The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1878-05-04
THE PACIFIC
SATURDAY. MAY 4.
BIENNIAL REPORT OF THE MINISTER
OF FINANCE.

The Report of His Ezcellency the Ministel
of Finance to the Legislative Assembly is an
able document, and worthy Of careful study
by all who have an interest IN the prosperity
of the Kingdom. Besides important figure:
touching the financial status of the country, il
abounds in suggestions and recommendation
for the consideration of the Assembly which.
if treated wisely by that body, will undoubtedly
promote the general welfare. In our quotations
of figures we give round numbers
His Excellency's opening statement of re-
venue and expenditures is most favorable the
total revenue having been 81 ,241 900 and expendi-
lures, 81 ITO 900, leaving a balance in the
Treasury of nearly S131 900 against a similar
balance March 81, 1876, of S89, 900. The pub
lie debt is shown as follows On the 3Ist of
March, 1876, it amounted to $3.50 600, and at
the close of the fiscal period, 1878, the sum Is
given at S444 900, showing a decrease of the
debt for the two years Of $4,000. The large
sum of S87, 900 for interest accrues each
biennial period, which We should be happy to
see reduced as speedily as the means OF the
Treasury will allow. The great bulk of the
debt, that is, 1871 900, draws interest at the
rate of 9 per cent, per annnum, amounting in
the aggregate to over $66, 900. Nearly $50, 900
of the debt, with its ACQUIRING interest, will be
extinguished during the current period. If it
were feasible, we think K it would be the best
policy to borrow, at a low rate of interest,
sufficient money to pay off the present incum-
brance which is drawing so high a rate, averag-
ing on the whole debt over 9 per cent.
IT. C,sto,, JJnnSa rnturDG for 1877 chow
that the value of goods imported free under
the Reciprocity Treaty nearly equaled that of
goods paying duty, the amount received from
the latter source reaching the sum of over
1892 900. The increase of duties for 1877,
over the average of the three previous years
(Which was 81 ,000) is to be attributed to the
large importatiOns of the year in excess of the
annual average consumption, and to the in
creased duty under the Act of 1876. 1t does not
seem probable that such an equality of dutiable
and free goods will continue in the future, al
though the Minister thinks that the increased
activity in business, our increased means OF
buying, and an enlarged demand for foreign
merchandise point out the possibility of our duty
paying imports being increased from year to
year. This opinion may prove well-grounded
if treaty stipulations do not stand in the way.
However, he very justly says that possibilities
are not a proper basis upon which to rely
when providing for the income or expenses Of
the Government.
\ large item of revenue through the Custom
House is derived from direct taxes on mmerce.
The opinion generally prevails that taxes of this
kind should be as light as possible for the
facilities rendered by the Government for the
convenience of commercial transactions-in fact,
nearly nominal. OF course, wharves have to be
provided, warehouses built for the storage Of
merchandise landed in bond, or in transitu,
and other conveniences for the use Of shipping,
and it is only fair that they should pay a rea-
sonable fee for such facilities it is only when
charges are exorbitant that objection is made
by those awaiting themselves of the advantages
afforded.
The amount of revenue derived from Stamp
duties was nearly $47 ,000,-certainly a very
handsome item, and probably as little objec-
tionable to those upon whom the tax was levied
as any other moneys they may have paid into
the treasury.
The increased revenue from real estate and
personal property for 1877 over the previous
year amounts to over $50, 900 showing an
evident improvement in the matter of assessing
has been proverbially loose in the past.
The total amount of revenue from all sources,
excepting money borrowed and school tax, for
the period just closed has been 81 .07S 900; and
for the period ending March 81, 1876, it was
1877 900, showing a gain Of over 100000
in favor of the term expiring on the 3lst ult.
Although the revenue has increased, yet the
requirements of the country have also increased,
and many Improvements and public works are
delayed for want of means to accomplish them.
His Excellency very justly considers it unwise
to exceed our income for current expenses, and
says that money should be borrowed only for
such public works as promise through the
up of lands, or increasing the facilities
of trade. to be profitable.
The appropriation for subsidy to foreign steam
lines has been expended. The contract which
was entered into with the Pacific Mail S. S.
Company has been fulfilled honorably, and
satisfactorily to the Government. But it seems
that a permanent connection of this port with
the Australian route is still an unsettled uues-
ton. The Government has reason to think the
present line may be withdrawn, but arrange
ments are in progress to organize a line of semi
monthly steamers between Honolulu and San
The P. NJ. S. S. Company assert
that their steamers, both way and terminal, have
not been profitable, and that the trade alone of
these islands cannot support a line of steamers.
This question, We are inclined to think, is not
stated fairly. The cost of additional steaming
required by the deviation from the direct route
from San Francisco to Auckland-both ways
must we think, be much more than offset bv
the merchandise and passenger traffic between
port and San Francisco and if this be a
the lack of profit to the through line can
not be justly attributable to the ships calling
lere. We consider that the Company have
been very fairly, and, indeed, literally dealt