The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-04-08
THE FORM
OF BONDS
Should American
iZe Our Island
Methods.
THE VIEWS OF
HON. s. M. DAMON
He Suggests Bond Form That,
in His Opinion, Would
Suit Hawaii.

Among the many problems that con-
front the present Legislature for solu-
ton is the bond issue question, upon
which the interest of the public is now
Istrongly centered in view of a combina
ton of circumstances and conditions.
By recent mail from the Coast came
} the news that w. F. McLennon, chief
} of the warrant division, and w W.
Ludlow, one of the officials in the Aud
itor's office, Treasury Department at
Washington, will sail from the Main
land about the middle of this month
for the purpose of paying the bonded
debt of Hawaii This news has a per-
tinent bearing upon the question at is
sue, and the announcement that the
treasury of the Territory is threatened
J with depletion by heavy current ex-
J Ipenses draws the attention of the pub
lie to the various phases of the prob
!, lem.
The bond issue has been subject
of study for those much interested in
the Territory's affairs for some months
but the matter has been brought to a
focus by the recent shaping Of condi-
tions and great interest has been awak-
ened in the question owing to the Leg
J lislature now being in session and con-
J Ifronted with the duty of raising funds.
The Advertiser has taken up the sub
, iject and made inquiries of those who
have given the question close
study, last night obtaining an inter
view from S. NJ. Damon. who is emf
Inently qualified to discuss the matter.
First of ALL said Mrr Damon. lin
consideration of the bond issue, any
other question of Territorial interest.
l
! conditions that confront us. Since an
nexation we have been completely rev
lolutionized. one might say, in the mat
. ter of conditions, and if we would sue
coed we must adapt ourselves to the
new phases that present themselves.
We have become part of the United
States. and it is best for US to be iden
titled in spirit and methods. as we'll as
in name, with the country to which we
belong. Myself and other business men
find that it is best for us to adopt the
systems of business that are used on
the Mainland-the same methods of
transaction, the same forms of con-
tracts, deeds. mortgages and all bust
ness papers. We are becoming more
iclosely associated with the mainland as
time goes by and we must conform in
our methods with the customs and
methods of the United States; this is
necessary so that our negotiations will
be perfectly usual and acceptable
throughout the States If we do not
pursue the same systems of business
: transactions as those used on the
Mainland we shall find ourselves at
variance, and in misunderstanding of
/ terms and forms, so that it is essen
tial that we adapt ourselves to the
IcOndifinnc 10 n ne
LAS it is in business matters, so it
must be, of necessity. in the matters of
the Territory. With annexation we put
, on an entirely different governmental
clothing, and so long as we cling to our
= old systems in public affairs, we will
| find ourselves out of harmony with our
Surroundings and confronted with diff
ficulties that can all be avoided by the
simple adaptation of American meth
DDS The systems and customs of Ha-
wall as they were under the Republic
accomplished their purposes excellent
ily. but they havesgone
Il have been making close study of
Ethe bond issue question for a long time
and I have borne in mind particularly
this policy of adaptation. In rejecting
upon the matter l have thought that
there could be no better way of ap-
preaching the question than by observ-
ing the methods that are pursued by
Territories of the Mainland under SINH
lar conditions and with view to the
needs of the issue, l wrote several
months ago to San Francisco for copies
of the forms of bonds that would be
acceptable and would meet all the re-
quirements of the Mainland Territories.
From the kind of bond form sent me in
compliance with my request, l found
that the Mainland Territories act
through a loan commission, the first
step taken being the appointment OF
4 the Board of Loan Commissioners
l which usually consists of the Governor
the Auditor and the Secretary of the
I Treasury. The next step is to pass an
] act in which the powers and authorities
! of the Board so appointed are dehnec
7 naming the limits of their power tC
] act etc, such in the amount OF the
! bonds to be issued, the length of time
/ the rate of discount or premium, the
! rate of interest and such other regula'
I itions as the Legislature may deem
| proper and necessary. including thu
form of bond to be issued by such Boare
of Loan Commissioners.
/ az have made a copy Of the form o
bond that was sent me as being thu
form used by the Mainland Territories
/ and I find that there does not seem Il
! he any reason why such bond would
4 not meet all the requirements of tn
] question here. l have merely changed
a few words, substituting the name o
I the Hawaiian Territory for that of tn
= Mainland Territory which was giveI
. and inserting the local details in tn
blanks of the form. With such mino
and unimportant changes 1 give tn
form herewith for the information o
). those who are interested in the ques
ne ton at issue
In Il understand that the legislators VIII