The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1858-07-01
Correspondence of the Commercial Advertiser,
The Finance Rcpors Again.

Mr.. EDITOR In your article last week, headed
Financial Affairs of the Kingdom are several
mistakes, which l think ought to be corrected. The
financial situation of the kingdom is no doubt bad
enough, hut I submit to you whether it is likely to
be amended by misrepresentation.
You state that the total receipts of the two years
were $685., 13S 81. This is an error. as the amount
st ted includes not only the receipts for the two years,
but also the cash on hand, April LIST, 1856, which
latter is certainly no part of the receipts. the actual
receipts are twice stated in the Report (once on the
first page and again on the Sth) as being $639,041
%. %
rectly stated as being S60,679 Is, (2) but the next
sentence, in which Won say that g the interest on
about twothirds of this debt is stated to be Is per
cent. - is grossly incorrect. as no such statement is
made. The liabilities consist of a number of items,
some of which draw interest and others do not. The
former are thus stated in the Report
Exchequer Bills. at an average int'st of 16 10 pr. Ct, s2s. $50 90
Bills Payable. at an average of II per CENT 22Ioo0 90
r. c. WyDie, 1850 oo
s52,sso 90
The iatter-viz, items which draw no interest, and
to 5000 Is
Total Debt. sso.e79 Is
| may here add (what you will find stated on the
third page Of the Report) that only 1888 D of the
Government debt draws interest at Is per cent.
Your remarks in relation to the Exchequer Bills
issued TO the President of the Board Of Education, are
also considerably out of joint. The Minister is not, as
YOU say, . impressed with the illegality of the trans
action nor does he call upon the Legislature to
enact a law making the permanent loan legal" He
merely a change in the form of the debt.
As long as it is represented, as at present, by Exche-
ouer Bills, the bills must be renewed every two
years-an operation inconvenient, and attended with
somo risk both to the Treasury and to the Depart
ment of Public Instruction. Hence, the Minister'S
recommendation, intended, not to legalize a previous
illegally, but to alter the form of the debt in such a
manner AS to obviate the inconvenience and risk
Adore mentioned. Yours, respectfully,
II. w. McCouGHrRY,
Register Pub. Acc'ts.
REMARKs.-It would seem by the above that the
s. Register of Public Accounts - is very anxious to
appear at loggerheads with the Commercial. We
have but a word or two to say in reply.
ID In our review of the Finance Report, last
week. we distinctly gave the items of the two years
receipts, Tor resources, if you prefer,) as follows:
Balance on hand, April /, 1885, s2soo6 81
Amount borrowed III. Exchequer Bills, zs,.oo ~
Balance of amount borrowed from r. G. Wynie, l6So 90
Receipts from duties, taxes aud all other sources ooo'ooi 2
Total Receipts, s661,l3s Ca
The IS cash on hand,' or balance from the previ-
Gus year, is distinctly stated to be s2s, 09e 81 and
the veriest ignoramus, reading the statistics, could
not be deceived by our statement.
(2) The paragraph in our article to which allu-
is next made, contains an omission of a sentence
of the copy, which error was noticed as the edition
was being worked off, but too late to be corrected till
this issue. 1t should have read:
"The liabilities of the Treasury or public debt is S6o,679 Is.
The amount issued as Exchequer Bills, under authority of the
last Legislature, is S2S $50. The interest on about two-thirds OF
this debt is stated to be Is per cent. and on the balance IL per
cent &c.
(3) Whether loaning the funds of one depart
ment to another department of government, is strictly
:" Illegal may be a question of doubt. That there
is no law on the subject in this country. does not
make a transaction legal here. which in other coun-
tries or states is said to be illegal. For instance, il
the Minister of War should have chosen to withdraw
from the public Treasury, on the LIST of january,
1853, the unexpended balance which may have been
left of that appropriation, and given his note to the
Treasury for the same, amounting, we will suppose.
to $4,000 or more, keeping that sum for future
use in purchasing IS pixies, bayonets," &C., would It
not have been illegal. though no law declared it suchs
Though the cases cited are not precisely alike, the
principle is the same in each. and the transaction Is
'impolitic. if not illegal. Verbans sap.