The Hawaiian gazette., 1910-01-25

treasurer will probably take advantage
Under the existing law the territorial
bonds must all be five-ffteens; that is,
they are redeemable in five yeas and
payable in fifteen. There is never as
much call for short term bond as
for one which has a longer time to run
and the fye-ffteens have never been
received with the favor due a terri
torial security.
There are now redeemable two issues
of territorials of 100000 each. One
of the issues is bearing interest at
the rate of four and one-half per cent
while the other draws four and a quar-
ter. The first of these issues became
redeemable last year, while on January
2 the other followed
The last issue of territorials made
bears interest at the rate of three and
one-half per cent, and that brought
1925, despite the fact that they are
short-term securities.
Under the existing laws the treasurer
has power, with the approval of the
Governor, to issue refunding bonds suf-
fcient to redeem any outstanding bond
ed Indebtedness which may be redeem
able. The law simply specifies that the
refunding bonds must not be disposed
of at figure less than par. Consider
ing the fact that fve-fifteens bearing
three and one-half per cent interest
brought 9s.25, there is every reason to
believe that a thirty-year bond, bearing
the same interest, would bring par or
| better. In fact, 101 would not be too
much to expect.
One million dollars worth of three
and half per cent bonds, with thirty
years to run, would doubtless be
snapped up in short order at figure
considerably better than par.
That million dollars worth Of such
bonds could be disposed of without GO
ing outside the Territory is practically
certain. 1t is almost an impossibility
and territorials are not to be had at
any price. Bankers and brokers yester-
day seemed heartily in favor of re.
funding issue of thirty-year securities.
olaa Bond Issue.
| On February ! the present outstand-
ing issue of $1,250,000 of Olaa bonds
will be refunded and new series
amounting to $2,500,O00 will be issued.
Holders of the old bonds will be paid
either in cash at par, or with bonds Of
the new issue at 90. The entire new
issue of $2,500,000 has been under
written by local capitalists.
A new period of prosperity seems
ahead of olaa. The plantation is with.
drawing largely from the higher levels
of the Mountain View district, and
planting is being done on the lower
levels on the land cleared by the Pahoa
Lumber Company and the fields Of the
old Puma Sugar Company. The latter
! fields are being titled under a new meth.
cd and give promise of being very pro-
| ductive.
The new issue of bonds are ten.
twenties and will bear interest at the
rate of six per cent
| Smyrna Tobacco.
Smyrna tobacco will soon be grown
on the Island of Kauai. A hui of Greeks
has secured land ON the Garden Island
and will proceed to plant it at once,
Seed has been received from Smyrna
and the land has already been cleared
and is in readiness for the planting. 1t
| is believed that the climate of Kauai
will prove particularly suitable for the
cultivation of high'grade Smyrna to-
bacco.
Stock Market.
The stock market was particularly
| active all last week, and exceptionally
high prices prevailed as general thing.
Oahu was in particular demand and the
shares reached high water mark. EVA
was also very popular and followed
close in the train of Oahu.
Among the low-priced stocks there was
unwonted activity and both Olaa and
MeBryde climbed upward. McBryde
kept the lead until late in the week
! when olaa took squirt and caught up
Yesterday there was slight falling
off in prices and trading was light, but
this was easily accounted for by the
rapid advance In 80 many Of the shares
during the week.
Bonds were In big demand but there
we're few in sight. A few purchases
were recorded but those holding secnr
tiles showed no desire TO let 60.
Good Buy.
DR.. George Herbert yesterday bought
at foreclosure auction the Auerbael
premises al Matlock avenue and Keeau
moku street, ki1ty'6ye hundred dollar
WAS the purchase price, A tw0'sior,
house occupies the premises and tho bu,
IL considered a particularly good Que
'fhe house is the ons at present oe
oupled by n0eiof Herbert.
n ~ n0fffA HAalaa4ad