The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1883-08-04
THE PACIFIC
Financial Policy.


We reserve further CONNER on the de-
tails Of the Finance Ministers accounts OF
the revenue and expenditure Of the country
until the latest statement of them y before
the public. But we have still u few words
10 say OH what the opposition press has
chosen to call the financial system Of the
Government, " which we on the other hand
take leave to cali the financial policy Of the
country. There ha-. .r,.u time to time
been much talk about the impolicy Of in
curing a national debt in my form or of
any amount. \ great deal more has been
said privately on this subject than even
opposition newspaper editors have ventured
% put into print. Men who do not hesitate
for a moment 10 incur grave pecuniary liza
bilitic-, far in excess Of their own actual
means, for business purposes will yet shake
their heads at the idea Of the country in
vOiving itself in debt however good the
objects in view, however reproductive
the nature Of the work To be undertaken,
hOweve pressing the need Of the country Tor
works a. -xce-s Of hose which can be pro-
vided for out Of the ordinary revenue. Now
the experience Of all new countries settled
by people possessed Of what we call West
ern Civilization" il entirely opposed to the
ideas Of these people. They are fond ofquot-
ing Egypt a. - warning example and tell Us
that ali the recent troubles of that country
have resulted from its National Debt, and
from the interference Of foreigners in the
guise OF creditors. II would take too long
To show that this hypothesis is an unfOund-
ell one and that the trOubles Of Egypt
are now, a. they have been for centuries,
the result Of mi-gOyeTnment by the descend
ants Ofalien cOnquerOTs. Neither j. it neces-
saTy, because when put TO the test the sol
cmn wiscacres who tell us that the fate of
Egypt must be ours, if We run the country
into debt, can find no point Of analogy be-
tween the condition and circumstances OF
Egypt and those Of this Kingdom. There
is none. The closest analogy that can be
drawn between this country and any others
j. with those colonies of Great Britain
which possess indedependent constitutional
governments and which are by the aid of
the capital they are continually importing
from abroad developing with rapidity the
natural resources Of the countries in which
they are located. The people who live in
those colonies understand well the wisdom
Of not delaying the progress of their cOun-
tries by the fear Of running into debt. Thc
Canadians are building u railway across the
continent from the Atlantic To the Pacific
and nave spent huge sums on other means
OF communication and on their harbOrs.
Australians and New ZeaIanders follow III
the same line. Even the little colony Of
Mauritius has yeutured to borrow the mon
ey needed for public works. The results in all
the countries have amplyjustiiied the policy
BY which they have been guided. This
country Is precisely in the position of
these Iauds newly settled by British colon
lists. New resources are being developed by
colonists from abroad possessing the same
civilization and the same arts and industry
as the men who are now developing the
long neglected wealth Of Canada Australia
and New Zealand. But, say the wiseacres,
these cOlouists rave the prestige of the
British name To- back their bonds and if
they did not pay them England would.
There never was n greater fIllacy. Colon
ial bonds have had to be- sold in England
On their own merits from the earliest days
Of colonial borrowing. They are run after
a. securities now because the m%Oneyed
classes know by experience that the bor-
rowing colonies make vast profits both di-
rect aud indirect by the Use they make of
borrowed millions. Time was when such
bonds, bearing interest - high a. eight
per cent We're negotiated with difficulty
andsOId u long way below par. The relation
Ofthe borrowers To- the Mother Country was
just the same then as il Is now and
the Lenders had simply to look to
such security as tile borrowers could give
them. This country only desires To borrow
for purposes which are directly or Indirect
~ reproductive and for just such purposes
a. these other countries newly settled by
white men nave been borrowing. Its eX-
p~erience will be the same as theirs. Its
will be 80 greatly expedited by the
judicioLs expenditure Of tl,e money it may
borrow that taxation instead OF being in
creased will be lightened, and the whole
community Will he rendered more pros
porous.