The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1891-12-19

rdllTOdu ITdChS anu udTDOT piers anu
breakwaters, and that the work of
construction has made some progress.
[ deem it to be matter of the highest
concern to the United States that this
canal, connecting the waters of the
Atlantic and Pacific Oceans, and
giving US short water communica-
ton between our ports upon those
two great seas, should be speedily
constructed, and at the smallest prac-
ticable limit of cost. The gain in
freights to the people and the direct
saving to the Government Of the
United States in the use of naval
vessels would pay the cost of this
work within short series of years.
The report of the Secretary of the
Navy shows the saving in our
naval expenditure which would re-
suit. The Senator from Alabama
(NIr. Morgan), in his argument on
this subject before the Senate at the
last session, did not over-estimate the
importance of this work when he said
that "the canal is the most import
ant subject now connected with the
commercial growth and progress of
the United States" IT this work is
to be promoted by the usual financial
methods, and without the aid of this
Government, the expenditure in its
Understanding securities and stocks
will probably be twice the actual cost.
This will necessitate higher tolls and
constitute a heavy and altogether
needless burden upon our commerce
and that of the world. Every dollar
of the bonds and the stock of the COM
pany should represent dollareXpend-
ed in the legitimate and economical
prosecution of the work. This is only
possible by giving to the bonds the
guarantee of the United States Govern
ment. Such guarantee would secure
the ready sale at par of a per cent.
bond, from time to time, as the money
was needed. / do not doubt that,
built upon business methods, the
canal would, when fully inaugurated,
earn it's fixed charges and operating
expenses. But if the bonds are to be
marketed at heavy discount, and
every bond sold is to be accompanied
by a gift of stock, as has come to be
expected by investors in such enter
prises, the traffic will be seriously
burdened to pay interest and divi-
dends.
I am quite willing to recommend
Government promotion in the prose-
cution oi the work if other means
offered for securing it are inadequate.
It's completion is of such transcend
ant interest that the Government
should, in my opinion, secure it by
direct appropriations from its treas
ury. A guaranty of the bonds of the
canal company to an amount neces-
sary to the completing of the canal
could, [ think, be so given as not to
involve any serious risk of loss. The
things to be carefully guarded are the
completion of the work within the
limits of the guaranty, the subroga-
ton of the United States to the rights
of the first mortgage bondholders for
any amounts it may have to pay,
and, in the meantime, a control of
the stock of the company as a security
against mismanagement and loss. /
most sincerely hope that neither
party nor sectional lines will be drawn
upon this great American project, so
full of interest to the people of all
States, and so influential in it's effects
on the prestige and spirit of our COM
mon country.
Reviewing the work of the Navy
Department, he says that twenty
four war ships of all classes are now
under construction in the navy yards
and private shops, but while the
work upon them is going forward
satisfactorily the completion of the
more important vessels will yet re-
quire years toll. There should be
no hesitation in promptly completing
navy of the best modern type, large
enough to enable this country to dis
play its flag in all the seas for the
protection of its citizens and of it's ex-
tending commerce.
He devotes considerable space to
the Indian question in all it's phases
and asserts: "It seems to me to be
inevitable that there shall be before
long some organic changes in the re-
lation of these people with the United
States.n
On the Indian question he gives
the information that "since March 4,
1889, about 23,OO0,000 of acres have
been separated from the Indian re-
servation and added to the public do
main for the use of those who desire
to secure free homes"
The work of the Pension Bureau is
characterized as having been per-
formed with great diligence. The
total number of pensioners upon the
roll on the 30th day of June, 1890,
was 675, 100. The appropriation for
the payment of pensions for the fiscal
year 1990-91 was $137, ,793 80, and
the amount expended, $119,530,6 $40 20,
leaving an unexpended surplus of
SO, 155, IA "a. The estimate for pen
sion expenditures for the fiscal year
ending June 80, 1893, is $144, $4,000,
which, by careful examination of
the subject, the Commissioner is of
the opinion will be sufficient.
Referring to the debts of the subsi-
died railroads he recommended the
immediate adoption of some policy
with a view to their ultimate collec-
ton.
Arid lands and irrigation are dealt
with in brief form. On the latter
subject he recommends legislation by
Congress or State legislatures regu-
laling the distribution of the water
supply, and says the United States
should part with it's ownership of the
water sources for reservoirs only upon
conditions that will insure to the set
tiers their proper water supply upon
equal and reasonable terms.
He advises against the admission of
Utah as State until it is certain
that Mormon influence has ceased to
H.