Newspaper Page Text
THE MAUI NEWS, FRIDAY, JUNE 22, 1917.
Some Economic Effects
Of The Liberty Loan
What ho railed" ft straight talk
about this financial, this colossal fin
ancial, operation that we are facing,"
was made at Albany last monlh by
Frank A. Vanderlip, president of the
National City Bank. He began by
noting that the American public had
been "a good deal dazed by the size
of this loan." In fact the authoriza
tion of a $7,000 000,000 credit was
"something of a shock to the country."
One way to realize what such a sum
means was to consider that all the
stocks listed on the Stock Exchange
"are less than twice that amount";
that all the stocks of all the railroad
companies in the country aggregate
only $S, 700.000,000, and that all the
bonds of the railroads in the country
are little more than that figure. And
yet that, huge total must be raised
this year. After the first instalment
of $2,(100.000,0(10 shall have been
raised there will be other loans to
take up. While the loan in total is
inromprchonsively large, "so is the
country, so are our resources." Nat
ional bank deposits in this country
have increased In ten months
$2.000,oiio,i)(io, or enough to take up
that part of 1he issue now being offer
ed. In total, the resources of the
banks in th's country are about
$?,:,, 000 000,000. Huge as this loan
therefore is. it is not so largv when
you measure it by some of the other
totals of the country. Our national
wealth is now about $220,000,000,000,
from which it appears that if the peo
ple subscribed only fr,r of their wealth
they would "oversubscribe this issue
about six times." In the Civil War
days, with bank resources one-twentieth
of what they are now, the country
ra:sed $3,000,000,000, which shows
clearly that we are not now "facing
an impossible proposition."
Nevertheless, Mr. Vanderlip assured
his auditors that we wrere "confront
ed by a serious proposition we are
up against the necessity, the very
great necessity, of doing this thing."
tremendously rich as we are, our
wealth being about $220 000,000,000,
this wealth is in farms, railroads,
factories, and instruments of produc
t:on. And "you can not subscribe a
railroad to a loan. A war Is "the
current effort of a nation; nothing
that has been done in the past can
fight it"; and so it must he fought out
of the current saving of the nation,
since all the saving of the past have
been invested. Saving of the past
have been invested in fixt forms of
capital: they are in railroad, farms,
and factories. Money that is now to
be ra'sed for war in consequence
"must come from the saving of the
future, not the savings of the past."
Mr. Vanderlip saw no reason for re
garding investment in this loin a '
the nature of a patriotic sacr'fic. The
public pre "offered a bond which ( '
yond question the finest piece of
paper in the world " While the rate
3 per cent. looks low, "there ar
perquisites attached to that bond.'
Its income Is free from taxation and
if war goes on for n good while, the
chances are good that the rate will be
more. No one is "going to be penali-
1 by be'jig a subscriber to the first
Whenever a subsequent loan comes
out at a higher rate, first subscribers
are going to he in just as good condi
tion as tardy subscribers. No one
can doubt that when the war is over
and pressure is off the market for
Government loans "there will be a
r',se in the value of Government
bonds." Ttonds bought now and bear
ing 3Va per cent, "have a practical
guaranty of parity, that is to say, if
events go so that' the Government
can't raise money at 3V4 per cent,
these bonds will be convertible into
the higher rate, and the nr'nute the
war is over your bond at par will com
mand a premium." He could not
think of a situation that would not
find these bonds "bearing a premium
on their 'ssue price after the war is
over." The Investment Weekly (for
merly Moody's Magazine) has said on
"It is a sort of Government-guaranteed
speculation. If exhaustion of
capital compels higher interest-rates,
the rate on this loan will rise with
them. That practically guarantees
the present bonds againtt a decline
in price and they have a spendid
prospect for an advance after the war
is over. rnitod States Government
credit has generally been on a basis
I of 3 per cent or lower, which would
I mean 117 for a 3! per cent, bond, 133
j lor a 4 per cent, bond, and 150 for a
4',6 per cent, bond, If the Govern
im.nl h.ni! tn ism bnnds nt 4 rter cent.
