The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1886-08-27

verbatim copy OF the law IN force III the
United States and England.
( UNAUTHORIZED BORROWING.
Nh Dole, on suspension of the rules,
presented the following resolution:
WHEREAS, the late Ministry, OF which His
/ Excellency Walter NJ Gibson. the Minister
/ Of the Interior, was Premier, authorized
/ the borrowing Of large amounts OF money,
/ to-wit: $50, 1856 81, during the late biennial
/ period, BY the Minister of Finance on ac-
/ count of the Hawaiian Government, and
/ the payment Of interest thereon at the
rate Of nine per cent per annum, without
the authority Of law; be IL
RESOLVED, That such borrowing Is incOn-
sistent with the due administration OF the
Government under the laws, and is inju-
dicious to the public interests, andi is de
serving of the censure OF this Assembly.
Mr.. Brown moved that the resolution be
adopted.
Mr.. Dole, in support of the resolution,
said it was a matter of bad bookkeeping
with the last Administration and also with
the present one, and could not be over
looked The House was to consider on
Friday loan bill, which fixed the rate OF
of authorizing a loan at six per cent when
the Government went outside the law and
borrowed money at nine per cent. The
power of borrowing money was with the
Legislature alone. Not even the Privy
Council could give such authority. No one
would dispute that. In every constitution
al Government it was the same, the Legis-
lature having the exclusive power of Dor
rowing money. If it was right to give the
Ministers that discretion, let the House
put itself on record as saying so, and not
make fools of themselves by considering
loan Acts If the Government had the
right to borrow $50 900 it also had the right
to borrow 10000 900 If they passed the
resolution the House would say they did
not approve of unauthorized borrowing by
the Government 1t was a glaring breach
of public trust.
His Excellency Mr.. Gibson said there
was rule of this House with regard to
questions being put to Ministers. This
resolution was something of the same
character, but it was forced on the House
so as to secure immediate action. Although
it was ii matter that might require some
preparation, yet he would not complain OF
that. He could say enough now to satisfy
himself, and he hoped also the House.
The late Government in this matter had
been following precedent i'll what seemed
to be purely a public requirement.
former Ministry, on an occasion of eXigenCy,
or danger of public distress, had not Dor
rowed, but loaned the sum of $3.50, 900 out of
the Treasury to bank at per cent, who
reisSued it to another party at II per cent.
1t was on record that former Minister of
Finance, Mr.. Gregg, had in a public
emergency effected a temporary loan.
This had been done over and over again.
There would be no question as to Mr..
DOle's position, that the power of borrow
ing money was not vested in the Ministers
alone. Whether it was according to law
or not, it was necessary i'll some cases for
the Government to secure temporary
loans. During a temporary deficiency in
the Treasury, to carry on immigration.
etc, Messrs. w. e. Irwin u Co., the Gov
ernment's financial agents, had advanced
money to meet the requirements. While
the rate for permanent loans was fixed at
five or six per cent, these amounts were
neither important nor permanent loans.
The rate of interest for an important loan
was nine per cent. He could show from
time to time where there had been a tenn
porary shortage, and a temporary
accommodation. The Government had
made temporary loans from time
to time according to its needs, and had
repaid them, sometimes with cash and
sometimes by the transfer of lands.
Speaking for the Ministry, the Minister of
Finance had not usurped any authority.
The business of the Government in the
matters of immigration and public build
ings may have been a little Overdone. There
had been a shortage, but it had been met at
a fixed rate of interest. Whatever irregu-
larity had existed there had been ample
precedent. There was no occasion for any
special censure either of this Ministry or
his late colleagues.
Hon. Mr.. Bishop said there was an old
saying that two wrongs did not make one
right. He was rather surprised that His
ExcelIency should establish precedent in
a matter of a different nature, which he
had taken great pains to condemn. The
action referred to was not of public inter
est. His Excellency had often made use of
that transaction in political discussion, but
only to hold it up to condemnation. At
one time there was great financial strin-
gency, and the Government had-what he
would like to see nova large surplus in
the Treasury. But it did not seem likely
while His EXcellency was connected with
the Government. Such a stringency had
not occurred before and had not happened
since. Good care was taken to obtain
superintendent security, and most of the
money was returned to the Treasury
long time before it was due
Mr.. Kaulukou asked if the assistance
rendered by the Government was legal.
Hon. Mr.. Bishop-NO. it was not.
Mr.. Kaulukou-Then how does the Hon.
Noble account for his action in asserting to
anything that was not law.
Hon. Mr.. Bishop-Because it was mat
ter of great public exigency.
His Excellency Mr.. Gibson said it was
hardly fair to accuse him of having cen
sured that transaction. He approved of
the action. Circumstances required it, and
it was a necessity at the time.
Hon. Mr.. Bishop said that amount was
I,apa3 bafora tho taxas paDa II, u-JiIo -,