No. 366.
Mr. Merrill to Mr. Bayard.
Honolulu, March 14, 1887. (Received March 31.)
Sir: I have the honor to inform you that the Hawaiian Government received advices, per steamer arriving here on the 9th instant, that $500,000 had been placed to its credit at the Bank of California, in [Page 569] San Francisco, by the English syndicate, on the $2,000,000 loan account negotiated under the act of 1886. This is the first installment of the loan from England, and through unofficial, yet considered reliable, sources I am informed this amount is advanced on the condition that the money shall be expended for some one of the purposes named in the loan act, and that vouchers must be produced therefor, while the advancement of further sums will depend largely upon the judicious expenditure of this amount and the prompt payment of the interest thereon.
Priór to the arrival of the steamer many rumors were in circulation, seemingly of some authenticity, to the effect that the legislative assembly would be called in extra session for the purpose of extending the authority to borrow money, also to provide tor a contemplated trip of Her Majesty the Queen to Europe.
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I have, etc.,