before the war Is over which is like
ly the present 3Vfes will be convert
ed into 4s, and if the Government's
credit after the war returns to a 3 per
cent, basis, the liberty Loan will sell
at 133. And, so far as can be judged
now, this looks like the most probable
outcome. A speculation which is
practically guaranteed against decline
by the I'nited States Government and
yet has a strong probability of appre
ciating one-third in price is certainly
very attractive. Other securities
might rise even more, possibly, but
i hey lack the Government's guaranty
Mr. Vanderlip believes that this
loan and others which this country
may make are "going to mean some
ihlng besides patriotism in America."
They are going to bring a new element
into American life, elements of econo
my. We "have got to have it," said
lie, "just as certa'nly as we have got
to hive this expansion of credit to
make this loan a success, because
the banks must be paid from future
income and there must be economy to
permit that being done." We shall
(ind it impossible to "give the Govern
iimet seven billion dollars or any
other number of billion dollars of pur
chasing power and expect to have
just as much purchasing power our
selves." To do that "would be a mira
cle of loaves and fishes that we can't
work out." Teople must economize,
must see that what they spend they
spend for ncceessUies and not for
But there will be "gains for all our
losses." If we loan three billion dol
lars to the Allies our international
trade conditions are going to be im
proved, to be very greatly Increased.
All the energies spent on the war will
not be wasted. There will be new
processes evolved, there will be new
lessons learned in speeding up indus
try that wMl prove of great value." He
recalled that Huxley-rrussian War to
France and the whole indemnity
"were made up by the discoveries of
Louis Pasteur and their effect on the
:..Aai,.ina onrl life of France." If
only we can get a considerable num
ber of ten million people umi mis
subscribe to contract the habit of
thrift, "we will have made great pro
gress." For the success of this loan,
a successful prosecution of the war,
and the making of the sacr'fic "will
bring to us a victory which will be
greater than anything we can get from
Germany a moral victory within our
selves." Having grown luxurious ana
careless, we have "needed tnis great
Mr. Vanderlip made an impressive
reference to our natural wealth, but
few people have ever realized how
tremendous it has become. A state
ment recently put out by the Mechan
ic nrl Motnla National Bank, of New
York, set forth that while this wealth
measured in terms of money, is
roughly $250,000,000,000," one can bet
ter appreciate what the figures mean
when it is remembered that this sum
is "more than double the wealth of
any other single nation; indeed, it
exceeds the combined wealtn ot me
world's three other greatest Powers
the British and German empires, and
the French republic." Our wealth is
"three times the wealth of Germany,
four times the wealth of Russia," and
more than the wealth of all Continen
tal Europe outside of Germany. It
is one tlrd of the reckoned wealth
of the world. In the Civil War, 18G1
fir, the sum total of the nation's mat-oi-ioi
rosniirceu was annroximately
one-tenth of what it is at the present
time. At. tne time or me ispaniMi
American War in 1898, it was one
third. The wealth of the United King
dom required a century to increase
s'.xfold; so also did the wealth of
Fraiwe. The wealth of the German
Empire increased sixfold in eighty
years, but the wealth factor in the
I'nited States has increased sixfold
in forty years, and is now more than
$2,400 per capita. Half a century ago
lit was $750 per capita. Literary Dig
IRcw Mall papers
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Lewers & Cooke, Ltd.
169-177 South King Street HONOLULU
Wailuku Construction and Drayaye Co., Ltd.
TRANSFERING AND DRAYING
Notice is hereby given that until
further notice the shipment of all
animals or hides from the Island of
Maul to other Islands of the Territory,
or to the Mainland is prohibited on
account of the presence of anthrax on
BOARD OF AGRICULTURE AND
J. C. Fitzgerald .Veterinarian.
IN THE CIRCUIT COURT OF THE
Second Circuit, Territory Of Hawaii.
At Chambers. In Equity.
