No. 357.
Mr. Merrill to Mr. Bayard.
Legation of
the United States,
Honolulu, September 2, 1886.
(Received October 9.)
No. 78.]
Sir: Referring to the bill authorizing a loan of
$2,000,000, mentioned in my dispatch No. 74, of July 27, 1886, I have the
honor to inform you that the same has been reported from the committee, and
after several amendments concerning the purposes for which the money shall
be expended, the bill passed the legislature, and was approved by the King
on the 1st instant. At the time of the recess of the legislature in July it
was generally conceded that no loan was required and the bill would not be
further considered, but about the time of the reassembling of the
legislature in August, Mr. H. R. Armstrong, an agent of London capitalists,
arrived, and soon thereafter the “loan bill” became a prominent measure.
After the approval of the bill yesterday, Mr. Macfarlane, a member of the
House of Nobles, also being one of His Majesty’s staff officers, sailed on
the steamer Australia for San Francisco, where, from
best information obtainable, he is to meet the London agent, who had
previously departed for San Francisco on the steamer Maravoa, leaving here August 28 on business connected with the
loan. It is generally believed, and present appearances certainly indicate,
that the bonds will be negotiated in London. I inclose three copies of the
act authorizing a national loan as authoritatively published.
I also inclose three copies of an act amendatory of “An act to encourage
ocean telegraph cables.” The original act was passed in 1884. This amendment
consists in inserting after “San Francisco,” and before the words “the
minister” in section 1, the following words, “or any other port or place on
the North American continent connecting with the American telegraph system.”
As will be noticed, the original act, offering a subsidy, confined the
terminal point’ on the American continent to San Francisco, while the
amended act extends it to any point on the North American continent.
While the legislature thus indicate a desire to increase the possibilities of
cable communication between these islands and the American continent, yet it
is generally believed that this amendment is in the interest of the Canadian
Pacific Railway Company in permitting it to compete for the subsidy offered,
and thus to aid a contemplated connection of Honolulu by cable with the
telegraph system of that company.
I have etc.,
[Page 559]
[Inclosure 1 in No. 78.]
by authority:
AN ACT to authorize a national loan and to define the uses
to which the money borrowed shall be applied.
Be it enacted by the King and the Legislative Assembly
of the Hawaiian Islands in the Legislature of the Kingdom
assembled:
Section 1. The minister of finance with the
approval of the King in Cabinet Council is hereby authorized to issue
coupon bonds of the Hawaiian Government of a denomination not less than
one hundred dollars and in the aggregate not exceeding two millions of
dollars, in the manner and for the purposes in this act stated.
Sec. 2 Said bonds shall be exempt from any
taxes whatsoever and shall bear interest payable semi-annually at the
rate of not more than six per centum per annum and shall be redeemable
not less than five nor more than twenty years after the date of their
issue, the principal and interest to be paid in gold coin of the United
States or its equivalent.
Sec. 3. Said bonds shall be signed by the
minister of, finance and by the registrar of public accounts and be
sealed by the seal of the department of the minister of finance, and
shall not be issued at less than their nominal par value in gold coin of
the United States of the present standard except that the minister of
finance with the approval of the King in Cabinet Council may allow a
commission not exceeding five per centum to any person or syndicate
which may negotiate said bonds: Provided,
however, That such commission shall not be allowed for any bonds
sold in this Kingdom or to residents of this Kingdom.
Sec. 4. The sums borrowed under this act shall
he placed in the treasury to the credit of the “loan fund,” and shall be
paid out for the following purposes and ho other:
Schedule.
| 1. |
To recall and cancel all bonds bearing 7 and 9 per cent,
interest issued under, any act of the Legislature prior to
the date of this loan, and to the interest on the
same |
$300,000.00 |
| 2. |
Encouragement of immigration |
250,000.00 |
| 3. |
Honolulu water-works |
75,000.00 |
| 4. |
Sewerage of Honolulu |
100,000.00 |
| 5. |
Improvement of the harbor of Honolulu and for new
wharves |
350,000.00 |
| 6. |
Improvement of the streets of Honolulu and roadways of the
Kingdom |
250,000.00 |
| 7. |
Interisland cable communication |
250,000.00 |
| 8. |
New bridges and landings |
75,000.00 |
| 9. |
Highway across the island of Oahu |
75,000.00 |
| 10. |
Repayment special loan |
150,000.00 |
| 11. |
Purchase steam-tug Eleu |
39,000.00 |
| 12. |
Expense floating loan, etc |
86,000.00 |
|
|
2,000,000.00 |
Sec. 5. The minister of finance is hereby
authorized to pay out of the moneys so borrowed under this act such
commission as may be allowed as commission under section 3 hereof, and
such expenses as may be incurred for preparing said bonds and
coupons.
Sec. 6. The minister of finance shall make such
proper arrangements as will enable the holders of said bonds to receive
the interest due on the same either in Honolulu or in the city of San
Francisco, or in such financial center as he may deem advisable.
Sec. 7. This act shall be in force from and
after its approval.
Approved this 1st day of September, A. D.
1886.
Kalakaua Rex.
[Inclosure 2 in No. 78.]
by authority:
AN ACT to amend Chapter XLI, Session Laysrs of 1884, entitled “An act to
encourage ocean telegraph cables.”
Be it enacted by the King and the Legislative Assembly
of the Hawaiian Islands in the Legislature of the Kingdom
assembled:
Section 1. Chapter XLI of the Session Laws of
1884 is hereby amended to read as follows:
“Section 1. Whenever telegraph communication
shall be established between Honolulu and San Francisco or any other
port or place on the North American continent
[Page 560]
connecting with the American telegraph system, the
minister of finance is hereby authorized to contract with the person or
persons maintaining such telegraph communication for the paying of an
annual subsidy not exceeding twenty thousand dollars, and for a period
not exceeding fifteen years.”
Sec. 2. This act shall take effect from and
after the date of its approval.
Approved this 28th day of August, A. D.
1886.
Kalakaua Rex.
