The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1898-11-04
Opinion Of Attorney Genera o.
New Bonds
Reptile. 10 q Number Of Questions
law and the Resolution Com
Ndsnce 10 shown.

Toe number OF tenders received on
short notice OF ths sale % Hawaiian
bonds. coupled With the fact that pr.
MUM was oner.-i established anlis
satisfactorily that generally there Il n
question Of the legality " the Issue
There came 90 Attorney General Smith
a request for an opinion on the legality
OF the issue aud a number OF questions
touching\pn prospective transactions
Mr.. Smith, who IN Of the opinion that
II the Government could not borrow
money 10 carry ON It's functions, Il
could not exercise the taxing power.
replied as follows TO questions pro
pounded
Honolulu. II. l., Nov. ], 1898.
Slr.-ln reply 10 yours of this day
relative 10 the legality of the issue of
bonds by the Minister of Finance
under his advertisement for tenders of
September 80, 1898, would state:
You ask, "goud you kindly give me
your official opinion upon the legality
Of the issue, the right Of the present
Government TO make the issue, the
status OF the bonds after the transfer
OF this Government TO the United
States, and what would. in such an
event be the security of the bonds and
who the responsible party to pay the
! same when due"
As TO the legality of the issue,
would state that II Is proposed to issue
these bonds under the provisions 81
! Act II, OF the Republic OF Hawaii, ap.
proved June 10. 1896, and Act Gs, ap.
proved Juy Z, 1898.
Act II of 1896 provides for the issu.
ing of these bonds to an amount not
exceeding in the aggregate, two mil.
lion dollars. The said Act also pro
vldes that lSec. -, the said bonds. OF
the proceeds thereof, shall be exclus.
lively devoted to the purposes for which
the same are issued as expressed II
the Act OF the Legislature under which
the loan and the issue of the bonds ar,
authorized" Section ~ OF said Ac
provides: The power to Issue bond
conferred by any Act passed In con
formity with this Act shall not laps
or become void as the result OF tn,
first Issue. but may he exercised fron
time TO time until the limit OF tn
amount authorized has been reached.
| The amount OF bonds issued unda
this Act thus far has been $562. 90
tSee report of Minister OF Finance O
December 81, 1897, page 49,
"Note: Since December 81. 1897. n
other bonds have been issued unde
this Act.
Act 90 OF 1898, provides for the ap
preparation for specific sums. amount
ing to $l,349,3l6.2S for specific Publ
Improvements out OF any none
which will be received by the Treasur.
during the biennial period ending DE
cember 81. 1899, from the loan author
lied by an Act passed by the Legisla
ture Of 1896. entitled An Act to pro
vide for Public Loans" being 40
II of 1896. above referred to-
Under the joint Resolution Of tn
Senate and House OF Representative
OF the United States. approved July !
1898, the cesslon OF the Hawaiian
Islands was accepted. ratified and con
firmed and on the 18th day OF Angus
following, the formal transfer wa
made at Honolulu.
In that Act OF Congress 1t is provid
ed that "the municipal legislation o.
the Hawaiian Islands not enacted FOL
the fulhllnent OF the treaties so ex
tinguished, and not inconsistent with
this Joint Resolution, nor contrary tC
the constitution OF the United States
nor OF any existing treaty OF ths
United States, shall remain in force un
I'll the Congress OF the United States
shall otherwise determine
Upon the occasion OF the transfer Of
| the sovereignty OF the Hawaiian