C. D. LUFKIN, Trustee, Petitioner
GRAND HOTEL COMPANY, LTD.,
COMMISSIONER'S NOTICE OF
NOTICE IS HEREBY GIVEN that,
pursuant to a Decree rendered by the
Honorable W. S. Edings, Judge of the
Circuit Court, Second Circuit, Ter
ritory of Hawaii, on the 7th day of
June, 1917, in the above entitled ac
tion, wherein the Petitioner seeks to
foreclose that certain indenture of
mortgage made and entered into by
the Respondent to the Petitioner un
der date the 2Sth day of November,
llilG, and In which action ,nnd by the
said Decree rendered therein the un
dersigned was appointed Commission
er of the Court In the foreclosure and
sale of the property covered by the
said mortgage, I will, on Saturday,
the 11th day of July, A. D. 1917, at
12 o'clock noon of said day, at the
front door of th Court House in Wai
luku, County of Maui, Territory of Ha
wa'i, sell at public, auction, to the
highest and best bidder therefor, the
property described in and covered by
the said mortgage sought to be fore
closed, both real and personal, to-wit:
All of that certain piece or parcel
of land in the III of Owa, situate on
the southerly side of Main Street and
on the makai side of Church Street,
in the Town of Wailuku, County of
Maul, Territory of Hawaii, being a
portion of Apana 1, L. C. A. 1742 to Z.
Kaauwal an ddescribed by metes and
bounds as follows:
Beginning at one cut on the South
side of sidewalk with an iron pipe
driven, on the west angle of this lot,
and running by true azimuths describ
ed as follows:
1. 345 13' 315.0 feet along Church
along picket fence
.to " galvanized
pipe at R. W. Post,
being the South angle
of this lot;
2. Thence 123.5 feet along Wells
Street, along fence to
center of R. W. Post
at corner of rence;
3. 1C5 13' 316.0 feet along Wailuku
Sugar Company along
fence to sidewalk at
V galvanized pipe;
4. 74 20' 113.5 feet aong Main Kahu-
lul road, along side
walk to point of be
38,964 square feet.
Also all furniture, fixtures, auto
mobiles, horses, carriages, hotel equip
ment, merchandise, books, accounts
due and to become due contracts,
benefits, chattels and effects of every
character and nature whatsoever, at
present acquired, as well as all such
property as may from time to time
hereafter be acquird, located and from
time to time to be located in, and con
nected and having to do with, and
forming a part of the Grand Hotel
Said sale to bo in all ways subject
to approval and confirmation by the
Dated at Wailuku, Maui, Territory
of Hawaii, this 12th day of June, 1917.
E. R. BEVINS,
(June 15, 22, 29; July 6, 13.)
Sealed tenders will be received at
the County Clerk's Office up to 10:00
o'clock A. M. Saturday, June 30, 1917,
for the construction of a Two Bed
Koom School Cottage at Spreckelsville
School, County of Maui.
Plans and specifications may be had
at the office of the County Engineer
upon application and a deposit of Five
Dollars for the return of same.
All tenders must be accompanied
by a certified check to the amount of
5 percent of the tender.
The Board of Supervisors reserves
the right to reject any and all bids.
By the order of the Board of Sup
ervisors, for and within the Coun
ty of Maui.
Wm. FRED KAAE,
(June 15. 22, 29.)
IN THE CIRCUIT COURT OF THE
Second Circuit, Territory of Hawaii.
In the Matter of the Estate of
EDWARD H. BAILEY,
Late of Wailuku, Maul, Deceased.
Petition of Willam O. Smith and C. D.
Lufkin, Executors of the Above Estate,
for Approval of Accounts, Distribution
IT IS ORDERED, that Thursday,
the 26th day of July, A. D. 1917, at
10 o'clock A. M., be and the same is
hereby appointed for hearing said
Petition, in the Court Room of this
Court, in Wailuku, Maul, Hawaii.
Dated at Wailuku, Maui, June 5th,
TERRITORY OF HAWAII BOARD OF
COMMISSIONERS OF AGRICUL
TURE AND FORESTRY.
Division of Animal Industry.
