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United States Department of State / Index to the executive documents of the House of Representatives for the second session of the fiftieth Congress, 1888-'90

Hawaii,   pp. 832-875 ff. PDF (19.9 MB)

Page 832

                               No. 603.
                     Mr. Merrill to Mr. Bayard.
No. 138.]                 LEGATION OF THE UNITED STATESA
              Honolulu, August 26, 1887. (Received September 14.)
   SIR: I have the honor to transmit herewith copies of an "interme-
 diate report of the minister of finance,"* containing a statement of
 receipts and expenditures of the Hawaiian treasury for the fifteen
 months ending June 30, 1887, when the present minister assumed
   The statement shows that of the two million loan authorized by the
last legislature, $1,000,000 have been borrowed in London and $500,000
in Honolulu, only $1,264,699.26 of which has been netted the Govern-
ment in Honolulu and San Francisco, the balance, amounting to
$235,300.74, having been absorbed for expenses of floating the loan
and interest-retained by the London syndicate.
  The syndicate in London, it appears, hascharged interest on $1,000,000
for six months ending June 30, 1887, whereas the money was not paid
until May and June last.
  The loan act authorizes the expenditure of only $100,000 for floating
the entire loan of $2,000,000, while there has already been charged
against the Government $205,300.74 on account of loan of $1,500,000,
besides the $30,000 interest retained in London.
  I am reliably informed that it is the intention of the present minis-
ters to allow to the London syndicate only the 2 per cent. discount and
5 per cent. commission authorized by the loan act and interest on
amount borrowed from the date of its reception by the Hawaiian Gov-
ernment, and, further, that it is not the intention to place any more of
the two million loan in London, but to borrow here as needed.
  For a detailed statement of the transactions concerning the amount
borrowed under the loan act I respectfully refer to pages 2 and 27 of
the inclosed report. The indebtedness of Hawaii on the 30th of June
last, including the new loan of $1,500,000, amounted to $1,721,000, one
million of which is owing in London.
  I also most respectfully call attention to the statement, on page 6, of
the minister of finance, concerning cable communications with America.
The Mr. Coate therein- referred to remained here about one week last
month while en route to Australia. and it is with the intention of mak-
ing cable connection between these islands and Victoria, and in the in-
terest of the Canadian Pacific Railroad, that he asks for the three
years' exclusive privilege of landing a cable and the subsidy of $20,000
per annum.
  The annual subsidy of $20,000 for maintaining telegraphic commu-
                        . Not printed herewith.

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