The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1886-02-02

upon security which that firm con-
sidered TO be too Speculative" for further
advances from its private funds, and |
which the Minister of Finance, Mr.. !
Kaai, in his biennial report to the Leg
islature, admits to have been insufficient. |
The Minister of Finance, Mr.. Kaai, re- |
ported that owing to the general depres-
sion and stagnation that prevailed in the
mercantile and agricultural enterprises
of the Kingdom, and the widespread
financial distress that would ensue upon
even the partial embarrassment of these
enterprises, those controlling the finances
of the Kingdom felt it to be their
duty to alleviate as far as possible " the
embarrassments of the community"
With this object in view, and in re-
Spouse to urgent applications" the Min
lister of Finance continues, temporary
loans to a limited extent were made to
individuals who were largely engaged in
developing the resources of the country.
On maturity of these loans, however,
continued stringency OF the money mar
ket made the collection difficult and
tedious. 1t was then resolved to abandon
the system, and Messrs. Bishop q Co.
having made application for loan of
| $780, 900, it was resolved at Cabinet
Council to lend that amount, and here
with submit copy Of Messrs. Bishop &
Co.'s letter, and the Cabinet resolution
relating to the natter
We have thus an admission from the
| Finance Minister that the Government
had been doing private money lending
! business on its own account, but that it
was in danger OF running behind owing
! to the difficulty and tediousncss of col
lecting the loans at maturity. 1t was
! therefore resolved to transfer the Treas
ury balance, or the bulk of it, to a firm
legitimately engaged in the money lend
ing business, dividing the profit with
it, the Government getting per cent
and Bishop & Co. the balance between
] and II per cent" In this way the
necessities of the community for ready
| money to pay their taxes and meet other
engagements were met, for be it under
stood that Bishop & Co. predicated
"great financial embarrassment and
damage unless arrangements can be
made under which the money flor the
payment of taxesl to a considerable
amount, can be loaned again from the
Treasury for a length of time sufficient
to enable the planters-whose obligations
and necessities are greater than those of
any other classic make large reduc
tions upon their present debts out of the
proceeds of their growing crops, or by
sales of plantation property, or borrowing
money i'll foreign countries; either OF
which methods of relief will take long
time to accomplish"
Bishop & Co. go on to explain why
large sum for long term would be
needed 81 1t would be useless to expect
the planters to repay within few months
very considerable part of their present
obligations and meet current expenses,
to say nothing about the large sums now
due for taxes" And the Finance Minis
ter was equally explicit regarding the
necessity for advancing money from the
! Treasury to meet the tax levy of 1879.
" Widespread financial distress" would
be caused by strict enforcement OF
the laws for the collection of taxes,
which would have had prejudicial in
fiuence on our credit abroad, and caused
great number of the laboring popula-
ton to be thrown out of employment"
This was the condition of the country
during the management of affairs by tn
Popes of Opposition finance inside and
outside the Cabinet, and very deplora-
BILE condition it WAS. What would be
thought of the Gibson Administration
if it loaned money from the Treasury to
its friends to pay taxes; and without
authority specialized on the Treasury
balances, as was admittedly done l.
1879-SO by the model Administration O
that day? 1t certainly would not be let
off with the mild censure of the Finance
Committee regarding call the circum-
stances attending this extraordinary dis
posal of public treasure" And it should
not be.
"While we are willing to do all we can
with our means and credit in aid OF
| legitimate business" Bishop & Co. urge
in their application for this loan OF
| $3.50, 900, eve are not willing to increase
our obligations to promote speculation or
too rapid expansion" And the Finance
Committee politely comment upon this
blunt declaration regarding the insult
ficiency of the security and riskiness OF
the transactions Thus: "Now, ques-
ton may here arise in thoughtful minds,
whether the Ministry of Constitutional
Government should, without legal SAFE
ton, aid with public treasure, specult-
ton and expansion, which cautious
public enterprise declines to accommo-
date with its own means" very much
blunter question might arise, but ii is
unnecessary to put it in this case.
In another place the Finance Com
! Ynittao hit another blot Referring to