No. 360.
Mr. Merrill to Mr. Bayard.

No. 86.]

Sir: I have the honor to inform you that the Hawaiian Legislative Assembly was finally prorogued on Saturday, the 16th instant, after the unusually long session of five and a half months.

Upon reassembling in August last, after a vacation of two weeks, a liberal spirit seemed to be infused into the members of the Legislature, as the appropriation bill will show. Instead of reducing expenses, as recommended by His Majesty the King, and keeping the expenditures to the limit of $2,633,169, as was proposed and mentioned in my dispatch No. 74, of July 27, 1886, the amount of the appropriation bill has been increased to $4,552,477.16.

The currency bill mentioned in my No. 74, of July 27, 1886, was slightly amended and passed in the last days of £he session, and I inclose three copies of the same.

I also inclose a copy of the speech of the King, delivered by himself at the prorogation of the Legislative Assembly.

It will be noticed that His Majesty refers to the “Polynesian communities,” and hopes to assist in securing their permanent autonomy.

I have the honor, etc.,

Geo. W. Merrill.
[Inclosure 1 in No. 86.]

by authority:

AN ACT to regulate the currency of the Hawaiian Kingdom.

Be it enacted by the King and Legislative Assembly of the Hawaiian Islands in the Legislature of the Kingdom assembled:

  • Section 1. The gold coins of the United States of America are the standard and legal tender at their nominal value in the payment of all debts, public and private, within the Hawaiian Kingdom.
  • Sec. 2. The silver coins of the Hawaiian Kingdom are legal tender at their nominal value for any amount not exceeding $10 in any one payment.
  • Sec. 3. All outstanding silver certificates and all certificates to he issued under this act—except the 10–dollar certificates—whether they contain the words “silver coin,” or not, shall be redeemed, at their nominal value on demand, in United States gold coin, and all certificates so redeemed shall be forthwith withdrawn and canceled by the registrar of public accounts.
  • And it shall be lawful for the minister of finance to issue or cause to be issued from, the treasury, from time to time, certificates of deposit of the denomination of $10, $20, $50, and $100, respectively, upon transferring from the general fund and setting apart as a special deposit an equal amount of lawful coin of the Kingdom as security for the redemption of such certificates, the whole amount of such outstanding and new issue of certificates as aforesaid not to exceed, in the aggregate at any one time, the sum of $1325,000, of which not exceeding $30,000 shall be in certificates of the denomination of $10.
  • Sec. 4. The certificates provided for in section 3 of this act shall be signed by the minister of finance and countersigned by the registrar of public accounts, and the special deposit of coin in the treasury for their redemption shall be used only for the payment and redemption of such certificates, and shall he kept as a special deposit for such purpose and no other.
  • Sec. 5. Chapter XVIII of the session laws of 1884 and all other laws conflicting with the provisions of this act are hereby repealed.
  • Sec. 6. This act shall take effect from and after its approval.

Kalakaua Rex.
[Inclosure 2 in No. 86.]

The King’s speech

Nobles and Representatives: At the close of an unusually prolonged and arduous session it is “pleasing to me to have to congratulate you upon the character of the numerous measures which you have passed to which my assent has been given. Many of these measures I recognize as being of great importance in their relation to the promotion of health and education, the advancement of commerce and of manufacturing and agricultural industry, and of the general welfare of my people. Among them there are measures which give a definite settlement to questions which have been long debated, and I entertain a well-founded hope that the results of your deliberations will under a patriotic administration redound to the permanent advantage of the country.

I thank you for the liberal supplies you have generously voted for the royal family and for the administration of my Government and for the development of the resources of the country. I feel assured that the ordinary revenue of the country, augmented as it will be by the laws you have passed together with the proceeds of the loan you have authorized, will suffice to allow my ministers to carry out to the fullest extent the policy of progress and development which is embodied in the appropriation act.

It is a source of satisfaction to me that you have provided measures which will enable my ministers to carry out various matters of national policy which I brought before you at the opening of the session.

That large part of the capital which was the scene of such serious disaster in April last has, in consequence of your legislative action, been laid out anew with full regard to sanitation and to its protection from a repetition of the conflagration which laid it waste.

You have wisely provided the means for carrying out the policy of advising and aiding those Polynesian communities, of the same race as the Hawaiian which still preserve their independence. I entertain a sanguine hope that these kindred peoples will, through your liberality, be assisted to secure their permanent autonomy by the establishment among them of stable governments and a reliable administration of justice.

The subsidy you have voted for ocean steam service will secure for the country that regular and frequent communication with America which is of vital importance to the Commercial and agricultural interests of the Kingdom. Other measures for the, development of commerce and maritime enterprise which you have passed will be of permanent value.

The wants of the country in regard to its internal communications and facilities for shipping have, I am happy to say, received thorough consideration at your hands.

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I am pleased to recognize that for the proper organization of the forces of the Kingdom you have made a judicious provision of law.

Reviewing all that has been accomplished during the session I can, without hesitation, congratulate you upon the results of your labors, and thank you for the earnest consideration you have bestowed upon the important matters on which you have been called to deliberate.

I pray that the Almighty will have you in His holy keeping.

Nobles and Representatives, I now declare the Legislative Assembly of 1886 prorogued.