The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1896-04-24

4
abroad would be certainly less than theI
present amount. In every case the in
terest and discount should be a great
deal lower than in the bill, and the new
bonds should be for long term of
years, from thirty to fifty, at the Gov
ernments option to redeem sooper. A
number of years savings in interest
are required to make up for the loss
in discounts and expenses. If the Min
lister should not be able to carry out
the plan of consolidation on these terms
he will at least gather further informa-
ton on the subject, under the authority
of this Act. For said purposes the fol-
lowing amendments are recommended
to Bill No. IS:
4. Insert in preamble, line 6, behind |
the word loans as are now held in
London up to the amount of one mil
lion dollars.
"2. Section 1. Cross out in line the |
| figures 's3,450,000 and insert 81 ,000,- |
OO0.'
"3. Section 2. Cross out in line the |
word six and insert AZ
Ito Bill No. 10:
|
exceed in line and insert in its place
Eight per cent. on bonds issued under
the authority of the said Act bearing
not more than Az per cent. interest
Section 2. Cross out behind the word
two in line the words and a half
1T is evident that a number of i'm
provements in public roads and build
ings, wharfs, etc., are an immediate ne
cessity in order to develop the country
properly, and that it is impossible to
pay for all this out of the current re-
ceipts.
The appropriations asked for under
this Loan Act are not to hand as yet,
but they will be in the neighborhood of
one million dollars, and therefore
; limit to this amount, as recommended,
, seems sufficient.
1T is desirable that home capital
: should have the preference if the bonds
: are taken at. par, or even at 2 per cent.
e discount. If sufficient bonds cannot be
: sold on the Islands, then there seems to
s be no reason why they should not be
S placed in the market in San Francisco,
New York and London. 1t is true that
g the interest will have to be sent out of
e the country, but against this the capital
: has to be invested here first of all, to
] enable the Government to carry out the
t intended improvements, which will pay
! in indirect taxes more than their cost
e and interest.
Public improvements will benefici-
v ally affect all business enterprises, by
Y the circulation of more money, and will
t especially benefit the laboring classes
f during the present hard times. The
Ell rate of interest will no doubt be salts
e factory to capitalists, but at the same
i time the Government should not be
y obliged to wait till large dividends and
:, profits enable our resident capitalists
q to make investments in Government
f bonds. Suppose the dividends should
t be small and the parties not disposed
J, to take up the bonds on Government
terms, then all improvements under this
: Loan Act will have to be stopped and
e progress delayed. In fact the Govern
e ment would be placed in an unpleasant
e position between capital and labor.
S 1T is also impossible to prohibit the
/ sale or transfer of bonds acquired in
Honolulu to any parties abroad, in the
: United States or Europe, and the only
e difference would be that private parties
. earn the profits which the Government
0 aims to secure for itself.
r Therefore, although favoring Ha-
v waiian investors, no terms can be made,
!, which will be solely beneficial to these
o parties.
e There is no reason to feel against
: foreign capital, as we have needed it in
S the past and will need it in the future
e to build up and strengthen our old and
: young industries. If these foreign loans
e should tend to reduce the regular rate
: Of interest on the Islands, there will be
!. no harm done, as a low rate of interest
q generally produces prosperity, or at
:. least assists enterprising men to make
: their ventures or undertakings remun-
t erative to all parties interested in the
= same.
0 THE financial plan underlying the
e idea of having these bills, Nos. 20 and
81, separated, although No. q is merely
: an appendix to No. 20, seems plausible
4 and commendable.
f Some of the details are certainly
t debatable, and it cannot be the province
g of a single member to define the same.
t Respectfully submitted,
D III w. SCHMIDT"
Both reports were tabled to be con-
sidered with the bill.
Senator Rice's bill relating to fish
cries was ordered typewriter.
|, House Bill No. 6, relating to streets,
was deferred pending report of the COM
mittee.
House Bill No. %, relating to hogs
and goats, was read for the first time.
Senator Horner's request for leave
of absence was granted, and on motion
the Senate adjourned.
HDuca Df DaDracanfafi,rac