Evening star., 1901-08-07
AFFAIRS IN HAWAII
W. F. MacLennan's Observations in
It tile Islands.
WENT FdPAfOFF NATIONAL DEBT
Urgent Need of Cable to
n Honolulu.
DEMAND FOR LABORERS

Mr.. w. F. MacLennan. chief Of the book
keeping and warrant division of the treas
| ury, resumed his desk at the department
today after an absence Of three months.
during which he has been in the Hawaiian
Islands in connection with the payment OF
the Hawaiian national debt Mr. Mac
Lehman was deputed by Secretary Gage last
April to go to Hawaii and supervise the
| liquidation of this obligation, payment CT
| large proportion of which was assumed
| by the United States government upon the
annexation of the islands. The debt
amounted to S4.1s64O0 including a large
amount of postage savings bank recipes,
! and was contracted both under the mon
archical and republican forms of govern
ment the proceeds being devoted mainly to
expenditures necessitated by insular i'm
provements in contemplation. The Ameri-
can government, upon annexation. assumed
the payment of $4,0OO,OO0 of these bonds.
The Hawaiian Debt.
In speaking of the result of his mission,
Mr.. MacLennan said to a Star reporter
this afternoon:
'These bonds were Of different varieties.
including the 500 and 1890 year classes
bearing interest at AZ, and per cent a
year. Embraced In the congressional reso-
| luton anneXing the islands was provision
contemplating their payment by the United
States but it was only at the last session
OF Congress that the necessary funds for
| their liquidation were appropriated. The
holders of the bond were located at va
| flouS places throughout the country and In
| London Payment was made through the
First National Bank of Hawaii. located at
Honolulu and of the $4OOO,O00 worth
authorized to be discharged, all was paid
with the exception of S32,OO0 in bonds,
! which still remain unpreSented by the hold
ers. Many of these bonds were held by res
idents of the United States. The city of
| San Francisco, for instance, presented
1864 100 worth. A total Of S1,25S.200 was
paid to persons living in Honolulu and
other points in the islands. while holders in
| London have in their possession 81, 900 $50
worth. which will be payable on December
81 next. The postal savings banks accounts
which were paid by the government
amounted to S764,570 This sum included
deposits made by Hawaiians under the
postal savings system. All the receipts
thus obtained by the local government were
expended in one form or another that
| when the affairs of the postal bank were
examined not one cent of available cash
was discovered The whole amount, there
fore, fell upon the United States for pay
ment." b,r b
| upon his trip Mr.. MacLennan added:
| From what Itsaw the Hawaiian Islands
| will cost the United States a vast sum of
money before they completely Ameri-
| caniZed. American institutions, while max
Ing rapid inroads. are not yet as thorough
| ly established as they might be, but of
! course, 1t requires time for such develop
| ments, andG altogether the progress made
in this direction is satisfactory. While
Hawaii will cost this government great
| amount of money there is everything to
lead to the belief that will receive in
| return equal benefit in one form or another
| as an inevitable result.
Need of a Cable.
"One thing must be accomplished in this
connection, however, and the sooner the
better. That is the laying Of the Ha-
| waiian cable. There is general demand
| for this instrument Of rapid communica-
| ton throughout the islands. Business in
| terests demand it, and the people are ex-
| tremely desirous of securing it. Sooner
| later 1t must come. AS the situation now
stands it requires a week for communica-
| tion between the Pacific coast and the
| islands, and in view of the fact that an
| enormous quantity of business is being
| transacted between the two points an elec-
| readily acknowledged as an absolute neces-
| sity. This business is constantly growing,
| and consequently the demand for the cable
| increases proportionately.
| 1.-The state of finances in the islands is
| so far as my observations led me, excel
| lent. There seems to be abundance of
| money, prices are good, labor is in great
| demand, and from the financial viewpoint
|
| prevailing throughout
| LabOrers Wanted.
"The labor question, by the way, is prov
| ing a very serious problem with the en-
ployers of the eight inhabited islands Of the
archipelago. When Hawaii was annexed the
inhibitory alien contract labor laws were ex-
tended to that Jurisdiction. Prior to that time
| Hawaiian planters had experienced no diff
| Guilty in procuring abundance of hands
for the operation Of their farms but now
| there seems to be a dearth Of labor, so
| much SO, In fact, that the question has
assumed a very perplexing aspect. Chinese
| exclusion, as is well known, now operates
throughout the islands, so that the vast
quantity of planting hands previously Sc
| cured from China has been cut off. The
| laboring element in Hawaii consists of
| Chinese, Japanese and Portuguese, princi-
| pally. The Chinese however, make the best
| laborers, and are, therefore, the greatest
| in demand, but, owing to the application of
4 United States laws. the services of newly
| imported Cinnamon can be secured no more
| American hands cannot be enticed to work
| there. In the first place the wages paid are
| not as high those available in the main
| land here, and, secondly, the climate is not
| agreeable to persons born and raised in
| this zone. The American element Of labor
| in Hawaii, therefore, is small Recently
| great many Porto Ricans have been i'm
| ported as farm hands, but the number has
| not been large enough to fill the demand,
| and the relleI from THIS direction has been
! limited.
DiscOrd In the Government.
"A subject that has also been attracting
| a great deal of attention throughout the
| islands recently is the discord that exists
| between the executive and legislative
branches Of the local government. It seems
| that the natives element predominates in
| the territorial legislature, and its policy
and action in the past has not agreed with
that of the more progressive or American
| element, which il in the minority. Recently
| the governor ofsthe territory submitted to
| the legislature q number of local appoint
| ments, and, owing to native opposition,
| some of them failed Of confirmation, The
| action of the Legislature, therefore, was
| not of harmonious nature and caused
considerable feeling throughout the islands.
| The legislature pdjourned some time ago
| without taking action on some of these
| nomination., but will reconvene shortly,
| when an effort will be made to effect com
plete harmony between the two branches
| Of the government involved.
TheeHawaiian Character.
'Tt cannes be sainsaid that the native ele-
ment of theeislands Is not so progressive