RULE AND REGULATION of the
Board of Commissioners of Agricul
ture and Forestry concerning the qua
rantine of all domestic anlmnls on the
Island of Maul, on account of Anthrax
and Hemorrhagic Septicemia.
Owing to the fact that diseases
known as Anthrax or Charbon, and
Hemorrhagic Septicemia, which affect
most classes of domestic animals, and
the former of wh'ch may be transmit
ted to man, have made their appear
ance on the Island of Maul, it is here
Section 1. That there is hereby de
clared a quarantine of the Island of
Maui, and no domestic or other ani
mals of any class or kind or their pro
ducts shall be shipped from or be al
lowed to leave the Island of Maul un
til this quarantine has been lifted by
the Board of Agriculture and Forestry,
or on written permit from said Board.
Sect'on 2. That the Territorial
Veterinarian or his deputy shall pro
claim special quarantine on such sec
tions of the Island of Maul where
these diseases may prevail. Such
specvil quaratine to be enforced In
accordance with the direction of the
Territorial Veterinarian or his deputy.
Section 3. 'That it shall be the duty
of any person, or persons, whether
owners of live stock or not, to report
without delay the appearance of any
kind of dir.ease among live stock to
the Territorial Veterinarian, his assis
tant or deputy, as well as to assist
him in every way to locate control
and suppress any and all cases of the
diseases in question.
Section 4. Any person violating
the above rule shall be guilty of a
misdemeanor and upon conviction
thereof shall be punished by a fine not
to exceed five hundred dollars ($500.)
as provided by Sec. 529, Revised Lawrs
of Hawaii of 1915.
This rule shall take effects upon
Its approval by the Governor of Ha
waii. Approved this 13th day of June,
LUCIUS E. PINKHAM,
Governor of Hawaii.
Territory of Hawaii.
Enos Vincent, nttorney for said estate.
Terms cash, deed at expense of pur
chaser, JOHN W. KALUA
Adm'nistrator of said Estate.
Attorney for said Estate.
(June 1, 8, 15, 22, 29.)
NOTICE OF SALES OF LICENSES
NOTICE OF ADMINISTRATOR'S
SALE OF REAL PROPERTY.
Not!ce is hereby given that, as ad
ministrator of the Estate of Leonul
leke, late of the Island of Molokai,
deceased, and under and by virtue of
an order granted by the Hon. W. S.
Edings, Judge of the Circuit Court,
Second Circuit, Territory of Hawaii,
licensing me to sell certain real pro
perty belonging to said estate, I shall
on Saturday, the 30 day of June, 1917,
at twelve o'clock noon at the front
entrance to the Court House at Wai
luku, Maui T. H. sell at public auct'on
to the .highest bidder the following
All that certain piece or ' parcel of
land situate on the Island of Molokai
and described in R. P. 6133 to J. K.
Leonul, being Lot 1 oii Homestead
Map 23, 4th Land District, and con
taining an area of twenty acres.
Sale to be made subject -to the con
firmation of the Court.
For further particulars apply to
At 12 o'clock noon, Thursday, June
2Slh, 1917 ,at the front door to the
Court House, Wailuku, Maul, there
will be sold at public auction the fol
lowing licenses to gather algaroba
(1) On the Government land lying
between the beach and the makai line
of the Waiakoa Homestead Lots, Kula,
Maui. Excepting therefrom two (2)
acres of land lying makai of lots 1
and 2 of the above Homesteads, which
are now held under lease.
The license is to give the right to
gather algaroba beans from said strip
and to make such use of the lands as
will not Interfere with the free pas
sage of the homesteaders from their
lots to the beach or across said lands.
Terms of license, one (1) year from
July 1st, 1917.
Upset rental, $150. per annum, pay
able, in advance.
(2) On the Government Reserve,
known as Lot 21A of the Kamaole
Homesteads, Kula, Maul.
This license is to give the right to
gather algaroba beans from the said
lot and to make such use of the land
as will not interfere with the free
passage of the homesteaders from
their lots to the beach or across said
Terms of license, one (1) year from
July 1st, 1917.
Upset rental, $150 per annum, pay
able in advance.
