The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1868-05-02

connected with IL, occasions general and sudden
prosperity, new expenses are inevitable IN all de-
lartInents Of government, and considerable addi-
iiOnal revenue viii be Immediately required
Even If the course of trade does not change ut
once IL will constantly seek. in increasing proper
iions, the markets Of that nation which eOnfers
the greatest commercial advantages. Meanwhile,
tire inflated prices caused by the rebellion IN the
United States are giving way, and the natural
laws Of trade are resuming their sway and the
influence Uf the treaty will slowly but steadily re-
duce the gross annual income from the customs
Upon the whole, the Government advise that this
matter should be - adjusted that revision will
not he required for a series of years, and therefore
that the amount of S3O,OOO NJ should
be raised each year, Of the Reciprocity Treaty
becomes operative) in addition to that already
provided for.
But how shall this be accomplished ? -Four modes
have been suggested.
/. An increase Of the direct tax ON real and per-
sonal property.
.. An increase of duties upon imported articles
not included in the Reciprocity Treaty.
3. \ system of excise and stamp duties, and In
creased fees for licenses.
4. \ tax upon incomes, gains and profits.
LIST. In regard 10 the increase of direct tax upon
real and personal property, it will be admitted.
that although such taxation II, Theoretically, very
fair and Just, vet there are practical difficulties
about assessing and collecting such taxes, and
when the per centage reaches a high rate, the
temptation to fraud Increases. and there is much
difficulty in detecting il.
ID. The system Of customs duties cannot we'll be
changed without violating positive treaty stipula-
tons, OF the obligations OF good faith 10 foreign
nations. Such complications should be carefully
avoided, and it is unwise TO attempt any further
increase of duties upon imports until all other
sources of revenue have been exhausted.
Sd. y system of excise duties would require 4
new organization Of the internal revenue depart
ment, and involves many difficulties. Those arti-
clcs which are Tot TO be admitted into the United
States free of duty, would hardly bear such n tax,
and it would be almost u breach of faith with the
United States, and certainly contrary TO the spirit
of the treaty, (Which was designed to reduce the
cost OF our products 10 their consumers) to impose
duties at this side upon articles, which their gov
ernpient relieves from duty ut the other. In
regard TO stamps, il Is thought by many, that the
amount obtainable from that source would hardly
repay the inconvenience which 1t would occasion
in business. Stamp acts can only be enforced by
declaring all instruments invalid which are not
stamped, and the population of these islands is
hardly trained to the precise habits of business
which will bear the enforcement of such severe
rules. The strict enforcement of the present
stamp act is attended with great difficulty and
occasions complaint. But it seems To the govern
mcnt that en- increase of some license fees would
Dc most equitable, and that the present would be
n good time IL revise the whole license system.
Large Wholesale dealers, who are soon to derive
material advantage from the reduction of duties
upon imports, ought to contribute n little more.
To the expenses Of government, and wholesale
dealers, only in name, should DC relieved from in
ordinate burdens.
4th. Al Income Tax to be assessed upon the
annual incomes, gains and profits of each individ-
ual, with an absolute exemption of fixed sum in
every case, IL most equitable in It's nature. All
civilized nations are coming to recognize its fair
ness. Elaborate returns, TO which the citizens of
this Kingdom are not Yet accustomed, will become
necessary, and may prove irritating To those who
I.zira 20 avoid ruhffcity Of their affairs Rtrt
such difficulties must yield To the intrinsic justice
of the measure. The probable amount of reyenuc
To be obtained in this way is quite uncertain, but
it IL hopcd that i tax. OF two and One-hali per cen-
tum upon the excess of every income above
81 200 90 would make good a large part Of the
npprehendcd deficiency.
As n result of the whole matter, the Govern
mcnt recommend that the anticipated loss ofreve-
nue. be made up by increase of license fees To
wholesale dealers, pruportiOned according to actu-
al sales. and n tax of two and a half per centum
upon tire excess over 81 ,0G0 90 of the incomes,
gains and profits annually received by each indi-
yidual. y bill embOdying these views will be
submitted.
The increase of direct taxes upon real and PER-
sonal property already provided for, will require
increased vigilance and system in the assessment
Of taxes. The matter has received tine attention
of the government, and will be the subject of a
special bill.
yI.-THE CURRENCY.
The currency of this Kingdom is exclusively me
tallic, and the coinage Of the United States pre-
dominates. No other circulating medium Is re-
quircd. Some inconvenience is experienced from
the dispropOrtionate amount of silver in circula-
ton, and the delay and trouble of frequently
counting out large amounts. But the evil will
soon cure itself; and, meanwhile, the PRINCIPAL
banker of Honolulu has deposited a large amount
of silver coin in the Treasury under the provisions
of an existing law. For this amount, payable on
demand, without interest. receipts have been Civ
en-, Of various denominations, which being indoors
ed by the deposition, pass current as money, and
are very convenient in payment of large amounts
ut the Custom House and elsewhere. They repre-
sent bullion III the Government vaults, which can
be applied 10 no other use by either party. III
silver coin becomes scarce, this deposit can be
withdrawn on production of the receipts, and the
equilibrium will be restored.
For some time past, orders have been enforced
at the Treasury for the detention OF all mutilated
silver coins and the smaller coins of Spain and
Peru " hich are intrinsically worth less than their
current value. \ considerable amount has accu-
mulated., and authority will be asked from the
Legislature to send the whole to the San Francis
co Mint for recoinage, the loss being charged oil
az a current expense of Government. Meanwhile,
To secure the Treasury from imposition, prccau-
tions should be taken To prevent the importation
of deprecated silver from abroad, and an order
will probably he issued to reduce the value ut
which such coins will be received Mt the Treasury.
Thus, it is hoped, the currency will become thor
Oughly purgcd.
1t is not beneath the dignity of any government
TO protect the rights of is poorest subjects by the
issue Of small GUNS. Efforts continue tn he made
TO force the American dimes and half dimes into
general circulation, and in spite of some opposi-
ton. the success of the movement Is made certain.
In the opinion of many, the introduction of small
copper or mixed coins would be advantageous.
vm.-ExFENDITUREs IN TIE DEPARTMENT oF THE IN
TERROR.
MANY of the current expenditures of this King
dom are under the supervision of the Minister of
the Interior, and it is impossible to form any sat
isiactory opinion of the appropriation required