The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1872-05-25
THE PACIFIC
Commercial A06ertiser.
SATURDAY. MAY p.
The Finance Committee on the
Finances.


The Report Of the Assembly Committee OF.
Finance, on the Budget, was laid before the House
on Wednesday, and while, as could be expected,
it is an eminently conservative document, it car
ries that virtue 20 the extent Of a vice. IL is
moreover open TO criticism, in that it Is rather
inartistically worded, and susceptible in some re-
spects 10 the charge Of obscurity. That our
readers may judge for themselves of It's merits,
we give the document entire, introducing occa-
sionally our own remarks as they suggest them
selves.
HoSoLUIU. May I'D, 1872.
To His h y. NdtGOlehua, President az The LegisLa-
tire Assembly:
ferred the Biennial Report Of the Minister Of Finance.
beg leave to report: That they have been carefully
through sad Report, that they hive examined the
books OF the Finance Department sufficiently to sat
isfy themselves that the receipts, expenditures and
balance are carefully stated, and that the transfers
shown therein were made in accordance with Section
. Of the Appropriation Bill, approved on the I'D day
Of July, 1870.
That Of the Funded Debt, $3.50, sOOl Sill, 5OOis
= part OF that which was reported in 1870 S24 300
has been contracted since that time, under Act 'sTo
Authorize a Loan" approved June 23d, 1858, and
applied TO general purposes, and $4,000 under
"a Act to Encourage Ocean Steam Navigation, - passed
the 22d day of June, 1868, and that Of the Sill 500
which may properly be called the old debt-the
larger part (S9O.OOO) will become due during the
year 1872.
That the estimated expenditures for the current
biennial period Isl, l3l. 1867 exceed the estimated
receipts for the same time 1882. 7O0) by 27S.636,
including the above mentioned $4,000 Of old debt
TO be PAID on. Ii this whole amount should be eG-
pended, and to il we add the remainder of the present
funded debt-S70, 60O-and IS. 900 already author
lied and pledged for subsidy to Ocean Steamers, we
shall have at the close Of said period-if the estimate
Of receipts prove to be correct-a debt amounting to
1884 436.
This statement, ominOus Of political bank
ruptcy for the nation as it is, is coldly and calmly
made, as though it was one of the most natural
and least surprising things in the world. But a
few years since, the entire annual revenue of the
Kingdom did not amount to the sum of our ma
tional debt, as it is proposed to be two years
hence. under the suicidal policy of Ministers.
The credit Of the Government has for many years
past been fair, and latterly has been so good that
money has been borrowed on long time bonds, on very
favorable terms and so long as the appropriations
are reasonable in amount, and for proper purposes,
and the revenue IS maintained at a figure sufficient to
pay such appropriations, the interest of the debt, and
create a reserve towards the payment of the debt
within a reasonable time and so long as nothing is
done by legislation or otherwise TO damage the prin-
cipal industrial interests of the country, the credit
will be maintained. But it is quite easy to injure it
by reckless appropriations, extravagant expenditures,
reduction Of taxes and other ill-advised legislation.
oHA improvements iI
public use, such as erection Of Government Offices,
Palace, Water Works, and the like, can hardly be
accomplished without increasing the public debt.
The ifs of the foregoing section are highly i'm
portant. Nothing is said about the Hotel in this
portion of the Commuters report, though it
might very properly have been mentioned. Query,
whether it would not fairly have come in under
the expressions, reckless appropriations, > SER
trGrGgaHt expenditures" etc? Query, also,
whether the Z" palace +" could not wait two years
longer? Perhaps, however, the Hotel is meant
to be included in erection of Government
Offices" The Water Works" investment
ought to be regarded as of more importance than
the Committee seem to have considered it. as be-
ing a necessary and surely profitable enterprise,
both in its direct and indirect results.
The Committee think it probable that a consider
able amount Of the estimated expenditures, if author
lied by the Assembly, t1iH not be used, and certainly
should not be, if there should be any unexpected
falling of in the revenue, or any doubt about pro-
curing money on reasonably easy terms and as the
expenditures are to be spread over a period of two
years, the Government will, of course ri exercise a
sound discretion in stopping such OUTLAWS as can be
omitted or postponed with least inconvenience or harm
tothe public.
7 Here we have a hint of a possible depraved
desire in the Minister of Finance to procure APP
preparations that he does not intend to carry
out, as enacted by the Assembly, Anything of
this kind ought to be promptly prevented. OPP
portunities of the sort in question ought not to
be allowed to him of the Finance; he has hardly
shown himself worthy of such confidence. The
tendency is already too much towards putting
into the hands of the Ministry the control of the
Treasury. We will at all events enter our pro-
test, if we can do no more. If there is a doubt
about the money being used as appropriated, or
that there will not be sufficient to meet the APP
preparations, better by far omit them for such
objects. 1t is better that the Legislature should
use its own discretion about appropriations, and
not leave to the Government the somewhat diff
cult achievement for 1t, of originating 'sound
discretion" in stopping OUTLAWS. (There are
those who are skeptical on this point of Minis
tiers using sound discretion. and do not believe it
can be done.)
If the same unwise practice that has prevailed in
former years-of apprOpriating for ordinary pur-
poses largely beyond the estimated or probable re-
ceipts is to be repeated-GS the Resolutions already
introduced seem to indicdte-it will be unavoidable
that the Executive should use their judgment in Sc
lecting the items to be omitted. and that there should
be disappointment in some districts where the peo-
pie will be led to expect improvements because APP
preparations have been made.
Perhaps nothing has yet been introduced con-.
tanning more insane, extreme, and improper pro-
posals for the outlay of public money than the
Minister OF Finances proposed appropriations
for the next two years.
The Committee know Of no reason to doubt that
the gross revenue will equal the estimate made by
the Minister of Finance.
There is no reason TO doubt. that the revenue
for the next two years will show a considerable
falling off from the last two.
Under the head of Hotel the purchase of land
and erection thereon of the buildings known as the
Hawaiian Hotel in Honolulu is referred to, and the
action of the Government relating thereto explained
in said Report The Committee have seen the ac-
Counts, and found the cost of the property and the
mode OF payment for the same to be as stated in the
report. The Bonds issued to those who advanced
money towards the cost OF the Hotel property are.
as stated by the Minister Of Finance, unauthorized