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United States Department of State / The executive documents of the House of Representatives for the first session of the fiftieth Congress. 1887-'88

Hawaiian Islands,   pp. 558-592 PDF (14.3 MB)

Page 558

                    HIAWAIIAN ISLANDS
                               No. 357.
                      Mr. Merrill to Mr. Bayard.
 No. 78.]                LEGATION OF THE UNITED STATES,
                 _Honolulu, &epternber 2, 1886. (Received October 9.)
   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 ex-
 pended, 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 capi-
 talists, arrived, and soon thereafter the "loan bill" became a
 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 en-
 courage ocean telegraph cables." The original act was passed in 1884.
 This amendment consists in inserting after 11"San Francisco,"
and before
 the words "the minister" in section 1I, the following words, '"or
 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 con-
 tinent 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 possibili-
ties of cable communication between these islands and the American
continent, yet it is generally believed that this amendment is in the in-
terest of the Canadian Pacific Railway Company in permitting it to
comp)ete for the subsidy offered, and thus to aid a contemplated con-
nection of Honolulu by cable with the telegraph system of that com-
       I have etc.,
                                              GO. W~. MERRILL.

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