The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1882-04-08
The Proposed Loan.

We take from the auckland Weekly NeiOs
the following remarks which seem to us
full of counsel and warning to Hawaiian
Legislators and the Hawaiian people, in
connection with the proposition to raise
Il loan for State purposes. From them it
will be seen that between the intentions of
the Ministers who plan, and the Represen-
tatives who authorize a loan, and the actual
results secured by the expenditure Of the
money thus raised, there is too often, in
practice, a very wide difference. In raising
a State Loan we nave not only to consider
what are the ideas and intentions of those
who propose it, but also whose are the
hands into which the expenditure of IL is
likely to fall, and what will be the reigning
influences likely to control that eXpendi-
ture. On this point the experience of other
countries would lead us not to put too inn
plicit faith in a statute with whatever APP
parent sharpness it may define the objects
for which borrowed money may be eXpend-
ed. Those who make can unmake, and in
New Zealand it was not only individual
members of the Government, but also sue
c6ssive Legislatures, or the same Legisla-
tors in varying moods, that interfered to
spoil the plans of the great Minister TO
whose genius lin spite of all interference)
that country owes the Immense develop
ment Of the last ten years.
That a loan for this Kingdom will be
seriously discussed in the Legislature is ev-
ident, not only from what came out at the
elections, but from a published utterance of
he Minister of the Interior whose sound is
not to be mistaken. That the discussion
will end in the passage of a Loan Act is in
the highest degree probable. Let all who
have to take part in that discussion weigh
well the remarks of our New Zealand con-
temporary and note the lessons they con-
vey:
"Th loan policy of this colony as represented
by Sir julius Nogel, was associated with the con-
%struction OF railways and assisted immigration.
Theoretically it was sound, and it failed because
Its author failed to perceive the Inference be-
tween the aptitude to affirm n policy and the
power to give it effect. He forgot the influences
of all kinds which would be brou Int to bear will
regard to the construction of railways. and which
would cripple his project. If Sir Julius Yogel
could have possessed the sole direction Of his
scheme 1t might have proved a success, but Par
Lament had to do with it and Ministries not his
own or subject TO his guidance, and hence il
Dloke down. The credit of the country was i'm
perilled, the construction Of railways arrested
and the introduction of immigrants suspended.
Inc scheme thus hating, the railways not pro-
duclng a profit to meet the interest on the loans.
and immigrants not being introduced to supply
revenue by the consumption Of dutiable com
n~todities, the colony has to fill the void bv means
OF large additional taxation. In this way the
credit of the colony has been maintained.
out at the expense of railway extension and as
sisted immigration. The colony having recoy.
ered from It's financial embarassments the pres
eht government proposes to float another loan OF
considerable magnitude, and it is incumbent that
II should apply TO it the principles which Sin
julius Vogel represented.