The licensees will be held responsi
ble for all illegal wood-cutting.
Reservations regarding land requir
ed for agricultural, homestead, re
clamation, . settlement or public pur
poses will be embodied in" these licen
ses. The purchasers shall pay the cost
For maps and further information,
apply at the office of the Sub. Agent,
Mr. W. O. Aiken, Paia, Maui, or at
the office of the Commissioner of Pub
lic Lands, Capitol Building, Honolulu,
WALTER A. ENGLE,
Acting Commissioner of Public Lands.
Dated at Honolulu, June 8th, 1917.
(June 15, 22.)
IN THE CIRCUIT COURT OF THE
Second Circuit, Territory of Hawaii.
T. NAKANO, Libellant
OKADA DITSUYO NAKANO, Libellee
To Okada Ditsuyo Nakano, Libellee.
You are hereby notified of the pend
ency of the above suit for divorce
against you on the grounds of utter
and wilful desertion, and that the
same has been set for hearing on
Thursday, the 16th day of August, A.
D. 1917, at 10 o'clock A. M. in the
Court. Room of this Court, in Wailuku,-
Maul, Hawaii, or as soon there
after as the same may be heard.
Wailuku, Maui, June 7th, 1917.
By The Court:
V. C. SCHOENBERG, Clerk.
Attorney for Libellant.
(June 8, 15, 22, 29, July 6, 13.)
By Deputy Territorial Veterinarian
In accordance with Rule 12 of the
Board of Agriculture and Forestry,
pertaining to the suppression, control
and eradication of Anthrax, the fol
lowing districts or paddocks are here
with declared quarantined in so far
as all live stock and other animals
and their products are concerned.
1. The Apana paddock. (Haleakala
2. The premises nt Makawao own
ed or controled by Miss Crook.
3. The Home paddocks of the Hale
4. The Mallko Pasture and Adjoin
ing Paddocks of the M. A. Co.'s Grove
5. The Camp Seven Pasture, Kihel,
of the Hawaiian Commercial and
6. The Kihel Pasture (Camp Kihel)
Hawaiian Commercial and Sugar Co.
7. The Upper Kula Road from the
Postofflce corner at Makawao to the
8. The Road leading by the Apana
Pasture from the Post office corner' at
Makawao to the ruukalani Road.
9. The Old Kula Road from the
Camp Six road to the Maaloea Road.
10. The Road through the Pasture
from Kaluanul to Hamakuapoko.
11. The road through the Camp
Seven Pasture to Kihel.
Until further notice no live stock
can be taken Into that part of East
Maui which lies East of the Kaklpi
Gulch without special permit.
Live stock from all other parts of
Maul intended for shipment to Hono
lulu must be accompanied by a special
permit Issued by the Deputy Terri
torial Veterinarian. Application for
such shipment should be made at least
forty-eight (48) hours previous to the
day of shipment, will be issued for
P.ve stock Intended for immediate
C. J. FITZGERALD,
Deputy Territorial Veterinarian.
WAILUKU, MAUI, T. H.
Dinner parties given special
Cholly (to shopman) "I say aw
could you take that yellow tie with
the pink spots out of the showwlndow
Shopman "Certainly, sir. Pleased
to take anything out of the window
any t'.me, sir."
Cholly "Thanks, awf'ly. The
beastly thing bothaws me every time
I pass. Goodmawning." Christian
One day little Flora was taken to
have an aching tooth removed. That
night, while she was saying her pray
ers, her mother was surprized to hear
her say: "And forgive us our debtB as
we forgive our dentists." Everybody's.
Village Pacifist (as the Salvation
Army passes) "Oh, it's all right. I
alnt sayin' 'taint. But it's fosterin'
th' martial speerit jes' th' same."
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It will furnish 40 to 50 lights for
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separator, pump, washing ma
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Delco-Light is so simple that
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THE HAWAIIAN ELECTRIC CO.,Ltd.
By The Court:
V. C. SCIIOENBERG, Clerk.
(June 8, 15, 22, 29, 26.)