The Hawaiian gazette., 1874-07-08

1t has been said that governments, being i'm
mortal, may, unlike individuals, safely borrow
money beyond their power of repayment so Ions
as they can promptly pay the accruing interest
which conclusion would have some FEASIBILITY i
the premises were correct. But government.
are not immortal any more than men. History
is the narrative of their rise and fall and abound:
in instances both of their gradual and sudden ex,
tinction. This possibility however, from purely
business standpoint affects rather lenders than
borrowers, the great temptation of governments
being to cucumber themselves with debt without
anxiety, because the responsibility of pay day
may be left to succeeding generations.
There is no doubt but that temporary loan
may be as useful to governments as to men. But
for either to borrow so largely and at such rates
that repayment is practically impossible, is anoth-
er thing. So is also debt so large that it can
only be cancelled by transfer of its securities.
The bill read the other day in the Legislature,
to authorize a national loan of a million dollars,
! provides for debt of one of the last two kinds,
either permanent debt or one only to be paid
| by some cession of national interests, which
would be dangerous to Hawaiian independence
There are some who approve of large loan, but
object to the character of the BILL but the simple
attempt to tasten upon this diminishing nation
debt, huge TO them, to be handed down to their still
fewer descendants, is enough to inspire the hearth
est opposition from those thoughtful of the common
interests. Such plan is utterly indefensibe, ex.
cept as last desperate measure to save nations
life, as in case of war The originators of the BILL
whoever they are, appear to belong TO the Jay
Cooke stamp Of political economists who believe
that q national debt is a national blessing and that
the United States debt is three thousand millions
added to its available capital Doubtless the great
bankrupt's own downfall was caused by a private
application of this principle OF course if there is
anything in such theory we are to be congratula-
ted in owing S35O,0OO now, and in the immediate
prospect of owing ST. 35oOOO at six per cent and up
wards
The objections to a large debt are too positive
and important to be overlooked. The first direct
evil result is increased taxation which is felt most
severely by the masses and which tends to oppress
and impoyerish them not only directly but also in-
directly through the increased cost of living Then
permanent national debt almost inevitably, in its
negotiation and management, promotes pernicious
systems of currency, founded on credit instead of
values the effect of which is to impose more bur
dens upon the productive classes and seriously to
disturb trade. In this case, such tendency shows
its evil face through the complicated convolutions
of the bill. The provision authorizing the Minister
of Finance to issue scrip for the payment of saa-
ries or other dues from the Hawaiian Government"
is not robbed of its mischief by the succeeding di-
plomatic clause that mo person shall be compelled
to take such notes in payment, &C. if he should be
unwilling TO do so;" nor is it improbable that a
legislature capable of enacting such law, could
without difficulty bring themselves to declare such
scrip to be legal tender whenever obstinate officials
and creditors should make it necessary.
The great moral objection to debt of this charac-
fer is that the generation mourning such encum
banee are not held under any obligation TO pay it.
but posterty is saddled with burdens for which they
are not responsible and by which they may not have
been benefited. And this is unquestionaby wrong |
except under the most vital necessity. II does not
appear that such necessity exists There is no call
for vast national improvements at such q sacrifice
There is no demand upon the government from the /
agricultural interests for it TO resolve itself into
banking institution, and If there was, it would be 1
no reason for such dangerous prostitution of the /
high ends OF government, which simply to pro- i
tect the existence of the body polite and to
to the individuals who compose 1t the safe enjoy |
ment OF their natural rights and privileges, and /
nothing more.
As to the particular character of the bill before
the House, even If it were desirable TO borrow the
money, IL does not seems il any law maker In his
sense could be willing to do by means of such
instrument Its loose, confusing and general proYi
sons are exceedingly inappropriate to measure Of
such importance where the powers OF all who shall
be authorized thereby, should be specified and limi
ted in clear and positive terms
The enterprise is calculated to produce alarm and
suspicion al home and want OF confidence abroad,
and deserves to be denounced without measure by
all who care for the government and the people.
S. B. DOLE