No. 358.
Mr. Merrill to Mr. Bayard.

No. 84.]

Sir: I have the honor to inform you that a change of ministry is officially announced this morning, as follows:

His excellency Walter M. Gibson, minister of foreign affairs and premier, vice his excellency Robt. J. Creighton, resigned;

His excellency Paul P. Kanoa, minister of finance, reappointed.

Honorable John L. Kaulukou, attorney-general, vice his excellency John T. Dare, resigned.

Except his excellency Walter M. Gibson, the ministry is now composed of natives of this Kingdom who speak only the native language.

The immediate cause of the resignation of the ministers was their defeat, by a majority of 10, on an amendment offered by the attorney-general to section 4 of the act authorizing a national loan. The proposed amendment reads as follows:

Provided, That hereafter no bonded debt shall be incurred nor any bonds issued prior to the maturity of the bonds issued hereunder unless provision be first made for the payment of bonds issued under and in accordance with the provisions of this act.

Notwithstanding Mr. Gibson was one of the ministers voting with the minority he was again called to form a new ministry, which includes Hon. John L. Kaulukou, also one of the members of the Legislature, and an active supporter of the amendment.

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I have, etc.,

Geo. W. Merrill.