The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1876-07-29
Report of a Committee of the Chamber of
Commerce.
HONOLULU, July 21st, 1876.
To The Hon. s. ~. Castle,

Honolulu. July 21st. 1876.
To The Hon. s. Nc Castle,
President Of the Chamber Of Commerce.
SIR-The Committee appointed by the Chamber Of
Commerce to take into consideration the plan pre-
sented by the Minister of Finance to the Legislature
for supplying the deficiency in the revenue of the
Kingdom anticipated upon giving effect to the con-
vention of reciprocity with the United States of
America, bega to report as follows:
The proposal of the Minister anticipates a def
cheney of $50, 900 per annum from the operation Of
the treaty, but in order to cover other contingencies,
provides for a deficiency of S157, 676.
From such examination as the m is able
to make of the Customs Statistics for 1S74-75, we
find that the entire dutiable importations from all
parts of the world, of the classes of goods to be i'm
ported free under the said convention, including an
estimate of the same classes of goods transferred
from the Bonded Stores, amounted, in 1874, to
$63S, 426; in 1876, to $791 ,030; total, 81, 423, 456;
giving an average for the two years Of STILES.
But inssmuch as the remission of duties is only in
tended to apply to goods from the United States, we
do not believe that the actual deficiency on these
goods will greatly exceed $4,000 per annum. 1t
therefore appears to the Committee that the proposal
of the Minister provides for a deficiency nearly four
times az great as can be caused by the operation Of
the treaty; and that the additional taxes proposed
are chiefly for the purpose of paying of national
bonds and purchasing a new inter-island steamer.
This we understand to be in accordance with the
statement of the Minister of Finance to the Legisla-
ture. The Committee is, however, of opinion that
the measure of the government is unnecessarily COM
plicated by combining the deficiency anticipated from
the convention, with the outlay required for the
other objects named; for whilst any ascertained def
cheney in a years revenue should manifestly be made
up by taxation in the same period, it is not so clear
to the Committee that the payment Of bonds and the
purchase of a steamer should also be provided within
the limits of a single year.
1t is then our opinion that from the deficiency
arising from the operation of the treaty, no greater
loss can be anticipated than $4,000 per annum,
and further, We are convinced that the elasticity of
trade, and the increased value of taxable property
arising therefrom, may safely and properly be looked
to as a natural means of making up the loss, even
should it approach the sum named by the Minister.
Great uncertainty necessarily attaches to the effect
of the anticipated change, and the N is Of
opinion that until experience shall have pointed out
the actual or chief bene6ciaries of the change, it
would be wise and polite to leave untouched both
the machinery and degree of taxation now in force.
The foregoing presents the unanimous opinion OF
the Committee upon the general subject, but We beg
to add the following report on the plan before the
country -assuming that the amount to be raised is
not $4,000 nor 100000, but 1857 900.
The inequalities Of the present property tax have