Mr. Merrill to Mr. Bayard.
Honolulu, January 17, 1887. (Received February 3.)
Sir: I have the honor to inclose herein three copies of the quarterly statement of the revenue of the Hawaiian treasury, published “by authority,” showing the receipts and expenditures for the quarter ending December 31, 1886.
Among the expenditures the $150,366.62 itemized as “special loan” represents the sum paid Spreckels & Co., being the full amount due that firm for accommodation loans, concerning which there has been [Page 568] some newspaper comments and rumors of repudiation by the Government on account of their supposed illegality. The only remaining indebtedness of the Government to Spreckels & Co., outside the subsidy accruing monthly to the steam-ship line, is on bonds not yet due, which, I am informed, the Government offers to pay at par, but the holders decline to surrender.
I have, etc.,