The Hawaiian gazette., 1917-08-07
TERRITORIAL BONDS
. IN GRAVE DANGER
|. OF NOT SELLING
Unless Purchased Locally, Con-
tempIated improvements Nay
Be Held Up, Is Report ~
BELT ROAD PROJECT
AMONG THOSE MENACED
National Governments Demand
For Funds For War Purposes
Has frightened Money Market /.

Honolulu may fail of an outside
market for the pending issue of 81 500.
900 and there may be no sale for them
IL bankers and other investors do not
come 10 the fore and purchase the
bonds either largely or in whole, in
the opinion of Governor Pinkham. He
gave out an open letter to the public
yesterday morning.
If the fears of the Governor shall be
realized many important Improvement
projects for Honolulu and the Terri.
tory will be halted and held back.
These would include the water and sew
or projects, wharf Improvement inelud-
ing the purchase of the marine rail.
way, belt line road and road work and
pier building for the other islands.
Already the road committee and the
board Of supervisors have started plans
to 90 ahead with the work of con.
structing the belt line road in the ex.
pectation of ready and early sale of
the bonds. y
Money Market Tightens 81.
The territorial treasurer is on the
mainland to arrange for the sale OF
these securities and until now no feaI
has been expressed that they would MOI
command q sale. But it appears that
the government 3 demands for money
| for war purposes has had the effect OF
| tightening the money markets Of tbs
country and that bonds which would
have been in demand six months age
are not wanted now except at higher
interest rates. .... HLf
And so il is the expressed belief OF
the Governor that if Honolulu and tbs
| Territory are to go ahead with theii
Improvement projects under the bono
| issues and at the rate of interest OF
/ their loans that were provided by tn,
| legislature, the money must be forth
coming from the people and the insti
| buttons Of the Islands and they, fol
the sake of the improvements, must b,
satisfied with n lower rate of Interest
than they might otherwise obtain.
Pinkham Thinks Sale Doubtful
In his letter of yesterday G1Serno
Pinkham says;
ITO THE PUBLIC:
l. IA thorough study Of recent bono
4 transactions in various markets includ
ing the New York City market anS
the price obtained July 10Th for
*55. 900, 100000 issue of Az per cen
of that city which set close STANDARD
for comparison and the prosperity,
enormous loans of the United State
government, lead us to believe SHOULD
our local bankers aud investors fai
to largely or wholly purchase our pend
ing issue of one million Ave hundred
thousand ($l,50O. OOOOO) four per cen
bonds we may fail of market
"The increase of the price Of suga
indicates we have the means of finan
cial support of one territorial govern
ment.
''The legal restrictions Imposed b.
the Legislature contemplate only a
amply supplied and easy money mark ct
81 am convinced local investor
could. if they chose, take largely o
this issue and thus public works coul,
he carried out as proposed by the lcgis
laturP,
"ThP treasurer of the Territory vii
at once advertise these bonds for T,IC
"Shoull there be any disappointment
it must he attributed 70 war conditions
90 Respectfully,
"LUCIUS L. P1NKHAM
|, "GQyernor of Hawaii