States, England
or any place where the most sstisfae-
CCry terms may Be made
z c MsCfsrlzne. 81 one tine Min
lister OF Finance under The monarchy,
was called upon, but was not inclined
% talk when first spoken 70. He said,
however. that The argument in favor Of
placing the loan here vas inconrO-
vsr-ible. The interest paid On the
money borrowed naturally keeps IL
here II would Be an advantage 70 have
an Official quotation from the London
stock exchange. Take e quotation with
bonds bearing interest AZ AZ per cent,
would not such & recognized fact be OF
great value il marketing any industrial
~ a.
the London exchange would Be evidence
Of the stability Of the Government /
Aside from considerations such as this, 1
the best place for the loan Is uudoubt- Z
eddy here. By all means, convert the
loan here, but do not disturb the status
OF ths English bonds Leave that as il /
is, for the country gains by IL"
G. J. Waller, manager OF the Metro
politzn, endorsed the views expressed 1
By Mr.. Thurston-
The Government, he said, has as
much right TO economic as business
man Let il get the best rate possible 4
The objections raised TO borrowing the
money il England amount 70 nothing
London is the financial esuter OF the
EorId-sEsa the United States recog-
Mics that and would not object 70 IL
The loan should be placed il Honolulu
Il possible So long as the Government
shows q willingness 10 pay per cent
the impression mus- obtain abroad that
Se are not On sound financial basis.
: lover Government rate would lower
the rate for commercial purposes, and
viii consequently bring more money
ir-o -he co-rrr-Tss
A prominent business man who did
not want his name mentioned delivered
himself as follows:
The contention Of local capitalists
hat 10 borrow money az home and pay
; per cent interest would Be better :
han borrowing money from abroad at
. lesser rate Of interest amounts TO
lothing more OF less than making the
yulk Of the population pay the differ
nee Of Interest"
In the lower house in the Legisla-
IRE the opinion il favorable TO such
I'LL
Representative Bond said:
with ny present knowledge l am
q favor OF such a bill OF course ! am
~ Nrsrcfer and should not b. quot