The Hawaiian gazette., 1896-04-24
n-trodden and Oppressed by
Loan Bill.
sAvIoURs OF THE REPUBLIC.
Wants More Money Paid for Inter.
est so 1t VIII be Kept In the
Country-Sound Financial SCHOOL,
Question Of Principal = Interest.

4 MR.. EDITOR am tax payer and
a very much abused bondholder. AS
such 1 feel am entitled to a hearing
not only on my own account, but also
on account of few others of the same
class who are undoubtedly the back
bone of the country.
| What would the Republic have done
without us when a certain demand for
S90, 900 was made? Why, we are the
sayiours of this Republici The Sen
ate recognize this fact; they are men
of gratitude. Some of them l believe
feel deeply and think we ought to have
9 per cent on our bonds. or a pension
divided among US of say IL to 2 per
| cent. on $3,000,000, which would
amount to $4,000 to 100000; this
would certainly have a comforting in
fiuence in the absence of anything bet
ter; but there are members in the lower
house whose sympathies are with the
ungrateful and mercenary majority
who insist that public funds ought to
be managed as though they were the
funds of private corporation.
Such unbusinesslike ideas make me
tired. The class of bondholders in this
country (even though we do not num-
Der three hundred) are highly respect
able lot of people who ought, and who
propose, to dictate the financial policy
of this country.
Mr.. Editor, we have earned the right
to fix the rate of interest on just so
much money as we think necessary.
Some of us were born here, and some
| came here for their health, and what
they can make (honorably, of course).
By hard work and careful investment
on mortgages at s and IL per cent,
which we have never foreclosed, except
ing in cases where interest was not
paid the day it was due. We have built
up the country until now we feel that
| we own it. 1t is true that some of us
have paid the smallest amount Of taxes
in proportion to our wealth, but that is
where we prove our superior knowledge
in financial matters.
If others had known enough to fol-
low our example they, too, would have
been numbered among US, and we would
have been ere this solid -Four Hun
dred."
The policy of those who urge bor-
rowing money in London at 4 per cent,
if carried out, will ruin US. They don't
consider for one moment the para
mount Importance of keeping the in
vestment and interest all at home. If
they did they would make the rate of
interest for home bondholders per
cent per annum. You see, if we call in
all the loans and make new issue of
bonds at per cent, for enough to re-
fund the bonded debt (say three mil
lions) the interest would amount to
$4,000. This would all be kept in the
country.
The other side proposes to borrow 81,
000, 900 in London at per cent, am
bunting to an annual interest of $780,
900, and send it all away. This would
be loss to the country of the $3.50 900
sent away and the $27O,OOO that we
ought to have kept in the country, max
ing total loss of $4,000 annually.
You see, Mr.. Editor, the higher the
rate of interest the more we shall save
Were it not for the lack Of general
education in financial matters, the peo-
pie would go in for 20 per cent. rate
This 20 per cent. rate on $4,000, 900,
or better still, on $6,000,0 900 loan, to
refund the old debt and cover import
ant Improvements improvements that
l fail to see the need of-would make
an annual interest account of 81 200, 900
all to be kept in the country. See?
1t is plain to the most of us bond
holders and our sympathizers that we,
who have built up this country in the
full hope and expectation of controlling
it, have a perfect right to dictate the
financial policy of this Government
Now, if this plan of borrowing money
at the ruinous rate of 4 per cent. is the
wish of those who voice the sentiments
of $4,000 people in these islands, and
they have their way, we shall be forced
to take 4 per cent, too, for our hard
earned dueats, or else take the horrible
risk of investing abroad. We have al
ready invested large amounts there
that would bring tears of joy to our
eyes if we could get it back again and
see it safely invested in Hawaiian 21l
per cent. bonds, if there were such to
be had.
o, dear! what shall we do if the Sen
ate and House of Representatives don't
stand by us? Once let the Government
get the door open to the worlds money
market, and all the corporations in the
country who are paying US the rates
we have the right to keep up will rush
off and supply their needs In the same
market, and we can play Shylock no
more. BONDHOLDER