The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1886-08-26

tnaU UlSCTellOn lcJ lut uOuSc DuJ
itself on record as saying so, and
not make fools of themselves by
considering loan acts. IL the Gov
ernment had the right to borrow
$50, 900, it also could borrow $l0,-
600, 900. BY passing this resolu-
tion the Assembly would inform the
nation of its disapproval of un-
authorized borrowing by the Gov
ernment.
Minister Gibson said there was
rule of this Assembly with regard to
questions of Ministers. This was
something of the same character,
but was forced on the Assembly so
as to secure immediate action. AL.
though 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 Government in this
action was following precedent. \
former Government, on an occasion
of exigency, or danger of public
distress, had, not borrowed, but
| loaned the sum of S250,00 out of
the Treasury. He thought it was
on record that Mr.. Gregg,
former Finance Minister, had in an
emergency effected loan. Whether
it was according to law or not, it
was necessary in some cases for the
Government to secure temporary
loans. While the rate for perma-
nent loans was fixed mt five or six
percent. these amounts were neither
important nor permanent loans.
They were advances made 10y the
Government financial agents,
Messrs. w. G.. Irwin 4 Co., dur
ing temporary deficiency in the
Treasury--a mere adjustment of
accounts. He concluded by saying
there was no occasion for special
censure. either of this Ministry or
his late colleagues.
Noble Bishop said there was an
old saying that two wrongs did not
make right. 1t was extraordinary
that the Minister should select Il
transaction that he had often con-
demned. as Il precedent for his own
Government. The Minister had
often made use of that transaction
in political discussion, but only to
, hold it up to condemnation. The
transaction in question was entirely
, different from the course of the
present Government, disapproved
of in the resolution. At that time
there was n great financial strin-
, gency. and the Government had
what he should like to see nova
, large surplus in the Treasury. The
loaning of the money on that occa-
, sion would have been u public bene-
p fit far above the value of the
, amount even if it had been lost.
, Care was taken to obtain super
abundant security, and the money
was repaid to the Treasury long
before it was due.
Rep. Kaulukou asked if the trans
action was legal.
Noble Bishop-No, it was not.
Rep. Kaulukou-Then why did
YOU accept the loan.
Noble Bishop-Because it was a
, case of great public exigency.
I Minister Gibson interrupted to
say that it was not right to accuse
: him of having censured that tran
saction. AS member of the Fl.
o nance Committee he had recorded
y his approval of it.
/ Noble Bishop said that amount
y was loaned before the taxes came
in; while, in the case of this Min
: istry's borrowing, the process wen
Il on long after the taxes were col
4 lected. The amount borrowed, too
G was very large, at one time reach
= ing 5000, 900.
'. Minister Gibson said Mr.. Gregg
IL had borrowed 100000.
J. Rep. Thurston regarded this a
n one of the most serious questions
e that had arisen during the session
,r One thing that must be settled wa
IF that the Legislature should have th
" absolute control of both the borrow
ing and the expenditure of money
The unauthorized borrowing G
money had gone on for years unde
this administration, until they ha
heard the Premier say that the Go,
e. ernment had appointed tinanci,
he agents, from whom it was borrow
y. ing right along. The defense (
the Minister of Interior was simpl
n that previous Ministry had dor
20 wrong. This Legislature had nothir
TO- to do with what was done under IL
administrations of Mr.. Carter al
Mr.. Gregg. a series of preceden
ng extending over twenty years won
not excuse this Ministry in borro,
ing money contrary TO the EXPIRE
,0i terms of the laws of several session
W. past. This resolution was not d
as signed as personal censure of NJ
ny Gibson, but as declaration tina
VIZ whatever wrong precedent may e
iai ist, the borrowing of money wtho
ICE authority of the Legislature sh,
W. cease from this day. Even if t
er- present leader of the Governme
er- admitted to-day that loans shou
or not be negotiated without the CO
a 4 n