The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1875-05-22
NATIONAL LOANS

there was 20 much discussion a year ag02 With
out IT the rcmote-t degree pretending 70 speak
BY authority, We can nevertheless cay that il i
understood 70 be the intention Of the Govern
ment 10 avail themselves Of the authority con-
ierred by the Act in question, and as soon az
arrangements can be perfected to conclude the
necessary negotiations for a portion at least Of
the designated amount. When we urged the
project Of a loan two years since, we had then
no doubts as % It's feasibility, and subsequent,
events have shown that we were not mistaken.
II, as now appears % be the fact, we could have
borrowed a million on the national credit at that
time, without difficulty, it follows that to-day.
with the vastly improved prospects before us
which are the natural results Of our new treaty
relations, our credit AZ borrowers will be propor-
tIOnably high, whenever We may choose to 20
abroad FOR a loan for legitimate purposes. The
reasons are sufficiently obvious why the credit Of
the Hawaiian Government should to-day be ranked
as second only to that Of the rich and powerful
governments Of the world-Or any petty loan
that we may need 10 make-and we need not
pause here to enlarge upon those reasons.
What are the Legitimate purposes for which
we may be justified in mourning a considerable
debt-eonsiderable in proportion to our prima
facie means Of repayment? We answer, all works
Of public improvement which will help to develop
the now almost practically latent resources of
the country.
First among these, and now pressingly evident
to all, is the project Of providing n new steamer
for inter-island trade. On this question we are
content to entertain the belief that HIS Maiesty's
advisers favor the views heretofore advanced in
this jOurnal-to the effect that, instead Of sending
money out Of the country to buy a steamer, she
should be built here, and that the work should
be commenced as soon as circumstances will
permit.
Next, in point Of emergency but first in I'M
portanee as relates to the development of the
country, Is the project Of utilizing our large
tracts Of waste land-large, in view Of our
diminutiye territorial extent-which, in order
that our exports shall be brought up to the ex-
tent Of our capacity Of production are to be
occupied and brought under cultivation. To
accomplish this, Government must undertake
extensive works Of irrigation. Travel about
these Islands will reveal, to the most casual
observer, many points where works Of this nature
could be prosecuted with immense advantage TO
our material progress. We have in previous
issues repeatedly taken occasion to designate
some Of these localities, the bringing of which
into n condition whereby cultivation may be
practicable, would, by the sale of the lands alone
thus brought into market, repay the treasury
more than double the cost of the necessary irri-
CATION works.
We have seen that the immediate annual deficit
in the revenue which it will be the province of
the uavF T..sgI.F,-. - r.
gestions from the Ministry will amount to not
far from SlOO, 900. Real estate will, perhaps,
bear a higher tax, but it will be rather difficult
to lay a new rate of taxation to meet the deficit,
on all real estate. The back-country native with
his little kalO-patch or wedge of land on which
he grows n few bananas, could not afford to be
taxed in the same ratio as the planter with his
broad acres. The loan system may here come in
advantageOusly, and properly. The Government
might issue Its bonds for a half a million dollars,
say at nine per cent, or-taking commissions
and other expenses into consideration-at a cost
Of ten per cent, i. E., $50, 900 interest per
annum. Set aside $780, 900 to meet the deficit,
and use the remaining 800 600 in wise improve
ments, such as-briDging the water on to lands
now unOccupied improving the harbors of Ka-
hului and Maalaea, and Hlo bay the building
Of a dry-dOck, and, tree-planting. These would
bring in a certain revenue. An issue of &c.
600. 900 in bonds-as the Government needed
money for legitimate purpOses-in the course Of
twenty years, would not be extrayagant, but on
the contrary, such a course would be wise and
beneficial, if the money so obtained were applied
to developing the resources Of the country.
Every country Of any Importance on the con-
tinent Of Europe, has now a large national debt,
contracted-nOt as we propose to contract ours,
for the peaceful purposes of agriculture and COM
merce, but-like that Of England, to meet the
extraordinary expenses Of war. Most of these
debts, like the English, are redeemable at par at
the option Of the Government, but no definite
time is fixed for such redemption. But no one
asks a stable Government to redeem its bonds
they constitute a permanent investment. The
policy of the British Government has been and
is, to allow their debt to continue for an indef-
mite period, having reduced it but little during a
half century. II now amounts to the magnificent
sum Of G79I, SgO,s7O. The debt is allowed to
continue from the belief that it gives frmness
and stability to the Government nearly the
whole property Of the country, as more or less
intimately connected with the debt, being deeply
interested in its support. It is a powerful dis
suasiOn from any future war it may be said to
have placed England under very heavy bonds to
keep the peace. \ history of England's national
debt would be interesting.
But a national debt so arranged on short terms
that the whole may always be paid of during
the lifetime Of the generation that contracted it,
avoids the serious objections which may be made
to the alleged RICH; Of any society or body polite
to bequeath it, own voluntarily incurred debts to
the generations which are to come after 1t, or to
impose any pecuniary obligations upon those who
arc not yet in existence. The system Of short
loans strengthens the public credit by materially
lesseuiug whatever risks there might be of future
Reputation or bankruptcy.